PAL submits FASAP case for arbitration
05-Oct-2010 Failing to amicably resolve its differences with its cabin crew union, the management of Philippine Airlines (PAL) today (05 October 2010) said it would submit the case for arbitration to the office of the secretary of the Department of Labor and Employment (DOLE).
PAL spokesperson Cielo Villaluna said FASAP flatly rejected PAL's proposal to increase salaries and rice allowances by P105-million, expanded pregnancy-related benefits and increased retirement age to 45 years old.
"With no agreement reached during today's conciliation meeting, PAL manifested willingness to submit the case for arbitration. This will enable parties to submit their respective positions to the labor secretary who will then decide the case on the merits," Villaluna explained.
FASAP posed no objection to PAL's manifestation but both parties agreed that any intervention by the labor secretary would be "through an assumption of jurisdiction." With an assumption order, parties are enjoined from performing any act that will exacerbate the situation such as a strike or lockout.
Issues for arbitration include the economic package, retirement age (anchored on mixed-crew complement) and pregnancy-related issues.
Villaluna said any work stoppage aimed at paralyzing PAL's operations will have negative effects not just on the airline's finances but also on the country's domestic and international trade and tourism image.
PAL has been preparing contingency measures to cope with the effects of any possible labor strike.
"FASAP's insistence on its original demands and continued refusal to present any counter-offer to PAL's proposals prevented the talks from proceeding," said Villaluna.
"It's give and take in any negotiation. It's very difficult to negotiate if the other party only wants things to go their way," she stressed.
She said PAL's P105-million offer should be viewed in the context of the company's huge financial losses in the last two years. PAL even agreed to increase the retirement age to 45 in exchange for allowing junior cabin crew to fly international together with their senior counterparts.
"Management has bent backwards to give part of FASAP's demands but they want nothing short of their original demands," added Villaluna.
Earlier, Secretary Baldoz declared that she would step in to avert FASAP's work stoppage. The labor secretary stressed that PAL's operations are imbued with national interest, hence the need to intervene in the dispute.