PAL retrenches 117 employees

BACOLOD CITY, Negros Occidental, Philippines — The Philippine Airlines on Wednesday served notices of termination to 117 ground service operations employees in domestic stations nationwide.

Nine of these employees were assigned at the Bacolod Silay Airport in Negros Occidental, said Clara de Castro, PAL senior assistant vice president for legal affairs.

The termination, part of PAL’s restructuring program, will take effect Nov. 9, according to De Castro.

De Castro said the affected employees would be given a compensation package more than what has been required by law.

“The separation package required under the law is 100 percent of the basic monthly salary of an employee for every year of service,” she said.

“PAL is providing its affected employees with 125 percent of their monthly salary for every year of service,” she added.

Each affected employee would also be given P100,000 in gratuity, which has not been required by law, as PAL’s way of acknowledging service rendered, said De Castro.

The termination of the 117 has been part of the business restructuring program of PAL, to simplify operations, which other airlines have already done, she said.

De Castro called the termination necessary to sustain the viability of the company, De Castro said.

It is a global trend of airlines to simplify the business process and focus on core functionalities, she pointed out.