On eve of strike, PAL says will keep flying

Business Mirror
March 29, 2011
By S. Fabunan, E. Torres

IN a bid to prevent a possible work stoppage and make sure Philippine Airlines (PAL) operations remain continuous, Labor Secretary Rosalinda Baldoz on Monday called the flag carrier’s management and its union leaders to a crucial make-or-break meeting. She has not yet, however, set the date of the meeting, seen as a last-ditch effort to forestall a strike, which the union said on Monday would most likely start on April 2 .

“I am calling on both parties to a conference for possible settlement. We will exhaust all options to settle the issue,” said Baldoz.

Meantime, PAL assured air travelers on Monday they have contingency measures to keep their airplanes flying in case the PAL Employees Association (Palea) goes on strike.

PAL said it will follow published schedules and all ticket offices, and that sales and airport facilities in Metro Manila, and the provinces, and stations abroad will maintain regular business operations.

“Our interline airline-partners, as well as augmentation forces from management, are on standby to ensure that our operations are not disrupted in case Palea members walk out,” said Cielo Villaluna, PAL spokesman.

She added that ground workers represent only a fraction of the company’s 7,000-strong work force.

PAL also submitted on Monday its counterproposal consisting of salary increases for the three years of a three-year collective bargaining agreement (CBA) that is in a stalemate and a cause of the labor unrest.

“In good faith, PAL management fulfilled its commitment to submit today a counterproposal, proof of management’s sincerity and willingness to open negotiations with Palea,” said Jose S.L. Uybarreta, vice president for human resources.

“The amounts of P750 for the first year, P1,500 for the second year and another P1,500 for the third year—are what management believes the company can afford at this time, given the string of massive losses suffered by PAL since 2008,” he said.

On Friday Malacañang upheld the decision of the Department of Labor and Employment (DOLE) recognizing the legality of PAL’s spinoff of three noncore units.

PAL said it was Palea who sought the President’s intervention and when the decision did not favor them, the union rejected the decision and even the additional benefits granted them.

Earlier, PAL president Jaime J. Bautista said the outcome of Malacañang’s mediation over the spinoff issue has a material impact on the next CBA. He said union leaders should give Malacañang due respect when it finally resolved the spinoff issue.

Questioning the basis and validity of Palea’s recent strike vote, PAL also maintained that there was no reason for the holding of the referendum given management’s willingness to open CBA negotiations.

Earlier, Palea claimed management refused to negotiate a new CBA.

Under the Labor Code, the secretary of Labor has the power to assume jurisdiction over a labor dispute or issue a return-to-work order in cases of labor disputes imbued with national consequence.

Those who refused to heed the DOLE return-to-work orders, like the PAL pilots in 1998, were terminated by operation of the law and were unable to avail themselves of separation and/or retirement benefits.

Restive PAL employees, meanwhile, condemned the Palace decision to allow the mass layoff of around 2,600 employees after they resorted to Palace intervention in the planned spinoff of three work units of the airlines.

Gerry Rivera, Palea president, said the decision of the Office of the President written by Executive Secretary Paquito Ochoa violated the Constitution, conventions of the International Labor Organization and the CBA between PAL employees and management that guarantees workers’ right to job security and right to bargain.

Rivera reiterated they are readying a nationwide strike to oppose the decision of Malacañang allowing the mass layoff. He said the ban on strikes at PAL ends on April 1. At least 95 percent of the Palea members voted yes in the strike poll compared with the 86-percent yes in the strike vote in December last year.

He said the Palace’s decision siding with management runs counter to President Aquino’s campaign slogan “Kayo ang boss ko.”

“In the conflict between the second-richest Filipino and thousands of PAL workers, P-Noy chose to side with the capitalist rather the workers,” said Rivera. “For President Aquino, it is okay for PAL to retrench 2,600 workers at a time when the company will earn $1.6 billion in annual profit and when thousands of OFWs are returning home to escape unrest and disaster abroad. What is this government’s employment policy? Demolish all the regular jobs and turn workers into contractuals!”

He said PAL employees will hold a big rally on Friday in Malacañang and parallel protest actions in the airports of Cebu, Davao, Bacolod and General Santos City. --S. Fabunan, E. Torres