Philippine Labor Department hikes retirement age for PAL cabin crew to 60
Manila, Metro Manila, Philippines (AHN) – Philippine Airlines cabin crew scored a major victory in their long-standing labor row with the air carrier when the Department of Labor and Employed increased Thursday the compulsory retirement age for flight attendants to 60. The current retirement age under the collective agreement of PAL and the Flight Attendants and Stewardesses Association of the Philippines is only 40.
In a 21-page resolution, Labor Secretary Rosalinda Baldoz also ruled on several issues that had been a thorn on the side for the flag carrier and FASAP.
These include issues on pregnancy leaves that affect the computation of length of service for retirement, 13th month pay, Christmas bonus, rice allowance and trip passes.
Baldoz also allowed a monthly rice allowance worth $40.87 (PHP 1,800) from July 16, 2007 to July 15, 2010, which would cost PAL $567,666 (PHP 25 million) and three-year salary hikes expected to cost $4.5 million (PHP 200 million).
Baldoz found PAL guilty of age and gender discrimination because pilots retire at 60. Stewardesses who become pregnant are made to go on leave without pay and the time off from work is deducted from the female cabin crew’s service when computing for retirement benefits.
Baldoz’s decision is expected to end the rift between PAL and the flight attendants, who have threatened to strike during the peak Christmas travel season unless the main issue of a compulsory retirement age of 40 is resolved.
Another labor problem, though, is still unresolved between PAL and employees over a planned lay-off of 2,600 workers because of a plan to spin-off to third parties certain PAL services such as catering. No less than Philippine President Benigno Aquino III has stepped into the labor row by ordering a status quo from both sides until this problem is solved.
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