Philippine Airlines (PAL) has been ordered by the Philippine Supreme Court to reinstate around 1,400 flight attendants who were dismissed in 1998 when the carrier nearly collapsed and entered into receivership.

The Supreme Court’s Third Division says in its ruling that PAL unlawfully dismissed the flight attendants, who were among 5,000 employees laid off in mid 1998.

PAL at the time had huge debts and faced collapse, and it radically downsized its operations by slashing services, grounding aircraft and cutting staff numbers under Securities and Exchange Commission-supervised receivership.

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Employees, represented by various unions including cabin crew through the Flight Attendants and Stewards Association of the Philippines, have been fighting ever since to win back their jobs or be paid compensation.

The Supreme Court ruling that PAL must reinstate 1,400 flight attendants represents a reversal of an earlier Court of Appeals ruling that found PAL was justified in dismissing them.

The new ruling states that PAL must reinstate the laid-off flight attendants without the loss of seniority rights and pay them full back wages. For those who are not in a position to return to work, PAL is required under the ruling to pay back wages plus severance.

A PAL spokesman says from Manila that the airline has no immediate comment as “our lawyers are still reviewing” the ruling. However the carrier is widely expected to appeal.

PAL emerged from more than nine years of protection from creditors in October last year.


Source: flightglobal.com's sister premium news site Air Transport Intelligence news

Source: Flight International

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