PhilippineAirlines: PAL statement as of August 17, 2010

There were no significant breakthroughs in today’s talks between the management of Philippine Airlines and the Flight Attendants and Stewards Association.

PAL maintained its P80-million offer to the cabin crew union, saying the company cannot give more due to its current financial difficulties.

Management also insisted on limiting talks to the economic aspect of the CBA to put closure to its 2005-2010 CBA with FASAP.

PAL wants the early retirement issue to be discussed during the next CBA covering the years 2010 to 2015. It’s not until 2018, or eight years from now, when the early retirement provision will affect any cabin crew.

Our president and COO, Mr. Jaime Bautista, was unable to attend the conciliation meeting at the National Conciliation and Mediation Board (NCMB). He's not feeling well. PAL was represented by its lawyers and some executives from our Human Resources Department.

On the early retirement age issue, PAL lawyers said the company should not take the blame for a CBA provision that FASAP leaders approved. Officers of the cabin crew union signed the CBA containing the provision setting an early retirement age not only once but three times in the past. They were not forced. They signed it voluntarily.

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