PAL accepts DoLE ruling; spin-off to cost P2.5 billion
11/04/2010Philippines Airlines (PAL) yesterday said it expects to be hit with a bill of P2.5 billion in severance payments to staff when it farms out ground crew work.
The flag carrier wants to outsource its in-flight catering, airport services, and call-center reservations divisions, at the cost of 2,600 jobs, in a bid to reduce its long-terms costs.
But the Department of Labor and Employment (DoLE) has ruled that PAL must guarantee the staff being laid off will get a fair package while also making sure they will be absorbed by which ever company takes over.
PAL president and chief executive officer Jaime Bautista, at a media briefing, said it would take out loans to meet the P2.5-billion enhanced severance packages which were approved by the government..... MORE
Source: The Daily Tribune
URL: http://www.tribuneonline.org/headlines/20101104hed4.html
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