PAL Submits Stock, Wage Offer To Union... But Union Finds It Still Far From Expected'

Business World
November 7, 1996
By Esther C. Tanquintic
Reporter

It seems the Philippine Airlines, Inc. (PAL) labor problems are far from over.

The PAL management submitted last Tuesday a counterproposal to the PAL Employees' Association's (PALEA) P3.2-billion demand in its proposed new collective bargaining agreement (CBA).

However, management's offer is "still far from the expected bargaining," the union said.

PAL's two-page package proposal offers a total increase of P1,000 spread over five years on the monthly base salary of each PALEA worker.

Management also listed the offering of P2,000 worth of PAL shares valued at P5 per share for the first two years of the CBA.

PALEA president Alex Barrientos said the union "still has to study" management's offer. Mr. Barrientos is particularly wary on management's five-year offer.

The current batch of PALEA officers is expected to step down from office in October 1997 unless a certification of elections is conducted to oust Mr. Barrientos from the leadership.

However, industry sources told Business World PALEA may still opt to finalize the five-year package and forge a new CBA with management.

Sources explained whatever economic package stipulated under the new CBA would surely be negotiated since it is expected PAL's economic condition would already be stable by the time a new batch of officers steps in at PALEA.

But sources advised PALEA it should not accept management's stock offering because PAL stocks are "not actively traded in the market."

"It would be double jeopardy on their part once they acceded to the stock offer... what the members need are genuine money," sources said.

Specifically, PAL's counter-offer to PALEA are the following:

• for the 1st year — P1,000 worth of PAL shares of stock valued at P5 per share instead of PAL's acquisition cost of P14 per share or the equivalent of 200 shares of stock in PAL;
• 2nd year — P1,000 worth of PAL shares of stock value at P5 per share instead of PAL's acquisition cost of P14 per share or the equivalent of 200 shares of stock in PAL and a P100 increase on the monthly base pay of each covered employee;
• 3rd year — P200 increase on the monthly base pay of each covered employee;
• 4th year — P300 increase on the monthly base pay of each covered employee; and
• 5th year — P400 increase on the monthly base pay of each covered employee.