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