DOLE optimistic Noy can settle PAL labor row

MANILA, Philippines –  A ranking labor official has expressed optimism that intervention by President Aquino in the dispute between the management and the employees’ union of Philippine Airlines (PAL) would pave the way for a negotiated settlement.

Labor Undersecretary Hans Leo Cacdac said at the weekly Kapihan Sa Sulo hotel forum that President Aquino’s meeting at Malacañang with officials of PAL and the Philippine Airlines Employees’ Association (PALEA) would push through tomorrow.

Cacdac also said Labor Secretary Rosalinda Baldoz made the decision to allow the outsourcing of three departments affected by corporate restructuring because national interest was at stake.

Jose Gabriel Olivarez, PAL executive vice president, said at the forum that DOLE’s decision dated June 15, 2010 was “anchored on valid and compelling grounds.”

He said the partial closure of three departments and the resulting retrenchments constitute “valid exercise of management prerogative.” 

He also described PAL’s move as “grounded on valid and lawful cause, it being an obvious effort to prevent continued heavy and substantial losses.”

At least 2,600 employees lost their jobs as a result of the corporate move.

“It has been held that the law recognizes the right of every business entity to reduce its workforce if the same is made necessary by compelling economic factors which would endanger its existence or stability,” DOLE said in its decision.

Cacdac stressed, however, that “the areas of outsourcing of services should be limited to this case alone because high national interest is stake.” 

He said the DOLE decision was based on the collective bargaining agreement (CBA) between PAL management and employees. He said that in the CBA, it is the prerogative of management to undertake corporate restructuring provided the rights and benefits of the workers are respected.

PALEA board member Alfredo Ramisco said they have decided to hold off appealing Baldoz’s order in deference to Mr. Aquino’s invitation.

He said they are ready to take the matter to the Court of Appeals if no compromise is reached after their meeting with Mr. Aquino.