PAL to shoulder extra pay for Customs; gov’t to print immigration cards

Posted on 10:58 PM, December 06, 2010
Business World

FLAG-CARRIER Philippine Airlines (PAL) has agreed to shoulder a portion of unpaid overtime work of Customs officials detailed at the three terminals of the Ninoy Aquino International Airport (NAIA), in an attempt to avert possible chaos from a shortage of personnel with the expected volume of arrivals for the holidays, the company’s spokesperson yesterday said.

In a string of airport woes, the government may be forced to spend for the printing of immigration cards that has been previously financed by a private firm or face the lack of entry/departure documents beginning next year.

Ma. Cielo C. Villaluna, in a phone interview, said the carrier agreed to shoulder five months of the total 16 months of overdue overtime work payments "in the spirit of Christmas."

She declined to mention how much PAL will shoulder in the estimated P1.2 billion in unpaid services, saying "full accounting of the bill" has yet to be completed.

Ms. Villaluna said PAL offered the proposal to other members of the Board of Airline Representatives (BAR), which groups general managers of airlines with international flights, in a meeting last night, results of which were still unavailable as of press time.

"The proposal is for them to shoulder a portion of the overtime work [payments], probably about three to five months per airline or the whole of BAR. It will depend on them. But for PAL, we are willing to cover five months [of overtime work]," she said.

Sought for comment Customs Commissioner Angelito A. Alvarez, in a phone interview, welcomed PAL’s plan, adding that the bureau will hire additional 100 employees next year "to work on three shifts to avoid over time work" in NAIA.

About 600 Customs examiners stationed in the three NAIA terminals have threatened to leave their posts after office hours if their overtime work will not be settled.

In a decision last Nov. 10, the Court of Appeals, denying a motion for reconsideration filed by the Office of the President and the Department of Finance, has affirmed its ruling on July 9, 2009 that declared as unconstitutional a Customs bureau directive dated April 24, 1992 (Administrative Circular 7-922) which required airlines to pay overtime, traveling, board and lodging expenses and/or meal allowance of Customs personnel at NAIA.

Alongside the decision, the appeals court, favoring BAR, also junked another Customs order in 2005 that more than doubled the hike in charges.

By issuing the directives, the court noted that the Customs bureau is usurping legislative powers by citing a provision in the Tariff and Customs Code which states that "Custom officials may be assigned by a collector to do overtime work at rates fixed by the Commissioner of Customs when the service rendered is to be paid for by importers, shippers, or other persons served."

Meanwhile, another problem looms in the country’s airports after the Airline Operators Council (AOC), which groups 48 airline managers and ground handlers, said it will no longer finance the production of Immigration arrival cards and Customs declaration forms beginning Jan. 1 without a sponsor.

Smart Communications, Inc., which has sponsored the printing of over 22 million of Customs and Immigration documents each year for more than a decade now, has declined to finance the same beginning 2011.

Maria Lourdes S. Reyes, AOC chairman, said in a text message that the group’s decision was not "in retaliation" to the possible strike of Customs officials in NAIA.

"We don’t want to pay for the printing because in the first place, it should be the government that should finance that," Ms. Reyes said.

To this, Mr. Alvarez said the bureau "may pay" for the printing of declaration forms that bear details of arriving passengers and cargo.

"But nothing is final yet [since] we have sufficient time to discuss the matter. We may also ask a sponsor to finance the project like what airliners are doing now," he said.

Ronaldo P. Ledesma, Immigration officer-in-charge, agreed with Mr. Alvarez, saying "a bidding may be conducted" to find a printer "that will be paid by the bureau."

Both officials declined to estimate additional costs that may be incurred for the planned printings, saying they are yet to be discussed.

NAIA Customs officials were not immediately available for comment. -- Prinz P. Magtulis