Home » Aviation, Breaking News » PAL union files case questioning Palace decision on outsourcing

The Philippine Airlines Employees Association (PALEA) last week filed a petition before the Court of Appeals questioning the legality of the Office of the President’s (OP) decision allowing Philippine Airlines to outsource three of its non-core units.

PALEA president Gerry Rivera said the case seeks to stop the outsourcing plan which will mean the termination of about 2,600 PALEA members in the in-flight catering, airport services and call center reservation units.

“PALEA maintains its position that management cannot prematurely implement the decision of the OP, the same being not final and executory,” Rivera said.

“If PAL management pushes through with the mass layoffs, we will construe that as a defiance to judicial process and a direct challenge to the union. PALEA will act to defend its members.”

The union is preparing for mass action unless the outsourcing program is deferred.

PAL has already sent to affected employees termination notices effective September 30. Employees who will accept offers to work for firms that PAL will outsource to will be rehired and start work on October 1.

The flag carrier is allocating P2.5 billion in severance benefits for workers of the three non-core units to be spun off. Affected employees will receive a separation pay equivalent to 1.25 months’ salary for every year of service, P50,000 cash as gratuity pay, and other non-cash benefits.

Meanwhile, Manila Auxiliary Bishop Broderick Pabillo scored the OP for its adverse ruling on PALEA. Airline unions in the Asia Pacific and the global union International Transport Workers Federation have also declared solidarity with PALEA.


Photo by ironchefbalara

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