PALEA to PAL: Create new business model, don’t outsource

Despite Malacañang’s decision to give Philippine Airlines (PAL) the go signal to outsource its non-core operations, the Philippine Airlines Employees Association (PALEA) asked PAL’s management Thursday to reconsider the plan and instead create a business model that would retain PAL’s non-core workers. Over 200 members of PALEA picketed the annual PAL stockholders meeting at the Century Park Sheraton Hotel in Manila, calling on the management to reconsider its decision. On Thursday last week, the Palace reaffirmed its earlier decision allowing PAL to outsource its catering, ground handling and call center reservation units. PALEA President Gerry Rivera said the Employee’s Rehabilitation shares comprise the fourth largest block of PAL stocks, making it only right for management listen to their pleas. The employee stock options were worked out in 1998 as part of the collective bargaining agreement, which gave PALEA a board seat in PAL. “Despite the overwhelming number of shares owned by Lucio Tan, we believe that Mr. Tan should listen to our demands," Rivera added. Financial rehabilitation plan In 1998, PALEA agreed to suspend an agreement with management on salaries as part of efforts to help PAL recover financially. The plan worked in 2007 but was disrupted by the weakening of the global aviation industry in 2008. “We have sacrificed our collective bargaining rights for 13 long years since 1998 and it is unjust for PAL to reward us with retrenchment for it. We appeal to management to craft a business model that does not include outsourcing jobs," Rivera said. Rivera insisted the outsourcing plan would only burden PAL since it has shown in the past that it does not need outsourcing in order to grow and be profitable. — BC/VS, GMA News