PAL asks DOLE to rule on legality of labor outsourcing scheme

Philippine Airlines (PAL) has asked government to rule on an appeal filed by workers who are contesting the company’s plan to outsource 2,600 jobs.

This was announced by PAL president Jaime Bautista early evening of Thursday, four hours after it met with government mediators and representatives of the PAL Employees Association (PALEA) at the National Mediation and Conciliation Board (NCMB) office in Manila.

“We have asked the [Department of Labor and Employment] to decide on the merits of the case,” Bautista told reporters. “We are requesting that they make a decision based on submitted documents.”

His sentiment was indicated in the minutes of the said meeting distributed to members of the media.

“Management…shall await the resolution of the Motion for Reconsideration, without prejudice to further consultation should any significant development arises or [an] offer from the union is communicated to management,” the minutes said.

Last June 15, then-DOLE officer-in-charge Romeo Lagman ruled that the company’s outsourcing plans was legal.

The “intended closure” of Philippine Airlines’ airport services, in-flight catering, and call center reservation operations, the “employment severance” of its workers, and “the contracting out of these operations to the named service providers are based on lawful ground,” the DOLE said.

Rank and file employees in airport services are estimated at 2,000 while those working in inflight catering and call center operations are around 300 each.

The decision was later appealed by PALEA members, saying, among others, that outsourcing runs contrary to the 1995-2000 collective bargaining agreement (CBA) between PAL and PALEA.

The matter is pending at the DOLE.

For its part, PALEA president Gerardo Rivera said that his group is mystified as to why PAL intends to “rush” the Labor Department into making a decision.

But at the same time, if PALEA receives an adverse decision, it will “elevate the case to a higher judicial body,” Rivera told GMANews.TV in a phone interview.

Although PALEA officials have raised the possibility of a strike on Thursday, they said they were still willing to talk with airline executives as long as “irritants” such as outsourcing would not be discussed.

“Our position is that if we again undertake another round of talks, irritants such as the notice of termination should be taken out,” Rivera told reporters separately in Manila.

“The union prefers that conciliation meetings be held further on the matter and the decision to issue be held in abeyance pending talks between PAL and PALEA,” the union said in the meeting’s minutes.

“It further manifests that PAL is in the better position to offer by scrapping the termination of the +/- 2,600 employees,” the union further said.

On April 16, 2010, Philippine Airlines issued a notice of termination to its 2,600 workers, effective May 31, 2010.

The termination notice was part of the company’s plans to proceed with its outsourcing program, which intends to lower labor costs.

Ten days later, the Department of Labor and Employment (DOLE) assumed jurisdiction over the dispute.

As a result, both parties were disallowed from undertaking any action that would further exacerbate the dispute.—Robert JA Basilio/JV, GMANews.TV