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PAL releases details of spin off/outsourcing programme

2-Sep-2011 8:45 AM

Philippine Airlines released (01-Sep-2011) information on its spin off/outsourcing programme. The spin off/outsourcing process includes:

  • Issuance of 'Notices of Separation' to affected employees. Their last day of work with PAL is on 30-Sep-2011;
  • Third party service providers will absorb all affected employees who signify intention to join them by 09-Sep-2011;
  • Separation pay and other benefits shall be given no later than 15-Oct-2011 after computing employees' salary and accountabilities as of 30-Sep-2011;
  • Full implementation of the programme will commence on 01-Oct-2011;
  • PAL management notified the regional offices of DOLE (Manila/Pasay and Cebu) regarding its spin off/outsourcing program, the effectivity date as well as a list of affected workers.

SkyLogistics Philippines, Inc will take over airport services (ground handling), while SkyKitchen Philippines, Inc will handle in-flight catering services. SPi Global will handle call centre reservations operations.

Affected PAL workers by the spin off/outsourcing will receive a transition package, which includes:

  • 125% of the employee's monthly basic salary for every year of service;
  • USD2,400 (PHP100,000) gratuity pay;
  • 100% commutable-to-cash accrued vacation and sick leaves;
  • trip pass benefits depending on years of service;
  • guaranteed salary for one year, of whatever salary is given by the service provider to workers who accept the employment offer of the service provider; and
  • medical and hospitalisation benefit for one year for those who will join the third party service providers. [more]