PAL Unions Unfazed by Closure Notice

Manila Bulletin
Saturday, September 19, 1998

The three labor unions at the Philippine Airlines (PAL) remained unfazed yesterday by the notice of closure effective Sept. 23 submitted by management to the National Conciliation and Mediation Board (NCMB) last Thursday after they declined PAL stock proposal whereby company shares would be given to the employes in exchange for a 10-year suspension of the collective bargaining agreements (CBAs).

The unions said in a press conference in Makati City yesterday that they are ready for the consequences of their actions.

The unions — PAL Employees’ Association (PALEA), Flight Attendants and Stewards Association of the Philippines (FASAP) and Airline Pilots Association of the Philippines — said they could not, on legal and factual grounds, surrender the constitutional and statutory rights to unionism and collective bargaining.

"PAL's condition of suspending the CBAs for 10 years not only bars any chance of recall for our members who were earlier retrenched but practically eliminates the universally accepted and constitutionally guaranteed right of labor to the collective bargaining process," the unions said.

ALPAP's spokesman Florendo Umali said PAL management is trying to shift to the unions the blame for the company's heavy financial losses when they are merely the responsibility of management.

Umali said that before the pilots' strike last June, PAL was already losing heavily because of mismanagement

"The unions have nothing to do with PAL's financial trouble," Umali said. "It's the sole responsibility of management."

FASAP added that when PAL stock proposal was discussed at the level of the Presidential Inter-Agency Task Force headed by Finance Secretary Edgardo B. Espiritu, the initial parameters merely involved the suspension of certain CBA provisions and/or work rules that impacted on PAL's short-term financial viability to turn around.

Later, FASAP said, it was clarified that the thrust of the PAL proposal was not a mere "suspension" of the CBA. It actually meant, in effect, the abrogation or recession of the CBAs for 10 years and was made on a "take it or leave it offer" with the threat of imminent closure of the company in case the unions opt for the latter.

In its notice of closure submitted to NCMB, PAL said the insurmountable burden of continued losses has become too heavy for the company to bear.

"It is not easy to preside over the demise of a great Filipino institution that has been a partner in nation-building for over half a century. Sadly, our sincere efforts to keep PAL flying and serve the riding public have not been matched by a similar commitment for our employes' union," PAL said.

It stressed that closure is inevitable because this is the only way to preserve the company's assets to ensure their orderly liquidation and disposition to creditors and other claimants. (E.T. Suarez)

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Erap

President Estrada made yesterday a last-ditched effort to save the beleaguered Philippine Air Lines from closure following marathon meetings he presided over to forge a compromise settlement between management and the striking union officials.

The President's intervention came after PAL management threatened to stop airline operations by midnight of Sept. 23 after the union rejected PAL's last offer of a 20 percent share of airline stocks to the strikers.

He called both management and union to another meeting on Monday to convince them to save the airline from shutdown through a referendum.

The President has indicated that he has asked PAL owner to bend backwards to accommodate the proposals of the employes.

"We will meet on middle ground. We are still hoping," the President said, adding that he will do everything to get both sides to agree on a compromise settlement (Brenda Tuazon)

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Ople

Senate President Pro Tempore Blas F. Ople said yesterday that the national government should not hesitate to take over the operations of the Philippine Airlines (PAL) to protect the national interest if all conciliation remedies, including that of President Estrada's, fail before the threatened Sept. 23 closure of PAL takes effect.

Ople said the national government is authorized by section 17 of Article XII of the 1987 Constitution to take over the operations of the nation's flag carrier. The constitutional provision states: "In times of emergency, when the public interest so requires, the State may, during the emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of any privately-owned public utility or business affected with public interest:

Ople expressed fears that PAL's closure would hurt the economy, particularly exporters, and would shut down vital services to the people, especially those in the far-flung areas of the country which are accessible only by air.

The chairman of the Senate foreign relations committee said he would file Monday in the Senate a joint resolution calling on the government to take over.