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PAL Trims 35% Of Workforce


 7 September 2020

Flag carrier Philippine Airlines (PAL) disclosed over the weekend that it will implement another round of voluntary and involuntary manpower reduction starting October.

PAL presented its survival plan last week to its employees dubbed as "Project Gamma," calling for reduction of workforce by another 35 percent starting October.

The airline said it will let go of at least 1,800 people, both from ground and flight crews to keep their company afloat in this trying times.

PAL earlier implemented a five percent manpower reductions of its workforce last March as it let go 300 people, 200 of which were retrenched while another 100 opted for early retirement.


Project Gamma calls for PAL management to communicate with all concerned employees in the first half of October and offer them a voluntary separation program. It would also process voluntary separation requests. By second half of October, PAL will then process requirements for involuntary manpower reduction. This involves the processing of involuntary separation packages and the provision of employee support through outplacement services.

PAL said the airline would provide “severance pay that we can afford.” It will also comply with all the requirements of the Labor Code to ensure fair process in involuntary separation.

The airline earlier negotiated with aircraft manufacturer Airbus for deferred aircraft delivery schedules, as well as to different aircraft lessors for concessions on lease terms, including pre-termination of some lease contracts on planes.

PAL also secured 20% reduction of its contract for ground services from sister company Macro Asia and another undisclosed discounts for its fuel delivery costs from Petron Corporation.

The company saw losses widen to ₱20.93 billion from January to June this year versus ₱3.33 billion during the same period in 2019. Its revenues mostly coming from passenger ticket sales, fell 54.7 percent to ₱36.82 billion in the first semester of the year, according to its disclosure the the Philippine Stock Exchange.

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