CA maintains decision to slash wage hikes for PAL flight attendants

MANILA, Philippines (Xinhua) - The Court of Appeals (CA) said today that it has maintained its earlier decision to reduce wage increases amounting to P220 million ($5.05 million) that the Labor department awarded to flight attendants of flag carrier Philippine Airlines (PAL).

CA denied the motion for reconsideration filed by Philippine Airlines-Flight Attendants and Stewards Association of the Philippines (FASAP) to reverse the court's June 2013 decision. The appellate court said FASAP failed to present "persuasive arguments " that would warrant the reversal of its ruling.

"We stand pat in our earlier finding that there was a grave abuse of discretion on the part of the Department of Labor and Employment (DOLE) when it awarded the $220 million ($5.05 million) economic package," the CA ruled.

In its June 2013 decision, the appellate court modified the December 2010 and April 2011 resolutions of the Labor department directing the country's flag carrier to implement P220 million ($5.05 million) in wage increases for its flight attendants and to fix their retirement age at 60.

PAL had only offered P80 million ($1.8 million) to settle the labor dispute in 2010.

In its 2013 ruling, the CA had directed PAL to set aside a lump sum of P100 million ($2.27 million) for FASAP members.

The CA also set a new retirement age scheme for PAL flight attendants.

Retirement age for FASAP members hired by PAL before November 22, 1996 was set at 55 years old for females and 60 years old for males. Female and male flight attendants hired after November 22, 1996 should both retire by the age of 45.

Those hired after November 22, 2000 and after November 22, 2007 are required in the CA ruling to retire by the age of 40.