Thursday, September 9, 2010

PAL flight attendants file notice of strike

By Paolo Montecillo, Philip Tubeza
Agence France-Presse, Philippine Daily Inquirer First Posted 12:58:00 09/09/2010

MANILA, Philippines—(UPDATE 2) The Philippine Airlines’ (PAL) 1,600 flight attendants on Thursday formally advised the government they would go on strike at the end of October, saying the move would ground all flights by the loss-making flag carrier.

The cabin crew union said it had filed a strike notice with the labor department, which by law has 30 days to try to find a compromise between the airline and employees to prevent a shutdown.
"Once we go on strike, no flight will take off," said Bob Anduiza, president of the Flight Attendants' and Stewards' Association of the Philippines (FASAP).

"This will ground PAL's entire operations," he told a news conference.
In a statement issued Thursday, PAL assured the riding public of continued and unhampered service despite a notice of strike filed by its cabin crew union.

"PAL's operations remain normal and all flights are operating as scheduled. There is no immediate work stoppage," PAL spokesperson Cielo Villaluna stressed.

She explained that the notice of strike filed by FASAP commences a legal process by which the two parties, with guidance from the labor department, would find ways of striking a balance between what the union wants and what management can afford and is prepared to give.
At a briefing on Thursday, Anduiza said this union decision has been reached due to management’s refusal to budge from its policy of retiring employees as young as 40 years old.

PAL’s discriminatory preference of keeping flight attendants young was rooted in an outdated mentality that a plane’s crew was mere eye-candy, rather than trained safety professionals, he said.
The actual "series of strikes" will happen next month or early November, according to Anduiza.
He said his group has not finalized the actual date of the strike but would make an announcement two weeks before the actual work stoppage to forewarn the riding public.

He warned that PAL could lose P40 million up to P60 million a day from the strike.
Anduiza has accused PAL of intentionally not raising flight attendants’ salaries for the last three years—a tactic, he said, meant to pressure the union into signing another collective bargaining agreement that includes a 40-year-old retirement age.

“We have exhausted the negotiating process, and after countless mediation hearings, PAL remains unmoved and refuses to negotiate in good faith. All our pleas fell on deaf ears,” Anduiza said in a statement.

The cabin staff are seeking a raise that would put their pay on par with that offered by foreign carriers. They are also demanding paid maternity leave and an end to a company policy that forces female attendants to retire at the age of 40.

Villaluna said the union's plan to strike is ill-timed as it would scare away tourists and cause further damage to the flag carrier’s fragile finances.

“We are saddened by the union’s decision, but we recognize their right to file a notice of strike,” Villaluna said. She added the union’s move is untimely in the wake of thousands of Hong Kong and Chinese tourists canceling their forward bookings in the aftermath of the Rizal Park hostage tragedy. “A strike threat doesn’t help in efforts to lure back tourists to the country.”

She added that management is willing to sit down again with FASAP leaders to discuss and settle any pending issues in the 2007-2010 collective bargaining agreement.

Villaluna said FASAP’s claims that they are overworked and underpaid are without factual basis. “PAL's cabin attendants receive an average gross monthly salary ranging from P30,000 to 80,000. They also enjoy enviable rest periods.”

She also refuted accusations of age and gender discrimination. “The early retirement age is part of the negotiated CBA FASAP leaders signed on two separate dates. They complain of alleged inequity of early retirement provisions when in fact the older batch of FASAP members, including the union leaders themselves, have been receiving and enjoying financial benefits in exchange for the younger retirement age of their colleagues,” Villaluna stressed.

On the claim that PAL discourages pregnancy among cabin attendants, Villaluna said there were at least 65 cabin attendants who went on maternity leave last year. “All of them received maternity benefits in accordance with the Labor Code and the CBA. PAL even advanced P30,000 in SSS benefits before they gave birth,” she said.

There was no immediate comment from the labor department.

But earlier Labor Secretary Rosalinda Baldoz has said that in case of a strike, she will “assume jurisdiction” over the PAL labor dispute, which will force the airline’s management and the labor union to sit down for another round of negotiations.

The planned strike is the latest in a string of labor problems to hit the national flag-carrier. Last month, 25 pilots and first officers of PAL's short-haul aircraft suddenly quit for higher-paying jobs abroad, forcing the abrupt cancellation of several flights.

Tuesday, September 7, 2010

PAL reduces HK flights; Cebu Pacific slashes rates

by Eric B. Apolonio and Jeremiah F. de Guzman
September 7, 2010
ManilaStandardToday

PHILIPPINE Airlines has reduced its flight frequencies to and from Hong Kong, while budget carrier Cebu Pacific is slashing rates in the aftermath of the Aug. 23 hostage-taking in Manila in which eight Chinese tourists were killed.

“Due to the lean season and in response to lower traffic after the tragic Quirino Grandstand incident, PAL has reduced its frequencies to four times from five times daily, but only for the period of Sept. 2 to Nov. 24, 2010,” spokeswoman Cielo Villaluna said.

“All affected passengers have been rebooked to the merged flights.”

Villaluna said the airline will waive the penalties for the canceled Hong Kong, China and Philippine-issued tickets until Sept. 15.

The carrier has experienced 1,100 cancellations covering flights from Hong Kong and parts of China as of Aug. 27, four days after a dismissed policeman held a bus full of Hong Kong tourists hostage and then shot and killed eight of them before he himself was killed in a botched rescue attempt.

China and Hong Kong condemned the police’s incompetence and asked Manila to explain. Hong Kong also canceled all package tours to the Philippines and told its nationals to avoid the country.

Tourism Secretary Alberto Lim said Monday Hong Kong’s tourism industry could suffer bigger losses than the Philippines as a result of the fallout from the hostage-taking incident.

“Many Hong Kong tourists canceled their bookings due to the crisis and due to the travel advisory,” Lim said.

“We understand that and there is not much we can do about it, but there are Filipinos who also put off their trips to Hong Kong because they feared a possible backlash.”

More than 1,000 tour groups from Hong Kong and China had canceled their trips to the Philippines, resulting in a loss of $200,000, the China Daily said Monday quoting Tourism Undersecretary Simeon Marfori.

Meanwhile, budget carrier Cebu Pacific Air has cut its fares to Hong Kong and Macau to boost travel demand amid the increasing cancellations brought on by the Hong Kong government’s travel advisory against the Philippines.

Cebu Pacific has come up with a seat sale to Hong Kong and Macau after reporting over 1,000 cancellations from these routes and other destinations in China as of last week. The seat sale is available starting today, Tuesday, for travel from Nov. 1 to Dec. 15, 2010.

Passengers could avail themselves of the P1,499-Go Lite seats from Manila or Clark to Hong Kong, and from Clark to Macau. P1,999-Go Lite seats were also available for the Cebu-Hong Kong and Manila-Macau flights, the airline said.

Solons buck flag carrier employees’ strike plans

INQUIRER.net
First Posted 12:35:00 09/07/2010

MANILA, Philippines—Key members of the House Committee on Tourism have appealed to protesting Philippine Airlines (PAL) employees to call off their planned strike, warning that the move could spell the collapse of the country’s tourism industry.

In a news release, Representatives Florencio T. Miraflores (LP, Aklan) and Alfredo Benitez (NPC, Negros Occidental) said a work stoppage in the country’s flag carrier is the last thing that the tourism industry needs as it smarts from the adverse impact of the tragic Quirino grandstand hostage incident that resulted in the killing of eight Hong Kong tourists.

The two solons called on PAL management and the protesting workers not to abandon the negotiating table, saying that resorting to drastic measures such as staging a strike is "counter productive."
Miraflores, committee chairman, said he expects government to intervene should the labor issue turn for the worse and adversely affect the country’s economy and international reputation.

“At this point, a PAL strike will only exacerbate the situation and scare more foreign tourists. Sana huwag muna dagdagan ang problema (Hopefully they won’t add to the problem). It’s hurting us already,” said Miraflores.

The Aklan lawmaker confirmed reports that resort and hotel owners in the country, especially in Boracay, which is part of his congressional district, are feeling the brunt of the hostage crisis.
“Chinese tourists have started to shy away from our resorts because they obey whatever their government says. We have to work very hard to convince China to lift the travel advisory against Philippines,” he said.

Benitez, a member of the tourism panel, supported Miraflores’s view, saying that the Department of Tourism should launch aggressive promotional campaigns to resuscitate the ailing tourism industry. He said a strike that would cripple international travel is a major setback to government’s efforts to lure back tourists.

“RP needs all the help. PAL and its employees should put on hold any action that will hamper flight operations,” Benitez said.

It will be recalled that the Flight Attendants' and Stewards' Association of the Philippines (Fasap) has been threatening to file a notice of strike for the past several weeks after rejecting PAL's offered P80-million compensation package.

Apart from the pay hike, the cabin crews are also seeking amendments of CBA provisions setting an early retirement age for flight attendants.

PAL meanwhile, insists that it could not offer more that P80 million due to its current financial difficulties which are also being experienced by other airlines in the world.

On the other hand, the PAL Employees' Association (Palea), PAL's rank and file union, is also threatening to stage a strike if and when the Department of Labor and Employment will sustain its earlier ruling recognizing PAL management's prerogative to "spin-off" three of the airline's non-core units.

The threatened mass actions of the two unions will likely disrupt domestic and international schedules of the flag carrier and will deal a blow to the already reduced tourist arrivals.

Lawmakers ask PAL workers to call off strike

By Jess Diaz (The Philippine Star) Updated September 07, 2010 12:00 AM

MANILA, Philippines - Members of the House committee on tourism appealed to disgruntled employees of Philippine Airlines (PAL) yesterday to call off their planned strike, saying the move could spell the collapse of the local tourism industry.

Representatives Florencio T. Miraflores of Aklan and Alfredo Benitez of Negros Occidental said a work stoppage in the country’s flag carrier is the last thing the tourism industry needs as it reels from the adverse impact of the tragic Manila hostage incident that resulted in the death of eight Hong Kong tourists.

They called on PAL management and the protesting workers to continue negotiations to settle their dispute, saying that resorting to drastic measures such as a strike will be “counter productive.”
Miraflores, committee chairman, said he expects government to intervene should the labor problem worsen and imperil the country’s economy and international reputation.

“At this point, a PAL strike will only exacerbate the situation and scare more foreign tourists. They should not aggravate the problem. It’s hurting us already,” he said.

He confirmed reports that resort and hotel owners in the country, especially in Boracay which is part of his congressional district, are feeling the brunt of the hostage crisis.

“Chinese tourists have started to shy away from our resorts because they obey whatever their government says. We have to work very hard to convince China to lift the travel advisory against Philippines,” he said.

Benitez, a member of the tourism committee, supported Miraflores’ view, saying the Department of Tourism should launch aggressive promotional campaigns to resuscitate the ailing tourism industry.
He said a strike that would cripple international travel is a major setback to government’s efforts to lure back tourists.

“Our country needs all the help it can get, especially from its citizens. PAL and its employees should put on hold any action that will hamper flight operations,” he said.

The Flight Attendants’ and Stewards’ Association of the Philippines (FASAP) has been threatening to file a notice of strike for the past several weeks after rejecting PAL’s offered P80-million compensation package.

On the part of PAL, the airline insists that it could not offer more than P80-million due to its current financial difficulties, which are also being experienced by other airlines in the world.
The PAL Employees’ Association (PALEA), PAL’s rank and file union, is also threatening to stage a strike if the Department of Labor sustains its earlier ruling recognizing PAL management’s prerogative to “spin-off” three of the airline’s non-core units.

Sunday, September 5, 2010

Special air fare deals at the 21st Philippine Travel Mart

INQUIRER.net First Posted 10:35:00 09/05/2010

MANILA, Philippines—Philippine Airlines is the official carrier of the 21st Philippine Travel Mart (PTM), the country’s premiere travel and tourism trade show, which takes place from September 3 to 5at the Megatrade Hall of the SM Megamall in Mandaluyong City, Metro Manila.

Organized by the Philippine Tour Operators Association, the country’s leading organization specializing in inbound and domestic tourism, the 21st PTM has for its theme “Wow, I Love the Philippines!”

As the event’s major sponsor, PAL has one of the largest booths in the exhibit area. The flag carrier will offer seat sales, holiday packages and fare discounts on various routes to booth visitors. These special offers can be availed of only at the 21st PTM.

For more details, visit www.philippineairlines.com or drop by the PAL booth at the 21st Philippine Travel Mart.

At the same time, Cebu Pacific has announced a 50-percent off seat sale to all its destinations: 16 international and 33 within the Philippines. Seat sale ends September 5, 2010, or until seats last, for travel from October 1 to November 30, 2010. Visit cebupacificair.com for details.

Thursday, September 2, 2010

PAL attendants gearing for strike; airline gets more cancellations

Business World: News
Sep. 2nd, 2010 at 5:37 AM

FLIGHT attendants and stewards of Lucio C. Tan-led Philippine Airlines (PAL) plan to file a notice of strike before the Labor department early next week, after rejecting an P80-million compensation package from the management.

PHILIPPINE AIRLINES claims it lost almost $320 million or P15 billion in the last two fiscal years due to the global economic crisis and higher fuel prices, the downgrade of the Philippines’ aviation safety rating by the US Federal Aviation Administration, and the European blacklisting of all Philippine carriers. -- BW

Andy Ortega, vice-president of the PAL-Flight Attendants’ and Stewards’ Association of the Philippines, said the group’s officers would wrap up meetings with members this week.
“We are not like the usual employees who work in offices every day.

Most of our members are out of the country or Metro Manila. If they are not busy, the officers are maximizing that time to discuss with [members] the status of the mediation meetings and also to get their approval for the strike,” he said.

Talks over a new collective bargaining agreement are in a stalemate as the union claims the P80-million package is not enough for 1,600 flight attendants and stewards.
PAL claims it cannot afford a bigger package because of financial difficulties.

PAL spokeswoman Ma. Cielo C. Villaluna said the management respects the decision of the flight attendants and stewards, but reminded them of the “negative consequences” of a strike.
“We always believe that this matter should be resolved in the negotiating table for the best interest of all the parties involved,” she said.

She added: “It is well within their right to file a notice of strike.”
The airline already has its hands full with a labor dispute with ground workers over an outsourcing plan, and the mass resignation of 26 pilots last July for better jobs abroad.
More cancellations

Following a bloody hostage-takingincident last week that killed eight Hong Kong tourists, PAL is also reeling from flight cancellations.

Ms. Villaluna said that as of Aug. 27, there were 1,100 flight bookings cancelled including forward bookings for next month. The tourists who cancelled their trips were from Hong Kong, Beijing, Xiamen and other Chinese cities.

“The cancellations of bookings are still due to the travel advisory issued by the Hong Kong government last week warning its residents to refrain from all travel to the country. Passengers from this country comprise 6% of our total passenger revenues,” she said.

She said the airline was closely monitoring the situation and would consider reducing flights to Hong Kong and China if necessary.

“We still have our daily flights to Hong Kong and China and also five returning flights to Manila,” Ms. Villaluna said.

In terms of PAL’s total revenues, Hong Kong accounts for 6%, Macau, 0.4%, and China, 3.3%.
The mass resignation of pilots last July forced PAL to cancel and merge flights, dealing a blow to the airline which is in tough competition with the Gokongweis’ Cebu Air, Inc., operator of the profitable budget carrier Cebu Pacific.

The PAL Employees Association (PALEA) had also threatened to strike over the Labor department’s decision to uphold PAL’s plan to outsource three units.

In April, the Labor department assumed jurisdiction over PAL’s dispute with PALEA to prevent a strike. The department later upheld PAL’s decision to outsource catering, ground and call center services. -- Aura Marie P. Dagcuta

Tuesday, August 31, 2010

PAL readies India flights

by Jeremiah F. de Guzman
August 31, 2010 ManilaStandardToday

Philippine Airlines is all set to mount direct flights to India in the first quarter next year in a bid to develop a new tourist market.

PAL president and chief operating officer Jaime Bautista told reporters last week the carrier would launch thrice-weekly flights to New Delhi in March of 2011 using Airbus 330.

“The market for this route is around 50,000 passengers every year,” Bautista said, adding that PAL would skip a stopover in Bangkok as originally planned.

The carrier stopped flying to India in the 1950s but now sees good prospects to bring back the service due to the influx of Indian tourists to Manila and Cebu.

Tourism Secretary Alberto Lim said in a recent interview that the government was tapping the Indian market to add to the growing tourist volume in the Philippines.
He said India, along with Russia, is a potential rich market.

“There is still no significant volume coming from India because there are no direct flights,” Lim said.

Tourist volume from India in the first five months of the year reached 9,911, up 35 percent from 7,339 in the same period last year. The Indian tourists comprise just 0.83 percent of total inbound tourists during the period.

The selection of India as the next potential tourism market comes at the heels of a weak Chinese market following the recent hostage-taking incident in Manila that led to the death of eight Hong Kong nationals.

Hong Kong immediately issued a travel advisory to its residents after the incident.
Meanwhile, budget carrier Cebu Pacific Air is set to launch its maiden Manila-Beijing-Manila flights on Sept. 5.

The carrier’s Beijing flight departs Manila at 7:35 p.m. and arrives in Beijing at 12:05 a.m. The return flight will leave Beijing at 1:00 a.m. and arrive in Manila at 5:30 a.m.

“We are excited to begin our Beijing operations, as it will signify better connectivity for our passengers to the Philippines and the Asia-Pacific region. This seat sale is part of our commitment to offer the lowest possible fares, and more opportunities for convenient connecting flights to the region’s tourist destinations,” said Cebu Pacific vice president for marketing and distribution Candice Iyog.