PALEA turns down dialogue with PAL management

(Updated 4:17 p.m.) The Philippine Airline Employees’ Association (PALEA) on Friday rejected the invitation of PAL management for a dialogue on the plan to retrench 2,600 workers, saying they will only discuss with Philippine Airlines measures to make the company viable but not job outsourcing. In a letter to PAL president Jaime Bautista, Palea said that they will stand by their position despite the decision of the Labor secretary and the Office of the President. In an interview with GMA News Online, Bautista said he invited PALEA officers “to discuss how to go about a smooth implementation of the outsourcing program, and their concerns." The airline plans to outsource its non-core businesses including catering, online ticketing, and ground operations. PAL, according to the association, cannot prematurely implement its planned mass termination of employees and union members. PALEA is insisting PAL’s robust financial results belie the airline’s contention that outsourcing is necessary to make the flag carrier profitable. “PAL actually earned more than $72.5 million in its last fiscal year from April 2010 to March 2011, since it paid $46.5 million in outstanding debt last June 7, 2010. Even granting PAL’s reasoning that its profitability is cyclical, such falls short of jurisprudence that sustained losses are a necessary ground for retrenchment," president Gerry Rivera claimed. “PALEA will exhaust all remedies available to it, including seeking a judicial resolution of the case, Rivera said. The Labor Department and the Office of the President have already made their position clear. They are supporting PAL on its plan to outsource non-core businesses, Bautista said. “It’s unfortunate that the union rejected management’s calls for sober and professional discussions on how best to implement the spin off plan, including the transition process. The dialog would have helped thresh out many questions and uncertainties on their members’ minds," said PAL spokesperson Cielo Villaluna. "Not just about losing money" “The reason is not just about losing money, but it is clearly a management prerogative," Bautista stressed. He cited other cases of outsourcing non-core operations involving San Miguel Corp. and Philippine Long Distance Telephone Co. — two of the country’s most profitable companies. These companies outsourced some of their operations not because they are losing money, but because it was a management prerogative, Bautista said. Rivera said PALEA with its lawyers Marlon Manuel and Joven Dellosa is now readying a petition for the Court of Appeals on the legality of the retrenchment and the outsourcing plan. PALEA meanwhile received the support of International Transport Workers Federation (ITF) and its affiliates in the Asia Pacific region. In a press conference Friday morning, ITF secretary-general for Asia Pacific, Mahendra Sharma, declared the global union’s solidarity with PALEA. ITF Asia Pacific officers and member unions from Garuda Indonesia, Air India and Malaysian Airlines are in Manila for a seminar but took a short break for the solidarity activity with PALEA. Protests against the decision of the Office of the President allowing PAL to lay off more than half its workforce already started Thursday with PALEA members wearing black ribbons at work. Next Monday, PALEA and other labor groups will hold a motorcade from the office of the Philippine Economic Zone Authority in Manila to Ayala Ave. in Makati by 5 p.m. Information campaign Also Friday, PAL issued a statement saying it will start a company-wide information drive about the spin-off program after its workers’ union rejected management’s offer to a dialog. “PAL employees deserve to know the real score about Malacañang’s recent order upholding PAL’s spin off program and how it directly affects their future," the airline said. The information campaign will focus on timelines, mechanics for availing retirement benefits, clearances and accountabilities, and application process for those who wish to transfer to PAL’s service providers. Questions will also be entertained for the enlightenment of affected workers, PAL said. — VS, GMA News