Friday, August 26, 2011

Embattled PAL workers given 1-month ultimatum

MANILA -- Beleaguered employees of Philippine Airlines (PAL) will only have until September 30 to stay on their posts, a company official said Thursday.
Separation letters were already sent to the 2,600 workers from the airline’s catering, airport services and call center reservation units as part of the MalacaƱang-backed outsourcing plan, PAL president and chief operating officer Jaime Bautista said.
Those who signified intention to join the service providers after the prescribed September 9 deadline will start official duty the next day, October 1.
Under the spinoff plan, Sky Kitchen will take over the catering department of PAL while Skylogistics will capture the 70-year-old airline's ground and passenger handling.
SPi Global, managed by telecommunications mogul Manny Pangilinan, will handle the call center reservations department.
Bautista said the airline also sent notices to the regional offices of the Department of Labor and Employment (Dole) in Manila and Cebu as the PAL Employees Association (Palea) promised to challenge the massive layoff program on Friday before the Court of Appeals.
“The spin off/outsourcing is a painful but necessary decision to ensure PAL’s viability and long term survival. We assure affected workers that they will all receive their separation pay and other benefits,” Bautista told reporters.
PAL will spend about P2.5 billion for the severance package which includes separation and gratuity pay, trip pass benefits, and one-year extension of medical and hospitalization benefits, among others.
The Lucio Tan-led airline had said that the company’s P15-billion losses in 2008 and 2009 necessitated the restructure program, which includes cutting down on manpower costs. (Virgil Lopez/Sunnex)

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