Financial turnaround comes despite weak market
By: Daxim L. Lucas
Philippine Daily Inquirer
1:22 am | Wednesday, June 15th, 2011
Philippine Airlines expects to report a profit for its recently ended fiscal year, marking a sharp turnaround for the flag carrier despite being saddled by persistent labor issues.
In an interview, PAL president and chief operating officer Jaime Bautista said he was expecting the airline’s bottom line to “land in positive territory” for its 2010-2011 fiscal year, which ended on March 31.
“The numbers look good and we are just waiting for the board to approve the figures later this month,” Bautista said, declining to provide more details.
According to airline sources, the Lucio Tan-owned airline will likely report “total comprehensive income” of about $80 million for the previous fiscal year—a turnaround from the $14.3-million loss reported in March 31, 2010.
“We would have beaten the $100-million mark [for last year], had it not been for all the unforeseen events we had in the first quarter [of 2011],” the source said, requesting anonymity because the numbers have yet to be reviewed by the company’s board.
In particular, the official pointed out that the effects of the earthquake and ensuing tsunami on the Japanese market and the spike in fuel prices caused by the unrest in the Middle East and North Africa dampened PAL’s net income toward the end of its fiscal year.
Bautista pointed out that the turnaround in PAL’s financial performance came despite an ongoing dispute with its labor unions, which have forced the airline to temporarily suspend its rationalization program.
“Given that we could save as much as $15 million annually with our planned streamlining efforts, the company could be a better contributor to the economy should we be allowed to implement our plans,” he said.
The PAL chief said the airline had recorded higher passenger traffic to and from key destinations, especially Hong Kong, Singapore, Bangkok and its recently inaugurated New Delhi service.
PAL had also experienced higher passenger traffic between Manila and the cities of Tokyo, Nagoya and Fukuoka, but this market fell off sharply in the wake of the twin tragedies that struck Japan in early March.
The airline’s overall load factor remained at the “high 70s,” Bautista said.
PAL flew about nine million passengers in fiscal year 2010-2011. This was slightly lower than the 9.3 million passengers it ferried in the previous year—a situation he attributed to active measures to shift domestic traffic to PAL’s Air Philippines subsidiary.
The planned shift in focus resulted in PAL reporting an increase in the number of international passengers but a slight decline on domestic routes.
“We didn’t renew the lease on six Airbus A320s for PAL, but instead took in new aircraft of the same type for Air Philippines,” he said.
Next year, however, PAL will add two new A320s to its fleet, plus another two Boeing 777s, which it hopes to finally use for its lucrative trans-Pacific service, should the country finally be upgraded back to Category 1 status by US aviation regulators.
Bautista emphasized the importance of bringing more B777s into PAL’s fleet—and maximizing their use with long-distance flights—as a key factor in improving the airline’s efficiency.
In addition, he said PAL must also be allowed to shed excess staffers and outsource non-core services from firms which can provide the same service more efficiently, similar to other airlines’ operations.
Wednesday, June 15, 2011
Tuesday, June 14, 2011
PAL hiring workers for ground duty
The Philippine Star
By Mary Ann Ll. ReyeS
June 14, 2011 12:00 AM
MANILA, Philippines - Philippine Airlines (PAL) will be hiring workers for ground duty to augment its current workforce and replace those who resigned over the past few weeks.
In a statement, PAL spokesperson Cielo Villaluna said the flag carrier intends to directly hire 60 customer service agents (CSAs) to man check-in counters and perform other ground duties. She said this would replace CSAs who either resigned or were pirated abroad.
“To avoid inconvenience to our passengers in terms of longer queues and waiting times, PAL management started processing applications for customer service agents,” she explained.
Contrary to claims by the PAL Employees Association (PALEA), Villaluna said PAL management would not hire people from MacroAsia Corp. “In fact, the decision to hire directly instead of getting a service provider was even proposed by PALEA officers during a management-union dialogue last week,” she said.
Villaluna explained that the original management proposal was to temporarily engage the services of MacroAsia for six months just to fill the gap. But since the union opposed this, management decided that it would just hire employees directly to end the debate, she stressed.
By Mary Ann Ll. ReyeS
June 14, 2011 12:00 AM
MANILA, Philippines - Philippine Airlines (PAL) will be hiring workers for ground duty to augment its current workforce and replace those who resigned over the past few weeks.
In a statement, PAL spokesperson Cielo Villaluna said the flag carrier intends to directly hire 60 customer service agents (CSAs) to man check-in counters and perform other ground duties. She said this would replace CSAs who either resigned or were pirated abroad.
“To avoid inconvenience to our passengers in terms of longer queues and waiting times, PAL management started processing applications for customer service agents,” she explained.
Contrary to claims by the PAL Employees Association (PALEA), Villaluna said PAL management would not hire people from MacroAsia Corp. “In fact, the decision to hire directly instead of getting a service provider was even proposed by PALEA officers during a management-union dialogue last week,” she said.
Villaluna explained that the original management proposal was to temporarily engage the services of MacroAsia for six months just to fill the gap. But since the union opposed this, management decided that it would just hire employees directly to end the debate, she stressed.
PAL service reps quit; other workers buck outsourcing
By Paolo G. Montecillo
Philippine Daily Inquirer
3:22 am | Tuesday, June 14th, 2011
A string of resignations has hit Philippine Airlines (PAL), forcing the Lucio Tan-led flag carrier to hire about 60 new customer service agents (CSA) to man check-in counters at local airports.
This comes amid an ongoing labor dispute that has stalled PAL’s plan to outsource most of its ground services.
“The flag carrier intends to directly hire 60 CSAs to man check-in counters and do other ground duty. They would replace CSAs who had either resigned or were pirated abroad,” said PAL spokesperson Cielo Villaluna in a statement.
“To avoid inconvenience to our passengers in terms of longer queues and waiting times, PAL management has started processing applications for CSAs,” she said.
Villaluna said PAL management’s original proposal was to temporarily engage the services of MacroAsia Corp. for six months just to fill the employee gap. MacroAsia is an aviation services provider also owned by Lucio Tan.
“But since the union opposed this, management decided that it would hire employees directly to end the debate,” she said.
Rehire former employees
The PAL Employees Association (Palea), which represents PAL ground workers or about half of the airline’s work force, said it opposed the idea since hiring MacroAsia would be tantamount to outsourcing their jobs—which the union opposes.
“We rejected the plan but offered to help in rehiring former PAL employees and recalling trainees who were not hired due to a hiring freeze implemented last year,” said Palea president Gerry Rivera in a statement.
On June 9, Palea said it had submitted a partial list of people interested in the position of customer service agents.
The union said it took offense at PAL’s proposal to hire MacroAsia, which Palea considers to be a “backdoor implementation” of PAL’s controversial outsourcing plan.
Palace, DOLE approved plan
PAL’s outsourcing plan was earlier approved by the Department of Labor and Employment and the Office of the President as the legal exercise of a “management prerogative” meant to cut costs. The decision is currently under appeal.
“PAL management is hoping for a speedy resolution of the outsourcing issue. The longer it drags, the more our workers are disenchanted and forced to seek greener pastures. Thus, for the sake of our workers who want to peacefully move on and for the convenience of thousands of passengers, we hope Malacañang would decide with finality on the outsourcing issue,” Villaluna said.
Palea members on Monday took to the streets to protest what they called “an exacerbation” of the labor dispute at PAL.
The motorcade, consisting of some 50 motorcycles and 10 cars stopped by the PAL In-Flight Center along MIA Road.
Security personnel and airport police prevented the motorcade from entering the Ninoy Aquino International Airport Terminal 2 where the MacroAsia office is located.
The blockage caused heavy traffic in the area for some 30 minutes to the chagrin of motorists, which Rivera said was not intentional.
Rivera said the union and PAL management have not yet reached an agreement on the temporary outsourcing arrangement set for June 16.
“We are ready to defend our jobs and the union if PAL does not back down from deploying contractual workers. We will be vigilant until there is a firm commitment for direct hiring instead of temporary outsourcing,” he said. With reports from Julie M. Aurelio and Philip C. Tubeza
Philippine Daily Inquirer
3:22 am | Tuesday, June 14th, 2011
A string of resignations has hit Philippine Airlines (PAL), forcing the Lucio Tan-led flag carrier to hire about 60 new customer service agents (CSA) to man check-in counters at local airports.
This comes amid an ongoing labor dispute that has stalled PAL’s plan to outsource most of its ground services.
“The flag carrier intends to directly hire 60 CSAs to man check-in counters and do other ground duty. They would replace CSAs who had either resigned or were pirated abroad,” said PAL spokesperson Cielo Villaluna in a statement.
“To avoid inconvenience to our passengers in terms of longer queues and waiting times, PAL management has started processing applications for CSAs,” she said.
Villaluna said PAL management’s original proposal was to temporarily engage the services of MacroAsia Corp. for six months just to fill the employee gap. MacroAsia is an aviation services provider also owned by Lucio Tan.
“But since the union opposed this, management decided that it would hire employees directly to end the debate,” she said.
Rehire former employees
The PAL Employees Association (Palea), which represents PAL ground workers or about half of the airline’s work force, said it opposed the idea since hiring MacroAsia would be tantamount to outsourcing their jobs—which the union opposes.
“We rejected the plan but offered to help in rehiring former PAL employees and recalling trainees who were not hired due to a hiring freeze implemented last year,” said Palea president Gerry Rivera in a statement.
On June 9, Palea said it had submitted a partial list of people interested in the position of customer service agents.
The union said it took offense at PAL’s proposal to hire MacroAsia, which Palea considers to be a “backdoor implementation” of PAL’s controversial outsourcing plan.
Palace, DOLE approved plan
PAL’s outsourcing plan was earlier approved by the Department of Labor and Employment and the Office of the President as the legal exercise of a “management prerogative” meant to cut costs. The decision is currently under appeal.
“PAL management is hoping for a speedy resolution of the outsourcing issue. The longer it drags, the more our workers are disenchanted and forced to seek greener pastures. Thus, for the sake of our workers who want to peacefully move on and for the convenience of thousands of passengers, we hope Malacañang would decide with finality on the outsourcing issue,” Villaluna said.
Palea members on Monday took to the streets to protest what they called “an exacerbation” of the labor dispute at PAL.
The motorcade, consisting of some 50 motorcycles and 10 cars stopped by the PAL In-Flight Center along MIA Road.
Security personnel and airport police prevented the motorcade from entering the Ninoy Aquino International Airport Terminal 2 where the MacroAsia office is located.
The blockage caused heavy traffic in the area for some 30 minutes to the chagrin of motorists, which Rivera said was not intentional.
Rivera said the union and PAL management have not yet reached an agreement on the temporary outsourcing arrangement set for June 16.
“We are ready to defend our jobs and the union if PAL does not back down from deploying contractual workers. We will be vigilant until there is a firm commitment for direct hiring instead of temporary outsourcing,” he said. With reports from Julie M. Aurelio and Philip C. Tubeza
PAL hiring 60 service agents despite layoffs
Manila Standard Today
June 14, 2011
PHILIPPINE Airlines on Monday said it was hiring 60 customer service agents despite the flag carrier’s plan to outsource nearly 3,000 airport ground workers and customer service agents.
An airline official said the hiring was prompted by the recent resignations of 80 agents, of whom 18 had been poached to work in Singapore’s Changi Airport by SATS Ltd. The rest found work in the Middle East.
The Lucio Tan-controlled carrier had initially planned to employ contractual labor from MacroAsia, a ground-handling company also controlled by Tan, for six months, but decided against it after the union protested, airline spokesman Cielo Villaluna said.
“To avoid inconvenience to our passengers in terms of longer queues and waiting times, the management decided to hire customer service agents directly,” she said.
A customer service agent here earns P15,000 to P30,000 a month compared with the US$1,500 a month and housing benefits being offered in Singapore.
The PAL Employees’ Association used the airline’s hiring of customer agents as an excuse to hold a protest motorcade on Monday. Eric B. Apolonio
June 14, 2011
PHILIPPINE Airlines on Monday said it was hiring 60 customer service agents despite the flag carrier’s plan to outsource nearly 3,000 airport ground workers and customer service agents.
An airline official said the hiring was prompted by the recent resignations of 80 agents, of whom 18 had been poached to work in Singapore’s Changi Airport by SATS Ltd. The rest found work in the Middle East.
The Lucio Tan-controlled carrier had initially planned to employ contractual labor from MacroAsia, a ground-handling company also controlled by Tan, for six months, but decided against it after the union protested, airline spokesman Cielo Villaluna said.
“To avoid inconvenience to our passengers in terms of longer queues and waiting times, the management decided to hire customer service agents directly,” she said.
A customer service agent here earns P15,000 to P30,000 a month compared with the US$1,500 a month and housing benefits being offered in Singapore.
The PAL Employees’ Association used the airline’s hiring of customer agents as an excuse to hold a protest motorcade on Monday. Eric B. Apolonio
Monday, June 13, 2011
We will directly hire CSAs to augment work force – PAL
Manila Bulletin
By SAMUEL P. MEDENILLA
June 13, 2011, 8:00pm
MANILA, Philippines — Philippine Airlines (PAL) Monday denied it will outsource workers to augment its dwindling work force as earlier claimed by the ground-based labor union.
In a statement, PAL spokesperson Cielo Villaluna said PAL will directly hire 60 Customer Service Agents to replace those who resigned or had been pirated over the past few weeks.
Villanueva said PAL will directly hire 60 CSAs to man check-in counters and perform other ground duty.
"To avoid inconvenience to our passengers in terms of longer queues and waiting times, PAL management started processing applications for Customer Service Agents," she said.
She said that PAL does not plan to hire people from aviation and logistics provider MacroAsia Corporation as earlier claimed by Philippine Airlines Employees Association (PALEA).
“Claims by PALEA that PAL management will start using MacroAsia workers to man check in counters and departure gates starting June 16 is totally untrue and baseless," she said.
Meanwhile, PALEA Gerardo Rivera reiterated in a statement it will go on strike if PAL will push through its plans to outsource its customer service departments.
By SAMUEL P. MEDENILLA
June 13, 2011, 8:00pm
MANILA, Philippines — Philippine Airlines (PAL) Monday denied it will outsource workers to augment its dwindling work force as earlier claimed by the ground-based labor union.
In a statement, PAL spokesperson Cielo Villaluna said PAL will directly hire 60 Customer Service Agents to replace those who resigned or had been pirated over the past few weeks.
Villanueva said PAL will directly hire 60 CSAs to man check-in counters and perform other ground duty.
"To avoid inconvenience to our passengers in terms of longer queues and waiting times, PAL management started processing applications for Customer Service Agents," she said.
She said that PAL does not plan to hire people from aviation and logistics provider MacroAsia Corporation as earlier claimed by Philippine Airlines Employees Association (PALEA).
“Claims by PALEA that PAL management will start using MacroAsia workers to man check in counters and departure gates starting June 16 is totally untrue and baseless," she said.
Meanwhile, PALEA Gerardo Rivera reiterated in a statement it will go on strike if PAL will push through its plans to outsource its customer service departments.
Monday, June 6, 2011
CA junks FASAP petition
Manila Bulletin
June 6, 2011
By LEONARD D. POSTRADO
MANILA, Philippines -- The Court of Appeals has junked the petition filed by the Flight Attendants’ and Stewards Association of the Philippines (FASAP) seeking to set aside a National Labor Relations Commission (NLRC) decision which dismissed the group's complaint for unfair labor practice against Philippine Airlines, Inc.(PAL), the country’s national carrier.
In a 10-page ruling penned by Associate Justice Danton Bueser, the CA’s Tenth Division denied FASAP’s petition for certiorari and affirmed the decision of NLRC, which was issued on February 25, 2009, to dismiss FASAP's complaint against PAL.
“After a careful review of the facts, the Court finds that the respondents cannot be made responsible for ULP (unfair labor practice). The petitioner, as the alleging party, has the burden of proving the ULP with substantial evidence as the same is punishable with both civil and/or criminal sanctions,” said the CA ruling.
The appellate court pointed out that the petitioners failed to show prima facie proof that PAL was guilty of unfair labor practice.
“Here, there was no clear and substantial evidence confirming that the management decision to deploy line administrators to act as flight pursers interferes or restrains petitioner’s right to self-organize,” it added.
Concurring with the ruling were Associate Justices Hakim Abdulwahid and Ricardo Rosario.
Court records showed that FASAP filed a complaint for unfair labor practice against PAL and the line administrators tasked as flight pursers on September 29, 1997.
An airline purser or flight purser usually oversees the flight attendants to ensure airplane passengers are safe and comfortable.
It claimed that on December 19, 1996, it entered into an agreement with the respondents for the temporary utilization of domestic cabin crew, contractual crew and administrative personnel for international operations of PAL.
However, after the expiration of the agreement, FASAP said respondents still continued to deploy administrative personnel, particularly line administrators, to act as flight pursers.
FASAP said there was violation not only of the December 1996 joint deal but also of the Collective Bargaining Agreement (CBA).
June 6, 2011
By LEONARD D. POSTRADO
MANILA, Philippines -- The Court of Appeals has junked the petition filed by the Flight Attendants’ and Stewards Association of the Philippines (FASAP) seeking to set aside a National Labor Relations Commission (NLRC) decision which dismissed the group's complaint for unfair labor practice against Philippine Airlines, Inc.(PAL), the country’s national carrier.
In a 10-page ruling penned by Associate Justice Danton Bueser, the CA’s Tenth Division denied FASAP’s petition for certiorari and affirmed the decision of NLRC, which was issued on February 25, 2009, to dismiss FASAP's complaint against PAL.
“After a careful review of the facts, the Court finds that the respondents cannot be made responsible for ULP (unfair labor practice). The petitioner, as the alleging party, has the burden of proving the ULP with substantial evidence as the same is punishable with both civil and/or criminal sanctions,” said the CA ruling.
The appellate court pointed out that the petitioners failed to show prima facie proof that PAL was guilty of unfair labor practice.
“Here, there was no clear and substantial evidence confirming that the management decision to deploy line administrators to act as flight pursers interferes or restrains petitioner’s right to self-organize,” it added.
Concurring with the ruling were Associate Justices Hakim Abdulwahid and Ricardo Rosario.
Court records showed that FASAP filed a complaint for unfair labor practice against PAL and the line administrators tasked as flight pursers on September 29, 1997.
An airline purser or flight purser usually oversees the flight attendants to ensure airplane passengers are safe and comfortable.
It claimed that on December 19, 1996, it entered into an agreement with the respondents for the temporary utilization of domestic cabin crew, contractual crew and administrative personnel for international operations of PAL.
However, after the expiration of the agreement, FASAP said respondents still continued to deploy administrative personnel, particularly line administrators, to act as flight pursers.
FASAP said there was violation not only of the December 1996 joint deal but also of the Collective Bargaining Agreement (CBA).
Unfair labor practice case vs PAL junked
BusinessWorld
June 6, 2011
THE COURT of Appeals has dismissed an unfair labor practice claim lodged by the Flight Attendants’ and Stewards’ Association of the Philippines (FASAP) against Philippine Airlines (PAL) regarding the latter’s use of line administrators as flight attendants in 1996.
The appellate court’s 10th Division said in a May 26 ruling that PAL’s transfer of line administrators as flight attendants did not constitute unfair labor practice or contractualization since one of line administrators’ duties is to serve as flight attendants.
The case stemmed from a December 1996 deal between FASAP and PAL for the temporary assignment of line administrators as flight attendants to avert the manpower shortage and losses that PAL has been experiencing at that time.
However, FASAP filed a complaint at the National Labor Relations Commission (NLRC) in September 1997 after PAL continued to deploy the administrators as flight attendants despite the expiration of their agreement.
In September 1998, the NLRC rendered a decision favoring FASAP and finding PAL guilty of acts of unfair labor practice. PAL was also ordered to stop the practice.
However, on appeal by PAL, the NLRC reversed its decision and dismissed FASAP’s claims for loss of productivity pay, per diem, bar sales commission, duty time incentive, tech-stops pay, reserve pay, and damages.
In its decision, the NLRC said that the move of PAL to recruit its own line administrators to become flight attendants cannot be considered contractualization as they are also employees of PAL, and it is well within their job description to work as flight attendants. “There is no reason for us not to adopt the above ruling,” the appellate court’s decision read, citing the NLRC decision.
Furthermore, the court said that FASAP failed to prove that PAL’s move to use line administrators as flight attendants had interfered with their right to self-organization, which would then become unfair labor practice.
“The court finds that the respondents cannot be made responsible for [unfair labor practice]...,” the decision stated. -- Nathaniel R. Melican
June 6, 2011
THE COURT of Appeals has dismissed an unfair labor practice claim lodged by the Flight Attendants’ and Stewards’ Association of the Philippines (FASAP) against Philippine Airlines (PAL) regarding the latter’s use of line administrators as flight attendants in 1996.
The appellate court’s 10th Division said in a May 26 ruling that PAL’s transfer of line administrators as flight attendants did not constitute unfair labor practice or contractualization since one of line administrators’ duties is to serve as flight attendants.
The case stemmed from a December 1996 deal between FASAP and PAL for the temporary assignment of line administrators as flight attendants to avert the manpower shortage and losses that PAL has been experiencing at that time.
However, FASAP filed a complaint at the National Labor Relations Commission (NLRC) in September 1997 after PAL continued to deploy the administrators as flight attendants despite the expiration of their agreement.
In September 1998, the NLRC rendered a decision favoring FASAP and finding PAL guilty of acts of unfair labor practice. PAL was also ordered to stop the practice.
However, on appeal by PAL, the NLRC reversed its decision and dismissed FASAP’s claims for loss of productivity pay, per diem, bar sales commission, duty time incentive, tech-stops pay, reserve pay, and damages.
In its decision, the NLRC said that the move of PAL to recruit its own line administrators to become flight attendants cannot be considered contractualization as they are also employees of PAL, and it is well within their job description to work as flight attendants. “There is no reason for us not to adopt the above ruling,” the appellate court’s decision read, citing the NLRC decision.
Furthermore, the court said that FASAP failed to prove that PAL’s move to use line administrators as flight attendants had interfered with their right to self-organization, which would then become unfair labor practice.
“The court finds that the respondents cannot be made responsible for [unfair labor practice]...,” the decision stated. -- Nathaniel R. Melican
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