Thursday, 30 September 2010 00:00
BY DARWIN G AMOJELAR SENIOR REPORTER
THE MANILA TIMES
THE cabin crew union of Philippine Airlines (PAL) said that they will proceed with their planned strike by the end of October or the first week of November after the union withdrew from conciliation meetings with the airline’s management. In a statement, Bob Anduiza, president of the Flight Attendants’ and Stewards’ Association of the Philippines (Fasap) said that conciliation talks were deadlocked at the National Conciliation and Mediation Board of the Department of Labor and Employment (DOLE).
“PAL is playing games and is insisting on its unreasonable retirement age limit. They are not serious in resolving the dispute. PAL is just playing deaf and blind to the concerns of the flight attendants,” he added.
PAL urged Wednesday that the government take immediate steps to avert a planned strike by its flight attendants.
”PAL would like to assure our passengers that a strike will not happen overnight. Management is asking DOLE to immediately step in to avert the strike and protect the interests of the riding public,” Cielo Villaluna, PAL spokesman said in a statement.
President Benigno Aquino 3rd earlier stepped into the labor row and ordered the Labor department to mediate.
But on September 20, Fasap filed a notice of strike before the Labor department, citing issues such as the refusal of PAL management to bargain in good faith and age, gender and salary increase discrimination issues.
Anduiza said PAL’s proposals to move the retirement age from 40 to 45 on condition on drastic work-rule changes to mix the domestic and international operations will result to retrenchment of the airline’s workers and mega-profits for PAL.
The airline earlier requested that its domestic cabin crew will be allowed to fly in international destinations to experience flying abroad, and to earn more in terms of per diems and other allowances.
Anduiza also said that PAL is refusing to correct the minimum wage levels on the flight attendants’ basic salaries.
“It clearly showed that the PAL flight attendants’ entry level pay of P8,605 is way, way below the present P12, 288 minimum wage.” he said.
Anduiza said the union finds no more need to meet with PAL and will now concentrate on preparing for the strike.
“PAL misses the point. This is not about making money. This dispute is about discrimination. The Philippine Commission on Women has already pronounced that PAL’s policy towards its female flight attendants is discriminatory. The Commission on Human Rights chair, Ms. Etta Rosales, has also pointed out that PAL’s retirement, pregnancy and maternity provisions for flight attendants are sexist and discriminatory, in violation of their human rights,” he added.
Surprised by strike decision
The management of PAL said that they were surprised by Fasap’s turnaround by announcing their decision to strike.
“It was upon DOLE’s recommendation that PAL and the Flight Attendants’ and Stewards’ Association of the Philippines agreed to a recess and to meet again next week,” Villaluna said.
She added that PAL has been negotiating in good faith and has bent backwards to accommodate some of Fasap’s demands.
“It is the union that is playing hardball, dismissing outright management’s offers without even a second glance,” Villaluna said.
Given the threat of Fasap to go on strike, Villaluna said PAL is preparing emergency measures in case the mass action will push through.
“PAL is hopeful that DOLE will immediately step in to avert any work stoppage that can wreak havoc to the economy,” she said.
Villaluna added that from day one, Fasap has not shown any intention to consider anything short of their demands.
“A negotiation is like a two-way street; it’s give and take. It’s very difficult to deal and negotiate with a party who only wants things to go their way,” Villaluna said.
Earlier, PAL said its offer of a P105-million economic package from P80 million is the best offer given massive losses of $312 million or over P15 billion in the last two years.
The airline added that the early retirement age is “benchmarked” on PAL’s major competitors in the region whose cabin crews are retired between the age of 35 and 45.
The planned strike is the latest in a string of labor problems to hit the airline.
Last month, 25 pilots and first officers on PAL’s short-haul aircraft suddenly quit for higher paying jobs abroad, forcing the abrupt cancellation of several flights.
WITH REPORTS FROM JOMAR CANLAS AND AFP
Thursday, September 30, 2010
PAL wants pirated pilots to pay back P14m each
Manila Standard Today
September 30, 2010
by Jeremiah F. de Guzman
PHILIPPINE Airlines will be suing the remaining 10 pilots who resigned abruptly despite reports they have left the country to work for foreign carriers, an official said over the weekend.
The flag carrier was completing documentation to take legal action against the 10, who were not included in the first batch of civil cases that it filed last week, company president and chief operating officer Jaime Bautista said.
The pilots left without notice, and reportedly for higher-paying jobs in Hong Kong, Vietnam and the Middle East, prompting Philippine Airlines to cancel more than 20 flights in August.
“We will still sue them for breach of contract,” Bautista said.
“Even if they are already abroad, they will still go back to the Philippines.”
Bautista said PAL was seeking compensation from the pilots to cover the cost of training them, which amounted to about P14 million over 10 years.
The respondents in the first lawsuit were captains Allan Avellanosa, John Joseph de Guzman, Bienvenido Gorospe, Christopher Abella, Alvin Panganiban, Charles Pastrana, Sunny Sim and Jacques Louis Zialcita, and first officers Gerald Escuril, Regin Lorenzo, Robert Solis, Emmanuel de Lima, Joevan Magbanua, Van Vincent Panganiban, Erwin Sibayan, and Darwin Sy.
The airline accuses the pilots, who used to operate its fleet of Airbus 320s, of violating a provision in their contract to give the company a 180-day notice before leaving for another job, as well as an agreement requiring them to work for five years to cover the cost of their training.
Meanwhile, Bautista said the airline was continuing to negotiate with the members of its flight attendants and stewards’ union despite their filing of a notice of strike with the Labor Department on Sept. 9.
“There is nothing to worry about,” he said. The airline hoped that the problem would be resolved as the lines of communication were still open.
Bautista said the labor problems and the booking cancellations resulting from the Aug. 23 hostage-taking in Manila, in which eight Hong Kong tourists were killed, would hurt the airline’s bottom line.
On Sunday, the Flight Attendants’ and Stewards Association of the Philippines criticized the management for refusing to budge on the mandatory retirement age of 40 for female cabin crew.
The union said a seven-hour meeting on Sept. 15 brought no results, and that another meeting on Sept. 17 also ended in a deadlock.
“PAL has not moved one inch. Not one day over 40 years old and not one peso over its last P80-million lump-sum offer to settle the past three year CBA [collective bargaining agreement] period. So much for being reasonable,” the union said on its Web site.
“The Department of Labor officials who are trying their very best to mediate the dispute must have been very disappointed with PAL management.”
September 30, 2010
by Jeremiah F. de Guzman
PHILIPPINE Airlines will be suing the remaining 10 pilots who resigned abruptly despite reports they have left the country to work for foreign carriers, an official said over the weekend.
The flag carrier was completing documentation to take legal action against the 10, who were not included in the first batch of civil cases that it filed last week, company president and chief operating officer Jaime Bautista said.
The pilots left without notice, and reportedly for higher-paying jobs in Hong Kong, Vietnam and the Middle East, prompting Philippine Airlines to cancel more than 20 flights in August.
“We will still sue them for breach of contract,” Bautista said.
“Even if they are already abroad, they will still go back to the Philippines.”
Bautista said PAL was seeking compensation from the pilots to cover the cost of training them, which amounted to about P14 million over 10 years.
The respondents in the first lawsuit were captains Allan Avellanosa, John Joseph de Guzman, Bienvenido Gorospe, Christopher Abella, Alvin Panganiban, Charles Pastrana, Sunny Sim and Jacques Louis Zialcita, and first officers Gerald Escuril, Regin Lorenzo, Robert Solis, Emmanuel de Lima, Joevan Magbanua, Van Vincent Panganiban, Erwin Sibayan, and Darwin Sy.
The airline accuses the pilots, who used to operate its fleet of Airbus 320s, of violating a provision in their contract to give the company a 180-day notice before leaving for another job, as well as an agreement requiring them to work for five years to cover the cost of their training.
Meanwhile, Bautista said the airline was continuing to negotiate with the members of its flight attendants and stewards’ union despite their filing of a notice of strike with the Labor Department on Sept. 9.
“There is nothing to worry about,” he said. The airline hoped that the problem would be resolved as the lines of communication were still open.
Bautista said the labor problems and the booking cancellations resulting from the Aug. 23 hostage-taking in Manila, in which eight Hong Kong tourists were killed, would hurt the airline’s bottom line.
On Sunday, the Flight Attendants’ and Stewards Association of the Philippines criticized the management for refusing to budge on the mandatory retirement age of 40 for female cabin crew.
The union said a seven-hour meeting on Sept. 15 brought no results, and that another meeting on Sept. 17 also ended in a deadlock.
“PAL has not moved one inch. Not one day over 40 years old and not one peso over its last P80-million lump-sum offer to settle the past three year CBA [collective bargaining agreement] period. So much for being reasonable,” the union said on its Web site.
“The Department of Labor officials who are trying their very best to mediate the dispute must have been very disappointed with PAL management.”
PAL deadlock: Only DoLE can avert strike
By Jerome Aning
Philippine Daily Inquirer
First Posted 09/30/2010
MANILA, Philippines—Philippine Airlines (PAL) has asked the labor department to take immediate steps to avert a strike at the flag carrier after a cabin crew union Wednesday served notice that it would proceed with its planned work stoppage following a deadlock in conciliation talks.
Unless the Department of Labor and Employment (DoLE) assumes jurisdiction over the labor dispute, the Flight Attendants and Stewards Association of the Philippines may legally hold a strike by next week, FASAP said.
“The talks are deadlocked. FASAP finds no more need to meet with PAL and will now concentrate on preparing for the strike,” FASAP president Bob Anduiza said in a statement.
FASAP filed a notice of strike on Sept. 9 following dispute in its collective bargaining agreement with management. A 30-day “cooling off” period followed, during which the DoLE’s National Conciliation and Mediation Board (NCMB) hosted several rounds of mediation.
Anduiza said the strike could happen “between the end of October and the first week of November after the mandated cooling-off period and the holding of the strike vote.”
PAL spokesperson Cielo Villaluna assured the public that “a strike will not happen overnight.”
“Management is asking DoLE to immediately step in to avert the strike and protect the interests of the riding public,” she said.
The labor secretary can assume jurisdiction over the dispute and resolve the case, especially one involving a company imbued with national interest.
When the DoLE assumes jurisdiction, no strike may be held and workers already on strike are ordered to return to work. The company may not lock down its premises against its workers.
A DoLE official, who asked not to be named, said he believes the DoLE would assume jurisdiction even without the labor or management panel asking for it.
The union said the strike was to protest PAL’s “outdated and sexist policies.”
“This is not merely about pay increases, this is mainly about the respect and dignity of female flight attendants. It’s about discrimination,” said Anduiza.
Anduiza accused the airline of insincerity during the compulsory mediation talks.
“PAL is playing games and is insisting on its unreasonable retirement age limit. They are not serious in resolving the dispute,” he said.
The airline countered that it had “bent over backwards” to meet FASAP halfway.
“Contrary to FASAP’s claims, there will be no layoffs as a result of the mixed crew scheme. There will also be no reduction in flight assignments and pay of international cabin attendants,” Villaluna said.
She noted that the policy of having flight attendants retire earlier than the law-mandated 60 years old is benchmarked to policies of other carriers in the region. With Paolo Montecillo
Philippine Daily Inquirer
First Posted 09/30/2010
MANILA, Philippines—Philippine Airlines (PAL) has asked the labor department to take immediate steps to avert a strike at the flag carrier after a cabin crew union Wednesday served notice that it would proceed with its planned work stoppage following a deadlock in conciliation talks.
Unless the Department of Labor and Employment (DoLE) assumes jurisdiction over the labor dispute, the Flight Attendants and Stewards Association of the Philippines may legally hold a strike by next week, FASAP said.
“The talks are deadlocked. FASAP finds no more need to meet with PAL and will now concentrate on preparing for the strike,” FASAP president Bob Anduiza said in a statement.
FASAP filed a notice of strike on Sept. 9 following dispute in its collective bargaining agreement with management. A 30-day “cooling off” period followed, during which the DoLE’s National Conciliation and Mediation Board (NCMB) hosted several rounds of mediation.
Anduiza said the strike could happen “between the end of October and the first week of November after the mandated cooling-off period and the holding of the strike vote.”
PAL spokesperson Cielo Villaluna assured the public that “a strike will not happen overnight.”
“Management is asking DoLE to immediately step in to avert the strike and protect the interests of the riding public,” she said.
The labor secretary can assume jurisdiction over the dispute and resolve the case, especially one involving a company imbued with national interest.
When the DoLE assumes jurisdiction, no strike may be held and workers already on strike are ordered to return to work. The company may not lock down its premises against its workers.
A DoLE official, who asked not to be named, said he believes the DoLE would assume jurisdiction even without the labor or management panel asking for it.
The union said the strike was to protest PAL’s “outdated and sexist policies.”
“This is not merely about pay increases, this is mainly about the respect and dignity of female flight attendants. It’s about discrimination,” said Anduiza.
Anduiza accused the airline of insincerity during the compulsory mediation talks.
“PAL is playing games and is insisting on its unreasonable retirement age limit. They are not serious in resolving the dispute,” he said.
The airline countered that it had “bent over backwards” to meet FASAP halfway.
“Contrary to FASAP’s claims, there will be no layoffs as a result of the mixed crew scheme. There will also be no reduction in flight assignments and pay of international cabin attendants,” Villaluna said.
She noted that the policy of having flight attendants retire earlier than the law-mandated 60 years old is benchmarked to policies of other carriers in the region. With Paolo Montecillo
PAL expects to post profit in ’10
By Paolo Montecillo
Philippine Daily Inquirer
First Posted 09/30/2010
Philippine Daily Inquirer
First Posted 09/30/2010
DESPITE THE strong headwinds in its path, flag carrier Philippine Airlines (PAL) expects to end 2010 with a profit, ending two years in the red, on the back of the recovery in demand for air travel.
PAL president and chief operating officer Jaime J. Bautista said various cost-cutting and revenue-enhancement measures implemented since the start of the year were also starting to bear fruit.
“We are very cautious and we will continue to implement programs to generate more revenue,” Bautista said at the sidelines of the annual shareholders meeting of PAL Holdings Inc., the airline’s parent firm.
“The outlook for PAL this year is that we will post a profit, but that will happen only if we can successfully implement our ‘survival plan,’” he told reporters.
PAL’s survival plan is a set of measures intended to help the company cut costs and improve revenue. This was formulated after PAL lost about $300 million over the last two years.
These measures include a more aggressive marketing program to attract more passengers and outsourcing of non-core services such as in-flight catering and airport services.
The outsourcing will affect about 2,600 of PAL’s 7,000 employees.
The outsourcing of non-core services, Bautista said, would also be needed if PAL was to attract investors who would pour in fresh money to revitalize the airline.
The Lucio Tan group, which owns about 90 percent of PAL, is now keener on growing its budget carrier Air Philippines, operating under the brand Air Phil Express. The group is investing $250 million in the expansion of Air Philippines.
PAL urged to take steps to avert strike
The Philippine Star
By Mayen Jaymalin
September 30, 2010 12:00 AM
MANILA, Philippines - The Philippine Airlines (PAL) urged the Department of Labor and Employment (DOLE) to take immediate steps to avert a strike by its flight attendants.
“PAL would like to assure our passengers that a strike will not happen overnight. Management is asking DOLE to immediately step in to avert the strike and protect the interests of the riding public,” PAL spokesperson Cielo Villaluna said.
The Flight Attendants and Stewards Association of the Philippines (FASAP) announced yesterday that their 1,600 members are now preparing for a strike to paralyze operations of PAL after talks over salary and working conditions broke down.
“It was upon DOLE’s recommendation that PAL and FASAP agreed to a recess and to meet again next week. PAL management was surprised by FASAP’s sudden turnaround by announcing their decision to strike,” Villaluna stressed.
She said PAL has been negotiating in good faith and has bent backwards to accommodate some of FASAP’s demands. “It is the union that is playing hardball, dismissing outright management’s offers without even a second glance,” she said.
Villaluna explained that PAL’s P105-million offer is hardly unreasonable considering the airline’s staggering losses in the last two years. PAL, she added, even agreed to increase the retirement age from 40 to 45 years if the union would allow junior cabin crew to fly international routes along with their senior counterparts.
“Contrary to FASAP’s claims, there will be no layoffs as a result of the mixed crew scheme. There will also be no reduction in flight assignments and pay of international cabin attendants. Why is FASAP so averse to the idea of their younger members earning a little more?” Villaluna asked.
She added that PAL’s early retirement age is benchmarked to other carriers in the region. “PAL maintains that while the early retirement age is negotiable, it is by no means illegal nor immoral,” she said.
Bob Anduiza, FASAP president, said the cabin crew union already rejected more conciliation talks with management and the workers are now ready to stage a strike.
“It has become clearer now that FASAP is left with no choice but to definitely proceed with the planned strike,” Anduiza said after pulling out from negotiations with PAL management last Tuesday night.
The National Conciliation and Mediation Board (NCMB) said that both parties failed to come up with a compromise that resulted in a deadlock.
NCMB said PAL and FASAP representatives agreed to revisit their respective positions even though both parties expressed reservation over resuming talks.
Anduiza said PAL management has not presented any new offer and refused to provide higher compensation, continuing to reject their demand to abolish the 40-year-old retirement age and other sexist policies.
He explained that PAL’s previous offer of a P105-million financial package is still insufficient to cover the back wages of more than 500 flight attendants who are receiving salaries below the minimum wage.
Anduiza said the NCMB presented the correct minimum wage levels from the year 2000 up to the present during the meeting with PAL management.
“The advisory from the labor department clearly showed that the PAL flight attendants’ entry level pay of P8,605 is way, way below the present P12,288 minimum wage and yet management refused to come out with any new offer,” Anduiza said.
“FASAP finds no need to meet with PAL and will now concentrate on preparing for the strike,” he added.
He said FASAP would likely start the work stoppage to paralyze PAL’s operations by the end of October or early November.
As this developed, Villaluna said PAL is preparing emergency measures in case the cabin crew push through with the strike.
“PAL is hopeful that DOLE will immediately step in to avert any work stoppage that can wreak havoc on the economy,” said Villaluna.
She added that from day one, FASAP has not shown any intention to consider anything short of their demands.
“A negotiation is like a two-way street; it’s give and take. It’s very difficult to deal and negotiate with a party who only wants things to go their way,” Villaluna stressed.
PAL’s corporate communication head Jonathan Guismundo said the company is still open for talks with FASAP members and the firm still expects a settlement of the labor dispute.
“Until this time PAL and FASAP are still looking for a middle ground, PAL has not shut the door and is willing to discuss issues with the flight attendants,” Guismundo pointed out.
PAL president Jaime Bautista, however, said they are pushing for a mixed-crew complement to allow both domestic and international crews to work side-by-side.
He said the proposed scheme would give domestic cabin attendants the recognition they deserve apart from giving international exposure as well as enable PAL to save on operational cost.
Meanwhile, some PAL flight attendants welcomed the management proposal to implement mixed crew assignments during mediation talks between the management and FASAP.
Most PAL cabin attendants flying domestic routes said the mixed crew assignment, which would allow younger crew members on domestic flights to work international flights alongside their senior counterparts, would translate to additional productivity pay, per diems and other allowances for younger crew members.
The proposed mixed crew complement is a precondition to raising the retirement age of crew members from 40 to 45 years old.
“Even before I became a PAL flight attendant, it was my dream to fly international, to see other countries and enjoy the perks of flying international,” said Sharon (not her real name), who was hired by PAL soon after graduating from an exclusive girls school.
Both new and senior cabin crew undergo recurrent training with strict standards on the level of service they perform in flight.
A younger cabin crew would need at least two to three weeks of additional training and familiarization with aircraft and equipment before he/she can fly international.
“We believe that our training allows us to serve on international flights. We know our role as safety officers and we also have complete training on both narrow-body and wide-body aircraft,” she said.
The cabin crew union and PAL’s international flight attendants are resisting the mix-crew rule because of the additional perks that the crew receives on long-haul flights.– With Rudy Santos
By Mayen Jaymalin
September 30, 2010 12:00 AM
MANILA, Philippines - The Philippine Airlines (PAL) urged the Department of Labor and Employment (DOLE) to take immediate steps to avert a strike by its flight attendants.
“PAL would like to assure our passengers that a strike will not happen overnight. Management is asking DOLE to immediately step in to avert the strike and protect the interests of the riding public,” PAL spokesperson Cielo Villaluna said.
The Flight Attendants and Stewards Association of the Philippines (FASAP) announced yesterday that their 1,600 members are now preparing for a strike to paralyze operations of PAL after talks over salary and working conditions broke down.
“It was upon DOLE’s recommendation that PAL and FASAP agreed to a recess and to meet again next week. PAL management was surprised by FASAP’s sudden turnaround by announcing their decision to strike,” Villaluna stressed.
She said PAL has been negotiating in good faith and has bent backwards to accommodate some of FASAP’s demands. “It is the union that is playing hardball, dismissing outright management’s offers without even a second glance,” she said.
Villaluna explained that PAL’s P105-million offer is hardly unreasonable considering the airline’s staggering losses in the last two years. PAL, she added, even agreed to increase the retirement age from 40 to 45 years if the union would allow junior cabin crew to fly international routes along with their senior counterparts.
“Contrary to FASAP’s claims, there will be no layoffs as a result of the mixed crew scheme. There will also be no reduction in flight assignments and pay of international cabin attendants. Why is FASAP so averse to the idea of their younger members earning a little more?” Villaluna asked.
She added that PAL’s early retirement age is benchmarked to other carriers in the region. “PAL maintains that while the early retirement age is negotiable, it is by no means illegal nor immoral,” she said.
Bob Anduiza, FASAP president, said the cabin crew union already rejected more conciliation talks with management and the workers are now ready to stage a strike.
“It has become clearer now that FASAP is left with no choice but to definitely proceed with the planned strike,” Anduiza said after pulling out from negotiations with PAL management last Tuesday night.
The National Conciliation and Mediation Board (NCMB) said that both parties failed to come up with a compromise that resulted in a deadlock.
NCMB said PAL and FASAP representatives agreed to revisit their respective positions even though both parties expressed reservation over resuming talks.
Anduiza said PAL management has not presented any new offer and refused to provide higher compensation, continuing to reject their demand to abolish the 40-year-old retirement age and other sexist policies.
He explained that PAL’s previous offer of a P105-million financial package is still insufficient to cover the back wages of more than 500 flight attendants who are receiving salaries below the minimum wage.
Anduiza said the NCMB presented the correct minimum wage levels from the year 2000 up to the present during the meeting with PAL management.
“The advisory from the labor department clearly showed that the PAL flight attendants’ entry level pay of P8,605 is way, way below the present P12,288 minimum wage and yet management refused to come out with any new offer,” Anduiza said.
“FASAP finds no need to meet with PAL and will now concentrate on preparing for the strike,” he added.
He said FASAP would likely start the work stoppage to paralyze PAL’s operations by the end of October or early November.
As this developed, Villaluna said PAL is preparing emergency measures in case the cabin crew push through with the strike.
“PAL is hopeful that DOLE will immediately step in to avert any work stoppage that can wreak havoc on the economy,” said Villaluna.
She added that from day one, FASAP has not shown any intention to consider anything short of their demands.
“A negotiation is like a two-way street; it’s give and take. It’s very difficult to deal and negotiate with a party who only wants things to go their way,” Villaluna stressed.
PAL’s corporate communication head Jonathan Guismundo said the company is still open for talks with FASAP members and the firm still expects a settlement of the labor dispute.
“Until this time PAL and FASAP are still looking for a middle ground, PAL has not shut the door and is willing to discuss issues with the flight attendants,” Guismundo pointed out.
PAL president Jaime Bautista, however, said they are pushing for a mixed-crew complement to allow both domestic and international crews to work side-by-side.
He said the proposed scheme would give domestic cabin attendants the recognition they deserve apart from giving international exposure as well as enable PAL to save on operational cost.
Meanwhile, some PAL flight attendants welcomed the management proposal to implement mixed crew assignments during mediation talks between the management and FASAP.
Most PAL cabin attendants flying domestic routes said the mixed crew assignment, which would allow younger crew members on domestic flights to work international flights alongside their senior counterparts, would translate to additional productivity pay, per diems and other allowances for younger crew members.
The proposed mixed crew complement is a precondition to raising the retirement age of crew members from 40 to 45 years old.
“Even before I became a PAL flight attendant, it was my dream to fly international, to see other countries and enjoy the perks of flying international,” said Sharon (not her real name), who was hired by PAL soon after graduating from an exclusive girls school.
Both new and senior cabin crew undergo recurrent training with strict standards on the level of service they perform in flight.
A younger cabin crew would need at least two to three weeks of additional training and familiarization with aircraft and equipment before he/she can fly international.
“We believe that our training allows us to serve on international flights. We know our role as safety officers and we also have complete training on both narrow-body and wide-body aircraft,” she said.
The cabin crew union and PAL’s international flight attendants are resisting the mix-crew rule because of the additional perks that the crew receives on long-haul flights.– With Rudy Santos
PAL domestic cabin crew welcomes mgmt proposal
Business Mirror
September 30, 2010
Domestic cabin crew of Philippine Airlines (PAL) yesterday welcomes the management’s proposal for mixed crew assignments during ongoing mediation talks between PAL and the Flight Attendants’ and Stewards’ Association of the Philippines (FASAP) at the Department of Labor and Employment (DOLE).
Several PAL cabin attendants flying domestic routes said the mixed crew assignment -- which would allow younger crew members to fly international alongside their more senior counterparts -- means additional productivity pay, per diems and other allowances.
PAL proposed the mixed crew complement as a precondition to raising the retirement age of crew members to 45 from 40.
"Even before I became a PAL flight attendant, it was my dream to fly international; to see other countries and enjoy the perks of flying international," said Sheila (not her real name), who was hired by PAL soon after graduation from an exclusive girls school.
The mix-crew assignment proposed by PAL management would enable new flight attendants, who are initially assigned to domestic flights, to fly international alongside those with longer years of service. The work rule would also allow senior crew to take on domestic flight assignments.
Both new and senior cabin crew undergo recurrent training with strict standards on the level of service they perform inflight. A younger cabin crew would need at least two to three weeks of additional training and familiarization with aircraft and equipment before she can fly international.
"We believe that our training allows us to serve on international flights. We know our role as safety officers and we also have complete training on both narrow-body and wide-body aircraft," she said.
The cabin crew union and PAL’s international flight attendants are resisting the mix-crew rule because of the additional perks that the crew receives on long-haul flights. PAL, however, assured its international crew members that there will be no reduction in their international flight assignments nor will there be a reduction of their salaries and benefits even if they also serve in domestic routes.
The young PAL flight attendant said she hopes FASAP will accept the mix-crew rule proposed by management to end the discrimination by the older crew against their younger colleagues.
"After all, we are all crew members dreaming of better opportunities and pay," Sheila said, adding that it pains them so see senior colleagues whom they look up to like older brothers and sisters, who tries to block their chances for professional growth. "It’s ironic that our own union -- who accuses management of discrimination, are the ones guilty of the same offense," she added.
September 30, 2010
Domestic cabin crew of Philippine Airlines (PAL) yesterday welcomes the management’s proposal for mixed crew assignments during ongoing mediation talks between PAL and the Flight Attendants’ and Stewards’ Association of the Philippines (FASAP) at the Department of Labor and Employment (DOLE).
Several PAL cabin attendants flying domestic routes said the mixed crew assignment -- which would allow younger crew members to fly international alongside their more senior counterparts -- means additional productivity pay, per diems and other allowances.
PAL proposed the mixed crew complement as a precondition to raising the retirement age of crew members to 45 from 40.
"Even before I became a PAL flight attendant, it was my dream to fly international; to see other countries and enjoy the perks of flying international," said Sheila (not her real name), who was hired by PAL soon after graduation from an exclusive girls school.
The mix-crew assignment proposed by PAL management would enable new flight attendants, who are initially assigned to domestic flights, to fly international alongside those with longer years of service. The work rule would also allow senior crew to take on domestic flight assignments.
Both new and senior cabin crew undergo recurrent training with strict standards on the level of service they perform inflight. A younger cabin crew would need at least two to three weeks of additional training and familiarization with aircraft and equipment before she can fly international.
"We believe that our training allows us to serve on international flights. We know our role as safety officers and we also have complete training on both narrow-body and wide-body aircraft," she said.
The cabin crew union and PAL’s international flight attendants are resisting the mix-crew rule because of the additional perks that the crew receives on long-haul flights. PAL, however, assured its international crew members that there will be no reduction in their international flight assignments nor will there be a reduction of their salaries and benefits even if they also serve in domestic routes.
The young PAL flight attendant said she hopes FASAP will accept the mix-crew rule proposed by management to end the discrimination by the older crew against their younger colleagues.
"After all, we are all crew members dreaming of better opportunities and pay," Sheila said, adding that it pains them so see senior colleagues whom they look up to like older brothers and sisters, who tries to block their chances for professional growth. "It’s ironic that our own union -- who accuses management of discrimination, are the ones guilty of the same offense," she added.
Air Philippines unveils expansion plan
(philstar.com) Updated September 30, 2010 12:34 PM
MANILA, Philippines (Xinhua) – Lucio Tan-led Air Philippines plans to open more new air routes by expanding its aircraft fleet to compete in the country's competitive aviation industry, the company said today.
Air Philippines CEO Cesar Chiong said the company plans to increase its Airbus A320 aircraft from just three to 18 by 2012 and add more domestic and regional routes.
The airline will fly to its first regional destination, Singapore, later this month, using its brand new 180-seater A320, which was delivered earlier this week.
"We're looking at destinations like the Republic of Korea, Bangkok and maybe Hong Kong," Chiong said.
Domestic routes like Vigan and Marinduque are also in the company's radar screen.
By the end of the year, Chiong said, the company expects to have six new A320s. Another six will arrive next year while the rest will come in 2012. Air Philippines' first two A320s given to it by sister company Philippine Airlines (PAL).
Aside from the three Airbus jets, Air Philippines also has eight turbo propeller planes used to fly on domestic routes.
A total of $250 million will be spent for the lease of the new aircraft.
Chiong said the company preferred to acquire A320 jets, which are the same planes used by its sister PAL, to keep expenses down since a fleet with just one type of airline is easier and cheaper to maintain.
Air Philippines is already the country's third largest airline, behind Gokongwei-led Cebu Pacific and Tan’s Philippine Airlines, at the end of the first half of the year after carrying 676,686 passengers.
MANILA, Philippines (Xinhua) – Lucio Tan-led Air Philippines plans to open more new air routes by expanding its aircraft fleet to compete in the country's competitive aviation industry, the company said today.
Air Philippines CEO Cesar Chiong said the company plans to increase its Airbus A320 aircraft from just three to 18 by 2012 and add more domestic and regional routes.
The airline will fly to its first regional destination, Singapore, later this month, using its brand new 180-seater A320, which was delivered earlier this week.
"We're looking at destinations like the Republic of Korea, Bangkok and maybe Hong Kong," Chiong said.
Domestic routes like Vigan and Marinduque are also in the company's radar screen.
By the end of the year, Chiong said, the company expects to have six new A320s. Another six will arrive next year while the rest will come in 2012. Air Philippines' first two A320s given to it by sister company Philippine Airlines (PAL).
Aside from the three Airbus jets, Air Philippines also has eight turbo propeller planes used to fly on domestic routes.
A total of $250 million will be spent for the lease of the new aircraft.
Chiong said the company preferred to acquire A320 jets, which are the same planes used by its sister PAL, to keep expenses down since a fleet with just one type of airline is easier and cheaper to maintain.
Air Philippines is already the country's third largest airline, behind Gokongwei-led Cebu Pacific and Tan’s Philippine Airlines, at the end of the first half of the year after carrying 676,686 passengers.
PAL urged to take steps to avert strike
By Mayen Jaymalin (The Philippine Star) Updated September 30, 2010 12:00 AM
The Philippine Airlines (PAL) urged the Department of Labor and Employment (DOLE) to take immediate steps to avert a strike by its flight attendants.
“PAL would like to assure our passengers that a strike will not happen overnight. Management is asking DOLE to immediately step in to avert the strike and protect the interests of the riding public,” PAL spokesperson Cielo Villaluna said.
The Flight Attendants and Stewards Association of the Philippines (FASAP) announced yesterday that their 1,600 members are now preparing for a strike to paralyze operations of PAL after talks over salary and working conditions broke down.
“It was upon DOLE’s recommendation that PAL and FASAP agreed to a recess and to meet again next week. PAL management was surprised by FASAP’s sudden turnaround by announcing their decision to strike,” Villaluna stressed.
She said PAL has been negotiating in good faith and has bent backwards to accommodate some of FASAP’s demands. “It is the union that is playing hardball, dismissing outright management’s offers without even a second glance,” she said.
Villaluna explained that PAL’s P105-million offer is hardly unreasonable considering the airline’s staggering losses in the last two years. PAL, she added, even agreed to increase the retirement age from 40 to 45 years if the union would allow junior cabin crew to fly international routes along with their senior counterparts.
“Contrary to FASAP’s claims, there will be no layoffs as a result of the mixed crew scheme. There will also be no reduction in flight assignments and pay of international cabin attendants. Why is FASAP so averse to the idea of their younger members earning a little more?” Villaluna asked.
She added that PAL’s early retirement age is benchmarked to other carriers in the region. “PAL maintains that while the early retirement age is negotiable, it is by no means illegal nor immoral,” she said.
Bob Anduiza, FASAP president, said the cabin crew union already rejected more conciliation talks with management and the workers are now ready to stage a strike.
“It has become clearer now that FASAP is left with no choice but to definitely proceed with the planned strike,” Anduiza said after pulling out from negotiations with PAL management last Tuesday night.
The National Conciliation and Mediation Board (NCMB) said that both parties failed to come up with a compromise that resulted in a deadlock.
NCMB said PAL and FASAP representatives agreed to revisit their respective positions even though both parties expressed reservation over resuming talks.
Anduiza said PAL management has not presented any new offer and refused to provide higher compensation, continuing to reject their demand to abolish the 40-year-old retirement age and other sexist policies.
He explained that PAL’s previous offer of a P105-million financial package is still insufficient to cover the back wages of more than 500 flight attendants who are receiving salaries below the minimum wage.
Anduiza said the NCMB presented the correct minimum wage levels from the year 2000 up to the present during the meeting with PAL management.
“The advisory from the labor department clearly showed that the PAL flight attendants’ entry level pay of P8,605 is way, way below the present P12,288 minimum wage and yet management refused to come out with any new offer,” Anduiza said.
“FASAP finds no need to meet with PAL and will now concentrate on preparing for the strike,” he added.
He said FASAP would likely start the work stoppage to paralyze PAL’s operations by the end of October or early November.\
As this developed, Villaluna said PAL is preparing emergency measures in case the cabin crew push through with the strike.
“PAL is hopeful that DOLE will immediately step in to avert any work stoppage that can wreak havoc on the economy,” said Villaluna.
She added that from day one, FASAP has not shown any intention to consider anything short of their demands.
“A negotiation is like a two-way street; it’s give and take. It’s very difficult to deal and negotiate with a party who only wants things to go their way,” Villaluna stressed.
PAL’s corporate communication head Jonathan Guismundo said the company is still open for talks with FASAP members and the firm still expects a settlement of the labor dispute.
“Until this time PAL and FASAP are still looking for a middle ground, PAL has not shut the door and is willing to discuss issues with the flight attendants,” Guismundo pointed out.
PAL president Jaime Bautista, however, said they are pushing for a mixed-crew complement to allow both domestic and international crews to work side-by-side.
He said the proposed scheme would give domestic cabin attendants the recognition they deserve apart from giving international exposure as well as enable PAL to save on operational cost.
Meanwhile, some PAL flight attendants welcomed the management proposal to implement mixed crew assignments during mediation talks between the management and FASAP.
Most PAL cabin attendants flying domestic routes said the mixed crew assignment, which would allow younger crew members on domestic flights to work international flights alongside their senior counterparts, would translate to additional productivity pay, per diems and other allowances for younger crew members.
The proposed mixed crew complement is a precondition to raising the retirement age of crew members from 40 to 45 years old.
“Even before I became a PAL flight attendant, it was my dream to fly international, to see other countries and enjoy the perks of flying international,” said Sharon (not her real name), who was hired by PAL soon after graduating from an exclusive girls school.
Both new and senior cabin crew undergo recurrent training with strict standards on the level of service they perform in flight.
A younger cabin crew would need at least two to three weeks of additional training and familiarization with aircraft and equipment before he/she can fly international.
“We believe that our training allows us to serve on international flights. We know our role as safety officers and we also have complete training on both narrow-body and wide-body aircraft,” she said.
The cabin crew union and PAL’s international flight attendants are resisting the mix-crew rule because of the additional perks that the crew receives on long-haul flights.– With Rudy Santos
The Philippine Airlines (PAL) urged the Department of Labor and Employment (DOLE) to take immediate steps to avert a strike by its flight attendants.
“PAL would like to assure our passengers that a strike will not happen overnight. Management is asking DOLE to immediately step in to avert the strike and protect the interests of the riding public,” PAL spokesperson Cielo Villaluna said.
The Flight Attendants and Stewards Association of the Philippines (FASAP) announced yesterday that their 1,600 members are now preparing for a strike to paralyze operations of PAL after talks over salary and working conditions broke down.
“It was upon DOLE’s recommendation that PAL and FASAP agreed to a recess and to meet again next week. PAL management was surprised by FASAP’s sudden turnaround by announcing their decision to strike,” Villaluna stressed.
She said PAL has been negotiating in good faith and has bent backwards to accommodate some of FASAP’s demands. “It is the union that is playing hardball, dismissing outright management’s offers without even a second glance,” she said.
Villaluna explained that PAL’s P105-million offer is hardly unreasonable considering the airline’s staggering losses in the last two years. PAL, she added, even agreed to increase the retirement age from 40 to 45 years if the union would allow junior cabin crew to fly international routes along with their senior counterparts.
“Contrary to FASAP’s claims, there will be no layoffs as a result of the mixed crew scheme. There will also be no reduction in flight assignments and pay of international cabin attendants. Why is FASAP so averse to the idea of their younger members earning a little more?” Villaluna asked.
She added that PAL’s early retirement age is benchmarked to other carriers in the region. “PAL maintains that while the early retirement age is negotiable, it is by no means illegal nor immoral,” she said.
Bob Anduiza, FASAP president, said the cabin crew union already rejected more conciliation talks with management and the workers are now ready to stage a strike.
“It has become clearer now that FASAP is left with no choice but to definitely proceed with the planned strike,” Anduiza said after pulling out from negotiations with PAL management last Tuesday night.
The National Conciliation and Mediation Board (NCMB) said that both parties failed to come up with a compromise that resulted in a deadlock.
NCMB said PAL and FASAP representatives agreed to revisit their respective positions even though both parties expressed reservation over resuming talks.
Anduiza said PAL management has not presented any new offer and refused to provide higher compensation, continuing to reject their demand to abolish the 40-year-old retirement age and other sexist policies.
He explained that PAL’s previous offer of a P105-million financial package is still insufficient to cover the back wages of more than 500 flight attendants who are receiving salaries below the minimum wage.
Anduiza said the NCMB presented the correct minimum wage levels from the year 2000 up to the present during the meeting with PAL management.
“The advisory from the labor department clearly showed that the PAL flight attendants’ entry level pay of P8,605 is way, way below the present P12,288 minimum wage and yet management refused to come out with any new offer,” Anduiza said.
“FASAP finds no need to meet with PAL and will now concentrate on preparing for the strike,” he added.
He said FASAP would likely start the work stoppage to paralyze PAL’s operations by the end of October or early November.\
As this developed, Villaluna said PAL is preparing emergency measures in case the cabin crew push through with the strike.
“PAL is hopeful that DOLE will immediately step in to avert any work stoppage that can wreak havoc on the economy,” said Villaluna.
She added that from day one, FASAP has not shown any intention to consider anything short of their demands.
“A negotiation is like a two-way street; it’s give and take. It’s very difficult to deal and negotiate with a party who only wants things to go their way,” Villaluna stressed.
PAL’s corporate communication head Jonathan Guismundo said the company is still open for talks with FASAP members and the firm still expects a settlement of the labor dispute.
“Until this time PAL and FASAP are still looking for a middle ground, PAL has not shut the door and is willing to discuss issues with the flight attendants,” Guismundo pointed out.
PAL president Jaime Bautista, however, said they are pushing for a mixed-crew complement to allow both domestic and international crews to work side-by-side.
He said the proposed scheme would give domestic cabin attendants the recognition they deserve apart from giving international exposure as well as enable PAL to save on operational cost.
Meanwhile, some PAL flight attendants welcomed the management proposal to implement mixed crew assignments during mediation talks between the management and FASAP.
Most PAL cabin attendants flying domestic routes said the mixed crew assignment, which would allow younger crew members on domestic flights to work international flights alongside their senior counterparts, would translate to additional productivity pay, per diems and other allowances for younger crew members.
The proposed mixed crew complement is a precondition to raising the retirement age of crew members from 40 to 45 years old.
“Even before I became a PAL flight attendant, it was my dream to fly international, to see other countries and enjoy the perks of flying international,” said Sharon (not her real name), who was hired by PAL soon after graduating from an exclusive girls school.
Both new and senior cabin crew undergo recurrent training with strict standards on the level of service they perform in flight.
A younger cabin crew would need at least two to three weeks of additional training and familiarization with aircraft and equipment before he/she can fly international.
“We believe that our training allows us to serve on international flights. We know our role as safety officers and we also have complete training on both narrow-body and wide-body aircraft,” she said.
The cabin crew union and PAL’s international flight attendants are resisting the mix-crew rule because of the additional perks that the crew receives on long-haul flights.– With Rudy Santos
Wednesday, September 29, 2010
Still no deal between PAL, union
Manila Standard Today : News
September 29,2010
Talks between the Philippine Airlines’ management and flight attendants over a new deal hit an impasse after both sides refused to budge from their positions during a marathon meeting at the Labor department.
The Lucio Tan-owned airline maintained its offer of an P80-million one-time payment to settle the remaining economic issues in the proposed 2005-2010 collective bargaining agreement but the flight attendants did not accept the offer and insisted on its demand for an P180-million package.
At Labor officials scheduled an Oct. 4 meeting to have both sides try and break the impasse.
PAL said it could only offer as much as P80 million to the attendants’ union because of its dire financial condition.
The flight stewards and attendants association rejected PAL’s offer, claiming that it does not address the main issues such as retirement benefits and discriminatory policies.
“PAL insists on its hardline position on the unreasonable retirement age. PAL does not even intend to correct its violations of the minimum wage law,” Fasap vice president Andy Ortega said.
PAL’s flight attendants receive a monthly gross salary ranging from P30,000 to P80,000 each.
The flight stewards said they were willing to forgo their financial demand if only PAL management would agree to their position to increase the retirement age from 45 to 55.
“Whatever PAL is offering is being made contingent to PAL’s unreasonable positions. {PAL should not muddle the picture. It should address the discrimination on retirement and grant fair increases’” Ortega said.
The flag carrier emphasized that it lost almost $320 million (over P15 billion) in the last two fiscal years due to the global economic crisis exacerbated by the spike in fuel prices, the downgrade of the Philippines’ aviation safety rating to Category 2 by the US Federal Aviation Administration, and the European blacklist of all Philippine carriers.
Fasap also complained about the several CBA violations of the PAL with its worrkers’ reduction plan.
The reduction scheme takes away “food on the flight attendants’ table, making them work more for less pay,” Fsap said.
Fasap also denounced as “gender discrimination” the airline’s policy to bar attendants, who are eight months pregnant, from serving as flight crew.
PAL should correct these discriminatory policies and not take advantage of the crisis to demand more concessions, Fasap said. Vito Barcelo
September 29,2010
Talks between the Philippine Airlines’ management and flight attendants over a new deal hit an impasse after both sides refused to budge from their positions during a marathon meeting at the Labor department.
The Lucio Tan-owned airline maintained its offer of an P80-million one-time payment to settle the remaining economic issues in the proposed 2005-2010 collective bargaining agreement but the flight attendants did not accept the offer and insisted on its demand for an P180-million package.
At Labor officials scheduled an Oct. 4 meeting to have both sides try and break the impasse.
PAL said it could only offer as much as P80 million to the attendants’ union because of its dire financial condition.
The flight stewards and attendants association rejected PAL’s offer, claiming that it does not address the main issues such as retirement benefits and discriminatory policies.
“PAL insists on its hardline position on the unreasonable retirement age. PAL does not even intend to correct its violations of the minimum wage law,” Fasap vice president Andy Ortega said.
PAL’s flight attendants receive a monthly gross salary ranging from P30,000 to P80,000 each.
The flight stewards said they were willing to forgo their financial demand if only PAL management would agree to their position to increase the retirement age from 45 to 55.
“Whatever PAL is offering is being made contingent to PAL’s unreasonable positions. {PAL should not muddle the picture. It should address the discrimination on retirement and grant fair increases’” Ortega said.
The flag carrier emphasized that it lost almost $320 million (over P15 billion) in the last two fiscal years due to the global economic crisis exacerbated by the spike in fuel prices, the downgrade of the Philippines’ aviation safety rating to Category 2 by the US Federal Aviation Administration, and the European blacklist of all Philippine carriers.
Fasap also complained about the several CBA violations of the PAL with its worrkers’ reduction plan.
The reduction scheme takes away “food on the flight attendants’ table, making them work more for less pay,” Fsap said.
Fasap also denounced as “gender discrimination” the airline’s policy to bar attendants, who are eight months pregnant, from serving as flight crew.
PAL should correct these discriminatory policies and not take advantage of the crisis to demand more concessions, Fasap said. Vito Barcelo
PAL attendants back out of negotiations
Aura Marie P. Dagcutan
Posted on 10:03 PM, September 29, 2010
BusinessWorld
FLIGHT attendants and stewards of flag carrier Philippine Airlines (PAL) withdrew from conciliation meetings with the carrier’s management on Tuesday, and have begun preparations for a strike between the end of October and the first week of November.
Robert Anduiza, president of the PAL-Flight Attendants’ and Stewards’ Association of the Philippines (FASAP), said talks at the National Conciliation and Mediation Board of the Department of Labor and Employment (DoLE) over a new collective bargaining deal were “deadlocked.”
“The strike will happen between the end of October and the first week of November after the mandated cooling-off period and the holding of the strike vote,” he said.
The Labor department, however, can assume jurisdiction over the dispute on the ground of national interest to prevent a strike and force both sides to compromise.
PAL spokeswoman Cielo Villaluna said in a statement yesterday the management had called on the DoLE to take immediate steps to avert the strike.
“It is the union that is playing hardball, dismissing outright management’s offers without even a second glance,” said Ms. Villaluna.
Mr. Anduiza pointed out that during the DoLE conciliation meetings, FASAP limited its issues to only three items, focused mainly on age and gender discrimination.
“PAL is playing games and is insisting on its unreasonable retirement age limit. [It is] not serious in resolving the dispute. PAL is just playing deaf and blind to the concerns of the flight attendants,” he said.
The group claimed PAL added more conditions to “muddle the issue and ... make more money out of the dispute.”
“Its proposals to move the retirement age from 40 to 45 on condition of drastic work-rule changes to mix the domestic and international operations will result to retrenchment and mega-profits for PAL,” FASAP said.
It added: “PAL wants to paint itself as reasonable but the real motive is to exploit the flight attendants.”
Mr. Anduiza said the issue was not money but discrimination.
“The Philippine Commission on Women has already pronounced that PAL’s policy towards its female flight attendants is discriminatory. The Commission on Human Rights chair, Ms. Etta Rosales, has also pointed out that PAL’s retirement, pregnancy and maternity provisions for flight attendants are sexist and discriminatory, in violation of their human rights,” he said.
The group also claimed the management has been refusing to correct flight attendants’ basic salaries to meet minimum wage levels.
FASAP said that during the conciliation meetings on Tuesday, a DoLE representative presented the correct minimum wage levels from the years 2000 up to the present.
“It clearly showed that the PAL flight attendants’ entry level pay of P8,605 is way, way below the present P12,288 minimum wage,” Mr. Anduiza said.
“We believe that PAL can well afford to pay and settle the labor dispute based on the hundreds of millions PAL has saving due to the under-manning of crew per flight. The crew are already working more and are being paid less. The problem is PAL does not want to prioritize taking care of the flight attendants.”
Lucio C. Tan-led PAL said there should be no disruption in operations as a strike will not happen overnight. “Management is asking DoLE to immediately step in to avert the strike and protect the interests of the riding public,” said Ms. Villaluna.
“It was upon DoLE’s recommendation that PAL and FASAP agreed to a recess and to meet again next week. PAL management was surprised by FASAP’s sudden turnaround by announcing their decision to strike.”
She said PAL was negotiating in good faith and had bent backwards to accommodate some of FASAP’s demands.
PAL’s P105-million offer is “hardly unreasonable considering the airline’s staggering losses in the last two years,” she added.
“PAL even agreed to increase the retirement age to 45 from 40 if the union would allow junior cabin crew members to fly international along with their senior counterparts,” Ms. Villaluna said.
“Contrary to FASAP’s claims, there will be no layoffs as a result of the mixed crew scheme. There will also be no reduction in flight assignments and pay of international cabin attendants. Why is FASAP so averse to the idea of their younger members earning a little more?”
Ms. Villaluna also said PAL’s early retirement age was benchmarked to other carriers in the region.
“PAL maintains that while the early retirement age is negotiable, it is by no means illegal nor immoral,” she said.
Labor department officials could not be reached for comment. --
Posted on 10:03 PM, September 29, 2010
BusinessWorld
FLIGHT attendants and stewards of flag carrier Philippine Airlines (PAL) withdrew from conciliation meetings with the carrier’s management on Tuesday, and have begun preparations for a strike between the end of October and the first week of November.
Robert Anduiza, president of the PAL-Flight Attendants’ and Stewards’ Association of the Philippines (FASAP), said talks at the National Conciliation and Mediation Board of the Department of Labor and Employment (DoLE) over a new collective bargaining deal were “deadlocked.”
“The strike will happen between the end of October and the first week of November after the mandated cooling-off period and the holding of the strike vote,” he said.
The Labor department, however, can assume jurisdiction over the dispute on the ground of national interest to prevent a strike and force both sides to compromise.
PAL spokeswoman Cielo Villaluna said in a statement yesterday the management had called on the DoLE to take immediate steps to avert the strike.
“It is the union that is playing hardball, dismissing outright management’s offers without even a second glance,” said Ms. Villaluna.
Mr. Anduiza pointed out that during the DoLE conciliation meetings, FASAP limited its issues to only three items, focused mainly on age and gender discrimination.
“PAL is playing games and is insisting on its unreasonable retirement age limit. [It is] not serious in resolving the dispute. PAL is just playing deaf and blind to the concerns of the flight attendants,” he said.
The group claimed PAL added more conditions to “muddle the issue and ... make more money out of the dispute.”
“Its proposals to move the retirement age from 40 to 45 on condition of drastic work-rule changes to mix the domestic and international operations will result to retrenchment and mega-profits for PAL,” FASAP said.
It added: “PAL wants to paint itself as reasonable but the real motive is to exploit the flight attendants.”
Mr. Anduiza said the issue was not money but discrimination.
“The Philippine Commission on Women has already pronounced that PAL’s policy towards its female flight attendants is discriminatory. The Commission on Human Rights chair, Ms. Etta Rosales, has also pointed out that PAL’s retirement, pregnancy and maternity provisions for flight attendants are sexist and discriminatory, in violation of their human rights,” he said.
The group also claimed the management has been refusing to correct flight attendants’ basic salaries to meet minimum wage levels.
FASAP said that during the conciliation meetings on Tuesday, a DoLE representative presented the correct minimum wage levels from the years 2000 up to the present.
“It clearly showed that the PAL flight attendants’ entry level pay of P8,605 is way, way below the present P12,288 minimum wage,” Mr. Anduiza said.
“We believe that PAL can well afford to pay and settle the labor dispute based on the hundreds of millions PAL has saving due to the under-manning of crew per flight. The crew are already working more and are being paid less. The problem is PAL does not want to prioritize taking care of the flight attendants.”
Lucio C. Tan-led PAL said there should be no disruption in operations as a strike will not happen overnight. “Management is asking DoLE to immediately step in to avert the strike and protect the interests of the riding public,” said Ms. Villaluna.
“It was upon DoLE’s recommendation that PAL and FASAP agreed to a recess and to meet again next week. PAL management was surprised by FASAP’s sudden turnaround by announcing their decision to strike.”
She said PAL was negotiating in good faith and had bent backwards to accommodate some of FASAP’s demands.
PAL’s P105-million offer is “hardly unreasonable considering the airline’s staggering losses in the last two years,” she added.
“PAL even agreed to increase the retirement age to 45 from 40 if the union would allow junior cabin crew members to fly international along with their senior counterparts,” Ms. Villaluna said.
“Contrary to FASAP’s claims, there will be no layoffs as a result of the mixed crew scheme. There will also be no reduction in flight assignments and pay of international cabin attendants. Why is FASAP so averse to the idea of their younger members earning a little more?”
Ms. Villaluna also said PAL’s early retirement age was benchmarked to other carriers in the region.
“PAL maintains that while the early retirement age is negotiable, it is by no means illegal nor immoral,” she said.
Labor department officials could not be reached for comment. --
Strike looms as PAL and union talks fail
By Abigail Kwok
INQUIRER.net, Agence France-Presse
First Posted 09/29/2010
MANILA, Philippines—(UPDATE) Philippine Airlines cabin crew members are set to go on strike after talks with the management over pay and conditions bogged down.
The Flight Attendants and Stewards Association of the Philippines (FASAP) said it would no longer engage in talks with PAL management, accusing it of repeatedly rejecting union demands.
"We don't see the point in attending the meetings anymore," union president Bob Anduiza told Agence France-Presse. "The management has maintained its hardline position and the mediation proceedings have failed."
PAL assured passengers that a strike could not be called overnight, even as it urged the Department of Labor to take steps to avert the strike.
"PAL is preparing emergency measures in case such a strike will occur," airline spokeswoman Cielo Villaluna said without elaborating.
The 1,600-strong union said work stoppages would begin from the end of next month, warning the walkout would ground all operations of the troubled airline during the peak season ahead of the Christmas holidays.
Anduiza said the decision to push through with the work stoppage came after Tuesday’s meeting of the labor group with PAL at the National Conciliation and Mediation Board of the Department of Labor and Employment ended in a deadlock.
He said PAL refused to address union demands on the mandatory retirement age of flight attendants and to increase the minimum wage for cabin crew members.
The PAL management insisted on paying P8,605 as minimum monthly wage of cabin crew instead of the P12,288 minimum pay mandated by the Department of Labor and Employment, Anduiza said.
“(T)he PAL flight attendants' entry level pay of P8,605 is way, way below the present P12, 288 minimum wage,” he said.
The union also accuses management of refusing to pay women who were on maternity leave while freezing pay for the past three years.
The union this month warned the government of its plan for a strike if PAL did not meet its demands for higher wages and an end to the mandatory retirement age of 45 for cabin crew, which the union said was discriminatory.
“Its proposals to move the retirement age from 40 to 45 on condition of drastic work-rule changes to mix the domestic and international operations will result to retrenchment and mega-profits for PAL,” Anduiza said.
President Benigno Aquino previously stepped in and ordered the labor department to mediate but was unable to settle the row.
Villaluna said the flag carrier negotiated in good faith and was even about to accommodate some of the union demands.
"PAL management was surprised by FASAP's sudden turnaround by announcing their decision to strike," she said.
Anduiza said, “PAL wants to paint itself as ‘reasonable’ but the real motive is to exploit the flight attendants.”
“PAL is adding more conditions to muddle the issue and intends to make more money out of the dispute,” he said.
Anduiza stressed that PAL should change its discriminatory labor practices.
“PAL misses the point. This is not about making money. This dispute is about discrimination,” he said.
“The Philippine Commission on Women has already pronounced that PAL's policy towards its female flight attendants is discriminatory. The Commission on Human Rights chair, Ms Etta Rosales, has also pointed-out that PAL's retirement, pregnancy and maternity provisions for flight attendants are sexist and discriminatory, in violation of their human rights,” Anduiza said.
Villaluna, meanwhile, accused union members of “playing hardball, dismissing outright management's offers without even a second glance."
The planned strike is the latest in a string of labor problems to hit the airline.
Last month, 25 pilots and first officers on PAL's short-haul aircraft suddenly quit for higher paying jobs abroad, forcing the abrupt cancellation of several flights.
INQUIRER.net, Agence France-Presse
First Posted 09/29/2010
MANILA, Philippines—(UPDATE) Philippine Airlines cabin crew members are set to go on strike after talks with the management over pay and conditions bogged down.
The Flight Attendants and Stewards Association of the Philippines (FASAP) said it would no longer engage in talks with PAL management, accusing it of repeatedly rejecting union demands.
"We don't see the point in attending the meetings anymore," union president Bob Anduiza told Agence France-Presse. "The management has maintained its hardline position and the mediation proceedings have failed."
PAL assured passengers that a strike could not be called overnight, even as it urged the Department of Labor to take steps to avert the strike.
"PAL is preparing emergency measures in case such a strike will occur," airline spokeswoman Cielo Villaluna said without elaborating.
The 1,600-strong union said work stoppages would begin from the end of next month, warning the walkout would ground all operations of the troubled airline during the peak season ahead of the Christmas holidays.
Anduiza said the decision to push through with the work stoppage came after Tuesday’s meeting of the labor group with PAL at the National Conciliation and Mediation Board of the Department of Labor and Employment ended in a deadlock.
He said PAL refused to address union demands on the mandatory retirement age of flight attendants and to increase the minimum wage for cabin crew members.
The PAL management insisted on paying P8,605 as minimum monthly wage of cabin crew instead of the P12,288 minimum pay mandated by the Department of Labor and Employment, Anduiza said.
“(T)he PAL flight attendants' entry level pay of P8,605 is way, way below the present P12, 288 minimum wage,” he said.
The union also accuses management of refusing to pay women who were on maternity leave while freezing pay for the past three years.
The union this month warned the government of its plan for a strike if PAL did not meet its demands for higher wages and an end to the mandatory retirement age of 45 for cabin crew, which the union said was discriminatory.
“Its proposals to move the retirement age from 40 to 45 on condition of drastic work-rule changes to mix the domestic and international operations will result to retrenchment and mega-profits for PAL,” Anduiza said.
President Benigno Aquino previously stepped in and ordered the labor department to mediate but was unable to settle the row.
Villaluna said the flag carrier negotiated in good faith and was even about to accommodate some of the union demands.
"PAL management was surprised by FASAP's sudden turnaround by announcing their decision to strike," she said.
Anduiza said, “PAL wants to paint itself as ‘reasonable’ but the real motive is to exploit the flight attendants.”
“PAL is adding more conditions to muddle the issue and intends to make more money out of the dispute,” he said.
Anduiza stressed that PAL should change its discriminatory labor practices.
“PAL misses the point. This is not about making money. This dispute is about discrimination,” he said.
“The Philippine Commission on Women has already pronounced that PAL's policy towards its female flight attendants is discriminatory. The Commission on Human Rights chair, Ms Etta Rosales, has also pointed-out that PAL's retirement, pregnancy and maternity provisions for flight attendants are sexist and discriminatory, in violation of their human rights,” Anduiza said.
Villaluna, meanwhile, accused union members of “playing hardball, dismissing outright management's offers without even a second glance."
The planned strike is the latest in a string of labor problems to hit the airline.
Last month, 25 pilots and first officers on PAL's short-haul aircraft suddenly quit for higher paying jobs abroad, forcing the abrupt cancellation of several flights.
PAL asks labor department’s help to avert strike
By Abigail Kwok
INQUIRER.net
First Posted 09/29/2010
MANILA, Philippines—Amid threat of a strike by its cabin crew, the Philippine Airlines has asked the Department of Labor and Employment to step in and stop the looming work stoppage.
PAL spokesperson Cielo Villaluna said the flag carrier has been negotiating in good faith and was even about to accommodate some of the demands of the Flight Attendants and Stewards Association of the Philippines.
"PAL management was surprised by FASAP's sudden turnaround by announcing their decision to strike," she said.
"It was upon DOLE's recommendation that PAL and FASAP agreed to a recess and to meet again next week," Villaluna said.
She said FASAP was playing "hardball," immediately dismissing PAL's offers.
"A negotiation is like a two-way street; it's give and take. It's very difficult to deal and negotiate with a party who only wants things to go their way," Villaluna said.
The 1,600-strong FASAP earlier Wednesday said it would no longer engage in talks with PAL management, accusing it of repeatedly rejecting its demands.
"We don't see the point in attending the meetings anymore," union president Bob Anduiza told Agence France-Presse. "The management has maintained its hardline position and the mediation proceedings have failed."
The union this month warned government of its plan for a strike if its demands for higher wages and an end to the mandatory retirement age of 45 for cabin crew, which the union said was discriminatory.
Villaluna said that PAL's agreement to increase the retirement age from 40 to 45 years old was not illegal or immoral.
"PAL maintains that while the early retirement age is negotiable, it is by no means illegal nor immoral," Villaluna said.
She also said that there will be no layoffs under the proposed mixed crew scheme.
"Contrary to FASAP's claims, there will be no layoffs as a result of the mixed crew scheme. There will be no reduction in flight assignments and pay of international cabin attendants. Why is FASAP so adverse to the idea of their younger members earning a little more?" Villaluna asked.
At the same time, Villaluna urged FASAP to accept the P105-million offer of PAL. She said that the amount was not unreasonable based on the airline's losses over the last two years.
Nevertheless, Villaluna said PAL will ready emergency measures ahead of the planned strike.
"PAL would like to assure our passengers that a strike will not happen overnight. Management is asking DOLE to immediately step in to avert the strike and to protect the interests of the riding public," she added. With Agence France-Presse
INQUIRER.net
First Posted 09/29/2010
MANILA, Philippines—Amid threat of a strike by its cabin crew, the Philippine Airlines has asked the Department of Labor and Employment to step in and stop the looming work stoppage.
PAL spokesperson Cielo Villaluna said the flag carrier has been negotiating in good faith and was even about to accommodate some of the demands of the Flight Attendants and Stewards Association of the Philippines.
"PAL management was surprised by FASAP's sudden turnaround by announcing their decision to strike," she said.
"It was upon DOLE's recommendation that PAL and FASAP agreed to a recess and to meet again next week," Villaluna said.
She said FASAP was playing "hardball," immediately dismissing PAL's offers.
"A negotiation is like a two-way street; it's give and take. It's very difficult to deal and negotiate with a party who only wants things to go their way," Villaluna said.
The 1,600-strong FASAP earlier Wednesday said it would no longer engage in talks with PAL management, accusing it of repeatedly rejecting its demands.
"We don't see the point in attending the meetings anymore," union president Bob Anduiza told Agence France-Presse. "The management has maintained its hardline position and the mediation proceedings have failed."
The union this month warned government of its plan for a strike if its demands for higher wages and an end to the mandatory retirement age of 45 for cabin crew, which the union said was discriminatory.
Villaluna said that PAL's agreement to increase the retirement age from 40 to 45 years old was not illegal or immoral.
"PAL maintains that while the early retirement age is negotiable, it is by no means illegal nor immoral," Villaluna said.
She also said that there will be no layoffs under the proposed mixed crew scheme.
"Contrary to FASAP's claims, there will be no layoffs as a result of the mixed crew scheme. There will be no reduction in flight assignments and pay of international cabin attendants. Why is FASAP so adverse to the idea of their younger members earning a little more?" Villaluna asked.
At the same time, Villaluna urged FASAP to accept the P105-million offer of PAL. She said that the amount was not unreasonable based on the airline's losses over the last two years.
Nevertheless, Villaluna said PAL will ready emergency measures ahead of the planned strike.
"PAL would like to assure our passengers that a strike will not happen overnight. Management is asking DOLE to immediately step in to avert the strike and to protect the interests of the riding public," she added. With Agence France-Presse
PAL Urges DoLE to Avert Strike
By SAMUEL P. MEDENILLA
September 29, 2010, 8:12pm
Manila Bulletin
MANILA, Philippines – The Philippine Airlines (PAL) has asked the Department of Labor and Employment (DoLE) to intervene to avert the planned strike of the Flight Attendants' and Stewards' Association of the Philippines (FASAP).
“PAL would like to assure our passengers that a strike will not happen overnight. Management is asking DoLE to immediately step in to avert the strike and protect the interests of the riding public," PAL spokesperson Cielo Villaluna said.
Villaluna said the management of the country’s flag carrier was surprised with the decision of FASAP since it initially agreed to continue with negotiations until the end of the 30-day cooling period set by the National Conciliation and Mediation Board.
“It was upon DoLE's recommendation that PAL and the FASAP agreed to a recess and to meet again next week. PAL management was surprised by FASAP's sudden turnaround by announcing their decision to strike,” Villaluna said.
She explained that PAL agreed to increase the retirement age to 45 from 40 if the union would allow junior cabin crew members to fly international along with their senior counterparts.
“Contrary to FASAP's claims, there will be no layoffs as a result of the mixed crew scheme. There will also be no reduction in flight assignments and pay of international cabin attendants. Why is FASAP so averse to the idea of their younger members earning a little more?” Villaluna asked.
She added that PAL's early retirement age is benchmarked to other carriers in the region. “PAL maintains that while the early retirement age is negotiable, it is by no means illegal nor immoral,” she said.
She added that from day one, FASAP has not shown any intention to consider anything short of their demands. “A negotiation is like a two-way street; it's give and take. It's very difficult to deal and negotiate with a party who only wants things to go their way,” Villaluna stressed.
PAL is now considering emergency precautions and assured the public that its operations will not be affected in case FASAP will be push through with its strike.
September 29, 2010, 8:12pm
Manila Bulletin
MANILA, Philippines – The Philippine Airlines (PAL) has asked the Department of Labor and Employment (DoLE) to intervene to avert the planned strike of the Flight Attendants' and Stewards' Association of the Philippines (FASAP).
“PAL would like to assure our passengers that a strike will not happen overnight. Management is asking DoLE to immediately step in to avert the strike and protect the interests of the riding public," PAL spokesperson Cielo Villaluna said.
Villaluna said the management of the country’s flag carrier was surprised with the decision of FASAP since it initially agreed to continue with negotiations until the end of the 30-day cooling period set by the National Conciliation and Mediation Board.
“It was upon DoLE's recommendation that PAL and the FASAP agreed to a recess and to meet again next week. PAL management was surprised by FASAP's sudden turnaround by announcing their decision to strike,” Villaluna said.
She explained that PAL agreed to increase the retirement age to 45 from 40 if the union would allow junior cabin crew members to fly international along with their senior counterparts.
“Contrary to FASAP's claims, there will be no layoffs as a result of the mixed crew scheme. There will also be no reduction in flight assignments and pay of international cabin attendants. Why is FASAP so averse to the idea of their younger members earning a little more?” Villaluna asked.
She added that PAL's early retirement age is benchmarked to other carriers in the region. “PAL maintains that while the early retirement age is negotiable, it is by no means illegal nor immoral,” she said.
She added that from day one, FASAP has not shown any intention to consider anything short of their demands. “A negotiation is like a two-way street; it's give and take. It's very difficult to deal and negotiate with a party who only wants things to go their way,” Villaluna stressed.
PAL is now considering emergency precautions and assured the public that its operations will not be affected in case FASAP will be push through with its strike.
PAL Urges FASAP to Accept P105-M Offer
By EMMIE V. ABADILLA
Manila Bulletin
September 29, 2010, 3:59pm
MANILA, Philippines – The management of Philippine Airlines (PAL), led by its President Jaime Bautista, Tuesday (September 28, 2010) urged the Flight Attendants’ and Stewards’ Association of the Philippines (FASAP) to accept PAL’s P105-million economic offer as well as the proposed retirement age of 45 for those hired by the airline after November 2000.
The call was made at the resumption of conciliation talks between PAL management and FASAP at the Department of Labor and Employment (DoLE).
The tripartite conciliation conference is the fourth meeting since FASAP filed its notice of strike last September 9, 2010. Three conciliation conferences between both sides have been held under the auspices of DoLE.
“I wish to assure FASAP members that PAL management is not taking a hardline stance. Despite serious financial difficulties, the company bent backwards to provide FASAP members what it believes is a fair amount of pay increase and benefits that it can afford at this time,” Bautista stressed.
Saying that PAL is sincere in its efforts to put closure to the 2005-2010 CBA, Bautista is hopeful that FASAP will also show some degree of flexibility. “Nothing less than a true meeting of minds is needed to resolve the current impasse,” he said.
As of the last round of talks, agreements “in principle” were only on maternity-related benefits, and rice allowances amounting to P25-million. The agreement between both sides must be forged as a ‘‘package’’ in order to settle all economic, gender and retirement issues.
Bautista said P105 million from the original P80 million is PAL’s best offer given massive losses of US$312 million or over P15 billion in the last two years. Meanwhile, the early retirement age is ‘benchmarked’ on PAL’s major competitors in the region whose cabin crews are retired between the age of 35 and 45.
As a precondition to the change in retirement age to 45 from the current 40, PAL is pushing for the mixed crew complement. The set up will allow both international and domestic crews to work side-by-side.
‘‘By allowing domestic crews to fly international and international crews to fly domestic routes, we hope to achieve two things: 1) allow domestic crews to experience flying abroad to earn more in terms of per diems and other allowances; and 2) maximize utilization of PAL crew members, thus reducing need to hire more cabin attendants and therefore save on costs,’’ he explained.
Manila Bulletin
September 29, 2010, 3:59pm
MANILA, Philippines – The management of Philippine Airlines (PAL), led by its President Jaime Bautista, Tuesday (September 28, 2010) urged the Flight Attendants’ and Stewards’ Association of the Philippines (FASAP) to accept PAL’s P105-million economic offer as well as the proposed retirement age of 45 for those hired by the airline after November 2000.
The call was made at the resumption of conciliation talks between PAL management and FASAP at the Department of Labor and Employment (DoLE).
The tripartite conciliation conference is the fourth meeting since FASAP filed its notice of strike last September 9, 2010. Three conciliation conferences between both sides have been held under the auspices of DoLE.
“I wish to assure FASAP members that PAL management is not taking a hardline stance. Despite serious financial difficulties, the company bent backwards to provide FASAP members what it believes is a fair amount of pay increase and benefits that it can afford at this time,” Bautista stressed.
Saying that PAL is sincere in its efforts to put closure to the 2005-2010 CBA, Bautista is hopeful that FASAP will also show some degree of flexibility. “Nothing less than a true meeting of minds is needed to resolve the current impasse,” he said.
As of the last round of talks, agreements “in principle” were only on maternity-related benefits, and rice allowances amounting to P25-million. The agreement between both sides must be forged as a ‘‘package’’ in order to settle all economic, gender and retirement issues.
Bautista said P105 million from the original P80 million is PAL’s best offer given massive losses of US$312 million or over P15 billion in the last two years. Meanwhile, the early retirement age is ‘benchmarked’ on PAL’s major competitors in the region whose cabin crews are retired between the age of 35 and 45.
As a precondition to the change in retirement age to 45 from the current 40, PAL is pushing for the mixed crew complement. The set up will allow both international and domestic crews to work side-by-side.
‘‘By allowing domestic crews to fly international and international crews to fly domestic routes, we hope to achieve two things: 1) allow domestic crews to experience flying abroad to earn more in terms of per diems and other allowances; and 2) maximize utilization of PAL crew members, thus reducing need to hire more cabin attendants and therefore save on costs,’’ he explained.
Tuesday, September 28, 2010
Budget carrier tops PAL in domestic, int’l passengers
Neil Jerome C. Morales
Posted on 09:56 PM, September 28, 2010
BusinessWorld
Posted on 09:56 PM, September 28, 2010
BusinessWorld
BUDGET carrier Cebu Pacific said yesterday it remained the country’s top airline in the first half, beating Lucio C. Tan-led Philippine Airlines (PAL) in domestic and international operations.
New routes and an improved fleet will allow the Gokongwei-led airline to maintain its standing for the rest of the year, an official said.
“Based on the Philippine Civil Aviation Board’s official report covering the period of January to June 2010, Cebu Pacific flew 5.096 million passengers for combined domestic and international traffic, 214,416 passengers more than Philippine Airlines,” Cebu Pacific said.
Flag carrier PAL carried 4,882,471 passengers; Air Philippines Express flew 667,686; Zest Air, formerly known as Asian Spirit, had 623,529 passengers; and Seair flew 132,638, it added.
“Our continued expansion in Asia and in the Philippines [and] our trademark low fares [have] stimulated travel and tourism,” Candice A. Iyog, vice-president for marketing and distribution of Cebu Pacific, said in the same statement.
“It also enabled affordable and accessible business travel opportunities for many small and medium enterprises,” she added.
In the first half, Cebu Pacific said it cornered 48.7% of the domestic flight market.
The company attributed growth in its international passenger base to the addition of flights to Osaka, Seoul (Incheon), Singapore, Hong Kong, Shanghai, and Macau.
“We expect to further boost our combined domestic and international traffic in the last quarter of the year as we take delivery of three brand-new Airbus A320 aircraft,” Ms. Iyog said.
“These aircraft will be used to mount additional flights to Kota Kinabalu, Taipei, Kuala Lumpur, Jakarta and Seoul,” she added.
Cebu Air, the owner and operator of Cebu Pacific, will list in the local bourse next month. A primary offer of 15% to 16% of shares should raise $75-80 million, while a secondary offer by JG Summit Holdings, Inc., the firm’s major stockholder, should raise an additional $400 million to $500 million.
The amount Cebu Air will raise from the initial public offering will be used to make a down payment on planes it will acquire this year until 2014.
Cebu Pacific said it operates the youngest aircraft fleet in the country with 10 Airbus A319, 11 Airbus A320 and 8 ATR 72-500 aircraft and will take delivery of three brand new A320 aircraft in the last quarter.
It also claims to operate “the most extensive network in the country with 33 domestic and 16 international destinations.”
Cebu Pacific reported P23.3 billion in revenues and P2.1 billion in profits in 2009.
In contrast, PAL has been locked in labor disputes in the past few months, forcing the flag carrier to cancel and merge flights and cut destinations.
Officials of PAL were not immediately available for comment. --
PAL asks Fasap to accept proposal
Tuesday, 28 September 2010 12:46 Lenie Lectura / Reporter
BusinessMirror
THE management of Philippine Airlines (PAL) on Tuesday appealed to the Flight Attendants’ and Stewards’ Association of the Philippines (Fasap) to seriously consider and accept the P105-million economic offer as well as the proposed retirement age of 45 for those hired by the airline after November 2000.
In a statement, PAL president Jaime Bautista said this call was made at the resumption of conciliation talks between PAL management and Fasap at the Department of Labor and Employment. The tripartite conciliation conference is the fourth meeting since Fasap filed a notice of strike on September 9. Three conciliation conferences have been held.
“I wish to assure Fasap members that the PAL management is not taking a hard-line stance. Despite serious financial difficulties, the company bent backwards to provide Fasap members what it believes is a fair amount of pay increase and benefits that it can afford at this time,” Bautista said.
In a recent meeting, both parties agreed in principle to expand maternity-related benefits and rice allowances amounting to P25 million. The agreement between both sides must be forged as a “package”—in order to settle all economic, gender and retirement issues.
As a precondition to the change in retirement age to 45 from the current 40, PAL is pushing for a mixed crew complement. “By allowing domestic crews to fly international and international crews to fly domestic routes, we hope to achieve two things—allow domestic crews to experience flying abroad to earn more in terms of per diems and other allowances; and maximize the utilization of PAL crew members, thus reducing the need to hire more cabin attendants and therefore save on costs,” Bautista said.
BusinessMirror
THE management of Philippine Airlines (PAL) on Tuesday appealed to the Flight Attendants’ and Stewards’ Association of the Philippines (Fasap) to seriously consider and accept the P105-million economic offer as well as the proposed retirement age of 45 for those hired by the airline after November 2000.
In a statement, PAL president Jaime Bautista said this call was made at the resumption of conciliation talks between PAL management and Fasap at the Department of Labor and Employment. The tripartite conciliation conference is the fourth meeting since Fasap filed a notice of strike on September 9. Three conciliation conferences have been held.
“I wish to assure Fasap members that the PAL management is not taking a hard-line stance. Despite serious financial difficulties, the company bent backwards to provide Fasap members what it believes is a fair amount of pay increase and benefits that it can afford at this time,” Bautista said.
In a recent meeting, both parties agreed in principle to expand maternity-related benefits and rice allowances amounting to P25 million. The agreement between both sides must be forged as a “package”—in order to settle all economic, gender and retirement issues.
As a precondition to the change in retirement age to 45 from the current 40, PAL is pushing for a mixed crew complement. “By allowing domestic crews to fly international and international crews to fly domestic routes, we hope to achieve two things—allow domestic crews to experience flying abroad to earn more in terms of per diems and other allowances; and maximize the utilization of PAL crew members, thus reducing the need to hire more cabin attendants and therefore save on costs,” Bautista said.
Monday, September 27, 2010
Airline ‘cost cutting’ for survival—PAL
INQUIRER.net
09/27/2010
09/27/2010
MANILA, Philippines—The flag carrier’s cost-cutting measures like crew reduction and its planned spin-off of non-core units are major initiatives to ensure the airline's survival, the Philippine Airlines said in a news release.
PAL spokesperson Cielo Villaluna said funds saved from belt-tightening efforts are earmarked for payment of maturing dollar obligations, fuel costs, salaries, aircraft maintenance, and other expenses.
To continue operating, she said the flag carrier needs approximately $230 million annually. About half of this must come from cost savings, while the other 50 percent would be raised through cash generation activities like aggressive sales and marketing efforts, she said.
Following huge losses due to the global recession and other factors beyond PAL's control, Villaluna said all of the airline's departments are mandated to be more cost-efficient.
She explained that cabin crew reduction is just one of many cost-cutting measures.
"The cabin crew union demands that funds saved from manpower reduction should be equally divided among them. But this, unfortunately, is not the aim of the whole exercise. If we heed their call to give them the savings, we may have satisfied crew members today but no airline to speak of in the long term," she said.
Last July, cabin crew complement in PAL’s Boeing 747 aircraft was reduced to 16 from 18. Villaluna said this is still one crew higher than the minimum safety requirement of 15 crews for a B747 as mandated by international safety standards and by the Civil Aviation Authority of the Philippines.
Since the program’s start last July 1, Villaluna said PAL’s Cabin Services Department has not received any complaints about service quality, proof that the airline’s dedicated staff have been able to meet passenger expectations despite the reduced “manning” complement.
“Contrary to the cabin crew union’s claim, there has been no dimunition of employee rights or benefits. They work a little bit more for the same pay, which simply means more efficiency,” she said.
"Estimated savings from crew reduction as measured by our Cabin Services is about P70 million a year, not P141 million as claimed by the Flight Attendants' and Stewards' Association of the Philippines," she added.
Most global airlines are still recovering from the global recession that caused a slowdown in travel. PAL is not alone in efforts to cut costs to be more efficient, Villaluna stressed.
Despite better-than-expected passenger traffic in the first semester, she said PAL is still strictly adhering to its survival plan that was crafted after the airline lost more than $312 million in the last two years. "The survival plan became imperative especially after the airline's equity dipped to just over $1 million in February 2010," she explained.
“Programs like crew reduction are being implemented as a management prerogative. We informed the crew union beforehand as a matter of professional courtesy,” she said.
Villaluna said another justification for the reduced cabin crew complement is the reconfiguration of PAL’s long-range planes. “In keeping with global trends, most of PAL’s wide-bodied aircraft used for Trans-Pacific flights have been reconfigured to bi-class, with no more First Class section,” she said.
PAL and its union of flight attendants are in a labor dispute over the company’s “cost-reduction” measures.
PAL banking on staff cuts to survive
Manila Standard Today
September 27, 2010
by Jeremiah F. de Guzman
PHILIPPINE Airlines must save about $115 million a year from crew reduction and its planned spin-off of non-core units to continue operating, the company said over the weekend.
The carrier said it needed about $230 million a year to operate, and 50 percent of that money must be generated from cost savings.
The money saved from the airline’s belt-tightening efforts had already been allocated for maturing dollar debt, fuel costs, salaries, aircraft maintenance and other expenses, spokeswoman Cielo Villaluna said.
The airline earlier said it had about $1 billion in debt as of March 2010, down from about $2.3 billion in 1998, when it entered corporate rehabilitation.
In June, the company paid $46 million in principal debt and was required to pay $10 million more every month.
“The cabin crew union demands that funds saved from manpower reduction should be equally divided among them,” Villaluna said.
“If we heed their call to give them the savings, we may have satisfied crew members today but no airline to speak of in the long term.”
The cabin crew in the airline’s Boeing 747 aircraft was reduced to 16 from 18 in July, which was still one crew member higher than the minimum requirement of 15 crew members mandated by international safety standards and the Civil Aviation Authority of the Philippines, Villaluna said.
She said the savings from that reduction were about P70 million, and not P141 million as claimed by the cabin crew union.
Since the crew-reduction program started, the carrier’s cabin services department had not received any complaints about service quality, which showed that the airline’s dedicated staff had been able to meet passenger expectations.
“Contrary to the cabin crew union’s claim, there has been no diminution of employee rights or benefits,” Villaluna said.
“They work a little bit more for the same pay, which simply means more efficiency.”
Despite improving traffic and revenue in the first half of the year, Villaluna said, the airline was still strictly adhering to its survival plan, which was crafted after it incurred more than $312 million in losses in the past two years.
“The survival plan became imperative especially after the airline’s equity dipped to just over $1 million in February 2010,” she said.
The airline reported a total comprehensive income of $31.6 million in its April to June 2010 peak months, down 11 percent from around $35.5 million in the same period last year.
Revenue for the three months ended June 30 rose 30 percent to $426.7 million from $327.7 million.
Total expenses grew 37 percent to $391.6 million from $285.5 million as fuel costs pushed up operational expenses.
The airline reported a net comprehensive loss of $14.4 million in the fiscal year ending March 2010 against $297.8 million the previous year.
September 27, 2010
by Jeremiah F. de Guzman
PHILIPPINE Airlines must save about $115 million a year from crew reduction and its planned spin-off of non-core units to continue operating, the company said over the weekend.
The carrier said it needed about $230 million a year to operate, and 50 percent of that money must be generated from cost savings.
The money saved from the airline’s belt-tightening efforts had already been allocated for maturing dollar debt, fuel costs, salaries, aircraft maintenance and other expenses, spokeswoman Cielo Villaluna said.
The airline earlier said it had about $1 billion in debt as of March 2010, down from about $2.3 billion in 1998, when it entered corporate rehabilitation.
In June, the company paid $46 million in principal debt and was required to pay $10 million more every month.
“The cabin crew union demands that funds saved from manpower reduction should be equally divided among them,” Villaluna said.
“If we heed their call to give them the savings, we may have satisfied crew members today but no airline to speak of in the long term.”
The cabin crew in the airline’s Boeing 747 aircraft was reduced to 16 from 18 in July, which was still one crew member higher than the minimum requirement of 15 crew members mandated by international safety standards and the Civil Aviation Authority of the Philippines, Villaluna said.
She said the savings from that reduction were about P70 million, and not P141 million as claimed by the cabin crew union.
Since the crew-reduction program started, the carrier’s cabin services department had not received any complaints about service quality, which showed that the airline’s dedicated staff had been able to meet passenger expectations.
“Contrary to the cabin crew union’s claim, there has been no diminution of employee rights or benefits,” Villaluna said.
“They work a little bit more for the same pay, which simply means more efficiency.”
Despite improving traffic and revenue in the first half of the year, Villaluna said, the airline was still strictly adhering to its survival plan, which was crafted after it incurred more than $312 million in losses in the past two years.
“The survival plan became imperative especially after the airline’s equity dipped to just over $1 million in February 2010,” she said.
The airline reported a total comprehensive income of $31.6 million in its April to June 2010 peak months, down 11 percent from around $35.5 million in the same period last year.
Revenue for the three months ended June 30 rose 30 percent to $426.7 million from $327.7 million.
Total expenses grew 37 percent to $391.6 million from $285.5 million as fuel costs pushed up operational expenses.
The airline reported a net comprehensive loss of $14.4 million in the fiscal year ending March 2010 against $297.8 million the previous year.
PAL sets cost-cutting to survive
Business Mirror
September 27, 2010
Philippine Airlines (PAL) said that cost cutting measures like crew reduction and its planned spin-off of non-core units are major initiatives to ensure the airline’s survival.
In a news release, PAL spokesperson Cielo Villaluna said funds saved from belt tightening efforts are earmarked for payment of maturing dollar obligations, fuel costs, salaries, aircraft maintenance and other expenses.
To continue operating, she said the flag carrier needs approximately $230-million annually. About half of this must come from cost savings, while the other 50 percent would be raised through cash generation activities like aggressive sales and marketing efforts, she said.
Following huge losses due to the global recession and other factors beyond PAL’s control, Villaluna said all of the airline’s departments are mandated to be more cost-efficient.
She explained that cabin crew reduction is just one of many cost-cutting measures. "The cabin crew union demands that funds saved from manpower reduction should be equally divided among them. But this, unfortunately, is not the aim of the whole exercise. If we heed their call to give them the savings, we may have satisfied crew members today but no airline to speak of in the long term," she said.
Last July, cabin crew complement in PAL’s Boeing 747 aircraft was reduced to 16 from 18. Villaluna said this is still one crew higher than the minimum safety requirement of 15 crews for a B747 as mandated by international safety standards and by the Civil Aviation Authority of the Philippines.
Since the program’s start last July 1, Villaluna said PAL’s Cabin Services Department has not received any complaints about service quality, proof that the airline’s dedicated staff have been able to meet passenger expectations despite the reduced "manning" complement.
"Contrary to the cabin crew union’s claim, there has been no dimunition of employee rights or benefits. They work a little bit more for the same pay, which simply means more efficiency," she said.
September 27, 2010
Philippine Airlines (PAL) said that cost cutting measures like crew reduction and its planned spin-off of non-core units are major initiatives to ensure the airline’s survival.
In a news release, PAL spokesperson Cielo Villaluna said funds saved from belt tightening efforts are earmarked for payment of maturing dollar obligations, fuel costs, salaries, aircraft maintenance and other expenses.
To continue operating, she said the flag carrier needs approximately $230-million annually. About half of this must come from cost savings, while the other 50 percent would be raised through cash generation activities like aggressive sales and marketing efforts, she said.
Following huge losses due to the global recession and other factors beyond PAL’s control, Villaluna said all of the airline’s departments are mandated to be more cost-efficient.
She explained that cabin crew reduction is just one of many cost-cutting measures. "The cabin crew union demands that funds saved from manpower reduction should be equally divided among them. But this, unfortunately, is not the aim of the whole exercise. If we heed their call to give them the savings, we may have satisfied crew members today but no airline to speak of in the long term," she said.
Last July, cabin crew complement in PAL’s Boeing 747 aircraft was reduced to 16 from 18. Villaluna said this is still one crew higher than the minimum safety requirement of 15 crews for a B747 as mandated by international safety standards and by the Civil Aviation Authority of the Philippines.
Since the program’s start last July 1, Villaluna said PAL’s Cabin Services Department has not received any complaints about service quality, proof that the airline’s dedicated staff have been able to meet passenger expectations despite the reduced "manning" complement.
"Contrary to the cabin crew union’s claim, there has been no dimunition of employee rights or benefits. They work a little bit more for the same pay, which simply means more efficiency," she said.
PAL Needs $230 Million a Year to Survive, Stay in Operations
By EMMIE V. ABADILLA
September 27, 2010, 7:02pm
Manila Bulletin
September 27, 2010, 7:02pm
Manila Bulletin
MANILA, Philippines – Philippine Airlines (PAL) needs US$230 million yearly, half of which must come from cost savings, the rest from sales and marketing. Hence, the flag carrier has to reduce its manpower and spin-off of non-core units in order to survive, stressed PAL spokesperson Cielo Villaluna.
Following huge losses due to the global recession and other factors beyond PAL's control, all of the airline's departments have to be more cost-efficient. Funds saved from belt tightening efforts are earmarked for payment of maturing dollar obligations, fuel costs, salaries, aircraft maintenance and other expenses.
Cabin crew reduction is just one of many cost-cutting measures, she pointed out. "The cabin crew union demands that funds saved from manpower reduction should be equally divided among them. But this, unfortunately, is not the aim of the whole exercise. If we heed their call to give them the savings, we may have satisfied crew members today but no airline to speak of in the long term."
Last July, cabin crew complement in PAL’s Boeing 747 aircraft was reduced to 16 from 18. However, this is still one crew higher than the minimum safety requirement of 15 crews for a B747 as mandated by international safety standards and by the Civil Aviation Authority of the Philippines, according to Villaluna.
Since the program’s start last July 1, PAL’s Cabin Services Department has not received any complaints about service quality, proof that the airline’s dedicated staff have been able to meet passenger expectations despite the reduced 'manning' complement.
“Contrary to the cabin crew union’s claim, there has been no diminution of employee rights or benefits. They work a little bit more for the same pay, which simply means more efficiency,” she noted. "Estimated savings from crew reduction as measured by our Cabin Services is about P70 million a year, not P141-million as claimed by the Flight Attendants' and Stewards' Association of the Philippines."
Most global airlines are still recovering from the global recession that caused a slowdown in travel. PAL is not alone in efforts to cut costs to be more efficient, the flag carrier’s spokesperson reiterated.
Despite better-than-expected passenger traffic in the first semester, PAL is still strictly adhering to its survival plan that was crafted after the airline lost more than US$312 million in the last two years. "The survival plan became imperative especially after the airline's equity dipped to just over US$1 million in February 2010," she explained.
“Programs like crew reduction are being implemented as a management prerogative. We informed the crew union beforehand as a matter of professional courtesy,” Villaluna went on.
PAL to Investigate Michael’s Complaint
By KAYE VILLAGOMEZ
September 27, 2010, 3:36pm
Manila Bulletin
MANILA, Philippines - After having been asked to step down from a flight to the US, comedian Michael V told GMA News on Friday that Philippine Airlines (PAL) has responded to his complaint.
It will be recalled that Michael V, together with his family, was scheduled to fly to the United States with the “Eat Bulaga” co-hosts for a show when a ground crew at the Ninoy Aquino International Airport (NAIA) stopped Michael, his wife (a former stewardess) and child from boarding.
“My wife already warned me that there is a chance we will not be allowed to leave the country because I had sore eyes and it has affected my wife and child,” Michael who is Bethoven Bunagan in real life told “24 Oras” in Filipino.
But after having passed through the airport’s medical quarantine, Michael and his family were given the green light. “We were checked by the doctor and were allowed to board the plane. Before the flight took off, a ground personnel told the pilot of the condition and we were asked to step down from the plane,” he related.
The “Bubble Gang” funnyman said he did not mind if he was not allowed to fly. What he thought was offensive was the faulty NAIA policy that allowed them to board the plane only to be asked to step down.
“There were flight attendants who said there had always been problems when it comes to cases like ours,” he related.
The comedian did not find it amusing when one of the ground employees even posted the incident in a social networking site.
Meanwhile, an airline representative informed the Kapuso actor that an investigation of the incident is being undertaken. Representatives from PAL confirmed reports that the airline office received the comedian’s complaint and related that such safety measures are implemented for the safety of other passengers.
PAL also said at least 10 passengers with sore eyes are not allowed to board their plane each day.
September 27, 2010, 3:36pm
Manila Bulletin
MANILA, Philippines - After having been asked to step down from a flight to the US, comedian Michael V told GMA News on Friday that Philippine Airlines (PAL) has responded to his complaint.
It will be recalled that Michael V, together with his family, was scheduled to fly to the United States with the “Eat Bulaga” co-hosts for a show when a ground crew at the Ninoy Aquino International Airport (NAIA) stopped Michael, his wife (a former stewardess) and child from boarding.
“My wife already warned me that there is a chance we will not be allowed to leave the country because I had sore eyes and it has affected my wife and child,” Michael who is Bethoven Bunagan in real life told “24 Oras” in Filipino.
But after having passed through the airport’s medical quarantine, Michael and his family were given the green light. “We were checked by the doctor and were allowed to board the plane. Before the flight took off, a ground personnel told the pilot of the condition and we were asked to step down from the plane,” he related.
The “Bubble Gang” funnyman said he did not mind if he was not allowed to fly. What he thought was offensive was the faulty NAIA policy that allowed them to board the plane only to be asked to step down.
“There were flight attendants who said there had always been problems when it comes to cases like ours,” he related.
The comedian did not find it amusing when one of the ground employees even posted the incident in a social networking site.
Meanwhile, an airline representative informed the Kapuso actor that an investigation of the incident is being undertaken. Representatives from PAL confirmed reports that the airline office received the comedian’s complaint and related that such safety measures are implemented for the safety of other passengers.
PAL also said at least 10 passengers with sore eyes are not allowed to board their plane each day.
PAL says cost cutting necessary for survival
(The Philippine Star) Updated September 27, 2010 12:00 AM
MANILA, Philippines - Philippine Airlines (PAL) said cost cutting measures like crew reduction and its planned spin-off of non-core units are major initiatives to ensure the airline’s survival.
In a statement, PAL spokesperson Cielo Villaluna said funds saved from belt tightening efforts are earmarked for payment of maturing dollar obligations, fuel costs, salaries, aircraft maintenance and other expenses.
To continue operating, she said the flag carrier needs approximately $230 million annually. About half of this must come from cost savings, while the other 50 percent would be raised through cash generation activities like aggressive sales and marketing efforts, she said.
Following huge losses due to the global recession and other factors beyond PAL’s control, Villaluna said all of the airline’s departments are mandated to be more cost-efficient.
She explained that cabin crew reduction is just one of many cost-cutting measures. “The cabin crew union demands that funds saved from manpower reduction should be equally divided among them. But this, unfortunately, is not the aim of the whole exercise. If we heed their call to give them the savings, we may have satisfied crew members today but no airline to speak of in the long term,” she said.
Last July, cabin crew complement in PAL’s Boeing 747 aircraft was reduced to 16 from 18. Villaluna said this is still one higher than the minimum safety requirement of 15 crew members for a B747 as mandated by international safety standards and by the Civil Aviation Authority of the Philippines.
Since the program’s start last July 1, Villaluna said PAL’s cabin services department has not received any complaints about service quality, proof that the airline’s dedicated staff have been able to meet passenger expectations despite the reduced ‘manning’ complement.
“Contrary to the cabin crew union’s claim, there has been no dimunition of employee rights or benefits. They work a little bit more for the same pay, which simply means more efficiency,” she said.
“Estimated savings from crew reduction as measured by our cabin services is about P70 million a year, not P141 million as claimed by the Flight Attendants’ and Stewards’ Association of the Philippines,” she added.
Most global airlines are still recovering from the global recession that caused a slowdown in travel. PAL is not alone in trying to cut costs to be more efficient, Villaluna stressed.
Despite better-than-expected passenger traffic in the first semester, she said PAL is still strictly adhering to its survival plan that was crafted after the airline lost more than $312 million in the last two years. “The survival plan became imperative especially after the airline’s equity dipped to just over $1 million in February 2010,” she explained.
“Programs like crew reduction are being implemented as a management prerogative. We informed the crew union beforehand as a matter of professional courtesy,” she said.
Villaluna said another justification for the reduced cabin crew complement is the reconfiguration of PAL’s long-range planes. “In keeping with global trends, most of PAL’s wide-bodied aircraft used for Trans-Pacific flights have been reconfigured to bi-class – with no more First Class section,” she said.
Sunday, September 26, 2010
Get a free airline ticket for your birthday
INQUIRER.net
First Posted 09/26/2010
MANILA, Philippines—Until November 30 this year, birthday celebrators are in for a treat from Philippine Airlines: a free ticket on any domestic route for every similarly routed ticket purchased during the promotion period.
In a new promo dubbed “Halloween Trip and Treats for your Birthday,” PAL is offering a free domestic ticket to all those marking their natal day between September 16 and November 30, 2010.
To avail of the free tickets, birthday celebrators must purchase a revenue ticket between September 16 and 30, 2010. He or she should present proof of birthday along with the revenue ticket at any PAL ticket office and the complimentary ticket is immediately issued.
Both free and revenue tickets must reflect the same domestic route and class of service. The free ticket is for the birthday celebrator and cannot be given to another person. Both tickets must be used for travel between September 16 and November 30, 2010, except for a brief blackout period from October 28 to November 2, 2010.
PAL flies between Manila and 20 domestic destinations: Bacolod, Butuan, Cagayan de Oro, Cebu, Cotabato, Davao, Dipolog, Dumaguete, General Santos, Iloilo, Kalibo, Laoag, Legaspi, Ozamiz, Puerto Princesa, Roxas, Tacloban, Tagbilaran, and Zamboanga.
To avail of the promo, visit www.philippineairlines.com, any PAL ticket office or accredited travel agents. For inquiries and bookings, call PAL Reservations at (02) 855-8888 in Manila, (032) 340-0191 in Cebu and (082) 221-5513 in Davao.
First Posted 09/26/2010
MANILA, Philippines—Until November 30 this year, birthday celebrators are in for a treat from Philippine Airlines: a free ticket on any domestic route for every similarly routed ticket purchased during the promotion period.
In a new promo dubbed “Halloween Trip and Treats for your Birthday,” PAL is offering a free domestic ticket to all those marking their natal day between September 16 and November 30, 2010.
To avail of the free tickets, birthday celebrators must purchase a revenue ticket between September 16 and 30, 2010. He or she should present proof of birthday along with the revenue ticket at any PAL ticket office and the complimentary ticket is immediately issued.
Both free and revenue tickets must reflect the same domestic route and class of service. The free ticket is for the birthday celebrator and cannot be given to another person. Both tickets must be used for travel between September 16 and November 30, 2010, except for a brief blackout period from October 28 to November 2, 2010.
PAL flies between Manila and 20 domestic destinations: Bacolod, Butuan, Cagayan de Oro, Cebu, Cotabato, Davao, Dipolog, Dumaguete, General Santos, Iloilo, Kalibo, Laoag, Legaspi, Ozamiz, Puerto Princesa, Roxas, Tacloban, Tagbilaran, and Zamboanga.
To avail of the promo, visit www.philippineairlines.com, any PAL ticket office or accredited travel agents. For inquiries and bookings, call PAL Reservations at (02) 855-8888 in Manila, (032) 340-0191 in Cebu and (082) 221-5513 in Davao.
Cabin Crew Reduction to Ensure Survival – PAL
September 26, 2010, 5:06pm
Manila Bulletin
MANILA, Philippines – Philippine Airlines (PAL) is undertaking major initiatives like crew reduction and a planned spin-off of its non-core units to ensure survival, according to an airline official.
In a press statement, PAL spokesperson Cielo Villaluna said funds saved from belt-tightening efforts are earmarked for payment of maturing dollar obligations, fuel costs, salaries, aircraft maintenance, and other expenses.
To continue operating, the flag carrier needs approximately S$230-million annually, Villaluna said. About half of this must come from cost savings, while the other 50 percent would be raised through cash generation activities like aggressive sales and marketing efforts, she said.
Following huge losses due to the global recession and other factors beyond PAL's control, the airline's departments are mandated to be more cost-efficient, Villaluna said.
She explained that cabin crew reduction is just one of many cost-cutting measures.
“The cabin crew union demands that funds saved from manpower reduction should be equally divided among them. But this, unfortunately, is not the aim of the whole exercise. If we heed their call to give them the savings, we may have satisfied crew members today but no airline to speak of in the long term," she said.
Last July, the cabin crew complement in PAL’s Boeing 747 aircraft was reduced to 16 from 18. Villaluna said this is still one crew higher than the minimum safety requirement of 15 crew members for a B747 as mandated by international safety standards and by the Civil Aviation Authority of the Philippines.
Since the program’s start last July 1, Villaluna said PAL’s Cabin Services Department has not received any complaints about service quality, proof that the airline’s dedicated staff have been able to meet passenger expectations despite the reduced manning complement.
“Contrary to the cabin crew union’s claim, there has been no diminution of employee rights or benefits. They work a little bit more for the same pay, which simply means more efficiency,” she said.
“Estimated savings from crew reduction as measured by our Cabin Services is about P70-million a year, not P141-million as claimed by the Flight Attendants' and Stewards' Association of the Philippines," she added.
Most global airlines are still recovering from the global recession that caused a slowdown in travel. PAL is not alone in efforts to cut costs to be more efficient, Villaluna stressed.
Despite better-than-expected passenger traffic in the first semester, PAL is still strictly adhering to its survival plan that was crafted after the airline lost more than $312 million in the last two years, she said.
“The survival plan became imperative especially after the airline's equity dipped to just over $1 million in February 2010," she said.
“Programs like crew reduction are being implemented as a management prerogative. We informed the crew union beforehand as a matter of professional courtesy,” she said.
Villaluna said another justification for the reduced cabin crew complement is the reconfiguration of PAL’s long-range planes. “In keeping with global trends, most of PAL’s wide-bodied aircraft used for Trans-Pacific flights have been reconfigured to bi-class – with no more First Class section,” she said.
Manila Bulletin
MANILA, Philippines – Philippine Airlines (PAL) is undertaking major initiatives like crew reduction and a planned spin-off of its non-core units to ensure survival, according to an airline official.
In a press statement, PAL spokesperson Cielo Villaluna said funds saved from belt-tightening efforts are earmarked for payment of maturing dollar obligations, fuel costs, salaries, aircraft maintenance, and other expenses.
To continue operating, the flag carrier needs approximately S$230-million annually, Villaluna said. About half of this must come from cost savings, while the other 50 percent would be raised through cash generation activities like aggressive sales and marketing efforts, she said.
Following huge losses due to the global recession and other factors beyond PAL's control, the airline's departments are mandated to be more cost-efficient, Villaluna said.
She explained that cabin crew reduction is just one of many cost-cutting measures.
“The cabin crew union demands that funds saved from manpower reduction should be equally divided among them. But this, unfortunately, is not the aim of the whole exercise. If we heed their call to give them the savings, we may have satisfied crew members today but no airline to speak of in the long term," she said.
Last July, the cabin crew complement in PAL’s Boeing 747 aircraft was reduced to 16 from 18. Villaluna said this is still one crew higher than the minimum safety requirement of 15 crew members for a B747 as mandated by international safety standards and by the Civil Aviation Authority of the Philippines.
Since the program’s start last July 1, Villaluna said PAL’s Cabin Services Department has not received any complaints about service quality, proof that the airline’s dedicated staff have been able to meet passenger expectations despite the reduced manning complement.
“Contrary to the cabin crew union’s claim, there has been no diminution of employee rights or benefits. They work a little bit more for the same pay, which simply means more efficiency,” she said.
“Estimated savings from crew reduction as measured by our Cabin Services is about P70-million a year, not P141-million as claimed by the Flight Attendants' and Stewards' Association of the Philippines," she added.
Most global airlines are still recovering from the global recession that caused a slowdown in travel. PAL is not alone in efforts to cut costs to be more efficient, Villaluna stressed.
Despite better-than-expected passenger traffic in the first semester, PAL is still strictly adhering to its survival plan that was crafted after the airline lost more than $312 million in the last two years, she said.
“The survival plan became imperative especially after the airline's equity dipped to just over $1 million in February 2010," she said.
“Programs like crew reduction are being implemented as a management prerogative. We informed the crew union beforehand as a matter of professional courtesy,” she said.
Villaluna said another justification for the reduced cabin crew complement is the reconfiguration of PAL’s long-range planes. “In keeping with global trends, most of PAL’s wide-bodied aircraft used for Trans-Pacific flights have been reconfigured to bi-class – with no more First Class section,” she said.
Cabin Crew Reduction to Ensure Survival – PAL
Manila Bulletin
September 26, 2010, 5:06pm
MANILA, Philippines – Philippine Airlines (PAL) is undertaking major initiatives like crew reduction and a planned spin-off of its non-core units to ensure survival, according to an airline official.
In a press statement, PAL spokesperson Cielo Villaluna said funds saved from belt-tightening efforts are earmarked for payment of maturing dollar obligations, fuel costs, salaries, aircraft maintenance, and other expenses.
To continue operating, the flag carrier needs approximately S$230-million annually, Villaluna said. About half of this must come from cost savings, while the other 50 percent would be raised through cash generation activities like aggressive sales and marketing efforts, she said.
Following huge losses due to the global recession and other factors beyond PAL's control, the airline's departments are mandated to be more cost-efficient, Villaluna said.
She explained that cabin crew reduction is just one of many cost-cutting measures.
“The cabin crew union demands that funds saved from manpower reduction should be equally divided among them. But this, unfortunately, is not the aim of the whole exercise. If we heed their call to give them the savings, we may have satisfied crew members today but no airline to speak of in the long term," she said.
Last July, the cabin crew complement in PAL’s Boeing 747 aircraft was reduced to 16 from 18. Villaluna said this is still one crew higher than the minimum safety requirement of 15 crew members for a B747 as mandated by international safety standards and by the Civil Aviation Authority of the Philippines.
Since the program’s start last July 1, Villaluna said PAL’s Cabin Services Department has not received any complaints about service quality, proof that the airline’s dedicated staff have been able to meet passenger expectations despite the reduced manning complement.
“Contrary to the cabin crew union’s claim, there has been no diminution of employee rights or benefits. They work a little bit more for the same pay, which simply means more efficiency,” she said.
“Estimated savings from crew reduction as measured by our Cabin Services is about P70-million a year, not P141-million as claimed by the Flight Attendants' and Stewards' Association of the Philippines," she added.
Most global airlines are still recovering from the global recession that caused a slowdown in travel. PAL is not alone in efforts to cut costs to be more efficient, Villaluna stressed.
Despite better-than-expected passenger traffic in the first semester, PAL is still strictly adhering to its survival plan that was crafted after the airline lost more than $312 million in the last two years, she said.
“The survival plan became imperative especially after the airline's equity dipped to just over $1 million in February 2010," she said.
“Programs like crew reduction are being implemented as a management prerogative. We informed the crew union beforehand as a matter of professional courtesy,” she said.
Villaluna said another justification for the reduced cabin crew complement is the reconfiguration of PAL’s long-range planes. “In keeping with global trends, most of PAL’s wide-bodied aircraft used for Trans-Pacific flights have been reconfigured to bi-class – with no more First Class section,” she said.
September 26, 2010, 5:06pm
MANILA, Philippines – Philippine Airlines (PAL) is undertaking major initiatives like crew reduction and a planned spin-off of its non-core units to ensure survival, according to an airline official.
In a press statement, PAL spokesperson Cielo Villaluna said funds saved from belt-tightening efforts are earmarked for payment of maturing dollar obligations, fuel costs, salaries, aircraft maintenance, and other expenses.
To continue operating, the flag carrier needs approximately S$230-million annually, Villaluna said. About half of this must come from cost savings, while the other 50 percent would be raised through cash generation activities like aggressive sales and marketing efforts, she said.
Following huge losses due to the global recession and other factors beyond PAL's control, the airline's departments are mandated to be more cost-efficient, Villaluna said.
She explained that cabin crew reduction is just one of many cost-cutting measures.
“The cabin crew union demands that funds saved from manpower reduction should be equally divided among them. But this, unfortunately, is not the aim of the whole exercise. If we heed their call to give them the savings, we may have satisfied crew members today but no airline to speak of in the long term," she said.
Last July, the cabin crew complement in PAL’s Boeing 747 aircraft was reduced to 16 from 18. Villaluna said this is still one crew higher than the minimum safety requirement of 15 crew members for a B747 as mandated by international safety standards and by the Civil Aviation Authority of the Philippines.
Since the program’s start last July 1, Villaluna said PAL’s Cabin Services Department has not received any complaints about service quality, proof that the airline’s dedicated staff have been able to meet passenger expectations despite the reduced manning complement.
“Contrary to the cabin crew union’s claim, there has been no diminution of employee rights or benefits. They work a little bit more for the same pay, which simply means more efficiency,” she said.
“Estimated savings from crew reduction as measured by our Cabin Services is about P70-million a year, not P141-million as claimed by the Flight Attendants' and Stewards' Association of the Philippines," she added.
Most global airlines are still recovering from the global recession that caused a slowdown in travel. PAL is not alone in efforts to cut costs to be more efficient, Villaluna stressed.
Despite better-than-expected passenger traffic in the first semester, PAL is still strictly adhering to its survival plan that was crafted after the airline lost more than $312 million in the last two years, she said.
“The survival plan became imperative especially after the airline's equity dipped to just over $1 million in February 2010," she said.
“Programs like crew reduction are being implemented as a management prerogative. We informed the crew union beforehand as a matter of professional courtesy,” she said.
Villaluna said another justification for the reduced cabin crew complement is the reconfiguration of PAL’s long-range planes. “In keeping with global trends, most of PAL’s wide-bodied aircraft used for Trans-Pacific flights have been reconfigured to bi-class – with no more First Class section,” she said.
Friday, September 24, 2010
PAL, cabin-crew union ‘agree’ to expand benefits
Friday, 24 September 2010 00:00
BY DARWIN G. AMOJELAR SENIOR REPORTER
THE MANILA TIMES
TALKS between Philippine Airlines (PAL) management and its cabin-crew union for a salary hike and changes in retirement age were deadlocked again, but both parties “agreed in principle” to expand maternity benefits.
In a statement, Cielo Villaluna, PAL spokesman, on Thursday said that the flag-carrier offered an additional P25 million in their rice allowance for 2007 to 2010, on top of the original P80 million one-time economic package for members of the Flight Attendants and Stewards Association of the Philippines (Fasap).
The offer brought to P105-million the total economic package being offered to Fasap, Villaluna added.
She, however, said that approval of the package would depend on signing by PAL and Fasap of a final agreement that puts to rest all economic, gender and retirement issues under discussion.
“The offer was made in good faith, proof that PAL is sincere in its efforts to settle and finally put closure to its 2005 to 2010 Collective Bargaining Agreement [CBA] with Fasap,” Villaluna said.
Despite significant strides during Wednesday’s five-hour talks between the PAL management and Fasap, according to the PAL spokesman, “sticky” points remained such as the compensation package and changes in the retirement age of the flag-carrier’s crew.
Villaluna said that PAL could only offer P105 million, the flag-carrier having suffered huge losses in the last two years.
She added that the flag-carrier was willing to change the retirement age to 45 from 40 for both male and female crew, on condition that Fasap agree to a mixed-crew complement—a work arrangement allowing younger cabin crew to fly international routes together with more senior attendants, and the senior crew taking domestic flight assignments.
PAL said that junior cabin attendants are well-trained and capable of serving international flights but provisions in their CBA prevent them from doing so.
Current work rules restricting the flight assignments of younger flight attendants were inserted in the previous CBA by Fasap itself.
Because of this insertion, Villaluna said, only senior cabin crew enjoys higher perks and per diems when they fly international routes.
“We want to introduce changes in the current work rules so that both young and senior cabin attendants can serve in domestic and international routes,” she added.
“PAL hopes that the union would agree to the proposed changes for the sake of the younger crew.
Otherwise, it would appear that some Fasap members are discriminating against their own kind,” Villaluna said.
When sought for comment, Andy Ortega, Fasap vice president, said, “PAL is muddling the issues. PAL’s request to allow younger cabin crew to fly international [routes] is another issue.”
What mattered more, Ortega added, was increasing cabin crew salary and raising the retirement age.
Fasap has a pending notice of strike before the Department of Labor and Employment and expects to go on strike by end-October.
The PAL Employment Association (Palea), meanwhile, has asked the Labor department to reject the planned mass retrenchment of its members.
BY DARWIN G. AMOJELAR SENIOR REPORTER
THE MANILA TIMES
TALKS between Philippine Airlines (PAL) management and its cabin-crew union for a salary hike and changes in retirement age were deadlocked again, but both parties “agreed in principle” to expand maternity benefits.
In a statement, Cielo Villaluna, PAL spokesman, on Thursday said that the flag-carrier offered an additional P25 million in their rice allowance for 2007 to 2010, on top of the original P80 million one-time economic package for members of the Flight Attendants and Stewards Association of the Philippines (Fasap).
The offer brought to P105-million the total economic package being offered to Fasap, Villaluna added.
She, however, said that approval of the package would depend on signing by PAL and Fasap of a final agreement that puts to rest all economic, gender and retirement issues under discussion.
“The offer was made in good faith, proof that PAL is sincere in its efforts to settle and finally put closure to its 2005 to 2010 Collective Bargaining Agreement [CBA] with Fasap,” Villaluna said.
Despite significant strides during Wednesday’s five-hour talks between the PAL management and Fasap, according to the PAL spokesman, “sticky” points remained such as the compensation package and changes in the retirement age of the flag-carrier’s crew.
Villaluna said that PAL could only offer P105 million, the flag-carrier having suffered huge losses in the last two years.
She added that the flag-carrier was willing to change the retirement age to 45 from 40 for both male and female crew, on condition that Fasap agree to a mixed-crew complement—a work arrangement allowing younger cabin crew to fly international routes together with more senior attendants, and the senior crew taking domestic flight assignments.
PAL said that junior cabin attendants are well-trained and capable of serving international flights but provisions in their CBA prevent them from doing so.
Current work rules restricting the flight assignments of younger flight attendants were inserted in the previous CBA by Fasap itself.
Because of this insertion, Villaluna said, only senior cabin crew enjoys higher perks and per diems when they fly international routes.
“We want to introduce changes in the current work rules so that both young and senior cabin attendants can serve in domestic and international routes,” she added.
“PAL hopes that the union would agree to the proposed changes for the sake of the younger crew.
Otherwise, it would appear that some Fasap members are discriminating against their own kind,” Villaluna said.
When sought for comment, Andy Ortega, Fasap vice president, said, “PAL is muddling the issues. PAL’s request to allow younger cabin crew to fly international [routes] is another issue.”
What mattered more, Ortega added, was increasing cabin crew salary and raising the retirement age.
Fasap has a pending notice of strike before the Department of Labor and Employment and expects to go on strike by end-October.
The PAL Employment Association (Palea), meanwhile, has asked the Labor department to reject the planned mass retrenchment of its members.
PAL to save P141M on cabin crew cutback—Fasap
By Jocelyn R. Uy
Philippine Daily Inquirer
First Posted 09/24/2010
MANILA, Philippines—The flight stewards union of the Philippine Airlines on Friday said the flag carrier would reap more than P141 million in savings for cutting down the number of cabin crew members per aircraft, an amount bigger than the financial package it was offering to flight attendants.
In a statement, the Flight Attendants and Stewards' Association of the Philippines claimed that the reduction program was being implemented "at the expense" of flight attendants now working double-time due to the small number of crew members serving per aircraft.
"The reductions scheme takes away food on the flight attendants' table, making them work more for less pay," said Fasap president Bob Anduiza in a statement Friday.
The program was enforced starting July despite strong objections from FASAP, he noted.
Citing documents detailing PAL's plans to reduce Cabin Crew Complement per aircraft type, FASAP on Friday said such scheme would result to a "whopping" P141,306,729.17 savings yearly for the national carrier.
"[This figure] is certainly several times bigger than the financial amount PAL is offering to the 1,542 flight attendants to cover for a three-year Collective Bargaining Agreement," said Anduiza.
PAL has increased its economic package offer from P80 million to P105 million. But Fasap was demanding for a P300 million economic package.
The cabin crew union has threatened to hold a strike against PAL after both camps failed to reach an agreement at the Department of Labor and Employment.
Among many other contentions that have yet to be settled include moving the retirement age of flight attendants from 40 to 60 years old, raising pay to be at par with that offered by foreign carriers and providing for a paid maternity leave.
Under the reduction scheme, a 400-seater plane, which previously operated with 18 cabin crew members, now only carries 12 flight attendants to serve passengers. The number of cabin crew in smaller aircraft has also been trimmed down.
Anduiza said the scheme was also shortchanging the riding public who pay a steep price for PAL's tickets "but will now get less service."
"The riding public should know about this because PAL has recently been trying to paint a picture that they are being reasonable in dealing with Fasap," he said.
Philippine Daily Inquirer
First Posted 09/24/2010
MANILA, Philippines—The flight stewards union of the Philippine Airlines on Friday said the flag carrier would reap more than P141 million in savings for cutting down the number of cabin crew members per aircraft, an amount bigger than the financial package it was offering to flight attendants.
In a statement, the Flight Attendants and Stewards' Association of the Philippines claimed that the reduction program was being implemented "at the expense" of flight attendants now working double-time due to the small number of crew members serving per aircraft.
"The reductions scheme takes away food on the flight attendants' table, making them work more for less pay," said Fasap president Bob Anduiza in a statement Friday.
The program was enforced starting July despite strong objections from FASAP, he noted.
Citing documents detailing PAL's plans to reduce Cabin Crew Complement per aircraft type, FASAP on Friday said such scheme would result to a "whopping" P141,306,729.17 savings yearly for the national carrier.
"[This figure] is certainly several times bigger than the financial amount PAL is offering to the 1,542 flight attendants to cover for a three-year Collective Bargaining Agreement," said Anduiza.
PAL has increased its economic package offer from P80 million to P105 million. But Fasap was demanding for a P300 million economic package.
The cabin crew union has threatened to hold a strike against PAL after both camps failed to reach an agreement at the Department of Labor and Employment.
Among many other contentions that have yet to be settled include moving the retirement age of flight attendants from 40 to 60 years old, raising pay to be at par with that offered by foreign carriers and providing for a paid maternity leave.
Under the reduction scheme, a 400-seater plane, which previously operated with 18 cabin crew members, now only carries 12 flight attendants to serve passengers. The number of cabin crew in smaller aircraft has also been trimmed down.
Anduiza said the scheme was also shortchanging the riding public who pay a steep price for PAL's tickets "but will now get less service."
"The riding public should know about this because PAL has recently been trying to paint a picture that they are being reasonable in dealing with Fasap," he said.
PAL offers P105-million package to attendants, stewards group
(The Philippine Star) Updated September 24, 2010 12:00 AM
Rudy Santos, Mary Ann Reyes, Mayen Jaymalin
MANILA, Philippines - The management of Philippine Airlines (PAL) has offered a P105-million economic package to the restive Flight Attendants and Stewards Association of the Philippines (FASAP).
Both “agreed in principle” to expand maternity benefits but remained deadlocked over the issue of compensation and the retirement age.
PAL spokesperson Cielo Villaluna said the original offer was P80 million. PAL had offered a P25-million increase in their rice allowance for the period of 2007 to 2010 which now brings totals P105 million offered to the FASAP.
Villaluna also said the expanded benefits and allowances are part of a package.
“The offers were made in good faith, proof that PAL is sincere in its efforts to settle and finally put to closure its 2005-2010 collective bargaining agreement (CBA) with FASAP,” Villaluna said.
The FASAP, on the other hand, said there is yet no agreement concerning their major demands.
“There is still no agreement concerning our three major demands and until these issues are addressed we will be forced to go on strike,” FASAP president Bob Anduiza said.
After a five-hour meeting last Wednesday, Anduiza said it was only the PAL management that agreed in principle to provide the 1,600 flight attendants an additional P600 monthly rice allowance.
“From the previous P1,200 monthly rice allowance, the PAL management agreed to give P1,800, but only after a new collective bargaining agreement is finally forged,” Anduiza said.
Until this time, Anduiza said, the PAL management has not presented any proposal to their demand to amend the 40-year-old retirement policy, increase in pay and a stop to gender discrimination.
“FASAP cannot allow a compromise on retirement and gender issues because the Commission on Human Rights and other concerned agencies have already declared PAL’s policy on this matter as outdated,” he said.
Anduiza said FASAP also intends to seek the assistance of the International Labor Organization (ILO) on discrimination of the retirement age requirement of flight attendants.
PAL is willing to change the retirement age to 45 from 40 for both male and female crewmembers, on the condition that FASAP agrees to fixed crew complement and a rule arrangement allowing younger cabin crew to work on international routes.
PAL said junior cabin attendants are well trained and capable of serving international flights but provisions in their current CBA had put restrictions.
The current work rules restricting the flight assignments of younger flight attendants were inserted in the previous CBA by FASAP to allow senior cabin crew to enjoy more perks and per diem on international flights, Villaluna pointed out.
PAL hopes the union would agree to the proposed changes for the sake of younger crewmembers, otherwise it would appear that some FASAP members are discriminating against their own, she added.
PAL and FASAP will meet again next week, but if no agreement can be reached after Oct. 9, Anduiza added all the 1,600 flight attendants would go on work stoppage. –
Rudy Santos, Mary Ann Reyes, Mayen Jaymalin
MANILA, Philippines - The management of Philippine Airlines (PAL) has offered a P105-million economic package to the restive Flight Attendants and Stewards Association of the Philippines (FASAP).
Both “agreed in principle” to expand maternity benefits but remained deadlocked over the issue of compensation and the retirement age.
PAL spokesperson Cielo Villaluna said the original offer was P80 million. PAL had offered a P25-million increase in their rice allowance for the period of 2007 to 2010 which now brings totals P105 million offered to the FASAP.
Villaluna also said the expanded benefits and allowances are part of a package.
“The offers were made in good faith, proof that PAL is sincere in its efforts to settle and finally put to closure its 2005-2010 collective bargaining agreement (CBA) with FASAP,” Villaluna said.
The FASAP, on the other hand, said there is yet no agreement concerning their major demands.
“There is still no agreement concerning our three major demands and until these issues are addressed we will be forced to go on strike,” FASAP president Bob Anduiza said.
After a five-hour meeting last Wednesday, Anduiza said it was only the PAL management that agreed in principle to provide the 1,600 flight attendants an additional P600 monthly rice allowance.
“From the previous P1,200 monthly rice allowance, the PAL management agreed to give P1,800, but only after a new collective bargaining agreement is finally forged,” Anduiza said.
Until this time, Anduiza said, the PAL management has not presented any proposal to their demand to amend the 40-year-old retirement policy, increase in pay and a stop to gender discrimination.
“FASAP cannot allow a compromise on retirement and gender issues because the Commission on Human Rights and other concerned agencies have already declared PAL’s policy on this matter as outdated,” he said.
Anduiza said FASAP also intends to seek the assistance of the International Labor Organization (ILO) on discrimination of the retirement age requirement of flight attendants.
PAL is willing to change the retirement age to 45 from 40 for both male and female crewmembers, on the condition that FASAP agrees to fixed crew complement and a rule arrangement allowing younger cabin crew to work on international routes.
PAL said junior cabin attendants are well trained and capable of serving international flights but provisions in their current CBA had put restrictions.
The current work rules restricting the flight assignments of younger flight attendants were inserted in the previous CBA by FASAP to allow senior cabin crew to enjoy more perks and per diem on international flights, Villaluna pointed out.
PAL hopes the union would agree to the proposed changes for the sake of younger crewmembers, otherwise it would appear that some FASAP members are discriminating against their own, she added.
PAL and FASAP will meet again next week, but if no agreement can be reached after Oct. 9, Anduiza added all the 1,600 flight attendants would go on work stoppage. –
Thursday, September 23, 2010
PAL management, flight attendants agree on maternity benefits
Thursday, 23 September 2010 11:57 Lenie Lectura / Reporter
THE management of Philippine Airlines (PAL) and the Flight Attendants and Stewards Association (Fasap) are set to finalize a new agreement on maternity benefits. However, issues on compensation and changes in the retirement age of crew members remain unresolved.
Under the airline’s existing policy, flight attendants who get pregnant are placed on prolonged leave without pay and this period is deducted from her years of service. Fasap said even while on maternity leave, which is mandated by law, PAL also deducts the 60-day maternity leave from the flight attendants’ years of service.
PAL announced yesterday that the airline and the Fasap “agreed in principle” to expand the flight attendant’s maternity benefits.
The flag carrier has agreed to add the number of months a female employee has gone on leave from her third month of pregnancy to her total years of service. But the airline and the Fasap are still negotiating if this will be applied retroactively or upon signing of the new agreement.
PAL had earlier offered an P80-million compensation package to Fasap members and this offer was increased by P25 million.
The airline’s spokesman Cielo Villaluna said on top of PAL’s original P80-million offer last week, the airline is giving the union a P25-million increase in rice allowance from 2007 to 2010. This brings to P105 million the total economic package offered to Fasap.
Villaluna stressed, however, that the expanded benefits and allowances are part of a package. Hence, their approval are contingent on the signing by PAL and Fasap of a final agreement that puts to rest all economic, gender and retirement issues under discussion.
“The offers were made in good faith, proof that PAL is sincere in its efforts to settle and finally put closure to its 2005-2010 Collective Bargaining Agreement with Fasap,” she said.
Despite significant strides during Wednesday’s five-hour PAL-Fasap talks, Villaluna said “sticky” points remain such as the compensation package and changes in the retirement age of crew members. She said PAL could only offer P105 million after suffering huge losses in the last two years, but it appears that the union wants much more than what PAL is capable of giving.
Meanwhile, PAL is willing to change the retirement age to 45 from 40 for both male and female crew members, on the condition that Fasap agrees to a mixed crew complement—a work rule arrangement allowing younger cabin crew to fly international together with the more senior attendants, and vice-versa, while the senior crew takes on domestic flight assignments.
The management said junior cabin attendants are well-trained and capable of serving international flights but provisions in their CBA prevent them from doing so.
PAL said the current work rules restricting the flight assignments of younger flight attendants were inserted in the previous CBA by Fasap. Because of this, only senior cabin crew enjoy higher perks and per diem when they fly international, Villaluna said.
“We want to introduce changes in the current work rules so that both young and senior cabin attendants can both serve in domestic and international routes,” she said.
PAL hopes the union would agree to the proposed changes for the sake of younger crew members. Otherwise, it would appear that some Fasap members are discriminating against their own kind, she pointed out.
THE management of Philippine Airlines (PAL) and the Flight Attendants and Stewards Association (Fasap) are set to finalize a new agreement on maternity benefits. However, issues on compensation and changes in the retirement age of crew members remain unresolved.
Under the airline’s existing policy, flight attendants who get pregnant are placed on prolonged leave without pay and this period is deducted from her years of service. Fasap said even while on maternity leave, which is mandated by law, PAL also deducts the 60-day maternity leave from the flight attendants’ years of service.
PAL announced yesterday that the airline and the Fasap “agreed in principle” to expand the flight attendant’s maternity benefits.
The flag carrier has agreed to add the number of months a female employee has gone on leave from her third month of pregnancy to her total years of service. But the airline and the Fasap are still negotiating if this will be applied retroactively or upon signing of the new agreement.
PAL had earlier offered an P80-million compensation package to Fasap members and this offer was increased by P25 million.
The airline’s spokesman Cielo Villaluna said on top of PAL’s original P80-million offer last week, the airline is giving the union a P25-million increase in rice allowance from 2007 to 2010. This brings to P105 million the total economic package offered to Fasap.
Villaluna stressed, however, that the expanded benefits and allowances are part of a package. Hence, their approval are contingent on the signing by PAL and Fasap of a final agreement that puts to rest all economic, gender and retirement issues under discussion.
“The offers were made in good faith, proof that PAL is sincere in its efforts to settle and finally put closure to its 2005-2010 Collective Bargaining Agreement with Fasap,” she said.
Despite significant strides during Wednesday’s five-hour PAL-Fasap talks, Villaluna said “sticky” points remain such as the compensation package and changes in the retirement age of crew members. She said PAL could only offer P105 million after suffering huge losses in the last two years, but it appears that the union wants much more than what PAL is capable of giving.
Meanwhile, PAL is willing to change the retirement age to 45 from 40 for both male and female crew members, on the condition that Fasap agrees to a mixed crew complement—a work rule arrangement allowing younger cabin crew to fly international together with the more senior attendants, and vice-versa, while the senior crew takes on domestic flight assignments.
The management said junior cabin attendants are well-trained and capable of serving international flights but provisions in their CBA prevent them from doing so.
PAL said the current work rules restricting the flight assignments of younger flight attendants were inserted in the previous CBA by Fasap. Because of this, only senior cabin crew enjoy higher perks and per diem when they fly international, Villaluna said.
“We want to introduce changes in the current work rules so that both young and senior cabin attendants can both serve in domestic and international routes,” she said.
PAL hopes the union would agree to the proposed changes for the sake of younger crew members. Otherwise, it would appear that some Fasap members are discriminating against their own kind, she pointed out.
PAL, cabin crew still deadlocked over pay, retirement age
Aura Marie P. Dagcutan
Posted on 09:43 PM, September 23, 2010
BusinessWorld
LUCIO C. Tan-led Philippine Airlines (PAL) has “agreed in principle” to expand maternity benefits for flight attendants and stewards but union leaders and the management remained “deadlocked” on compensation and the retirement age.
In a statement yesterday, PAL spokeswoman Ma. Cielo C. Villaluna said that on top of the original offer of P80 million for a new collective bargaining deal, the flag carrier was willing to grant a P25-million increase in rice allowances for 2007 to 2010.
This brings to P105-million the total economic package offered to the Flight Attendants’ and Stewards’ Association of the Philippines (FASAP).
However, Ms. Villaluna said the expanded benefits and allowances form part of a package and PAL’s approval was contingent on the signing by the airline and FASAP of “a final agreement that puts to rest all economic, gender and retirement issues under discussion.”
“We had a meeting with the group on Wednesday. The offers were made in good faith, proof that PAL is sincere in its efforts to settle and finally put closure to its 2005-2010 Collective Bargaining Agreement (CBA) with FASAP,” Ms. Villaluna said.
She added: “Despite significant strides during Wednesday’s five-hour PAL-FASAP talks, sticky points remain such as the compensation package and changes in the retirement age of crew members.”
Ms. Villaluna claimed the airline could only offer up to P105 million after suffering huge losses in the last two years, “but it appears that the union wants much more than what PAL is capable of giving.”
The airline also said it was willing to change the retirement age of cabin crew to 45 from 40 years old for both male and female attendants and stewards, as long as FASAP agreed to a mixed crew complement -- a work rule arrangement allowing younger cabin crew to fly international together with senior attendants, and vice-versa, with senior crew taking domestic flight assignments.
“Junior cabin attendants are well trained and capable of serving international flights but provisions in their CBA prevent them from doing so. Current work rules restricting the flight assignments of younger flight attendants were inserted in the previous CBA by FASAP itself. Because of this, only senior cabin crew enjoy higher perks and per diems when they fly international,” said Ms. Villaluna.
She added: “We want to introduce changes in the current work rules so that both young and senior cabin attendants can both serve in domestic and international routes.”
Andy Ortega, vice-president of FASAP, told BusinessWorld in a telephone interview the airline’s offers were contingent on whether the union would agree to the proposed retirement age.
“PAL makes it appear that what they are offering to us is just reasonable but it is not. These are not firm offers,” he said.
Mr. Ortega said P105 million was clearly not enough, taking into account that FASAP has 1,600 members.
Early this month, the group filed a notice of strike with the National Conciliation and Mediation Board after withdrawing from mediation talks with the management. --
Posted on 09:43 PM, September 23, 2010
BusinessWorld
LUCIO C. Tan-led Philippine Airlines (PAL) has “agreed in principle” to expand maternity benefits for flight attendants and stewards but union leaders and the management remained “deadlocked” on compensation and the retirement age.
In a statement yesterday, PAL spokeswoman Ma. Cielo C. Villaluna said that on top of the original offer of P80 million for a new collective bargaining deal, the flag carrier was willing to grant a P25-million increase in rice allowances for 2007 to 2010.
This brings to P105-million the total economic package offered to the Flight Attendants’ and Stewards’ Association of the Philippines (FASAP).
However, Ms. Villaluna said the expanded benefits and allowances form part of a package and PAL’s approval was contingent on the signing by the airline and FASAP of “a final agreement that puts to rest all economic, gender and retirement issues under discussion.”
“We had a meeting with the group on Wednesday. The offers were made in good faith, proof that PAL is sincere in its efforts to settle and finally put closure to its 2005-2010 Collective Bargaining Agreement (CBA) with FASAP,” Ms. Villaluna said.
She added: “Despite significant strides during Wednesday’s five-hour PAL-FASAP talks, sticky points remain such as the compensation package and changes in the retirement age of crew members.”
Ms. Villaluna claimed the airline could only offer up to P105 million after suffering huge losses in the last two years, “but it appears that the union wants much more than what PAL is capable of giving.”
The airline also said it was willing to change the retirement age of cabin crew to 45 from 40 years old for both male and female attendants and stewards, as long as FASAP agreed to a mixed crew complement -- a work rule arrangement allowing younger cabin crew to fly international together with senior attendants, and vice-versa, with senior crew taking domestic flight assignments.
“Junior cabin attendants are well trained and capable of serving international flights but provisions in their CBA prevent them from doing so. Current work rules restricting the flight assignments of younger flight attendants were inserted in the previous CBA by FASAP itself. Because of this, only senior cabin crew enjoy higher perks and per diems when they fly international,” said Ms. Villaluna.
She added: “We want to introduce changes in the current work rules so that both young and senior cabin attendants can both serve in domestic and international routes.”
Andy Ortega, vice-president of FASAP, told BusinessWorld in a telephone interview the airline’s offers were contingent on whether the union would agree to the proposed retirement age.
“PAL makes it appear that what they are offering to us is just reasonable but it is not. These are not firm offers,” he said.
Mr. Ortega said P105 million was clearly not enough, taking into account that FASAP has 1,600 members.
Early this month, the group filed a notice of strike with the National Conciliation and Mediation Board after withdrawing from mediation talks with the management. --
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