PAL labors over DOLE ruling favoring FASAP, seeks reversal
Flag carrier Philippine Airlines (PAL) wants the Department of Labor and Employment to overturn its decision granting salary increases and higher retirement age for flight attendants. According to Flight Attendants and Stewards' Association of the Philippines (FASAP), this is a "clear sign that instead of promoting peace, management opts to continue fighting with its flight attendants." The union had threatened to go on strike in September unless the airline gives a pay increase and end its policy on mandatory retirement at 45, which FASAP said was aimed at forcing flight attendants to leave before they became old. In a press briefing Monday, PAL president Jaime Bautista said the company has already filed a motion for reconsideration on the Labor Department's Dec. 23, 2010 order. An absurd situation Bautista said the Labor Department ruling was "confiscatory" as it obliged the airline to share income it did not earn. The department ordered PAL to pay P222 million in salary increases to its employees. "The Labor Department is directing PAL to grant hefty pay increases [to flight attendants] from July 2007 to July 2010 despite its knowledge and awareness of the airline's massive losses [during the] period," he said. "[Labor Secretary Rosalinda] Baldoz expects PAL to produce the money. But as to how, the decision did not say," added Bautista. According to the PAL president, the Labor Department probably thought that future income can be applied to salary increases. "But this will result in an absurd situation. It is an unthinkable fiscal maneuvering. One can only wonder where the airline is supposed to source funds," he said. PAL suffered losses of $297.8 million during the fiscal year that ended in March 31, 2009 and $14.3 million in the fiscal year that ended on March 31, 2010, airline data showed. On the retirement issue, the Labor Department should take into consideration that union members agreed with the age limit policy provided by the airline management, Bautista said. He cited Art. 287 of the Labor Code of the Philippines, as amended by Republic Act 7641, that that any person may be retired upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract. "Thus, a careful reading of the provision indicates that employers and employees are at liberty to agree and fix the applicable retirement age," Bautista said. The Labor Department failed to consider the fact that the average retirement age of most airlines in Southeast Asia "is much less than 60 years old. Early retirement for flight attendants is fast becoming the rule rather than the exception," Bautista added. Fighting its own frontliners FASAP president Bob Anduiza said in a separate statement the resolution of the dispute between management and flight attendants is a "golden opportunity for both parties to work together and face the tough competition in the aviation industry." "We need one another to support the airline's operations and its competitors. We sincerely believe it is an opportune time for us to consider confidence-building measures, which will take us to a happy and peaceful working environment," Anduiza added. The association criticized PAL management for focusing on fighting its own frontliners instead of setting its sights on running the business well, attracting more passengers, and selling more tickets. — VS, GMANews.TV