PAL GIVEN THE GREEN LIGHT TO CUT COSTS

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By admin November 3, 2010 14:33

PAL GIVEN THE GREEN LIGHT TO CUT COSTS

Philippine Airlines (PAL) has been given the green light to outsource its in-flight catering, cargo handling and call center-reservation services, as some of those who could lose their jobs marched on Chino Roces Bridge to ask the Palace to reverse the decision.

Union leader Gerry Rivera said the outsourcing could lead to the loss of 2,600 jobs.

PAL president, Jaime Bautista, called on the ground staff to respect the ruling and warned them against walking out and disrupting operations. Bautista told local television that the airline planned to implement its outsourcing plan for ground crew in consultation with the union to ensure a smooth change. PAL plans to sell its units providing in-flight catering, airport services and call reservations to third parties and engage their services to reduce costs and stay afloat.

The dispute with the ground staff, one of three restive unions within the airline, is the latest in a string of setbacks for PAL.

Last month, the government stopped a planned strike by cabin crew who were demanding higher wages and a lifting of a company policy that forces female attendants to retire at age 40.

admin
By admin November 3, 2010 14:33
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