PAL starts releasing checks for separation pay of 'outsourced' workers

Beginning Friday, Philippines Airlines (PAL) will be issuing the checks for separation packages, totaling P2.6 billion, to its workers from three non-core units whose jobs were outsourced to third-party providers since Oct. 1. In a statement released Thursday, PAL said the employees who did not join the September 27 wildcat strike and are now working for PAL’s service providers will be the first to receive their checks on Oct. 14. “Per instructions of PAL management, we will give priority to employees who heeded PAL’s appeal for a smooth and orderly implementation of the spin-off/outsourcing program," said PAL spokesperson Cielo Villaluna. Those who declined the job offer but were not part of the strike will be receiving their checks beginning Saturday, Oct. 15. Villaluna said checks for 338 former employees who joined the Sept. 27 protest “are on hold pending their final clearances." The P2.6 billion for the transition benefits is partly financed by a $50 million loan from European bank, Credit Suisse, PAL said. Over 2,300 are entitled to the retirement package—600 of whom transferred to the service providers while over 1,700 chose not to join PAL’s third party contractors. “Management is grateful for their dedication and loyalty and for honoring calls for cooperation during the transition period," Villauna said of those who didn’t join the strikes. Package breakdown “Majority of the workers shall receive an average of close to P800,000 in separation pay, which includes 125 percent of their monthly salary for every year of service, P100,000 gratuity pay and 100% converted-to-cash accrued vacation and sick leaves," PAL said. According to PAL’s records, more than 28 percent will receive P1 million or more, 37 percent will get between P750,000 to P1 million, while 22 percent will get less than P500,000. While the highest package reached P2.5 million, those who served PAL for a minimum of a year will only be getting roughly P120,000. PAL said the cash components of the separation benefits are tax-free. Non-cash components of the package are guaranteed salary and hospitalization benefits for one year and free tickets for employees and qualified dependents according to their years of service. — BC/ELR, GMA News