Philippine Airlines (PAL) is urging the Philippine government to reconsider a ruling it granted in favour of the carrier's cabin crew union after a long drawn out dispute between the airline and the employees.
The country's Department of Labour and Employment (DOLE) had on 23 December ordered the carrier to back pay salary increases amounting to 222 million pesos ($5 million), raise the retirement age to 60 and increase allowances.
This follows a long dispute between the carrier and 1,600 cabin crew from the Flight Attendants and Stewards Association of the Philippines over the airline's retirement age for flight attendants.
The union members had threatened to go on strike and had refused to sign a new collective bargaining agreement until the carrier raises the retirement age.
PAL is now urging DOLE to allow it to maintain the retirement age at 45, and reconsider an earlier offer of a 80 million pesos lump pay-out to the union members.
"DOLE is directing PAL to grant hefty pay increases for July 2007 to July 2010 despite its knowledge and awareness of PAL's massive losses for the same period," says the carrier's president Jaime Bautista.
The airline posted a net loss of $14.3 million for the year ending 31 March 2010.