PAL stands firm on spin-off issue

MANILA, Philippines – Philippine Airlines (PAL) maintained its position yesterday that a new collective bargaining agreement (CBA) with its ground union should not include discussions on the ‘spin-off’ issue as the same has been upheld as a legal and valid exercise of management prerogative.

Appearing before the National Labor Relations Commission (NLRC), PAL president and COO Jaime J. Bautista reiterated the flag carrier’s position that the spin-off plan involving PAL’s catering, call center reservations and groundhandling departments “is firm, non-negotiable and therefore cannot be part of a new CBA that the union wants.”

“The Department of Labor and Employment (DOLE) during the time of President (Gloria Macapagal) Arroyo and even President (Benigno Simeon) Aquino recognized PAL management’s right to restructure its operations to ensure long term survival and save jobs,” Bautista stressed.

He explained that while the ‘spin-off’ will result in the early retirement of

some 2,600 PAL ground workers, these employees will be absorbed/hired by third party service providers. “No man will be left behind. Those who are willing to work for the service providers have secure jobs waiting for them, while the remaining 5,000 workers of PAL will have a better chance of keeping their jobs in the leaner but meaner airline,” Bautista said. 

He also belied claims by the union that management refuses to convene negotiations for a new CBA as claimed by leaders of the PAL Employees Association (PALEA).

He said PAL submitted its counter proposal to the collective bargaining agreement last March 28 at the National Conciliation and Mediation Board (NCMB). “This is the best proof that PAL is willing to negotiate with its union,” he stressed.

He added that it will be absurd for PAL management to agree to include the ‘spin-off’ issue in the CBA negotiations when it has already secured the green light from DOLE and Malacañang to proceed with the same.