PAL confirms meet, awaits palace action
12-Nov-2010 Philippine Airlines (PAL) confirmed today (November 12, 2010) that top airline executives sat down with President Benigno Simeon Aquino III and Executive Secretary Paquito Ochoa last Tuesday to discuss the planned spin off and its effects on some 2,600 workers.
PAL president and COO Jaime J. Bautista said the meeting was brief but cordial. "The President spoke his mind about the PAL spin off and asked many questions on how best to strike a balance between the concerns of workers and management," he said.
As to the reported Palace 'intervention' in the PAL-PALEA dispute, Bautista said he has not received any call or official communication from the Palace regarding the scope, nature and effects of such intervention.
"Apparently, Malacanang is waiting for the official communication from PALEA. As far as PAL is concerned, we're also waiting for PALEA's action on whether it will challenge the DOLE decision before the Court of Appeals or the Office of the President," he said.
Bautista maintained that the spin-off is based on solid legal grounds. "The DOLE upheld PAL's position not only once but twice," he said.
He said he explained to Pres. Aqunio and Sec. Ochoa why the spin off and corporate restructuring was necessary, particularly the massive US $312-million losses that the flag carrier suffered in the last two years.
"We told the President that PAL is exercising its legal right and prerogative to restructure its organization and sell some operating units in accordance with provisions of the Labor Code and existing jurisprudence," he said.
He stressed that the spin off is not even designed for profit but just to ensure survival. "We are retiring 2,600 workers in order to save the jobs of the other 4,000 that will remain in PAL and to ensure continuing service to the nation and PAL's 10-million passengers," he stressed.
Bautista also assured Malacanang that all affected PAL workers will receive separation pay equivalent to three times than those provided by the Labor Code and 25 percent more than the current PAL-PALEA Collective Bargaining Agreement (CBA) as well as a generous set of separation benefits. They will also be hired by the third party service providers of PAL.
He said the President and Sec. Ochoa both recognize that the Department of Labor and Employment (DOLE) has twice upheld the validity and legal grounds for the spin-off. "He (the President) was also aware that PALEA is poised to question the said DOLE ruling before the Court of Appeals which could limit Malacanang's intervention options," said Bautista.