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PAL Employees Win 10-Year Settlement

Source: Radio Australia    Author:    07/23/2008

Subject Concerned: Aircrew   Airlines   Human Resource   

Philippine Airlines (PAL) has been ordered to reinstate 1,500 crew members who lost their jobs during the Asian financial crisis 10 years ago.

The country's Supreme Court found the airline had illegally dismissed the staff in 1998, when it drastically reduced its fleet to prevent the business going under.

The ruling says the fact that PAL underwent corporate rehabilitation does not automatically justify retrenchment of its cabin crew members.

There was no immediate company reaction to the ruling, which overturned an appelate court's decision upholding the dismissals.

The Supreme Court ordered the carrier to pay the dismissed employees their full back wages and to rehire them.

It says if they can not be taken back, the company must provide separation pay equivalent to one month's salary for every year of service.

 

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