Airline unions demand reinstatement for PALEA in Global Day of Action

Photos of action at Melbourne airport at https://www.facebook.com/media/set/?set=a.484791838239903.123818.100001272721169&type=1

Press Release

December 12, 2012

PALEA

Airline and other unions worldwide are demanding the reinstatement of members of the Philippine Airlines Employees Association (PALEA) in a Global Day of Action today. The supporters of PALEA leafleted Philippine Airlines flights out of the United States, Canada, Australia and Hong Kong in a show of international solidarity.

“A win for PALEA’s fight against outsourcing and contractualization will be a win for all airline workers,” asserted the unions abroad that joined in the Global Day of Action. Meanwhile PALEA members staged a mass action near the Ninoy Aquino International Airport today in participation at the day of action.

The management of Philippine Airlines (PAL) under the new president Ramon Ang opened talks with PALEA last October after a year of protests in the country and abroad. But talks have stalled over the demand for reinstatement. Thus in the last few weeks, PALEA and the labor unity coalition Nagkaisa have launched four rallies at the San Miguel Corp. headquarters in the Ortigas central business district.

The bitter labor row between PAL and PALEA and the continuing protests in the Philippines and around the world threatens to upset the ambitious refleeting and expansion plans of the flag carrier.

Aside from reinstatement, PALEA and its global supporters are calling for the dropping of criminal and civil charges against workers. Two PALEA members, including a single mother, have been arrested and detained while warrants remain outstanding for 37 other workers.

Gerry Rivera, PALEA president and vice chair of Partido ng Manggagawa (PM) declared that “We frequently hear the alibi that outsourcing is an international trend that workers have no choice but to bear. But the reality is that resistance to outsourcing is a global phenomenon.”

Participating in the Global Day of Action are the unions IAM Local 1781 in the San Francisco airport; CAW-TCA Local 2002, IAM Local 2323, CUPE Local 4092 in Toronto’s Pearson airport; the Australian Manufacturing Workers Union, Maritime Union of Australia, the Victorian Trades Hall Council and the Australia Asia Workers Link in Melbourne’s Tullamarine airport; and the Hong Kong Congress of Trade Unions and the Alliance of Progressive Labor at the Hong Kong international airport. Unite-HERE Local 5 in Honolulu staged the leafleting earlier last Saturday.

The unions have vowed to continue leafleting PAL flights until the demand for reinstatement is met. PALEA and Nagkaisa have planned weekly protests to bring the long running labor dispute over outsourcing and contractualization to a conclusion favorable to the workers.

“We have endured 14 months at the picketlines, two attempts to disperse the campout and several typhoons because this is a fight for the future of the present and future generation of workers. PALEA will never give up until its members are back to their regular jobs,” Rivera insisted.

Workers to hold Jericho March at San Miguel in celebration of human rights day

PRESS RELEASE

December 09, 2012

Invoking the principle workers’ rights are human rights, members of the broad labor coalition Nagkaisa! will be celebrating the International Human Rights Day tomorrow, December 10. 

But instead of a traditional march to Mendiola, Nagkaisa! members is holding a ‘Jericho March’ at the headquarters of San Miguel Corporation (SMC)  in  Pasig City to lend support to PALEA’s year-old battle for reinstatement and labor justice. 

“The labor and human rights movement’s support to PALEA will never end until the ‘walls of Jericho’ which were preventing their reinstatement crumble,” declared Partido ng Manggagawa (PM) chair and one of Nagkaisa! convenors Renato Magtubo.

Aside from labor, the human rights community lead by the Philippine Alliance of Human Rights Advocates (PAHRA) is joining the protest.  Both argued that PAL’s outsourcing/contractualization of regular jobs was in gross violation of the workers’ constitutional right to security of tenure.

SMC President Ramon Ang took control of the Philippine Airlines (PAL) in April this year after the beer giant infused at least US$500 million of fresh equity to the ailing flag carrier.  And upon his takeover of the captain’s seat, he declared that one of his top priorities was to resolve the lingering labor dispute in PAL.

“On the part of organized labor, we strongly believe that a just resolution of the PAL-PALEA dispute will serve the best interest of both parties, including the riding public who want to see PAL fly again with pride,” explained Magtubo. 

PALEA members had been fighting a desperate battle for reinstatement after the old management of the flag carrier locked them out in September last year after 2,400 regular workers refused to be outsourced in another service company.

Magtubo said the policy of contractualization demonstrated in PAL’s outsourcing plan is the latest form of modern-day slavery that workers want eradicated.

The labor leader also announced that beginning December 12, international unions will also beholding solidarity actions for PALEA at several airports where PAL has regular flights.

PALEA slams arrest of another member, sees impending arrest of 37 others

By: InterAksyon.com
November 8, 2012 4:02 PM

File photo of a PALEA protest-action, September 2011.Joseph Agcaoili/InterAksyon.com

MANILA, Philippines - The Philippine Airlines Employees Association (PALEA) on Friday condemned the arrest of another of its members as the group prepares for another protest-action at the airport area in Pasay City.

Esther Gonzaga was arrested Thursday noon in Makati City and was granted temporary freedom at 6:30 p.m. the same day after posting bail, PALEA said in a statement. 

Gonzaga, a community leader, was nabbed near her residence while attending a barangay meeting.

The arrest of Gonzaga followed the apprehension of Romeo Sayas, who was detained in Malvar, Batangas for several days before he was released on bail.

The arrests stemmed from the August 15, 2012 order by Judge Bibiano Colasito of the Pasay City Metropolitan Trial Court Branch 44 to issue warrants against 39 PALEA members who were charged with grave coearcion by the PAL management.

The case is in connection with the September 2011 PALEA's blockade of the PAL Inflight Center along the city's MIA Road to protest the flag carrier's outsourcing program.

PALEA said it "believes that the warrants of arrest on the remaining 37 PALEA members may also be served in the coming days."

PALEA said that it was a "harrassment case," but the management claimed that it was the group that harassed airline staffers and service providers during the blockade.

The management also filed another case against 234 PALEA members, who were accused of violating Republic Act 9497 or the Civil Aviation Authority of the Philippines (CAAP) Law.

The case was filed after PALEA members staged a protest at the Manila International Airport on September 27, 2011.

The management claimed that protesting PALEA members violated Section 81(b)(5) of the CAAP Law, which sanctions “any person who destroys or seriously damages the facilities of an airport or disrupts the services of an airport.”

According to Gerry Rivera, PALEA president and vice chairperson of the Partido ng Manggagawa, "no criminal information can be filed against workers without the required clearance from the Department of Labor and Employment."

He said this prohibition is stated in the Department of Justice's Ministry Circular No. 15 (Series of 1982) and DOLE Order No. 40-G-03 (Series of 2010)

“Absent such clearance, the courts are mandated to dismiss the charges outright. Such a policy, started after the formal lifting of martial law, aims to resolve rather than aggravate labor disputes and regulate the proclivity of capitalists to engage in harassment suits against workers,” Rivera said in a statement.

PALEA also assailed Colasito and Pasay Assistant City Prosecutor Orlando Mariano for finding probable cause and ordering the issuance of arrest warrants against 39 PALEA members.

“These officers of the court not only defied labor statutes but infringed on our members right to due process, and thus deserve to face administrative charges,” Rivera said. 

source: http://www.interaksyon.com/article/47554/palea-slams-arrest-of-another-member-sees-impending-arrest-of-37-others

PALEA condemns arrest of member

Press Release

October 17, 2012

PALEA

The Philippine Airlines Employees’ Association (PALEA) condemned the arrest of one of its members as it staged an indignation rally today in front of the Philippine Airlines (PAL) In-Flight Center near the Terminal 2 of the Ninoy Aquino International Airport.

PALEA member Romeo Sayas was arrested and jailed in Malvar, Batangas yesterday. PALEA supporters from the Partido ng Manggagawa (PM) chapter in Batangas immediately visited Sayas and reported that he is in good condition. Another 38 PALEA members, two of whom are women, also face detention once served arrest warrants issued by Pasay City Municipal Trial Court (MTC) Branch 44.

Gerry Rivera, PALEA president and PM vice chair declared that “The harassment case of grave coercion was filed by the old management of PAL against the PALEA 39 whovaliantly defended the protest camp when it was attacked by hired goons on October 29, 2011.”

He also announced that PALEA is going to file a motion to quash or recall the warrant of arrest and is mobilizing its members for protests at the Department of Labor and Employment (DOLE) and the Department of Justice (DOJ).

Aside from the case against the PALEA 39, there are two more criminal suits pending against union members due to the labor row. Rivera called on new PAL President Ramon Ang “to facilitate the resolution of the labor dispute by dropping the trumped up charges against our members which were filed under the old company management of Jaime Bautista.”

He explained that as enunciated in under DOJ Ministry Circular No. 15 (Series of 1982) and DOLE Order No. 40-G-03 (Series of 2010), no criminal information can be filed against workers without the required clearance from the DOLE. “Absent such clearance, the courts are mandated to dismiss the charges outright. Such a policy, started after the formal lifting of martial law, aims to resolve rather than aggravate labor disputes and regulate the proclivity of capitalists to engage in harassment suits against workers,” Rivera elaborated.

PALEA also lambasted Pasay Assistant City Prosecutor Orlando Mariano and Judge Bibiano Colasito of the Pasay MTC Branch 44 for finding probable cause and ordering the issuance of arrest warrants against 39 PALEA members. “These officers of the court not only defied labor statutes but infringed on our members right to due process, and thus deserve to face administrative charges,” Rivera insisted.

He also denounced PAL lawyer Atty. Santiago “Sonny” Quial for “legal machinations.” Quial is running for district representative in Pasay for the coming elections. “As many PALEA members are Pasay voters, we will make sure that a law breaker does not become a law maker,” Rivera claimed.

PAL vows to end dispute with workers

By Paolo G. Montecillo
Philippine Daily Inquirer

12:57 am | Monday, October 1st, 2012

Flag carrier Philippine Airlines’ (PAL) long history of dealing with labor woes may finally end with the company’s new management making serious attempts to restore good relations with its workers.

PAL president Ramon S. Ang said the company’s top officials have returned to the negotiation table with its former workers—under the PAL Employees Association (Palea)—to explore various options, including the reinstatement of former workers.

“Both sides are being reasonable. Things are looking better and we are starting to understand each other,” Ang said, describing the new management’s first meeting with Palea officials last month. “We are serious about this.”

Ang, who also sits as president and chief operating officer of PAL’s new controlling shareholder San Miguel Corp., said the resolution of the labor dispute with Palea was one of the airline’s top priorities.

The dispute stemmed from the previous management’s decision to shut down three “non-core” departments, particularly the airline’s call center reservations, airport services and in-flight catering groups, after these activities were outsourced.

The legality of the outsourcing scheme was questioned by Palea before the Court of Appeals, which has yet to decide on the case.

About 2,400 workers were laid off as a result of the move but were promised jobs at the outsourcing companies that took over the PAL activities. The outsourcing was done as a way to cut costs and turn the airline around.

The flag carrier posted a net income of $11.4 million in April to May of 2012, the first quarter of the airline’s current fiscal year.

“We want to find a solution. What they are asking for, and what we can give, we will make the two meet,” Ang said. “What’s important is that we treat them humanely.”

Source: http://business.inquirer.net/84858/pal-vows-to-end-dispute-with-workers#.UGjqHJNoKX8.facebook

The Fight for the Sky

The latest Asia Workers Organising newsletter on Airline industry disputes is now available through this link The Fight for the Sky.

PAL ditches second wave of retrenchments

By: Darwin G. Amojelar, InterAksyon.com
August 30, 2012 5:26 PM                      

MANILA - Philippine Airlines on Thursday said it was no longer necessary to retrench more workers to return the carrier to profitability.

"There is no need for PAL to cut more employees. In fact, we will hire additional pilots and 1,600 flight attendant for our re-fleeting program," Ramon S. Ang, president of PAL said.

PAL had entered a $7 billion deal with Airbus to purchase 54 aircrafts over the next three years. 

At end-March, PAL's workforce numbered 4,803, of which 463 were pilots; 1,626, cabin crew; and 2,714 ground employees.

Before the San Miguel group bought into PAL, the flag carrier's previous president, Jaime Bautista, said the airline would lay off 500 more people on top of the 2,400 employees retrenched after ground handling, ticket reservations and catering were outsourced.

The second round of layoffs was supposed to trim the number of employees in human resources, IT and logistics.

PAL had tapped SkyKitchen Philippines Inc. for its catering, SkyLogistics Philippines Inc. for ground handling, and SPi Global for call center reservations.

The airline had allocated about P2.5 billion in severance benefits for affected workers. 

Based on the October 29, 2010 order of Labor Secretary Rosalinda Baldoz, affected workers will receive separation pay equivalent to 125 percent of their monthly salary for every year of service, a P50,000 gratuity pay, a 100 percent conversion of unused vacation and sick leaves, trip pass, and other non-cash benefits.

Malacanang also granted an additional P50,000 gratuity pay.

http://www.interaksyon.com/business/41890/pal-ditches-second-wave-of-retrenchments

PALEA holds protest as 234 members threatened with arrest

Press Release

July 27, 2012

PALEA

Some 100 members of the Philippine Airlines Employee Association (PALEA) picketed the Pasay Hall of Justice this morning as union lawyers filed a petition for the Municipal Trial Court to review the finding of “probable cause” by a fiscal. In a resolution dated June 20, 2012, the city prosecutor recommended the filing of information against 234 respondents to the case.

“Ex-President Gloria Arroyo is freed on bail by a Pasay fiscal despite arguably strong evidence of electoral sabotage while a colleague threatens 234 workers with arrest for alleged ‘economic sabotage’ on dubious grounds. PALEA’s protest at the airport last September 27, 2011 was an exercise of the constitutionally guaranteed right of workers to concerted action and thus not illegal nor criminal,” asserted Gerry Rivera, PALEA president.

Warrants of arrest may be issued against the accused even as the resolution provides for bail of Php 6,000 each or a total of Php 1,404,000. Philippine Airlines (PAL) filed the case for alleged violation of RA 9497 or the Civil Aviation Authority of the Philippines (CAAP) Law, specifically Section 81 (b) (5) which sanctions “any person who destroys or seriously damages the facilities of an airport or disrupts the services of an airport”. PAL initially announced that some 300 PALEA members joined the protest action thus the respondents have been called the PALEA 300.

Rivera added that the decision has a chilling effect on labor relations and is a clear and present danger to workers rights. “Labor protests will then be banned in the aviation industry with workers penalized by both imprisonment and fine in violation of constitutionally guaranteed rights. This will be a grave precedent and new special laws can then be enacted to deny workers the freedoms of assembly, expression, self-organization and strike. But PALEA will not be cowed as our fight enters it 10^th month,” he explained.

“Early next week, we will also file a similar petition to the Department of Justice, which has jurisdiction over prosecutors, for a review of the resolution. We expect that these motions would stay the issuance of warrants of arrest,” Rivera added.

He explained that “The decision is void of any legal basis as no damages were committed to airport facilities. Moreover the case is a labor issue and thus prior authority from the Department of Labor and Employment and the Department of Justice should have been secured prior to the filing of the complaint. The CAAP Law is also explicit in providing that ‘only the Director General’ can file the appropriate charges and not the PAL Vice-President of the Airport Services as in this case.”

Rivera further asserted that PAL services deteriorated sharply after September not because of damaged equipments but due to lack of skilled and experienced manpower after PALEA members, in opposition to outsourcing, refused to transfer to assigned service providers. PALEA insists that PAL can only “fly the flag proud” by getting its regular workers back. Supporters of PALEA are calling for a boycott of PAL and its sister company Air Philippines until the laid off workers are reinstated to their regular jobs.

http://partidongmanggagawa2001.blogspot.com/2012/07/palea-holds-protest-as-234-members.html

PNoy’s SONA: Long in duration, short on its claim

Press Statement

July 24, 2012

President Benigno Aquino III’s SONA speech may have been the longest in history but it falls short on its claim of historic changes under his administration. The changes instituted are merely superficial not thoroughgoing. No social and economic reform has been implemented in the last two years and none forthcoming. PNoy even lacks the commitment to push for the Freedom of Information bill which should be a plank of his good governance advocacy.

PNoy asserts that good governance is leading to palpable improvements but only social justice will bring concrete change to ordinary peoples’ lives. Glaringly absent from the tons of numbers and data mentioned in PNoy’s SONA are statistics on poverty and hunger. It is no wonder since despite a decade of so-called GNP growth, the number of poor and hungry have remained intractable.

GNP growth only means increasing numbers of ‘Gutom Na Pilipino’ for workers and the poor.From 2003-2009 the economy grew by an average of 4.8% but the number of poor Filipinos increased from 19.8 million to 23.1 million. Poverty will not be dented no matter how many cases are filed against former president Gloria Arroyo and how many of her minions are jailed together with ex-Comelec chief Benjamin Abalos.

Regular jobs and living wages are needed not the conditional cash transfer which is a band-aid solution at best. Among the ASEAN nations, the Philippines has the most persistent incidence of poverty (defined as living on less than US$1.25 a day). We have the highest percentage of slum residents as a percent of its urban population among six Asian countries.

While the employment rate went up, as PNoy insisted, the number of underemployed—those who have work but are still seeking work—has increased from 7.6 million in April 2011 to 7.8 million in April 2012. Even as PNoy remains hardline in the struggle to bring Arroyo to justice, he is nonetheless is soft on the fight for social justice against entrenched vested interests. He was challenged and found wanting on the issue of outsourcing at Philippine Airlines which is the biggest labor dispute in the country. PNoy may have garnered the confidence of investors for the privatization projects under the Public-Private Partnerhip program, but he has earned the ire of workers for his approval of contractualization at the flag carrier.

Truly the real state of the nation is reflected in the lack of jobs, food, housing and justice for the Filipino masses. To tackle the challenges of destitution and joblessness, the anti-corruption campaign of President Aquino will not suffice. The answer lies in taking a new path of development away from the Aquinomics of privatization, contractualization and globalization.

PALEA accepts CA mediation, calls for workers' reinstatement

21-Apr-12, 12:50 PM | InterAksyon.com

MANILA, Philippines -- The Philippine Airlines Employees' Association has agreed to the Court of Appeals' offer to mediate its labor dispute with the flag carrier over the sacking of some 2,600 ground crew.

The union submitted a manifestation to the CA on Friday even as it called for a reinstatement of the laid off workers.

PALEA’s manifestation is in response to a CA resolution dated March 27 that asked management and the union if they were willing to have the dispute referred to the Court’s Philippine Mediation Center for “a final opportunity to explore the possibility of coming up with an amicable settlement of their dispute.”

Union president Gerry Rivera said they consider the CA’s offer “as an opening to end the labor row, which could not happened without the perseverance in protest by some 2,000 of our members for more than six months and in the face of three typhoons, two attacks on its campout and spending the Christmas holidays at the picket lines.”

The offer of mediation, he added, “further spurs us to continue the protest actions until we have finally won our demands.”

http://www.interaksyon.com/article/29984/palea-accepts-ca-mediation-calls-for-workers-reinstatement

It's official: San Miguel's Ang now PAL president

Posted on 04/20/2012 4:50 PM  | Updated 04/20/2012 4:56 PM

MANILA, Philippines - Ramon Ang, president of diversified conglomerate San Miguel Corp., has taken over as president and chief operating officer of Philippine Airlines (PAL), following a deal giving San Miguel a minority stake in the carrier.

Ang replaces Jaime Bautista, who resigned from his post as officer and director, said PAL Holdings Inc. in a disclosure to the Philippine Stock Exchange on Friday, April 20.

Former trade minister Roberto Ongpin and businessman Inigo Zobel have been elected as directors of the airline. Other new directors include Aurora Calderon and Ferdinand Constantino.

Taipan Lucio Tan remains as chairman.

Aside from Ang, other newly appointed officers of PAL include:

• Harry Tan - Treasurer;
• Estelito Mendoza - Corporate Secretary;
• Ma. Cecilia Pesayco (previously Corporate Secretary) - Assistant Corporate Secretary;
• Irene Cipriano - Assistant Corporate Secretary; and
• Daniel Ang Tan Chai - Chief Finance Officer.

Last April 3, San Miguel signed investment agreements with two holding companies owned by Tan for new shares in PAL and low cost carrier, AirPhil Express.

San Miguel, which has been diversifying away from its core food and drinks business into heavy industries, said it would shell out $500 million for the shares, equivalent to a 49% stake in the flag carrier.

The parties said the buy-in will help PAL in its refleeting program, and make it more viable and competitive.

PAL, Asia's oldest airline, has been bleeding financially due to a number of factors, including labor disputes and skyrocketing fuel prices. It has also been hit by increasing competition among players in the local and global aviation industry.

San Miguel, for its part, is expected to benefit from synergies between PAL and another subsidiary, Petron Corp. PAL accounts for 4% of Petron's jet fuel sales.

http://www.rappler.com/business/4128-it-s-official-san-miguel-s-ang-now-pal-president#.T5FITN2LfFs.facebook

PAL and AirPhil executives resign after San Miguel deal

BY RAPPLER.COM

Posted on 04/18/2012 10:39 AM  | Updated 04/18/2012 1:49 PM

MANILA, Philippines - Some of the top executives of local carrier Philippine Airlines (PAL) and its budget arm AirPhil Express have tendered their courtesy resignations a week after diversifying conglomerate San Miguel Corp and the main shareholders of the airlines entered into an investment deal. 

“We agreed that it was just right to do so given the new management that will take over. Almost all from the senior management level submitted courtesy resignations last week,” a board member of PAL told reporters on Tuesday, April 17. 

The $500-M deal announced last April 3 grants San Miguel a 49% stake in the holding firms that control PAL and Airphil Express, as well as management control.

In San Miguel's previous acquisitions, San Miguel usually takes over the top management posts, including finance and human resources, almost immediately after the new owners assume board seats. This was the case when San Miguel acquired direct and indirect stakes in oil giant Petron Corp in 2008. 

Under the investment agreements signed by San Miguel with tycoon Lucio C. Tan, the same airline director disclosed that the current PAL president and chief financial officer (CFO) would be replaced by people from San Miguel. On the other hand, the chair and treasurer of PAL would be retained. 

Further changes in both management and board levels have yet to be decided on since board meetings in both airlines are still to be scheduled.

“There is no board meeting yet. What is clear is that only the president and CFO positions would have to be vacated,” said another PAL insider.

It was not clear if San Miguel will replace the president and CFO of AirPhilippines Corp. as well.

Tycoon Lucio C. Tan is the chairman and chief executive officer (CEO) of both PAL and PAL Holdings while Jaime Bautista sits as the president for both.

Bautista has reportedly tendered his resignation.

Other PAL officers include Harry Tan, the vice chairman and treasurer, while Henry So Uy is the deputy CEO.

In listed firm PAL Holdings, the CFO is Susan Tcheng-Lee while the corporate secretary is Cecilia Pesayco. - Rappler.com

SMC takeover of PAL beneficial for Philippines

Published : Wednesday, April 18, 2012 00:00 Written by : RITCHIE A. HORARIO

San Miguel Corp. (SMC) President Ramon Ang’s “long love affair with aircraft” will help boost the country’s airline industry, Sen. Serge Osmeña said recently.

SMC is set to take control of Philippine Airlines (PAL), a scenario which will make Ang the president of the flag carrier.

Osmeña said that Ang’s entry into PAL will help the flag carrier become more globally competitive and revert the country’s air sector back to Category one under the ratings of the Federal Aviation Administration of the United States.

“Ramon Ang has had a long love affair with aircraft and his entry into the industry will help bring our air sector back to Category one,” Osmeña told The Manila Times.

Ang, also the chief operating officer of SMC, has confirmed that he will be taking over management control of the country’s flag carrier.

He will be replacing Jaime Bautista, who will likely remain a member of the PAL board and parent company PAL Holdings. While business tycoon Lucio Tan will still be PAL chairman, Ang will also sit in the board of the two companies.

Osmeña, who is the chairman of the Senate committee on Banks, Financial Institutions and Currencies, expressed belief that Ang’s takeover of the flag carrier “will be beneficial to PAL and the public.”

To be recalled, Ang and Tan signed investment agreements last April 3 that will result in the issuance of new shares to SMC for a stake in PAL and low-cost partner Air Philippines Corp. (Air Phil).

Under the said agreement, the SMC group will infuse $500 million for a 49-percent stake in PAL and in turn, an assumption of management control.

The holding companies of PAL and Air Phil—Trustmark Holdings Corp. (Trustmark) and Zuma Holdings and Management Corp. (Zuma)—will issue new shares to San Miguel Equity Investments Inc., a wholly-owned subsidiary of SMC.

Osmeña said that with the infusion of more capital, PAL’s service will definitely improve and that the riding public will benefit from it.

“The larger the capital made available, the more planes will be deployed and the more flights the riding public will enjoy,” he added.

Ang also said that he will be implementing a number of changes aimed at improving the service of the airline company. 

Source: http://www.manilatimes.net/index.php/business/top-business-news/21224-smc-takeover-of-pal-beneficial-for-philippines

Key PAL executives tender resignation

17-Apr-12, 7:01 PM | Darwin G. Amojelar, InterAksyon.com

MANILA, Philippines - Key executives of Philippine Airlines (PAL) and its parent firm tendered their resignation last week after San Miguel Corp. acquired a significant stake in Asia's oldest airline, according to a highly-place source.

The source said the board of directors of PAL Holdings Inc. and PAL submitted their courtesy resignation to give San Miguel a free hand in organizing a new management team.

Jaime Bautista, president of PAL and director of PAL Holdings, also tendered his resignation.

PAL's board members include Charles C. Chante,  Joseph T. Chua,  Estelito P. Mendoza, Cesar N. Santos, Washington SyCip,  Lucio K. Tan Jr. , and Michael G. Tan. 

PAL's indendent directors are Antonio Alindogan Jr., Enrique Cheng, Alberto D. Lina and Gregorio T. Yu .

The directors of PAL Holdings include Tan Jr., Cheng, Alindogan, Michael Tan, Harry Tan, Wilson Young, Domingo Chua, Juanita Tan Lee, and Johnip Cua.

Through wholly owned subsidiary San Miguel Equity Investments Inc. (SMEII), San Miguel entered into investment agreements with Trustmark Holdings Corp. and Zuma Holdings and Management Corp. giving the former a 49 percent stake PAL and Air Philippines Express for $500 million.

Trustmark and Zuma are majority owned by Lucio Tan, who is also chairman of PAL and PAL Holdings.

In a disclosure to the Philippine Stock Exchange, San Miguel said its unit SMEII will not have a direct equity interest in PAL Holdings nor in PAL, the operating company.

"SMEII shall have resulting proportionate interests in PAL Holdings, PAL, as well as in Airphil, to the extent of its investment in Trustmark and Zuma, respectively," San Miguel said.

"The investment of the company was based on the enterprise value of PAL and Airphil taking into account a discounted cash flow analysis of the ongoing business of PAL and Airphil," the conglomerate added. 

San Miguel also said there were no conditions precedent to the transaction.

The company further said the investments do not have any immediate effect on the financial condition and operations.

Source: http://www.interaksyon.com/article/29664/key-pal-executives-tender-resignation