PAL fires more than a third of 7,000 employees

Philippine Airlines said on Monday it will cut about a third of its workforce by the end of this year, as travel restrictions brought on by the global pandemic severely affected operations. The pandemic has devastated the global aviation industry, forcing airlines to seek government bailouts, lay off workers and cut jobs. Tycoon Lucio Tan’s airline unit said it asked employees to request voluntary separation, the first stage of a workforce reduction initiative that may affect up to 35 percent of more than 7,000 employees or 2,700 workers. “The downsizing is part of a broader recovery and restructuring plan as the flag carrier rebuilds its national and international network amid the global pandemic,” PAL said. PAL laid off about 300 employees in February due to continued losses, compounded by travel restrictions and flight suspensions in areas affected by COVID-19. The airline suspended capital expenditures, adopted a reduced workforce, cut management salaries and cut non-essential expenses to control costs in March, at the start of the enhanced community quarantine period. “At the height of the pandemic, PAL chose to implement temporary licenses and flexible work arrangements to keep jobs as long as possible,” PAL said. “However, collapsing travel demand and persistent travel restrictions on most domestic and international routes have made cost cutting unavoidable, and PAL currently operates less than 15 percent of its normal number of daily flights after eight months of lockdowns, “he said. PAL said the staff reduction program would combine voluntary and involuntary measures, to be carried out in the fourth quarter of 2020. The airline assured employees that the measures will be carried out in a fair manner that meets all legal requirements. and with support for relocation assistance. . The airline said it continued to mount special repatriation flights to help bring home stranded Filipinos from the Middle East, Europe, North America and across Asia and cargo services to meet the public’s essential freight transportation needs and support chains. economic supply. PAL recently flew its second repatriation flight from Beirut with OFW fleeing the troubled Lebanese capital. PAL Holdings, the parent company of the publicly traded airline, sank further in the red in the first half with a net loss of P20.75 billion ($ 428.6 million). That compares with a net loss of P2.98 billion in the same period last year. PAL said shareholders injected capital and provided funds to maintain the airline’s liquidity. The announcement comes as the Philippines takes interim measures to revive its battered tourism industry by allowing domestic travelers to visit the island of Boracay, famous for its white sand beaches. Strict protocols require tourists to test negative for Covid-19 before they can travel to the popular vacation destination. The Philippines has the highest number of coronavirus cases in Southeast Asia, with more than 324,000 confirmed infections, including more than 5,800 deaths. With AFP