PAL plans to outsource 4,000 regular jobs

By EMMIE V. ABADILLA
January 19, 2010, 3:21pm
Manila Bulletin

Philippine Airlines (PAL) has to outsource operations and lay off 4,000 regular jobs to cut costs or go bankrupt.
This has been a nagging concern of the PAL Employees Association (PALEA), according to President Edgardo C. Oredina in his letter to PALEA members last month (December, 22, 2009).
Without a new capital infusion, the flag carrier will go bankrupt, the union chief quoted PAL President Jaime J. Bautista as saying to the National Conciliation and Mediation of the Department of Labor and Employment (DoLE) board two months ago.
PAL Chairman Lucio Tan usually infuses capital into the flag carrier as a temporary relief to sustain its operations. But now, the airline plans to outsource some of its operations to avoid being in the red.
PALEA wrote to President Gloria Macapagal Arroyo requesting her to intervene to prevent the layoff of thousands of workers, Oredina revealed. When Malacanang did not respond, the union sought the help of DOLE and asked whether it is possible for the government to take over PAL if the need arises.
However, the possibility of a state takeover of the flag carrier is “very remote,” DoLE Secretary Marianito Roque told PALEA. “The government has no capacity to operate an airline.” He assured them instead that DoLE will help on the issue of job preservation and that no worker will be displaced.
PALEA was also concerned that the gains of low fares no frills airlines like Cebu Pacific are the loss of legacy airlines and flag carriers like PAL.