Massive layoffs begin at PAL next month

■ Some 2,600 workers in the airline’s catering, airport services and call center operations get the pink slip

PHILIPPINE Airlines said Thursday it had sent termination notices to about 2,600 workers as it started outsourcing jobs such as catering amid losses.

Airline president Jaime Bautista said the workers in catering, airport services and call center units would be laid off by Sept. 30 but could be employed by the companies that the carrier had contracted to provide those services.

Those who would accept the offer by Sept. 9 could start work on Oct. 1, he said, adding 400 had so far signified their willingness to accept the offer.

A union of airline employees has rejected the plan and said it will exhaust all remedies, including seeking a court resolution.

The airline is to spend about P2.5 billion for the employees’ severance package.

“The spin off/outsourcing is a painful but necessary decision to ensure PAL’s viability and long term survival,” Bautista said.

“We assure the affected workers that they will all receive their separation pay and other benefits that are at par, if not better than, industry standards. Guaranteed employment also awaits them at our third-party service providers.”

The airline said it had started town hall-style meetings to answer workers’ questions about its outsourcing program.

Gerardo Rivera, president of the Philippine Airlines Employees Association, slammed their termination.

“We have sacrificed our collective bargaining rights since 1998, so it is unjust for PAL to reward us with retrenchment for it,” Rivera said.

“We appeal to management to craft a business model that does not include outsourcing jobs.”

Rivera said he believed the airline would include other ground employees doing administrative work in the retrenchment.

“I don’t believe that they are only after the 2,600 employees,” he said.

“Our sources say the management is looking at getting rid of all its ground employees.”

The airline started implementing its outsourcing plan after the Office of the President upheld its prerogative to spin of its non-core units on Aug. 11.

Acting Labor Secretary Romeo Lagman first recognized the validity of the airline’s outsourcing plan on June 15, 2010. Labor Secretary Rosalinda Baldoz then affirmed it on Oct. 29 of the same year. –Vito Barcelo with Jeremiah F. de Guzman and AP