The Philippine Airlines is the first air service provider in Asia. It was established in 1941. PAL was one of the top corporations in the country but during the 1997 Asian financial crisis, they were severely affected. This phenomenon forced PAL to downsize their international operations. In fact, their fall was dubbed as the Philippines’ biggest corporate failure.
On a more recent note, July 2010, 25 of PAL’s pilots left their jobs to pursue better offers from foreign airlines without PAL’s knowledge. This turn of events brought PAL back into headlines and turned the bright but scorching spotlight on them. Furthermore, it was that same month when PAL announced they will start outsourcing employees.
So what did it mean when PAL said that they will start “outsourcing”? This meant taking in contractual employees (from a third party) instead of hiring their very own employees. Naturally, the labor union of PAL, which is PALEA, was far from happy upon hearing the news. For affected employees, this meant losing the benefits from PAL –getting only a fraction of what they are entitled to if their employment were transferred to the outsourcing company. To senior employees, this meant losing the security of tenure they have very hardly worked for. To them, it was just unfair. View full article »