Wednesday, August 18, 2010

No end to PAL row in sight

Wednesday, 18 August 2010 00:00
BY DARWIN G. AMOJELAR SENIOR REPORTER
THE MANILA TIMES

The second round of negotiations between the management and cabin crew of Philippine Airlines (PAL) to solve a labor dispute in the flag-carrier ended without any agreement reached on Tuesday. The outcome of the talks, according to Andy Ortega, the vice president of Flight Attendants and Stewards Association of the Philippines (Fasap), made them withdraw from future negotiations.

“We cant accept the ‘take it or leave it’ approach of the carrier,” he said.

According to Ortega, Fasap is set to file a notice of strike next week before the National Conciliation Management Board.

He said that all flight attendants will join the strike that could paralyze operations of PAL even if the flag-carrier will use its administrative staff to cover for the strikers.

PAL earlier said that it would deploy its administrative staff and other personnel to help in case of strikes and other emergencies.

It also would transfer its passengers to its domestic and international interline partners.

PAL has a total of 134 interline partners—12 airlines in Southeast Asia, 11 in the United States and Canada, 25 in Europe, 12 in the Middle East, three in Japan and 10 in China.

Ortega, however, warned that PAL would not be able to fill up the slots of the 1,600 flight attendants who will join the strike.

“I don’t think they can assure that there will be no PAL passengers who will be displaced,” he said.
In a statement, PAL said that there were no “significant breakthroughs” in Tuesday’s meeting.

No change
During the meeting, the flag-carrier maintained its P80-million offer to the cabin crew union, saying that the company cannot give more because of its current financial difficulties.

PAL management also insisted on limiting talks to the economic aspect of the Collective Bargaining Agreement (CBA) to put closure to its 2005 to 2010 agreements with Fasap.

The flag-carrier wants the early retirement issue to be discussed during the next CBA covering the years 2010 to 2015. It is not until 2018 that the early retirement provision will affect any cabin crew.

Jaime Bautista, the president of PAL, was unable to attend the conciliation meeting at the National Conciliation and Mediation Board since he was not feeling well.

PAL was represented by its lawyers and some executives from the Human Resources Department.

Ortega said that Fasap will no longer sign any CBA unless the issue on retirement age is resolved.

PAL flight attendants’ compulsory retirement age is as early as 40 years old compared to other employees who are allowed to work until they are 65, while pilots should retire by age 60.

Ortega said that Fasap is still open to meeting with them if they address the issue on retirement age and if the flag-carrier raises its offer.

On the early retirement age issue, PAL said that the company should not take the blame for a CBA provision that Fasap leaders had approved.

Officers of the cabin crew union signed the CBA containing the provision setting an early retirement age three times.

The flag-carrier is struggling from the abrupt departure last month of 25 pilots for higher-paying jobs abroad.

PAL recorded a net loss of $14.3 million in its previous fiscal year to March 2010.

The pilot shortage, which remains unresolved, caused PAL to axe some flights.

President Benigno Aquino 3rd’s spokesman said that the government would remain involved in efforts to head off the strike.
WITH REPORT FROM AFP

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