Malacañang on Friday appealed to employees of Philippine Airlines (PAL) to go through the legal processes instead of going on strike following the Palace decision upholding PAL management’s decision to outsource 2,600 jobs.
“We would like to appeal to them not to jeopardize the riding public. Many people depend on Philippine Airlines so I hope the passengers or the public would not be affected by their row with Philippine Airlines,” Presidential Spokesperson Edwin Lacierda said.
The Office of the President recently upheld the legality of PAL’s plan to do away with 2,600 jobs as part of cost-cutting measures.
“We hope that we let the process continue. They are planning to file an appeal to the Court of Appeals on the decision rendered by the Office of the President,” Lacierda said during yesterday’s news briefing in Malacañang.
In a two-page decision signed by Executive Secretary Paquito Ochoa, Malacañang upheld the PAL’s plan to close three noncore departments and to outsource their services to third-party providers.
Strike threat
Malacañang said the PAL Employees’ Association (Palea) failed to raise new points to convince it to reverse its earlier decision affirming the ruling on the matter by Labor Secretary Rosalinda Baldoz.
PAL employees, however, have threatened to go on strike if the airline’s management moves to prematurely implement its planned outsourcing.
“If PAL implements the outsourcing, we will go on strike. It will have the effect of paralyzing PAL’s operations,” Palea president Gerry Rivera warned, but declined to provide more details.
Sources at PAL, however, warned that management would not hesitate to fire any worker who will join any illegal strike. Those terminated will likely lose all benefits due them, they said.
But Rivera told a briefing yesterday that Palea, which represents half of the airline’s 7,000-strong workforce, was willing to return to the negotiating table with management to find a solution to the company’s current financial woes.
“But instead of talking about cutting our jobs, we should find ways on how to grow the company without sacrificing the welfare of its employees,” Rivera said.
Palea plans to appeal to the Court of Appeals the decision of the Office of the President. It warned PAL against implementing its outsourcing plan before the CA rules on the union’s petition.
“If we perfect our appeal, PAL should stop the implementation. It cannot implement prematurely and preempt the court,” Rivera said.
On Thursday, PAL president and chief operating officer Jaime J. Bautista invited Palea officers to a meeting “to discuss and explain the manner of implementing the spin-off…so as to allay any apprehensions on part of the employees and most especially, the union.”
The planned spin-off will affect three “noncore” departments, namely in-flight catering, airport services and call-center services which have 2,600 employees.
Willing to dialogue
In a reply sent on Friday, Palea said it was willing to discuss the present dispute. “But we maintain our position that…PAL cannot prematurely implement its planned mass termination of employees and union members.”
“As you know, Palea will exhaust all remedies available to it, including seeking judicial resolution of the case,” it said.
In a separate statement, PAL management said it had scheduled several “town hall” style meetings with the operating units to be affected by the retrenchment.
To be discussed include timelines, mechanics for availing retirement benefits, clearances and accountabilities, and application process for those who wish to transfer to PAL’s service providers.
“It’s unfortunate that the union rejected management’s calls for sober and professional discussions on how best to implement the spin-off plan, including the transition process. The dialog would have helped thresh out many questions and uncertainties on their members’ minds,” said PAL spokesperson Cielo Villaluna.
But Rivera said PAL, being a profitable company, should not be allowed to cut jobs. During the fiscal year 2010–2011, PAL posted a net income of $72.5 million. But its latest financial report showed the company posting a $10.6 million loss for the April to June period.