Philippine Airlines has offered an P80-million
package to its flight attendants and stewards to settle and close
their collective bargaining agreement (CBA) for the period
The offer was made at the resumption of CBA
talks between PAL management and officers of the Flight Attendants
and Stewards Association of the Philippines (FASAP) at the
National Conciliation and Mediation Board (NCMB).
the “one-time” P80-million package is the only amount it could
offer the flight attendants’ and stewards’ union due to the company’s dire fiscal condition.
PAL lost almost US$320-million or over
P15-billion in the last two fiscal years due to the global
economic crisis exacerbated by spikes in fuel prices, downgrade of
the Philippines’ aviation safety rating to Category 2 by the US
Federal Aviation Administration (FAA), and the European blacklist
of all Philippine carriers.
“We hope FASAP members will
understand PAL’s predicament and accept the offer. While we
recognize their desire for higher compensation, PAL’s current
financial situation will not allow it offer more,” said Jaime Bautista,
PAL management has also expressed its desire to move
discussions on the retirement age issue for the 2010-2015 CBA. It
said the priority is to put a closure to the previous CBA which
has dragged on for the past three years.
Bautista explained that a
22-year old flight attendant who was hired by PAL in the year 2000
will only turn 40 in 2018, while those who were 22 when hired by
PAL in 1996, will only turn 45 by 2019.
Under the existing
CBA, male and female flight attendants who were hired before
November 1996 would be retired once they reach 60 and 55 years
old, respectively, and those hired from 1996 and beyond would be
retired at age 45 for both males and females. Those hired after
November 2000, on the other hand, will be retired by the age of 40
for both males and females.
As a sign of good faith,
Bautista said PAL management is willing to conduct marathon
meetings with FASAP for the 2010-2015 CBA. “The immediate goal now
is to put closure to the 2005-2010 CBA, which has become a major
source of misunderstanding between management and FASAP,” he said.
See other recent news regarding: