PAL welcomes Palace ruling on spin-off plan
Flag carrier Philippine Airlines welcomed Malacañangâs ruling upholding its right to restructure its operations by spinning-off its Airport Services, In-flight Catering and Call Center Reservations units. The Office of the President upheld a Labor Department ruling recognizing PALâs right to spin-off three non-core businesses. âPAL can now focus on its restructuring efforts in order to survive in the long term," PAL president Jaime Bautista said in a news release posted on PAL's website. He added this removes all legal impediments on the implementation of the spin-off program. PAL said it will abide by the Palace order, including a calling for an additional P50,000 gratuity pay for each affected worker. Bautista said PAL management will now reach out to affected workers to discuss the smooth and orderly implementation of the ruling. He urged members of the PAL Employees Association (PALEA) to respect and abide by the decision for the sake of industrial peace and the welfare of the flying public. Bautista expressed gratitude to President Benigno Aquino III and Executive Secretary Paquito Ochoa Jr. for ârecognizing the difficulties experienced by PAL which necessitated the spin-off its three units." The more than 4,000 PAL employees that will remain with the airline are equally grateful because they know that the spin-off is necessary for the airlineâs continued survival, he added. âOur hearts go out to the employees who will be affected by the restructuring move," Bautista stressed. Bautista assured affected workers of the following benefits:
- * Separation pay equivalent to 1.25 monthâs salary for every year of service; * Gratuity of P100,000 per affected employee (a P50,000 increase per the latest Malacanang order); * One-hundred percent (100%) commutation to cash of unused vacation leave and sick leave balances; * One-year extension of the medical and hospitalization benefits; and * Trip pass benefits depending on the number of years of service.