PAL fails to settle labor row with flight attendants’ union

Aura Marie P. Dagcutan
Posted on 08:51 PM, October 05, 2010
BusinessWorld
Strike looms as mediation efforts fizzle

LAST-DITCH efforts to settle a row between Philippine Airlines (PAL) and its flight attendant and steward union failed yesterday even as the government prepares to assume jurisdiction over the case to resolve the conflict.
Robert Anduiza, president of the Flight Attendants’ and Stewards’ Association of the Philippines (FASAP), told BusinessWorld in a telephone interview that the mediation meeting at the National Conciliation and Mediation Board ended in a deadlock.

“The mediation failed. PAL management’s last chance to come clean failed. The management decided to stand firm on [its] previous offers of moving the retirement age from 40 to 45 years old and the one-time P105-million economic package covering 2007 to 2010,” he said.

FASAP has demanded retirement age of 60 and a new collective bargaining agreement, contrary to PAL’s offer of a one-time package to cover the absence of an agreement between 2007 and 2010.

The group also said that if it were to accept the one-time package the amount should be raised to P250 million which will compensate for higher wage and rice allowance. “We did not give in. We will push through [with] the strike by the last week of October to first week of November,” Mr. Anduiza said.

He said FASAP will file next week a notice with the Department of Labor and Employment on the group’s decision to stage a strike, including a list of members who favored the strike. “Under the law, a union is required to get at least half of total membership to proceed to the strike. We already have the 50% of the 1,600 members of PAL-FASAP,” he said.

President Benigno C. Aquino III, meanwhile, told reporters in an ambush interview at the Palace that the Labor department will assume jurisdiction over the case. “The Labor department will assume jurisdiction [over PAL’s case]. Let us not panic. We are not yet irreconcilable.”

“There is still no anticipated damage to the economy by the loss of the carrier capacity. So we are hoping this can be resolved and we won’t need to go to the open skies policy because it’s still being studied completely,” he said, referring to allowing other foreign carriers to take up the slack from PAL’s possible inability to fully serve customers due to the labor conflict.

On the other hand, Cielo C. Villaluna, PAL spokesperson, said in a statement yesterday the management decided to submit the case for arbitration to the Labor department after failing to “amicably resolve its differences with its cabin crew union.”

“FASAP flatly rejected PAL’s proposal to increase salaries and rice allowances by P105 million, expanded pregnancy-related benefits and increased retirement age to 45 years old,” Ms. Villaluna was quoted as saying in the statement.

“With no agreement reached during today’s conciliation meeting, PAL manifested willingness to submit the case for arbitration. This will enable parties to submit their respective positions to the Labor secretary who will then decide the case on the merits.”

She added: “FASAP posed no objection to PAL’s manifestation but both parties agreed that any intervention by the Labor secretary would be through an assumption of jurisdiction. With an assumption order, parties are enjoined from performing any act that will exacerbate the situation such as a strike or lockout.”

Ms. Villaluna said issues for arbitration include the economic package, retirement age anchored on mixed-crew complement and pregnancy-related issues. “Any work stoppage aimed at paralyzing PAL’s operations will have negative effects not just on the airline’s finances but also on the country’s domestic and international trade and tourism image,” Ms. Villaluna said.

“PAL has been preparing contingency measures to cope with the effects of any possible labor strike. It’s give and take in any negotiation. It’s very difficult to negotiate if the other party only wants things to go their way.”

She added: “Management has bent backwards to give part of FASAP’s demands but they want nothing short of their original demands.” --