Philippine Airlines starts unit sell-off
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Philippine Airlines (PAL) has started implementing its unit sell-off programme, in which it will outsource its catering, call centre reservations and ground handling operations. The move is expected to affect approximately 2,600 jobs.
In a press briefing shortly after PAL’s annual stockholders’ meeting, PAL’s President & COO, Jaime Bautista said the airline had sent letters to affected PAL workers, informing them that their employment with the flag carrier would be terminated as on 30 September 2011. Workers at the Sky Kitchen (catering), Sky Logistics (airport services) and SPi Global (call centre reservations) units have until 9 September 2011 to decide whether they want to join the new unit contractors.
Bautista said the airline also sent notices to the regional offices of the Department of Labor and Employment (DOLE) in Manila and Cebu.
“The spin off… is a painful but necessary decision to ensure PAL’s viability and long term survival. We assure affected workers that they will all receive their separation pay and other benefits that are at par, if not better, than industry standards. Guaranteed employment also awaits them at our third-party service providers,” Bautista said.
PAL will spend about PHP2.5 billion (US$58.9 million) on severance packages for the affected workers, with workers affected by the sale receiving 125% of their monthly salary for every year of service, as well as PHP50,000 gratuity pay, outstanding holiday and sick leave transferred into cash, and travel benefits.
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