PAL seeks reversal of Labor ruling on benefits

by Eric B. Apolonio and Vito Barcelo
Manila Standard Today

PHILIPPINE Airlines is seeking a reversal of a Labor department ruling last year granting P250 million for benefits and salary increases.

PAL President and Chief Operating Officer Jaime Bautista said that apart from the lack of legal and factual basis, the ruling of the Department of Labor and Employment is “confiscatory” as it obligates the flag carrier to share its projected income even though the comnpany has not really made money.

Bautista said a motion for reconsideration was filed last Friday by its legal team to counter the decision granted by DoLE.

The oOLE decision last Dec. 23, 2010 ruled in favor of the Flight Attendants and Stewards Association, granting back salary increases amounting to P222 million, a higher compulsory retirement age of 60 years old, and increased monthly allowance of P1,800, among others.

Fasap president Bob Anduiza said PAL missed the golden opportunity for reconciliation with its flight attendants. The group expressed its desire to reconcile with PAL management in a letter to Bautista dated Jan. 5, 2011.

Anduiza said the recent decision of Labor Secretary Rosalinda Baldoz, in resolving the PAL-Fasap collective bargaining agreement dispute, could had been a golden opportunity for both parties to work together and face the tough competition in the Airline industry.

Bautista said DoLE wantonly disregarded evidence and the rules of fair play in violation of its duty to render a decision based on fact and law.

“The subject of the labor dispute is the deadlock in the CBA negotiations between PAL and Fasap from the period July 16, 2007 to July 15, 2010, but the DoLE based its economic awards to Fasap on PAL’s purported financial statements for fiscal year 2010-2011, specifically covering only the months of April, May and June 2010,” Bautista told the Manila Standard.

He said these financial statement cannot subvert or supplant the fact that PAL incurred losses.

“In essence, Dole is directing PAL to grant hefty pay increases for July 2007 to July 2010 despite its knowledge and awareness of PAL’s massive losses for the same perion,” Bautista added.