By Mina Diaz
11/10/2010
The Daily Tribune
Labor-strife plagued Philippine Airlines (PAL) accused officers of the PAL Employees Association (Palea) of peddling lies while asking them to produce documentary proof to show alleged links between PAL chairman
Lucio Tan and three service providers that will take over PAL’s Inflight Catering, airport services and call center departments under a contested spin off plan that received government approval.
“The best proof is the corporate records of these companies. However, PAL is under no obligation to disclose them. As the one making baseless and malicious claims, the burden of proof is on Palea,” PAL said in a statement.
PAL president Jaime Bautista had stressed that third party service providers like PLDT e-Ventus for Call Center/Reservations is owned by PLDT while Sky Kitchen for Catering and Sky Logistics for Airport Services are both owned by Cebu-based businessman Manny Osmeña. These service providers are not owned by Tan or any of his family members.
PAL added that its lawyers are currently studying the airline’s legal options and whether it can sue Palea officers for spreading false information.
Recently, the Department of Labor and Employment (DoLE) issued a decision recognizing PAL management’s prerogative to restructure its operations, a move that will cost the flag carrier an estimated P2.5-billion.
Bautista said the planned spin-off of PAL’s In-Flight Catering, Airport Services and Call Center Reservations was originally estimated to cost about P2-billion under the original DOLE decision. However, the recent ruling of Labor Secretary Rosalinda Baldoz pushed up the figure by more than P400-million due to enhanced separation benefits and other modifications in the financial and non-cash awards.
“Given its recent losses and current financial position, PAL would be hard put to raise P2.5-billion but this is a bitter pill we have to swallow. PAL believes DoLE’s decision is ‘just, reasonable and humane’. Since it has the force and effect of a law, we must respect the ruling,” he said.
PAL said the bonuses which Palea claims were given to top airline officials at a time when it is incurring losses actually represent the 13th month and 14th month pay that all other PAL workers received.
“PAL will be in violation of the law if it will not give out the mandatory 13th month pay, whereas the 14th month pay is the same bonus received by all PAL workers but the amount, of course, depends on the salary grade of each employee,” the statement read.
Meanwhile, PAL said it is ready to share its views and clarify issues regarding its spin-off program during the scheduled hearing today in Congress. Airline officials were invited by the House labor committee to shed light about the planned spin-off as well as the recent ruling by the DoLE. The company stressed, however, that its officials are constrained from talking about cases that are still pending litigation as these matters are sub judice in nature.
Barring the grant of a higher court of a temporary restraining order to be filed by Palea, Bautista said PAL management plans to implement the appropriate provisions of DoLE’s Order after the prescriptive period for further legal remedies has lapsed.
“Baldoz, no less, assured Palea there will be no jobs lost in the spin off. Aside from receiving their benefits, all affected workers have the option of applying for positions in the third party service providers if they so choose,” he said.
Bautista assured PAL passengers and customers that the implementation of the spin off will not affect the flag carrier’s daily flights and other ground services.
Bautista said Palea’s apprehensions on the spin off can best be allayed by referring to the actual events of the successful turn-over in 2000 of PAL’s Maintenance and Engineering Department to Lufthansa Technik Philippines (LTP), a world-class maintenance, repair and overhaul service provider.
The more than 1,300 mechanics and other skilled workers who transferred to LTP and are now enjoying fulfilling careers, can confirm those spin off anxieties are unfounded, he said.
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