PAL attendants gearing for strike; airline gets more cancellations

Business World: News
Sep. 2nd, 2010 at 5:37 AM

FLIGHT attendants and stewards of Lucio C. Tan-led Philippine Airlines (PAL) plan to file a notice of strike before the Labor department early next week, after rejecting an P80-million compensation package from the management.

PHILIPPINE AIRLINES claims it lost almost $320 million or P15 billion in the last two fiscal years due to the global economic crisis and higher fuel prices, the downgrade of the Philippines’ aviation safety rating by the US Federal Aviation Administration, and the European blacklisting of all Philippine carriers. -- BW

Andy Ortega, vice-president of the PAL-Flight Attendants’ and Stewards’ Association of the Philippines, said the group’s officers would wrap up meetings with members this week.
“We are not like the usual employees who work in offices every day.

Most of our members are out of the country or Metro Manila. If they are not busy, the officers are maximizing that time to discuss with [members] the status of the mediation meetings and also to get their approval for the strike,” he said.

Talks over a new collective bargaining agreement are in a stalemate as the union claims the P80-million package is not enough for 1,600 flight attendants and stewards.
PAL claims it cannot afford a bigger package because of financial difficulties.

PAL spokeswoman Ma. Cielo C. Villaluna said the management respects the decision of the flight attendants and stewards, but reminded them of the “negative consequences” of a strike.
“We always believe that this matter should be resolved in the negotiating table for the best interest of all the parties involved,” she said.

She added: “It is well within their right to file a notice of strike.”
The airline already has its hands full with a labor dispute with ground workers over an outsourcing plan, and the mass resignation of 26 pilots last July for better jobs abroad.
More cancellations

Following a bloody hostage-takingincident last week that killed eight Hong Kong tourists, PAL is also reeling from flight cancellations.

Ms. Villaluna said that as of Aug. 27, there were 1,100 flight bookings cancelled including forward bookings for next month. The tourists who cancelled their trips were from Hong Kong, Beijing, Xiamen and other Chinese cities.

“The cancellations of bookings are still due to the travel advisory issued by the Hong Kong government last week warning its residents to refrain from all travel to the country. Passengers from this country comprise 6% of our total passenger revenues,” she said.

She said the airline was closely monitoring the situation and would consider reducing flights to Hong Kong and China if necessary.

“We still have our daily flights to Hong Kong and China and also five returning flights to Manila,” Ms. Villaluna said.

In terms of PAL’s total revenues, Hong Kong accounts for 6%, Macau, 0.4%, and China, 3.3%.
The mass resignation of pilots last July forced PAL to cancel and merge flights, dealing a blow to the airline which is in tough competition with the Gokongweis’ Cebu Air, Inc., operator of the profitable budget carrier Cebu Pacific.

The PAL Employees Association (PALEA) had also threatened to strike over the Labor department’s decision to uphold PAL’s plan to outsource three units.

In April, the Labor department assumed jurisdiction over PAL’s dispute with PALEA to prevent a strike. The department later upheld PAL’s decision to outsource catering, ground and call center services. -- Aura Marie P. Dagcuta