Labor group blames Cebu Pac job scheme

14 January 2015

By Alena Mae S. Flores and Vito Barcelo

A labor group blamed job contracting for Cebu Pacific Air’s 20 flight cancellations and 288 delayed flights in Manila from Dec. 24 to 26 last year even as the company said legal options are being weighed following the decision of the Civil Aeronautics Board to impose a P52-million fine.

“We have received CAB Resolution No. 4 (BM 01-01-12-2015), and are currently in the process of reviewing the document, and its attendant legal ramifications,” the firm said in a statement on Wednesday. “We note that there may be some matters of fact requiring clarification, and are evaluating all our options.”

The Trade Union Congress of the Philippines-Associated Labor Unions blamed outsourcing and hiring of contractual workers for the breakdown of Cebu Pacific’s service.

“The damage could have been greatly minimized--financially and reliability--if the situation was handled and managed by regular workers,” Gerard Seno, TUCP-ALU executive vice president, said in a statement.

“There is a big difference between the quality of work rendered by a regular worker than an outsourced and contractual one.”

The CAB made its ruling after Monday’s hearing attended by Cebu Pacific representatives, Ninoy Aquino International Airport Terminal 3 manager Octavio Lina, and Manila International Airport assistant general manager Ricardo Medalla.

CAB executive director Carmelo Arcilla was quoted as saying that the fine would to national treasury despite clamor from displaced passengers to be compensated.

He said the Passenger Bill of Rights stated as recourse only rebooking, reimbursement and endorsement to another carrier.

According to Arcilla, the airline firm has cited air traffic congestion and terminal infrastructure deficiencies as contributory factors.

“The board therefore issued a strong reprimand and imposed a fine against Cebu Pacific in the amount of P52.110 million,” he said.

The board also required Cebu Pacific to establish and maintain appropriate service standards for all employees, organic and outsourced, especially in manning the check-in counters.

“The fine is based on the finding by the board that Cebu Pacific’s operational lapses and passenger manhandling constitute a breach of the basic condition of its certificate of public convenience and necessity, i.e. to provide proper, suitable, convenient, safe, adequate and reliable air transportation services,” Arcilla said.


  1. All the five-star, legacy foreign carriers serving Manila are represented by outsourced staff, yet they manage to provide five-star service. This is just typical left-wing, labour union propaganda. Welcome to the 21st century, where unions are no longer relevant!

    1. What a moronic statement. Unions are not important?

    2. Yeah they're not! Unless you are a left-wing activist. Unions are there to ruin big companies. And they are a business too. They don't look out for the employees. Look at the PAL union. Their leaders are supposed to help their members, yet they kept accepting money & free tickets from Lucio Tan. Ask the employees if their unions still have any power now? U might get a smack in the face! I'll say it again, in this day & age of hunan rights law that gives enough protection to ordinary workers, unions are a bygone concept!