Press Release
July 10, 2010
A gathering of some 100 labor leaders and trade unionists yesterday afternoon resolved to engage the government of President Noynoy Aquino in the demand to defend job security and stop the proliferation of contractualization schemes. The labor forum was sparked by the ongoing labor dispute at the Philippines Airlines in which the PAL Employees’ Association (PALEA) is fighting management’s alleged illegal contracting out of regular work.
Gerry Rivera, PALEA president, said that “We welcome the solidarity of the different labor groups in our fight against contractualization at PAL. We pledge too to support the common call of reforming the policy on contractualization.” The groups which attended the forum plan to mobilize for the coming State of the Nation Address to highlight the demand against labor contractualization.
Rivera added that “We appreciate P-Noy’s order for the Department of Labor and Employment (DOLE) to review and evaluate the midnight decision on the PAL dispute. The PAL dispute will not only be a litmus test of the Aquino government’s handling of labor management relations. It will also be an acid test of the task of cleansing the DOLE of corrupt officials and reforming the policy on labor contractualization.”
Renato Magtubo, chairperson of Partido ng Manggagawa (PM), explained that “The epidemic of contractualization is a result of failure in both policy and enforcement. There are glaring loopholes in the law that have been abused by employers to wipe out regular jobs and replace them with contractual workers that have less in wages and benefits and enjoy no security of tenure. Management is allowed by law to contract out jobs that are necessary and desirable to the business of the company. This has been interpreted to mean that practically all jobs can be outsourced, not just janitorial or security services. Thus you find factories and malls in which contractual workers outnumber regular workers several times over while all do the same job.”
Magtubo argued that “We are challenging P-Noy to make concrete his promise that democracy should work for all by certifying a set of pro-labor reform bills as urgent in his SONA. We welcome the 22-point labor platform of the Aquino administration as announced by Labor Secretary Rosalinda Baldoz. The 22-point platform is a good first step and militant workers are open to engaging with new President and the new Labor Secretary to make the promise of reform a reality.”
The labor forum was hosted by the Manggagawa sa Komunikasyon ng Pilipinas (MKP), the union of PLDT rank-and-file workers, at their office in Crossing, Mandaluyong. Aside from PALEA and MKP, other groups such as the PM, Makabayan, Alliance of Progressive Labor, United Filipino Service Workers, Alliance of Genuine Labor Organizations, United Cavite Workers Association, Samahan ng Manggagawa sa Paranaque, Samahan ng Manggagawa sa Antipolo and the former union of PNCC employees the joined the forum.
Showing posts with label spinoff. Show all posts
Showing posts with label spinoff. Show all posts
Saturday, July 10, 2010
Monday, June 28, 2010
PAL union rallies anew at DOLE, appeals “midnight decision”
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.
Wednesday, June 23, 2010
PAL union ask Noynoy for intervention in dispute
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.”
Tuesday, June 22, 2010
PAL union rally at DOLE vs. “midnight decision”
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.”
Monday, June 21, 2010
PAL union to rally vs. DOLE’s “midnight decision”
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.”
Sunday, June 20, 2010
PAL union slams DOLE’s “midnight decision” on labor dispute
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.”
Friday, May 7, 2010
Workers rally in support of PAL employees as labor dispute is heard by DOLE
Press Release
May 7, 2010
More than a hundred workers from different groups such as the labor party-list Partido ng Manggagawa (PM), the union of PLDT employees and the labor group Makabayan mobilized in support of the Philippine Airlines (PAL) workers fight against spinoff and contractualization. The solidarity rally was held as the Office of the Labor Secretary (Osec) called the PAL union and management to a mediation meeting this morning.
Renato Magtubo, PM chairperson, declared that “We call on the Office of the Labor Secretary make a decision on the PAL dispute that defends security of tenure, promotes regular jobs, respects labor rights and advances workers welfare as explicitly provided for in the Labor Code and the Philippine Constitution.”
The workers also expressed concern that the labor dispute might affect the conduct of the national elections if the conflict remains unresolved. The mediation meeting today called by the Osec is already the second attempt to seek a resolution to the dispute. The first mediation meeting last April 30 ended inconclusively. The OSec assumed jurisdiction (AJ) of the labor dispute based on an order dated April 23, 2010.
The protesters held placards that slammed the planned spinoff of PAL’s airport services, inflight catering and ticketing reservations that will lead to the mass layoff of some 3,000 workers. They slammed the spinoff as the “ugly face of contractualization in PAL.”
The solidarity mobilization came as a result of an appeal by the PAL Employees Association (PALEA) for support. Gerry Rivera, PALEA president, said that “We appeal to our brothers and sisters to set aside organizational, political and ideological divides for working class unity around an issue that concerns all workers. We further ask that solidarity actions be initiated as a continuation of protest actions that PALEA has started but is now enjoined from continuing because of the AJ order.”
“The fight of PAL employees against mass layoffs and labor contractualization is the fight of all Filipino workers. Labor unity and labor solidarity will be a key factor in the victory of the PAL employees’ struggle,” Magtubo.
Givera insisted that “PAL employees will be laid off only to be rehired for the same work in new companies and under new contracts. Regular workers will thus be replaced by contractual labor whose wages are cheaper, benefits are fewer and security of tenure is non-existent. Workers will be sacrificed to maintain the profits of Lucio Tan, already the second richest man in the country.”
“Contractualization is a scourge that has ravaged the working class and the labor movement. The livelihood and lives of workers are destroyed. Unions are busted. Organizing is made so difficult if not impossible. Labor federations and centers are severely weakened,” Magtubo explained. ###
May 7, 2010
More than a hundred workers from different groups such as the labor party-list Partido ng Manggagawa (PM), the union of PLDT employees and the labor group Makabayan mobilized in support of the Philippine Airlines (PAL) workers fight against spinoff and contractualization. The solidarity rally was held as the Office of the Labor Secretary (Osec) called the PAL union and management to a mediation meeting this morning.
Renato Magtubo, PM chairperson, declared that “We call on the Office of the Labor Secretary make a decision on the PAL dispute that defends security of tenure, promotes regular jobs, respects labor rights and advances workers welfare as explicitly provided for in the Labor Code and the Philippine Constitution.”
The workers also expressed concern that the labor dispute might affect the conduct of the national elections if the conflict remains unresolved. The mediation meeting today called by the Osec is already the second attempt to seek a resolution to the dispute. The first mediation meeting last April 30 ended inconclusively. The OSec assumed jurisdiction (AJ) of the labor dispute based on an order dated April 23, 2010.
The protesters held placards that slammed the planned spinoff of PAL’s airport services, inflight catering and ticketing reservations that will lead to the mass layoff of some 3,000 workers. They slammed the spinoff as the “ugly face of contractualization in PAL.”
The solidarity mobilization came as a result of an appeal by the PAL Employees Association (PALEA) for support. Gerry Rivera, PALEA president, said that “We appeal to our brothers and sisters to set aside organizational, political and ideological divides for working class unity around an issue that concerns all workers. We further ask that solidarity actions be initiated as a continuation of protest actions that PALEA has started but is now enjoined from continuing because of the AJ order.”
“The fight of PAL employees against mass layoffs and labor contractualization is the fight of all Filipino workers. Labor unity and labor solidarity will be a key factor in the victory of the PAL employees’ struggle,” Magtubo.
Givera insisted that “PAL employees will be laid off only to be rehired for the same work in new companies and under new contracts. Regular workers will thus be replaced by contractual labor whose wages are cheaper, benefits are fewer and security of tenure is non-existent. Workers will be sacrificed to maintain the profits of Lucio Tan, already the second richest man in the country.”
“Contractualization is a scourge that has ravaged the working class and the labor movement. The livelihood and lives of workers are destroyed. Unions are busted. Organizing is made so difficult if not impossible. Labor federations and centers are severely weakened,” Magtubo explained. ###
Thursday, April 29, 2010
All set for May 1 protest despite change in Labor Day observance
April 29, 2010
The labor party-list Partido ng Manggagawa (PM) announced that mass actions will push through on May 1 despite an executive order from Malacanang declaring instead May 3 as a non-working holiday. “All systems are go for the motorcade of 500 motorcycles with the theme ‘Sakbayan para sa Trabahong Regular at Dagdag Sahod.’ Labor Day is celebrated all over the world on May 1 and no order from Malacanang can change that,” asserted Renato Magtubo, PM chairperson.
“Divide and rule tactics not holiday economics are the real motive for shifting the observance of Labor Day to May 3 instead of May 1. Gloria Arroyo wants to split the labor movement and sabotage the militant protests planned for May 1. We call on the different labor federations and centers to continue with their May 1st activities. The labor unity rally at Mendiola will push through,” Magtubo insisted. He clarified that PM-affiliated labor unions are already negotiating with their respective companies so they can join the May 1 protests.
The group said that the May 1 motorcade will converge by 7:00 a.m. at the PAL In Flight Center along Airport Road in Paranaque to highlight the massive layoff of 3,000 Philippine Airlines workers. A short program will be held in which Gerry Rivera, PAL Employees Association president and PM vice-chairperson will be the main speaker. The motorcade will then proceed to Mendiola for a joint program with other labor groups by 10:00 a.m.
PM had already secured a permit from the Manila City Hall for a rally in Mendiola from 9:00 am to 12:00 noon on May 1. Two PM leaders attended a dialogue with police officials last April 23 and coordinated with the authorities the traffic issues concerning the May 1 motorcade. Representatives of PM are also negotiating with aviation security for the protest near the Centennial Terminal of the airport from which PAL operates.
Magtubo explained that the demand for a wage hike and regular jobs will be the focus of the Labor Day protests. He elaborated that “Malacanang’s announcement that no wage hike is forthcoming on Labor Day shows this regime’s anti-labor character up to the bitter end of its term. Moreover the retrenchment at PAL and others such as the dismissal of 450 workers at the Dyna Image electronics factory in the Cavite export zone expose the reality about the jobs situation. Such mass layoffs more or less cancel out the 18,000 new jobs that government boasts will be created in the Labor Day job fairs in Metro Manila. One thread connects the mass layoffs and job fairs—they are just two faces of contractualization. Regular jobs are being destroyed and replaced by contractual work in which wages are cheaper, benefits are fewer and security of tenure is abolished.”
The motorcade will have participants coming from riders clubs from Calabarzon and motorcycle-riding unionists from PAL, Marikina and Valenzuela. PM will also lead May 1 rallies in Cebu City, Bacolod City, Iloilo City, Iligan City and Davao City.
Tuesday, April 27, 2010
Days before Labor Day: Workers unrest over layoffs erupts
Press Release
April 27, 2010
A few days before Labor Day, workers unrest over mass layoffs and labor contractualization is erupting from export zones to the airport. More than 200 laid off workers of an electronics firm in Cavite were joined by the labor party-list Partido ng Manggagawa (PM) in a protest today at the office of the National Conciliation and Mediation Board in Imus, Cavite. Yesterday the workers of Dyna Image Corp. Phils. walked out of their factory and marched to the gates of the Cavite Economic zone in protest at management’s attempt to force employees to sign separation papers.
Meanwhile the Philippine Airlines Employees Association (PALEA) is planning another protest this Friday against the dismissal of some 3,000 workers by the end of May and the spinoff of airport services, inflight catering and call center work. Last week PALEA launched two motorcades around PAL offices in the airport area in which more than a hundred motorcycles and vehicles participated.
The Dyna Image workers protest coincided with a preventive mediation hearing called by the NCMB at 2:00 pm today. The newly-formed Samahan ng Manggagawa sa Dyna Image Corp. Phils. filed last week complaints of illegal retrenchment and harassment. “We do not believe the company’s claims of the financial losses due to the economic crisis since production is in full blast and workers are doing overtime work,” insisted Virgielita Morite, president of the Dyna Image union.
In the protest at the NCMB-Cavite today, workers held placards that read “DOLE: Stop the layoffs,” “Layoffs should be the last not the first option” and “No to contractualization.” Dennis Sequena, a leader of PM-Cavite, said that “Workers suspect that Dyna Image will just replace regular workers with contractuals whose wages will be cheaper, receive fewer benefits and have no security of tenure. Why are workers the first to bear the burden of the economic crisis when we are the last to benefit during the period of boom?”
Gerry Rivera, president of PALEA and vice-chairperson of PM, argued that “PAL is propagating the myth that the jobs to be spun off are non-core units. But how can an airline function without ground crew that handles ticketing reservations, inflight catering and airport services? These are jobs that are essential to PAL’s smooth and safe operation. Management is juggling words as an alibi for contractualization.”
The Dyna Image union and PALEA will participate in the PM-led Labor Day protest on May 1. More than a thousand workers riding some 500 motorcycles will take part in a “Sakbayan Para sa Dagdag Sahod at Trabahong Regular.” The motorcade will be led by riders clubs in Cavite, Laguna and Batangas whose membership are overwhelmingly workers.
April 27, 2010
A few days before Labor Day, workers unrest over mass layoffs and labor contractualization is erupting from export zones to the airport. More than 200 laid off workers of an electronics firm in Cavite were joined by the labor party-list Partido ng Manggagawa (PM) in a protest today at the office of the National Conciliation and Mediation Board in Imus, Cavite. Yesterday the workers of Dyna Image Corp. Phils. walked out of their factory and marched to the gates of the Cavite Economic zone in protest at management’s attempt to force employees to sign separation papers.
Meanwhile the Philippine Airlines Employees Association (PALEA) is planning another protest this Friday against the dismissal of some 3,000 workers by the end of May and the spinoff of airport services, inflight catering and call center work. Last week PALEA launched two motorcades around PAL offices in the airport area in which more than a hundred motorcycles and vehicles participated.
The Dyna Image workers protest coincided with a preventive mediation hearing called by the NCMB at 2:00 pm today. The newly-formed Samahan ng Manggagawa sa Dyna Image Corp. Phils. filed last week complaints of illegal retrenchment and harassment. “We do not believe the company’s claims of the financial losses due to the economic crisis since production is in full blast and workers are doing overtime work,” insisted Virgielita Morite, president of the Dyna Image union.
In the protest at the NCMB-Cavite today, workers held placards that read “DOLE: Stop the layoffs,” “Layoffs should be the last not the first option” and “No to contractualization.” Dennis Sequena, a leader of PM-Cavite, said that “Workers suspect that Dyna Image will just replace regular workers with contractuals whose wages will be cheaper, receive fewer benefits and have no security of tenure. Why are workers the first to bear the burden of the economic crisis when we are the last to benefit during the period of boom?”
Gerry Rivera, president of PALEA and vice-chairperson of PM, argued that “PAL is propagating the myth that the jobs to be spun off are non-core units. But how can an airline function without ground crew that handles ticketing reservations, inflight catering and airport services? These are jobs that are essential to PAL’s smooth and safe operation. Management is juggling words as an alibi for contractualization.”
The Dyna Image union and PALEA will participate in the PM-led Labor Day protest on May 1. More than a thousand workers riding some 500 motorcycles will take part in a “Sakbayan Para sa Dagdag Sahod at Trabahong Regular.” The motorcade will be led by riders clubs in Cavite, Laguna and Batangas whose membership are overwhelmingly workers.
Friday, April 23, 2010
PAL union holds new protest vs. mass layoff of 3,000 workers
Press Release
April 23, 2010
Philippine Airlines employees will hold a new motorcade today against the planned layoff of an estimated 3,000 employees by May 31. The motorcade will start at 10:30 a.m. at the Department of Labor and Employment office in Intramuros then proceed to the PAL Center at the PNB Compound along Diosdado Macapagal Ave., then move on to the PAL In Flight Center along Airport Road and then end at the Nichols terminal.
“The fight against mass layoffs in PAL continues,” declared Gerry Rivera, president of the PAL Employees Association (PALEA) and vice-chairperson of Partido ng Manggagawa (PM). The protests started last Monday with more than 200 employees participating in a motorcade of 100 motorcycles and cars.
“PAL is propagating the myth that the jobs to be spun off are non-core units. But how can passenger airlines function without ground crew that handles ticketing reservations, cargo handling and in flight catering? These are jobs that are essential to PAL’s smooth and safe operation, or in the language of the labor code, work that is necessary and desirable to the principal business of the company,” Rivera insisted.
The party-list PM expressed support to the struggle of PAL workers. “The fight of PAL employees is the fight of Filipino workers. Contractualization is a scourge that is ravaging the lives of workers and their families,” stated Renato Magtubo, PM chairperson.
Rivera added that “PAL is juggling words as an alibi for contractualization. If Lucio Tan is indeed losing money in PAL, he can just close it down. But instead he will just layoff regular workers and replace us with contractual workers with lower wages, less benefits and no security of tenure. No wonder Lucio Tan is one of the richest Filipinos.”
PM is calling on the labor movement to close ranks and launch solidarity with the fight of PAL employees. “The protests against spinoff will continue until Labor Day on May 1. The twin themes of the coming Labor Day commemoration are the demand for regular jobs and wage hike,” Magtubo explained.
April 23, 2010
Philippine Airlines employees will hold a new motorcade today against the planned layoff of an estimated 3,000 employees by May 31. The motorcade will start at 10:30 a.m. at the Department of Labor and Employment office in Intramuros then proceed to the PAL Center at the PNB Compound along Diosdado Macapagal Ave., then move on to the PAL In Flight Center along Airport Road and then end at the Nichols terminal.
“The fight against mass layoffs in PAL continues,” declared Gerry Rivera, president of the PAL Employees Association (PALEA) and vice-chairperson of Partido ng Manggagawa (PM). The protests started last Monday with more than 200 employees participating in a motorcade of 100 motorcycles and cars.
“PAL is propagating the myth that the jobs to be spun off are non-core units. But how can passenger airlines function without ground crew that handles ticketing reservations, cargo handling and in flight catering? These are jobs that are essential to PAL’s smooth and safe operation, or in the language of the labor code, work that is necessary and desirable to the principal business of the company,” Rivera insisted.
The party-list PM expressed support to the struggle of PAL workers. “The fight of PAL employees is the fight of Filipino workers. Contractualization is a scourge that is ravaging the lives of workers and their families,” stated Renato Magtubo, PM chairperson.
Rivera added that “PAL is juggling words as an alibi for contractualization. If Lucio Tan is indeed losing money in PAL, he can just close it down. But instead he will just layoff regular workers and replace us with contractual workers with lower wages, less benefits and no security of tenure. No wonder Lucio Tan is one of the richest Filipinos.”
PM is calling on the labor movement to close ranks and launch solidarity with the fight of PAL employees. “The protests against spinoff will continue until Labor Day on May 1. The twin themes of the coming Labor Day commemoration are the demand for regular jobs and wage hike,” Magtubo explained.
Thursday, April 22, 2010
Panibagong protesta kontra tanggalan ng 3,000 empleyado ng PAL
Press Release
April 22, 2010
Maglulunsad bukas ng isang panibagong motorcade ang mga empleyado ng Philippine Airlines kontra sa planong tanggalan ng 3,000 manggagawa. Ang motorcade ay magsisimula ng 10:30 n.u. sa Department of Labor and Employment sa Intramuros tapos tutungo sa PAL Center sa PNB Compound sa Diosdado Macapagal Ave., pupunta sa PAL In Flight Center sa Airport Road at magtatapos sa Nichols terminal.
“Tuloy ang laban sa malawakang tanggalan sa PAL,” paliwanag ni Gerry Rivera, bagong halal na pangulo ng PAL Employees Association at vice-chairperson ng Partido ng Manggagawa. Nagsimula ang protesta laban sa tanggalan sa isang motorcade noong Lunes na nilahukan ng lagpas lagpas 200 tao na sakay ng 100 motorsiklo at kotse.
“Ang layunin ng spinoff ay ibigay ang trabaho sa ibang kompanya na pag-aari pa rin ni Lucio Tan pero ang mga manggagawa ay hindi unyonisado kung kaya’t mas barat ang sweldo, kapos ang benepisyo at walang seguridad ang trabaho. Tatanggalin ang mga regular na manggagawa at papalitan sila ng mga empleyadong kontraktwal. Nangyari na ito dati nang ilipat ang ibang linya ng PAL sa Lufthansa Technik at Macro Asia kung saan stockholder si Lucio Tan,” iginiit ni Rivera.
Sinusuportahan ng party-list na Partido ng Manggagawa ang ipinaglalaban ng unyon ng PAL. “Ang laban ng mga empleyado ng PAL ay laban ng lahat ng manggagawang Pilipino. Ang kontraktwalisasyon ay isang virus na pumepesta sa kabuhayan ng mga manggagawa at kanilang pamilya,” pahayag ni Renato Magtubo, tagapangulo ng Partido ng Manggagawa.
Nananawagan ang Partido ng Manggagawa sa kilusang paggawa na magkaisa at makiisa sa laban ng mga empleyado ng PAL. “Magtutuloy ang mga pagkilos hanggang sa Araw ng Paggawa sa Mayo Uno. Ang kahilingan ng mga manggagawa sa Mayo Uno ay regular na trabaho at umento sa sweldo,” ani Magtubo.
April 22, 2010
Maglulunsad bukas ng isang panibagong motorcade ang mga empleyado ng Philippine Airlines kontra sa planong tanggalan ng 3,000 manggagawa. Ang motorcade ay magsisimula ng 10:30 n.u. sa Department of Labor and Employment sa Intramuros tapos tutungo sa PAL Center sa PNB Compound sa Diosdado Macapagal Ave., pupunta sa PAL In Flight Center sa Airport Road at magtatapos sa Nichols terminal.
“Tuloy ang laban sa malawakang tanggalan sa PAL,” paliwanag ni Gerry Rivera, bagong halal na pangulo ng PAL Employees Association at vice-chairperson ng Partido ng Manggagawa. Nagsimula ang protesta laban sa tanggalan sa isang motorcade noong Lunes na nilahukan ng lagpas lagpas 200 tao na sakay ng 100 motorsiklo at kotse.
“Ang layunin ng spinoff ay ibigay ang trabaho sa ibang kompanya na pag-aari pa rin ni Lucio Tan pero ang mga manggagawa ay hindi unyonisado kung kaya’t mas barat ang sweldo, kapos ang benepisyo at walang seguridad ang trabaho. Tatanggalin ang mga regular na manggagawa at papalitan sila ng mga empleyadong kontraktwal. Nangyari na ito dati nang ilipat ang ibang linya ng PAL sa Lufthansa Technik at Macro Asia kung saan stockholder si Lucio Tan,” iginiit ni Rivera.
Sinusuportahan ng party-list na Partido ng Manggagawa ang ipinaglalaban ng unyon ng PAL. “Ang laban ng mga empleyado ng PAL ay laban ng lahat ng manggagawang Pilipino. Ang kontraktwalisasyon ay isang virus na pumepesta sa kabuhayan ng mga manggagawa at kanilang pamilya,” pahayag ni Renato Magtubo, tagapangulo ng Partido ng Manggagawa.
Nananawagan ang Partido ng Manggagawa sa kilusang paggawa na magkaisa at makiisa sa laban ng mga empleyado ng PAL. “Magtutuloy ang mga pagkilos hanggang sa Araw ng Paggawa sa Mayo Uno. Ang kahilingan ng mga manggagawa sa Mayo Uno ay regular na trabaho at umento sa sweldo,” ani Magtubo.
Monday, April 19, 2010
PAL union hold motorcade vs. planned layoff of 3,000 employees
Press Release
April 19, 2010
Philippine Airlines (PAL) employees held a motorcade today in protest at a massive retrenchment to be implemented on May 31. An estimated 3,000 employees, more than half of the total PAL workforce, will be laid off due to the closure of the in flight catering services, airport services (which includes ground, cargo and ramp handling) and call center reservations including all support units.
The motorcade of some 40 cars and motorcycles started around 11:30 am at the PAL Center located at the PNB Compound along the Diosdado Macapagal Ave. in Pasay City. The motorcade moved on to Nichols airport terminal then onto the PAL In Flight Center (IFC) along Airport Road in Paranaque and finally ended at the Terminal 3 of the airport.
Gerry Rivera, newly elected president of the PAL Employees Association (PALEA) and vice-chairperson of the party-list Partido ng Manggagawa (PM), said that “Spinoff aims to outsource work to companies also owned by Lucio Tan where workers will be non-union and thus receive cheaper wages, fewer benefits and have no security of tenure. Regular workers will be retired and then rehired as contractuals. This has happened before when work was spun off to Lufthansa Technik and Macro Asia, in which Lucio Tan both had major interests. Employees retrenched from PAL because of the spinoff were employed by Macro Asia and Lufthansa Technik on new contracts.”
Renato Magtubo, PM chairperson, meanwhile expressed support to the struggle of the PAL workers. He asserted that “We challenge the presidentiables to state their position on the scourge of contractualization and their platform on job generation. The workers are not satisfied with motherhood statements but want to hear concrete programs.”
Rivera explained that the motorcade is only the opening salvo in the fight against massive layoff in PAL. Plans to spinoff the same departments last year were stopped by protests by PAL workers led by Rivera. He insisted that “Spinoff is not a solution to company losses but a scheme to contractualize labor and raise more profit not from better efficiency of work but from greater exploitation of workers.”
PALEA was furnished a memo by PAL President and CEO Jaime Bautista dated April 16 which announced the planned layoff. Before the motorcade, the PALEA protesters attended at hearing at the DOLE-NCR for an interpleader filed by PAL management. The PAL union is alleging that an election protest filed by losing candidates in union elections held last February is part of the scheme to weaken PALEA in the face of the fight against spinoff and layoff.
April 19, 2010
Philippine Airlines (PAL) employees held a motorcade today in protest at a massive retrenchment to be implemented on May 31. An estimated 3,000 employees, more than half of the total PAL workforce, will be laid off due to the closure of the in flight catering services, airport services (which includes ground, cargo and ramp handling) and call center reservations including all support units.
The motorcade of some 40 cars and motorcycles started around 11:30 am at the PAL Center located at the PNB Compound along the Diosdado Macapagal Ave. in Pasay City. The motorcade moved on to Nichols airport terminal then onto the PAL In Flight Center (IFC) along Airport Road in Paranaque and finally ended at the Terminal 3 of the airport.
Gerry Rivera, newly elected president of the PAL Employees Association (PALEA) and vice-chairperson of the party-list Partido ng Manggagawa (PM), said that “Spinoff aims to outsource work to companies also owned by Lucio Tan where workers will be non-union and thus receive cheaper wages, fewer benefits and have no security of tenure. Regular workers will be retired and then rehired as contractuals. This has happened before when work was spun off to Lufthansa Technik and Macro Asia, in which Lucio Tan both had major interests. Employees retrenched from PAL because of the spinoff were employed by Macro Asia and Lufthansa Technik on new contracts.”
Renato Magtubo, PM chairperson, meanwhile expressed support to the struggle of the PAL workers. He asserted that “We challenge the presidentiables to state their position on the scourge of contractualization and their platform on job generation. The workers are not satisfied with motherhood statements but want to hear concrete programs.”
Rivera explained that the motorcade is only the opening salvo in the fight against massive layoff in PAL. Plans to spinoff the same departments last year were stopped by protests by PAL workers led by Rivera. He insisted that “Spinoff is not a solution to company losses but a scheme to contractualize labor and raise more profit not from better efficiency of work but from greater exploitation of workers.”
PALEA was furnished a memo by PAL President and CEO Jaime Bautista dated April 16 which announced the planned layoff. Before the motorcade, the PALEA protesters attended at hearing at the DOLE-NCR for an interpleader filed by PAL management. The PAL union is alleging that an election protest filed by losing candidates in union elections held last February is part of the scheme to weaken PALEA in the face of the fight against spinoff and layoff.
Saturday, February 27, 2010
Militants win PAL union elections, vow to fight spinoff
Press Release
February 27, 2010
Militants won a landslide victory in the elections for the Philippine Airlines (PAL) ground crew union, 12 years after the controversial moratorium in the collective bargaining agreement (CBA) of 1998. Campaigning on a platform of defending job security, the militants will immediately face a challenge as PAL reportedly plans to spinoff departments and layoff employees this coming April.
“After 12 long years, PAL employees again have a union that will protect their rights and welfare, including job security,” exclaimed Gerry Rivera, who will assume on March 29 the position of president of the PAL Employees Association (PALEA), which is one of the biggest unions in the country with about 4,000 members.
Members of the labor party-list Partido ng Manggagawa (PM) won the top three national union positions and their local party called Sulong PALEANS cornered 13 of the 21-member union board. The elections were held last Thursday, February 25, but the ballots were only finally tallied last night with the winners proclaimed by the union Comelec and DOLE-NCR representatives.
Rivera is also vice chairperson of PM and has been a nominee of the group in the past party-list elections. He was vice president of PALEA during the PAL strike of 1998 which was arguably the biggest labor dispute of the 90’s. After owner Lucio Tan temporarily shutdown PAL, PAL employees were forced to agree to a 10-year CBA moratorium that has been extended twice since 2008.
The fight against spinoff and outsourcing will be a key task of the incoming union leadership according to Rivera. September of last year, PAL management announced that it will outsource passenger handling, ramp handling, cargo handling and catering by November that will result in the layoff of at least 2,000 PAL employees. Rivera’s Sulong PALEANS led protests by PAL employees that temporarily shelved the plan.
Rivera also revealed that PALEA will now insist on negotiations for a new CBA. “Through the CBA, we will ensure that security of tenure is guaranteed. No spinoff or layoff must happen if the union does not agree,” he explained.
“Contractualization is a virus that has ravaged the workers, depriving them of security of tenure, decent wages and benefits. If PAL employees are successful in resisting management’s drive to outsource work, then hopefully we can help reverse the epidemic of contractualization. The defeat of the 1998 PALEA strike and the 10-year moratorium opened a period of retreat for the labor movement. But a victorious fight against spinoff and layoff in PAL can be a turning point in the revival of working class struggles for job security,” stated Rivera.
February 27, 2010
Militants won a landslide victory in the elections for the Philippine Airlines (PAL) ground crew union, 12 years after the controversial moratorium in the collective bargaining agreement (CBA) of 1998. Campaigning on a platform of defending job security, the militants will immediately face a challenge as PAL reportedly plans to spinoff departments and layoff employees this coming April.
“After 12 long years, PAL employees again have a union that will protect their rights and welfare, including job security,” exclaimed Gerry Rivera, who will assume on March 29 the position of president of the PAL Employees Association (PALEA), which is one of the biggest unions in the country with about 4,000 members.
Members of the labor party-list Partido ng Manggagawa (PM) won the top three national union positions and their local party called Sulong PALEANS cornered 13 of the 21-member union board. The elections were held last Thursday, February 25, but the ballots were only finally tallied last night with the winners proclaimed by the union Comelec and DOLE-NCR representatives.
Rivera is also vice chairperson of PM and has been a nominee of the group in the past party-list elections. He was vice president of PALEA during the PAL strike of 1998 which was arguably the biggest labor dispute of the 90’s. After owner Lucio Tan temporarily shutdown PAL, PAL employees were forced to agree to a 10-year CBA moratorium that has been extended twice since 2008.
The fight against spinoff and outsourcing will be a key task of the incoming union leadership according to Rivera. September of last year, PAL management announced that it will outsource passenger handling, ramp handling, cargo handling and catering by November that will result in the layoff of at least 2,000 PAL employees. Rivera’s Sulong PALEANS led protests by PAL employees that temporarily shelved the plan.
Rivera also revealed that PALEA will now insist on negotiations for a new CBA. “Through the CBA, we will ensure that security of tenure is guaranteed. No spinoff or layoff must happen if the union does not agree,” he explained.
“Contractualization is a virus that has ravaged the workers, depriving them of security of tenure, decent wages and benefits. If PAL employees are successful in resisting management’s drive to outsource work, then hopefully we can help reverse the epidemic of contractualization. The defeat of the 1998 PALEA strike and the 10-year moratorium opened a period of retreat for the labor movement. But a victorious fight against spinoff and layoff in PAL can be a turning point in the revival of working class struggles for job security,” stated Rivera.
Thursday, September 24, 2009
PAL union brings case vs. contractualization and labor rights violation to ILO
PRESS RELEASE
24 September 2009
Rampant violation of labor rights in the country is most probably the cause why the International Labor Organization’s (ILO) High Level Mission to the Philippines is swamped by many complaints that go beyond the mission’s specific mandate of looking into the eight particular cases brought before the body in 2007.
Once such additional complaint is from Philippine Airline employees who face a second wave of mass retrenchment due to the management’s planned spin-off of its ground handling operations and other functions beginning November 15, 2009.
Philippine Airlines Employees Association of the Philippines (PALEA) president, Gerry Rivera, said the ILO forum yesterday was very memorable for them since it was also on September 23, 1998 that PAL ceased its operations and sent termination notices to its employees. This was after employees rejected Lucio Tan’s proposal to offer stocks options to its employees and three seats in the Board of Directors, on the condition that all the existing Collective Bargaining Agreements (CBAs) with its employees would be suspended for 10 years.
Upon intervention from Malacanang, however, employees were forced to accept the CBA suspension. Rivera, who is also the Vice President of Partido ng Manggagawa (PM), said “the continuing saga of contractualization and labor rights violation all began from here.”
Another round of retrenchment in the offing
The PALEA leader disclosed that on September 9, 2009, Philippine Airlines President & Chief Operating Officer, Jaime J. Bautista, in a memorandum, informed the Philippine Airlines Employees Association (PALEA) of the management’s plan to outsource/spin-off some operational units. The memorandum is but a formalization of the company’s earlier verbal notices to the Union.
Citing heavy losses and to prevent further bleeding, PAL is planning to outsource/spin-off the Catering, Passenger Handling, Ramp Handling and Cargo Handling operations. The management is also studying the possibility of doing the same to other functions such as the Information Technology, Revenue Accounting, Reservations and Call Centers, Medical and other Human Resources Operations.
“Once implemented, this second wave of outsourcing/spin-off will affect the job security of some 2,000 – 4,000 PAL employees currently assigned in those departments. And expected to be done under the same scheme that the management had employed in 2001, the remaining 7,000 PAL employees are therefore in for another round of mass retrenchment,” said Rivera.
Worse, adds Rivera, the plan may cast the proverbial last nail on the coffin for the PAL union which, for the last ten years, has been weakened and undermined by previous spin-offs and outsourcing, notwithstanding the effects of the state-sanctioned 10-Year CBA moratorium implemented since 1998.
10-Year CBA Moratorium 1998
The 10-Year suspension of PAL-PALEA CBA in 1998 was first in Philippine history, and perhaps one of the most blatant violations of ILO Conventions in the country on the right to organize and collectively bargain.
The management, with full blessings from the government, used the 1997 Asian financial crisis and the crippling pilot strike in 1998 against union-busting as pretext to force the issue of a moratorium despite strong opposition from PAL employees and the Philippine labor movement as a whole.
“Unfortunately, the Supreme Court came out with a surprisingly controversial decision affirming the validity of the CBA suspension,” Rivera said.
The decision created the jurisprudence that a CBA contract can be suspended even beyond its mandated lifetime. The decision also put PAL workers in limbo on how to exercise their Constitutionally-mandated right to organize, collectively bargain, and to strike.
As a consequence, internal conflict arose in the union afterwards as the management refused to recognize the new set of officers that won the union elections in April 2002, in clear violation of Conventions 87 and 98. The case remains pending before the Supreme Court.
On June 1998, PAL workers were rendered defenseless against the first wave of retrenchment which affected some 5,000 employees out of the approximately 14,000 employees before the 1998 strike. Included from those retrenched were some 1,400 flight attendants who were members of the Flight Attendants and Stewards Association of the Philippines (FASAP), who, just recently won a Supreme Court decision against illegal dismissal.
Spin-off 2001
On 2001, the Maintenance and Engineering Department was spun-off to a joint venture of Lufthansa Technik Philippines and MacroAsia Airport Services where PAL owner Lucio Tan Sr. also holds interests. MacroAsia’s Chairman of the Board is Lucio Tan, Jr., its President and CEO is Joseph Chua, the son-in law, while PAL President Jaime Bautista is the Treasurer. As a result, former PAL employees and PALEA members were terminated from PAL and rehired as contractual employees for Lufthansa Technik, and MacroAsia, of course, without the rights and benefits they previously enjoyed as PAL and unionized employees.
“The move was a classic example of how the PAL management has managed to implement contractualization scheme in the airline business effectively undercutting labor rights and undermining the Union existence,” lamented Rivera.
Spin-off 2009
PAL employees fear that the same spin-off and outsourcing scheme is going to happen now. This time, however, there is only a world recession to blame but no crippling strike the management can condemn. “Yet, there is a contractualization scheme to impose to once again to make labor assume the burden of flawed management decisions since the time PAL was privatized in the early 90s,” said Rivera.
In a Labor Management Council Meeting held last September 8, 2009, the PAL President & COO told the Union that the management has already invited prospective bidders for those departments targeted for spin-off. Again, as expected, one interested bidder is Lucio Tan’s MacroAsia Airport Services.
“It seems 10 years of labor sacrifice were not yet enough. Again, to save PAL from its current financial mess, the management is asking PAL employees to bleed some more,” explained Rivera.
Today, the PAL union has put forward the following recommendations as the ILO High level mission is set to meet with concerned government bodies and employers’ representatives.
1. For the Malacanang to certify as priority bill the passage of the proposed Security of Tenure bill and for Congress to pass the same in order to align the Labor Code to the letter and spirit of Convention 87 and 98. The security of tenure bill seeks to amend the pertinent provisions of the Labor Code to strictly regulate the practice of labor contracting and plug the loopholes in the law.
2. For the Labor Department to review Department Order No 18 specifying allowable and illegal forms of labor contracting. The Department Order has significantly liberalized the scope of legal contracting, thus giving legal blanket to outsourcing such as the PAL spinoff even if it weakens unions.
3. For the PAL management to suspend the planned outsourcing/spin-off.
4. For the Supreme Court to decide with dispatch on GR 155097 on the local election dispute within PALEA considering the inordinately long time of 7 years.
5. For the Congress and the Supreme Court to consider forming a special court or special division to handle purely labor cases to expedite the disposition of mounting cases at the NLRC, Court of Appeals, and the Supreme Court.
24 September 2009
Rampant violation of labor rights in the country is most probably the cause why the International Labor Organization’s (ILO) High Level Mission to the Philippines is swamped by many complaints that go beyond the mission’s specific mandate of looking into the eight particular cases brought before the body in 2007.
Once such additional complaint is from Philippine Airline employees who face a second wave of mass retrenchment due to the management’s planned spin-off of its ground handling operations and other functions beginning November 15, 2009.
Philippine Airlines Employees Association of the Philippines (PALEA) president, Gerry Rivera, said the ILO forum yesterday was very memorable for them since it was also on September 23, 1998 that PAL ceased its operations and sent termination notices to its employees. This was after employees rejected Lucio Tan’s proposal to offer stocks options to its employees and three seats in the Board of Directors, on the condition that all the existing Collective Bargaining Agreements (CBAs) with its employees would be suspended for 10 years.
Upon intervention from Malacanang, however, employees were forced to accept the CBA suspension. Rivera, who is also the Vice President of Partido ng Manggagawa (PM), said “the continuing saga of contractualization and labor rights violation all began from here.”
Another round of retrenchment in the offing
The PALEA leader disclosed that on September 9, 2009, Philippine Airlines President & Chief Operating Officer, Jaime J. Bautista, in a memorandum, informed the Philippine Airlines Employees Association (PALEA) of the management’s plan to outsource/spin-off some operational units. The memorandum is but a formalization of the company’s earlier verbal notices to the Union.
Citing heavy losses and to prevent further bleeding, PAL is planning to outsource/spin-off the Catering, Passenger Handling, Ramp Handling and Cargo Handling operations. The management is also studying the possibility of doing the same to other functions such as the Information Technology, Revenue Accounting, Reservations and Call Centers, Medical and other Human Resources Operations.
“Once implemented, this second wave of outsourcing/spin-off will affect the job security of some 2,000 – 4,000 PAL employees currently assigned in those departments. And expected to be done under the same scheme that the management had employed in 2001, the remaining 7,000 PAL employees are therefore in for another round of mass retrenchment,” said Rivera.
Worse, adds Rivera, the plan may cast the proverbial last nail on the coffin for the PAL union which, for the last ten years, has been weakened and undermined by previous spin-offs and outsourcing, notwithstanding the effects of the state-sanctioned 10-Year CBA moratorium implemented since 1998.
10-Year CBA Moratorium 1998
The 10-Year suspension of PAL-PALEA CBA in 1998 was first in Philippine history, and perhaps one of the most blatant violations of ILO Conventions in the country on the right to organize and collectively bargain.
The management, with full blessings from the government, used the 1997 Asian financial crisis and the crippling pilot strike in 1998 against union-busting as pretext to force the issue of a moratorium despite strong opposition from PAL employees and the Philippine labor movement as a whole.
“Unfortunately, the Supreme Court came out with a surprisingly controversial decision affirming the validity of the CBA suspension,” Rivera said.
The decision created the jurisprudence that a CBA contract can be suspended even beyond its mandated lifetime. The decision also put PAL workers in limbo on how to exercise their Constitutionally-mandated right to organize, collectively bargain, and to strike.
As a consequence, internal conflict arose in the union afterwards as the management refused to recognize the new set of officers that won the union elections in April 2002, in clear violation of Conventions 87 and 98. The case remains pending before the Supreme Court.
On June 1998, PAL workers were rendered defenseless against the first wave of retrenchment which affected some 5,000 employees out of the approximately 14,000 employees before the 1998 strike. Included from those retrenched were some 1,400 flight attendants who were members of the Flight Attendants and Stewards Association of the Philippines (FASAP), who, just recently won a Supreme Court decision against illegal dismissal.
Spin-off 2001
On 2001, the Maintenance and Engineering Department was spun-off to a joint venture of Lufthansa Technik Philippines and MacroAsia Airport Services where PAL owner Lucio Tan Sr. also holds interests. MacroAsia’s Chairman of the Board is Lucio Tan, Jr., its President and CEO is Joseph Chua, the son-in law, while PAL President Jaime Bautista is the Treasurer. As a result, former PAL employees and PALEA members were terminated from PAL and rehired as contractual employees for Lufthansa Technik, and MacroAsia, of course, without the rights and benefits they previously enjoyed as PAL and unionized employees.
“The move was a classic example of how the PAL management has managed to implement contractualization scheme in the airline business effectively undercutting labor rights and undermining the Union existence,” lamented Rivera.
Spin-off 2009
PAL employees fear that the same spin-off and outsourcing scheme is going to happen now. This time, however, there is only a world recession to blame but no crippling strike the management can condemn. “Yet, there is a contractualization scheme to impose to once again to make labor assume the burden of flawed management decisions since the time PAL was privatized in the early 90s,” said Rivera.
In a Labor Management Council Meeting held last September 8, 2009, the PAL President & COO told the Union that the management has already invited prospective bidders for those departments targeted for spin-off. Again, as expected, one interested bidder is Lucio Tan’s MacroAsia Airport Services.
“It seems 10 years of labor sacrifice were not yet enough. Again, to save PAL from its current financial mess, the management is asking PAL employees to bleed some more,” explained Rivera.
Today, the PAL union has put forward the following recommendations as the ILO High level mission is set to meet with concerned government bodies and employers’ representatives.
1. For the Malacanang to certify as priority bill the passage of the proposed Security of Tenure bill and for Congress to pass the same in order to align the Labor Code to the letter and spirit of Convention 87 and 98. The security of tenure bill seeks to amend the pertinent provisions of the Labor Code to strictly regulate the practice of labor contracting and plug the loopholes in the law.
2. For the Labor Department to review Department Order No 18 specifying allowable and illegal forms of labor contracting. The Department Order has significantly liberalized the scope of legal contracting, thus giving legal blanket to outsourcing such as the PAL spinoff even if it weakens unions.
3. For the PAL management to suspend the planned outsourcing/spin-off.
4. For the Supreme Court to decide with dispatch on GR 155097 on the local election dispute within PALEA considering the inordinately long time of 7 years.
5. For the Congress and the Supreme Court to consider forming a special court or special division to handle purely labor cases to expedite the disposition of mounting cases at the NLRC, Court of Appeals, and the Supreme Court.
Tuesday, September 22, 2009
PAL employees hold motorcade vs. spinoff, call attention of ILO
Press Release
September 22, 2009
PAL Employees Association
Philippines Airlines (PAL) employees held a motorcade today in a protest against the spinoff to be implemented on November 15. An estimated 2,000 employees, about half of the total PAL workforce, will be retrenched due to the spinoff of the catering, passenger handling, ramp handling and cargo handling operations.
The “Motorcade Kontra Spinoff” of some 40 cars and motorcycles started assembling at 10:30 am in the Coastal Mall in the intersection Coastal Road and Airport Road. By noon the motorcade then proceeded along the Diosdado Macapagal Ave. in Pasay City to the PAL Center located at the PNB Compound. It then moved on to Nichols airport terminal and finally ended at the PAL In Flight Center (IFC) along Airport Road in Paranaque.
Gerry Rivera, president of the PAL Employees Association (PALEA), said that “Spinoff aims to outsource work to companies also owned by Lucio Tan where workers will be non-union and thus receive cheaper wages, fewer benefits and have no security of tenure. Regular workers will be retired and then rehired as contractuals. This has happened before when work was spun off to Lufthansa Technik and Macro Asia, in which Lucio Tan both had major interests. Employees retrenched from PAL because of the spinoff were employed by Macro Asia and Lufthansa Technik on new contracts.”
Last week a Rivera and the PALEA led a noise barrage at the PAL IFC to jumpstart the campaign against the spinoff. Rivera also revealed that they have organized a signature campaign versus the spinoff among PAL employees. He insisted that “Spinoff is not a solution to company losses but a scheme to contractualize labor and raise more profit not from better efficiency of work but from greater exploitation of workers.”
Meanwhile Rivera appealed to the International Labor Organization High Level Mission (ILO HLM) to investigate the case of PAL since management’s suspension of the collective bargaining agreement (CBA) and spinoff of operations has weakened one of the erstwhile strongest unions in the country. The ILO HLM is tasked to hear complaints of government’s violations of Convention 87 on the freedom to unionize and Convention 98 on right of collective bargaining.
According to Rivera, in 1998 PAL with the connivance of a government formed Inter-Agency Task Force pressured the PALEA into suspending the CBA for 10 years. Rivera, then PALEA vice-president, questioned the CBA suspension on grounds that the right to self-organization and collective bargaining, being founded on public policy, cannot be waived. But the Supreme Court in a precedent-setting decision affirmed the 10-year CBA suspension despite clear provisions of the labor code that 5 years is the maximum statutory life of a CBA and 5 years is the maximum period for a sole and exclusive bargaining agent after which its representation status can be contested by another union.
Rivera is also calling the attention of the ILO HLM on the results of the elections for union officers of PALEA that has remained in limbo for 7 years since 2002. The case has remained unresolved by the Supreme Court effectively paralyzing the operations of the union and giving management an alibi to deny representation status to PALEA.
September 22, 2009
PAL Employees Association
Philippines Airlines (PAL) employees held a motorcade today in a protest against the spinoff to be implemented on November 15. An estimated 2,000 employees, about half of the total PAL workforce, will be retrenched due to the spinoff of the catering, passenger handling, ramp handling and cargo handling operations.
The “Motorcade Kontra Spinoff” of some 40 cars and motorcycles started assembling at 10:30 am in the Coastal Mall in the intersection Coastal Road and Airport Road. By noon the motorcade then proceeded along the Diosdado Macapagal Ave. in Pasay City to the PAL Center located at the PNB Compound. It then moved on to Nichols airport terminal and finally ended at the PAL In Flight Center (IFC) along Airport Road in Paranaque.
Gerry Rivera, president of the PAL Employees Association (PALEA), said that “Spinoff aims to outsource work to companies also owned by Lucio Tan where workers will be non-union and thus receive cheaper wages, fewer benefits and have no security of tenure. Regular workers will be retired and then rehired as contractuals. This has happened before when work was spun off to Lufthansa Technik and Macro Asia, in which Lucio Tan both had major interests. Employees retrenched from PAL because of the spinoff were employed by Macro Asia and Lufthansa Technik on new contracts.”
Last week a Rivera and the PALEA led a noise barrage at the PAL IFC to jumpstart the campaign against the spinoff. Rivera also revealed that they have organized a signature campaign versus the spinoff among PAL employees. He insisted that “Spinoff is not a solution to company losses but a scheme to contractualize labor and raise more profit not from better efficiency of work but from greater exploitation of workers.”
Meanwhile Rivera appealed to the International Labor Organization High Level Mission (ILO HLM) to investigate the case of PAL since management’s suspension of the collective bargaining agreement (CBA) and spinoff of operations has weakened one of the erstwhile strongest unions in the country. The ILO HLM is tasked to hear complaints of government’s violations of Convention 87 on the freedom to unionize and Convention 98 on right of collective bargaining.
According to Rivera, in 1998 PAL with the connivance of a government formed Inter-Agency Task Force pressured the PALEA into suspending the CBA for 10 years. Rivera, then PALEA vice-president, questioned the CBA suspension on grounds that the right to self-organization and collective bargaining, being founded on public policy, cannot be waived. But the Supreme Court in a precedent-setting decision affirmed the 10-year CBA suspension despite clear provisions of the labor code that 5 years is the maximum statutory life of a CBA and 5 years is the maximum period for a sole and exclusive bargaining agent after which its representation status can be contested by another union.
Rivera is also calling the attention of the ILO HLM on the results of the elections for union officers of PALEA that has remained in limbo for 7 years since 2002. The case has remained unresolved by the Supreme Court effectively paralyzing the operations of the union and giving management an alibi to deny representation status to PALEA.
Monday, September 21, 2009
Labor party calls for changes to martial law-era labor code
Press Release
September 21, 2009
On the anniversary of the declaration of martial law, the labor group Partido ng Manggagawa (PM) called for major changes in the labor code in the interest of advancing workers rights and welfare. “It is ironic that even as we vow never again to repeat the tragedy of martial law, the 1974 labor code remains in force as an enduring legacy of the dictatorship and a tight chain on the hands of the workers. The 1986 Edsa revolution dismantled many ramparts of the Marcos dictatorship and revived the trappings of elite democracy but it retained the labor code in order to restrict the freedoms of workers,” argued Renato Magtubo, chairperson of PM.
PM together with other labor groups under the KONTRA coalition formed to campaign against contractualization mobilized today several hundreds of workers. Theme of the workers rally was “Wakasan ang Batas Militar sa Paggawa.” The KONTRA mobilization assembled around 9 am at Morayta in Manila before proceeding to Mendiola by 10 am.
“The urgency of revising the martial law-era labor code comes to stark relief as the International Labor Organization starts its High Level Mission on the government’s enforcement of the Convention 87 and 98 on the right to organize of workers and bargain collectively,” Magtubo explained. The ILO High Level Mission (HLM) arrives today and starts if investigation officially tomorrow.
Magtubo also issued a challenge to the presidentiables to make put in their platforms the labor issues. “For the coming election to truly be a fight between good and evil, the presidentiables must specifically commit to changes in the labor code and jurisprudence on labor in the interest of promoting workers rights and welfare. Any presidentiable who claims to be fighting for good instead of evil must be an advocate of labor,” Magtubo insisted.
PM also appealed to the ILO HLM to investigate the “no union, no strike” policy in the export zones and the contractualization of labor both of which the group claims as a hindrance to the exercise of the right to unionize and bargain. “For example, Philippine Airlines will spinoff by November 15 its catering, passenger and cargo handling operations thus affecting an estimated 2,000 workers, about half its workforce. But this is just a retire-rehire tactic to weaken the PAL union. Lucio Tan owns the companies which will continue the spun off operations but with workers who are non-union with cheaper wages, less benefits and no security of tenure,” Magtubo described.
He also clarified that in the Mactan Export Processing Zone in Cebu workers are complaining of unfair labor practices by management designed to interfere in the workers exercise of the freedom to organize. “A clear case in point is Alta Mode, a garments factory producing world famous brands like Abercrobie and Fitch and Hollister, that put on forced leave all of the union members on the day of the election for workers to decide on having a union. And several days after the union won a majority of the votes, the management put the factory on temporary shutdown in order to intimidate the workers,” Magtubo added.
September 21, 2009
On the anniversary of the declaration of martial law, the labor group Partido ng Manggagawa (PM) called for major changes in the labor code in the interest of advancing workers rights and welfare. “It is ironic that even as we vow never again to repeat the tragedy of martial law, the 1974 labor code remains in force as an enduring legacy of the dictatorship and a tight chain on the hands of the workers. The 1986 Edsa revolution dismantled many ramparts of the Marcos dictatorship and revived the trappings of elite democracy but it retained the labor code in order to restrict the freedoms of workers,” argued Renato Magtubo, chairperson of PM.
PM together with other labor groups under the KONTRA coalition formed to campaign against contractualization mobilized today several hundreds of workers. Theme of the workers rally was “Wakasan ang Batas Militar sa Paggawa.” The KONTRA mobilization assembled around 9 am at Morayta in Manila before proceeding to Mendiola by 10 am.
“The urgency of revising the martial law-era labor code comes to stark relief as the International Labor Organization starts its High Level Mission on the government’s enforcement of the Convention 87 and 98 on the right to organize of workers and bargain collectively,” Magtubo explained. The ILO High Level Mission (HLM) arrives today and starts if investigation officially tomorrow.
Magtubo also issued a challenge to the presidentiables to make put in their platforms the labor issues. “For the coming election to truly be a fight between good and evil, the presidentiables must specifically commit to changes in the labor code and jurisprudence on labor in the interest of promoting workers rights and welfare. Any presidentiable who claims to be fighting for good instead of evil must be an advocate of labor,” Magtubo insisted.
PM also appealed to the ILO HLM to investigate the “no union, no strike” policy in the export zones and the contractualization of labor both of which the group claims as a hindrance to the exercise of the right to unionize and bargain. “For example, Philippine Airlines will spinoff by November 15 its catering, passenger and cargo handling operations thus affecting an estimated 2,000 workers, about half its workforce. But this is just a retire-rehire tactic to weaken the PAL union. Lucio Tan owns the companies which will continue the spun off operations but with workers who are non-union with cheaper wages, less benefits and no security of tenure,” Magtubo described.
He also clarified that in the Mactan Export Processing Zone in Cebu workers are complaining of unfair labor practices by management designed to interfere in the workers exercise of the freedom to organize. “A clear case in point is Alta Mode, a garments factory producing world famous brands like Abercrobie and Fitch and Hollister, that put on forced leave all of the union members on the day of the election for workers to decide on having a union. And several days after the union won a majority of the votes, the management put the factory on temporary shutdown in order to intimidate the workers,” Magtubo added.
Monday, September 14, 2009
PAL workers hold lunchtime noise barrage vs. spinoff
Press Release
September 14, 2009
Philippine Airlines (PAL) employees held a noontime noise barrage against management’s plan to spinoff major operations. The protest at the PAL In Flight Center along Airport Road in Paranaque is only the first salvo of mass actions to stop the planned spinoff, according to Gerry Rivera, PAL Employees Association (PALEA) president and vice chairperson of the labor party-list group Partido ng Manggagawa (PM).
“Spinoff aims to outsource work to companies also owned by Lucio Tan where workers will be non-union and thus receive cheaper wages, fewer benefits and have no security of tenure. Regular workers will be retired and then rehired as contractuals. This has happened before when work was spun off to Lufthansa Technik and Macro Asia, in which Lucio Tan both had major interests. Employees retrenched from PAL because of the spinoff was employed by Macro Asia and Lufthansa Technik on new contracts,” explained Rivera.
The planned spinoff to be implemented on November 15 will affect an estimated 2,000 workers in the airline’s catering, passenger handling, ramp handling and cargo handling operations. Rivera announced that a signature campaign against the spinoff is ongoing and beside the noontime protest today, a presscon and motorcade rally is planned for Wednesday.
Rivera insisted that “Even assuming the PAL is losing now, it however posted profits for several years before. So why is it that in times of crisis, workers are first to be sacrificed but in periods of boom, employees are last to benefit? Workers will resist paying for the price of the economic crisis that is not our fault.”
Quoting from PAL’s own website, he said that since 2000, the first year of the airlines’ rehabilitation program, it has been posting net earnings and that by 2007, it had a net income of $140.3 million for its fiscal year ending March 31, 2007, supposedly the largest annual profit in the airline's 66-year history.
“Spinoff is not a solution to company losses but a scheme to contractualize labor and raise more profit not from better efficiency of work but from greater exploitation of workers,” Rivera argued.
Labor contractualization is a major grievance of ordinary workers and the labor movement. PM is supporting the so-called Security of Tenure bill in Congress that provides for a cap on the number of contractual workers that can be hired by employers.
September 14, 2009
Philippine Airlines (PAL) employees held a noontime noise barrage against management’s plan to spinoff major operations. The protest at the PAL In Flight Center along Airport Road in Paranaque is only the first salvo of mass actions to stop the planned spinoff, according to Gerry Rivera, PAL Employees Association (PALEA) president and vice chairperson of the labor party-list group Partido ng Manggagawa (PM).
“Spinoff aims to outsource work to companies also owned by Lucio Tan where workers will be non-union and thus receive cheaper wages, fewer benefits and have no security of tenure. Regular workers will be retired and then rehired as contractuals. This has happened before when work was spun off to Lufthansa Technik and Macro Asia, in which Lucio Tan both had major interests. Employees retrenched from PAL because of the spinoff was employed by Macro Asia and Lufthansa Technik on new contracts,” explained Rivera.
The planned spinoff to be implemented on November 15 will affect an estimated 2,000 workers in the airline’s catering, passenger handling, ramp handling and cargo handling operations. Rivera announced that a signature campaign against the spinoff is ongoing and beside the noontime protest today, a presscon and motorcade rally is planned for Wednesday.
Rivera insisted that “Even assuming the PAL is losing now, it however posted profits for several years before. So why is it that in times of crisis, workers are first to be sacrificed but in periods of boom, employees are last to benefit? Workers will resist paying for the price of the economic crisis that is not our fault.”
Quoting from PAL’s own website, he said that since 2000, the first year of the airlines’ rehabilitation program, it has been posting net earnings and that by 2007, it had a net income of $140.3 million for its fiscal year ending March 31, 2007, supposedly the largest annual profit in the airline's 66-year history.
“Spinoff is not a solution to company losses but a scheme to contractualize labor and raise more profit not from better efficiency of work but from greater exploitation of workers,” Rivera argued.
Labor contractualization is a major grievance of ordinary workers and the labor movement. PM is supporting the so-called Security of Tenure bill in Congress that provides for a cap on the number of contractual workers that can be hired by employers.
Labor unrest brewing vs. PAL spinoff
PRESS RELEASE
September 13, 2009
Rank and file workers of the Philippine Airlines are flexing their muscles against imminent job loss after the management bared its plan to implement a major restructuring program before the end of this year.
Gerry Rivera, PAL Employees Association (PALEA) president and vice chairperson of the labor party-list group Partido ng Manggagawa (PM) is leading a noontime protest tomorrow to be held at the PAL In Flight Center, Airport Road, Paranaque City against what the union bewails as Lucio Tan’s predilection of throwing the weight of his corporate problems to the workers.
A signature campaign against the spinoff is also ongoing and after the noontime protest tomorrow, a press conference followed by a motorcade rally is tentatively scheduled on Wednesday.
Last September 9, the PAL management informed its employees that a spinoff will be implemented beginning November 15. The planned spinoff will affect an estimated 2,000 workers —almost half of the total workforce in the airline’s catering, passenger handling, ramp handling and cargo handling operations.
PAL is currently reviewing its entire organizational set-up to make the workforce “lean and mean," after suffering heavy losses this year. A company statement said that as of end-March this year, the airline posted $301.4 million in losses. According to Flight's ACAS database, PAL had 7,751 employees in 2007.
PAL employees are resisting the planned spinoff as they believe that its main aim is to bust the union by outsourcing those work to companies that are also owned by Lucio Tan such as MacroAsia Corp. where workers are non-unionized, receive cheaper wages, less benefits and without security of tenure.
“More than 5,000 of our employees suffered this onslaught ten years ago and we see it coming again on the same pretext that the company used to justify massive outsourcing plan before,” explained Rivera.
Rivera pointed out that since catering, passenger, cargo and ramp handling operations cannot be replaced by modern machines, “the management can only think of replacing secured and trained workers with contractual ‘modern-day slaves’ to cut down on costs.”
“This is unacceptable,” Rivera declared, insisting that labor should not be made the usual sacrificial lamb in every corporate restructuring programs.
“Why put everything on our shoulders? Corporations worldwide had been bailed out many times over, why can’t the same be done to workers who are the very lifeblood of this dying system,” concludes Rivera.
September 13, 2009
Rank and file workers of the Philippine Airlines are flexing their muscles against imminent job loss after the management bared its plan to implement a major restructuring program before the end of this year.
Gerry Rivera, PAL Employees Association (PALEA) president and vice chairperson of the labor party-list group Partido ng Manggagawa (PM) is leading a noontime protest tomorrow to be held at the PAL In Flight Center, Airport Road, Paranaque City against what the union bewails as Lucio Tan’s predilection of throwing the weight of his corporate problems to the workers.
A signature campaign against the spinoff is also ongoing and after the noontime protest tomorrow, a press conference followed by a motorcade rally is tentatively scheduled on Wednesday.
Last September 9, the PAL management informed its employees that a spinoff will be implemented beginning November 15. The planned spinoff will affect an estimated 2,000 workers —almost half of the total workforce in the airline’s catering, passenger handling, ramp handling and cargo handling operations.
PAL is currently reviewing its entire organizational set-up to make the workforce “lean and mean," after suffering heavy losses this year. A company statement said that as of end-March this year, the airline posted $301.4 million in losses. According to Flight's ACAS database, PAL had 7,751 employees in 2007.
PAL employees are resisting the planned spinoff as they believe that its main aim is to bust the union by outsourcing those work to companies that are also owned by Lucio Tan such as MacroAsia Corp. where workers are non-unionized, receive cheaper wages, less benefits and without security of tenure.
“More than 5,000 of our employees suffered this onslaught ten years ago and we see it coming again on the same pretext that the company used to justify massive outsourcing plan before,” explained Rivera.
Rivera pointed out that since catering, passenger, cargo and ramp handling operations cannot be replaced by modern machines, “the management can only think of replacing secured and trained workers with contractual ‘modern-day slaves’ to cut down on costs.”
“This is unacceptable,” Rivera declared, insisting that labor should not be made the usual sacrificial lamb in every corporate restructuring programs.
“Why put everything on our shoulders? Corporations worldwide had been bailed out many times over, why can’t the same be done to workers who are the very lifeblood of this dying system,” concludes Rivera.
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