Strike at PAL Ends

The Philippines

Sunday, November 3, 1996

By MAYEN JAYMALIN AND NIXON KUA

Employees at the Philippine Airlines (PAL) ended yesterday their four-day strike after airline officials agreed on the union's demands on issues regarding hiring and collective bargaining negotiations.

The agreement was signed at the Department of Labor and Employment after hours of intense negotiations at an undisclosed hotel in Manila.

The PAL Employees' Association (PALEA), which represents 9,000 ground personnel and mechanics, struck early Wednesday night over alleged union-busting activities by the management and a deadlock in collective bargaining negotiations.

The workers said one of their grievances is the hiring of contractual workers to do union work, thus undermining the union.

PAL has tried to reduce its financial losses by creating spin-off companies to replace regular workers in catering, maintenance, cargo and engine overhaul operations.

Under the agreement, PAL said it will not contract jobs performed by regular workers. It also promised to consult the union before implementing any corporate reorganization or spin-offs necessary for the viability of the airline.

PAL also promised to present its counter proposals to the union's proposed collective bargaining agreement and start negotiations with PALEA, the Airline Pilots' Association of the Philippines (ALPAP) and the Flight Attendants' and Stewards' Association of the Philippines (FASAP).

There has been no collective bargaining agreement with these unions for one year.

The airline company also said it will not impose any sanctions against the workers who joined the strike.

In return for the pledges, the union agreed to immediately end the strike and normalize operations today.

Meanwhile, airline officials said the company lost an estimated P100 million due to the four-day strike, while millions of pesos more were believed wasted when irate passengers demanded refunds of their travel and airport taxes.

Manuel Panlilio, PAL Vice President for Airport Services, said most of the losses came from rebooking passengers, meals and hotel accommodations of stranded passengers.

Grounded airplanes also accounted for the losses. "Since these aircraft are not flying, we consider it as a loss," he said.

PAL canceled at least 30 international flights and some 100 domestic flights because of the work stoppage.

The strike only elicited negative remarks from passengers and airport employees.

"If your government wants to entice us to invest in your country, then you must make sure there is industrial peace. Not like this," said Lee Chok Chan, a Singaporean businessman who had to wait for two hours before boarding a PAL plane to Seoul. He had to wait for another three hours just to retrieve his baggage.

Lawyer Rodolfo Buendia, Deputy Customs Collector for Passenger Services at the Ninoy Aquino International Airport, said the strike was "ill-timed."

"Why did they stage a strike at a time when the nation was observing All Saints' Day and so close to the APEC summit?" he asked. "They must not hold the country hostage."

Employees have been picketing PAL offices since Monday last week, capping it with a wildcat strike last Wednesday night that stretched until yesterday afternoon.

The 9,000-strong PALEA said they were forced to stage a strike after PAL management failed to give them salary increases and other benefits since 1991.

Among their demands are a P5,000-monthly increase retroactive since 1991, a Christmas bonus amounting to 150 percent of their basic salary, a mid-year bonus amounting to their basic salary, increase in overtime rates from 35.5 percent to 50 percent.

PALEA is also asking to increase the number of their leaves such as menstrual leave, matrimonial leave, family leave, parental leave and union anniversary leave. This would total to an average of two months leave annually, the PAL management said.

The union also wants a retirement plan that would involve a lifetime allocation of one sack of rice, eight free tickets a year, hospitalization and medical services, professional fees, medicine and a monthly pension of P4,000.

Besides these, the workers want an educational loan, a so-called attendance incentive, free shuttle bus, a month's vacation leave, a day care center, housing and a car loan.

PAL management said that such benefits were unreasonable, considering the airline company's bleak financial performance during the past 10 years.

It said it is losing an average of P1 billion annually.

The management added that the workers are already getting most of what they have been asking for.

Labor Secretary Leonardo Quisumbing appealed earlier to the strikers to return to work.

"The public interest is paramount," he said. "For the benefit of the public, let us return to normal."

Labor Undersecretary Cresencio Trajano said earlier that the strike would put the country "in a bad light in the global community" as it prepares to host the fourth summit of the 18-nation Asia-Pacific Economic Cooperation this month.

PAL warned earlier it would dismiss all striking employees if they did not return to work by yesterday, but no termination orders were immediately issued. — With wire reports

Constantino admits meeting Lagman

The chairman of the left-leaning Sanlakas admitted having met Felimon "Popoy" Lagman, alleged chieftain of the communist urban hit squad Alex Boncayao Brigade (ABB), at a resort in Laguna prior to the PAL strike.

"In fact, contrary to the assertion of the intelligence community of the military, I did not merely attend that 'meeting,' I presided over it," said Renato Constantino, Chairman of Sanlakas.

But he said that the meeting was the first national congress of Sanlakas held at the Batu-Bato Resort in Calamba.

"And yes, Mr. Lagman was there as the Chairman of the Bukluran ng Manggagawang Pilipino (BMP), which is one of the organizations affiliated with Sanlakas," he said, adding that other personalities were there including Reps. Wigberto Taňada of Quezon and Edcel Lagman of Albay.

Police and military intelligence officials reported earlier that local leftist groups were behind the strike at PAL, adding that the union has already been infiltrated by such groups.

Sources said PALEA is affiliated with the Buklurang Manggagawang Pilipino (BMP), an umbrella organization of trade unions organized by Lagman.

Lagman was allegedly the Chief of the ABB, which killed some 200 military and police officers in the 1980s.

A police source said the PAL strike was aimed at embarrassing the government before the eyes of foreign leaders who will be attending the APEC summit this month.

“If we, the leftists referred to by 'intelligence sources,' were out to embarrass the government before the APEC community, would it not have been more 'appropriate' for the PALEA strike to called much closer to the APEC summit?" Constantino asked.

An intelligence report said the PAL strike was allegedly hatched during a meeting between union leaders and Lagman at a resort in Los Baňos, Laguna.

Others who also attended the meeting were Renato Constantino, President of Sanlakas, and Nilo de la Cruz, whom intelligence officers claimed is Sergio Romero — the Chief of the ABB.

"Our registration shows no such name nor was anyone by that name recognized as delegate, observer or guest,” Constantino said."If indeed, as the military's intelligence sources insist, the alleged ABB chief attended that 'meeting,' then these officers are terribly amiss in their duties.

They should have right there and then arrested the man."

Sanlakas, a cause-oriented group, and several people's organizations have announced to conduct a series of rallies during the APEC meeting starting on Nov. 21.

Sources at the APEC secretariat on security and intelligence said earlier that Lagman and his group are planning to disrupt the APEC summit.

But Lagman, through APEC National Organizing Committee Chairman Retired AFP Chief Gen. Lisandro Abadia, denied such a report.

"No amount of innuendos and lies will substitute for the truth nor dissuade us from working for causes that we believe are just," Constantino said.