DOLE approves layoff of 2,600 PAL employees

MANILA, Philippines - The Department of Labor and Employment (DOLE) has given the go signal for the planned termination of 2,600 emplo­yees of the Philippines Airlines (PAL).

Labor Secretary Rosalinda Baldoz, in a decision issued Friday, affirmed a previous ruling of acting labor secretary Romeo Lagman.

“We find the outsourcing of services and closure of the inflight catering, airport services, and call center reservation operations in Philippine Airlines to be a just, reasonable, humane, and lawful exercise of its management prerogative to reorganize the corporate structure for purposes of viability of its operations, subject to entitlement,” Baldoz said.

But unlike Lagman, Baldoz provided for an additional gratuity of P50,000 per employee and 125 percent separation pay instead of 100 percent. Other entitlements include allowing vacation leave and sick leave balances to be convertible to cash, and the employees’ absorption to the respective service providers for one year, among others.

PAL Employees Association (PALEA) president Gerry Rivera said their members were very disappointed although he said a ruling favorable to PAL was expected.

“The ruling did not come as a surprise because DOLE as in their past rulings had not reverse a previous decision. This is just an affirmation of how badly our government is treating the workers,” Rivera said in an interview.

He said that “except for very minor changes, there is really nothing new about the decision. It would still pave the way for contractualization at the country’s flag carrier and result in the termination of 3,700 PAL employees.”

Lagman previously ruled as legal the planned mass termination of PAL employees, but the union filed a motion for reconsideration before the DOLE Office of the Secretary.

DOLE has also issued an assumption of jurisdiction over the labor dispute, thus preventing PAL members from staging a strike.

“We really do not expect reversal of the ruling, but we just have to follow the procedure. So now we are going to another avenue and file a petition before the Court of Appeals (CA),” Rivera noted.

According to Rivera, PALEA cannot understand where DOLE based its decision because it ignored the union’s argument that outsourcing of workers is illegal.   

However, Rivera said PALEA’s legal team has long been preparing for the filing of a motion for reconsideration before the CA and up to the Supreme Court.