PAL management to continue reaching out to PALEA

Even as it reassured its passengers and customers of contingency measures against a strike by some of its ground crew, flag carrier Philippine Airlines said it will continue to reach out to the PAL Employees' Association (PALEA). But the management warned that employees who would take part in the labor strike might face forfeiture of their benefits including those ordered by the Office of the President. "We hope to send a communication to the PAL union within this week. We trying to reach out to the union as we have been doing so since 2009. We understand where they are coming from, and it is a very painful decision for them. We want to resolve the issue soonest," PAL spokeswoman Cielo Villaluna said in an interview on dwIZ radio. She said the Palace's decision upholding PAL management’s right to restructure its operations by spinning-off its airport services, in-flight catering and call-center reservations units allows PAL to focus on its restructuring efforts to survive in the long term. Earlier, PAL president Jaime 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 Malacañang 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.

President Benigno Aquino III 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 of its three non-score units is “a valid exercise of management prerogative." Nearly 2,600 workers who will be part of the restructuring program will be assured of slots in the service provider, which will take over the operations of the three units to be spun off. In a separate statement, Villaluna said PAL's interline airline-partners as well as augmentation forces from management are on standby "to ensure that our operations are not disrupted in case PALEA members walk out." The PALEA earlier threatened to push through with its plan to hold a strike, especially after Malacañang upheld PAL management's right to spin off its three non-core businesses. — LBG, GMA News