No mass layoffs – PAL

Philippine Airlines today reiterated longstanding assurances to employees of its maintenance and engineering division that no one among them will be economically displaced by the sale of the unit to Lufthansa Technik Philippines (LTP), a German-Filipino joint venture specializing in aircraft maintenance.

"Everybody who is currently employed will receive a new employment offer from either LTP or PAL. This is on top of the very generous separation package each one will receive. No one will be left out in the cold,” said PAL president Avelino L. Zapanta during the signing of documents formalizing the sale on July 12.

LTP itself confirmed that it would absorb the bulk of the maintenance division’s roughly 1,400 employees. The remainder will be rehired by PAL.

Zapanta’s statement was the just latest in a long series of assurances from PAL management to employees regarding their job security.

Since April 1999, the PAL chief has personally gone the rounds of the airline’s various units and briefed employees on the status of the M&E sale and other issues. He has also issued monthly bulletins to the PAL staff to reinforce the message.

A faction within the airline’s ground crew union, the PAL Employees Association (PALEA), has warned of an impending mass retrenchment of employees following the sale of the maintenance unit.

“There is no truth to this allegation. Both LTP and PAL have already given their solemn word on this matter. There will be no mass layoffs – period,” said Zapanta.

Another union faction has filed a notice of strike with the Department of Labor and Employment (DOLE) on the basis of the same issue, but PAL opposed this because the filer lacked the legal personality to act on behalf of the union.

In fact, at present, none of the various factions claiming to speak on behalf of PALEA has the legal personality to do so following the DOLE’s decision last June 15 nullifying the results of the union’s February 17 to 24 election of officers.

The DOLE has ordered a new vote to be held under its auspices.