PALEA files petition vs. PAL’s outsourcing plan at CA

MANILA, Aug. 26 – The Philippine Airlines Employees Association (PALEA) filed on Friday a petition before the Court of Appeals (CA) questioning the national flag-carrier Philippine Airlines’ outsourcing plan which will pave the way for the termination of 2,600 workers in September this year.

In a petition for certiorari, PALEA asked the appellate court to stop the implementation of the outsourcing plan as the constitutional rights of the employees have been violated.

PALEA also asked the CA to enjoin the PAL management from carrying out the plan. It said that the petition came after PAL’s announcement that it had sent termination notices to employees which will take effect on Sept. 30, 2011.

PAL also sent notices to the regional offices of the Department of Labor and Employment (DOLE) in Manila and Cebu.

The petitioner argued that PAL management cannot prematurely implement the decision of the Office of the President since it is not final and executory.

PAL’s spin-off/outsourcing program was first recognized as legal and valid by the acting DOLE Secretary Romeo Lagman on June 15, 2010, and was affirmed by DOLE Secretary Rosalinda Baldoz on Oct. 29, 2010.

Upon completion of the program, only 5,000 PAL employees will be left with the flag-carrier. It was gathered that PAL will spend about P2.5 billion for the severance package.

According to the DOLE’s ruling, PAL workers affected by the spin-off will obtain separation pay equivalent to 125 percent of their monthly basic salary for every year of service.

They will also receive the following: P50,000 gratuity pay; 100 percent commutable-to-cash vacation and sick leaves; and trip pass (travel) benefits.

DOLE’s decision was upheld but slightly modified by increasing the gratuity pay by another P50,000 per worker.

The PAL management is also offering a one-year extension of medical and hospitalization benefits and guaranteed pay for one year of whatever salary is granted to those who choose to be employed by PAL’s service providers. (PNA) scs/PTR/utb