PAL gets $50-M loan to pay laid-off workers

MANILA, Philippines – Flag carrier Philippine Airlines (PAL) has obtained a $50-million (about P2.1 billion) loan from European bank Credit Suisse to finance its outsourcing program which will take effect on October 1.

PAL chief finance officer Jose Gabriel Olives said proceeds of the loan will be spent for the severance package totaling P2.5 billion that will be given 2,400 PAL workers who will be laid off.

“All affected workers from PAL’s catering, ground handling and call center reservation units can rest assured they will be paid in full by October 2011 as promised,” said Olives.

He noted that aside from Credit Suisse, other PAL creditors support the spin-off of the airline’s non-core units.

PAL will proceed with the outsourcing, Olives said, despite a pending case before the Court of Appeals seeking to prevent it.

“Of course, management will maintain the status quo if the Court of Appeals issues a restraining order.”

PAL’s ground crew union, the PAL Employees Association, asked the appellate court to annul a Malacañang order approving the outsourcing plan.

Presidential spokesperson Edwin Lacierda, however, maintained that the Palace decision was sound and fair.

“Naalala ko po may isang desisyon sa PAL na talo ang PAL. Ito po ang kaso ng FASAP where Secretary Rosalinda Baldoz ruled in favor of the flight attendants. So it’s not true na we are anti-labor. Tinitingnan po natin ‘yan base sa merito ng kaso,” he said.

Meanwhile, militant labor group Partido ng Manggagawa (PM) alleged that the service providers hired by PAL to take over its non-core operations are “illegal labor-only” contractors.

PM said it obtained a document from the Department of Labor and Employment certifying that the service providers — Sky Kitchen Phils Inc., Sky Logistics Phils Inc. and SPI Global Holdings — “are not registered as contractor/subcontractor under DOLE Department Order No. 18 series 2002.”

“The outsourcing plan should be immediately suspended and the notices of termination issued by PAL should be voided too,” said Renato Magtubo, PM national chair. –abs-cbnNEWS.com