Quantcast
Latest Stories

PALEA files new bid to reverse ruling on PAL outsourcing scheme

By

MANILA, Philippines—The Philippine Airlines Employees Association (PALEA) is asking the Court of Appeals to reverse its ruling which affirmed Malacanang’s decision approving the plan of the Philippine Airlines (PAL) to cut 2,600 jobs in 2011.

In a 17-page motion for reconsideration filed Tuesday, PALEA told the appeals court that PAL’s outsourcing scheme was not done in good faith.

PALEA stressed that the outsourcing scheme was done during the negotiation period for a new collective bargaining agreement (CBA).

It said the CBA prohibits contracting out of services performed by regular employees and that this prohibition is absolute.

“PAL bound itself not to contract out existing and future positions, jobs, divisions and departments presently occupied by present or future regular employees within the collective bargaining unit,” the motion stated, adding that under the CBA, temporary contracting arrangements will be restored to normalcy after need for it has ceased.

They added that the Office of the President and the Secretary of Labor’s decision to affirm PAL’s outsourcing “would result in disastrous situation where PAL would dismiss workers due to outsourcing, instead of adopting less serious measures.”

PAL’s spin-off/outsourcing program was first recognized as legal and valid by acting Labor Secretary Romeo Lagman on June 15, 2010, and was affirmed by Labor Secretary Rosalinda Baldoz on Oct. 29, 2010. Baldoz’ ruling was affirmed by the Office of the President prompting PALEA to file an appeal with the Court of Appeals.

The appeals court said the permanent outsourcing of non-core operations of PAL is part of the company’s exercise of its right to reorganize its business structure “to enable it to thrive and grow in highly competitive airline industry.”

But PALEA, in its appeal, said PAL failed to produce proof that its business is suffering thus, the need to outsource and cut jobs.

Based on the financial statements of PAL, it incurred a comprehensive loss of US$297.8 million for fiscal year 2009 and US$14.3 million for 2010.

“In a number of cases, the Supreme Court clarified that it is not enough that only the financial statements for the year during which the retrenchment was effected are presented by the employer. It must also be shown that the employer expected no abatement of such losses in the coming years, and that the condition of the company is not likely to improve in the near future,” PALEA said.


Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Labor Dispute , motion for reconsideration , News , PALEA , Philippine Airlines




Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
  1. Napoles spills beans on Enrile, Estrada, Revilla – De Lima
  2. Opinions split on Napoles turning state witness
  3. Delfin Lee: Blame Pag-Ibig, not me
  4. Plunder complaint filed vs PNP chief, firearms office head over license delivery deal
  5. Cedric Lee’s cohort flies out of PH despite look-out order – De Lima
  6. San Juan cops fail to arrest Cedric Lee
  7. More ‘Yolanda’ bodies found
  8. Gigi Reyes pins blame on aide
  9. Lawyer: Napoles ‘will tell all’
  10. Boy ‘sexually assaulted’ at Indonesia international school
  1. Napoles spills beans on Enrile, Estrada, Revilla – De Lima
  2. Gigi Reyes pins blame on aide
  3. Estrada: Gigi Reyes won’t testify vs JPE
  4. Bernice Lee arrested by NBI team
  5. Enrile chief aide back in PH ‘to face charges’
  6. ‘No real progress in PH if dynasties not dismantled’
  7. Suspect in Vhong Navarro’s mauling wants to turn state witness – De Lima
  8. Reckless driver endangered lives of Aquino, entourage–report
  9. More legal woes for Cedric Lee
  10. Henares on Pacquiao bashing: I did not start this
  1. KL confirms Malaysian Airlines Flight MH370 ended in Indian Ocean
  2. MRT passengers pass the hat for 6-year-old Ashley
  3. Rookie, lady cops lauded for quick response to MOA heist
  4. Malaysia averts another air tragedy; pilot lands troubled plane safely
  5. Revilla says he was joking; Lacson stands by his story
  6. Revilla ‘consulted’ Lacson on how he evaded arrest
  7. Cudia, dismissed for lying, got 99% in conduct
  8. Kim Henares needs a reprimand, says Cayetano
  9. Hammer-wielding robbers cause chaos at Philippines’ Mall of Asia
  10. Napoles spills beans on Enrile, Estrada, Revilla – De Lima
Advertisement

News

  • Save the queen? Aide takes fall for Enrile, Gigi Reyes
  • Napoles turnaround alarms whistle-blowers
  • Palace prepared to charge its allies
  • 12 senators on Napoles ‘pork’ list, says Lacson
  • PNP chief on plunder raps: ‘Amateurish’
  • Sports

  • Mixers trim Aces, force do-or-die tiff
  • Donaire junks Garcia as coach, taps father
  • ’Bye Ginebra: No heavy heart this time
  • UAAP board tackles new rules
  • Baguio climb to decide Le Tour de Filipinas
  • Lifestyle

  • Entering the monkhood a rite of passage
  • Haneda International Airport: A destination on its own
  • Wanted: Beauty queen with a heart that beats for the environment
  • Kim Atienza: At home with art and design
  • Life lessons I want to teach my son
  • Entertainment

  • Return of ‘Ibong Adarna’
  • Practical Phytos plans his future
  • In love … with acting
  • From prison to the peak of success
  • ‘Asedillo’ location thrives
  • Business

  • Philippine Airlines to stop shipment of shark fins
  • PH banks not ready for Asean integration
  • Stocks down on profit-taking
  • Banks allowed to use ‘cloud’
  • SMIC to issue P15-B bonds
  • Technology

  • ‘Unlimited’ Internet promos not really limitless; lawmakers call for probe
  • Viber releases new design for iPhone, comes to Blackberry 10 for the first time
  • Engineers create a world of difference
  • Bam Aquino becomes Master Splinter’s son after Wiki hack
  • Mark Caguioa lambasts Ginebra teammates on Twitter
  • Opinion

  • Editorial cartoon, April 24, 2014
  • Talking to Janet
  • Respite
  • Bucket list
  • JPII in 1981: walking a tightrope
  • Global Nation

  • China and rivals sign naval pact to ease maritime tensions
  • What Went Before: Manila bus hostage crisis
  • Obama arrives in Tokyo, first stop of 4-nation tour
  • Believe it or not: Filipinos love US more than Yanks
  • PH, HK end bitter row; sanctions lifted
  • Marketplace
    Advertisement