10-Year CBA Suspension Causes Row In PAL Union

The Manila Times
September 13, 1998
Nation

THE compromise deal forged by Philippine Airlines (PAL) with its restive labor union has hit a snag well before it could take off.  This after a union official questioned the legality of the Agreement.

PAL Employees' Association (Palea) Vice President Gerry Rivera said the agreement reached between Palea President Alex Barientos and the management for a 10-year suspension of the union’s collective bargaining agreement (CBA) was illegal.

In exchange for the CBA’s suspension, PAL would give the employees a 20-percent stake in the airline, equivalent to three board seats in PAL.  Each employee would also get 60,000 shares of the airline.

Rivera said while the stock sharing option was laudable, the moratorium on the CBA was highly questionable.

“Personally, the giving of the 60,000 shares [to the employees] is commendable, it is the first time in the history of the country,” Rivera told THE TIMES.  “But on the moratorium on the CBA, there are a lot of questions to be asked.”

“That is a violation of law,” he said.

The agreement would have to be presented to Palea members for ratification before it is put into effect.  The agreement is expected to meet stiff opposition from some officers and members of the union who felt they were not consulted by the leadership.

Sell-out

The Bukluran ng Manggagawang Pilipino, chaired by Felimon Lagman, also dissociated itself from the agreement, branding it “a sell-out” to the management. BMP had been acting as adviser of Palea officials at the beginning of the negotiations.

Calling the deal a “sell-out,” Lagman said the move was illegal, unconstitutional and had no authority from the board of the union.

“That is a mortal sin for any union.  Grabe and epekto niyan sa labor movement,” Lagman added. [The effect on the labor movement would be tremendous.]

Lagman also hinted there might have been other factors involved in the agreement, saying: “Ibang klase ang temptasyon ni (PAL chair Lucio) Tan.  Na-compromise sila.”  [Lucio Tan has ways of tempting you.  They were compromised.]  He refused to elaborate.

A no-no

The moderate Trade Union Congress of the Philippines also questioned the agreement, and called on Palea members to scrutinize every provision in the deal.

“It’s tantamount to giving up your status as a union, not having any CBA for the next 10 years,” said TUCP spokesman Alex Aguilar.  “It’s something unions should not do.  It’s the first of its kind.”

Lagman said he expects the deal to be reversed by Palea members and officials who did not take part in drafting the deal.  He said not all union leaders were present or consulted when Barrientos reached the deal with PAL Friday morning.

“Mare-reverse iyan kasi maraming Palea board members na wala doon sa negotiations,” Lagman said.  One of these is Rivera, who has been on sick leave.

Ouster?

Source in the labor movement added that there are now moves to oust Barrientos because of the questionable deal with the management.

Because of this, the source said there is also a move now to eject  Barrientos from the Katipunan ng mga Pangulo ng Unyon ng Pilipinas (KPUP), where he also sits as president.

TUCP spokesman Aguilar pointed out that Palea’s leadership has committed the union to a 10-year CBA suspension even when unions are mandated to seek the reaffirmation of its members’ support every five years.

“That (10-year moratorium) is equivalent to two certificates of election and two CBAs,” Aguilar said.

In Palea’s case, Lagman said its CBA is only good until the year 2000.  But he pointed out that the union has already tied the hands of its members to the present CBA for the next 10 years.

Lagman said the present leadership in the union cannot presume that it would still be holding jurisdiction for the next eight years.