Palea hopes PAL will uphold agreement after $1-B buyout

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WITH the $1 billion buyout deal between the Lucio Tan group and San Miguel Corp. finalized, the Philippine Airlines Employees’ Association (Palea) hopes that the new management of Philippine Airlines (PAL) will uphold the agreement that settled their long-running dispute over the outsourcing of the airline’s non-core business.

Gerry Rivera, Palea president, said on Friday they expect the new PAL management to “faithfully and fully” implement the terms of the agreement.

“Anything less would mean the resurgence of labor troubles at the flag carrier, which could threaten PAL’s return to profitability,” Rivera said.

Rivera, who is also the vice president of Partido ng Manggagawa [Labor Party], noted that they have complied with the provisions


of the settlement agreement affecting Palea such as dismantling of the picket line and terminating labor cases.

“Whoever is in control of PAL, we demand that management do the same,” he added.
In November 2013, PAL and Palea signed an accord to settle the labor dispute arising from the implementation of an outsourcing program which led to the retrenchment of more than 2,000 employees in September 2011.

The settlement also provides for the rehiring as regular workers of some 600 Palea members who were retrenched in 2011.

The agreement also grants an improved separation package for Palea members.

San Miguel Corp. and the Lucio Tan group recently signed a deal for the latter to buy back 49 percent of PAL from San Miguel for $1 billion.

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1 Comment

  1. Felipe A. Hernandez on

    I fully agree with the PALEA to demand the Tan’s group for the full implementation of the agreement they made with the SMC group who managed PAL for a while. Kasama sa bilihan ang mga kasunduan…