PAL to DoLE: We can't afford economic package for FASAP

By SAMUEL P. MEDENILLA
January 10, 2011, 6:49pm

MANILA, Philippines – Flag-carrier Philippine Airlines (PAL) said it cannot afford the estimated P250-million economic package it has to pay to its flight crew union after it filed a partial motion for reconsideration at the Department of Labor and Employment (DoLE) last week requesting the review of its previous decision.

PAL President Jaime Bautista said in a media forum Monday that PAL does not have enough funds to pay for the economic package ordered by the DoLE to pay 1,600 members of the Flight Attendants’ and Stewards’ Association of the Philippines (FASAP).

“The amount is about three times the amount previously offered by PAL to FASAP. We reiterate our initial position that the wage increase, in effect should be at the lump sum of P80 million, considering the past financial status (of PAL) during the collective bargaining agreement (CBA) period,” Bautista said.

He said the new CBA, which was formed based from the resolution, will cover 2008 to 2009, when PAL posted a loss of about 300 million dollars from 2008 to 2010.

“We cannot afford to give those salary increases because the profit for this fiscal year, which we have reported for the first quarter should be set aside for salary increases that would be negotiated by not only by FASAP but also by PALEA for the current fiscal year,” he added.

Bautista also asked DoLE to reconsider the other provisions of its decision favoring FASAP last December 23, including the extension of the mandatory retirement age for its flight attendants from 45 to 60-years-old and the 1,800 pesos rice allowance for its cabin crew.

He said PAL’s policy in its retirement age is a market standard practiced by at least 15 airline companies in South East Asia to maintain their market competitiveness, while the rice allowance exceeds their initial offer of a 25 million pesos lump sum for all of their flight crew.

Bautista, however, said PAL will abide by DoLE’s decision regarding the crediting of maternity and pregnancy leaves for purposes of retirement.

Meanwhile, FASAP President Robert Anduiza has renewed its call to the PAL management to respect DoLE’s decision.