Palace hands off on PAL outsourcing row

By Aurea Calica and Mayen Jaymalin (The Philippine Star) Updated November 03, 2010 12:00 AM

MANILA, Philippines – Malacañang is backing the Department of Labor and Employment (DOLE) and will not interfere in the Philippine Airlines (PAL) case against its employees, who will be affected by a mass layoff following the carrier’s decision to outsource some of its services.

The DOLE upheld PAL’s plan to outsource its in-flight catering operations, airport services operations and call center reservations operations, which would affect some 2,600 employees.

More than a hundred workers, led by the members of the PAL Employees’ Association (PALEA), protested the DOLE ruling in a rally held at the Don Chino Roces Bridge (formerly Mendiola) and called on President Aquino to intervene.

Deputy Presidential Spokesperson Abigail Valte said they could understand the sentiments of the PAL employees but “there are legal ways of redress.”

“From what I understand, they can file a motion for reconsideration and then eventually, they can appeal the decision of the (DOLE. At present, it’s not that they do not have avenues for redress for their grievances. But, as of the moment, we advise them to avail of the remedies available to them under the law,” she said.

Valte said there was no need for the Palace to interfere because DOLE Secretary Rosalinda Baldoz affirmed the decision of her assistant secretary and the employees could still avail of the remedies entitled to them.

She said Baldoz’s decision was based on law and the “finer points” were that “the exercise of the management prerogative was valid” and that the benefits due the employees were given based on the situation.

“So there is no problem as long as the decision is based on law and is rendered on the basis of the facts as pleaded,” Valte told reporters.

Asked if it was a fair decision, Valte said the DOLE had to balance interests. “As long as the facts and the evidence pleaded warrant the decision, that would be our sole basis,” she said.
Valte said aside from filing an appeal, the employees could also go to the Court of Appeals and the Supreme Court.

Last month, the government stopped a planned strike by cabin crew who were demanding higher wages and a lifting of a company policy that forces female attendants to retire upon reaching the age of 40.
The DOLE is set to rule on that case this month after it ordered the two sides to submit to arbitration.

Valid, impartial ruling

Baldoz maintained that her decision allowing the mass layoff of 2,600 PAL employees was valid and impartial.

The Trade Union Congress of the Philippines and other labor groups, however, expressed disgust over the DOLE’s decision, which they branded as affront to the Filipino workers’ right to security of tenure.
“My decision has not been influenced by PAL or other factors outside the case and as I have always resolved other labor disputes in the past, I also applied established jurisprudence and only the records (of the case) dictated by decision,” Baldoz said.

She said that the Supreme Court, in a previous ruling, affirmed the legality of the collective bargaining agreement between PAL management and employees that provides for permanent outsourcing.
She said PAL employees were fully aware of PAL’s financial condition and the need for the firm to undertake cost-cutting measures, including outsourcing of some of its functions, a practice done by other airlines.

“Although PAL posted earnings in the past years, the income was not enough to offset the accumulated losses that the company is still paying until this time,” Baldoz said.

But to ensure protection for affected workers, Baldoz said, DOLE provided in its ruling a “transition package” that would enable retrenched employees to avail themselves of financial benefits in case they would not be absorbed by the company.

According to Baldoz, PAL can start the planned layoff of workers within the next 15 days unless the PALEA is able to secure a temporary restraining order from the CA.

Baldoz added that her office is still open in case the PAL management and PALEA members would decide to sit down once again and negotiate for better terms.