PALEA FILES PETITION VS PAL'S OUTSOURCING PLAN AT COURT OF APPEALS
MANILA, AUGUST 30, 2011 (TRIBUNE) The Philippine Airlines Employees Association (Palea) filed last Friday a petition before the Court of Appeals (CA) questioning the national flag-carrier Philippine Airlines' outsourcing plan which will pave the way for the termination of 2,600 workers in September this year.
In a petition for certiorari, Palea asked the appellate court to stop the implementation of the outsourcing plan as the constitutional rights of the employees have been violated.
Palea also asked the CA to enjoin the PAL management from carrying out the plan. It said that the petition came after PAL's announcement that it had sent termination notices to employees which will take effect on Sept. 30.
For its part, PAL management said that on the first day of the spin off program, more than 700 or a third of total workers in the affected departments have received separation notices.
Implementation of the program is smooth, thus far, and the petition of the PAL Employees Association with the Court of Appeals cannot bar the implementation of a valid order from the Department of Labor and Employment and the Office of the President, PAL said in a statement.
PAL also sent notices to the regional offices of the Department of Labor and Employment (DoLE) in Manila and Cebu.
The petitioner argued that PAL management cannot prematurely implement the decision of the Office of the President since it is not final and executory.
PAL's spin-off/outsourcing program was first recognized as legal and valid by the acting DoLE Secretary Romeo Lagman on June 15, 2010, and was affirmed by DoLE Secretary Rosalinda Baldoz on Oct. 29, 2010.
Upon completion of the program, only 5,000 PAL employees will be left with the flag-carrier. It was gathered that PAL will spend about P2.5 billion for the severance package.
According to the DoLE's ruling, PAL workers affected by the spin-off will obtain separation pay equivalent to 125 percent of their monthly basic salary for every year of service.
They will also receive the following: P50,000 gratuity pay; 100 percent commutable-to-cash vacation and sick leaves; and trip pass (travel) benefits.
DoLE's decision was upheld but slightly modified by increasing the gratuity pay by another P50,000 per worker. PNA
The PAL management is also offering a one-year extension of medical and hospitalization benefits and guaranteed pay for one year of whatever salary is granted to those who choose to be employed by PAL's service providers. PNA
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Chief News Editor: Sol Jose Vanzi
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