PALEA Loses Support of 2 Large Labor Groups

Manila Standard
Sunday September 13, 1998
By Angie Rosales

Two of the country’s largest labor groups yesterday withdrew their support for the employees’ union of Philippine Airlines (PAL) after the union agreed to suspend its collective bargaining agreement (CBA) for 10 years in exchange for 20-percent ownership of the company.

Filemon “Popoy” Lagman, Chairman of the militant Bukluran ng mga Manggagawang Pilipino (BMP) denounced as a “sell-out” the agreement entered into by PAL Employees’ Association (PALEA) president Alexander Barrientos with the airline management.

The moderate Trade Union Congress of Philippines (TUCP) also virtually recalled support for the union, saying “the ball is now in the hands of the employees’ organization.”

“We have always been supportive of PALEA’s just struggles for workers’ rights and welfare but this time we dissociate ourselves from the decision of 12 of its leaders, including its president,” Lagman said in a statement.

Union-busting

Lagman said the 10-year suspension of the workers’ CBA was tantamount to busting the union which currently holds less than half of its original members. PALEA lost more than 4,000 members to retrenchment that began in June.

On Friday, taipan Lucio Tan, PAL Chairman and majority owner, agreed to give 20-percent ownership of the company to its employees as part of the deal. Under the proposed agreement, employees will also get three seats on the airline’s 15-member board of directors.

Each employee will receive 60,000 shares of stock worth P300,000 from the Tan group’s shareholdings in PAL. However, they will not be allowed to dispose of or sell their shares until their retirement.

“I don’t think the three seats in the 15-member board ensure them (PALEA) proper representation, especially in issues concerning employees,” TUCP spokesman Alexander Hilario Aguilar said.

Infighting

PALEA insiders admitted there has been infighting among its leaders, saying some union officials as well as the members were not consulted by the signatories in the agreement.

The marathon meetings, sources said, were brokered by some labor leaders associated with BMP, leaving Lagman in the dark.

“This is union-busting in its crudest and most cruel form. To deny the workers their means of subsistence to force them to surrender their rights is not only illegal but immoral,” Lagman said.

BMP leaders pointed out the current financial crisis that affected PAL’s operations was not an excuse to deny workers of their right to organize and waive their job security and just compensation.

Study

The TUCP did not categorically say it disagreed with PALEA, but said it will study whether or not it will support future undertakings of the union.

“We haven’t seen the agreement. We do not know the content of the agreement at this point,” Aguilar said.

The TUCP and BMP openly supported PALEA when it decided to stage a strike in June, only weeks after the Airline Pilots Association of the Philippines (ALPAP) crippled the airline with a similar strike.

“The contents of the CBA are subjected to negotiations but the right to collective bargaining is non-negotiable. Those who trade for union rights should be ousted from their positions for conduct unbecoming of union leaders,” Lagman said.

Tentative accord

Meanwhile, PALEA members must ratify a tentative accord to save the ailing airline, Barrientos said.

A majority of the 21 board members of PALEA which represented ground crew workers have voted to accept the proposal.

Barrientos said the agreement would have to be ratified by a majority of his union members in a vote next week.

“Employees would take the risk of letting PAL survive by supporting the programs of the company,” he said in explaining why union leaders accepted the offer.

Assurance

He said company officials assured them their union would still be recognized, but he warned Tan not to trick them.

The airline said last week it lost P2.2 billion in the first quarter of the fiscal year beginning April 1, mainly because of work stoppages.

The airline said its losses also rose because of soaring dollar-denominated payments and continuing lease payments on unused planes which have not yet been returned.

In the previous fiscal year, the carrier reported a loss of P8.08 billion.

Debt restructuring

PAL is seeking to restructure its debts and has obtained permission to suspend payments to domestic and international creditors amounting to $2.1 billion while it prepares a rehabilitation plan. The plan includes the disposal of most of the airline’s planes and a sharp reduction of flights.

The suspension of the collective bargaining agreement was also a key condition required by the airline’s creditors, PAL said.       -With AP