Can’t afford pay hike–PAL

First posted 03:43:05 (Mla time) January 11, 2011
Philip Tubeza
Philippine Daily Inquirer

MANILA, Philippines—Saying it could not afford to give “hefty” salary increases, Philippine Airlines (PAL) Monday said it asked the Department of Labor and Employment to reconsider its ruling awarding flight attendants a salary hike and a higher retirement age.

The Flight Attendants and Stewards Association of the Philippines (FASAP) denounced PAL management for filing a motion for reconsideration, saying it was throwing away a “golden opportunity for reconciliation.”

In a press conference, PAL president Jaime Bautista explained that the motion filed by the airline on Friday sought only a partial reconsideration of Labor Secretary Rosalinda Baldoz’s ruling on the labor dispute.

It questioned the salary increase and the adjustment of the retirement age from 40 to 60 years for both male and female attendants, he said, but added that PAL was no longer appealing her ruling on the flight attendants’ maternity and pregnancy leaves.

Bautista said the airline reiterated its position that the wage increase be pegged at a lump sum of P80 million.

Baldoz’s ruling, which awards salary increases to PAL flight attendants from 2008 to 2010, would cost the flag carrier around P250 million. The airline offered an economic package of P105 million during the negotiations.

“So, P105 million against P250 million… that’s a P145 million difference,” Bautista said.

He added that from 2008 to 2009 and again from 2009 to 2010, Philippine Airlines “reported losses of $297 million and $14 million, respectively.”

“So the position of Philippine Airlines is that, even if we were reporting a profit for (the first quarter of) 2010-2011, we cannot afford to give salary increases because the profit for this fiscal year should be set aside for salary increases that would be negotiated not only by (FASAP) but also by (the ground crew union),” Bautista said.

Bautista said PAL was also asking that it be allowed to retire its flight attendants at age 45 since this was also the practice of other airlines.

In a statement, FASAP president Bob Anduiza urged PAL management to accept Baldoz’s decision, which he described as “fair and reasonable.”

He disputed Bautista’s claim that the airline could not afford the salary increases, pointing to the doubling of PAL’s equity from P1.69 billion to P3.32 billion as of March 31, 2010.