PAL settlement with pilots does not address cause of storm;
DOLE urged to stop contractualization of 3,000 workers*
DOLE urged to stop contractualization of 3,000 workers*
Date: 06 August 2010
Campaign: Kabuhayan at Katarungang Panlipunan, Ipaglaban!
Reference Person: Elmer "Bong" Labog, KMU Chairperson
Contact information: 0908-163-6597 / 0919-416-3451
Kilusang Mayo Uno urged today the Aquino government to reverse the previous administration’s decision allowing the contractualization of about 3,000 PAL workers, “if it is really sincere in addressing the labor issues that caused the recent storm in PAL.”
KMU said that though Malacañang is showing much effort in reconciling the pilots and the PAL management, arriving at some settlement will only be a ‘band-aid solution’ to the problem.
“Just because the PAL management has agreed to some of the immediate demands of the pilots doesn’t mean that job security and justice have already been granted to the pilots and the majority of PAL workers. The threat of contractualization remains very real, as 3,000 employees stand to loose their tenure, or even their jobs, soon – so everyone who works in PAL has all the reason to worry and protest,” said KMU chairperson Elmer “Bong” Labog.
Almost a year ago, PAL announced its proposal to spin-off airport services department (including ground handling, cargo terminal/handling, and ramp handling) which curently employs 2,000 workers; inflight catering services, with 1,000 workers; and call center reservations, with 170 workers. On June 15 this year, the Department of Labor and Employment (DOLE) ruled that such moves “are based on lawful ground.”
Spin-off means a sale of the businesses and transfer to third-party providers of the said services.
“The pilots have exposed well that they were made to work with Air Philippines, Lucio Tan's other airline, with contractual status and lower salary. The same thing is intended for almost half of the 7,400 PAL workforce – make them work under a different company to remove their regular status, downgrade their salary and benefits, and deny rights that are due to them as regular workers,” Labog said.
PAL spokesperson Cielo Villaluna said the airline expects to save anywhere from P500 million to P1 billion in monthly salary costs through the planned spin-off.
“Lucio Tan, the Philippine’s second richest tycoon, is always thinking about reducing costs, when PAL has actually a reported P369.58 million in net profits and P81.24 billion in total assets last year. How much more does he want to amass by exploiting workers?” Labog asked.
“Lucio Tan has utilized well government policies that allow for the contractualization of so-called ‘non-core’ jobs in a company. But how can half of the current PAL workforce be ‘non-core’ and be denied job security and legitimate rights?
“Unless the DOLE reverses its decision allowing the massive contractualization of PAL workers, P-Noy’s administration will be seen as a protector of the interests of the elite. And Lucio Tan can enforce more schemes to exploit workers, confident that the government will back him. And all these can lead to greater ‘storms’ in the airline company. They surely will not like that,” Labog threatened.
*Url: http://kilusangmayouno.org/news/2010/08/pal-settlemement-pilots-does-not-address-cause-storm-dole-urged-stop-contractualization
KMU said that though Malacañang is showing much effort in reconciling the pilots and the PAL management, arriving at some settlement will only be a ‘band-aid solution’ to the problem.
“Just because the PAL management has agreed to some of the immediate demands of the pilots doesn’t mean that job security and justice have already been granted to the pilots and the majority of PAL workers. The threat of contractualization remains very real, as 3,000 employees stand to loose their tenure, or even their jobs, soon – so everyone who works in PAL has all the reason to worry and protest,” said KMU chairperson Elmer “Bong” Labog.
Almost a year ago, PAL announced its proposal to spin-off airport services department (including ground handling, cargo terminal/handling, and ramp handling) which curently employs 2,000 workers; inflight catering services, with 1,000 workers; and call center reservations, with 170 workers. On June 15 this year, the Department of Labor and Employment (DOLE) ruled that such moves “are based on lawful ground.”
Spin-off means a sale of the businesses and transfer to third-party providers of the said services.
“The pilots have exposed well that they were made to work with Air Philippines, Lucio Tan's other airline, with contractual status and lower salary. The same thing is intended for almost half of the 7,400 PAL workforce – make them work under a different company to remove their regular status, downgrade their salary and benefits, and deny rights that are due to them as regular workers,” Labog said.
PAL spokesperson Cielo Villaluna said the airline expects to save anywhere from P500 million to P1 billion in monthly salary costs through the planned spin-off.
“Lucio Tan, the Philippine’s second richest tycoon, is always thinking about reducing costs, when PAL has actually a reported P369.58 million in net profits and P81.24 billion in total assets last year. How much more does he want to amass by exploiting workers?” Labog asked.
“Lucio Tan has utilized well government policies that allow for the contractualization of so-called ‘non-core’ jobs in a company. But how can half of the current PAL workforce be ‘non-core’ and be denied job security and legitimate rights?
“Unless the DOLE reverses its decision allowing the massive contractualization of PAL workers, P-Noy’s administration will be seen as a protector of the interests of the elite. And Lucio Tan can enforce more schemes to exploit workers, confident that the government will back him. And all these can lead to greater ‘storms’ in the airline company. They surely will not like that,” Labog threatened.
*Url: http://kilusangmayouno.org/news/2010/08/pal-settlemement-pilots-does-not-address-cause-storm-dole-urged-stop-contractualization
