Labor baptism of fire

Sunday, 12 September 2010 00:00
BY BENJAMIN G. DEFENSOR
THE MANILA TIMES

ACTING Secretary of Labor Rosalinda Baldoz is met with a problem that will define the meaning of “acting” in her appointment by President Benigno C. Aquino 3rd. Is it to keep her away from the Commission on Appointments or to figuratively keep her honest?

The Flight Attendants and Stewards Association of the Philippines (Fasap), the union of the Philippine Airlines (PAL) cabin crews formally filed a notice of strike last week. Secretary Baldoz has earlier suggested that since PAL renders critical service to the public, the Department of Labor may have to assume jurisdiction over the dispute to prevent a strike.

The law provides and 30-day cooling-off period for both labor and management to come to an agreement before the start of the strike. PAL has assured the public that “there is no immediate work stoppage . . .”
The filing of a strike notice only starts a “legal process by which the two parties, with guidance from the labor department, would find ways of striking a balance between what the union wants and what management can afford and is prepared to give,” a PAL spokesman said in an official statement.

The strike notice comes in the wake of the resignation of pilots in defiance of their contracts with PAL to work for higher pay with other international airlines. The strike threat from the cabin crews exacerbates the problems faced by PAL management. PAL is still reeling from losses suffered during the financial crisis of 2008 and 2009.

The cabin crew union is seeking the amendments of the early retirements provisions of the current collective bargaining contract. The 40-year-old retirement rule for cabin crews is part of the CBA was signed by the Union and PAL in 2001. Fasap now insists that the provision is discriminatory.

The union also charges PAL with discrimination in the treatment of pregnant cabin crew. PAL’s reply is interesting in many ways:

“PAL does not discriminate against pregnant flight attendants. Preventing them from flying is for the safety of the mother and child. Many cabin attendants delay declaring they are pregnant. PAL extends the standard maternity benefits as provided by law, even advancing P30,000 of their SSS benefit to cover expenses. Any earned vacation leaves may be used before applying the pregnancy and maternity leaves.
Seniority is not lost during pregnancy. Beyond these, the pregnant cabin attendant is no longer entitled to any pay (no work, no pay) just like other ground staff.

“From April 2009 to March 2010, there were a total of 65 cabin crew who went on maternity leave (or roughly one pregnancy every six days)—almost all of them returned to fly again despite allegations of unfair work rules and discriminatory policies.”

Other labor groups in the airline are protesting PAL’s decision to spin off some of its services as a cost cutting and efficiency measure. But in the end, the financial package would be the tipping point in the controversy.

PAL has decided to cease to operate its in-flight catering service, airport ground handling, cargo terminal and handling services and its call center reservations service. This will eliminate some 2,600 regular rank and file workers who are members of the PAL Employees Association (Palea). These workers will be paid separation benefits equivalent to one month’s pay for every year of service. PAL says it has obtained a commitment from the service providers who will take over these functions to accept the eliminated PAL workers as long as they meet the qualification requirements.

The Department of Labor has recognized the decision of PAL to “spin-off” these services as “anchored on valid and compelling rounds.” So the retrenchment that resulted was a valid exercise of management prerogative, PAL says.

But there is an international dimension to the problem. President Aquino has faced up to an insulting letter from a Hong Kong official about the handling of the Rizal Park hostage crisis. The government is working towards redressing the situation and the letter may be taken for what a minor official in the hierarchy of China trying to gain the attention of the bosses in Beijing. What could be better for a promdi than to hit a head of state? Except that this could have been handled with a little more decorum according to Confucian ethics.

We can understand the emotional reactions of the relatives of the victims. As for the others it could be just a way by which those who have not much opportunity to let off steam to do so.

Philippine officials investigating the case have received the cooperation of Hong Kong authorities, and we
should be able to build on this to regain the friendly rivalry between the port cities of Hong Kong and Manila which goes all the way back to rivalry on the basketball court.

But to go back to the threat of a strike against PAL. The strike will of course impact on our tourism campaign but there are others who point out that there are other foreign airlines that are ready to step into the breach caused by the failure of PAL to fly. The losses of foreign exchange revenue, of customer satisfaction build over the years are something that must gives our economic managers pause.

But the most potent threat is that should PAL’s domestic flights be affected, there is not enough local airline capacity to meet inter-island transport needs. Trying to balance the needs of the workers and the need of a private company to continue operating will need more than an ounce of Solomonic wisdom.

All these will be part of Secretary Baldoz’s baptism of fire.