First published in the Philippine Online Chronicles
Around 2,600 employees of Philippine Airlines (PAL) move closer to mass retrenchment after the Department of Labor and Employment (DoLE) upheld the legality of PAL’s planned outsourcing/spin-off, Inquirer.net reported. The move is part of PAL’s corporate restructuring program.
In its June 15 decision, the labor department through acting Secretary Romeo Lagman said PAL’s plan to outsource its three units to third party service providers is “based on lawful ground and all in a valid exercise of managerial prerogative.”
The decision arose from the airlines company’s filing of position paper last month before the National Conciliation and Mediation Board (NCMB) seeking the labor department’s nod on its plan to lay off thousands of its employees.
The country’s flag carrier welcomed the decision, saying it must now focus “on the tough challenge of surviving the crisis.”
“To do this, PAL must implement various revenue enhancement and cost-control initiatives that include outsourcing,” it said in a statement.
PAL had announced early this year that it will outsource its Call Center Reservations, In-Flight Catering, and Airport Services units for the company’s survival as it claims huge losses due to the global crisis.