Employes' Referendum Key to PAL Reopening

People's Journal

Saturday, September 19, 1998

THE STANDOFF at Philippine Airlines could only be resolved of the PAL Employees’ Association itself conducts a referendum among its members on whether it wouold accept the terms earlier by the airline management.

This was revealed yesterday by Finance Secretary Edgardo Espiritu, head of an interagency task force on PAL’s rehabilitation.

“It looks like it’s going to be very difficult to reopen what has already been approved by the PALEA board of directors previous to the reversal, in the sense that this has been already discussed and presented to the creditor banks as well as to prospective investors,” Espiritu.said.

But early last night, Executive Secretary Ronaldo Zamora said PALEA sent a letter to President Estrada, formalizing their rejection of the proposed referendum, saying they would rather renegotiate.

"I dont think there is a deadlock to speak of. I don't think there is anything to discuss. We are doing extraordinary. It's not a question of government giving up," Zamora said.

To revert to what has been previously agreed upon by the management and the union leaders, according to Espiritu, would be very "difficult and embarrassing for the management".

What was only left to save the country's flag carrier from total closure, he said, is the union members to approve the stock operation plan through a referendum.

He said if the plan is rejected in the referendum, the government has no option but to allow to proceed with closure proceedings.   

He admitted that PAL closure would have a "very serious” consequence to the country’s economy.

President Estrada, on the other hand, remains optimistic that the impasse at PAL would be resolved before its planned September 23 closure.

The President talked with PAL chairman Luclo Tan over the phone Thursday night after meeting with union leaden.   

Mr. Estrada said Tan told him that the proposal was the best he could offer given the financial difficulties PAL has been suffering.

According to him (Tan) he cannot continue bleeding. He has lost a lot. We cannot also blame him. At the same time, we are trying as much as possible to preserve PAL," Mr. Estrada said in an ambush interview at the Local Waterworks Utilities Administration office in Quezon City.

Labor Secretary Bienvenido Laguesma said efforts to revive the airline is still ongoing with both the Department of Labor and Employment and the Office of the President as mediators.

Senators are divided on proposals for the government to take over or at least infuse money to save PAL. Senate President Marcelo Fernan has warned the government against bailing out PAL, saying the government could not afford such measure at the height of the economic crisis.

Senate President Pro Tempore Blas Ople, however, said there is logic on the government’s takeover of PAL even on a temporary basis.

House Majority Leader Mar Roxas II said the airline’s closure would be disastrous for both the country and economy.

“The delivery of goods and services will be affected, and our linkages will likewise be disrupted. People will not be able to visit their relatives. The tourism industry will perish. Patients will not be flown to hospitals found in urban centers. Newspapers, supplies, and other vital products will likewise be affected,” Roxas stressed.

Bohol Rep Ernesto Herrera, former Secretary General of Trade Union Congress of the Philippines, for his part, sought government participation in the negotiations to at least, “soften the hardline position by both parties”.

The dismissed members of the Airline Pilots Association of the Philippines – the group that sparked PAL’s demise – accused Tan yesterday of “milking his own company.”

DULCE RAYMUNDO/TESS BEDICO/ANGEL GONONG/SCTORRES/JEFFREY TIANGCO/CONRADO CHING.