Arroyo warned of labor unrest over Piatco deal

President Arroyo may have to intervene in the PIATCO controversy to head off the planned mass actions and labor strikes by aviation workers, trade unions and people’s organizations, and avert the further decline in tourism and investors’ confidence in the country’s economy.

In a letter to the President, leaders of these groups said all the gains of the administration in labor relations, tourism and efficient operations of public utilities would become meaningless when the issue escalates into a national problem.

"Aviation workers, trade unions and labor organizations will mount a sustained campaign against the opening of the new international airport terminal this year which could create unrest in the aviation industry," they stressed.

They said the unrest could adversely affect inbound tourism, which is sensitive to any kind of trouble. "Airport operations, a vital component of the industry, must be freed from any sign of trouble lest it affects incoming cargo and tourist arrival."

They said Transportation and Communications Secretary Pantaleon Alvarez, who has jurisdiction over the issue, "cannot find the solutions because he is part of the problem."

"In fact, he (Alvarez) is your ‘weakest link’ to the two previous administrations (Ramos and Estrada) that concluded the lopsided PIATCO (Philippine International Air Terminal Co.) deal. Alvarez was present at the creation of the deal," they said.

They said Alvarez has become a liability to the Arroyo administration for his failure to assuage the growing anger of the public he is supposed to serve. Instead of calling for a review of the deal, Alvarez has chosen to uphold it since he has allegedly a vested interest in the project. Wintrack Builders, Inc., a company formerly owned by Alvarez, won multi-million peso contracts to clear subterranean structures and the grounds in the project site, according to a charge sheet filed against Alvarez before the Ombudsman.

The groups said the government-PIATCO deal for the construction of the Ninoy Aquino International Airport (NAIA) Terminal 3 will result in the dislocation of some 10,000 airport workers because the new operator would not hire those currently employed at the Terminals 1 and 2.

"The companies currently operating at the Terminals 1 and 2, which have been in the business for the last five to 10 years, will just have to fold up when PIATCO’s partner, contractor (Philippine Airport and Ground Services) starts to operate since it will be hiring its own sub-contractors," they pointed out.

The groups also said the PIATCO deal stifles the expansion and development of Central Luzon as an international airport hub since it limits passenger arrivals to 850,000 annually.

They asked the President to scrap the deal.