PAL union rallies anew at DOLE, appeals “midnight decision”

Press Release
June 28, 2010

The Philippine Airlines Employees’ Association (PALEA) held another rally this afternoon at the Department of Labor and Employment (DOLE) in protest at the decision of Acting Labor Secretary Romeo Lagman that declared the planned PAL mass layoff to be a “valid exercise of management prerogative.” PALEA also filed a motion for reconsideration of the Lagman order in time for the deadline today.

Gerry Rivera, PALEA president and Partido ng Manggagawa (PM) vice-chairperson, insisted that “There are strong grounds to seek the reversal of Lagman’s decision.” PALEA assails the order as a “midnight decision that is erroneous on both substantive and procedural grounds.”

Some 500 PAL employees trooped to the DOLE around 3:30 pm today together with scores of supporters from PM. The protesters lambasted corruption at the DOLE as they carried placards that read “Kung walang corrupt sa DOLE, Walang manggagawang maghihirap.”

This is the second rally at the DOLE to protest the midnight decision. Last June 22, some 300 PALEA members held the first protest. Then on June 23 a delegation of PAL employees went to the Times St., QC residence of President-elect Aquino to deliver a petition asking him to intervene in the PAL dispute, cleanse the DOLE of corrupt officials and reform the policy regarding contractualization.

Rivera explained that “Contrary to the finding of Lagman, there is no spin-off of company departments in this case. No subsidiary corporation was formed by PAL and not one of its divisions was transformed into an independent company. What is involved here is outsourcing of functions wherein regular rank-and-file employees and union members will be terminated and the functions that they are performing will be farmed out to service providers.”

“Worse, the terminated regular employees themselves are envisioned to be the employees of the service providers. Upon their termination, they will just be transferred to a different employer but will be performing the same tasks that they had been performing as regular employees of PAL,” he added.

Rivera argued that “Further, contracting out, whether labor-only contracting or legitimate job contracting, is absolutely prohibited by the PAL-PALAEA collective bargaining agreement.”

“Finally there are no sufficient bases for retrenchment. Retrenchment is a measure of last resort which should only be undertaken in case of serious and imminent losses. A close review of the financial statements and disclosures of PAL reveals that its business condition is improving and not deteriorating, thereby negating the necessity for retrenchment,” Rivera said.

PAL union ask Noynoy for intervention in dispute

Press Release
June 23, 2010

Some 500 members of the Philippine Airlines Employees’ Association (PALEA) trooped to the Times St. residence of President-elect Noynoy Aquino this morning and submitted a letter asking him to intervene in the brewing labor dispute at Philippine Airlines. The PAL employees rode in motorcycles and vehicles that were festooned with yellow ribbons.

“The PAL workers’ petition is in pursuit of Noynoy’s campaign platform of good governance and the people’s hope for social reform,” asserted Gerry Rivera, PALEA president and Partido ng Manggagawa (PM) vice-chairperson.

In the letter addressed to President-elect Aquino, the PAL union asked him three things: presidential intervention in the PAL-PALEA dispute, cleansing of corrupt officials in the Department of Labor and Employment, and reform of the policy regarding contractualization.

In a decision dated June 15, 2010, Acting Labor Secretary Romeo Lagman found the planned mass layoff of some 3,000 Philippine Airlines (PAL) employees to be a “valid exercise of management prerogative.” PALEA argues that the order is a “midnight decision that is faulty on both substantive and procedural grounds.”

“We insist that the incoming Labor Secretary be given the right to study and decide on the labor dispute according to procedure and on a just basis. We believe that the PAL-PALEA dispute deserves Noynoy’s intervention given that it is imbued with national interest. More than half of the PAL workforce will be retrenched and the airline industry in no doubt of strategic value to the economy,” stated Rivera.

The PALEA petition submitted to President-elect Noynoy included endorsements from labor groups such as PM, Alliance of Progressive Labor, the unions at PLDT and Fortune Tobacco and from scores of leaders of various people’s organizations, including former General Danny Lim.

In the PALEA letter, the union contends that “Acting Sec. Lagman’s order was released with indecent haste given that the case has not been submitted for resolution and mediation proceedings are still ongoing. Moreover the decision failed to consider the PAL-PALEA collective bargaining agreement’s provision prohibiting the outsourcing of jobs that are being performed by regular employees.”

Yesterday hundreds of PALEA members held a motorcade from its office in Tambo, Paranaque and a rally at the Department of Labor and Employment office in Intramuros to protest the order. In the rally Rivera announced that PALEA will file a motion for reconsideration and “exhaust all the means provided by law to protect the job security of PAL employees.”

PAL union rally at DOLE vs. “midnight decision”

Press Release
June 22, 2010

The Philippine Airlines Employees’ Association (PALEA) held a protest action this morning at the Department of Labor and Employment (DOLE) to coincide with the filing of a motion for reconsideration against the decision penned by Acting Labor Secretary Romeo Lagman that found the planned PAL mass layoff to be a “valid exercise of management prerogative.” PALEA lambasted the order as a “midnight decision that is faulty on both substantive and procedural grounds.”

More than 500 PAL employees participated in the protest that started as a motorcade from the PALEA office in Tambo, Paranaque City. A delegation of supporters from the Partido ng Manggagawa (PM), PLDT union, Fortune Tobacco union and Alliance of Progressive Labor joined the rally at DOLE.

PALEA also demanded that the new Labor Secretary to be appointed by President-elect Noynoy Aquino be allowed to decide on the dispute. Tomorrow a delegation of PALEA leaders will troop to the Times St., QC residence of President-elect Aquino to deliver a petition. PALEA will ask President-elect Aquino to intervene in the PAL dispute, cleanse the DOLE of corrupt officials and reform the policy regarding contractualization.

“The worst of crimes are indeed committed in the darkness of midnight. Lagman’s order is a midnight decision that was released with indecent haste given that the case has not been submitted for resolution and mediation proceedings are still ongoing. We insist that the incoming Labor Secretary be given the right to study and decide on the PAL-PALEA dispute according to procedure and on a just basis,” argued Gerry Rivera, PALEA president and PM vice-chairperson.

Rivera added that “Lagman’s June 15 order is faulty on both substantial and procedural grounds. It failed to consider the PAL-PALEA collective bargaining agreement’s provision prohibiting the outsourcing of jobs that are being performed by regular employees. Further the order came only four working days after PALEA filed a motion for the production of certain documents such as PAL’s latest financial statement and its outsourcing contracts with service providers. No action has yet been taken on the motion.”

PM chairperson Renato Magtubo slammed the decision for legitimizing mass contractualization and revealing the anti-labor legacy of the outgoing Gloria Arroyo government. Magtubo added that “This is the ugly face of contractualization in PAL. Regular PAL employees will become contractual workers in service providers who will be performing exactly the same job for less wages, fewer benefits and no security of tenure. It has happened before when PAL’s maintenance and engineering department was spunoff to Lufthansa Technik and MacroAsia, shell companies whose real owner is still Lucio Tan.”

PAL union to rally vs. DOLE’s “midnight decision”

Press Release
June 21, 2010

The Philippine Airlines Employees’ Association (PALEA) will hold a rally tomorrow at the Department of Labor and Employment (DOLE) to coincide with the filing of a motion for reconsideration against the decision penned by Acting Labor Secretary Romeo Lagman that found the planned PAL mass layoff to be a “valid exercise of management prerogative.” PALEA insists that the order is a “midnight decision that is faulty on both substantive and procedural grounds.”

PALEA demands that the new Labor Secretary to be appointed by President-elect Noynoy Aquino be allowed to decide on the dispute. More than 500 PAL employees will participate in the protest that will start with a motorcade from the PALEA office in Tambo, Paranaque City. A delegation of supporters from the Partido ng Manggagawa (PM) will join the rally at DOLE.

The protest will continue on Wednesday with a delegation of PALEA leaders trooping to the Times St., QC residence of President-elect Aquino to deliver a petition. PALEA will ask President-elect Aquino to intervene in the PAL dispute, cleanse the DOLE of corrupt officials and reform the policy regarding contractualization.

“The worst of crimes are indeed committed in the darkness of midnight. Lagman’s order is a midnight decision that was released with indecent haste given that the case has not been submitted for resolution and mediation proceedings are still ongoing. We insist that the incoming Labor Secretary be given the right to study and decide on the PAL-PALEA dispute according to procedure and on a just basis,” argued Gerry Rivera, PALEA president and PM vice-chairperson.

Rivera added that “Lagman’s June 15 order is faulty on both substantial and procedural grounds. It failed to consider the PAL-PALEA collective bargaining agreement’s provision prohibiting the outsourcing of jobs that are being performed by regular employees. Further the order came only four working days after PALEA filed a motion for the production of certain documents such as PAL’s latest financial statement and its outsourcing contracts with service providers. No action has yet been taken on the motion.”

PM chairperson Renato Magtubo slammed the decision for legitimizing mass contractualization and revealing the anti-labor legacy of the outgoing Gloria Arroyo government. Magtubo added that “This is the ugly face of contractualization in PAL. Regular PAL employees will become contractual workers in service providers who will be performing exactly the same job for less wages, fewer benefits and no security of tenure. It has happened before when PAL’s maintenance and engineering department was spunoff to Lufthansa Technik and MacroAsia, shell companies whose real owner is still Lucio Tan.”

PAL union slams DOLE’s “midnight decision” on labor dispute

Press Release
June 20, 2010

The Philippine Airlines Employees’ Association (PALEA) slammed as a “midnight decision” the order signed by Acting Labor Secretary Romeo Lagman that found the planned PAL spinoff as a valid exercise of management prerogative.

“Lagman’s decision was released with suspicious haste and preempted the ongoing mediation proceedings at the Department of Labor and Employment (DOLE). We wonder what reasons prompted him to make a decision just 15 days before a new administration assumes power and a new Labor Secretary is appointed,” declared Gerry Rivera, PALEA president and Partido ng Manggagawa (PM) vice-chairperson.

PALEA announced that they will file a motion for reconsideration and exhaust all the means provided by law to protect the job security and labor rights of some 3,000 employees to be laid off as a result of the planned spinoff of airport services, inflight catering and call center operations. The PAL union is also planning mass actions to protest the decision as Rivera explained that the DOLE’s decision is not yet final and executory.

The militant PM expressed its support for the fight of the PAL union. Renato Magtubo, PM chairperson, stated that “The DOLE’s decision, together with the measly P22 wage hike, exposes the real legacy of the Gloria Arroyo regime which is anti-labor to its last remaining days. The working class will remember the GMA government for legalizing mass contractualization and its cheap labor policy.”

Rivera argued that “Lagman’s June 15 order is faulty on both substantial and procedural grounds. It failed to consider the PAL-PALEA collective bargaining agreement’s provision prohibiting the outsourcing of jobs that are being performed by regular employees. Further the case has not been submitted for resolution and the order came only four working days after PALEA filed a motion for the production of certain documents such as PAL’s latest financial statement and its outsourcing contracts with service providers.”

Both Rivera and Magtubo criticized the decision for opening the floodgates for mass contractualization. Rivera added that “In truth PAL will not be outsourcing non-core functions but merely engaging in illegal termination. It will layoff thousands of regular employees who will be absorbed by so-called service providers which are owned by Lucio Tan’s Kamag-anak Inc. PAL’s regular employees will overnight become contractual workers and lose wages, benefits and job security even as they perform the same job as before.”

Women workers express support for Robin Padilla in condom ad case

Press Release
June 18, 2010

The Partido ng Manggagawa (PM) expressed support for Robin Padilla in the case filed against him for promoting the use of condoms through advertisements. “Robin Padilla is a good boy for endorsing the use of condoms which is traditionally shunned in the macho culture of Filipino males. Condoms are a reproductive health concern not a moral issue,” declared Judy Ann Miranda, PM secretary-general.

Miranda called on the Ang Kapatiran Party (AKP) that filed the case against Padilla to face a debate on condom promotion and reproductive health. “We challenge pro-lifers such as AKP and Buhay, who all stand against the Reproductive Health (RH) bill, to a public forum to discuss the merits of the issue,” she added.

PM is the group that backed the Department of Health in its controversial condom distribution campaign and trooped to the office of the Catholic Bishops Conference of the Philippines last March 8 as part of the group’s campaign for the RH bill. The Calabarzon chapter of PM also held a motorcade last March 14 that offered condoms for free.

Miranda appealed to Padilla to stand firm in the face of the case. “Women workers ask Robin not to retreat in his endorsement of condom use. While we know Robin is not a saint, he is a positive role model for Muslim-Christian dialogue through his various projects and advocacies.”

The group however called on the government to assume the responsibility for massively distributing and promoting condoms. “It is should not be principally the business of the private sector but the task of the State to provide access to reproductive health services. We ask the incoming government of Noynoy Aquino to certify as urgent and priority legislation the proposed RH bill. It is the right of women to control their bodies and it is the responsibility of the State to defend the freedom of women to choose,” Miranda explained.

She cited a research (“The Incidence of Induced Abortion in the Philippines: Current Level and Recent Trends” by Fatima Juarez, Josefina Cabigon, Susheeia Singh and Rubina Hussain, published by Guttmacher Institute, New York, 2005) that concluded “one of every two married women did not want a child soon or wanted no more children, but were not using a contraceptive method.” Miranda insisted that “Filipinos want to reduce the number of children but do not have the means to do so. In poor communities, one condom amounts to a pack of noodles. To millions of half-starved families, basic survival definitely comes first over safe sex. Thus the RH bill provides that government must step in by providing access to reproductive health services.”

Militant workers slam wage hike as loose change, call for abolition of wage boards

Press Release
June 8, 2010

The militant Partido ng Manggagawa (PM) slammed the wage hike of P22 for Metro Manila workers as “loose change” and called for the abolition of the regional wage boards for “betraying the working class.” Renato Magtubo, PM chairperson, declared that “P22 is not even enough for workers to buy a kilo of commercial rice or even the cheapest NFA rice worth P25. Since the last wage hike was in June 2008, the wage hike is effectively P11 per year over two years. Na-onse na naman ang mga manggagawa."

He stated that “The wage hike exposes the real economic legacy of the Gloria Arroyo government—deepening poverty exacerbated by a cheap labor policy and lack of social protection. The 7.3% economic growth is a myth for the workers since they cannot partake of so-called progress.”

Magtubo also warned that “If the recommendation of the Department of Finance to increase VAT from 12 to 15 per cent is approved, then half of the wage hike will be wiped out. That is P12 or 3% of the new minimum wage of P404 will not go to the pockets of the workers and just possibly end up in the wallets of politicians.”

PM renewed its call for the abolition of the regional wage boards. “The wage boards have repeatedly betrayed the workers since they were established in 1989. The yawning disparity between the minimum wage and the cost of living is the clearest expression of a system failure,” Magtubo exclaimed.

The group also revealed that they will talk to the labor groups who sponsored or supported the P75 wage petition and discuss a campaign to reform the wage fixing system via the new Congress.

Magtubo explained that “Instead of the regional wage boards, we want a National Wage Commission formed with the mandate to fix wages based on the single criterion of cost of living. Despite the huge gap between the present minimum wage and the current cost of living, the National Wage Commission can achieve equalizing the two by a host of mechanisms among which are direct wage increases, tax exemptions, price discounts at social security subsidies for workers.”

According to a study by PM the cost of living for a six-member family in Metro Manila already reached P1,000 per day last April. “Even if two members of the family earn a living—the buy one, take one policy of the state—their combined income will not even be enough for a decent life,” insisted Magtubo.

He added that “Out of 19 million waged and salaried workers, only 2 million minimum wage earners will be directly affected by the wage hike. Of the latter, hundreds of thousands more will not enjoy the wage hike because of exemptions and deferments clauses in the wage order."

Labor group calls on wage board to grant P75 wage hike as cost of living has reached P1,000/day

Press Release
June 2, 2010

The Partido ng Manggagawa (PM) called on the Metro Manila wage board to “break tradition and expectations” and grant the P75 wage hike as it is due to decide on the petition for a salary increase this week. PM released its own study that reveals the of the cost of living for a family of six in Metro Manila as of April this year has already reached P1,000 a day.

"This survey shows that the gap between the P382 minimum wage in the NCR and the present cost of living is a yawning P618 or 162% of the ordinary wage. Even if both parents work—which is the buy one, take one policy of the government—then their combined income will not be enough to feed the entire family," stated Renato Magtubo, PM chairperson.

The group’s actual computation only shows P984 but its study did not provide for savings and social security which in the government’s basket of goods and services constitutes 10% of the cost of living. Furthermore, PM's study did not include items such as leisure and recreation, and the family budget for health excluded medical expenses. Magtubo said that "If we include such items, and we must in a more accurate survey, then the cost of living will easily breach P1,000 per day."

He added that "The National Wages and Productivity Council's (NWPC) cost of living estimate of P917 in September 2008 has to be updated in the light of this study and in the face of continuing inflation. We wonder if the NWPC stopped releasing cost of living estimates because it unwittingly exposes the cheap labor policy of the government." PM thus concludes that even if the P75 wage petition is granted by the NCR wage board, such will not be enough to bridge the huge gap between the minimum wage and the cost of living.
The group is advocating for the establishment of a National Wage Commission. “The National Wage Commission will be different from the wage boards in that its mandate is to fix wages based on the single criterion of cost of living. And despite the huge gap between the present minimum wage and the current cost of living, the National Wage Commission can achieve equalizing the two by a host of mechanisms among which are direct wage increases, tax exemptions, price discounts at social security subsidies for workers,” Magtubo explained.

He also argued that "Since we should not impose the burden of household chores and child rearing to the female parent, then the basket of goods should provide for a house-help. That is not anymore a luxury especially in the light of the insistence of the state that both parents must work instead of having just a single breadwinner."