MASSIVE LAYOFFS BEGIN AT PAL NEXT MONTH / ANOTHER 2,600 JOBLESS PINOYS!
MANILA, AUGUST 27, 2011 (STANDARD) by Vito Barcelo - Some 2,600 workers in the airline's catering, airport services and call center operations get the pink slip
PHILIPPINE Airlines said Thursday it had sent termination notices to about 2,600 workers as it started outsourcing jobs such as catering amid losses.
Airline president Jaime Bautista said the workers in catering, airport services and call center units would be laid off by Sept. 30 but could be employed by the companies that the carrier had contracted to provide those services.
Those who would accept the offer by Sept. 9 could start work on Oct. 1, he said, adding 400 had so far signified their willingness to accept the offer.
A union of airline employees has rejected the plan and said it will exhaust all remedies, including seeking a court resolution.
The airline is to spend about P2.5 billion for the employees' severance package.
"The spin off/outsourcing is a painful but necessary decision to ensure PAL's viability and long term survival," Bautista said.
"We assure the affected workers that they will all receive their separation pay and other benefits that are at par, if not better than, industry standards. Guaranteed employment also awaits them at our third-party service providers."
The airline said it had started town hall-style meetings to answer workers' questions about its outsourcing program.
Gerardo Rivera, president of the Philippine Airlines Employees Association, slammed their termination.
"We have sacrificed our collective bargaining rights since 1998, so it is unjust for PAL to reward us with retrenchment for it," Rivera said.
"We appeal to management to craft a business model that does not include outsourcing jobs."
Rivera said he believed the airline would include other ground employees doing administrative work in the retrenchment.
"I don't believe that they are only after the 2,600 employees," he said.
"Our sources say the management is looking at getting rid of all its ground employees."
The airline started implementing its outsourcing plan after the Office of the President upheld its prerogative to spin of its non-core units on Aug. 11.
Acting Labor Secretary Romeo Lagman first recognized the validity of the airline's outsourcing plan on June 15, 2010. Labor Secretary Rosalinda Baldoz then affirmed it on Oct. 29 of the same year. With Jeremiah F. de Guzman and AP
FROM SUNSTAR ONLINE
Over 300 PAL workers in Cebu, Davao to lose jobs | More | By Virgil B. Lopez Thursday, August 18, 2011
MANILA -- At least 320 employees of Philippine Airlines (PAL) in Cebu and Davao are set to lose their jobs after Malacañang denied anew the workers' union appeal to stop the flag-carrier's outsourcing program.
Representatives from the PAL Employees Association (Palea) told Sun.Star on Thursday that of the 2,600 employees eyed for retrenchment, 250 are from Cebu while 70 are from Davao.
Malacanang's adverse decision will also affect 25 workers in Cagayan de Oro City, 20 in Zamboanga City, nine each in Dipolog and Cotabato cities, 15 in General Santos City, and 11 in Butuan City, Palea-Mindanao board member Eugene Cosare said.
Tex Bulambot, Palea Cebu-Visayas Station board member, expressed dismay over the Palace's move to side with their employer on the issue, calling it the "worst case of unfair labor practice."
"Palea is determined to fight this anti-labor policy of President Benigno Aquino III to the highest court of the land and if the Supreme Court will uphold our constitutional right to security of tenure, we will file an impeachment case against him for failing to protect our right," he said.
In a two-page resolution obtained by Sun.Star, the Office of the President denied the motion for reconsideration of Palea last August 11, paving the way for most union members to be contractual workers in third-party service providers soon.
"The points raised by petitioner in its motion for reconsideration are a mere rehash of those considered, discussed and ruled upon by the Secretary of Labor in her order dated 29 October 2010 and affirmed in our decision dated 25 March 2011," Executive Secretary Paquito Ochoa Jr. said.
Among others, Palea said in its appeal that the impending closure of the airline's in-flight catering, airport and reservations services is equivalent to union busting.
It also scored PAL for violating a provision of the collective bargaining agreement barring the outsourcing of services performed by regular workers.
But as of this posting time Thursday, presidential spokesperson Edwin Lacierda said they are still checking the veracity of the decision.
"Usec (Abigail) Valte was calling the Office of the Executive Secretary (OES) but she failed to get a response. Let me get a confirmation," Lacierda told reporters.
Battle shifts to Court of Appeals
Meantime, Palea said it is already preparing to appeal the decision at the Court of Appeals.
"With the OP decision permitting PAL to retrench thousands of workers despite billions in profit, PNoy (President Benigno Aquino III) has unveiled his fire-all-you-can policy," Palea president Gerry Rivera said.
The Palace, on the other hand, declined to comment on the union's planned legal action as it waited for the official copy to be furnished by Ochoa's office.
Under the Palace-formulated early retirement package, the workers are set to receive between P500,000 and over P1 million, depending on the length of service.
Non-monetary benefits such as free tickets, automatic one-year employment in the service provider, and medical insurance were also guaranteed.
For its part, PAL said it would invite leaders of the Palea for a dialogue to discuss the smooth and orderly implementation of the spin off program.
No specific date has yet been announced as to when the outsourcing program will be implemented.
Airline spokesperson Cielo Villaluna said the PAL management also plans to hold town hall meetings in the affected departments to discuss the mechanics of the spin off.
Primers will also be distributed to guide workers on how to avail of their retirement benefits and gratuity pay which will be processed on a "first come, first serve" basis.
Contrary to past pronouncements by the union leaders, Villaluna said several workers of the affected units have already expressed interest to avail of the package.
The service providers, meanwhile, "await the smooth transition of operations," she said.
Sky Kitchen, owned by Cebuano businessman Manny Osmeña, will take over the catering department of PAL while Manny Pangilinan-led SPi Global Inc. will serve PAL's call center operations.
Skylogistics, also managed by Osmeña, will capture PAL's ground and passenger handling.
To drum up more public support, the union has announced a protest action on the afternoon of August 22 to protest the Palace decision and highlight the campaign against contractualization.
The motorcade will start at the Philippine Economic Zone Authority (Peza) office in Buendia corner Roxas Boulevard and then proceed to Ayala Avenue in Makati.
Protests
Simultaneous protests will also be held in Cebu and Davao.
"We will sympathize on what Manila would be doing," Cosare said.
PAL had said that the company's P15-billion losses in 2008 and 2009 necessitated the restructuring program, which includes cutting down on manpower costs.
On Wednesday, the Lucio Tan-led airline reported a net loss of $10.6 million for the first quarter (April to June) of its current fiscal year compared to a $31.6 million it raked in for the same period in 2010.
The flag carrier attributed the slide to modest revenue growth, eroded by significant increases in fuel prices and other factors like political turmoil in the Middle East and North Africa and natural calamities in Japan. (With Jill Beltran/Sunnex)
FROM A BLOGGER
[CLICK LOGO TO VISIT WEBBLOG]
Another Jobless Filipinos - NOYNOY THINKS IT IS GOOD! WHAT ABOUT YOU?
PAL (Philippine Airlines) plans to lay off its 2,600 ground workers on September. This movement will ensure the viability and long-term survival of the company.
Survival of the company? Good!
Another 2,600 Jobless Filipinos? Its up to you to decide. Noynoy thinks its good!
The 2,600 employees was offered the same work at the same company, with a new contract.
A contract which you will earn a minimum of P400 pesos a day and what benefits?
They were offered the same job. But as a contractual employee's.
Do all of you knows what a contractual employees feels like?
Its a non secured job.
With low salary.
No Benefits?
What else?
Can you help me describe what a contractual employee is?
I wonder what you are thinking.
This decision was Approved by The President of the Philippines.
Thanks Noynoy!
For your usual support to the OLIGARCHY of the Philippines.
May you and your fellow OLIGARCHIES gain more wealth and go to hell.
Kayo ang Boss ko?
Sino ang mga mamayan?
O ang mga OLIGARCHY ng Pilipinas.
MSNBC NEWS
Airline president Jaime Bautista said the workers were told their jobs would officially cease on September 30, in a move that that will see the carrier save up to 15 million dollars in annual operating costs.
"The spinoff/outsourcing is a painful but necessary decision to ensure PAL's viability and long-term survival," Bautista said in a statement.
"We assure affected workers that they will all receive their separation pay and other benefits that are at par, if not better, than industry standards."
The mass termination was backed by President Benigno Aquino earlier this year, and gives PAL a free hand to contract out its in-flight catering, airport services and call centre reservations to other companies, to cut costs.
PAL, Asia's oldest airline, said early this month it suffered a net loss of $10.6 million for the three months to June.
The airline had posted a $31.6 million profit in the same period last year, on the way to $72.5 million profit in the 12 months to March, which was a turnaround from a $14.4 million loss in the previous fiscal year.
Bautista said the firm would spend 2.5 billion pesos (59.5 million dollars) on the severance package for the affected workers and a one-year extension of medical benefits.
The outsourcing programme was the main component of PAL's survival blueprint which was launched last year after the airline incurred losses of 312 million dollars in the 2008-2009 fiscal year.
PAL blamed unstable fuel prices, the devastating tsunami in Japan and conflicts in key markets in the Middle East and North Africa as factors that led to the poor fiscal showing.
It said it also continues to suffer from being blacklisted by the European Union over safety concerns and because of stiff competition.
Bautista said the sacked workers were guaranteed contractual jobs at any of the new service providers. But the workers said this went against fair labour practices.
"The presumption is that when you accept the offer to work with the third-party provider, you start from the bottom, with no security of tenure and a salary that will not give you a good quality of life," union leader Gerry Rivera told AFP.
PAL Employees Association (PALEA) will seek an injunction against the management's decision from the courts on Friday, he said.
"And if PAL forces the issue, we will meet them with resistance. We will have no other recourse but to fight back and paralyse its operations," he added.
The planned union strike would be the latest labour-related setback for PAL, which was founded in 1941.
It is also locked in a dispute with its 1,600 ground crew, who are demanding higher wages and a lifting of a company policy that forces female attendants to retire at 40.
Last year, 25 pilots and first officers on the airline's short-haul aircraft quite for higher paying jobs abroad, forcing cancellation of flights.
Source: MSN News
http://news.ph.msn.com/regional/article.aspx?cp-documentid=5198409
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