After its CBA Was Suspended for 11 Years, Philippine Airlines Employees Face Lay-offs, Contractualization Published on July 17, 2010

After its CBA Was Suspended for 11 Years, Philippine Airlines Employees Face Lay-offs, Contractualization

Published on July 17, 2010

By MARYA SALAMAT
Bulatlat.com

About 3,000 employees of the flag carrier Philippine Airlines (PAL) are in tenterhooks today over threats to their regular jobs and union. This week they expect to get a sample of what President Aquino said would be his “litmus test in labor relations.”

The workers’ fear of losing their regular jobs and union stems from PAL’s plan to “spin-off” three “non-core businesses.” It has been trying to implement it since May 31. The employees who stand to be affected comprise nearly half of the total 7,192 workforce including some foreign-based expat Filipino employees of PAL. It would also rout the membership of PALEA, the rank-and-file employees’ union which, after PAL’s early retirement drive in 2009, has been reduced to 3,732.

Up for “spin-off” are PAL’s airport services department with about 2,000 workers (covering ground handling, cargo terminal/handling and ramp handling), inflight catering services with about 1,000 employees and call center reservations which has 172 currently employed, said Gina Licayan, union board member. They have been working with PAL from seven to more than 30 years now.

L-R: Danilo Palomena, Rigmo Ondevilla and Gina Licayan have been working with PAL from 7 to more than 30 years now. (Photo by Marya Salamat / bulatlat.com)

The spin-off means a sale of the businesses and transfer to third-party providers of said services. According to PAL employees, the third party providers about to takeover these “non-core businesses” do not have employees of their own and expect only to get the current employees thrown into the bargain to keep working and avoid disrupting PAL’s services.
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Source:  The Daily Tribune
URL: http://www.bulatlat.com/main/2010/07/17/after-its-cba-was-suspended-for-11-years-philippine-airlines-employees-face-lay-offs-contractualization/