PM slams PAL service providers as illegal contractors

Press Release

September 8, 2011

Partido ng Manggagawa

The militant Partido ng Manggagawa (PM) today slammed the three third-party service providers contracted by Philippine Airlines (PAL) for the controversial outsourcing plan as illegal contractors. “The outsourcing plan should be immediately suspended and the notices of termination issued by PAL should be voided too given that the service providers are illegal labor-only contractors,” declared Renato Magtubo, PM national chair.

The legal counsels of the Philippine Airlines Employees Association (PALEA) in a press conference today produced a document from the Department of Labor and Employment (DOLE) stating that:

“This is to certify that based on our records the following entities are not registered as a contractor/subcontractor under Department Order No. 18 series of 2002:

1.      Sky Kitchen Phils., Inc.

2.      Sky Logistics Phils., Inc.

3.      SPI Global Holdings”

The certification was signed by DOLE Regional Director Raymundo Agravante on September 7, 2011.

Magtubo explained that under Section 11 (Registration of Contractors and Subcontractors) of DO 18-02, it is stated that “Failure to register shall give rise to the presumption that the contractor is engaged in labor-only contracting.”

“These bogus contractors mean that contractualization is illegal. This complements the dagdag-bawas employment contract in the service providers being offer to retrenched PAL workers,” Magtubo added.

Businessman Manny Osmena of Cebu, purported proprietor of Sky Kitchen and Sky Logistics, has long been suspected of merely fronting for PAL owner Lucio Tan as revealed in the blog of journalist Raisa Robles.

Most PAL employees to be terminated are being offered a monthly wage of just PhP 11,111.50 for working eight hours a day for six days a week. In comparison, the collective bargaining agreement between PAL and PALEA stipulates that PAL workers work 7 ½ a day for five days a week.

Also from regular employees of PAL, the outsourced workers will become contractual workers at the service providers. “PAL employees who have been working for years will be downgraded to probationary status for six months and after which he or she can simply be terminated since there is no security of tenure at the service providers,” Magtubo insisted.