Philippine Airlines to cut 2,600 jobs amid losses

MANILA, Philippines—National carrier Philippine Airlines says it has sent termination notices to about 2,600 workers as it starts outsourcing jobs such as catering amid losses.

PAL President Jaime Bautista says workers from the airline’s catering, airport services and call center units will be terminated by September 30 but can be employed by the companies it has contracted to provide those services.

The announcement came after a recent decision by the Office of the President upholding a ruling by Labor Secretary Rosalinda Baldoz on the legality of the PAL management’s outsourcing program.

Those who accept the offer by September 9 can start work on October 1.

Bautista says 400 workers have so far signified willingness to accept the offer.

A union for airline employees has rejected the plan and said it will exhaust all remedies, including seeking a court resolution.

PAL will spend about P2.5 billion ($58.8 million) for the employees’ severance package.—With Paolo G. Montecillo, Philippine Daily Inquirer