PAL dangles P2.75b package, new jobs to head off walkout

Manila Standard Today
March 28, 2011
By Joyce Pangco Pañares

PHILIPPINE Airlines has prepared a P2.75-billion separation package for its 2,600 employees who are facing retrenchment, company spokesman Cielo Villaluna said over the weekend.

The employees working in airport services, in-flight catering, and call center operations would also be guaranteed employment under a third- party service provider, she said.

Those involved in airport services and in-flight catering would be absorbed by Sky Logistics Inc. and Sky Kitchen Inc., respectively, which are owned by Cebu businessman Manuel Osmeña, who also owned Hilton Cebu, Villaluna said.

The workers in the carrier’s call center operations would have guaranteed employment with SPI Global Inc., which is controlled by businessman Manuel V. Pangilinan.

Villaluna dismissed the claim by PAL Employees Association president Gerry Rivera that Osmeña was a cousin of airline chairman Lucio Tan, and that the two companies were fronts.

“The goal is to sit down with the union leaders and dialog with them to ensure that this essential restructuring effort is carried out in a smooth and orderly manner,” Villaluna said.

She noted that the spin-off package rose to P2.75 billion after Malacañang ordered a doubling of the gratuity to P100,000 from P50,000 for each employee.

President Benigno Aquino III on Friday approved the mass lay-offs at the flag carrier, upholding the Labor Department’s ruling approving the spin-off of some of its services provided the employees received their gratuity and a separation pay of 125 percent.

Rivera said the union was prepared to fight it out before the Court of Appeals and to strike if necessary.

“We tried going through the so-called straight path of [President Aquino], but the truth is, Malacañang is the second home of Lucio Tan,” said Rivera, who is also vice chairman of Partido ng Manggagawa.

“We will push through with our strike on the first day of April. We will also bring the matter to the Court of Appeals.”

The union called on its 3,500 members to prepare for the first nationwide strike since the 1998 work stoppage that crippled the carrier.