SC Urged to Junk Petition vs PAL-Palea Agreement

Malaya

Friday, December 18, 1998

By Jay B. Rempillo

The Office of the Solicitor General has asked the Supreme Court to junk a case filed by seven officials of the Philippine Airlines Employees’ Association (Palea) seeking to stop implementation of a PAL-Palea agreement suspending collective bargaining for 10 years.

“The present petition assailing the validity of the PAL-Palea agreement is premature. The fear that Palea will degenerate into a company union is speculative, and a mere contingency at the present time which does not warrant immediate nullification of the agreement," said Solicitor General Ricardo Galvez in a 34-page comment.

The agreement was crucial for the resumption of PAL operations on Oct. 9

The Palea petition was filed October 8, a day after PAL resumed operations after a one-month shutdown.

Among the respondents were Finance Secretary Edgardo Espiritu, who headed an inter-agency task force created by Malacañang to look for solutions to the PAL’s financial and operational problems.

The agreement, which was approved by a majority of the 6,738 Palea members, provides for a 10-year industrial peace in exchange for 60,000 shares of stocks per employe, four seats in the board of directors, representation in the audit committee, union recognition, and the assurance that there will be no reduction in salaries and medical benefits.

Galvez said the Palea officials should have first brought up the issue before the PAL inter-agency task force.