Aquino says he will review PAL outsourcing program

PRESIDENT-ELECT Benigno Aquino III on Sunday vowed to “ascertain the facts” and review the Labor Department’s order approving the planned outsourcing of some 2,600 jobs of the money-losing Philippine Airlines, the first major labor case to test the incoming administration.

Acting Labor Secretary Romeo Lagman last week approved the Lucio Tan carrier’s application after several hearings to outsource the airline’s flight catering, call center reservations and cargo-handling services.

“[I am] having the facts ascertained, waiting for report,” Aquino said in a brief reply to a Manila Standard question.

The incoming president’s position was echoed by his spokesman, Edwin Lacierda, who said the Aquino administration would have to “review the situation and the case.”

According to government sources, Lagman had to issue the decision as Labor Secretary Marianito Roque was in Geneva for two weeks attending a conference of the International Labor Organization.

The PAL Employees Association denounced the “midnight decision,” and promised to hold a rally at the Times Street residence of Aquino on Wednesday and before the Labor Department on Tuesday.

Originally scheduled to take effect on May 31, the outsourcing is the second stage of the airline’s plan to restructure itself, starting with the spinning off of its maintenance and engineering departments to a joint venture with Lufthansa Technic.

Before being temporarily stopped by the Labor Department, Philippine Airlines had already awarded the contract for its call-center operations to ePLDT Ventus and chosen SkyKitchen Philippines, the Cebu-based catering venture of Manuel Osmeña, to provide in-flight meals.

As well, the airline had already named Sky Logistics to handle ground and cargo-handling services.

The airline expects to save up to $1 billion in operating costs if it could successfully trim its workforce to about 4,000 by the end of the year from 7,000 now. On the other hand, Asia’s oldest airline expects to shell out P2.5 billion in separation benefits, which is calculated at one month’s salary for every year of service. –Christine F. Herrera and Jeremiah F. de Guzman, Manila Standard Today