PHILIPPINE Airlines (PAL) employees to be affected by the company’s restructuring program got some reprieve after PAL management announced recently it will wait for results of mediation by the Department of Labor and Employment (DOLE) before going ahead with its plans.
The spin-off for three of PAL’s non-core units — inflight catering; airport services, including ground handling, cargo terminal/cargo handling and ramp handling; and call center reservations — was to have taken effect on May 31, affecting 3,000 PAL employees.
The flag carrier said it had already informed employees who have received termination notices to instead continue to report for work until DOLE comes out with a resolution.
“We shall wait for the decision of the Secretary of Labor and Employment,” PAL said in a document.
The spin-off is the second phase of the restructuring program of PAL, which has been hit hard by the global economic crisis.
In the last two fiscal years, PAL sustained losses of over $350 million (or more than P15 billion).
