Lack of Pilots forces PAL to cancel flights

[Monseratto]

Sad holiday season for some. Hope Malacanang won't interfere.

http://globalnation.inquirer.net/new...-PAL-employees

DoLE allows mass layoff of 3,000 PAL employees

INQUIRER.net

First Posted 12:13:00 10/31/2010

MANILA, Philippines—(UPDATE) Labor Secretary Rosalinda Baldoz has allowed Philippine Airlines’ planned mass layoff of some 3,000 employees when she affirmed the previous order of then acting labor secretary Romeo Lagman denying the motion for reconsideration of the ground crew union at the national flag carrier.

“We find the outsourcing of services and closure of the Inflight Catering, Airport Services, and Call Center Reservation Operations in Philippine Airlines to be a just, reasonable, humane, and lawful exercise of its management prerogative to reorganize the corporate structure for purposes of viability of its operations, subject to entitlement,” according to the order dated 29 October 2010, a copy of its dispositive portion was obtained by INQUIRER.net.

In contrast to Lagman’s 15 June 2010 order, Baldoz’s ruling provides for an additional gratuity of P50,000 per employee and 125 percent separation pay instead of 100 percent. Other entitlements include allowing vacation leave and sick leave balances to be convertible to cash, their absorption to the respective service providers for one year, among others.

Sought for a reaction, PAL said it could not issue one as it has not yet received a copy of the decision.

In a news release, PAL Employees’ Association (Palea) the slammed Baldoz’s decision.

Palea president and concurrent vice chairman of the Partido ng Manggagawa (Workers’ Party) Gerry Rivera said: “The Department of Labor and Employment’s go signal for the retrenchment of half of the workforce means the death of job security at Philippine Airlines.”

Rivera said the union intends to appeal the decision at the Court of Appeals.

At the same time, he said, members of Palea and PM will hold a mass action at the DoLE main office in Intramuros to denounce Baldoz’s order. The protesters plan to bring a mock coffin with the message “RIP PAL Workers” and an effigy of Baldoz as the mythical “Kamatayan.”

Rivera explained that Baldoz’s decision entirely disregarded the union’s arguments and merely reiterated PAL’s position that it must outsource work to service providers in order to be financially viable.

“The order is not a win-win solution that balances the interest of workers for job security and management’s for financial viability. Instead it is simply management’s slightly improved offer disguised as DoLE’s decision,” he said.

Rivera said that Baldoz’s order means allowing the contractualization at PAL via a retrench-rehire scheme. He said PAL will retrench 3,000 regular unionized workers who will be rehired as contractuals by service providers that are partly owned by Lucio Tan.

“The loss of 3,000 regular jobs cannot be compensated by the creation of 3,000 new contractual positions. Baldoz’s decision released on the eve of All Souls’ Day is symbolic for it will conjure up 3,000 zombie positions which will have cheaper wages, fewer benefits, no security of tenure, and no protection by a union,” he said.

Palea also declared that the mass action tomorrow is just the start of a series of protests by PAL employees and their supporters from the labor movement.

An assumption of jurisdiction order from DoLE had prevented Palea from holding mass actions, including a strike since April this year. A similar assumption order was imposed on the Flight Attendants and Stewards Association of the Philippines while a decision remains pending at the office of Secretary Baldoz regarding the separate dispute about retirement age and other issues.

Veronica Uy

[boybi]

Magkakaroon kaya ng interruption sa flights ng PAL?!?!?

[CVT]

Sad development indeed.....

11.1K:transform:

[jimnyeatworld]

unions are a thing of the past. it should be dealt with na para hindi tumagal. wala naman naitutulong yan kungdi patabain ng patabain ang mga employees for security of tenure.

if there are others out there who are willing to contract it out with PAL at lesser cost eh di mas okey. in the end, its the service that counts

[chua_riwap]

Magkakaroon kaya ng interruption sa flights ng PAL?!?!?

Patay na.

Wag naman. PAL ang sasakyan ko for my forthcoming XMas vacation.........

[chua_riwap]

http://newsinfo.inquirer.net/topstor...early-P1M-each

PAL employees to be axed to get nearly P1M each

MANILA, Philippines—Philippine Airlines plans to implement its recently approved outsourcing of non-core services as soon as possible to make the flag carrier more competitive against rivals in the region.

The retrenchment of over 2,600 workers will cost the company around P2.5 billion, translating to an average lump-sum payment of close to P1 million per person. This follows the decision last week by Labor Secretary Rosalinda Baldoz to uphold a previous decision stating that PAL’s planned outsourcing of non-core services such as in-flight catering and airport services was a legal exercise of “management prerogative.”

The recent decision ordered PAL to pay a terminated employee 1.25 months’ salary for every year of service. Each affected worker will also be given a gratuity of P50,000. Other benefits such as medical and free flights will also be extended to employees for a year, the company said.

“We hope that we will finally implement a corporate restructuring that will lead to an expansion and improvement of services,” PAL president and chief executive officer Jaime J. Bautista said. The company reiterated that the benefits it was ordered to pay its employees was above what is mandated by the law. The company plans to borrow from state-owned banks or foreign creditors to finance the lump-sum payments to employees.

The services to be outsourced—catering and airport services—will be handled by Sky Kitchen and Sky Logistics, respectively. The newly formed companies are controlled by businessman Manny Osmeña, who also has a stake in Cebu Pacific Catering Services (not related to the airline).

Cebu Pacific Catering is also partly owned by PAL sister firm Macroasia Corp. The call center services, which will also be outsourced, will be handled by SPi Global Holdings Inc., a subsidiary of Philippine Long Distance Telephone Co.

“It is important that we implement this because this is part of our survival plan. We are the only airline in Asia doing our own ground handling,” Bautista said. “For us to be able to compete, we need to innovate and change the way we do business. We need to adapt the best practice in the industry.”

The company expects to save as much as P600 million a year from the outsourcing, allowing the carrier to offer lower fares to passengers. The outsourcing, Bautista said, will also help the company attract new investors that will infuse fresh funds to help the company improve its services.

[CVT]

^^^ Oh yes, the oh so enticing outsourcing model....

11.1K:transform:

[shadow]

sabi ko eh, puro porma lang mga PALEA, tanggaling na lahat yan at para pulutin na sila sa kankungan...

puro yabang dahil sa union..f*ck them!!!

[wowiesy]

^^^ Oh yes, the oh so enticing outsourcing model....

11.1K:transform:

okay naman yung outsourcing eh... even how they are doing it now... the fact is susunod naman ang PAL sa provisions ng batas - which is kailangan magbayad sa mga maaapektuhan... that alone has leverage legally.. sumusunod sila sa batas.. ibang usapankung ilipat sa outsource tapos walang bayad... yan talaga sigurado talo ang PAL... but the fact na magbabayad sila, makes it legit...

yung fact na kung sino ang may ari ng mga companies na sasalo nung outsourcing is beyond the point.. especially kung corporation din at maraming ibang owners... the person (Lucio Tan) is a different entity from the corporation (be it PAL, Allied Bank, Fortune Tobacco, Asia Brewery, PNB, etc)..

it's just that for the workers, it's a lot more easier kung nasa loob sila.. at may union.. at may CBA... they get the work.. they get the benefits.. and when they retire, they still get the benefits... at maaari they also earn on the side while being inside the organization ... pag outsource na, general idea is that they won't be able to enjoy the same set of benefits / privileges they enjoy now...

[Monseratto]

PALEA tries the old "blackmail you to get what I want".

http://newsinfo.inquirer.net/breakin...threat-wont-do

Palace to PAL workers: Strike threat won’t do
By Norman Bordadora
Philippine Daily Inquirer
First Posted 04:19:00 12/04/2010

MANILA, Philippines—The Philippine Airlines Employees Association better wait for the result of Malacañang’s review of the Department of Labor and Employment’s decision to uphold the validity of the PAL’s spin-off plans.

Deputy presidential spokesperson Abigail Valte made the remarks after the Palace reaction was sought on the reported plan of employees to hold a strike vote next week if Malacañang upholds the DOLE position.

“It would be best for them (Palea) to wait for the decision before making any prejudgments on the issue,” she added.

PAL management has said that the planned strike vote of its workers' union despite its pending appeal before the Office of the President is an arm-twisting tactic meant to pressure the President into deciding in their favor.

‘Blackmail’

“Palea was the one who decided to bring the spin-off issue on appeal to President Aquino,” the airline management said in a statement.

“Union officers and lawyers should—out of respect and legal courtesy—give the President a free hand to decide on the matter instead of issuing strike threats. To say that they will stage a strike if the President upholds the spinoff is tantamount to blackmail,” it added.

At the House of Representatives, Vanenzuela Representative Rex Gatchalian said the only way for smaller airlines to compete with big national and international airlines is through partial open skies policy being pushed by President Aquino.

Pocket ‘open skies’

Gatchalian has filed House Bill No. 1601 promoting a “pocket open skies policy” in the country.

In an interview, the lawmaker lamented that his colleagues, particularly members of the House transportation committee, had missed the point.

On Wednesday, the House transportation committee held a hearing in which some lawmakers expressed support for the Philippine Airlines’ (PAL) opposition to the open skies policy that the Aquino administration is pursuing in order to increase tourist arrivals.

PAL and House members at the hearing seemed lukewarm even to a partial open skies policy.

Their position was bolstered by an admission of an official of the Civil Aeronautics Board (CAB) that open skies would not ensure more passengers.

[Isuzoom]

not all palea member will join the strike... i have friends who will be retiring 4-5 years from now...why will we join the strike? paano ang separation and benefits?..sayang ang 20 years namin...

[wowiesy]

it's official... PALEA has filed notice of strike vote... abangan ang susunod na kabanata....

[SIZE="5"]PAL union to hold strike vote Dec. 7[/SIZE]


MANILA, Philippines—The Philippine Airlines Employees’ Association (Palea), the embattled ground crew union of Philippine Airlines (PAL), has delivered its notice of strike vote to the Department of Labor and Employment’s National Conciliation and Mediation Board (NCMB) this morning.

In a news release, Palea said the notice signals that it will hold a strike vote tomorrow, December 7, and expects to get the necessary majority support of its members.

Palea leaders delivered a notice of strike vote to the office of NCMB Executive Director Reynaldo Ubaldo at 8:30 a.m. with a copy furnished the Office of the Labor Secretary Rosalinda Baldoz at 8:55 a.m. This means that Palea can proceed with the strike vote from 9:00 a.m. to 12:00 midnight tomorrow.

“The strike vote is compliance with the requirements of the law. If management does not desist from harassing Palea members to avail of the separation offer which is tantamount to individual bargaining and therefore illegal then we will be forced to actually hold the strike,” warned Gerry Rivera, Palea president and vice chairman of the militant Partido ng Manggagawa (PM).

“Management continues to violate its own promise during the mediation last November 8 that PAL managers will refrain from discussing the issues with Palea members,” he said.

“We do make strike threats. We just do it when needed. That is why we are preparing the requirements for a strike which will happen at the appropriate time. A majority support of members assessed via a strike vote is necessary to hold a legal strike,” Rivera explained.

Palea explained that the strike vote does not constitute a transgression of the mediation efforts of the Office of the President (OP).

“We are not blackmailing Malacanang to favor our position but we are warning management for its illegal acts. It was Palea that asked for the intervention of President Benigno Aquino III into the PAL-Palea dispute and so it is illogical that we will sabotage it. The issue pending at the OP is separate though related to the case from which proceeds the strike vote,” Rivera explained further.

He clarified that the issue pending at the OP is PAL’s outsourcing plan which has been affirmed by Labor Secretary Baldoz while the strike vote arose from the complaint of individual bargaining by PAL management which constitutes unfair labor practice and union busting.

Rivera called on Palea members “to vote yes in the strike vote in order to defend our jobs and secure our future. Those who have their day off tomorrow should go to work to register their vote and express their sentiments.”

Some 3,700 Palea members from all PAL offices in Manila, the airports of Cebu and Davao, and even outlying stations in 14 cities nationwide will participate in the strike vote. Palea announced that everything is all set for the orderly conduct of the strike vote tomorrow.

I think PALEA is really gutsy on this issue... let's see ano resulta... pag natalo sila... mawalan sila ng credibility and the only recourse is to cry foul or cheating in the strike vote... which mahirap i-prove.. pero pag nanalo sila... it also says a lot...

[Monseratto]

What if Malacanang declares illegal ang magiging strike? Can PAL management consider those who join the strike resigned and no longer recognize PALEA like what happened to the pilots's union in 1998?

[wowiesy]

What if Malacanang declares illegal ang magiging strike? Can PAL management consider those who join the strike resigned and no longer recognize PALEA like what happened to the pilots's union in 1998?

in the first place, the declaration of the strike vote is a legal requirement... they have also filed a notice to strike (another legal requirement)... as far as i know yan ang mga requirements to do a strike.... may mga prescribed number of days in between the milestones... so maaaring doon ma technical pa... but assuming PALEA follows all the requirements stated by the law... i don't think Malacanang would have a basis to find it illegal...

another point is that, the finding of legality or illegality of the strike is in the hands of the NLRC, which eventually aakyat ng Supreme Court... so Malacanang (I think) could not do anything on this front... hanggang sa mediation sila and talks...


on the other issue naman na kung na consider as illegal yung strike, i think bago matanggal yung mga tao na nag strike may due process pa din... like a return to work order coming from the DOLE secretary ata... then kapag hindi pa rin nagpakita dun pa lang ma declare na terminated...

I think PALEA has also learned from the past lessons of strikers (be it within PAL or other big companies)... kailangan talaga sumunod sa requirements bago mag strike...


ang medyo nalilito ako is based on press releases.. parang paiba iba ang basis ng PALEA... nung una.. CBA deadlock (on the issue of retirement age, spin-off, financial package) kaya nag file ng notice of strike.... now, they are saying na ULP (unfair labor practice) since PAL management was dealing individually daw with PALEA members and not with the PALEA itself as the official bargaining unit... (di maiwasan na PALEA members inquire as to magkano matatanggap na package pag natanggal) ... PALEA is claiming na yung individual talks between PAL and PALEA member undermine the position of PALEA (which i think it does talaga) but masisisi mo ba management kung lumapit at mag inquire ang union member sa computation? hindi rin naman makakapag compute yung PALEA ng numbers since they don't have the data rin naman... natural sa management pupunta yung mga interesado malaman ang package...

*napalayo na ako sa topic ko*... ang hindi ako sure is... paiba iba ang basis ng PALEA sa bawat step... not sure if this is enough to declare it illegal... although kung lahat ng mga basis nya can be considered ULP, then I suppose okay lang since ULP is a valid basis for a strike...

[jimnyeatworld]

hayaan nyo na lang sila mag-relieve ng stress. pag nag-strike nila eh di nakuha nila gusto nila tapos tanggalin at palitan na sila lahat. to the traveling public tiisin nyo na muna yun hirap. konting tiis na lang at mapapalitan na ang mga tao na ang gusto lang ay kumabig ng kumabig at ayaw mag-adopt sa changing situation ng mundo

with PAL employees and NAIA customs officials being replaced, tomorrow will be a refreshing day. better service from new ones na hindi demanding

----

the teachings/message of today is very clear. you cannot do the same thing over and over and expect to be paid larger or to get more. survival says that you have to accept your loses and start learning a new skill to cope out with the changing times if not then be "eaten".

[wowiesy]

It's past 3pm na.. tapos na kaya ang botohan? ano na kaya resulta? hehe

[boybi]

Di ba hawak na ng DOLE ang kaso nila? And illegal na mag-strike ang PALEA kung ganun?

[wowiesy]

Di ba hawak na ng DOLE ang kaso nila? And illegal na mag-strike ang PALEA kung ganun?

I don't recall an AJ order (Assumption of Jurisdiction) coming from the DOLE or the Palace... all talks have been in the spirit of mediation...

involved talaga ang DOLE since nag file na nga ng notice to strike .. pag nag file ng ganyan.. automatic sa NCMB ang case sigurado... NCMB ang DOLE agency that would try to make the parties talk para di matuloy ang strike... kung di pa rin magkasundo... either mag AJ ang DOLE, or umabot sa strike..

carefull din DOLE or Malacanang na mag AJ since this is viewed as anti labor move... dahil napipigilan yung labor side to exercise their rights...

[boybi]

I don't recall an AJ order (Assumption of Jurisdiction) coming from the DOLE or the Palace... all talks have been in the spirit of mediation...

involved talaga ang DOLE since nag file na nga ng notice to strike .. pag nag file ng ganyan.. automatic sa NCMB ang case sigurado... NCMB ang DOLE agency that would try to make the parties talk para di matuloy ang strike... kung di pa rin magkasundo... either mag AJ ang DOLE, or umabot sa strike..

carefull din DOLE or Malacanang na mag AJ since this is viewed as anti labor move... dahil napipigilan yung labor side to exercise their rights...

Sa FASAP pala nag assume ng jurisdiction ang DOLE. Ibang kaso na naman itong sa PALEA.

[wowiesy]

[SIZE="5"]PALEA pushes thru with strike vote[/SIZE]


http://www.abs-cbnnews.com/business/...ru-strike-vote

MANILA, Philippines - Members of the ground crew union labor of local carrier Philippine Airlines went ahead and cast their votes on Tuesday to decide whether to proceed with a strike that threatens to paralyze operations or not.

The strike vote, which involves around 3,000 ground crew members of the Philippine Airlines Employees Association (PALEA), has pushed through despite legal issues earlier raised by airline management. Labor Secretary Rosalinda Baldoz herself had warned PALEA that a formal appeal is the proper legal move, not a strike vote.

Votes were cast in various PAL work sites--including Manila, Davao, Cebu, and 14 other cities--started around 9 a.m. The proceedings were expected to end by midnight or early morning Wednesday.

"The final tally of the strike vote is expected after midnight tonight since highly operational PAL work areas like the airport services department, airport ticketing office, in-flight catering department, and the Mactan airport in Cebu where bulk of PALEA members are situated will have their balloting till 12:00 midnight," PALEA said in a statement.

As of noon, voting was being conducted in an "orderly and peaceful fashion," ABS-CBN News reported.

Legal basis

PALEA president Gerry Rivera insisted that the holding of the strike vote does not violate any law since they are simply exercising their right to freedom of speech.

Rivera said that the union only wants to get the sentiments of its members and insisted that holding a strike vote is "a requirement of the law."

"The strike vote should not be a threat to anybody, not Malacanang, not even PAL. So we are wondering why is PAL management afraid of the strike vote. Don't they want to know the opinions of their employees? Maybe they are terrified that their lies and propaganda will be exposed by an overwhelming support for the strike," Rivera said in a statement on Tuesday.

He added that the PALEA is optimistic they will get an overwhelming "yes" votes to warrant the strike or work stoppage.

The PAL management has warned the union that holding the strike vote is illegal because the issues are already pending before the government.

PAL has filed for presidential intervention last November 12, its spokesperson said.

The PALEA, however, insisted that what's pending at the Office of the President is the airline's outsourcing plan while the strike vote stems from a separate case of union busting and individual bargaining management.

Jurisdiction

Valdoz said in an interview at ANC's Headstart that PALEA should have first filed the same notice of strike balloting before Malacañang.

"We are advising PALEA thru NCMB (National Conciliation and Mediation Board), before whom they filed a notice to conduct a strike balloting, that they should be able to file officially the same notice to Malacañang before which authority [on] their case is now pending," Valdoz said.

She added that the legal way to move forward in the case is by appeal.

"I think the matter of striking on the issue is not countenanced by law since this is already a jurisdiction case by the labor department and it's a matter of implementing the decision," she said.

Background

The current row between PAL management and the ground crew started in 2009 when management decided to outsource non-core operations to cut costs amid stiff industry competition.

On October, labor secretary Baldoz decided that outsourcing is a management prerogative but requried PAL to increase the separation package for the 2,600 employees who will lose their jobs to P2.5 billion from P2 billion.

PAL accepted the requirements but PALEA did not. Eventually, PALEA officers accused PAL management of harassing its members into accepting the generous separation package.

PAL denied this, explaining that it was the PALEA members who asked the Human Resources unit to start computing how much their separation packages are worth since the some PALEA members stand to receive up to P1 million each.

Malacañang, which earlier vowed not to get involved in the management-labor row at PAL, said that President Aquino and the airline management had "cordial meeting" last November to discuss the legal and economic reasons for the outsourcing move.

PALEA then filed another a strike notice at the NCMB and resumed regular street protests, eventually leading to Tuesday's strike vote.

PAL is controlled by tycoon Lucio Tan. It has been dislodged by Gokongwei-led budget carrier Cebu Pacific in the domestic airline market but it remains the largest Philippine airline operating overseas. -- reports from Alex Santos, ABS-CBN News and ANC

Based on the news report, lumalabas, ang basis ng PALEA to file notice of strike (NOS) and notice of strike vote is yung ULP (unfair labor practice) dahil individually lumalapit ang mga members para magpa compute kung magkano matatanggap...

on the labor front, kailangan magpakitang gilas ng PALEA (in the form of strike vote and notice of strike) sa mga constituents nila... but baka nga illegal sabi nga ng DOLE officer... gray area na siguro to.. and bago maging final and executory yung decision ng Supreme Court (kung umabot doon)... matagal na panahon na yun so calculated risk na siguro yun... yun nga lang.. kapag na declare na illegal sa lower courts.. tanggal agad yung tao kahit ma appeal pa sa higher court... backpay na lang hahabulin if ever pag nag decide na ultimately Supreme Court...

on the political front, the announcement of the strike will give pogi points to the party list na nakaupo na affiliated sa PALEA... so kailangan mag ingay para mag mukhang relevant pa yung organization nila at yung pinaglalaban nila...

it may also be a show of force... kung manalo ang YES sa strike vote... it shows they have the numbers... which may affect the decision of the Palace regarding the earlier decision ng DOLE na legal yung spin off... although dito mukhang mas concern ang Palace sa mas maraming travellers na maaapektuhan kung mag strike ang PALEA, vs sa mga 5,000 members daw ng union...