2,600 PAL EMPLOYEES TO BE JOBLESS BY SEPT. 30

MANILA, Philippines - Some 2,600 Philippine Airlines (PAL) employees will be laid off by September 30.

PAL president and chief operating officer Jaime Bautista said termination notices were already sent to the affected employers, as the airline implements the outsourcing of its catering, call center and ground services on October 1.

In a press briefing shortly after PAL's annual stockholders' meeting on Thursday, Bautista said the letters notified affected PAL workers that their employment with the flag carrier is only up to the close of their respective duty hours on September 30.

The affected employees also have until September 9 to accept job offers from the new service providers. Some 400 employees signified their intention to join the service providers, and they will start official duty on Oct. 1.

PAL is spending around P2.5 billion for the severance package. Based on the October 29, 2010 ruling of Labor Secretary Rosalinda Baldoz, affected PAL workers will receive the following: separation pay in the amount of 125 percent of their monthly basic salary for every year of service; P50,000 gratuity pay; 100 percent commutable-to-cash vacation and sick leaves; and trip pass (travel) benefits.

On appeal before the Office of the President, the department's ruling was affirmed but slightly modified to increase the gratuity pay by another P50,000 per worker, for a total of P100,000.

PAL is also offering a one-year extension of medical and hospitalization benefits and guaranteed pay for one year of the salary given by the service providers.

INTERACTIVE TIMELINE: PAL labor woes

Source ABSCBN