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. --