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PAL to slash workforce by 30% more

  • The Philippine Airlines workforce reduction program will involve 2,300 employees
  • Affected personnel will be employed until mid-March 2021
  • PAL currently operates less than 30% of its normal pre-pandemic number of weekly flights
Heavily hit by the COVID-19 pandemic, Philippine Airlines (PAL) will cut its workforce by another 30%, the carrier said in a press statement.

The company-wide workforce reduction program will affect about 2,300 employees, including both voluntary separations and involuntary retrenchment.

Affected employees will be employed until mid-March 2021.

They will continue to receive their salaries and medical benefits until the effective date of separation, the airline said.

Prior to the lockdown caused by the pandemic, PAL already let go 300 people in February 2020.

The latest retrenchment announcement “has been an extremely difficult and painful decision. For our colleagues who are leaving, rest assured that we are committed to support you through this transition. We extend to you our deepest gratitude for your years of hard work and dedicated service, and we will always cherish the ties you have established with the PAL family,” said PAL President Gilbert Santa Maria.

Before the retrenchment, PAL said it implemented temporary furloughs and flexible working arrangements to hold off job cuts and ensure employees continued to receive salaries and benefits, particularly medical benefits, during the height of the pandemic.
The retrenchment was carried out after a comprehensive system-wide review process and is part of the company’s overall recovery initiatives amid the ongoing pandemic that has massively affected the global airline industry.
While demand for air travel slowly returns, the airline said it is still far from pre-pandemic levels.

PAL currently operates less than 30% of its normal pre-pandemic number of weekly flights, held down by lowered travel demand and travel restrictions around the world and throughout the Philippines. Since March 2020, PAL has suspended capital expenditures, reduced management salaries, deferred lease payments and slashed non-essential expenses.
PAL has assured its customers and partners that current operations will continue without disruptions. PAL will continue to gradually increase international and domestic flights as demand recovers.

In addition to regular scheduled services, the flag carrier continues to mount special repatriation flights to help bring home stranded Filipinos from the Middle East, Europe, North America and all over Asia. PAL likewise operates all-cargo services to meet the essential cargo transport needs of the public and support economic supply chains. PAL will also be supporting the transportation of COVID-19 vaccines, once available.

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