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PALEA hits Palace ruling on PAL spin-off plan, prepares for strike


The Philippine Airlines’ employees union expressed disappointment over Malacañang’s decision upholding PAL’s right to restructure its operations by spinning-off its Airport Services, In-flight Catering and Call Center Reservations units. Maintaining that the spin-off could lay off 2,600 workers, the PAL Employees’ Association (PALEA) also accused Malacañang of “conspiring" with the airlines’ management for not informing the union of the decision. “Sinubukan naming dumaan sa sinasabing tuwid na landas ni P-Noy, yun pala ang Malacañang ay ikalawa na rin palang tahanan ni Lucio Tan," said Gerry Rivera, PALEA president and vice chair of Partido ng Manggagawa (PM). Rivera said the conspiracy was "evident when PAL broke the news to the media even before an official announcement was made, meaning the management has prior knowledge of the decision long before it was announced last Friday." He said PALEA has yet to receive a copy of the ruling. “We are very frustrated with President Benigno Aquino III," Rivera added. To recall, President Aquino formally assumed jurisdiction over the labor-management dispute last December 15, averting a potential strike by PALEA, which filed a notice of strike on November 5, 2010. PALEA also filed a petition for presidential intervention before the Office of the President after Labor Secretary Rosalinda Baldoz ruled in October last year that management’s decision to spin-off its three non-score units is “a valid exercise of management prerogative." Last Thursday, PALEA voted an "overwhelming" yes to stage a strike to compel the flag carrier's management to enter negotiations for a collective bargaining agreement. But PAL management had maintained it will only negotiate an agreement with PALEA after Malacañang, which has taken jurisdiction of the row, rules on its plan to outsource its non-core operations. Moreover, PAL said a strike vote has no basis. “How can the spin-off issue be discussed… when the case is still within the purview of the Palace?" the company said in a statement last Wednesday, citing its president, Jaime Bautista. For his part, PM chairman Renato Magtubo said Malacañang’s decision sends a chilling message to the labor front: that outsourcing and contractualization is not only legal but a desired labor and economic policy of the Aquino administration. PALEA is already preparing for the requirements for the strike before the Palace’s decision came out last Friday. “PALEA asks for the support of our fellow Filipinos and from our brothers and sisters in the labor movement," Rivera said. A labor unity meeting convened in Quezon City Saturday afternoon gathered militant and moderate labor groups in support of PALEA’s fight. PAL to reach out to affected workers In a news release posted on PAL's website, its president Jaime Bautista said the management will reach out to the workers who would affected by the spin-off program. He said PAL 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 meet affected workers to discuss the smooth and orderly implementation of the ruling. Also, he urged PALEA members 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 Aquino and Executive Secretary Paquito Ochoa Jr. for “recognizing 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 airline’s continued survival, he added. Bautista assured affected workers of the following benefits:

    * Separation pay equivalent to 1.25 month’s 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.
— Jerbert Briola/LBG, GMA News
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