PAL urges cabin crew to settle as Labor chief takes over case

With an initial report from Radyo Inquirer
Aura Marie P. Dagcutan
Posted on 09:31 PM, October 06, 2010
BusinessWorld

FLAG CARRIER Philippine Airlines (PAL) yesterday assured customers operations would not be affected with the Labor secretary set to take over a collective bargaining deadlock with cabin crew to prevent a crippling strike.
“Labor Secretary Rosalinda D. Baldoz said in a radio interview she will assume jurisdiction of the PAL labor case. An assumption order has the force and effect of a status quo order which means that Flight Attendants’ and Stewards’ Association of the Philippines (FASAP) cannot stage a strike or work stoppage while the labor case is being adjudicated,” said Cielo C. Villaluna, PAL spokeswoman.

“PAL is grateful to Labor Secretary Baldoz for putting public interest ahead of any particular group. FASAP’s repeated strike threats are a cause of grave concern for PAL passengers whose travel plans are being unfairly disrupted.”

Ms. Villaluna said PAL management would also be enjoined by the order from “any act that could disturb prevailing conditions.”

With the labor case submitted for arbitration, PAL and FASAP must submit position papers on three pending collective bargaining issues -- the economic package or wage increase, retirement age, and maternity/pregnancy-related benefits.

“PAL will show [the Labor department] that the airline’s P105-million salary increase and additional rice allocation offer is predicated on the company’s capacity to pay after P15-billion losses in the last two consecutive years,” Ms. Villaluna said.

Ms. Villaluna said PAL’s proposal to change the retirement age to 45 from 40 years old was benchmarked against competitors in the Southeast Asian region and the airline industry in general, which puts a “high premium on the image and physical fitness” of frontline safety officers such as cabin crew members.

Management’s offer of expanded maternity-related benefits is something FASAP should consider instead of rejecting the offers “lock stock and barrel,” she added.

“We hope Secretary Baldoz would be able to judiciously resolve the contentious issues soonest so that PAL can operate smoothly and efficiently without threats of any work stoppage that unnecessarily scare away customers and investors,” she said.

On Tuesday, last-ditch efforts to settle a row between PAL and its flight attendants’ and stewards’ union failed.

FASAP wants the retirement age fixed at 60 and a new collective bargaining agreement, opposing 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.

On Saturday, Ms. Villaluna said the gross monthly pay of a PAL cabin crew member ranges from P33,000 to P75,000, inclusive of productivity pay and other allowances. “A domestic crew earns between P34,619 to P37,619 per month, including productivity pay, transportation allowance and rice allocation. An international cabin attendant receives P50,741 to P60,136, while a flight purser gets P67,880 to P73,570,” she said.

“While this salary range may be modest compared to the payscale of giant carriers abroad, this is no small amount by Philippine standards,” she said. --