Philippine Airlines Ground Workers Stage Illegal Strike, Cancellations Erupt

Strategic Insights -

Hundreds of passengers were stranded in various airports across the country as 26 domestic and two international flights were canceled due to an illegal strike by Philippine Airlines (PAL) ground workers. The workers, representing the 8,018-strong Philippine Airlines Employees Association (PALEA), walked off the job Thursday, protesting low salaries. The strike came after a three-day negotiation between the union and management failed to reach an agreement.

Key Takeaways:

  • The strike is considered illegal by the airline, and those who participated in the picket are deemed to have forfeited their employment with the airline.
  • Not all members of the PALEA joined the mass action, with some reportedly maintaining their duties.
  • 26 domestic flights and 2 international flights to Kaoshiong, Taiwan, and Kuala Lumpur in Malaysia were canceled due to the strike.
  • Hundreds of passengers were stranded in various airports across the country.
  • The Philippine National Police was called in to take over vital facilities of the airline.
  • The strike followed a failed three-day negotiation between the union and management, with the union rejecting a 1 billion peso package deal that would increase the monthly salary of workers by 2,500 pesos.
  • At present, PALEA members receive an average monthly salary of 8,000 pesos, but demand an increase of 3,600 pesos.
  • The management cited the airline's current financial condition as the reason for not meeting the union's demands.
  • The latest available figures show that PAL's net income dropped to 56.9 million pesos ($2.1 million) for the first nine months of fiscal year 1993-1994, down from 1.167 billion pesos ($43 million) in the same period in the previous fiscal year.

Statistics:

  • 26 domestic flights were canceled.
  • 2 international flights to Kaohsiung, Taiwan, and Kuala Lumpur in Malaysia were canceled.
  • 8,018-strong Philippine Airlines Employees Association (PALEA) participated in the strike.
  • Hundreds of passengers were stranded in various airports across the country.
  • 56.9 million pesos: PAL's net income for the first nine months of fiscal year 1993-1994.
  • $2.1 million: PAL's net income for the first nine months of fiscal year 1993-1994 in US dollars.
  • $43 million: PAL's net income in the same period in the previous fiscal year in US dollars.
  • 8,000 pesos: The average monthly salary of PALEA members.
  • 3,600 pesos: The amount demanded by the PALEA members for salary increase.
  • 2,500 pesos: The increase in monthly salary offered by the management in the 1 billion peso package deal.

Sources:

  • "Philippine Airlines ground workers stage illegal strike" by United Press International
  • "Philippine Airlines Employees Association (PALEA)"
  • "Financial reports of Philippine Airlines"