Last Saturday, July 31, national air carrier Philippine Airlines (PAL) canceled five flights (one destined forHong Kong, the others to domestic destinations) due to the sudden resignation of at least two dozen Airbus A320 and A319 jet pilots who chose to seek better-paying jobs abroad.

PAL spokesman Jonathan Gesmundo immediately apologized to the public for the cancelations through TV and radio stations, saying that these pilots did not inform the management but stressed that it was not a group action. As a temporary solution, the airline carrier adjusted its schedule and brought in bigger aircraft to accommodate passengers who were affected by the situation. On Aug. 3, new flight schedules were announced while other flights continue to operate in normal conditions.

Newly appointed Tourism Secretary Alberto Lim raised concerns since news of the flight cancelations will likely affect foreign arrivals since PAL makes up to 40 percent of both domestic and international flights in the Philippines. Lim also said that this is the second blow to the tourism industry since Philippine planes were prevented from flying to Europe due to the downgrade of the government’s aviation safety rating. Last May, the Department of Tourism (DOT) reported a tourist volume increase of 6.64 percent in the first quarter of 2010, and DOT officials were confident that the number will continue to increase.

Early this year, PAL was reported to have been beleaguered by financial problems. Last June, to cut costs, PAL started to outsource some of its operations, including airline catering and others. PAL was also reportedly in the process of laying off at least 3,500 employees.

A few weeks ago, PAL transferred part of its 150-seat A320 fleet to Air Philippines, a sister company, and has reportedly compelled pilots to move to the smaller airline with smaller salaries. Following the pilots’ resignation, a union composed of about 1,600 PAL flight attendants have also hinted of quitting in a month’s time due to the company’s discriminatory labor practices including forced retirement at age 40. Also, President Benigno “Noynoy” Aquino III told GMANews.TV that he learned from Department of Transportation and Communication (DOTC) Sec. Jose “Ping” de Jesus that a number of PAL pilots were being fired even before July 31 and he pressed for the need for DOTC as well as the Department of Labor and Employment (DOLE) to meet with PAL officials to review PAL labor conditions.

PAL president Jaime J. Bautista maintains that there is no labor dispute between the company and the pilots and that their leaving was purely on financial or economic reasons, and that the more pressing matter is that the pilots resigned without giving management the 180-day notice as provided under their contracts or terms of agreement. The issue has escalated that a take-over by the government was hinted at by Justice Sec. Leila de Lima should the dispute continue.

On Aug. 5, DOTC undersecretary Dante Velasco met with PAL pilots and executives and concluded that it is “unnecessary” for the government to mediate what is an internal problem, emphasizing that PAL President Jaime Bautista has made the commitment to work out differences with the resigned pilots and vowed that the remaining pilots will not be transferred to Air Philippines.

While the matter is still in the process of being ironed out, it is worth pointing out that the flight cancelation proved to be quite a test for President Aquino, who has been in the office for barely two months. But as the matter pressed on, Pres. Aquino’s sense of urgency and leadership skills really came through. When plagued by inquiring minds on the matter after he attended Mass in commemoration of his mom’s (former Pres. Cory Aquino) one-year death anniversary, P-Noy spoke calmly and positively but still displayed authority. It was under his orders that government agencies quickly stepped in to study the situation. Other government officials followed P-Noy’s example and made an effort to help solve the issue.

It remains to be seen if government efforts will pay off in the end, but what we witnessed in a matter of days is a true testament that proper communication remains to be the key to attaining an agreeable resolution between conflicting parties. (AJPress)

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Published August 6, 2010 in Asian Journal New York p. A6 )

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