PAL union files notice of strike anew

(Updated 7:17 p.m.) Citing unfair labor practices, the ground crew labor union of flag carrier Philippine Airlines (PAL) on Monday filed another notice of strike before the Department of Labor and Employment (DOLE). Gerry Rivera, Philippine Airlines Employees' Association (PALEA) president, said the airline has failed to make its counter-proposal for the collective bargaining agreement proposed by the union last October. "Management is engaging in unfair labor practice for refusing to bargain with PALEA as the sole and exclusive bargaining agent," Rivera said on the blog site of Partido ng Manggagawa, where he is the vice chairman. PAL, meanwhile, said it is open to negotiate for a new collective bargaining agreement with its ground crew union but only after Malacañang rules on the management’s plan to spin off its non-core units. Jaime Bautista, PAL president and chief operating officer, said the outcome of the Palace-backed mediation “has a material impact" on the collective bargaining agreement between the management and union. Labor dispute “What if Malacañang sustains the decision of Labor Secretary Rosalinda Baldoz that PAL’s planned spin off is based on lawful grounds and a valid of exercise of managerial prerogative? This would drastically alter PAL’s organizational structure since 2,600 rank-and-file workers would have to retire early," he said in a statement. The labor dispute between PAL and PALEA stemmed from the move of the oldest airline in Asia to outsource its in-flight catering, airport services, and call center reservations. If the outsourcing plan pushes through, more than 2,600 current employees of the airline will lose jobs. Bautista said the PALEA leaders should give the Palace “due respect and a free hand" in resolving the labor row. “After all, we are not closing our door" to put an end to the issue, he pointed out. PALEA submitted its collective bargaining agreement proposal to PAL management on Oct. 8, 2010. In 1998, the PAL-PALEA collective bargaining agreement was put on hold as a condition for the reopening of the flag carrier and as requirement for its rehabilitation. The union said the management was evidently guilty of bad faith for backtracking on the talks for a new collective bargaining agreement. "As late as Jan. 27, PAL president Jimmy Bautista asked PALEA... to submit its panel of negotiators for the collective bargaining agreement talks, which we promptly did on Jan. 31," Rivera said. But he said PAL made an abrupt turnaround last Feb. 16. "[PAL] announced that they will only start negotiations after they implement the outsourcing plan which remains suspended as per the assumption of jurisdiction by the Office of the President." Two separate issues The collective bargaining agreement negotiations and the assailed outsourcing plan are two separate issues, Rivera said. "PAL has a duty to bargain as provided for in the Labor Code... It is illegal to refuse because of an impending plan to layoff union officers and members. The right to collective bargaining is enshrined in the Constitution and protected by the International Labor Organization's Convention 98," Rivera said. The union said PAL's refusal to bargain is "immoral and greedy" given the airline's profitability. Last Feb. 14, PAL showed to the union its financial statements for the first to third quarters of the current fiscal year ending March. The airline earned $31.6 million in the first quarter, $28.2 million in the second quarter, and $15.1 million in the third quarter, according to Rivera. The October proposal The proposal was the first significant move since PAL and PALEA agreed on a 12-year moratorium in collective bargaining agreement in the wake of a bitter labor dispute in 1998, resulting in labor strikes and the airline's closure. One of the salient points of the proposal is the updating and upgrading of the pay scale. The pay scale of employees has been subjected to wage "distortion" that resulted in a "severe contraction and elimination of the quantitative differences between the job grades," Rivera said. The proposal contains a provision that bars contracting out or outsourcing of existing positions, jobs, divisions, and departments already filled up by present or future regular employees. Rivera pointed out that this move protects job security and union representation. Also, the proposal aims to enhance the retirement scheme for employees, which means "saluting, recognizing, and giving tribute" to the airline workers and union members, according to Rivera. - JE/KBK, GMA News