'Asia's Sunniest' to Shine Anew?

The Negros Chronicle

Tuesday, September 29, 1998

The Philippine Airlines is expected to again fly the friendly skies on Wednesday, after its management and labor union finally came to an agreement to save the company.

This was announced by President Estrada in a press briefing called at the Main Conference Room of Malacañang as he welcomed the decision of the PAL Employees' Association (PALEA) to accept the offer of PAL Chairman Lucio Tan of 60,000 shares of stock for each worker. In exchange for a 10-year suspension in the collective bargaining agreement.

PALEA submitted to President Estrada a letter appealing for the reopening of PAL “in the interest, not only of the thousand employees of PAL who are presently out of jobs, but for the greater interest of the Filipino nation.

"To assure investors and creditors of industrial peace, PALEA agrees, subject to the ratification by the general membership the suspension of the PAL-PALEA CBA for a period of 10 years, provided safeguards are in place,” the letter stated.

The ratification is set to be called on Wednesday during general meeting with the members of the union, where a document is expected to be passed around for their signature signifying their approval of the move to accept the Tan offer.

The letter asking for the President's intercession in the PAL problem was signed by PALEA President Alexander Barrientos, PALEA Vice-President Garardo Rivera and board members Pablito Arcilla, Marlon Balanquit, Jaime Bautista, Paulino Hernandez, Jose Arcadio Relova, Dennis Aranas, Romeo Sauler and Noel Tria.

Back-tracking on their earlier decision not to accept the Tan offer, PALEA officers said, "We are amenable to the following, subject ratification of the general noted membership," which include the decisions by PAL management to remove 3,000 of the 8,000 employees through voluntary retirement.

This was how Executive Secretary Ronald Zamora interpreted the condition cited by PALEA who noted that the airline “shall grant the benefits under the 26 July 1998 Memorandum of agreement forged by and between PAL and PALEA to those employees who may opt to retire or be separated from the company,’’

Zamora, in the same press briefing, said PAL may resume with a reduced workforce of just 5,000, or it can retain its present size of 8,000 depending on the decision of the management.

President Estrada said the agreement between PAL and PALEA will be maintained, even if foreign investors come in to infuse more capital in the airline to sustain its operations and the airline to sustain its operation and prevent its collapse.

Among the two airlines which are expected to come as new investors in PAL are Cathay Pacific and Northwest Airline, President Estrada said. The Chief Executive visions limiting the ownership of the individual to just 40 percent of the Philippine companies will have to be maintained with the entry of PAL investors.