Supreme Court: No illegal retrenchment of PAL cabin crew

MANILA, Philippines — The Supreme Court has ruled that there was no illegal retrenchment of more than 1,000 flight attendants and stewards of flag carrier Philippine Airlines.

 

Sitting as full court, the SC voted 7-2 to uphold the Court of Appeals' decision dated Aug. 23, 2006 that ruled that PAL's retrenchment of its workers was valid. The CA dismissed the Flight Attendants and Stewards Association of the Philippines' (FASAP) bid seeking damages over an unfair labor practice charge.

 

The case stemmed from the retrenchment of 5,000 employees of PAL, including more than 1,400 cabin crew personnel due to the 1997 Asian financial crisis. FASAP claimed that their entrenchment was illegal.

 

Five justices inhibited from the case, while Chief Justice Maria Lourdes Sereno has been on indefinite leave since March 1.

 

The high court granted the motion for reconsideration filed by PAL, through its legal counsel Estelito Mendoza, seeking the reversal of the SC's Third Division that reversed the CA's 2006 ruling. 

 

The 55-page decision dated March 13, but released only on Monday, was penned by Associate Justice Lucas Bersamin.

 

The high court held that PAL's retrenchment was valid. "Upon a critical review of the records, we are convinced that PAL had met all the standards in effecting a valid retrenchment," the SC said.

 

It also noted that the affected employees signed a quitclaim, where the following are stated: 

 

• fixed amount as full and final compromise settlement; 

• benefits of employees if possible with corresponding amounts, which employees are giving up in consideration of the fixed compromise amount; 

• a statement that the employer explained that by signing the waiver of quitclaim, they are forfeiting or relinquishing their right to receive benefits which are due them under the law;

• a statement that the employees signed and executed the document voluntarily and had fully understood the contents

 

"The release and quitclaim signed by the affected employees substantially satisfied the aforesaid requirements," the SC said.

 

"Upon a critical review of the records, we are convinced that PAL had met all the standards in effecting a valid retrenchment," the high court said.