Malacanang affirms PAL outsourcing plan
Union to exhaust all legal remedies
MANILA, Philippines (UPDATE) - Malacanang has allowed Lucio Tan-led Philippine Airlines to spin-off its non-core units after junking pleas from the firm’s ground crew union.
In an August 11 resolution obtained from the Office of the President, Executive Secretary Paquito Ochoa Jr. said “the points raised by petition in its motion for reconsideration are a mere rehash of those considered, discussed and ruled upon by the Secretary of Labor…and affirmed in our [original] decision.”
Both management and labor union have been at odds since last year over the company's plans to spin off 3 non-core units that would result in job losses for 2,600 union members.
This has been the subject of a strike vote by the Philippines Airlines Employees Association (PALEA). Further protest actions were postponed pending a final decision on the matter.
Ochoa affirmed his March 25 decision, saying PAL’s actions will consequently lead to the retrenchment of regular employees and union members.
Nonetheless, “PAL is not liable of unfair labor practices,” he said.
He said the Office of the President took note of PALEA’s motion for reconsideration for national interest purposes.
“We took a fresh look thereat and reviewed our findings, but found nothing erroneous and unlawful in the aforementioned decision,” he stressed.
In a text message, PALEA President Gerry Rivera said, “we received a copy of the decision by registered mail today…We will file a petition before the Court of Appeals.”
He said the union will also pursue protest actions.