Saturday, December 12, 1998

Gov’t upholds PAL on cabin crew firing

Philippine Daily Inquirer
Saturday, December 12, 1998
Associated Press (PAL Media Release)

Philippine Airlines (PAL) said yesterday its decision to fire 1,400 flight attendants in July has been upheld by the government agency overseeing labor disputes.

Philippine Airlines said the National Labor Relations Commission (NLRC) agreed to its right to cut its work force, especially at a time when the airlines faces collapse because of financial difficulties following years of losses, labor strikes and the regional financial crisis.

“The free will of management to conduct its own business affairs to achieve its purpose cannot be denied,” the commission said in a document furnished to media by PAL.

A division of the commission earlier imposed an injunction order against the job cuts following a complaint from the airlines’ flight attendant union.

In June, PAL sought relief from payment of $2.1 billion in debts to cash flow problems, which it attributed to financial losses from operations and costly workers strikes.

The airline has lost money in most of the past 15 years. It posted a net loss of P8.08 billion ($205 million) in the fiscal year ended March, its biggest loss in its 57-year history.@ 

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