MANILA, Philippines - (UPDATED) The management of Philippine Airlines and the PAL Flight Attendants and Stewards Association (FASAP) failed to break the deadlock with both sides unwilling to change their stance.

PAL said in a statement on Tuesday that it maintained its P80-million offer to the cabin crew union, saying the company cannot give more due to its current financial difficulties.

With the impasse, FASAP said it is set to submit a notice of strike in the next 2 weeks.

During the conciliation meeting at the National Conciliation and Mediation Board (NCMB) PAL management also insisted on limiting talks to the economic aspect of the collective bargaining agreement (CBA) to put closure to its 2005-2010 CBA with FASAP.

PAL said it wanted the early retirement issue to be discussed during the next CBA covering the years 2010 to 2015. It’s not until 2018, or 8 years from now, when the early retirement provision will affect any cabin crew.

PAL President and Chief Operating Officer Jaime Bautista, who was ill, was absent at meeting.

On the early retirement age issue, PAL lawyers said the company should not take the blame for a CBA provision that FASAP leaders approved.

"Officers of the cabin crew union signed the CBA containing the provision setting an early retirement age not only once but three times in the past. They were not forced. They signed it voluntarily," PAL said in its statement.

FASAP has threatened to stage a strike to protest the early mandatory retirement age. The provision on the retirement of 55-year-old female attendants is part of a heavily contended policy prescribed in the PAL-FASAP 2000-2005 CBA.

PAL has 2 other sets of compulsory retirement policies. The other 2 are: flight attendants, both male and female, hired after November 22, 1996, are retired at age 45; and male and female flight attendants hired after November 22, 2000 are retired at age 40.

Government intervention

Department of Labor and Employment Secretary Rosalinda Baldoz said the government is prepared to step into the row if a strike will impair the delivery of services, affect the riding public as well as the image of the country. She said the labor dispute is imbued with national interest.

She said, however, that there is still no need for the government to intervene. She expressed hopes that both parties can come to an acceptable agreement.

Baldoz said that when all conciliaton efforts are exhausted and no deal is made, FASAP has the option of filing a strike but it has to comply with procedural requirements.

These include a 30-day cooling off period. FASAP also has to get the majority support of its members and report this to DOLE. The union can then file for a strike notice 7 days after it submits its report to the department.

Baldoz is hopeful that both sides will get their act together.

"At the minutes of the meeting, FASAP has manifested its openness to a conciliation. They are expecting a show of goodwill from PAL management, and they want a more reasonable offer from them," Baldoz said in a phone interview with ANC's Top Story.

Akbayan calls for PAL boycott

In a related development, party-list group Akbayan on Tuesday picketed the PAL ticket office in Manila, calling on the public to boycott the airline company until its management has repudiated its alleged unfair labor practices, as well as its alleged sexist and discriminatory policies imposed against its workers, particularly to its female flight stewards.

"PAL would like to depict the current labor row as a dispute restricted to its management and workers. They are trying to insulate the issue from the public's scrutiny. However, being the country's flag carrier and by virtue of the fact that many of the workers' issues are in reality the same issues confronted by the rest of the working population, it is necessary that we express our solidarity with the PAL employees. The public must get itself involved," said Akbayan Vice President Marie Chris Cabreros.