Thursday, October 31, 1996

PAL Strikers Defy DOLE Order

The Evening Paper
Thursday, October 31, 1996
Flights cancelled, delayed
By MANING SILVA

Members of the Philippine Airlines Employees' Association (PALEA) continue to defy the order of Labor Secretary Leonardo Quisumbing to return to work, causing delays in PAL's international operations and stranding thousands of passengers at the domestic airport, mostly those going home to their provinces for All Saints' Day.

PAL Assistant Vice-President for Domestic Operations Jose Medrano told The Evening Paper that as of 6:00 this morning, PAL has cancelled six Airbus operations for Cebu, Davao and General Santos.

The Boeing 737 flights for Masbate, Bacolod, Virac, San Jose, Mindoro, Naga, Laoag, Tagbilaran, Catarman, Daet, Calbayog and Surigao and 12 Fokker flights serving Tacloban, Legazpi. Zamboanga, Iloilo, Dumaguete, Dipolog, Cotabato, Bacolod and Kalibo were also cancelled.

PAL spokesman Rolando Estabillo said PALEA's intransigence has immensely inconvenienced a lot of passengers, stranding them by the thousands at the Manila domestic airport. He added that PAL management is saddened by the decision of PALEA to defy the law by staging an illegal strike which started at 6:00 p.m. last night.

Estabillo further said management has given an ultimatum to strikers to return to work: failure to report until noon tomorrow, November 1 will mean termination.

According to VP for Passenger Services Manuel Panlilio, while it is true PAL is short of manpower, especially those handling specialized equipment in the ramp area, international operations are normal other than delays of a few hours.

For this morning, flights to Hong Kong, Narita, the Middle East, Korea and Singapore will depart with slight delays.

Meanwhile, PALEA striking group picketing the NAIA terminal said they are not bound by Secretary Quisumbing's return-to-work order and will continue picketing until management gives in to their demands, which include a P3.2-billion increase in their salaries, and for management to sit down and settle their collective bargaining agreement.

Earlier, Quisumbing invoked national interest in issuing his order, calling attention to preparations for the historic APEC summit meeting in the country next month.

He said any strike in PAL at this time would embarrass the country before the international community.

PAL Strike na Kagabi

Abante
Thursday, October 31, 1996

Pormal namang sinimulan kagabi, eksaktong alas-sais, ng tatlong unyon ng Philippine Airlines (PAL) employees sa pangunguna ng PAL Employees' Association (PALEA) ang kanilang bantang strike.

Ayon kay Bong Peñas III, National Secretary ng PALEA, halos sabay-sabay umanong nagsitigil sa trabaho ang kanilang mga miyembro upang makilahok sa pagbabarikada sa labas ng kanilang tanggapan.

Nabatid na unang nagsimula ang pagwewelga sa maintenance department ng flag-carrier.

Habang isinusulat ang balitang ito ay wala pang opisyal na pahayag ang PAL management ukol sa operasyon ng tanggapan, partikular sa mga flight schedules na maaaring makansela, bunga ng malawakang welgang nabanggit.

Matatandaang ang pagkilos na ito ng 9,000-kataong PALEA ay sinusuportahan ng Flight Attendants and Stewards Association of the Philippines (FASAP) at Airline Pilots Association of the Philippines (ALPAP).

Bilang pagtutuwid naman sa mga ulat na ang strike na ito ay bahagi ng pananabotahe sa nalalapit na APEC meet, sinabi ni FASAP president Roberto Anduiza na walang layunin ang kanilang samahan at mga kaalyadong unyon na hiyain ang administrasyong Ramos sa mata ng mga foreign delegates na dadalo sa APEC summit kundi ito'y independenteng pagkilos hinggil sa panloob na hidwaan ng PAL management at employees union.

Kasabay nito ay ibinasura ng tatlong unyon ang alok na P477 milyong stocks ng kumpanya sa kanila sa pagsasabing hindi ito ang kasagutan sa kanilang mga hinaing.

Samantala, bilang reaksyon naman ay sinabi ni Pangulong Fidel V. Ramos na hindi niya panghihimasukan ang problemang ito ng PAL bagkus ay ipinauubaya niya sa Department of Labor and Employment (DOLE) ang pagresolba sa gitgitang ito ng PAL management at mga unyon.

Bilang kinatawang ahensya ng pamahalaan ay nasasakop ng tungkulin ng DOLE ang pagsasaayos ng naturang usapin kasabay ng paniwalang mareresolba rin ang problemang ito sa lalong madaling panahon.

Umaasa rin ang Pangulo na hindi na aabot sa takdang araw ng APEC summit ang nasabing pagwewelga ng PAL employees.

Sigalot sa PAL

Balita
Thursday, October 31, 1996

Ipinahayag kahapon ng Department of Labor and Employment (DOLE) na kanilang diringgin ang usaping inihain ng unyon ng Philippine Airlines (PAL) laban sa pangasiwaan ng nabanggit na korporasyon na nagsasabing tahasang lumalabag ang pangasiwaan ng PAL sa mga batas sa paggawa at marapat na makasuhan ang mga ito ng "contempt."

Ayon sa pahayag ni Labor Undersecretary Jose Español, nabatid na ang pagdinig sa usapin ay gagawin sa Martes, Nobyembre 5 at tiniyak na ang magkabilang panig, ang PAL Employees' Union (PALEA) at ang pangasiwaan ng korporasyon ay bibigyan ng sapat na pagkakataon na ibigay ang kanilang mga posisyon hinggil sa sigalot.

Bukod sa "contempt," inaakusahan din ng PALEA ang pangasiwaan ng PAL sa pagsasagawa ng hindi pantay na pakikitungo sa kanila at pagtatangkang lansagin ang unyon.

Ayon sa PALEA, ang ginawa ng pangasiwaan ng PAL, sa pangunguna ni Antonio Garcia, Tagapangulo ng Korporasyon, na pag-aalok sa mga kawani na bumili ng sosyo sa PAL ay isang tiyakang paglabag sa umiiral na batas sapagkat ang panukala ay inihain hindi sa PALEA kundi sa mga kawani. (M. Evangelista)

PAL Union Resorts to Slowdown

People's Journal
Thursday, October 31, 1996

FAILING to secure the Department of Labor's nod on their planned work stoppage, the different workers' unions of Philippine Airlines (PAL) are allegedly resorting to other strategies to call management's attention to their demands.

Non-union members in "Asia's First Airline" said they have observed a trend towards a general slowdown on how things work in the airline from slow baggage handling, tardy pilots anD cabin crews and even sluggish cargo processing that delay flights for hours.

"Apart from staging protest actions during off-hours, union members are taking undue advantage of a provision in their collective bargaining agreement which allows them to be absent for 24 hours without having to explain to management the reason for such failure to report for work," said PAL employes who requested anonymity.

In the last few days, there are increasing numbers of PAL workers who have taken these unexcused absences, fueling speculations that such were deliberately being committed, the airline staff said.

Amidst the holiday rush brought about by the forthcoming commemoration of All Souls' Day, upset passengers are feeling the ill effects of the general work slowdown at PAL. Renato Reyes, 56, whose recent flight to Aklan was canceled for no apparent reason noted that airline staff were not their usual efficient, upbeat and service-oriented selves. "They were taking their sweet time in handling the baggage and flight attendants were late for their flight. Instead of waiting for the usual late passengers, planes were waiting for cabin attendants," Reyes said.

On two occasions last week, Labor Secretary Leonardo Quisumbing issued separate assumption orders which effectively prohibited the different PAL unions from staging a strike.

Under the Philippine Labor Code, the Secretary of Labor has the power to assume jurisdiction and prohibit an impending strike that will derail the operations of public utilities like power and water distribution firms, including air transportation companies which are seen as essential services affecting national interest and security.

Work Slowdown At PAL?

Manila Bulletin
Thursday, October 31, 1996

The various workers unions at Philippine Airlines (PAL) are allegedly resorting to other strategies to call management's attention to their demands.

Non-union members said they have observed a trend towards a general slow-down of work in the airline from slow baggage handling, tardy pilots and cabin crews and even sluggish cargo processing that delays flights for hours.

"Apart from staging protest actions during off-hours, union members are taking undue advantage of a provision in their collective bargaining agreement which allows them to be absent for 24 hours without having to explain to management the reason for such failure to report for work," said a PAL employee who requested anonymity.

"In the last few days, there are more and more PAL workers who have taken unexcused absences," the airline staff said.

"We sympathize with the unions since we're also bound to get the same benefits if they win their demands," said a PAL airport supervisor.

"However, we cannot and will not join the work slowdown because it will only create embarrassment for the airline and cause further financial losses," he added.

Amidst the holiday rush for the observance of All Soul's Day, upset passengers are feeling the ill-effects of the general work slowdown in PAL.

Renato Reyes, 56, whose recent flight to Aklan was canceled for no apparent reason, noted that the airline staff were not their usual efficient, upbeat and service oriented selves.

PAL Workers Strike For Higher Pay

Money Asia
Thursday, October 31, 1996

MANILA — Philippine Airlines (PAL) ground employees went on strike late yesterday to press their demands for wage increases under the stalled collective bargaining agreement (CBA) talks.

Members of the PAL Employees' Association, which claims a membership of 8,000, went on strike at around 6:00 p.m. There were no immediate reports of the effects but the strike threatened to disrupt PAL's domestic and international flights.

"We have been pushed to the wall and now we will have to get our demands through the picket line," PALEA spokesman Bong Peña said. PAL management had no immediate comments on the strike but Angel Sambo, a publicity relations officer, said that management would soon issue a statement on the matter.

PALEA is the biggest of the three employees unions which the national flag carrier is presently negotiating with. The other unions include the Airline Pilots Association of the Phils. and the ' Attendants and Stewards Association of the Phils.

Peña, however, said that although the other PAL unions were supporting the strike, it was not clear if they participated.

PALEA is seeking a total of P3.2 billion in wage increase and other benefits over the next two years.

The striking PAL workers, in effect, rebuffed a directive issued by Pres. Fidel Ramos ordering the Department of Labor and Employment (DOLE) to quickly resolve the deadlocked CBA negotiations.

The strike occurred as the country is set to host the coming Asia-Pacific Economic Cooperation (APEC) November summit. Heads of state of the 18 member economies are expected to attend the conference to discuss crucial points on liberalizing the regional economy.

Pres. Ramos, however, downplayed the possible embarrassment to the country resulting from the strike. He pointed out that PAL was just one of several local airlines in the country.

"i stepped in once more than a year ago, at the time when there was already stoppage of airline service in Cebu because of the PAL employees' strike from three unions. But that was the time when there was no other service available, now we have several airlines," Pres. Ramos said.

The strike also came in the wake of accusations made by the leadership of three employees unions that its offer to distribute P477 million in company shares was "anti-union."

The union leaders claimed that the offer, which is part of the proposed non-wage benefits in the CBA, violated a DOLE order for the parties to desist from making any moves to aggravate the tension. The union also accused PAL management of directly negotiating with the employees and not their authorized collective bargaining agents.

THE DOLE is set to hear the contempt raps filed by PALEA against the airline management on Nov. 5.

But Pres. Ramos himself praised the PAL management's offer. "I'm happy that PAL has accorded to the employees a share in the ownership of the Philippine Airlines," he said.
The Chief Executive added that the move "is part of the solution that the DOLE is trying to get the two sides to adopt."

Pres. Ramos, in junking a request made by the PAL employees to intervene in the CBA negotiations, said that "market forces" should be allowed to resolve the issue. Geraldine G. Pabuna

PAL Labor Union Goes On Strike

Business World
Thursday, October 31, 1996
By LARINA G. PEREZ, Senior Reporter, ESTHER C. TANQUINTIC, Reporter
and LEOTES MARIE T. LUGO, Researcher

Philippine Airlines (PAL), the country's flag carrier, will temporarily stop servicing several domestic routes as the labor strike started yesterday. Even with this, Pres. Ramos refused to draw in the squabble.

"I am not a labor arbiter," President Ramos told Palace reporters yesterday when asked if he would again mediate in the PAL labor dispute.

Earlier, the Alliance of Philippine Airlines, Inc. Labor Unions (APLU) wrote a letter asking the President to intervene in their row with PAL management. But Mr. Ramos said he is tossing the problem to the Department of Labor and Employment (DoLE).

"The initial approach of the government through the DoLE is to let the employer and employees settle their differences by virtue of their CBAs (collective bargaining agreements) and their sharing of benefits arising out of the whole enterprise," Mr. Ramos said.

Mr. Ramos also expressed approval of PAL's Employee Sharing Program (ESOP). PAL announced it is offering stocks worth P477 million at P5 per share to its employees. The 95 million unsubscribed shares account for about 4.75% of PAL's total capital stock.

"I think this is part of the solution that the DoLE is trying to get the two sides to adopt. And since this has been announced by PAL already, I think they are on their way to a solution," Mr. Ramos said.

APEC

However, with the start of the strike yesterday which could stretch until the Asia-Pacific Cooperation (APEC) summit starting this November 21, a harder stance may have to be taken by government to resolve the dispute.

APLU is the umbrella organization of PAL's three labor unions — PAL Employees' Association of the Philippines (PALEA), Flight Attendants and Stewards Association of the Philippines (FASAP) and Airline Pilots Association of the Philippines (ALPAP).

Manolo Aquino, PAL Executive Vice-President, told Business World prior to the strike that if PAL's unions go on strike "we will be forced to concentrate on domestic routes where there is no competition. We're talking about Cebu, Davao, etc."

Grand International Airways (GrandAir), Cebu Pacific Air, and Air Philippines offer alternatives to PAL's domestic services. GrandAir, which is controlled by the Panlilios, currently flies to Cebu, Davao, Tacloban and Cagayan de Oro. The Gokongwei-controlled Cebu Pacific serves the following points: Manila, Cebu, Cagayan de Oro, Davao and Iloilo. Air Philippines, owned by businessman William Gatchalian, flies to Subic, Iloilo, Kalibo, Zamboanga, Puerto Princesa, Cotabato and Davao.

INTERNATIONAL FLIGHTS

Mr. Aquino said PAL will strive to maintain its international flights once the strike takes place. However, he said PAL does not expect international flights will be affected as there are enough foreign carriers to service overseas-bound passengers.

The APLU went on strike due to alleged unfair labor practices committed by management. Among the reasons cited by the unions as basis for a strike include violation of the economic provisions of existing CBAs; termination of 183 officers and members of PALEA and violation of existing work rules, among others.

The strike was held despite two assumption orders issued by Labor Secretary Leonardo Quisumbing. The PAL unions denounced the Labor Chief's orders as biased in favor of the airline's management.

Meanwhile, PALEA filed a motion for contempt versus PAL management, particularly its President and Chief Operating Officer (COO) Jose Antonio Garcia for defying DoLE's directive of "committing any act that may exacerbate the situation."

MEMO

The union alleged the COO defied DoLE's Oct. 24 assumption order when he issued a memorandum, dated Oct. 25, directly addressed to "all employees."

The memo circular announced the ESOP and also explained the status of the union's long-standing CBA.

But the APLU branded the ESOP as a "`pie in the sky' solely designated to mislead the public and veer attention away from the refusal of PAL management to meet with its employees and negotiate terms for new CBAs."

"PAL and Mr. Garcia, by their provocation, have demonstrated utter contempt for the temporary and fragile industrial peace forged last Oct. 24... Management broke the peace and drew the first blood," it added.

PAL Strike On; Ramos Keeps Out

Business World
Thursday, October 31, 1996

Philippine Airlines (PAL), the country's flag carrier, will temporarily stop servicing several domestic routes following the start of the labor strike yesterday. Contrary to what he did before, President Ramos refused to be drawn into the squabble. "I am not a labor arbiter," he told Palace reporters when asked if he would again mediate in the PAL labor dispute. Earlier, the Alliance of Philippine Airlines, Inc. Labor Unions (APLU) asked President Ramos to intervene with PAL management. But Mr. Ramos tossed the problem to the Department of Labor and Employment (DOLE).

PAL Hit by Strike

Manila Bulletin
Thursday, October 31, 1996

The Philippine Airlines Employees' Association (PALEA) went on strike yesterday, charging PAL management led by Lucio Tan with unfair labor practices.

They also charged management with gross violation of the economic provisions of the collective bargaining agreement (CBA), intransigence in the negotiation for a new CBA, and violation of work rules, resulting in the degradation of the safety measures for passengers.

Bong Peña, PALEA Secretary General, said the strike began at 6 p.m yesterday and picket lines were set up at PAL offices at the Ninoy Aquino International Airport (NAIA) and the Manila domestic terminal.

Picket lines were also at PAL's two in-flight gates and the maintenance center at the NAIA.

Peña said the PALEA, which has more than 9,000 members, the biggest of the three labor unions at PAL, will also picket other airports where PAL has offices. The two other unions at PAL are the Flight Attendants and Stewards Association of the Phiippines (FASAP) and Airline Pilots Association of the Philippines (ALPAP).

Some flights have been cancelled because of the strike, NAIA officials said.

PALEA went on strike despite Labor Secretary Leonardo A. Quisumbing's assumption of jurisdiction over the labor dispute at PAL. He had earlier directed the union and the management to refrain from committing any act that could worsen the situation.

Quisumbing said a work stoppage at PAL at this time that the country is preparing for the Asia-Pacific Economic Cooperation (APEC) summit on Nov. 25 will cause international embarrassment to the nation.

He said suspension of the operation of the country's flag carrier will also adversely affect other business firms whose activities are closely intertwined with PAL.

But PALEA said the labor unrest at PAL was worsened by Quisumbing's assumption of jurisdiction.

“The assumption of jurisdiction did not contribute to the eventual resolution of the labor dispute,” PALEA said. "It merely crippled the union from further exercising its rights guaranteed by law."

PALEA said Quisumbing failed to compel PAL management to comply with its duty to bargain collectively and has fallen into PAL's ploy to kill negotiations for the new CBA’s.

Earlier, PALEA had filed contempt charges against Tan and top officials of PAL.

Labor Undersecretary Jose Español said PALEA demanded that PAL management, particularly its President, Antonio Garcia, be held for direct contempt for violating a provision of Quisumbing's order.

Español said the contempt petition is scheduled to be heard on Tuesday, Nov. 5. The management side will also be heard during the Nov. 5 hearing, he said. (E. T. Suarez, Ronniel de Guzman & Anjo Perez)

Ramos

President Ramos urged the strike-hit Philippine Airlines (PAL) management yesterday to settle its differences with PAL workers and look for the best solution to settle the labor dispute.

The President said he received a letter of appeal from the striking PAL workers for him to intercede in the row and he forwarded the letter to the Department of Labor and Employment (DOLE).

"First of all, I am not a labor arbiter. Let the market forces and the DOLE resolve this issue," he stressed.

The Chief Executive said the DOLE has taken cognizance of the concerns and issues raised by the PAL Employees' Association (PALEA) and the Alliance of PAL Labor Unions (APLU) against PAL management.

Earlier, the APLU charged PAL management with violating existing work rules to the detriment of the riding public, rampant contractualization of regular jobs aimed at displacing some 4,000 workers, intransigence in the negotiation for new collective bargaining agreements (CBAs), and termination of 183 officers and members of the union despite the signing of the social accord brokered by President Ramos in 1994.

President Ramos brushed aside any perceived adverse effects of the strike next month being planned by PAL workers, saying there are other carriers in the country which can handle the bulk of air passengers coming for the 4th Asia-Pacific Economic Cooperation (APEC) Leaders' Summit.

APLU, composed of the PALEA, the Flight Attendants and Stewards Association of the Philippines (FASAP), and the Airline Pilots Association of the Philippines (ALPAP), has charged the PAL management led by Lucio Tan with gross violation of the economic provisions of existing CBA and unilateral implementation of various job-threatening schemes such as joint ventures and wet-leases of used aircraft of foreign airlines.

In 1994, PALEA staged a strike that partially grounded several domestic flights and delayed international flight schedules. President Ramos stepped in on this row to prevent further stoppage of airline service.

Wildcat Strike Hits PAL

MALAYA
THURSDAY, OCTOBER 31, 1996

WILDCAT STRIKE HITS PAL (2)

Some ground personnel of Philippine Airlines early last night staged a wildcat strike at the Manila airports, resulting in the cancellation of eight international and 13 domestic flights.

The strike was pulled off by the Philippine Airlines Employees' Association in defiance of labor department orders. PAL management said it would reduce flights on domestic routes where a competing domestic carrier is operating and redirect available resources to points where PAL is the sole carrier.

The management said this is part of contingency measures to minimize inconveniences to passengers and insure continuous service to the provinces.

The management said it was saddened by the decision of PALEA to defy the law by staging the illegal strike.

The situation is expected to get worse today. International flights of other carriers may also be affected as the strikers have barricaded the In-flight Center which prepares in-flight meals.

Cargo and baggage services will also be affected although PAL intends to tap other ground service handlers.

PALEA had filed a notice of strike, alleging unfair labor practice, but Labor Secretary Leonardo Quisumbing assumed jurisdiction, saying the alleged labor code violations were not grounds for holding a strike.

The complaints, Quisumbing said, were in the nature of grievances that could be handled by the grievance machinery.

Quisumbing had warned any acts of the union that may exacerbate the situation "would be dealt with accordingly."

PALEA, however, said in a statement it was "not bound by the secretary of labor's assumption order."

Ramos Won't Meddle in PAL Labor Dispute

The Philippine Journal
Thursday, October 31, 1996

FVR on PAL: Won't intervene

PRESIDENT Ramos yesterday said he will not intervene in the ongoing dispute between management and workers of Philippine Airlines because "I should not be a labor arbiter." PAL employees threatened to go on strike during the Asia-Pacific Economic Cooperation summit next month.

The workers, belonging to the PAL Employees' Association threatened to strike for alleged non-compliance of their collective bargaining agreement by management. Despite an order from the Department of Labor and Employment not to strike, two other PAL unions — the Flight Attendants and Stewards Association of the Philippines and Airline Pilots Association of the Philippines — had also filed strike notices with DOLE.

The workers also sought the help of the President to intervene just like what he did two years ago. But this time the Chief Executive refused.

"Well, I passed it immediately to the Department of Labor because I should not be a labor arbiter," he explained.

Mr. Ramos pointed out that he only intervened in the PAL dispute two years ago because there were no other airlines operating in the country in 1994.

He told his weekly pass conference, in Malacañang, ”You will recall I personally stepped in more than a year ago at the time when there was already stoppage of airline services in Cebu because of the PAL employees strike from the three unions.

“But that was the time when there was no other service available. Now we have several airlines and so let the market forces and the Department of Labor and Employment resolve these issues.”

According to the President, Labor Secretary Leonardo Quisumbing is now trying to resolve the dispute with representatives from PAL workers and management.

“I think they are on the way to a solution,” he said.

The President cited the decision of management to give to its employes the chance to own shares of stocks of the company. ”I think this is part of the solution that DOLE is trying to get the two sides to adopt,” he said.

PAL Employees Stage Strike; Many Passengers Stranded

The Manila Chronicle
Thursday, October 31, 1996

THOUSANDS of passengers were stranded last night after employees of Philippine Airlines (PAL) struck in protest against alleged union-hosting activities and unfair labor practices of management.

Jose Bong Peñas. National Secretary of the Philippine Airlines Employees' Association (PALEA) said the strike started at the Mactan International Airport at 6 p.m. followed by its Davao chapter minutes later.

Operations at the Ninoy Aquino International Airport ground to a halt at 7 p.m. as word of the strike in Mactan and Davao reached employees of the country's flag carrier at the premier airport.

The union filed the strike notice yesterday morning through the mail.

President Ramos yesterday rejected a plea by the workers for him to intervene in their long-running pay dispute with the national carrier, saying he was not a labor arbiter.

Mr. Ramos said during his weekly news conference that the Department of Labor and Employment (DOLE) was already in touch with both management and workers in an attempt to solve the dispute.

PAL union on Tuesday urged the President to intervene to help avert a potentially embarrassing strike called to coincide with next month's Asia-Pacific Economic Cooperation (APEC) summit which the Philippines is hosting.

"I passed (the union request) immediately to the DOLE because I should not be a labor arbiter," the President said.

Mr. Ramos welcomed PAL management's offer to sell shares to employees unhappy with a proposed new wage agreement, saying this was part of the solution DOLE was trying to get the two sides to accept. Elna Terminio

Wildcat Strike Hits PAL

Today
Thursday, October 31, 1996
By RICHARD ARBOLEDA
Reporter

GROUND employees of Philippine Airlines launched a nationwide strike early last night, paralyzing the airlines' operations in various airports all over the country, as well as canceling several international flights.

In an announcement, PAL said it canceled eight international flights as well as six domestic flights as of 7 p.m. yesterday.

PAL said it would reduce the number of domestic flights in routes where it has competitors and "redirect existing resources to points where PAL is the sole carrier."


The airlines' management also said it was saddened by the PAL Employees' Association's decision "to defy the law by staging an illegal strike."

The 9,000-strong PAL Employees' Association (Palea) pushed through with its highly anticipated plan to go on strike at 6:00 p.m. last night as commuters were busy preparing for their trips abroad or to the provinces due to the extended weekend.

Palea staged the strike hours after President Ramos turned down its request to step into the dispute between the union and PAL management.

Ramos, who over a year ago intervened in a PAL labor dispute, said he had left the problem in the hands of the Department of Labor and Employment "because I should not be a labor arbiter.”

"We have been pushed against the wall," said Palea Vice President Jerry Rivera.

"This is our last resort to defend ourselves from management's onslaught to our members."

The ground employees simultaneously walked out of their work shifts at the Ninoy Aquino International Airport, Manila Domestic Airport and the airports in Mactan and Davao.

Rivera said the union is still awaiting word from its chapters in Cagayan de Oro and Zamboanga but assured that workers there will also participate in the strike.

Palea apologized to the passengers who were inconvenienced by the strike, saying the management did not give the workers any choice.

Rivera said the union was forced to push through with the strike because of "management's contemptuous disregard" of the assumption orders issued by Labor Secretary Leonardo Quisumbing, enjoining both the workers and management not to make any move that would exacerbate the tense labor situation.

The union accused management of undermining Palea's right to collectively bargain for the workers' benefits when it issued a memorandum to employees urging them to avail of a financial package that would allow them to own shares of stocks of PAL.

Rivera added that the management did not even bother to submit the offer to the union and instead chose to ignore the union's call for a dialogue to discuss the proposals for a long-delayed collective bargaining agreement. With M. Gonzales

PAL Employees Stage Wildcat Strike

The Philippine Star
Thursday, October 31, 1996
By NIXON KUA and DAVE GOMEZ

Employees of the Philippine Airlines (PAL) staged a wildcat strike last night, resulting in the cancellation of at least eight incoming international flights and five domestic flights.

The work stoppage pushed through despite an order from the Department of Labor and Employment barring PAL employees from staging a strike to avoid disrupting the Asia Pacific Economic Cooperation (APEC) summit next month.

The strike started at around 6 p.m. when members of the PAL Employees' Association (PALEA) walked out from their stations at the Manila domestic airport, the Ninoy Aquino International Airport, the PAL Technical Center in Pasay City and in at least eight key local airports.

Workers were also reported picketing the highly sensitive PAL in-flight center and cargo warehouse.

Bong Peñas, PALEA spokesman, said they were demanding their long-delayed salary increase and protesting PAL management's plan to hire contractual workers under its modernization program.

There was still no word whether the Airline Pilots Association of the Philippines (APAP), to which some 450 PAL pilots belong, will join the strike.

The 2,500-strong Flight Attendants and Stewardess Association of the Philippines (FASAP) said it will not join the work stoppage.

The strike also crippled the ground services at the NAIA, delaying cargo-handling operations of five international airlines by at least an hour.

Even baggage handlers walked out in protest of what they perceived as their management's apathy to the workers.

This prompted airline officials to hire the services of at least three local firms to handle all domestic and international cargoes of PAL.

At Malacañang earlier, President Ramos said he will not intercede in the labor dispute at PAL despite threats from its union to strike in time for the opening of the fourth APEC summit here next month.

"The Department of Labor and Management (DOLE) has taken cognizance of these concerns, the issues and controversies," the President told reporters at his weekly press conference.

"This initial approach of the government through the DOLE is to let the employers and employees to settle their differences," Mr. Ramos added.—With AFP reports 

PAL strike may peril ind'I peace

Industrial peace and the momentum of economic growth in the country may get disrupted because of the refusal of the management of Philippine Airlines (PAL) to negotiate overdue collective bargaining agreements with its employees.

The grim prospect for the economy surfaced yesterday as the Association of PAL Labor Unions (APLU) continued its protest actions against PAL by picketing the Allied Bank building, headquarters of Lucio Tan's companies in Makati.

"Only a direct intercession by President Ramos could now stop us from going on strike," declared Andy Ortega, Director of the Flight Attendants and Stewards Association of the Philippines (FASAP), one of three PAL unions determined to go on strike over anti-labor and union-busting charges against the national flag carrier before the APEC conference next month.

Labor unrest at PAL may expand to other segments of the economy as the 14,500-strong Philippine Long Distance Company union and the 8,500-member Manila Electric Company union threw their support to the protesting PAL employees.

PALEA also expected support from its mother federation, the Trade Union Congress of the Philippines (TUCP), the country's largest labor federation.

TUCP sources could not, however, give the federation's official stand on the PAL labor controversy and its potential disruptive effects on the economy because its top leaders were attending a conference on the forthcoming APEC summit.

PAL Flights Grounded

Business World
Thursday, October 31, 1996

Thousands of passengers were stranded last night as the Philippine Airline Employees' Association (PALEA) began its nationwide strike.

By 6 p.m, yesterday, PALEA members have left their respective work areas and trooped to the picket line to denounce airline management's alleged union-busting activities and unfair labor practices.

Jose Bong Peñas, PALEA National Secretary, said the strike started in Mactan, followed by Davao.

PAL operations at the Ninoy Aquino International Airport (NAIA) stopped at 7 p.m. yesterday as word of the strike in Davao and Mactan reached the main airport in Manila.

Mr. Peñas said union members have no option but to push through with the strike in order to protest the union-busting activities of the airline which will allegedly affect some 8,000 regular PALEA members.

The union filed through mail a second notice of strike early yesterday morning with the National Conciliation and Mediation Board (NCMB).

"We are officially on strike. This is our last resort to defend ourselves from management's onslaught against our members," Mr. Peñas said.

At the same time, PALEA apologized to the airline passengers affected by the sudden strike.

As estimated 1,000 passengers booked on international flights bound for Europe, Los Angeles and San Francisco were reportedly adversely affected by yesterday's strike.

PALEA counsel Arno Sanidad said the strike is legal since it was launched to protest management's union-busting tactics. — E. C. Tanquintic

PAL Workers Strike: Flights Cancelled

Philippine Daily Inquirer
Thursday, October 31, 1996
By ROCKY NAZARENO

GROUND employees of Philippine Airlines went on a strike shortly after dusk last night in a wildcat action expected to "totally paralyze" international and domestic flight operations starting today.

The 9,000-strong Philippine Airlines Employees' Association (Palea) took the action to press demands for wage increases.

Reports from the Manila Domestic Airport (MDA) said "some PAL pilots have sympathized with Palea and have decided to join the sitdown strike."

Last night alone, all the 13 scheduled domestic flights were cancelled, according to MDA Flight Operations Chief Mariano Salazar. Late reports said outgoing international flights had also been affected.

Other international airlines were also affected because cargo service is being handled by PAL employees.

The mass action is expected to create a major logjam today with PAL having an average of 85 flights coming in and out of the domestic airport every day.

At the NAIA there is an average of 110 incoming and outgoing international flights a day.

Worse, passenger volume would be far greater than the usual because of the forthcoming All Saints' Day break.

Airport officials added the strike could not have come at a worse time since airports around the world are currently shifting from summer to winter schedules.

"This is a very critical period for us. We are still in the process of adjusting our schedules to time our flights with those of other airlines and airports. But given the situation, we are trying our best to cope," said Alvin Candelaria, Officer-in-Charge of the NAIA ground operations division.

There was still no word whether or not the Airline Pilots Association of the Philippines (Alpap), to which PAL's 450 pilots belong, will join the strike.

The 2,500-strong Flight Attendants and Stewardess Association of PAL (Fasap) will not join the strike, according to an official.

At the NAIA, Candelaria said two United States-bound and a Europe-bound PAL flights were delayed.

Five other international flights of KLM, Cathay Pacific, Egypt Air, Air Nauru and Kuwaiti Air were also delayed because of the strike.

Candelaria added that all arriving passengers last night experienced difficulty in claiming their luggage after most of the baggage handlers also walked out.

Incoming passengers of flights which came in late afternoon yesterday were still waiting for their luggage to be offloaded as of 8:30 last night.

PAL Workers Start Strike Us vs. 'Union-Busting'

The Manila Times
Thursday, October 31, 1996
By ARIES RUFO AND DIDET DANGUILAN
Reporters

THOUSANDS of passengers were stranded last night after the unionized workers in the Philippine Airlines (PAL) began a nationwide strike.

Members of the PAL Employees' Association (PALEA) caught management by surprise as they made good their threat to stage a strike. Union officials had earlier said the strike would be timed before the Asia Pacific Economic Cooperation (APEC) meetings on Nov. 19-25.

At press time, the PAL public affairs office said its statement on the strike was still being cleared with top management.

The strike came a few hours after President Ramos rebuffed the union's proposal for him to intervene in the labor dispute.

PALEA said it mailed its notice of strike to the DOLE yesterday morning. A strike staged on grounds of union-busting is not covered by cooling-off period, according to a PALEA lawyer.

Not an arbiter

"I should not be a labor arbiter," Ramos said, adding that the labor problem affecting PAL is the responsibility of the Department of Labor and Employment.

Besides, Ramos said there are now several "other" airlines servicing major routes in the country.

The President said he once interfered in a PAL strike more than a year ago because the entire air service then in Cebu had ground to a halt.

At that time, Ramos said he had no choice but to act as arbiter between the workers and the PAL management because "that was the time when there was no other service available."

"Now, we have several airlines and so let the market forces and the DOLE resolve these issues," he told reporters during his weekly news conference.

Mactan started it

PALEA officials also said they had no choice but to go on strike to protest the alleged union-busting activities and unfair labor practices by the Lucio Tan-led PAL management.

Jose Peñas, Palea national secretary, said the strike started in Mactan at exactly 6 last night, and was followed minutes later by the workers in Davao.

Operations at the Ninoy Aquino International Airport ground to a halt at around 7 p.m. as word of the strike in Davao and Mactan reached the main airport, union officials claimed.

2 strikes in '94

In 1994, PALEA staged two strikes.

The strike lasted for nine days from June 16, 1994, after a dead-lock in bargaining negotiations.

On Aug. 10 to 19 of the same year, the union mounted another strike after the management terminated all its officers.

PALEA, which boasts of 8,500 members, counts members from the maintenance, engineering, cargo, catering and in-flight services departments of the PAL.

International flights to San Francisco and Los Angeles in California, which were scheduled to depart early last night were expected to face delay.

Pilots, stewards too

Two other unions in PAL composed of flight stewards and pilots have also committed to join the strike.

Palea officials said they expect the effect of the strike to be felt today.

Peñas said the union finally pushed through with the strike to dramatize the continued union-busting strategics by management, which would affect around 8,000 regular PALEA members.

In a statement, the union explained its action: "We are officially on strike. This is our last resort to defend ourselves from management's onslaught to our members," Peñas said.

At the same time, Peñas apologized to the passengers affected by the sudden strike.

At least 1,000 passengers on international flights to Europe and to Los Angeles and San Francisco were adversely affected.

Job security

PALEA counsel Arno Sanidad said the strike is legal since it was launched to protest management's union-busting tactics.

The issues at hand, Peñas said, are the continued sub-contracting policies of management which, he said, threaten the job security of the workers.

At the maintenance department alone, Peñas said around 3,000 workers will lose their jobs as management plans to hire casuals to perform the jobs of regular employees.

He cited the recent memorandum of agreement signed by the PAL management with the US-based General Electric Co. involving engine overhaul.

The MOA, he said, will severely affect workers in the maintenance department.

Management's subcontracting policies, he added, threatens personnel in all the departments, including the cargo, the engineering and the catering or in-flight services.

Must fight back

"We had to fight back. The management is employing various modes to decimate our personnel," he said.

The PALEA has been anticipating that Ramos would intervene by ordering PAL's management to grant the workers' demands. In fact the group has written the President a letter appealing for intercession.

Earlier in the day, some 500 employees belonging to the three PAL unions started their protest action to pressure the management for a fair CBA.

Employees belonging to PALEA, Flight Attendants and Stewards Association of the Philippines (FASAP), and Airline Pilots Association of the Philippines (ALPAP) staged a picket at PAL's offices in Greenbelt, Makati, from 12 noon to 2 p.m.

In a press statement, the strikers said they were forced to submit their notice of strike because of management's abusive policies and disregard of their proposed CBA.

No new CBA

The strikers particularly blamed businessman Lucio Tan, PAL Chair, for their plight, saying that since Tan assumed his position, no new CBA has been signed.

Instead of interfering in a purely labor dispute, Ramos said, he would rather allow the contending parties to settle the row among themselves.

The government's policy involving labor disputes, the President said, is for the employers and the employees to first settle their differences among themselves "by virtue of their collective bargaining agreements and their sharing of benefits arising out of the whole enterprise."

The PAL management, he noted, has already offered its employees the opportunity to be-come part-owners of the airline company by subscribing to new PAL shares worth P477 million at P5 per share.

"I think this is part of the solution that DOLE is trying to get the two sides to adopt," Ramos said, citing that with the PAL management's offer, the two parties "are on their way to a solution."

PALEA, however, said the stock-sharing scheme was meant to destroy the union. —With a report from Joel San Juan

Union Defies DOLE Order, Snags PAL Operations with Wildcat Strike

Manila Standard
Thursday, October 31, 1996

Disgruntled employees of Philippine Airlines (PAL) staged a wildcat strike early last night partially paralyzing operations at the domestic airport and the Ninoy Aquino International Airport and threatening to affect all other regional offices by today.

Bong Peña, National Secretary of the striking PAL Employees' Association (PALEA), told the Manila Standard union officials decided to go on strike effective 6 o'clock last night.

PALEA, along with the Flight Attendants and Stewards Association of the Philippines (FASAP) and the Airline Pilots Association of the Philippines (ALPAP), defied an earlier order by the Department of Labor and Employment (DoLE) not to proceed with their protest action after the department assumed jurisdiction over the labor row at the airline.

The PAL union's decision to go on wildcat strike came only a few hours after President Ramos appealed to the union to call off its planned walkout and accept the airline management's offer to distribute company shares of stock as a substitute for economic demands.

Reports from the Manila Domestic Airport (MDA) said "some PAL pilots have sympathized with PALEA and have decided to join the sit-down strike."

At presstime last night, reports said all the 13 scheduled domestic flights were already cancelled. This was confirmed by MDA Flight Operations Chief Mariano Salazar.

The mass action was expected to create a major logjam today with PAL having an average of 85 flights coming in and out of MDA every day.

At the NAIA, there is an average of 110 incoming and outgoing international flights a day.

Worse, passenger volume would be far greater than the usual because of the forthcoming All Saints' Day break.

Airport officials said the strike could not have come at a worse time since airports around the world were currently shifting from summer to winter schedules.

Critical period

"This is a very critical period for us. We are still in the process of adjusting our schedules to time our flights with those of other airlines and airports. But given the situation, we are trying our best to cope," said Alvin Candelaria, Officer-in-Charge of the NAIA ground operations division.

Five other international flights of KLM, Cathay Pacific, Egypt Air, Air Nauru and Kuwaiti Air were also delayed because of the PALEA strike.

Candelaria said all arriving passengers last night experienced difficulty claiming their baggage after most of the baggage handlers also walked out.

According to Peña, workers walked out of their stations at the MDA, NAIA, PAL technical center and in the airports in Mactan, Davao, Cagayan de Oro, Zamboanga, Gen. Santos, Bacolod, Legaspi and Naga.

In Manila, the striking PALEA employees have put up barricades in five points, particularly the two gates at the PAL in-flight center which is considered the nerve center of the airline where the catering division and dispatch center for all flight attendants are located.

Peña said they have started stocking up on food provisions as they prepare for a long haul after a standoff in collective bargaining agreement (CBA) negotiations with PAL management.

He added they filed a notice of strike with (DoLE) yesterday morning.

The President said there was no need for him to mediate in the dispute since the DOLE has assumed jurisdiction over the case.

As of presstime last night, the PAL management has not issued any statement.

Mr. Ramos has earlier indicated the government will not allow a strike at the nation's flag carrier shortly before or during the Asia-Pacific Economic Cooperation (APEC) leaders' summit next month.

He said his instruction to Labor Secretary Leonardo Quisumbing is to see to it that PAL management and employees exhaust all means under their collective bargaining agreement by which the dispute could be amicably resolved.

Contempt charges

The labor department is set to hear the contempt charges filed by PALEA against the airline management. Undersecretary Jose Español of the labor relations office said the hearing is set on Nov. 5, at which PAL management is expected to also air its side.

On O'ct. 28, PALEA filed a complaint citing in particular Jose Antonio Garcia, PAL President and CEO Chief, for violations of the assumption of jurisdiction (AJ) orders issued by Secretary Quisumbing.

Quisumbing first assumed jurisdiction over the labor dispute Oct. 18, banning management from locking out workers and the workers from staging a strike. On Oct. 24, he issued a second AJ ordering both sides from taking steps which would worsen the dispute and derail the CBA talks.

"By addressing individual financial package which ought to have been properly offered at the bargaining table, they undermined PALEA as the certified bargaining agent of the company's ground staff and sowed confusion among its members," Arno Sanidad, PALEA legal counsel, said.

Philippine Airlines' management said it is saddened by the decision of the PAL Employees' Association to defy the law by staging an illegal strike early tonight.

As of 7 p.m. (Oct. 30), eight international flights were cancelled. Thirteen domestic flights including three bound for Cebu, two for Iloilo and one for Bacolod were also cancelled.

PAL management said it would reduce domestic flights on sectors where a competing domestic carrier is operating and redirect existing resources to points where PAL is the sole carrier.

This is part of management's contingency measures to minimize inconveniences to passengers and ensure continuous air transport service to the provinces, PAL said in a statement. (Angle Rosales and Fel V. Maragay)

Bring Out The Dirty Laundry

The Philippine Star
Thursday, October 31, 1996
Editorial

Three weeks to go before the summit of the Asia Pacific Economic Cooperation, and Filipinos are in a frenzy — to show the world that the Philippines is not ready for such an international gathering. Every individual or group with an agenda wants to hold the nation hostage by threatening to disrupt the APEC summit during the two-day leaders' gathering. All manner of clotheslines are out, ready to welcome the APEC visitors with the nation's dirty laundry. It's as if the nation wants to know why all those world leaders, foreign delegates and journalists are coming to this unworthy, rotten nation where a human rights violator and opportunist pig lurks in every sleazy corner.

There's the usual bunch of lowlifes creating trouble, kidnapping for profit or robbing banks. But at least this bunch has consistency and doesn't care too much about timing. You know they'll strike with or without APEC, whoever's in power and whatever Jaime Cardinal Sin, Mike Velarde or any Islamic leader has to say. There are the usual incompetents in government, who waited until the eleventh hour to start demolishing squatter shanties that have invaded public parks and private property and clogged up Metro Manila's waterways. Thus were critics given fodder to accuse the administration of violating human rights simply to make the nation pretty for a two-day summit.

There's the group that wants to use APEC to dramatize the problem of East Timor — as if the Nobel Peace Prizes awarded to Bishop Carlos Filipe Ximenes Belo and Jose Ramos-Horta hadn't highlighted the problem enough. It's this country's fate that its first major international event is being used to dramatize the world's waffling on a people's movement for freedom. At least Belo, who by most accounts doesn't hold Horta in high regard, has said he plans to stay home during the APEC summit.

As if these weren't enough, the workers' union of Philippine Airlines has threatened to stage a strike before APEC. Since the flag carrier is in charge of ground handling operations at the airport, a strike could seriously disrupt international flights. A wildcat strike, as far as the PAL union is concerned, should be a wonderful welcome for the APEC visitors. What better way to tell the world that the Philippines is about to go out of business?

This is not the end of the story: an alliance of 1,400 unions, including those at the Manila Electric Co. and the Philippine Long Distance Telephone Co., have expressed support for the planned wild-cat strike. When power rates are going up and you can't get a line without static when calling even within Metro Manila, what does the public have to say about this?

Of course the workers may have legitimate grievances; in this Third World country, 97 percent of the population feels overworked and underpaid. But only a few resort to national blackmail to get what they want. From the looks of it, the nation hasn't seen the last of the dirty laundry.

The PAL Dispute, The DOLE's Drift

The Manila Times
Thursday, October 31, 1996
Editorial

It is no secret that President Ramos is not too happy about being referee in the dispute between the union and management of Philippine Airlines, the national carrier. More than two years ago, the President was quoted as saying: "I resolved the corporate quarrel in the board and the ownership dispute, now I may end up mediating in the current internal dispute as if I'm the general manager." Having said this, the President then stepped in to end a 12-hour wildcat strike launched by members of the PAL Employees' Association, who had earlier defied a return-to-work order of the Department of Labor and Employment. The walkout forced the cancellation of 25 domestic and three international flights, and delayed several others nationwide.

The issue then was the union's demand for a three-year package of increased pay and benefits amounting to P1.6 billion.

This week, the unionized workers of PAL again threatened to go on a strike shortly before next month's Asia-Pacific Economic Conference, the country's coming-out party. They promised a "big" one, what with offers of support for the PAL union from the 14,500-strong union of the Philippine Long Distance Telephone Company and the 8,000-strong union of the Manila Electric Company. They also expressed a wish for President Ramos to enter the picture again—before the strike breaks out.

Yesterday at 6 p.m., the union proved that it means what it says when it threatens to mount a strike.

The dispute at PAL seems to be symptomatic of a bigger problem at the labor department.

Conciliation meetings between the management and union of PAL were still ongoing when Labor Secretary Leonardo Quisumbing issued his first assumption order last Oct. 18. To people familiar with how labor disputes are negotiated, the order smacks of a sense of betrayal. The move is similar to the recent demolition or squatter shanties in Paco, which was undertaken while representatives of the urban poor communities were still negotiating with the President in Malacañang, asking for a reprieve in the absence of relocation sites. The demolition was temporarily stopped by no less than the President. Not surprisingly, PAL unionized workers want the President to sit down with them again to discuss their problem with management.

For several months now, stories from the labor beat have been less than inspiring. More and more business establishments are reportedly violating the Labor Code and technical safety standards. Job site accidents are said to be on the rise. And let's not forget the return of overseas contract workers inside boxes, an almost common occurrence despite the lessons the government is supposed to have learned after Flor Contemplation. Worst of all, many management and labor parties locked in dispute are finding it more difficult to keep faith in the competence and integrity of the senior officials, mediators and arbiters of the DOLE.

What ails the labor department, Mr. Secretary?

The Palace is DOLE?

The labor unrest at PAL is something which should be adequately handled at the DOLE's level, but can we blame the workers for seeking the intercession of the President, who has his hands full with more pressing problems?

Malacañang itself has seen it fit to intervene, and speak for DOLE. Last Tuesday, it issued a press release announcing that DOLE has "shelved its order reinstating some 1,500 striking employees of Temic Telefunken Microelectronics (Phils.) Inc."

The PR stated that DOLE Acting Secretary Cresenciano B. Trajano said "his office has yet to finalize the mechanics of the full implementation of the writ of execution dated June 27, 1996, ordering the reinstatement of the employees." The firm had filed a motion to quash the writ, but this was denied by DOLE in a ruling on Oct. 17, "for lack of merit."

Twelve days later, the decision affirmed in at least two DOLE rulings was revoked by the acting DOLE Secretary, according to the Malacañang press release.

What ails the labor department, Mr. Secretary?

PAL Offers P477-M Shares to Employees, Unions

Isyu
Thursday, October 31, 1996
Money

PHILIPPINE Airlines has announced the offering of company stocks, worth P477 million, to its employees in fulfillment of an earlier commitment to make them part-owners of the company.

The stock offering is also considered to partially meet the cash components of economic benefits being demanded by the three unions in PAL under separate collective bargaining agreements with the management.

Jose Antonio Garcia, PAL President and Chief Operating Officer, told a press conference at the PAL executive offices at Allied Bank Center in Makati that the unsubscribed shares will be made available to employees and the union at P5 per share.

He said management could only offer these shares at this time due to the previously unresolved shareholders representation issue. A recent favorable development for the stock offering was the waiver by government financial institutions with minority interests in PAL of their right to subscribe to the new PAL shares. The airline's stockholders during the last annual meeting unanimously approved the increase in capitalization from P5 billion to P10 billion. This paved the way for the Lucio Tan group to be the controlling shareholders of PAL.

Garcia said the PAL Board of Directors agreed to the stock offering to partially defray the cost of labor demands for more benefits in spite of company losses.

In particular, the stock offering is an effort by PAL management to address the demands of the PAL Employees' Association (Palea) and the two other unions—Airline Pilots Association of the Philippines (Alpap) and Flight Attendants and Stewards Association of the Philippines (Fasap).

Palea's demand amounts to an additional P3.2 billion over a two-year period. Palea has threatened to strike unless their demands are met.

The strike threat was posed despite stern warning from the Department of Labor and Employment (DOLE) in two assumption orders issued on October 18 and 24, enjoining the union to cease and desist from committing any acts that will exacerbate the situation.

The DOLE'S National Conciliation and Mediation Board considered the new issues raised by Palea as mere grievances that can be resolved under the grievance machinery of the CBA.

Garcia explained that when Palea filed a Notice of Strike on October 4, the issue strayed from the CBA and shifted instead to the position of the 40 union officers dismissed by management for leading a wild-cat strike in 1994, declared illegal by the DOLE.

Although dismissed from the company, the 40 unionists still wield strong influence on the union and union policies by their majority in the 21-member Palea board.

Their position, along with those of 141 unionists temporarily reinstated, is pending before the Supreme Court.

Wednesday, October 30, 1996

PAL Workers Plan to Strike Before APEC Summit

The Asian Wall Street Journal
Wednesday, October 30, 1996
An ASIAN WALL STREET JOURNAL Roundup

MANILA — Philippine Airlines workers will defy a government order and stage a wildcat strike shortly before a summit of 18 Asian-Pacific leaders next month, union officials said.

An alliance of 1,400 unions, including those at Manila Electric Co. and Philippine Long Distance Telephone Co., said they will support the PAL strike.

A strike at the national flag carrier during the Asia-Pacific Economic Cooperation summit could seriously undermine the government's efforts to showcase the Philippines as a newly attractive investment location.

Alexander Barrientos, President of the 9,000-strong PAL Employees' Association, said the union decided to strike because management is hiring contractual workers instead of regular employees.

PAL corporate secretary Antonio Ocampo said management regrets the union's strike decision and will prepare plans to minimize its impact. He said PAL will reduce flights to areas where other airlines are available and redirect them to areas where PAL is the only carrier.

PAL workers urged President Fidel Ramos to intervene in the dispute to avert the strike before the APEC summit.

"We are pleading for ... your timely intervention to douse the fuming anger of our members, which (we) strongly feel might trigger a timely mass action," the three PAL unions said in a letter to Mr. Ramos.

On Oct. 4, the PALEA filed a strike notice with the Labor Department. Two other PAL unions representing pilots and flight attendants had filed strike notices earlier.

Tuesday, October 29, 1996

PAL Board Okays Plan to Sell 95 Million Shares to Employees

Business World
Tuesday, October 29, 1996
By LARINA G. PEREZ, Senior Reporter

The Philippine Airlines (PAL) board of directors has agreed to offer 95 million shares of the airline worth P477 million to its employees now that the ownership squabble among its stockholders has been resolved.

Industry observers see this move as the management's way of meeting the demands of its union for additional compensation.

In a press conference yesterday, Jose Antonio Garcia, PAL President and Chief Operating Officer, said the shares will be made available to employees at P5 per share.

The 95 million unsubscribed shares account for about 4.75% of PAL's total capital stock. The stockholders of the airline agreed to increase its capital stock from one billion shares to two billion in a meeting last September 10.

Sources at PAL told Business World the airline's board of directors approved the offering of the shares to its employees in previous board meetings even before the infighting among its owners intensified.

However, Mr. Garcia said management could not offer the shares while the ownership issue was still unresolved.

WAIVING OF RIGHTS

The 95 million shares will be offered to airline employees after the Bank of the Philippine Islands (BPI) of the Ayala group waived its rights to subscribe to the additional PAL shares.

However, seven stockholders of Cumulus Holdings Corp., also of the Ayala group, have subscribed about 28 million shares of the airline's capital stock.

The stockholders of PAL have agreed that if any of the members of Ayala group waived its preemptive rights to subscribe to additional PAL shares, the government financial institutions (GFIs) with interests in the airline will have the first crack at taking up those shares.

The GFIs are the Development Bank of the Philippines, Philippine National Bank, Armed Forces of the Philippines-Retirement Separation and Benefits System, Land Bank of the Philippines and the Government Service Insurance System.

However, the proposal to offer the shares to the employees came from the government itself. The GFIs earlier agreed to waive their preemptive rights to subscribe to additional PAL shares in favor of the Lucio Tan group. With the government's waiver, Mr. Tan now controls 56.66% of PAL.

But if the employees fail to avail of the offer, Mr. Tan's group will be given the right to subscribe to the additional PAL shares.

PAL Ok's Sale of Shares to Employees

Business World
Tuesday, October 29, 1996

The board of directors of Philippine Airlines (PAL) has agreed to offer 95 million shares of the airline worth P477 million to its employees now that the ownership squabble among its stockholders has been resolved. Industry observers see this move as management's way of meeting the demands of its union for additional compensation. In a press conference yesterday, Jose Antonio Garcia, PAL President and Chief Operating Officer, said the shares will be made available to employees at P5 per share.

Thursday, October 24, 1996

PAL Warns Union vs. Disrupting Operations

Sun Star Daily
Thursday, October 24, 1996

THE management of Philippine Airlines (PAL) yesterday warned airline union members against participating in activities that would disrupt PAL's operations while the labor dispute with the ground personnel continues.

In a press statement, PAL also assured that contingency measures are being implemented to avoid inconvenience to passengers.

PAL said union members who would participate in any illegal activities may face disciplinary action or dismissal.

PAL said "misinformed" counsel have advised union members that a strike could be legally staged based on new issues raised by the PAL Employees' Association (Palea).

The labor dispute is now under the jurisdiction of the Department of Labor and Employment (Dole) after a dead-lock in CBA negotiations. PR

Sunday, October 20, 1996

Labor Boss Prohibits PAL Worker's Strike

The Freeman
Sunday, October 20, 1996
By MILDRED V. GALARPE
Staff Member

THE Office of the Secretary of Labor and Employment has assumed jurisdiction over the labor dispute between the Philippine Airlines and the Philippine Airlines Employees' Association.

This came after PAL already invoked the assumptive powers of the Office of the Secretary of Labor and Employment over the labor dispute with PALEA.

The assumption of DOLE on the case means that any strike or lockout, actual or imminent is now a prohibited activity. Labor Secretary Leonardo Quisumbing in his order dated October 18, 1996, said.

The parties are strictly enjoined to cease and desist from committing any acts that will exacerbate the situation.

The secretary said that a work stoppage at PAL, at a time when the country is busy with the preparation for the upcoming Asia-Pacific Economic Conference and with APEC conferences already going on will certainly cause international embarrassment to the country.

At the same time, a work stoppage will adversely affect economically other business entities whose activities are closely intertwined with PAL.

But above all, disruption of the operations of PAL will unduly deprive the government of the much needed revenues to fund critical development projects.

A work stoppage. Quisumbing said, will also affect the economic viability of PAL which has already been suffering from financial losses during the past few years and not just this, it will also cause serious financial hardships on its 1,400 employees and their dependents whose source of livelihood is now at risk.

Quisumbing said that to expedite the resolution of the dispute, the parties are directed to submit their position papers and other pertinent and material document to his office within ten days.

PALEA has accused PAL of unfair labor practice such as check-off shortage, delay in the check-off remittance, threats of sanctions to officers and members, discrimination in granting increase to flight dispatchers and etc.

They filed on October 4. 1996 a Notice of Strike with the National Conciliation and Mediation Board and in the conferences conducted on October 10, 15 and 18, no settlement was reached.

PALEA members earlier conducted a strike vote in October 15 and submitted the results to the NCMB, National Capital Region. A strike at PAL is imminent.

Quisumbing said that the national government has a substantial equity at PAL and aside from that, it is the country's flag-carrier, and a great deal of commercial and industrial trade, domestic and international is dependent upon its continued and unhampered operation.