‘Uncertainty’ over PAL labor row worries Palace

Malacañang on Saturday admitted it is still worried over the continued uncertainty of whether workers affected by the spinoff of Philippine Airlines’ non-core businesses will sign up with the flag carriers’ new service providers. Presidential spokesman Edwin Lacierda said Palace officials are not discounting the possibility PAL’s operations may be disrupted if many of the affected workers would refuse to work for the new firms the airline's management will hire as subcontractors. “Doon tayo nababahala. PAL should take steps, we don’t know what will happen. If they (the affected workers) get their severance package, will they apply with the service provider? Hindi natin alam ano ang magiging next step nila," he said on government-run dzRB radio. He reiterated his appeal to PAL and the PAL Employees’ Association (PALEA) to take into consideration the welfare and the riding public. “We hope na hindi mangyaring maapektuhan ang service ng PAL. We are asking both sides (na) isipin ang riding public," he added. On Friday, PAL said it had started serving notices of separation to more than 2,300 workers even as PALEA has continued to question the spinoff-outsourcing move. It said over 700 workers or almost 30 percent of all the personnel in its catering, ground-handling and call center reservations units in Manila and Cebu have received copies of their separation letters. Last August 11, the Office of the President upheld PAL’s spinoff program as it threw out PALEA’s motion for reconsideration. Citing an October 29, 2010 ruling of Labor Secretary Rosalinda Baldoz, PAL said its workers affected by the spinoff/outsourcing will receive the following benefits:

• separation pay amounting to 125 percent of their monthly basic salary for every year of service;
• P50,000 gratuity pay;
• 100 percent commutable-to-cash vacation and sick leaves;
• trip pass (travel) benefits; and
• one-year extension of medical and hospitalization benefits and guaranteed pay for one year of whatever salary is granted by the service providers to those who choose to be employed by PAL’s new service providers.

Malacañang modified DOLE’s order by adding P50,000 gratuity pay on top of the original amount granted by DOLE. The new service providers are:

• Sky Logistics (airport services)
• Sky Kitchen (catering)
• SPi Global (call center reservations)

They will absorb the affected workers, who are given until September 9 to express their intention to join their new employer. Meanwhile, Lacierda insisted Malacañang did not intervene in the labor row, other than affirm Baldoz’s decision. “We just affirmed the decision of [the Labor Secretary]," he said. — LBG, GMA News