Solon to Gov't: Take More Active Role in Saving PAL

The Philippine Star
Sunday, September 20, 1998
NEWS
By Jose Rodel Clapano

House Minority Leader Feliciano Belmonte Jr. called on the government yesterday to take a more active ride in last-ditch negotiations between the beleaguered flag carrier Philippine Airlines and its workers to present PAL from closing shop.

“The government cannot simply allow PAL to close down. There is no question that PAL’s closure will be incalculably sad, particularly to the economy," Belmonte said, as he scored government’s laid-back attitude to the protracted dispute between PAI. management and labor.

This developed as President Estrada advised the PAL Employees' Association (PALEA) yesterday to accept the offer of PAL management in order to keep Asia's oldest airline operating.

Saying he was not taking sides in the dispute, Mr. Estrada said the only way out of PAL's scheduled closure on Sept. 23 would be for the workers to accept the 10-year moratorium on their collective bargaining agreement in exchange for shares in PAL.

Belmonte urged the Estrada administration yesterday to intervene in the controversy which, he says, has gotten too personal.

“The fight between Lucio Tan and PAL workers is getting too personal already. But I believe there is still room for accommodation between both parties,” Belmonte said.

Negros Oriental Rep. Herminio Teves, for his part, said the national government could tap another airline company, local or foreign, to temporarily operate PAL while efforts to revive the flag carrier are under way.

The government, as part owner of PAL and as part of its state powers, could take over the operations of the airline to ensure that the riding public will continuously be served and that airline-dependent businesses are not adversely affected," Teves said.

Teves, however, doubted if any local player could take the place of PAL since most airlines don't have a sufficient number of planes to service foreign and domestic routes.

He said aside from the chaos that the closure of PAL will cause to local business, the country's bid to improve its tourism industry will also be greatly affected.

Meanwhile, President Estrada admitted over radio station DzRH yesterday that he failed to meet Friday with Tan, who apparently has been making himself scarce.

"We will see him but he seems nowhere to be found. I have asked people to locate him because he is apparently missing," the President said.

Tan sent his three lawyers to the meeting at the Palace, where PALEA's counteroffer was discussed with Executive Secretary Ronaldo Zamora. PALEA has held firm in its stance against the 10-year CBA moratorium but said it was willing to renegotiate.

The President also brushed aside arguments by lawyers and representatives of PALEA that a 10-year suspension of the CBA is illegal per se.

“If there is already an agreement, what more is there to be illegal? That is why I appeal to the labor unions for them to please agree (to the PAL management offer) because it is not only them who will be affected, but our entire country;" Mr. Estrada said.

The President pointed out that government has already done its best to convince both PAL management and labor unions to arrive at a mutually acceptable agreement and the next move must be made by both parties.

PAL management has offered workers 20 percent equity, three seats on the board, salary adjustments and medical benefits in exchange for the 10-year suspension of the CBA.

The President pointed out that creditors and investors of the financially-troubled airline will accept nothing less than a 10-year CBA suspension as originally presented and approved by PAL management as it seeks a bailout from them.

Foreign investors are not used to labor strikes. Of course, any investors putting in billions in investments will make sure of profitable returns for their capital," he said.

President Estrada renewed his appeal after earlier meeting PALEA union leaders led by President Alex Barrientos last Friday at his Greenhills residence in San Juan.

"My appeal especially to the labor unions is to please meet on a middle ground on how to refloat PAL and continue with their jobs. I am not siding with anyone hut we have explained to each other the situation," he added.

Executive Secretary Zamora stressed that PAL management, contrary to what PALEA believes, is not bluffing on the planned closure next Wednesday at midnight. A government task force confirmed P20-billion losses for PAL after going through the airlines' financial books.

"I think management is not changing its mind about the closure on Wednesday," Zamora said. "We're trying to get them back to the negotiating table but nobody wants to get back and sit down again."

But a high-level labor official told The STAR yesterday the situation may yet be saved, saying a meeting between PAL management and union officials is scheduled to take place at the Department of Labor and Employment offices today.

Labor Secretary Bienvenido Laguesma and other DOLE officials will mediate the talks involving PAL Executive Vice President Manolo Aquino, Atty. Jose Blanco, Flight Attendants and Stewards Association of the Phils. President Bob Anduiza and PALEA's Barrientos.

"We cannot afford to sit back and relax and let PAL close shop. We have to exert effort. Anyway, we still have time until Wednesday," said the labor official, who expressed optimism that PAL closure's could still he averted.

Meanwhile, the Department of Transportation and Communications (DOTC) has assured that the grounding of Air Philippines Corp. will not aggravate the country's rapidly dwindling air travel facilities.

DOTC Undersecretary Willie Evangelista said he is expecting the airline to resume its operations before the scheduled closure on Wednesday.

"I'm confident that, if not all, a number of fleets of Air Philippines will be airborne even before the PAL shutdown," he noted.

The DOTC's Air Transportation Office (ATO) suspended Air Philippines on Thursday for failing to comply with safety standards and requirements.

The country's airline industry also suffered another blow when Grand International Airways canceled its flights Friday reportedly clue to unpaid insurance and fuel bills.

In another development, local union presidents under the Kapatiran ng mga Pangulo ng Unyon sa Filipinas (KPUP) and other independent unions gathered yesterday for an emergency meeting to map out plans to help PAL workers.

During their four-hour meeting at the Eulogio Rodriguez Institute in Manila, the union leaders expressed their support for PAL workers' rejection of Tan's offer of P300.000 worth of company shares in exchange for the CBA suspension. — With reports from Marichu Villanueva. Gina Tabonares, Sheila Crisostomo.