Ok so here is the jist of it:
After a little bit of inquiry...the ATO Circular 01-06 is how you make of it and this is what I maybe naively concluding. It may work to the advantage of LT and Philippine Airlines but the circular is directed to ALL airmen. Which means all airmen are required to give/present a certification of flight time and a clearance from an employer or operator.
Admittedly, the additional requirement is a nuisance but nevertheless a requirement. The ATO does have some valid points: 1. In general, pilots (especially the General Aviation) were able to renew their licenses via certification of flight time which were at times fraudulently acquired (meaning they really never flew the time). There is a darkside in Philippine aviation. We are professional aviators, but of course, there are A LOT of us that are not. 2. If you can get a Cert of Flight time, you can get clearance from the owner or operator. The operator or owner is not going to issue a clearance if he/she knows that cert of flight time was acquired by fraud means. 3. It puts a period on the ATO stand regarding the exodus issue - it basically is not an issue as far as ATO is concerned. Company internal problems stays as is.
If it was signed to apeace LT, it was more to shut him up and his very stubborn President Jaime Bautista. But I doubt that it was signed because of the second visit of Jaime Bautista. NJ and PAL don't have a great relationship. And LT/PAL can complain to GMA regarding NJ, but NJ doesn't care...if he gets sacked, at least he gets sacked doing the right thing.