PALEA asks House to probe PAL's corporate perks

The Philippine Airlines Employees’ Association (PALEA) has called on the House of Representatives Labor Committee to investigate the bonuses received by Philippine Airlines executives and board members during the years that the national flag carrier claimed to have incurred losses. The company claimed it incurred losses of at least P15 billion in the last two fiscal years due to high oil prices, stiff competition, and reduced number of passengers due to the global economic crisis, among other reasons. PAL had a total income of US$180.7 million in 2006-2008, but the amount was not enough, as it incurred $312.2 million in the next two fiscal years (2009-2010), Department of Labor and Employment (DOLE) spokesman Nicon Fameronag said in an earlier report. [See story: PAL operations spin-off to cost P25B, says CEO] “PAL’s alleged losses are questionable when it doles out millions in corporate bonuses. Or if indeed PAL is losing then how come it rewards the failure of its executives and officers with indecent benefits? And why is it that workers have to pay for the financial crisis of PAL?" said Gerry Rivera, PALEA president and Partido ng Manggagawa (PM) vice chairperson. Citing documents from PALEA, Rivera estimates bonuses of top senior executive officers from 2008 to 2011 can reach up to $60,000 (PHP 2.76 million at exchange rate of PHP46 to $1) per year. This is aside from salaries of around $360,000 and other annual compensation of up to $90,000. “For the same years, all the other PAL officers and board of directors members received no less than $25,000 in bonuses on top of salaries of more than $150,000 and other annual compensation of up to $265,000. These bonuses and other compensation were given out during the years that DOLE Secretary Rosalinda Baldoz in her decision cites PAL’s claimed of losses of $ 297.8 million in 2009 and $ 14.3 million in 2010 as basis for retrenchment," Rivera added. PAL management will implement a drastic spin-off measure to reduce fixed operating expenses that include outsourcing of in-flight catering, airport services (ground handling, cargo terminal, cargo handling and ramp handling), and call center operations, in which almost 3,000 employees will be terminated. Restructuring PAL operations will cost the airline P2.5 billion instead of the originally estimated P2 billion, PAL president and CEO Jaime Bautista said in an earlier report. Despite the fact that increased benefits will bear heavily on the airline’s precarious financial position, PAL "will do its best to pay all affected employees the modified package approved by DOLE," read its statement released last Wednesday. The House Labor Committee is due to hold a hearing on November 10 on the labor dispute at PAL. PALEA, along with other labor groups, will attend to push proposals to regulate the “epidemic of contractualization at PAL and other companies." Rivera is optimistic that the Labor Committee can oblige PAL management to make a full disclosure of "secretive" corporate bonuses. “PAL should not hide behind confidentiality arguments since it is a public utility that enjoys a government franchise. Corporate bonuses becomes a public issue when PAL plans to layoff thousands on claims that it may go bankrupt if not allowed to contract out work," Rivera insisted. [See story: Bleak Xmas: DOLE allows layoff of 3000 PAL workers] “We will welcome support from legislators who will add their voice to the chorus of solidarity with the PAL employees. PALEA thanks Bishop Broderick Pabillo for his condemnation of the Labor Department’s approval of the mass layoff," Rivera said. Bishop Pabillo, chair of the National Secretariat for Social Action-Justice and Peace (NASSA), the social action arm of the Catholic Bishops’ Conference of the Philippines (CBCP), expressed disappointment on Friday at the policy of the government to favor capitalists rather than ordinary workers. On the other hand, Rivera said, President Benigno Aquino III cannot was his hands of the PAL controversy because the Lobor Department is under his supervision. — Jerbert Briola with Carmela Lapeña/LBG, GMANews.TV