Nothing wrong with mass layoff at PAL — DOLE

MANILA, Philippines — For the Department of Labor and Employment (DOLE), there is nothing illegal over the decision of Philippine Airlines (PAL) to lay off some 300 employees last Friday.

According to DOLE Assistant Secretary Benjo Benavidez, PAL did not violate any labor policy when it let go of selected administrative and management personnel under its business restructuring scheme.

“We sent labor inspectors there… It turned out that it is voluntary separation, so it is the decision of the workers if they want to leave to look for a new job or put up a business,” he said in an interview over the weekend.

He noted that under the Labor Code, employees may be retrenched but they must be given notice and due separation pay.

The agency found that 182 employees have already received their separation benefits. Benavidez  added they also looked into the flag carrier’s claims of losses incurred as reasons for downsizing. 

“As early as last year, they already had losses. Aside from this is their projected losses in the next months due to cancelled flights. And regardless, whether there is loss or not, anytime a company can opt to (retrench),” he maintained. 

For its part, Partido Manggagawa chairman Rene Magtubo said it does not believe that the layoff of 300 PAL workers is part of the company’s massive plan in 2009 to outsource some services. 

“Since 2011, PAL has been laying off regular employees and outsourcing the work to contractors, who hire ‘endo’ (end-of-contract) workers. PAL is just using the COVID-19 travel ban and alleged financial losses as alibi for the latest round of contractualization at the flag carrier,” she said.

According to PAL Employees Association vice president Alnem Pretencio, “PAL’s modus operandi of dismissing workers and replacing them with contractual workers in service providers is pretty well established.” 

“This means that the recent separation of 300 employees has been in the works for the last 11 years. Management was just waiting for an expedient time to outsource once more,” Pretencio added.