Red faced

Philippine Daily Inquirer
Biz Buzz: Christmas-party rivalry
December 6, 2010


IT LOOKS like militant labor groups have failed to convince union members to reject early retirement packages from Fortune Tobacco Corp. and Philippine Airlines.

As of last weekend, 99 percent of Fortune Tobacco workers have already accepted retirement packages, which the firm describes as “generous,” leaving leaders of the labor union and their left-side allies not a bit red-faced (coming off a “unity march” they held along Ayala Avenue just two weeks ago).

According to the grapevine, more than 1,200 workers of Fortune have signed up to avail themselves of retirement packages equivalent to 2.5 months of pay for every year of service.

Whatever resistance they had was also broken down by a P60,000 “early bird” bonus for those who immediately signed up. In fact, more than 90 percent of union members signed up on the first two days after the program was officially announced.

The same scene is playing out in Philippine Airlines. Even as union leaders are moving heaven and earth to reverse the labor department’s decision authorizing the rationalization program, close to a thousand union members have already volunteered to avail themselves of PAL’s early-retirement package.

This presents a huge dilemma for PAL union leaders who were rebuffed by Malacañang last Friday for announcing their plan to hold a strike vote while their case is pending review by President P-Noy.

Apparently, there are limits to the effectiveness of both unions’ battle cry. It’s Christmas, after all.—Daxim L. Lucas