PAL row has deep roots, no breakthrough seen — Palace

The government conceded yesterday problems deeper than what has been initially perceived may prolong the ongoing dispute between the management of flag-carrier Philippine Airlines (PAL) and 25 of its resigned pilots as Presidential spokesman Edwin Lacierda said the arbitration efforts of the government are not expected to produce results within the week.

“We cannot guarantee that it would be resolved this week,” he said.

Lacierda said there were deeper reasons for the pilots’ decision to resign en masse other than the attractive compensation and benefits offered by airlines in Hong Kong and the Middle East.

“We thought it was just a simple case of higher wages luring pilots to seek jobs elsewhere,” Lacierda said.

But he said the pilots’ union had since brought out more complaints against the management.

PAL has been beset by growing labor unrest for months with ground crews and flight attendants also threatening strikes.

“We’re getting more and more information on the conditions from both sides, Pilots expressed more

problems and on the part of the PAL management, they also expressed their positions in line with those concerns,” Lacierda explained.

He, however, opted not to give details on the pilots gripes so as not to jeopardize ongoing dialogs with the PAL management that is being facilitated by the government.

Lacierda said resigned PAL pilots did not show up in a scheduled meeting with Transportation and Communications Secretary Jose ‘Ping’ de Jesus. The pilots sent their representatives instead.

PAL, meanwhile, said it may post a loss in its current fiscal year because of pilot trouble that led to flight cancellations.

PAL had said it expected to return to profitability in the 12 months to March 2011 after posting a net loss of $14.3 million in its previous fiscal year.

“We wish to confirm that (PAL) may have to revise its targets… because the cancellation of several flights has indeed afected the revenue of PAL,” PAL Holdings said in a statement.

Twenty-five pilots and first officers of PAL’s short-haul aircraft suddenly quit last week for higher paying jobs abroad. The synchronized move forced the airline to cancel 22 domestic and regional flights between Saturday and Monday.

On Tuesday the airline said its operations were back to normal but that three domestic flights had been axed indefinitely due to the pilot shortage.

PR Holdings, the investment vehicle for Lucio Tan, PAL chairman and majority shareholder, did not disclose the airline’s exact losses from the pilot trouble.

“It wasn’t only limited to resignation. It’s apparently part of a deep-seated problem which has been festering, according to the pilots, so their contracts, working conditions and many other reasons were disclosed by them (pilots’ representatives) in the discussion,” he said when asked if the reported unfair labor practices, as told by the pilots, were ever mentioned in the dialogs.

Labor and Employment Secretary Rosalinda Baldoz seriously considers stepping into this angle of the issue with proper coordination with the PAL management and the pilots concerned, Lacierda added.

The Palace spokesman vowed the government will exert all efforts to resolve the situation as soon as possible. “In the meantime, the riding public has not been prejudiced so far because Philippine Airlines has already modified their flight schedules in order to accommodate the concerns of the riding public,” he said.

Meanwhile, Lacierda refused to concur with Justice Secretary Leila de Lima’s disclosure the other day that the government is looking at a possible takeover on the flag-carrier if all their efforts fail to resolve the situation.

He said this was only mentioned at the meeting of Cabinet secretaries last Tuesday with De Lima, De Jesus, Finance Secretary Cesar Purisima, Toursim Secretary Alberto Lim, and Executive Secretary in attendance but it was never considered as an option.

“We’re looking at other options,” Lacierda stressed. He said that dialogs between the PAL management and the 25 pilots concerned will continue until a resolution is achieved regarding this issue.

PAL management, according to Lacierda, has come out with a modified flight schedule for its customers in adjustment to the lack of pilots in its roster.

On the issue of wages, Lacierda said, the management of PAL insists that their rates are competitive in the region.

As to whether the government would provide its Philippine Air Force pilots to PAL to run the planes, Lacierda said “this has not been brought up.” –Aytch S. de la Cruz, Daily Tribune