PAL slates financial management seminars for workers affected by spin-off

MANILA, Philippines - The management of Philippine Airlines (PAL) will organize financial management seminars for workers affected by the spin-off of the company’s three non-core units, namely airport services, inflight catering, and call center reservations.

PAL president Jaime Bautista said the seminars aim to help workers properly manage and invest their separation benefits. The flag carrier has lined up a series of seminars to be conducted by financial experts to guide workers in managing their finances and encourage them to engage in other sources of livelihood to boost their income.

“The separation packages our workers are guaranteed to receive must be handled judiciously to sustain them financially in the long-term. The financial experts’ assistance is most timely to guide our workers during this transition period,” Bautista said.

In the meantime, Bautista said he continues to hold town hall meetings to discuss with affected workers the mechanics of the spin-off program as well as the procedures on how to avail of their retirement benefits and gratuity pay. This is part of the continuing dialogue between management and workers to facilitate the smooth and orderly implementation of the spin-off/outsourcing.

Bautista reiterated that PAL management has to adopt the restructuring plan to save the airline and ensure the continuous employment of its remaining 5,000 employees. “The spin-off is meant to ensure the survival of our 70-year-old institution.”

He cited the case of Japan Airlines, one of the world’s largest carriers, which filed for bankruptcy protection in 2010, prompting the Tokyo government to infuse fresh funds into the state-backed carrier.

“PAL’s financial difficulties is not an isolated case,” he said. “Other airlines worldwide are reeling from the adverse impact of high fuel prices, global recession and intense competition.”

He explained that workers who have received the P100,000 gratuity pay or part of such cash benefit would not be required to return the amount “in lump sum” should the Court of Appeals (CA) stop the implementation of the spin-off/outsourcing. The amount would be deducted monthly from their salaries.

“PAL will proceed with the spin off/outsourcing as scheduled, but will respect the appellate court if ever it issues a restraining order,” Bautista assured the workers.

PAL has allocated about P2.5 billion in severance benefits for the workers of in-flight catering, ground-handling and call-center reservations.