Latest Stories

CA orders PAL to pay crew P100M


Some 70 members of the Flight Attendants and Stewards Association of the Philippines (Fasap) stage a rally on Tuesday outside the Supreme Court building in Manila to protest the court’s recall of its September 7 ruling. The protesters express hope the high court will do what is just and right. FILE PHOTO

MANILA, Philippines—The Court of Appeals ordered flag carrier Philippine Airlines (PAL) to set aside P100-million for the unpaid salary increases of its flight attendants.

In a 35-page decision dated June 18, the appeals court 17th division through Associate Justice Ramon Cruz partly granted PAL’s plea to set aside the order of the Secretary of Labor, which granted P220-million worth of wage increase to members of the Flight Attendant and Stewards Association of the Philippines (FASAP).

Instead, the appeals court ordered PAL and FASAP to implement their Collective Bargaining Agreement covering the period from July 16, 2007 to July 25, 2010.

“Wherefore, the petition is partly granted, the decision dated December 23, 2010 and order dated April 1, 2011 of the Secretary of the Department of Labor and Employment are reversed and set aside, insofar as the salary increase and compulsory retirement age are concerned,” the appeals court said.

With regards to salary increase, the court said that the following would be followed: “PAL shall grant a lump sum salary increase in the amount of P100 million to FASAP members applicable to the period starting from July 16, 2007 to July 25, 2010 or the remaining three year period of the 2005-2010 CBA.”

The appeals court reversed the order of the DoLE saying the Secretary of Labor based her findings on financial records that were not relevant to PAL.

“We are constrained to disagree with her findings. They do not conform to the evidence on record and are not supported by substantial evidence,” the court said.

DoLE based its findings on financial statements for fiscal year 2010 to 2011.

“The use of irrelevant document to support her finding casts serious doubt as to whether there is substantial evidence to support her conclusion and consequent award,” the decision read.

Records showed that PAL suffered losses of $297.8 million in fiscal year 2008 to 2009 and $14.3 million in the fiscal year ending March 2010.
“There is surfeit proof establishing the precarious financial condition of PAL,” the decision read.

Regarding the compulsory retirement age, the appellate court ruled:

1.      For those hired before November 22, 1996 should be 55 years for female and 60 years for male;

2.      After November 22, 1996, should be 45 years for female and male;

3.      After November 22, 2000, should be 40 years for female and male; and

4.      Those hired after July 16, 2007, should be 40 years for female and male.

“Retirement is the result of a bilateral act of the parties, a voluntary agreement between the employer and the employee whereby the latter, after reaching a certain age, agrees to sever his or her employment with the former,” the appeals court said.

“The retirement age for flight attendants hired: (a) before November 22, 1996; (b) after November 22, 1996; (c) after November 22, 2000 as stipulated in the past CBAs are obligations arising from contracts, hence, they must be complied with in good faith,” the decision stated.

FASAP was “not coerced or forced by PAL to sign the previous CBAs… fully aware that it provided a specific retirement age for flight attendants,” the appeals court added.

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: Fasap , Flight Attendant and Stewards Association of the Philippines , PAL , Philippine Airlines , wages

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
  1. Fr. Suarez says last Mass on Easter before returning donated land to San Miguel
  2. Chinese lawyers say they were tortured by police
  3. Hair salon’s Kim Jong Un poster riles embassy
  4. Siquijor ‘healer’: For every cure, there’s a plant
  5. State seeks guilty verdict for Abalos
  6. Why college grads end up in the PNP
  7. Estrada: I will pray for my detractors
  8. Miraculous image makes Gapan City top site for pilgrimage in Central Luzon
  9. I’ll follow my conscience on Estrada, says JV Ejercito
  10. Five men from Cavite found dead in jeep in Batangas
  1. Suspect in Vhong Navarro mauling tries to leave PH
  2. Massage attendant arrested on rape complaint filed by Japanese tourist
  3. ‘Tell no one’ Makati bettor won P250M lotto
  4. MH370 co-pilot made mid-flight phone call – report
  5. Netizens cry: 6/55 Lotto was rigged
  6. ‘Wife of Jesus’ theory papyrus not fake – Harvard study
  7. North Korea uses flamethrower to execute official
  8. ‘King’ Yabut and I: Driver bares Makati dad ‘abuses’
  9. Gay college instructor arrested for oral sex with student
  10. It was difficult having Japanese blood
  1. KL confirms Malaysian Airlines Flight MH370 ended in Indian Ocean
  2. MRT passengers pass the hat for 6-year-old Ashley
  3. Pork payoffs to newscasters Erwin Tulfo, Del Prado, others bared
  4. UP back on top as ‘average’ student aces bar
  5. Rookie, lady cops lauded for quick response to MOA heist
  6. Model Helena Belmonte wished ‘to slash her wrist and hope to die’
  7. Malaysia averts another air tragedy; pilot lands troubled plane safely
  8. Revilla says he was joking; Lacson stands by his story
  9. Revilla ‘consulted’ Lacson on how he evaded arrest
  10. Police rule out foul play in Helena Belmonte’s death as boyfriend is ‘traumatized’


  • How other faiths observe Holy Week
  • No noise, partying in Boracay on Good Friday
  • More legal woes for Cedric Lee
  • NATO ups military presence amid Russian threat
  • DOH issues official statement on confirmed case of MERS-CoV
  • Sports

  • Tenacious Iran frustrates Qatar to retain Asian Club volleyball crown
  • Floyd Mayweather is ESPN’s top-paid athlete
  • Pistorius trial: Judge sets 2-week adjournment
  • China, Taiwan rout foes for 3rd, 5th places in Asian Club volleyball
  • Ginebra’s new import Freeman arrives, makes PBA return vs ROS
  • Lifestyle

  • Are your favorite malls open this Holy Week break?
  • Celebrate Easter Sunday at Buddha-Bar Manila
  • Moriones feast: A slow, steady transformation
  • Weaving ‘palaspas’ a tradition kept alive in Tayabas City
  • Finalists announced for best translated books
  • Entertainment

  • Filipino rock icons to hold silent concert
  • Mommy Dionisia Pacquiao’s greatest hits
  • Deniece Cornejo posts bail—report
  • Miley Cyrus hospitalized, cancels US concert
  • Otaku Summer Jam 2014: Summer’s hottest J-rock/Cosplay event
  • Business

  • Russian economy hit by Ukraine turmoil
  • PSEi firms up ahead of Lenten break
  • I-Remit teams up with Lakhoo for remittances from Oman
  • Megawide nets P1.4 B in 2013
  • Longer TRO sought on rate hike
  • Technology

  • Smart phone apps and sites perfect for the Holy Week
  • Tech company: Change passwords or suffer ‘Heartbleed’
  • Filling the digital talent gap
  • SSS to shut down website for Holy Week
  • Another reason to quit social media this Holy Week: your safety
  • Opinion

  • We may never know
  • Couple of things
  • Mommy D’s magic
  • Stop bizarre and bloody Good Friday rituals
  • Holy Week taboos
  • Global Nation

  • Netizens welcome Japan’s visa-free travel plan
  • Visa-free travel by Filipinos to Japan still a proposal
  • Visa-free travel to Japan could boost tourism
  • 2 PCG men ordered arrested over Balintang Channel shooting
  • US Embassy closed on Holy Thursday, Good Friday
  • Marketplace