Lucio Tan has done so much for PAL pilots
Mar 18, 2006
Updated 01:57am (Mla time)
Inquirer
THIS refers to the column (“What makes pilots special?”) of Solita Monsod. (Inquirer, 3/11/06) Allow us to set the record straight:
1. Over the past few years, Philippine Airlines (PAL) has taken significant steps to address the needs of our pilots, among them: improved pilots’ retirement package by 50 percent; use of part of their sick leaves, a privilege lost in the wake of the 1998 illegal strike; trip-pass benefits even without completing the required years of service; an incentive for technical stops on international flights, a benefit previously given only to the cabin crew; the Pilots Retirement Plan and the Pilots Occupational Disability Plan.
Also, PAL has asked the government to grant our pilots an income-tax holiday to match the tax-free status enjoyed by their Filipino colleagues in foreign airlines. For the long term, PAL has ordered five more trainer aircraft costing $1.5 million, which will enable us to double the output of new pilots to 56 a year.
2. The courts, not the Estrada administration, declared the 1998 pilots strike “illegal.” The Court of Appeals, in its August 2001 decision, held the strikers to have lost their employment status with PAL. The Supreme Court upheld PAL’s position in January 2002.
3. Since 1999, PAL has given yearly increases to pilots: base pay—35 percent; productivity pay for those with flying time of 60 hours and below -- 227 percent; for those exceeding 60 hours -- 161 percent.
4. The gross monthly salary (plus allowances) of our captains ranges from $4,000 to $7,000. Missed out in Monsod’s computation were the 20 percent contribution to the retirement fund and the 5 percent contribution to the disability fund.
Our medical benefits for them and their familes are among the most generous in the industry. In all, the total remuneration package for our senior pilots is not much off the $9,000-per-month (at the low end) offer of foreign carriers.
Consider, too, the unquantifiable social costs of taking overseas jobs, such as the pain of separation from family. Also, the job contract is for 3 to 5 years only -- enough time for the foreign carriers to train their local pilots -- after which the Filipino hires are no longer needed and they no longer have their previous career jobs to fall back on.
Monsod said that Dr. Lucio Tan treats our pilots “like dirt.” Considering all the initiatives Dr. Tan has taken for our pilots -- a vastly improved benefits package; yearly increases in pay; grant of additional incentives; a secure career with the national flag carrier -- such statement was most unkind.
Our company cares deeply about all our employees and it is our policy to provide them the best compensation and benefits package within our capacity, commensurate with their hard work and dedication to duty.
JAIME J. BAUTISTA, president and chief operating officer, Philippine Airlines, P.O. Box 1344, Makati City