Business World
Thursday, September 3, 1998
By Patrisha Joan F. De Leon
Reporter
As its employees demand to know more about management’s long-term plans, Philippine Airlines, Inc. (PAL) has started restructuring its corporate leadership.
Business World sources at PAL said a memorandum dated Aug. 26 and signed by PAL Corporate Secretary and Senior Vice President for Corporate Counsel Antonio Ocampo, was issued to all group and department heads advising them of the creation of an “Operations Group” and the realignment of all departments.
The sources said the memorandum was accompanied by a revised company organizational chart.
The operations group is composed of Cabin Services, Airport Services, Catering and Flight Operation departments and will be headed by former Vice President for Flight Operations Rogelio Narciso who has been designated as “officer in charge.”
The department is now under the Operations Group departments were formerly under the Administration and Services Group.
Under the new setup, the departments retained by the administration and services group are Security, Corporate Communications, Human Resources and Logistics and Purchasing.
With the creation of the Operations Group, the sources said PAL operations are now divided into four major groups with Administration and Services, Sales and Marketing and Finance.
The PAL sources also said there is a significant realignment of personalities in the flag carrier’s leadership structure.
While the Administration and Services Group remained under Executive Vice-President Manalo Aquino, the Sales and Marketing Group is now under Vice-President and Executive Assistant to the Chairman Henry So Uy, to whom Senior Vice-President for Sales and Services Avelino Zapanta will be reporting to.
Other departments under Mr. So Uy include Marketing, External Affairs, Cargo Sales and the airline’s Philippine, American and Asian regional offices.
On the other hand, departments under the Finance group remained untouched with the Treasury, Corporate Finance and Comptrollership still under Chief Financial Officer and Senior Vice President for Finance Jaime Bautista.
No explanation on the reorganization was offered in the memorandum.
Meanwhile, leaders of the ground crew, flight attendants and pilots unions have formally asked the government’s interagency task force in charge of the flag carrier’s rehabilitation plan require management to submit an official proposal of its 20% employee stock option plan.
Union sources privy to the task force’s Sept. 1 meeting said while management has insisted the company was losing money, “they could not even answer the unions on what was their corporate plan for the next five years.”
The other day, leaders of PAL Employees’ Association , Flight Attendants and Stewards Association of the Philippines and Airline Pilots Association of the Philippines met with the government’s interagency task force to discuss PAL’s labor concerns.
During the meeting, task force officials had to summon management representatives to answer the unions’ queries, particularly the company’s official stand on the employees’ stock option plan.
Despite this, management officials could not provide sufficient answers and also failed to clarify details of the flag carrier’s new “Plan 25.” In the end, the unions requested that they be given copies of management’s official proposal on the stock option plan.
The PAL task force convened another meeting with the unions yesterday afternoon to continue discussions.
“We will see from the proposal whether they are not only sincere, but also honest with their intentions… Until we see that, this may turn out to be another zarzuela,” one union source said.
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