PAL, PALEA end two-year outsourcing dispute

Flag carrier Philippine Airlines Inc. (PAL) and the Philippine Airlines Employees' Association (PALEA) on Thursday signed a settlement agreement for the re-employment of the latter's 600 members as regular workers, ending a two-year outsourcing dispute.

In statement, PAL said it “will start the processing of applications for re-employment of covered PALEA members.”

PALEA members, however, will have to meet qualifications and hiring requirements for available job openings, said the flag carrier.

The agreement provides for an improved separation package of 200 percent per year of service and P150,000 in gratuity pay for PALEA members, said Gerry Rivera, PALEA president, in a separate statement.

Rivera said PAL committed to process the applications for re-employment of 600 affected PALEA members within three months.

“We thank PAL management led by President Ramon Ang for recognizing that an amicable settlement is preferable to continuing labor strife,” he said. “We hope to build on this agreement and the protection of job security it provides towards rebuilding labor management relations in the flag carrier.”

Diversified conglomerate San Miguel Corp. (SMC), led by Ang, took over stake of PAL owned by the LT Group of tycoon Lucio Tan this year. The new management has been in negotiations with PALEA since 2012.

In 2010, PAL's then management shut down its airport services arm, in-flight catering and call-center reservations after these are outsourced. The dispute led to more than 2,500 employees losing jobs.

PALEA rallied against the move since 2011. — Siegfrid O. Alegado/KBK, GMA News