Noy to step into PAL row after review of DOLE's decision

The Philippine Star
November 5, 2010
By Aurea Calica

MANILA, Philippines - President Aquino is reviewing the decision of Labor and Employment Secretary Rosalinda Baldoz approving the dismissal of about 2,600 Philippine Airlines (PAL) employees after the flag carrier decided to outsource some of its services.

In a phone interview, Mr. Aquino said the case is not a simple issue as it has many intricacies.

“The review will tell me what I should do, the complete basis (of my actions), the various factors before any intervention,” he said.

Mr. Aquino said he would study voluminous documents and that the direction he would take would depend on his review. He was given the documents after he arrived from a state visit to Vietnam, he added.

Mr. Aquino said he would respect the decision of PAL employees to bring the case to court.

“They, I understand, went to the Court of Appeals,” he said. “If they did, we respect the division of powers enshrined in the Constitution.” Malacañang was supporting the DOLE’s decision and would not interfere in the case, deputy presidential spokesperson Abigail Valte said earlier.

More than a hundred workers belonging to the PAL Employees’ Association (PALEA) protested the DOLE decision in a rally at the Chino Roces Bridge (formerly Mendiola) across Malacañang and called on Mr. Aquino to intervene. 

‘Many PAL employees ready to work for service providers’

A growing number of PAL employees are eyeing jobs in service providers where many of the carrier’s services would be outsourced, according to sources.

Workers in the ground handling and catering divisions said they were expecting the DOLE’s decision allowing PAL to spin off in-flight catering, airport services and call center reservation units.

The workers, who asked for anonymity to avoid enmity with other members of PALEA, said they are ready and willing to accept the DOLE decision as long as they are assured employment in service providers and receive the other benefits provided in the decision.

Sources at Ninoy Aquino International Airport said PAL employees have been quietly inquiring about employment opportunities at SkyKitchen Phil. Inc., a catering service provider; SkyLogistics Phil. Inc. (airport services) and ePLDT Ventus, a PLDT subsidiary (call center operations) – the service providers that PAL will contract.

They would prefer to be absorbed by another company rather than risk their jobs in the event PAL continues to bleed financially, the employees added. The PAL employees also expressed satisfaction over the separation benefits raised by DOLE from 100 percent to 125 percent for every year of service, the additional P50,000 cash bonus, conversion to cash of 100-percent of vacation and sick leave balances regardless of years of service, and hospitalization and medical coverage to be extended for a year. “We can use our retirement pay to start a small business or use the same for our children’s tuition and other purposes,” a PALEA member said.

The employees said many workers are not inclined to join the protest actions of PALEA, which he sees as an exercise in futility.

“For too long we have gone along with the union’s strategy to contest the spinoff,” he said. “Now that DOLE has spoken, I think it’s time to give up the fight, secure our benefits and forget about the ‘adventurism’ of PALEA leaders.”

The employee said militant groups trying to advance their ideology are using some PALEA leaders.

“These militant groups are fighting for their own cause, not the real interests of PAL workers,” he said.

Last week, Baldoz said PAL could exercise management prerogative to restructure and spin off the carrier’s non-core units.

“We find (this) to be a just, reasonable, humane and lawful exercise of its management prerogative to reorganize the corporate structure for purposes of viability of its operations, subject to the entitlement of affected employees to transition guarantees and benefits,” read the DOLE order.

PAL suffered huge $312-million losses for the past two years due to the global economic meltdown, volatile fuel prices, the recent downgrade of the country’s safety rating by the US Federal Aviation Administration and aggressive competition from low-cost airlines.

If there is no spinoff, PAL will close down and 7,500 workers will be displaced without separation pay, Baldoz said.

House to respect DOLE decision

The House of Representatives will respect the DOLE’s decision on the layoff of about 2,600 PAL employees. Northern Samar Rep. Emil Ong, House committee on labor and employment chairman, said they cannot question the decision of DOLE officials because they acted according to law.

“The PAL employees need to exhaust all legal efforts before going to the President for intervention,” he said.

PAL employees must file an appeal with the DOLE, he added. Ong has set a hearing for Nov. 11 on seven resolutions seeking an inquiry into the PAL labor dispute. He has invited Baldoz and representatives of PAL management and workers to the inquiry.

“The hearing will not dwell on the ruling made by the DOLE but will look deeper on the present law, which Congress can amend if needed,” he said.       

Ong said he would have preferred that PAL management and workers settled their dispute amicably instead of forcing the DOLE to intervene.        

However, a member of Ong’s committee said Ong’s preferred settlement mode “is no longer an option.”        

“The labor department, which acted as a quasi-judicial body in this case, has already made a ruling based on the facts, law and jurisprudence. The parties have to respect that ruling,” said the congressman, who did not want to be named. – With Rainier Allan Ronda, Jess Diaz