Quantcast
Latest Stories

Appeals court junks PAL workers’ bid vs outsourcing

By ,

FILE PHOTO

MANILA, Philippines—The Court of Appeals has upheld Malacañang in its decision to allow Philippine Airlines to axe 2,600 employees in 2010, saying this was a valid management move to revive the money-losing airline.

In an 87-page decision dated March 13, the appellate court’s Special 8th Division, Division through Association Justice Priscilla Baltazar-Padilla, junked a motion for reconsideration filed by labor union PAL Employees Association (Palea), which accused PAL of “unfair labor practices.”

Representatives from Palea said the union would appeal the decision.

Palea had earlier filed a motion asking the intermediate court to overturn decisions by the Department of Labor and Employment, and, subsequently, the Office of the President, which both sided with PAL management.

The court said it agreed with the secretary of labor that “the permanent outsourcing of non-core operations of PAL is part of the company’s exercise of its right to reorganize its business structure to enable it to thrive and grow in a highly competitive airline industry.”

The court said PAL’s move was done “in good faith” and “for the advancement of the company’s interest” and not for the purpose of defeating or circumventing the rights of employees.

The issue involves the dissolution of three major, but non-core, departments within PAL, namely its call center reservations, airport services, and in-flight catering.

Third-party contractors were hired to replace the closed down departments. About 2,600 workers lost their jobs, but most have accepted jobs offered them by the new contractors. The decision listed 1,406 former Palea members that accepted retirement packages offered them by PAL when the outsourcing was done in 2010.

In its decision, the court said outsourcing of services was a “growing global trend” that the industry should accept, if not embrace.

The court cited a press release by Labor Secretary Rosalinda Baldoz that said “outsourcing is already with us,” defending her decision to allow PAL’s spin-off.

PAL justified the spin-off of services, citing a P690-million net loss for the fiscal year ending March 2010.

“While we commiserate with the plight of all employees affected by PAL’s outsourcing, we cannot, however, blindly uphold with absoluteness their plea to reject the outsourcing … especially when we find nothing capricious and arbitrary on the part of the OP when it affirmed the ruling of DOLE,” the CA said.

PAL’s spin-off/outsourcing program was first recognized as legal and valid by acting Labor Secretary Romeo Lagman on June 15, 2010, and was affirmed by Labor Secretary Rosalinda Baldoz on Oct. 29, 2010. Baldoz’ ruling was affirmed by the Office of the President prompting Palea to file an appeal with the Court of Appeals.

“It is readily apparent that PAL has a fluctuating financial condition and it is understandable if it continues to explore cost-saving measures to attain full financial stability. Hence, we decline to interfere with PAL’s judgment in the conduct of its business by making a legitimate business decision to outsource certain services to maintain a healthy and viable financial standing,” the appeals court said.—With Tetch Torres-Tupas, INQUIRER.net

Originally posted at 05:53 pm | Wednesday, March 20, 2013


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Air Transport , Airline , aviation industry , Labor , labor dispute , nation , News , Outsourcing , PALEA , Philippine Airlines , Philippine Airlines (PAL)



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Tagle: Christ’s resurrection a message of hope to faithful
  • Aquino vows to intensify anti-corruption drive further
  • Unease in Vatican over cardinal’s luxury flat—report
  • Nepal calls off search for missing guides on Everest—official
  • Pope’s Easter Message ‘Urbi et Orbi’
  • Sports

  • Rain or Shine grabs No.4, sends Ginebra to 8th
  • Red-hot Alaska rips injury-depleted San Mig Coffee
  • Pacquiao courtesy call to Aquino set for Monday
  • Nick Calathes suspension a reminder of supplement risk
  • Teague scores 28 as Hawks soar past Pacers in Game 1
  • Lifestyle

  • Angono petroglyphs in danger of disappearing
  • Britain’s baby Prince George visits Australian zoo
  • Noli Yamsuan, Cardinal Sin’s ‘official’ photographer: ‘I could smell the aftershave lotion of the Pope’
  • Simplifying and lightening life
  • Where to go for Easter night-out
  • Entertainment

  • Unmerry mix of attention-calling moves on ‘Mini-Me’ TV tilts
  • Persistence pays off for The 1975
  • Show-biz celebrities’ other choices of summer getaway
  • Why ‘Noah’ can’t dock his ark at Philippine theaters
  • Acclaimed artist goes wild while on holiday
  • Business

  • Top-selling insurance agent opens her dream café
  • Connecting and transacting with one another
  • Building wealth for health
  • Why Mandaue Foam buys, rather than rents, space
  • A workplace of new possibilities
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Epiphany
  • Unpaid creditor vs distressed debtor
  • Moving on
  • From culinary desert to paradise
  • Response to China: ‘Usjaphil’
  • Global Nation

  • Tim Tebow’s charity hospital in Davao seen to open in 7 months
  • OFW died of Mers-CoV in Saudi Arabia, says family
  • Aquino, Obama to tackle US pivot to Asia during state visit
  • Asia seeks Obama’s assurance in territorial spats
  • Cesar Chavez movie sparks memories of Fil-Am labor leaders
  • Marketplace