PAL says spin-off to ensure survival, save jobs

Philippine Airlines announced (25-Nov-2010) its planned spin-off (affecting more than 2600 workers) is a "survival strategy" designed to save the jobs of more than 4,000 employees who will run the restructured airline. The announcement was in response to a labour protest-rally against the spin-off plans in Makati on 25-Nov-2010. The carrier stated almost all airlines in the world have done or are currently undergoing "painful restructuring to adjust to new global business realities". PAL urged the Philippine Government "to intervene in the PAL row in the interest of safeguarding constitutionally mandated workers' rights in the face of [PAL's] corporate restructuring." [more]

Philippine Airlines: "It cannot be business as usual: the global economic crisis of 2008 showed that airlines are in real danger of closure or bankruptcy without restructuring. PAL's spin off program is not 'contractualisation' as our friends in the labor movement claim. PAL said it is closing down its catering, airport services and call center divisions to allow more efficient third party service providers to do the job. Hence, affected employees will be retired early and paid their separation benefits in accordance with the ruling of the Department of Labor and Employment (DOLE). It's entirely up to them [workers] if they want to join the new service providers or not. Labor rights cut both ways. They're not in favor of workers alone. Investors like PAL are also protected under the country's laws, specifically the Constitution, the Labor Code and existing jurisprudence," Cielo Villaluna, Spokesperson. Source: Philippine Airlines, 25-Nov-2010.