PAL, PALEA Reach Agreement

Manila Bulletin
Saturday, September 12, 1998

The Philippine Airlines management agreed yesterday to give 20 percent ownership of the company to its employees as part of a deal with the ground crew union to save the ailing airline. Under the agreement, the PAL Employees’ Association agreed to suspend its collective bargaining agreement with the management for 10 years. In a statement, the airline said the employees will be given three seats on the 15-member board of directors of the airline. Under the stock transfer, each employee will receive 60,000 shares of stock from the Tan group’s shareholdings in PAL but will not be allowed to dispose or sell their shares until their retirement, the airline said. There will also be no salary deductions, and retrenched union members who have not received separation pay will be rehired. Their medical benefits will be untouched, the airline said. (Reuter)