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How an airline is helping employees cope with restructuring

PAL spins-off three non-core units
By Entrepreneur Staff |

The country’s national flag carrier, Philippine Airlines, is spinning off some of its workers in the next few weeks; the company is also taking steps to make sure that the employees will be prepared for their future.

Aside from the separation pay and other incentives, the airline management is also organizing financial management seminars for workers affected by the spin-off of the company\\\'s three non-core units, namely airport services, inflight catering, and call center reservations.

PAL President Jaime Bautista said the seminars aim to help workers properly manage and invest their separation benefits. The flag carrier has lined up a series of seminars to be conducted by financial experts to guide workers in managing their finances and encourage them to engage in other sources of livelihood to boost their income.

"The separation packages our workers are guaranteed to receive must be handled judiciously to sustain them financially in the long-term. The financial experts\\\' assistance is most timely to guide our workers during this transition period," Bautista said.

In the meantime, Bautista said he continues to hold town hall meetings to discuss with affected workers the mechanics of the spin-off program as well as the procedures on how to avail of their retirement benefits and gratuity pay. This is part of the continuing dialogue between management and workers to facilitate the smooth and orderly implementation of the spin-off/outsourcing.

Bautista reiterated that PAL management has to adopt the restructuring plan to save the airline and ensure the continuous employment of its remaining 5,000 employees. “The spin-off is meant to ensure the survival of our 70-year-old institution.”

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