A Case Study on the Labor Issue on PAL
The issue started when the Flight Attendants and Stewards Association of the Philippines (FASAP) and PAL Employees Association (PALEA) met on the same decision to take strikes if their demand for higher rates of wages will still be set aside by the management. Another reason that triggered the situation is the recent termination of 3,000 of their members after outsourcing some of their operations. Moreover, the retirement age of flight attendants and stewards has been made earlier than what is supposed to be.
Another issue is the fact that 26 pilots suddenly left without notice. What has been well-publicized in the media is the side of the management that the reason behind the resignation in big numbers is because of the offers of better paying jobs by foreign airlines. But then allegedly, the pilots are complaining of “demotion” following PAL’s plan to restructure its domestic flights. Some pilots handling international flights may get more domestic flights, as PAL moves to take on competitor Cebu Pacific.
Meanwhile, on the issue of wages, the management of PAL insists that their rates are competitive in the region. The management also appealed to their employees to understand the company’s situation, saying that it has been very transparent in disclosing its financial condition. According to Bautista, most airlines in the world, including PAL, have been affected and continue to be affected by the global recession and slowdown in travel.
Questions and Answers:
1. If you’re part of the management of PAL, what will you do? (Comment on the action of PAL.)
If I’m part of the management, I think the best solution for the problem on wage would be proper communication of the existing compensation package and benefits for the PAL employees. In here, the management must show a detailed and comprehensive report or proof that their rates are competitive in the market or region. If it doesn’t work, I guess I would...