PAL starts meetings for spin off/outsourcing as union goes to CA

Philippine Airlines (PAL) today (26 August 2011) said day one of the series of town hall meetings and service of notices of separation to more than 2,300 workers proceeded smoothly despite last ditch efforts by its ground workers’ union to question the airline’s spin off/outsourcing program.

As of press time, PAL said over 700 workers or almost 30 percent of all the personnel in its catering, groundhandling and call center reservations units in Manila and Cebu have received copies of their separation letters. The number is expected to grow as PAL continues the dialogues and as the workers meet PAL’s new service providers.

Reacting to the petition reportedly filed by the PAL Employees Association (PALEA) with the Court of Appeals, PAL counsel Atty. Clara de Castro said such petition does not bar PAL management from enforcing a lawful and valid order upholding the airline’s spin-off/outsourcing program.

“PAL is proceeding with the spin off/outsourcing on the basis of legal and valid orders from the Department of Labor and Employment and the Office of the President which are considered ‘final and executory.’ And under the Rules of Procedure, the mere filing of such petition does not automatically bar implementation of said lawful orders. Moreover, the mere filing with the CA does not necessarily mean that the appellate court would give due course to PALEA’s petition,” De Castro explained.

Besides, she said PAL has not received a copy of PALEA’s petition which must first be raffled off to the appropriate division of the appellate court. “If we follow PALEA’s argument, then anyone can just go to the CA for the sake of enjoining implementation of valid and lawful orders,” she stressed.

Last August 11, 2011, the Office of the President upheld PAL’s spin off/outsoursing as a valid and legal exercise of management prerogative as it threw out PALEA’s motion for reconsideration. The DOLE and Palace orders became the basis for PAL to commence the distribution of separation letters and processing of benefits as outlined in the order.

Based on the October 29, 2010 ruling of Labor Secretary Rosalinda Baldoz which was upheld by Malacanang, PAL workers affected by the spin off/outsourcing will receive the following: separation pay in the amount of 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; one (1) 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.

On appeal, Malacanang modified DOLE’s order by adding P50,000 gratuity pay on top of the original amount granted by DOLE.

PAL spokesperson Cielo Villaluna said various teams were deployed early today in PAL’s catering, airport services and cell center reservations units in Manila and Cebu to explain the spin off/outsourcing program and to serve letters informing workers of their separation from the company effective end-September 2011.

She said PAL’s operations remain normal as she assured the riding public that PAL workers continue to do their jobs. Most of the workers understand PAL’s situation and the need to ensure long-term survival. A number of workers also asked clarificatory questions particularly with regards their planned transfer to the new service providers.

The new service providers – Sky Logistics (airport services), Sky Kitchen (catering) and SPi Global (call center reservations) – will absorb the affected workers, who are given until September 9, 2011 to express their intention to join their new employer.