PAL Losing Millions As Strike Continues

Business World

Friday-Saturday, November 1-2, 1996

Philippine Airlines (PAL) is losing millions of pesos from the wildcat strike that has crippled its operations and resulted in the cancellation of international and local flights.

Although he declined to give a figure, a PAL source told Business World company losses are definitely running in the millions since several flights have already been cancelled and the company had to ask its passengers to board other airlines.

But Manolo Aquino, PAL Executive Vice-President for Administration and Services, said such losses are the least of the company's worries at the moment.

He told Business World PAL will compute its losses only after the strike. "Right now, we only want to mount as many flights as possible so as not to inconvenience our passengers."

As of 3:30 a.m. yesterday, PAL had already cancelled 28 domestic and seven international flights. Among the domestic trips cancelled were flights out of Manila to Cebu, Davao, Tacloban, Legaspi, Zamboanga, Iloilo, Dumaguete, Dipolog, Bacolod, Baguio, Laoag, Tagbilaran, Tuguegarao, Daet, Catarman, Calbayog and Surigao.

The seven cancelled international flights out of the country are those bound for Xiamen,Taipei, Fukuoka, Jakarta, Saigon, Karachi and Kaohsiung. Flights to Los Angeles, San Francisco and Europe were delayed.

PAL said all flights out of Cebu to Visayas and Mindanao using Fokker 50 and B-737 were operated as usual.

The company was trying to mount 11 international and 10 domestic flights but as of press time, there was no confirmation if these were able to leave Manila. Also, 12 international flights were expected to come in.

In a memorandum, PAL asked its striking workers to return to work not later than today lest they be deemed terminated.

"The company shall consider any employee who fails to return to work to have abandoned his position and consequently lost his employment status, giving the company the right to validly hire his replacement," PAL said.

A high-ranking Labor official told Business World PAL management will likely move for the dismissal of striking workers, starting with officers of the PAL Employees' Association of the Philippines (PALEA). He said PAL had signified its intent to file a manifestation for the dismissal of union leaders but it has not done so as of press time last night.

The company has only asked DOLE to issue a restraining order on the work stoppage. It also requested that a return-to-work order be issued.

Mr. Aquino said PAL believes the one-day notice provided by PAL to its striking workers to return to work is enough, considering it initiated the disruptions of operations.

Mr. Aquino argued the workers should not have struck since management promised to present its counter-proposal on the CBA demands of the union. The proposals were reportedly approved by PAL Chief Lucio Tan.

However, the offer was preempted by the workers' strike. "They know they risk something when they decided to leave work. They risk their employment status."

Meanwhile, despite claims of unity by the three unions of PAL, the absence of the Flight Attendants and Stewards Association of the Philippines and the Airline Pilots Association of the Philippines was evident.

PALEA appeared to be on its own when it mounted the strike even if the two other unions earlier vowed to give the ground employees support.

FASAP is reportedly not quite ready yet because it is discussing its collective bargaining agreement with management and has only four issues left unresolved.

PALEA officers said they are ready to face the consequences of their action.

"We are ready for the worst...We are ready to lose our jobs," PALEA President Alex Barrientos told Business World.

As of press time, the workers are still on the picket line while their leaders are trying to settle the issue with management. The Labor department is still conducting conciliation meetings with PAL management and PALEA.

Meanwhile, if the Executive department refuses to intervene in the PAL labor row, the Senate is willing to mediate, Senate President Ernesto Maceda said yesterday.

He said if Mr. Ramos continues to refuse to arbitrate the row, the Senate will be forced to do his job. He said together with Sen. Marcelo Fernan, Chairman of the Labor and Employment committee, and Sen. Ernesto Herrera, Finance Committee Chairman, he will mediate in the PAL dispute. — Jemileen U. Nuqui, Ronaldo F. Jabal and Esther C. Tanquintic