Airline dangles P1-m package to restive union

PHILIPPINE Airlines on Wednesday assured the 2,600 employees to be laid off in its outsourcing plan that they will receive at least P1 million each in separation benefits and free plane tickets for their families on any domestic or foreign destination.

The workers would also be rehired by the companies handling the services that the airline would be outsourcing, airline president Jaime Bautista said.

He said the flag carrier’s restructuring program would cost the company an estimated P2.5 billion, up by P500 million from the P2 billion it had previously agreed with the Labor Department.

The airline would be borrowing that amount from government banks to pay the workers to be affected once it concentrated on its core services and started subcontracting its in-flight catering, ground handling and call center services, Bautista said.

“If this is not possible, we will seek financing from other PAL creditors,” he said.

“Given its recent losses and current financial position, PAL would be hard put to raise the P2.5 billion, but this is a bitter pill we have to swallow.

Bautista said the airline would implement the Labor Department’s order recognizing its prerogative to restructure its operations before the end of the year, which would save it P500 million to P600 million a year and give it more chances for survival.

“PAL believes [the department’s] decision is just, reasonable and humane since it has the force and effect of law. We must respect the ruling.”

Barring a court order that the affected employees might secure stopping the Labor Department’s ruling, the airline would quickly implement that ruling to gain relief from its difficulties, Bautista said. –Vito Barcelo and Jeremiah F. de Guzman, Manila Standard Today