DOLE asked to call labor,employers to dialogue on layoffs in airlines, other sectors

The labor group Partido Manggagawa (PM) called on the Department of Labor and Employment (DOLE) to convene conferences between the airline industry and union or worker representatives to formulate measures to preserve jobs. “Mass layoffs should be the last resort of employers and government must pro-actively act to prevent it. Unemployment is a real terror to workers than any threat from terrorist groups,” asserted Rene Magtubo, PM national chair.

He added that “DOLE, hoy gising, di pwedeng natutulog sa pansitan. DOLE cannot be a bystander looking at unemployment figures rise and content with asking employers to report retrenchments—which is what the agency is doing at the moment.”

PM is asking DOLE to immediately hold labor-industry dialogues in the airlines industry and other sectors where jobs are being shed. The group reports that factories in export processing zones are preparing to permanently or temporarily lay off workers in the next few weeks allegedly due to reduced orders from abroad. Expressway workers are also on the chopping block as toll operations are transitioning to cashless mode and will be fully automated.

“In these tripartite dialogues, various measures can be tabled for agreement. For example, as the economy is gradually opened then workers can return to work in batches and those not reporting for work shall be put in a labor pool instead of being retrenched. While in the labor pool, these workers shall receive aid from government and employers. After six months, employers can then decide if these workers will be retained or fired,” Magtubo explained.

The group also demands that government formulate emergency employment measures and expand unemployment insurance programs through tripartite dialogue. PM is appealing to Congress to revise the proposed stimulus bill so that aid to business is conditional on a no layoff, no endo commitment.

“MSME’s that will receive support from government should retain workers and make them regular. Taxpayer’s money should incentivize compliance with decent work and the new normal must be built on inclusive growth. Workers first in the new normal,” Magtubo insisted.

June 19, 2020

Subsidy to airlines must have pro-labor conditionalities

Photo from Asian Nikkei

The labor group Partido Manggagawa (PM) asserted that any subsidy for the airline industry must be tied to conditionalities. “Public aid to private corporations, especially big business like airlines, should enhance social justice and workers’ rights. We demand that taxpayer bailout of the three local airlines must be conditional,” declared Rene Magtubo, PM national chair.

He added that “Specifically, these conditions should include no layoffs, reinstatement of those already retrenched this year and institution of worker representation in the corporate boards of the airline companies. The airlines’ demand for P8.6 billion per month would easily surpass in two months the P3 billion spent for DOLE’s CAMP and P10 billion for SBWS that benefited workers. Withholding taxes levied on workers constitute the biggest portion of the tax revenues and thus labor is a stakeholder in any disbursement of people’s money.”

Last February 28, Philippine Airlines (PAL) announced a mass layoff of 300 regular employees allegedly due to the impact of covid. Then in March 19, Cebu Pacific let go of 150 cabin crew on probationary status because of covid travel bans. Finally on April 3, the 1Aviation Groundhandling Services Corp. retrenched 400 workers who were due to be regularized. The company services Cebu Pacific and is a joint venture of the Gokongwei-owned Cebu Air Inc. and another ground handling corporation.

“These 850 fellow airline workers deserve to have their jobs back as part of the recovery of the airline industry. No one must be left behind as the airline industry gets back on its feet with the help of taxpayer’s money,” insisted Eugene Soriano, former treasurer of the union PAL Employees Association (PALEA).

He demanded that PAL, before it receives any government subsidy, must implement the 2013 settlement agreement forged between the airline and PALEA to reinstate 600 employees retrenched in 2011 due to a controversial outsourcing program.

Magtubo argued that if the airlines would reject conditionalities on state aid for the airlines, the industry might as well be nationalized. “If the three airlines can only survive on taxpayer support, then nationalization is another option. Three private airlines competing for reduced passenger demand is an inefficient utilization of capital,” he averred.

PM’s demand for pro-labor conditionalities on government support is part of its call for “workers first in the new normal.” Part of its workers first platform are calls for ayudang sapat para sa lahat, balik trabahong ligtas, ayuda lagpas sa ECQ and makataong tugon hindi militarisasyon.

12 May 2020

PAL layoff is continuation of 2009 outsourcing plan---labor group

The labor group Partido Manggagawa (PM) today asserted that the latest retrenchment in Philippines Airlines (PAL) affecting 300 employees is a continuation of the massive outsourcing plan of 2009.

“Since 2011 PAL has been laying off regular employees and outsourcing the work to contractors who hire endo workers. PAL is just using the covid-19 travel ban and alleged financial losses as alibi for the latest round of contractualization at the flag carrier,” stated Rene Magtubo, PM chair. PM was the main supporter of the PAL union Philippine Airlines Employees Association (PALEA) in the outsourcing dispute from 2009 to 2013.

“In a labor-management consultative council meeting on August, 26, 2009, a controversial outsourcing plan to closed down the departments of information technology, human resources, benefits, legal, medical, revenue accounting, ticket offices, airport services, catering and reservations was unveiled. Despite opposition by PALEA, on September 30, 2011, PAL laid off 2,600 workers in airport services, catering and reservations and then subcontracted the work to three service providers. This means that the recent separation of 300 employees has been in the works for the last 11 years. Management was just waiting for an expedient time to outsource once more,” explained Alnem Pretencio, PALEA vice president and outsourced worker in 2011.

Pretencio added that “In 2015, PAL also fired 117 employees assigned in the provincial airports. A notice of strike is still pending due to that illegal dismissal. And much earlier in 2001, PAL laid off 1,400 union members and outsourced the whole maintenance and engineering department to the Lucio Tan-Lufthansa venture Lufthansa Technik Philippines.”

Magtubo averred that “PAL’s modus operandi of dismissing workers and replacing them with contractual workers in service providers is pretty well established. At the very least, PAL’s allegations of losses as basis for retrenchment should be taken with a grain of salt.”

“In fact, the epidemic of endo is a worse plague on Filipino workers than the threat of the covid-19 virus. PAL’s recent mass layoff exposes that the problem of contractualization is as bad as ever. With President Duterte’s veto of the Security of Tenure bill last year, he definitely reneged on his promise of ending endo. Thus capitalists are emboldened anew to engage in contractualization,” Magtubo insisted.

March 1, 2020

PALEA: Outsourcing is not an industry trend

Press Release
March 20, 2011
PALEA

The Philippine Airlines Employees’ Association (PALEA) today cited sources to rebut the claim that outsourcing is an aviation industry trend that Philippine Airlines (PAL) must follow. “The typical model in the airline industry, especially in the Asia-Pacific Region, is for major airline companies, especially flag carriers or former flag carriers, to maintain ground handling and related services in-house at domestic transportation hubs,” asserted Gerry Rivera, PALEA president and Partido ng Manggagawa vice chair.

PALEA said that this is the case in Malaysia, India, Sri Lanka, Thailand, Australia, New Zealand, South Korea, Bangladesh, Taiwan and Pakistan. The group explained that in Indonesia ground handling is carried out by a joint venture between Garuda, the old flag carrier, and the airports authority. While in China ground handling is typically carried out by joint ventures between airlines and airport authorities.

Rivera avowed that Malaysia Airlines provides ground-handling services to various airlines at its domestic hub. Thai Airways also maintains an in-house ground handling services at its domestic hub. “These are facts that can easily be cross checked through the websites of these airline companies,” he added.

In contrast PALEA claimed that the service providers set to take-over the functions of the regular employees do not have any demonstrable competence in providing the airline services that will be outsourced by PAL. Citing the article of journalist Raisa Robles, PALEA insisted that Manuel H. Osmeña, the alleged owner of SkyKitchen and SkyLogistics, is a long-time partner of Lucio Tan; and these corporations were only organized in 2009.

Further in India, the national Carriers Indian Airlines Ltd. and Air India Ltd., aside from two other private companies, provide ground handling services. “We have learned that in view the overall security environment, the Indian government is considering a ban on ground-handling at Indian airports by foreign airlines and Indian private companies. It is being proposed that these functions should be performed only through Indian Airlines Ltd., Air India Ltd. and Airports Authority of India or their subsidiary companies. Thus the ground handling services in India will be regulated and quality of services assured. This will also prevent mushrooming of small agencies, which pose security risk.”

‘We hope that Malacanang will not be blind to these facts in considering its decision on the legality of the planned outsourcing. We have presented these facts in a comment we submitted to the Office of the President last February 24,” Rivera ended.