PAL vows to end dispute with workers

Flag carrier Philippine Airlines’ (PAL) long history of dealing with labor woes may finally end with the company’s new management making serious attempts to restore good relations with its workers.

PAL president Ramon S. Ang said the company’s top officials have returned to the negotiation table with its former workers—under the PAL Employees Association (Palea)—to explore various options, including the reinstatement of former workers.

“Both sides are being reasonable. Things are looking better and we are starting to understand each other,” Ang said, describing the new management’s first meeting with Palea officials last month. “We are serious about this.”

Ang, who also sits as president and chief operating officer of PAL’s new controlling shareholder San Miguel Corp., said the resolution of the labor dispute with Palea was one of the airline’s top priorities.

The dispute stemmed from the previous management’s decision to shut down three “non-core” departments, particularly the airline’s call center reservations, airport services and in-flight catering groups, after these activities were outsourced.

The legality of the outsourcing scheme was questioned by Palea before the Court of Appeals, which has yet to decide on the case.

About 2,400 workers were laid off as a result of the move but were promised jobs at the outsourcing companies that took over the PAL activities. The outsourcing was done as a way to cut costs and turn the airline around.

The flag carrier posted a net income of $11.4 million in April to May of 2012, the first quarter of the airline’s current fiscal year.

“We want to find a solution. What they are asking for, and what we can give, we will make the two meet,” Ang said. “What’s important is that we treat them humanely.”