Labor takes over PAL row

Philippine Daily Inquirer
First Posted 05:36:00 04/02/2011
By Jocelyn R. Uy, Tina Santos

MANILA, Philippines—Hours before the strike ban imposed on the Philippine Airlines’ (PAL) ground crew union lapsed on Friday, the labor department turned over the case to the National Labor Relations Commission (NLRC), effectively averting a work stoppage at the national flag carrier.

Labor Secretary Rosalinda Baldoz on Friday issued a certification order, handing over the labor dispute to the NLRC since the issue involved “unfair labor practices” and not a deadlock in the collective bargaining agreement (CBA).

“The Department of Labor and Employment (DoLE) cannot assume jurisdiction because what is being talked about is unfair labor practices, not a deadlock in the CBA,” Baldoz told the Inquirer by phone on Friday night.

Same effect

But the certification order has the same effect as the assumption of jurisdiction as the former would also prevent the Philippine Airlines Employees’ Association (Palea) from going on strike, explained Baldoz.
Palea cannot push through with its planned work stoppage while the case is being heard by the NLRC, she said.

DoLE also upheld its earlier decision to stop PAL from retiring senior flight attendants who reach the age of 55.

In its ruling, the DoLE Friday affirmed its previous decision favoring the Flight Attendants and Stewards Association of the Philippines (Fasap) in its CBA dispute with PAL.

Baldoz also directed PAL to reinstate the flight pursers who were retired while the labor case was being heard.

Before the DoLE order, Palea members and their supporters snarled traffic along Tramo Street in Pasay City Frid\ afternoon as they marched to Terminal 2 of the Ninoy Aquino International Airport.

‘All systems go’

Palea members, along with other militant groups, announced that it’s all systems go for their first nationwide strike since 1998.

“Palea is 100 percent ready for a strike that will paralyze the operations of Philippine Airlines which is in cahoots with the Aquino government in denying workers the right to regular jobs and a collective bargaining agreement (CBA),” said Palea president Gerry Rivera in a statement.

He stressed that a strike could only be prevented if PAL heeds their demand to stop outsourcing and open CBA negotiations without preconditions.

Rivera added that synchronized mass actions were also held in Cebu and Davao.

“PAL will earn $1.6 billion in profit this year. Yet it refuses to share the fruits of production with its employees via a CBA,” Rivera insisted.

Ready for the worst

But PAL Friday assured its passengers that the national flag carrier is ready for a ‘worst case scenario’ of an actual work stoppage.

In a statement, PAL said it is ready to implement contingency measures to minimize flight disruptions and avoid passenger inconvenience in case a threatened walkout by its ground crew pushes through.
“Many PAL administrative employees, and even union members themselves, believe that a strike will not do the company any good. As such, they are ready to man posts to be vacated by protesting workers,” PAL president and COO Jaime J. Bautista said.

“We apologize to our passengers for whatever anxiety and inconvenience threats of work stoppage have spawned. Rest assured we are doing everything we can to ensure that your flights will proceed as scheduled,” he added.

Bautista said the planned strike had no legal basis. “First, it’s not true that management refuses to convene negotiations for a new CBA as claimed by Palea. Second, the union’s claim that there is no justifiable reasons for the spinoff of three units—airport services, in-flight catering and call center reservations—likewise have no leg to stand on,” he stressed.

  

Reverse backpay ruling, PAL asks DOLE

Monday, 10 January 2011 21:04   Recto Mercene / Reporter

CITING the huge overlay to cover the cost in the rise of aviation fuel among other expenditures, flag carrier Philippine Airlines (PAL) on Monday appealed to the Department of Labor and Employment (DOLE) to reverse its ruling granting hefty back-salary increase and higher retirement age for cabin crews.

PAL president and COO Jaime Bautista, in a press conference, said that apart from lack of legal and factual basis, the DOLE ruling is “confiscatory” as it obliges the flag carrier to share income it has yet to earn.

On Friday PAL lawyers filed a motion for reconsideration against the DOLE’s order raising the flight attendant’s retirement age to 60 years old. Bautista said the ruling has no justification in law and jurisprudence, and goes against industry practice worldwide.

According to Bautista, the cost of fuel at the start of the fiscal year was $80 a barrel, which would mean $5.5 million for PAL. Now that the cost of fuel is going from $80 to $90 a barrel, or a difference of $10 a barrel, PAL is
expected to spend $55 million this year alone.

“Fuel cost represents the largest overhead in terms of expenditures for PAL, followed by labor and then maintenance,” Bautista said.

On December 23, 2010, Labor Secretary Rosalinda Baldoz favored the Flight Attendants and Stewards Association (Fasap) with the grant of P222 million in total back-salary increase, compulsory retirement age of 60 years and increased monthly rice allowance of P1,800 and other benefits.

The DOLE also wanted PAL to reinstate its lump-sum offer of P80 million to Fasap.

PAL said the DOLE’s wanton disregard of the evidence and rule of fair play is a violation of its duty to render a decision based on fact and law, Bautista said.

Although the subject of the labor dispute is the deadlock in negotiations between the contending parties from July 2007 to July 2010, the DOLE based its economic awards to Fasap on PAL’s purported financial statements for fiscal year 2010-11.

“These financial statements cannot subvert or supplant the fact that PAL incurred losses and, in essence, DOLE is directing PAL to grant hefty pay increases from July 2007 to July 2010 despite its knowledge of the airline’s massive losses for the same period,” Bautista said.

He added that PAL could only infer that the DOLE viewed future earnings can be applied to salary increases it granted to Fasap.

“This will result in an absurd situation,” Bautista said.

He called the DOLE’s move “unthinkable fiscal maneuvering,” considering that it already pledged PAL income for the coming years, and wondered where PAL is supposed to source funds for succeeding demands for salary increase when negotiations for 2010-15 CBA begins.

To prove its point, PAL presented to the DOLE its records showing losses of $297.8 million in fiscal year 2008-2009, and $14.3 million for fiscal year ending March 2010.

On the retirement-age issue, Bautista said DOLE should not have ignored that the memorandum of agreement between the company and Fasap that provided lower-retirement age was the product of voluntary negotiations of their previous CBA.

PAL said the Labor Code, as amended by RA 7641, states that any person may be retired upon reaching the retirement age established in the CBA or other applicable employment contract.

“Thus, a careful reading of the provision indicates that employers and employees are at liberty to agree and fix the applicable retirement age even at below 60 years old.”

Bautista pointed out that the DOLE failed to consider that the average retirement age of most, if not all, of PAL’s fiercest competitors in Asean is much less than 60 years old.

“Early retirement for flight attendants is fast-becoming the rule rather than the exception,” he pointed out.

Bautista rebuked the DOLE for accepting Fasap’s argument that since the 2005-10 CBA on agreed retirement age had expired, then there is no more agreed retirement age to invoke.

“We can’t understand how DOLE and Fasap can legally justify that only the retirement-age provisions of PAL-Fasap CBA have expired, while other provisions on salaries, perks and work rules remain valid and in effect,” he added.

Bautista said even in the absence of an agreement, outright rejection of PAL’s position is not warranted without taking into account the bargaining history between the parties.

He said PAL did not force Fasap to accept the early-retirement provisions, as these were subject of negotiations and were approved and ratified by Fasap members in exchange for numerous concessions, in the form of monetary benefits, easier work rules and other perks.

On the other hand, Fasap president Bob Anduiza praised the DOLE decision as a golden opportunity for both parties to work together and face the tough competition in the Airline industry.

“We urge PAL to join hands with its flight attendants. We need one another to support the company’s operations and beat PAL’s competitors.”

However, Fasap said on Monday it is “obvious that PAL management opt to continue fighting with its flight attendants.”

Anduiza pointed out that PAL management has the capacity to pay Fasap for salary increases, citing the DOLE’s report on the financial statements of PAL last year.

Baldoz cited PAL’s own financial statements for April, May and June 2010. The records show that its “equity had doubled from P1,695,532,000 [as of March 31, 2010] to P3,321,653,000.”

“It is really pathetic that PAL is once again hogging the news not to promote travel and tourism, but because of labor disputes. The airline industry is very competitive but instead of focusing on running the business well, of selling more tickets and attracting more passengers, our management is concentrating on fighting its own frontliners, the flight attendants,” Anduiza said. (With S. Fabunan)

Aquino halts PAL retrenchments

Thursday, 16 December 2010 01:16 Mia M. Gonzalez and Recto Mercene / Reporters
Business Mirror

CITING the need to protect national interest, Malacañang has assumed jurisdiction over the labor row between Philippine Airlines (PAL) management and the Philippine Airlines Employees Association (Palea), and stayed the Department of Labor and Employment (DOLE) order allowing a retrenchment at the national carrier.

The Palace order, contained in its decision on the petition filed by Palea with the Office of the President (OP) seeking presidential intervention in the PAL labor dispute, directs PAL management and Palea “to desist from undertaking any action that will aggravate the situation” pending the resolution of the petition, including going on strike on the part of Palea.

Presidential Spokesman Edwin Lacierda told reporters at the Palace press area that the OP order “stays two orders of the secretary of Labor.”

“What it plainly means is that on the part of labor, they will not engage in strikes. On the part of management, there will be no lockout. Everything is on hold.... By assuming jurisdiction, the government will intervene and discuss it with both parties,” Lacierda said.

He added: “If and when there is no agreement, then the Office of the President will render decision on the petition of Palea.”

In the OP order, Ochoa said the petition to suspend the effect of mass  termination and the notice of strike “are hereby consolidated with the main petition.”

“Pending determination of the merits, thereof, and so as not to render moot and academic the resolution of the case, the orders dated 15 June 2010 and 29 October 2010 of the secretary of Labor...are stayed,” Ochoa said.

He added: “Palea and PAL management are directed to desist from undertaking any action that will aggravate the situation pending the resolution of this petition.”

Ochoa said that in issuing the directive, “it is but fair and just to afford Palea ample opportunity to exhaust its legal remedies available under the law.”

He said that while Article 263(i) of the Labor Code “provides, among others, that the decision of the secretary of Labor and Employment shall be final and executory in 10 calendar days after receipt thereof by the parties, pursuant to Section 6 of Administrative Order 18, we hold in abeyance the implementation of the subject order to give way to the overriding interests of the parties.”

Ochoa cited Article 263 (g) paragraph 3 of the Labor Code, which provides that “...the President of the Philippines shall not preclude from determining the industries that, in his opinion, are indispensable to the national interest, and from intervening at any time and assuming jurisdiction over any such labor dispute in order to settle or terminate the same.”

“Explicit in the statutory provision is the grant of power to the President to intervene at any time and assume jurisdiction over a labor dispute involving industries indispensable to national interest. Nowhere is it provided therein, that the same should be by way of appeal or through an original action as an extraordinary remedy,” Ochoa said.

He said the power of the President to review the DOLE orders is enshrined in Article VII, Section 17 of the Philippine Constitution, which states that “the President shall have control of all the executive departments, bureaus and offices.”

“And when the industries indispensable to national interest [the determination of which the Labor Code vested to the President of the Philippines and the secretary of Labor and Employment, with utmost unlimited discretion], get entangled in a labor dispute as in the instant case, the same code provides for Presidential intervention,” Ochoa said.

For its part, the PAL management yesterday said it will respect Malacañang’s assumption order which effectively stopped the PAL union’s strike plans and also held in abeyance the flag carrier’s spin-off program pending the result of the Palace review of the case.

PAL president Jaime Bautista said the flag carrier would abide by the Palace order as it has always done in the past.

“PAL would like to reiterate that it has not in any way, shape or form implemented the spin-off of its three noncore businesses, as it is awaiting the result of the Palace review of the labor dispute,” he said.

Bautista said the Palace order is most timely, since it comes at the height of the Christmas rush, when travelers have firmed up their travel plans and are eager to spend the holidays with their loved ones.
“While PAL’s spin-off program can wait, the order stopping the strike is the best Christmas gift the Palace can give to thousands of anxious PAL passengers with scheduled flights this holiday season. The strike ban will assuage the anxiety of our passengers in the midst of Palea’s repeated strike threats,” he added.

Bautista said PAL has always maintained that Malacañang has primary jurisdiction over the labor dispute. He stressed that it was Palea that sought presidential review of the earlier order of the Labor department recognizing the flag carrier’s prerogative to restructure its organization and implement a spin-off plan affecting some 2,600 workers.

Malacañang blocks PAL’s labor strike

Manila Standard Today
December 16, 2010

PRESIDENT Benigno Aquino III on Wednesday prevented a looming strike at Philippine Airlines by ordering the flag carrier to temporarily stop its plan to lay off 2,600 employees as part of its bid to outsource its catering, call center and airport services.

The order, signed by Executive Secretary Pacquito Ochoa Jr., stays a Labor Department decision that recognized the airline’s prerogative to reorganize its operations. It also stops the Philippine Airlines Employees Association from striking until the Palace decides on the case.

The Palace ordered both sides to avoid taking actions that would aggravate the situation pending a resolution of their dispute.

Before the Palace stepped in, the Labor Department allowed PAL to outsource its three units to third-party service providers and ordered the flag carrier to pay a 125-percent separation pay and a gratuity of P50,000 to each employee who would be laid off by the plan.
Union members voted to strike last week.

“It is an initial victory for [the union]. The order has stopped PAL’s mass termination of more than 2,600 employees,” the group’s lawyer Marlon Manuel said in a text message.

“We appreciate the President’s intervention in this dispute, which is an important issue not only to PAL workers but to all workers in the country.”

In a statement, PAL president Jaime Bautista said the flag carrier will abide by the Palace order.
“PAL would like to reiterate that it has not in any way, shape or form implemented the spin-off of its three non-core businesses, as it is awaiting the result of the Palace review of the labor dispute,” Bautista said.

He said the Palace order was timely since it came at the height of the Christmas rush, when travelers had firmed up their vacation plans.

“While PAL’s spin-off program can wait, the order stopping the strike is the best Christmas gift the Palace can give to thousands of anxious PAL passengers with scheduled flights this holiday season,” Bautista said.

“The strike ban will assuage the anxiety of our passengers in the midst of [the union’s] repeated strike threats.” Joyce Pangco Pañares

Malacañang blocks PAL’s labor strike

December 16, 2010
Manila Standard Today

PRESIDENT Benigno Aquino III on Wednesday prevented a looming strike at Philippine Airlines by ordering the flag carrier to temporarily stop its plan to lay off 2,600 employees as part of its bid to outsource its catering, call center and airport services.

The order, signed by Executive Secretary Pacquito Ochoa Jr., stays a Labor Department decision that recognized the airline’s prerogative to reorganize its operations. It also stops the Philippine Airlines Employees Association from striking until the Palace decides on the case.

The Palace ordered both sides to avoid taking actions that would aggravate the situation pending a resolution of their dispute.

Before the Palace stepped in, the Labor Department allowed PAL to outsource its three units to third-party service providers and ordered the flag carrier to pay a 125-percent separation pay and a gratuity of P50,000 to each employee who would be laid off by the plan.

Union members voted to strike last week.

“It is an initial victory for [the union]. The order has stopped PAL’s mass termination of more than 2,600 employees,” the group’s lawyer Marlon Manuel said in a text message.

“We appreciate the President’s intervention in this dispute, which is an important issue not only to PAL workers but to all workers in the country.”

In a statement, PAL president Jaime Bautista said the flag carrier will abide by the Palace order.
“PAL would like to reiterate that it has not in any way, shape or form implemented the spin-off of its three non-core businesses, as it is awaiting the result of the Palace review of the labor dispute,” Bautista said.

He said the Palace order was timely since it came at the height of the Christmas rush, when travelers had firmed up their vacation plans.

“While PAL’s spin-off program can wait, the order stopping the strike is the best Christmas gift the Palace can give to thousands of anxious PAL passengers with scheduled flights this holiday season,” Bautista said.

“The strike ban will assuage the anxiety of our passengers in the midst of [the union’s] repeated strike threats.” Joyce Pangco Pañares

No strike, no spin-off at PAL

Palace orders status quo
By Norman Bordadora, Paolo Montecillo
Philippine Daily Inquirer
First Posted 05:28:00 12/16/2010

MANILA, Philippines — President Benigno Aquino III has ordered the Philippine Airlines (PAL) management and union to refrain from any action that would ground the nation’s flag carrier, and suspended a program to spin off PAL’s related services, Malacañang said Wednesday.

Mr. Aquino’s directives “to desist from any action that will aggravate the situation pending resolution” of the case were contained in an order signed by Executive Secretary Paquito Ochoa Jr., according to the President’s spokesperson, Edwin Lacierda.

“What it plainly means is that on the part of labor, they’ll not engage in strikes. On the part of management, there will be no lockout,” Lacierda said in a news briefing.

Welcomed

Both PAL management and the Philippine Airlines Employees Association (PALEA) welcomed Malacañang’s order signed on Tuesday.

In a statement, PAL president Jaime J. Bautista said the flag carrier will abide by the Palace order as it has always done so in the past.

“PAL would like to reiterate that it has not, in any way, shape or form, implemented the spin-off of its three non-core businesses, as it is awaiting the results of the Palace review of the labor dispute,” he said.

Bautista said the Palace order is most timely since it comes at the height of the Christmas rush, when travelers have firmed up their travel plans and are eager to spend the holidays with their loved ones.
“While PAL’s spin-off program can wait, the order stopping the strike is the best Christmas gift the Palace can give to thousands of anxious PAL passengers with scheduled flights this holiday season. The strike ban will assuage the anxiety of our passengers in the midst of PALEA’s repeated strike threats,” he added.

Bautista said PAL has always maintained that Malacañang has primary jurisdiction over the labor dispute. He stressed that it was PALEA who sought presidential review of the earlier order of the Department of Labor and Employment recognizing the flag carrier’s prerogative to restructure its organization and implement a spin-off plan affecting some 2,600 workers.
Initial victory

“It is an initial victory for PALEA. The order has stopped PAL’s mass termination of more than 2,600 employees,” PALEA lawyer Marlon Manuel said.

“We appreciate the President’s intervention in this dispute, which is an important issue not only to PAL workers but to all workers in the country,” he added.

“We thank the President for this decision,” PALEA president Gerry Rivera said in a statement.
Rivera said the union had called off a strike planned this month. “This order by the Palace would be good for everybody, including especially for our union members,” he said.

“Holding a strike is very hard, but we planned one because we wanted to defend our jobs.”
PAL earlier said while its bookings had not been affected by strike threats, many worried passengers had called to ask if a possible work stoppage would result in a disruption of operations.

Palace orders status quo on PAL dispute

Posted on 09:54 PM, December 15, 2010
Business World

THE PALACE has issued a hold order on the labor dispute between the Philippine Airlines (PAL) management and its labor union over a planned outsourcing of the carrier’s three ground operations which would result in the layoff of some 2,600 workers.
The Office of the President (OP), in an order signed by Executive Secretary Paquito “Jojo” N. Ochoa last Tuesday, formally assumed jurisdiction over the labor row and directed PAL management and its labor union Philippine Airlines Employees’ Association (PALEA) to refrain from doing any action that will worsen the situation.

“PALEA and PAL management are directed to desist from undertaking any action that will aggravate the situation pending the resolution of this petition,” the order read.

The order also stated that the June 15 and Oct. 29 ruling of the Department of Labor and Employment (DoLE) approving the implementation of the outsourcing of PAL’s flight catering, airport services and call center reservations operations will be deferred pending a review of the case.

“We hold in abeyance the implementation of the subject Order to give way to the overriding interest of the parties,” the order read.

The PAL management said it will abide by Malacañang’s assumption order and welcomed the decision which it said has averted a strike by members of PALEA.

“PAL would like to reiterate that it has not in any way, shape or form implemented the spin-off of its three non-core businesses, as it is awaiting the result of the Palace review of the labor dispute,” PAL President Jaime J. Bautista said in a statement yesterday. “The strike ban will assuage the anxiety of our passengers in the midst of PALEA’s repeated strike threats,” he added.

PALEA President Gerardo F. Rivera also welcomed Malacañang’s move and said they will respect the status quo order.

“As we’ve said before, we will abide with whatever order comes from Malacañang. We will not insinuate a plan to hold a strike. We will not do that. We will respect the Palace’s order,” he said in a phone interview.

With the assumption of jurisdiction, the OP has consolidated PALEA’s petition for presidential intervention dated Nov. 12, to suspend the effect of the mass termination filed with DoLE last Nov. 8 and the notice of strike also filed with DoLE last Nov. 5.

President Benigno S. C. Aquino III last week said he has tasked Mr. Ochoa to talk to both management and PALEA to resolve the issue.

The president has been intervening in the labor case as the issues would have an impact on the riding public.

In an order last Nov. 18, the Palace asked DoLE to elevate complete records of the cases to the OP which received the documents last Dec. 6.

“The President of the Philippine shall not be precluded from determining the industries that in his opinion are indispensable to the national interest and from intervening at any time and assuming jurisdiction over any such labor dispute in order to settle or terminate the same,” the order read, citing Article 263 paragraph 3 of Presidential Decree 442 which instituted the Labor Code. -- Ana Mae G. Roa

Union members say PAL strike vote illegal

Malaya
December 15, 2010

After the secretary of labor issued an order telling the members of the Philippine Airlines Employees Association that they are entitled to P2.5 billion in retirement benefits, the leaders of the workers appealed to Malacanang.

They claimed they are being illegally separated from the service.

Union members are back to the President. This time, Egardo C. Oredina, former PALEA president; Romeo R. Sauler, former vice president; and Roberto Ramos, Lina Marcelo and Alfredo Espiritu are requesting President Aquino to authenticate the strike vote taken on December 7.

The complainants told the President they are "dues paying members of PALEA and employees of Philippine Airlines."

The five union members (there are six, including Martin Samson who failed to sign the request because he was allegedly sick) said "it appears that the decision to hold the strike vote, if ever one was made, was exercised only by the current PALEA president (Gerry Rivera). Thus, no genuine decision was made by the current board, the policy making body of the union, on the vote."
"(Moreover), no DOLE (Department of Labor and Employment) observers were present to supervise the conduct of the strike vote. The current PALEA president notified the DOLE only on Monday, Dec. 6, a day before the strike vote was conducted," they said.

Nevertheless, the complainants told the President, "This motion is not intended to stop the conduct of any strike that the union may hold, however, that it is based on just and reasonable grounds and conformably to the legal requirements."

The complainants explained that the request or motion is intended to protect and safeguard the welfare of "our members to obviate the strong likelihood that they would unknowingly participate in the conduct of an illegal strike which would result in the forfeiture of their benefits and loss of their employment."

The complainants further told the Chief Executive that "the results of the strike vote will certainly impact on the continued employment of PAL employees as well as their families welfare."
"Considering the exaggerated claims of the current PALEA president Gerardo Rivera that 84 per cent of PAL employees have voted in favor of holding the strike and that he himself has declared that the holding of the strike will be on December 16, it is urgently necessary that the strike vote be authenticated as this is a key requirement prior to the holding of a strike," they said.

In their motion or request submitted to President Aquino on Dec. 13, they said: "A strike vote is a major activity that requires the approval of the board of directors. Hence, it is doubly important that in the ballot there should appear a reference to the board resolution authorizing the conduct of a strike vote."

"Unfortunately," they told President Aquino, "this does not appear in the ballot for the PALEA vote on Nov. 7, 2010"

On that voting, Rivera said the majority of the union members approved to call a strike.
However, they did not make good the threat.

Rivera called for another vote on Dec. 5 but without the approval of the board of directors, according to the complaint.

The five union members doubt that, apart from the lack of board decision to take a strike vote, the general membership is in full agreement with the threat to strike.

Rivera announced after the strike vote on Dec. 5 that 85 per cent of union members approved the strike which is supposed to be called tomorrow, Dec. l6.

They noted that the strike vote was taken after filing an appeal with President Aquino questioning the order of the secretary of labor.

In that order, Labor Secretary Rosalinda Baldoz ruled that PAL’s decision to outsource In-Flight Catering, Airport Services, and Call Center Reservations Operations is "lawful and reasonable."
Up to today, the complainants said, "Gerardo Rivera has not yet released the official results of the strike vote or (sic) submitted a copy thereof to the NCMB, DOLE or to the President."

This suggests that Rivera may not have told the truth when he said higher than 85 percent of the union members voted to call a strike.

The PAL dispute has taken many twists. Management stands pat on its position that it is absolutely necessary to spin-off the three non-core businesses as the only way to survive.

Management and many union members are confused over the alleged strike vote when the order of the secretary of labor is still on appeal with President Aquino.

Meanwhile, close to 400 union members are said to have approached management to say they are accepting the benefit package averaging P1 million for each employee to be retired.

They asked for advances and were given P50,000 each.

When this event reached the ears of Rivera, he charged management with individual bargaining which he said, amounts to union busting.

The alleged violation of the collective bargaining agreement and the labor laws (individual bargaining) forced Rivera to call for the strike vote now being questioned by five union members.

Some union members doubt whether the strike – if it is called at all – may be in accordance with law.
They explained that the secretary of labor has assumed jurisdiction over the dispute and has in fact settled it by issuing an order asking PAL to pay about 2,600 union members who will be retired but will receive total benefits of P2.5 billion.

Aquino stops PAL row

By GENALYN D. KABILING
Manila Bulletin
December 15, 2010, 8:30pm

MANILA, Philippines — President Aquino has assumed jurisdiction over the labor conflict in the Philippine Airlines (PAL), ordering its management to suspend a planned retrenchment of its ground crew.

Executive Secretary Paquito Ochoa Jr. said that the President decided to intervene in the PAL labor row since it involves “industries indispensable to national interest.”

Ordered “hold in abeyance” by the President were the implementation of two decisions of the Department of Labor and Employment (DoLE) that allowed PAL management to outsource some of its services to third party service providers as well as lay off some 2,600 employees.

In a three-page order signed “by authority of the President,” Ochoa said it was but “fair and just to afford PAL Employees Association (PALEA) ample opportunity to exhaust legal remedies available under the law.”

“The petition to suspend the effect of mass termination and the notice of strike are hereby consolidated pending determination of the merits," Ochoa said. “The orders dated 15 June 2010 and 29 October 2010 of the Secretary of Labor in the above-entitled case are STAYED.”

Ochoa said PAL management and PALEA have been ordered "to desist from undertaking any action that will aggravate the situation pending the resolution of this petition.”

Presidential Spokesman Edwin Lacierda said the President’s latest intervention in the PAL row meant there will be no layoffs or strikes for the meantime.

“Essentially, it stays two orders of the Secretary of Labor. What it plainly means is that on the part of labor, they will not engage in strikes. On the part of management, there will be no lockout. Everything is on hold,” Lacierda told reporters in the Palace.

“By assuming jurisdiction, the government will intervene and discuss it with both parties. If and when there is no agreement, then the Office of the President will render decision on the petition of PALEA,” he added.

The President earlier assigned Ochoa to review the decisions made by DoLE on the PAL labor case after PALEA sought presidential intervention in the conflict.

DoT keeps distance on PAL row

Manila Standard Today
December 15, 2010
by Eileen A. Mencias

SECRETARY Alberto Lim said on Tuesday the Tourism department is keeping its distance from the problems besetting Philippine Airlines.

“There’s nothing we can really do,” Lim said regarding the threat by PAL employees to stage a strike which could hurt the operations of the country’s biggest airline.

“It’s beyond our control...it’s really the private sector that will be affected by it, and (the labor case) is with the (departments of Labor and Transportation),” Lim added.

But the newly-confirmed tourism czar said he was still hopeful that the threatened strike does not push through.

“I hope they do not strike. I hope they come to terms,” he said.

Lim said PAL is already doing its own contingency planning, getting other caterers and linking up with other airlines to get their passengers booked in case the strike pushes through.

“PAL has to take care of its passengers. (But) it’s going to cost them a lot,” Lim said.
PAL earlier said it would implement a restructuring and spin-off program next year after more than 500 PAL union members signified their intention to accept management’s offer of separation pay, which would amount to nearly P1 million for each affected worker.

PAL president Jaime Bautista said the implementation of the mass layoff was based on DoLE’s decision affirming PAL’s prerogative to restructure.

In a statement, PAL said it was doing all it can to prevent any flight disruptions.

“In the unlikely event event of a work stoppage, PAL has the following contingency measures. Engageprofessional service providers, including inflight catering companies, to augment workers not joining the strike; deploy all available manpower and endorse affected passengers to our sister-airline AirPhilexpress, as well as 134 international airline partners,” PAL said.

Aquino assumes jurisdiction over PAL row

By Lira Dalangin-Fernandez INQUIRER.net First Posted 15:34:00 12/15/2010

President Benigno Aquino III has assumed jurisdiction over the labor dispute at the Philippine Airlines, which temporarily suspended the implementation of the layoff plan by management that had been approved by the Department of Labor and Employment (DoLE).

MANILA, Philippines – President Benigno Aquino III has assumed jurisdiction over the labor dispute at the Philippine Airlines, which temporarily suspended the implementation of the layoff plan by management that had been approved by the Department of Labor and Employment (DoLE).

Lawyer Marlon Manuel, one of the legal counsels of the PAL Employees Union (PALEA), said they received copy of the order from the Office of the President imposing a “stay order” on the two decisions by DoLE to retrench some 2,600 ground employees of the flag carrier.

At the same time, Manuel said the President directed the management and PALEA to “desist from undertaking any action that will aggravate
the situation pending the resolution of this petition.”

In effect, while the order prohibits PAL management from laying off
employees, it also restrains the union members from proceeding with
their planned strike.

PALEA members voted last week to hold a strike amid the ongoing
retrenchment but have yet to submit the results of the voting to
DoLE.

“In essence, it’s a temporary victory for the workers because the decision of the Secretary of Labor giving the go-signal to retrench the workers will not be implemented for now,” Manuel told INQUIRER.net in an interview.

INQUIRER.net tried to get a reaction from PAL management through its spokesperson Cielo Villaluna but she has not responded as of posting time.

The stay order will cover the decisions of the DoLE dated Oct. 29, 2010 and June 15, 2010.
The June 15 order, issued by then acting Labor Secretary Romeo Lagman, said that PAL’s plan to outsource its three units to third party service providers was “based on lawful ground and all in a valid
exercise of managerial prerogative.”

The October 29 order, gives the go-signal for the layoff of the 2,600 employees, who will be entitled to additional gratuity of P50,000 per employee and 125 percent separation pay instead of 100 percent. Other entitlements include allowing vacation leave and sick leave balances to be convertible to cash, their absorption to the respective service providers for one year, among others.

“We find the outsourcing of services and closure of the Inflight Catering, Airport Services, and Call Center Reservation Operations in
Philippine Airlines to be a just, reasonable, humane, and lawful
exercise of its management prerogative to reorganize the corporate
structure for purposes of viability of its operations, subject to entitlement,” according to the order.
Last month PALEA submitted a petition to the Office of the President
asking it to review both decisions, following the breakdown in conciliation talks with the management.
Manuel said the President’s stay order on the two DoLE decisions would take effect “pending determination of the merits of the two decisions.”

“We hold in abeyance the implementation of subject Order to give way
to the overriding interests of the parties,” Manuel said, quoting a portion of the order.
Manuel said it was within the powers of the President to assume
jurisdiction over the labor dispute.

“Under Article 263 of the Labor Code, it’s part of the extraordinary powers of the President, that he can assume jurisdiction over cases like this,” he added.

Manuel said the order did not give a time frame for the stay order, to
give enough time for the parties to arrive at an agreement. Meetings of the two parties will also be mediated by the Office the President, he said.

‘Back-channel’ talks on PAL strike

Monday, 13 December 2010 00:00
The Manila Times

The Department of Transportation and Communications (DOTC) over the weekend announced that they are now conducting back-channel efforts to avoid the looming strike of employees of flag-carrier Philippine Airlines. DOTC spokesman Dante Velasco revealed in an interview aired over dzBB radio that they are conducting the efforts to stop the strike especially this holiday season for the sake of the passengers.

“We are continuing our back-channel efforts. We remain hopeful no strike will happen,” he said.

Velasco, however, declined to give details on the back-channel efforts, but noted that Malacañang already offered to broker mediation talks on the matter.

He added that government is confident PAL can execute its contingency measures if the strike pushes through.

“PAL has said it is ready to undertake contingency measures,” Velasco said.

Earlier, the PAL Employees Association (Palea) disclosed that 86 percent of its members who took part in a strike vote early last week were in favor of a strike to protest what the union called management’s unfair labor practices.

“The 86 percent vote is overwhelming given that we had just 24 hours to inform members of the holding of the strike ballot,” Palea President Gerry Rivera said.

He added that the union’s membership of 2,600 participated in the strike vote.

But Rivera appealed to the public for understanding.

“We understand that a strike at Philippine Airlines may inconvenience the public. But we also believe that the vast majority of the public are workers and their families who will benefit from Palea’s fight for job security and labor rights,” he added.

While PAL management reassured its passengers that PAL flights remain normal, it criticized Palea for raising fears about the strike.

“Pronouncements made by the Palea that they will stage a strike during the holidays reveal their intention to sow panic and anxiety to thousands of PAL passengers who have firmed up travel plans to spend Christmas with their loved ones,” the airlines said in a press release on its website.

No effect on flights
PAL’s Friday press release also said that employees who participated in the Palea strike vote are “ground workers mostly assigned at the ground-handling, catering and call center offices.”

“While their jobs are important, these workers play support to flight operations. They are not directly engaged in flying or maintaining the aircraft. The pilots, cabin crew and mechanics/maintenance workers are not part of the planned work stoppage,” PAL added.

The airline said that its labor case with Palea is being reviewed by Malacañang.

PAL added that they hope the union will heed Executive Secretary Paquito Ochoa Jr.’s appeal to exercise restraint by deferring any mass action at this time, and allow the Palace to decide on the case.

PAL spokesman Cielo Villaluna voiced high hopes for mediation talks to be brokered by Malacañang on the issue.

She said they are buoyed by the openness of Palea take part in the mediation talks.

“Kami ay naniniwala na magkakaroon ng kalutasan [We believe that there will be a solution]. We are hoping and praying this conciliation meeting brokered by Malacañang will commence anytime soon,” she said in an interview on dwIZ radio.

Villaluna added that despite the Palea’s recent strike vote, PAL employees had been “professional enough” to continue reporting for work.
FRANCIS EARL A. CUETO

Majority of PAL union members vote to strike

Saturday, 11 December 2010 00:00
The Manila Times
By Darwin G. Amojelar, Reporter

THE Philippine Airlines Employees’ Association (Palea) on Friday said that “substantial majority” of its members voted for a strike against the planned spin-off of Philippine Airlines’ three non-core businesses, as the airline management readied contingency measures to prevent any flight disruptions.
In a statement, Palea said that some 86 percent of the total votes cast were in favor of a strike and a “substantial majority” of its total membership of 2,600 participated in the strike vote. “The 86-percent vote is overwhelmingly given the fact that we had just 24 hours to inform members of the holding of the strike ballot,” Gerry Rivera, Palea president, said.

He added that the successful strike vote conducted among its members brings the union closer to holding an actual strike.
According to the Labor Code, before any legal strike can proceed, a notice of strike must be filed and then a strike vote conducted in which a simple majority of members must agree.

Rivera added that all that remains now is for Palea to file the results of the strike vote at the National Conciliation and Mediation
Board (NCMB), which has jurisdiction of the dispute, and then wait for the lapse of the mandated seven-day notification or cooling off period. The NCMB is an attached agency of the Department of Labor and Employment.

“We understand that a strike at PAL may inconvenience the public. But we also believe that the vast majority of the public are workers and their families who will benefit from Palea’s fight for job security and labor rights,” Rivera said.

The strike vote was announced to Palea members last Monday just after a notice was filed at the NCMB.
The actual strike vote was conducted the whole day of December 7.

Palea is protesting PAL’s plan to spin off part of its operations, a move that will result in letting go some 3,500 of its 7,500 workforce.

In a briefing, Jaime Bautista, PAL president and chief operating officer, assured its passengers that all PAL flights are normal and continue to operate according to published schedules.

“We have in place a contingency program, if it in case the strike happened,” he said.

Bautista added that PAL engaged professional service providers, including inflight catering companies, to augment workers not joining the strike and deploy all available manpower, including supervisors and managers who are more than capable of manning critical frontline posts.

He said that PAL will also endorse affected passengers to its sister airline, AirPhilexpress, as well as to 134 international airline partners.

Bautista said that employees who participated in the recent Palea strike vote are ground workers mostly assigned at the ground-handling, catering and call center offices.

“While their jobs are important, these workers play support to flight operations. They are not directly engaged in flying or maintaining the aircraft. The pilots, cabin crew and mechanics/maintenance workers of Lufthansa Technik Philippines are not part of the planned work stoppage,” he added.

The PAL-Palea labor dispute is being reviewed by Malacañang.

Bautista said that legal avenues can still be exhausted in resolving the management-labor differences.

“The notice of strike that they filed is already decided. If they will strike next week, it’s illegal,” he added.
Palea said that their planned strike is not illegal since there is no labor dispute pending.

“The strike vote stems from the labor dispute docketed as NCMB-NCR NS-11-128-10. That dispute has not been resolved nor been assumed,” Rivera said.

He reiterated the clarification that the issue pending at the Office of the President is PAL’s outsourcing plan which has been affirmed by Labor Secretary Rosalinda Baldoz, while the strike vote arose from a separate though related complaint of individual bargaining by PAL management that constitutes unfair labor practice and union busting.

Strikers will be fired, PAL warns

Manila Standard Today
December 11, 2010
by Jeremiah F. de Guzman

PHILIPPINE Airlines will fire and cancel the benefits of all ground employees who will strike because that action would be illegal, company president Jaime Bautista said Friday.

The Labor Department had already taken up and decided on the issue raised by the workers against the airline, Bautista said.

“We don’t think there will be a strike because if they do so, it is an illegal strike,” he said.
“They can be terminated and their benefits will be lost.

But the Philippine Airlines Employees’ Association said the planned strike was over a separate complaint of union busting by the management, and that 75 percent of the votes cast by the union’s 2,700 members Wednesday showed that 86 percent favored a strike.

“That dispute has not been resolved or assumed,” union president Gerardo Rivera said.
“There is nothing more to negotiate that has already been decided by the Labor Department. The decision is very costly for us and very good for the union.”

Bautista said the carrier no longer was open to negotiations with the ground workers. The airline was ready for any strike.

“We have already made arrangements with several service providers to help us if a strike takes place,” he said.

“We don’t really need these employees because we can get them from the service providers.”
Meanwhile, Bautista said Philippine Airlines and the Board of Airline Regulators comprising foreign airlines will pay airport Customs staff P250,000 each in overtime covering five months.
PAL will pay P125,000 and the foreign airlines the balance, he said.

Customs Commissioner Angelito Alvarez said a check was being prepared, and that the employees could be paid by Monday.

“We got a breakthrough in our discussions with PAL,” Alvarez said.

“There has been a positive development. PAL has already prepared the check that will be released today or Monday morning at the latest.”

The airport staff are owed 11 months more, and that amount will be discussed to determine exactly how much is due them. With Eric B. Apolonio

DZIQ: PAL preparing for another crew strike

INQUIRER.net
First Posted 10:53:00 12/10/2010

MANILA, Philippines -- The management of the Philippines Air Lines (PAL) has taken all preparations in the event of another strike by the crew, PAL spokesperson Cielo Villaluna said in an interview on dzIQ Radyo Inquirer's "Tapatan" program Friday morning.

"PAL is prepared for the worst-case scenario," Villaluna told Jay Sonza, anchor of Tapatan.
Villaluna made the assurances after a majority of the PALEA membership voted to strike to protest alleged union busting and unfair labor practices.

She said that PAL would seek the help of Air Phil, a sister company, to service passengers who may be affected in case the strike would push through.

Villaluna added that talks were also underway between PAL and 134 inter-airline partners as well as several food catering companies to supplement work that would be abandoned by the striking airline crew and employees.

Listen to Villaluna's full interview on Radyo Inquirer, DZIQ 990 khz AM.
Fe Zamora, Radyo Inquirer

PAL flight bookings up despite labor problems

Friday, 10 December 2010 00:00
The Manila Times

PHILIPPINE Airlines (PAL) on Thursday said its flight bookings rose by a tenth for the coming holidays despite the labor woes hounding the flag carrier.

In a statement, the Lucio Tan-owned airline said the higher bookings this month is an indication of a strong passenger confidence in PAL’s continued operations.

Cielo Villaluna, PAL spokesperson, said its sales department noted a significant uptick in confirmed bookings especially after
Malacañang, through Executive Secretary Paquito Ochoa Jr., made a public appeal to the PAL Employees Association (Palea) to defer any work stoppage as the Palace exhausts all means to resolve the labor tiff.

PAL workers’ union earlier held a strike vote, but the airline management questioned its legal basis.

PALEA is protesting PAL’s plan to spin off part of its operations, a move that will result in letting go some 3,500 of its 7,500 workforce.

Villaluna said close to 90 percent of PAL’s booked passengers have been issued confirmed tickets for Manila-inbound flights, indicative of the travelers’ trust in the airline’s ability to fly them to their respective destinations.

“Many of our inbound passengers finalized their travel plans after Malacañang’s appeal to Palea. Most of them are hopeful that through Malacañang’s intercession and Palea’s cooperation—‘in the spirit of Christmas’—they would be able to spend the holidays with their loved ones,” he said.

Based on sales data, almost all flights coming from the United States are full —registering the highest number of forward bookings—followed by those coming from Australia.

PAL’s traditionally packed flights every December are those coming from North America, Australia, Hong Kong and Singapore. Between Christmas and New Year, its airplanes are filled with vacationers bound for Kalibo, Hong Kong, Bangkok, Singapore and China.

Last year, PAL carried 9.2 million passengers or an average of 25,630 passengers per day. This number goes up by as much as 30 percent with the Christmas peak season as thousands of tourists, balikbayans and overseas Filipino workers flock home to spend Christmas with their families.

“While the strike vote threatens to spoil the holiday travel plans of thousands of Filipinos, PAL is exerting all efforts to ensure continued safe and reliable service,” Villaluna said.

She said the strike vote did not cause any flight cancellations, adding that no significant withdrawal of passenger bookings have been noted.

“We would like [to] reiterate our advise [to] our passengers to please come to the airport early—at least two hours before the intended departure time—to avoid long queues and other inconveniences that usually occur during this time of the year,” Villaluna said.

Darwin G. Amojelar

PAL union members vote to strike

INQUIRER.net
First Posted 17:30:00 12/10/2010

MANILA, Philippines—The Philippine Airline Employees’ Association (Palea) released the final results of the strike vote Friday afternoon after the union’s commission on elections (comelec) finished canvassing the ballots. Some 86 percent of the total votes cast were in favor of a strike and a substantial majority of the total Palea membership of 2,600 participated in the strike vote, according to a press release sent by Palea to INQUIRER.net.

“Today is International Human Rights Day and the resounding vote for a strike is a democratic expression of PAL employees’ resolve to fight for their job security. Labor rights are after all human rights. The 86-percent vote is overwhelmingly given the fact that we had just 24 hours to inform members of the holding of the strike ballot,” stated Gerry Rivera, Palea president and Partido ng Manggagawa vice chairman.

Rivera explained that the successful strike vote conducted among its members brought the union closer to holding an actual strike. According to the Labor Code, any legal strike can proceed only after a notice of strike is filed and a strike vote is conducted and that results in a simple majority of members agreeing.

He added that all that remains now is for Palea to file the results of the strike vote at the National Conciliation and Mediation Board (NCMB), which has jurisdiction of the dispute, and then wait for the lapse of the mandated seven-day notification or cooling off period.

“We understand that a strike at Philippine Airlines (PAL) may inconvenience the public. But we also believe that the vast majority of the public are workers and their families who will benefit from Palea’s fight for job security and labor rights,” Rivera insisted.

The strike vote was announced to Palea members last Monday just after a notice was filed at the NCMB. The actual strike vote was conducted the whole day of December 7. The union’s comelec then waited for all the ballot boxes to arrive from the provincial airports before it tabulated the results in Palea’s office in Paranaque Friday.

Meanwhile, Palea answered the arguments of the PAL management that the strike vote is illegal since there is no labor dispute pending. “The strike vote stems from the labor dispute docketed as NCMB-NCR NS-11-128-10. That dispute has not been resolved or assumed,” Rivera asserted.
He again clarified that the issue pending at the Office of the President was PAL’s outsourcing plan, which has been affirmed by Labor Secretary Rosalinda Baldoz, while the strike vote arose from a separate though related complaint of individual bargaining by PAL management, which “constitutes unfair labor practice and union busting.”

Further Palea welcomed the consolidated security of tenure bill that was approved by the House labor committee at a hearing last Wednesday. “There will be many more Paleas if capitalists are allowed to use the loopholes of the law on subcontracting to bust unions, cheapen wages, worsen working conditions and demolish workers’ rights,” Rivera commented.

PAL a Grinch to some, Santa to others

By Marlon Ramos
Philippine Daily Inquirer
First Posted 05:46:00 12/10/2010

MANILA, Philippines—The country’s flag carrier may be the Grinch to most of its employees, but to some 400 Bureau of Customs (BOC) personnel, Philippine Airlines is Santa Claus.

A green, hairy creature, the Grinch tries to spoil the holiday spirit in Dr. Seuss’ book, “How the Grinch Stole Christmas.”

Beginning Friday, Customs Commissioner Lito Alvarez said, 412 employees of the BOC assigned to the Ninoy Aquino International Airport (NAIA) and other international airports may collect part of their unpaid overtime pay for the past 16 months.

In a news briefing at the Department of Justice Thursday, Alvarez said PAL president Jaime Bautista had assured him the airline would release over P50 million to cover a portion of the BOC employees’ long overdue overtime pay.

Ironically, PAL’s act of goodwill comes at a time its close to 3,000 employees are set to strike over the impending loss of their jobs due to severe financial losses by the airline.

Alvarez said each customs employee will receive P125,000 in payment of five months’ worth of overtime wages.

PAL says holiday bookings up by 10% as ground workers prepare to strike

Posted on 09:23 PM, December 09, 2010

FLAG CARRIER Philippine Airlines (PAL) yesterday reported a 10% increase in flight bookings during the holidays, as ground workers threatened to go on strike amid the Lucio C. Tan-led carrier’s plans to outsource three units and lay off workers.
In a statement yesterday, the airline said the increase in confirmed bookings for the month of December indicated “strong passenger confidence.”

“Close to 90% of PAL’s booked passengers have been issued confirmed tickets for Manila-inbound flights, indicative of the travelers’ trust in PAL’s ability to fly them to their respective destinations,” PAL spokeswoman Cielo C. Villaluna said in the statement.

“Based on sales data, almost all flights coming from the United States are full, registering the highest number of forward bookings, followed by those coming from Australia,” she added.

PAL said flights from North America, Australia, Hong Kong, and Singapore were “packed” everyday.

“Between Christmas and New Year, PAL’s airplanes are filled with vacationers bound for Kalibo, Hong Kong, Bangkok, Singapore and China,” Ms. Villaluna said.

Last year, PAL carried 9.2 million passengers, or an average of 25,630 passengers per day.

Meanwhile, the Philippine Airlines Employees’ Association (PALEA) said it would file a notice to strike after 86.13% of union members voted “yes” to the move.

“I’m very happy with this result because this shows that the members are aware of the issues,” said Gerardo F. Rivera, PALEA president.

“We have hurdled one process. Now, we have to talk it over with the officers of the union, and submit the result to the Labor department and the notice to conduct strike. Then, we can proceed to observing the seven-day cooling period or strike ban,” he said.

The Lucio C. Tan-led airline is questioning the move, saying PALEA’s complaints have been consolidated into one and that the union had agreed to a status quo.

The notice involves a new complaint in which PALEA claims the airline has been negotiating with workers individually over early retirement packages.

The previous case, which was taken over by the Labor secretary in April to prevent a strike, involves PAL’s decision to outsource in-flight catering, airport services, and call center reservations, which would result in the layoff of 2,600 workers.

Also yesterday, the Flight Attendants’ and Stewards’ Association of the Philippines (FASAP) urged the Labor department “to end the discrimination against its 1,600-strong members.”

The union of PAL cabin crew said in a letter to Labor Secretary Rosalinda D. Baldoz dated Dec. 9 “that discrimination in PAL violates the rights of the flight attendants, especially [of] women members.”

“If for PAL, retiring the flight attendants at 40, 45, and 55 years is but a business policy, to maintain young and fresh-looking women as frontline flight attendants, for our members, this policy has a more personal, real and profoundly painful effect,” the group said.

FASAP President Robert Anduiza said the union’s case, which stemmed from a collapse in collective bargaining negotiations, is still pending before the Labor department.

“We had filed a Notice of Strike last Sept. 9 over charges of Age and Gender Discrimination in PAL. However, the flight attendants have been prevented from staging a strike after the Labor department assumed jurisdiction of the labor dispute last Oct. 6,” he said.

“The case has been submitted for the DoLE’s resolution,” he added.

PAL posted modest gains of $28.2 million for the second quarter of its fiscal year covering July to September. In a filing with the Securities and Exchange Commission last month, PAL reported revenues of $399.5 million for the period, up by 33%.

Total expenses for the same period amounted to $371.2 million, a 7% increase.

In its last fiscal year that ended March, PAL reported a net comprehensive loss of $14.4 million. -- A. M. P. Dagcutan

PAL welcomes Malacañang’s Palea appeal

Thursday, 09 December 2010 00:00
The Manila Times

PHILIPPINE Airlines on Wednesday welcomed Malacañang’s appeal to the PAL Employees Association (Palea) to “exercise restraint in their planned strike” for the sake of their patrons.
In a statement, PAL spokesman Cielo Villaluna thanked President Benigno Aquino 3rd and Executive Secretary Paquito Ochoa Jr. for responding to what she called a “potential labor crisis.”

“We all know that a work stoppage would not only hurt the company, related industries and the country’s economy, but would also wreak havoc on the travel plans of thousands of local and foreign travelers,” she said.

The spokesman emphasized the airline company’s belief that the Office of the President has primary and official jurisdiction over the labor case and indicated hopes the association holds a similar view.

“PAL defers and respects the good judgment of the President. We hope [that] Palea will do the same,” Villaluna said.

Maintaining that Palea’s collection of strike votes on Tuesday was not legally justified, she added that its “complaints about individual bargaining should have been raised before the Office of the President before they conducted a strike vote.”

Villaluna said that although PAL believes that Palea’s actions have no legal merit, “we leave it to the President to [decide] on the legality of the association’s vote-gathering exercise.”