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Employment News

DOLE Suspends Laying Off PAL's 3,000 Employees


Date Posted: May 26, 2010

The Department of Labor and Employment (DOLE) finally steps in and hold Philippine Airlines (PAL) move to retrench its 3,000 workers as part of its plan to outsource three non core operations of the airlines. The supposed final working days of the workers is scheduled on May 31, 2010.

According to an inter-office memorandum written by PAL assistant vice-president for Industrial Relations Remignio G. Siapno II to Jose S.L. Uybarreta, vice-president for Human Resources “DOLE have stepped in over the dispute of PAL and the PAL Employmees Association Remigio G. Siapno II, PAL assistant vice-president for Industrial Relations, wrote in an inter-office memorandum to Jose S.L. Uybarreta, vice-president for Human Resources (PALEA).

Affected employees from PAL’s call center, catering and ground department are still expected to work as memo read that May 31 “shall not take effect as scheduled.”

"In the meantime, employees who have received the termination letters shall continue to report for work and PAL shall continue to admit said workers," Mr. Siapno added.

"We shall await the decision of the Secretary of Labor and Employment."

On the other hand, PALEA president Geraddo F. Rivera is hoping that things will ends well with the affected employees.

“We consider this development as a temporary victory for the employees...We hope that DoLE will resolve this issue as soon as possible,” Rivera said.

PAL had said late last month that outsourcing select non-core operations is estimated to yield savings of P1 billion-P1.5 billion, helping make the company more attractive to investors.

PAL will be paying around P2 billion in benefits to retrenched employees, who will get separation pay equivalent to one month’s salary for every year of service.

 

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