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PAL to axe 2,600 employees after Palace decision

By MARK JOSEPH UBALDE
THE mass termination of some 2,600 employees of the country’s flag carrier is at hand after the Palace upheld the ruling of the Labor department allowing Philippine Airlines (PAL) to outsource its inflight catering, airport services, and call center reservation operations.

By verafiles

Mar 27, 2011

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By MARK JOSEPH UBALDE, InterAksyon.com

THE mass termination of some 2,600 employees of the country’s flag carrier is at hand after the Palace upheld the ruling of the Labor department allowing Philippine Airlines (PAL) to outsource its inflight catering, airport services, and call center reservation operations.

PAL President Jaime Bautista told InterAksyon.com that the outsourcing of PAL’s three departments is already on its way.

“Yes it’s imminent,” Bautista said, replying to the question on whether the management would terminate the 2,600 employees. “But what will happen is that they (PAL workers) will have an option to work with the new service provider.”

According to Bautista, PAL has already selected the companies that will outsource their services for the three departments. For the catering, PAL had tapped Sky Kitchen; for the ground handling, Sky Logistics will take over; and for their call center, they have asked SPI Corp. to take over the operations.

Earlier,  Executive Secretary Pacquito Ochoa Jr. signed a 16-page decision affirming the October 29 ruling of Labor Secretary Rosalinda Baldoz. The decision will  effectively allowed PAL to layoff some 2,600 employees, a Palace source said.

The same ruling increases the gratuity that will be received by members of PAL Employees Association from P50,000 to P100,000.

Baldoz previously gave PAL the go-signal for the mass layoff provided that the employees receive an additional gratuity of P50,000 and 125 percent separation pay instead of 100 percent.

Copies of the order were sent to the PAL management, PAL Employees Association (PALEA), and to the Labor department Friday afternoon.

Bautista said they have yet to receive the copy of Malacanang’s decision.

Pushed to the wall

While the group has also yet to receive a copy of the decision, the PALEA is already gearing up to challenge the decision.

“We will appeal this to the Court of Appeals,” said Gina Lynn Licayan, PALEA board member.

Licayan, who is from one of the departments that will be outsourced by PAL, said the recent actions of the flag carrier has “pushed them to the wall.” She also assailed the comments that their protests are insensitive to the needs of the public.

Hindi kami insensitive. Ang gobyerno papayag ba na sa sarili nilang bakuran may unemployed? Kung kami tatanungin ayaw namin ng strike. Ginigipit kami, kaya dun na talaga ang punta (We are not insensitive. Will the government allow many unemployed people in its own backyard? If they were to ask us, we don’t want a strike. We are being pushed to the wall, that’s why we have no other recourse but to protest.),” said Licayan.

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