PAL mechanics turn up for Lufthansa job offer

About 80% of the workforce of Philippine Airlines’ maintenance and engineering division have turned out to receive their separation notices from the airline and, at the same time, a new employment offer from Lufthansa Technik Philippines (LTP).

As of noon today, the second day of the distribution process, about 1,200 of the roughly 1,500 employees of the M&E unit had already trooped to the office where PAL representatives were handing out letters detailing their enhanced separation benefits.

Immediately after, the employees were given a second letter by LTP, which contained an offer to hire them for equivalent positions at substantially higher pay. The employees have ten days to act on the LTP offer.

“We are very happy with the way the process is going. By turning out to receive their letters from PAL and LTP, our M&E employees are voting with their feet. They are showing that they trust us when we say, ‘This is the best deal for you,’” said PAL president Avelino L. Zapanta.

The strong turnout came amid warnings from a faction of PAL’s ground-crew union, which warned of mass layoffs and violation of employees’ right to security of tenure. The faction advised employees to boycott the offer and protest the management initiative.

“As I’ve said many times over and I make clear again today – there will be no mass layoff or any form of economic dislocation. Everybody will have a job. No one will be left out,” said Zapanta.

PAL expects the turnout to reach 100% in the next few days after the process is conducted in Cebu where there about 200 M&E staff are based.

PAL and LTP signed on July 12 an agreement transferring ownership of the flag carrier’s M & E unit to the German-led joint venture. A service agreement was likewise signed by the two companies.

The agreements pave the way for the entry of German engineering giant Lufthansa Technik AG, the world’s largest provider of aircraft maintenance, repair and overhaul services, into the Philippines via LTP, its joint venture with Philippine partner MacroAsia Corp.

LTP said it would absorb the bulk of PAL’s M & E workforce.