you're reading...
Airlines, Industry, Paolo Abellanosa

PAL to lay-off 2,600 employees


The country’s legacy airline shall be pushing through with its initial plan of outsourcing services such as catering and telesales operations in a survival strategy attempt to save US$ 10 to 15 million annually, affecting 2,600 employees, who, management says, will be transferred to third-party companies.

PAL'S LABOR DIET. Members of the PAL Employee Association protests against the contractualization of airline services. Photo courtesy of havais.org.tr

The global crisis of 2008 took its toll on the airline with US$ 301 million loss recorded in the year. In 2005, it claimed a workforce of 7,322.

PAL plans to execute the restructuring by October 1. The Department of Labor and Employment (DoLE) gave its consent to PAL in 2010.

The employees’ association raised issues on the legal complications of the contractors to where PAL shall be outsourcing services from. These companies are Sky Kitchen Philippines Inc., Sky Logistics Philippines Inc., and SPi Global Holdings Inc.

According to Sunstar.com, DoLE said that these companies are not accredited, but also informed the public that they can go through the process before operations start the coming month.

Advertisements

About aitsalimbay

The official newsletter of the UP Asian Institute of Tourism.

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: