Truth About Lucio Tan - 真正的陳永栽

SOS

2011-05-11T03:42:00.000+01:00

"When I despair, I remember that all through history the way of truth and love has always won. There have been tyrants and murderers and for a time they seem invincible but in the end, they always fall - think of it, always."

-- Mahatma Gandhi

INQUIRER OPINION - COLUMNS

SOS
Solita Collas-Monsod
Philippine Daily Inquirer

April 29, 2011

Rolando C. Gapud
Chairman of the Board
Del Monte Pacific, Ltd.
17 Bukit Pasoh Road
Singapore 089831

DEAR ROLY,

Please forgive the familiarity. To the best of my knowledge I met you only once when you were one of Ting Roxas’ fair-haired boys, and we were introduced because I worked briefly for him as a consultant. But I do know Nenita, a sorority sister from college, and our daughters are friends - so I guess I can claim some relationship by affinity. And of course I am very familiar with your work and your reputation - both of the highest quality.

I am writing this open letter to you because we need your help very badly again. By "we," I mean the Filipino people. By "help" I mean your testimony, or at least your deposition, in connection with Civil Case 005 - People of the Philippines v. Estate of Ferdinand Marcos.... LucioTan... etc., a total of 40 corporate defendants and 29 individual defendants - that was filed way back in 1987, and got to the trial stage in early 2006. And the "again" part is because you did execute an eight-page sworn statement, accompanied by two annexes which you yourself typed, on Jan. 14, 1987, which clarified the business and financial relationships between Ferdinand Marcos and his cronies during his dictatorship, and which served as the foundation for Civil Case 005.

Your affidavit ended by saying "...I am prepared to elaborate, if necessary, and execute such document or documents as may be needed to explain such part or parts of this Sworn Statement which may require clarification." You executed another two affidavits in Hong Kong, on the matter, giving more details, and reiterating your willingness to testify.

Why did it take so long for the Filipino people to come to you for help again? Not our fault, I assure you. As you know, the Presidential Commission on Good Government wanted to depose you sometime in 1993, (with oral examination) to be taken in Hong Kong (apparently because there were fears for your life which militated against your coming to the Philippines). But there were objections from some of the defendants, in particular Lucio Tan (please note that none of the Marcoses objected, neither did Cesar Zalamea nor Don Ferry nor the estate/heirs of Gregorio Licaros), and the Sandiganbayan (SB) ruled in their favor.

Why the ruling against taking your deposition? Because, the SB said, the defendants had not yet served their answers. Moreover, you were neither old, nor sick, nor infirm, so there was no urgency, said the SB justices. Of course, the PCGG appealed to the Supreme Court - and it took the Supreme Court eight years (2001) to decide the issue - siding with the SB. One wonders why it took eight years for them to decide. See what the Filipino people have to put up with?

And then, unfortunately, when the last answer from the last defendant was received in 2005, another barrier was raised against getting your deposition as Marcos’ financial consigliere, privy to all the financial machinations of the dictator. This time, even more unfortunately, the barriers did not come from the opposite camp, but from our side - namely the PCGG and the Office of the Solicitor General (OSG). The powers that be in these agencies just sat on the urgent requests of the government lawyers involved (Catalino Generillo for the PCGG, Mauricia Dinopol for the OSG) to ensure that you would be called to testify, or at least be deposed. Can you imagine, Roly? In 1993, they said that your testimony is "indispensable to establish the intricate unlawful business activities of the Marcoses and their principal business associates or cronies, including Mr. Tan," and yet when there were no more legal barriers to securing your testimony, they then delayed doing it for another five years.

You must know, of course, that former solicitor general and justice secretary Agnes Devanadera even went so far as to object to allowing Mariano Tanenglian, Lucio Tan’s brother and former chief consigliere, to testify against Tan, stating that this would not benefit the government’s case (the PCGG agreed with her!); and that the PCGG, at the behest of Devanadera, who in turn "behested" at the behest of Lucio Tan’s lawyer, fired its own lawyer (Generillo) who was making waves for the prosecution and striking fear in the hearts of the defense. And after having done so, the PCGG publicly announced that it had a weak case against Lucio Tan. The latter, by the way, was photographed sitting beside Devanadera at a testimonial for her in the Department of Justice. How’s that for a cozy relationship?

Now you surely see what the Filipino people have to put up with. And realize how much we need your help.

And the best time to help is now - because now, both the PCGG and the OSG are on the same page as the Filipino people. These two agencies have been showing a lot of spine and teeth, thank heavens. They’re doing things that were unimaginable under the previous administration - like asking for the SB justices to inhibit themselves (showing a pattern of bias), like pursuing once again the possibility of getting Tanenglian as a state witness, and actively trying to secure your testimony. Actually, it seems that the Aquino administration itself is on a mini-roll here. Ombudsman Merceditas Gutierrez has just resigned, and we’ve finally got a credible appointee to the Commission on Elections.

And with you on board, the Filipino people will finally have more than a fighting chance to get back what has been stolen from them. We’re talking about at least P220 billion here.

Please? For Inang Bayan. Sincerely, Winnie.

Get Real, Rays of Light

2011-05-04T19:23:00.001+01:00

Get Real
Rays of light
By Solita Collas-Monsod
Philippine Daily Inquirer
First Posted 23:21:00 03/25/2011
Filed Under: Judiciary (system of justice)

THAT FULL-PAGE ad taken out in this newspaper entitled “SO THAT THE PCGG AND OSG (and others) MAY HAVE THE FACTS RIGHT ON WHY THE PRESENTATION OF THEIR TESTIMONIAL EVIDENCE ON THE LUCIO TAN ILL-GOTTEN WEALTH CASE WAS TERMINATED BY THE SANDIGANBAYAN ON APRIL 23,2009” by Estelito P. Mendoza and Associates (lawyers for Lucio Tan) is an indication, from where I sit, that the actions of the new and revitalized Presidential Commission on Good Government may be starting to hit a nerve.

The reader will recall that I wrote last week that the PCGG/OSG had filed a motion with the Sandiganbayan for the justices hearing Civil Case 0005 to inhibit themselves because of their “manifest partiality and bias in favor of the powerful interests impleaded in this case (which) glaring inequity substantially eroded the Republic’s faith that this case would be resolved in accordance with law, justice and equity.”

The powerful interests adverted to is, of course, Lucio Tan who has so far managed to win all the cases filed against him, whether it be government agencies (i.e., the BIR) or his labor unions (the flight attendants’ union did win its case against him in the Supreme Court, won in Tan’s first motion for reconsideration, and then lost the second). For that matter, Tan has somehow managed to get his way with Congress as well. And let’s face it, Presidents, too, although so far P-Noy seems to have been able to resist his blandishments (it is my understanding that P-Noy himself refused any campaign contributions from Tan, but it has also been alleged that the latter managed to course it through some members of the Samar group).

It should not escape anyone’s notice that while the title of the ad refers to the April 23, 2009 open-court order of the Sandiganbayan terminating the prosecution’s presentation of testimonial evidence, what it reproduced is the July 20, 2009 Sandiganbayan resolution denying the motion for reconsideration filed by the PCGG/OSG. That is because the April 23 order was an oral one, and it is clear as a bell that it was done in a rush, with only the weakest attempts at justification, because the anti-graft court, presumably at the urging of Mendoza, was trying to stave off the possibility of Mariano Tanenglian (Lucio Tan’s brother) turning state witness. Whether or not a written order followed the oral one, I do not know. But even if there was one, the fact that Mendoza did not use that but preferred to reproduce a resolution handed down three months later is in itself very telling: they needed additional time to marshal the arguments necessary to justify the order of April 23.

Even then, I still am not buying their position. The partiality was manifest, and the explanatory note of Mendoza and Associates gives it away. Notice, dear reader, what Mendoza says: “The termination was not only justified but belated. The case has been pending since July 17, 1987, or now for nearly TWENTY-FOUR YEARS” (emphasis theirs).

And yet, when the Sandiganbayan talks about the “antecedent facts,” it starts with 2005, rather than 1987. And the reason becomes clear, when one sees the timeline (as provided to me generously by Catalino Generillo, who was hired by Haydee Yorac and whose judgment I will take over that of 10 Agnes Devanaderas).

So why did the Sandiganbayan start with 2005? Well because, dear reader, the delay between 1987 and 2005 was due to the collective efforts of the defendants, including Lucio Tan—dilatory tactics, including motions to dismiss, motions for bill of particulars, motions to suspend proceedings (even before the start of the formal trial). For example, it took Lucio Tan almost three years (March 1990) to file his answer to the initial complaint of the PCGG, and would you believe another nine years to answer the PCGG’s amended complaint? On the other hand, of the 17 postponements requested by the government, as cited by the court, only three are fully attributable to the government per the PCGG tally, while the rest were due to valid reasons, i.e., circumstances beyond its control.

Indeed, if the Sandiganbayan had taken cognizance of those defendant-caused delays, rather than just the prosecution-caused delays, there would clearly be no basis whatsoever to chafe at the delays they attribute to the prosecution, much less to terminate arbitrarily (justification three months later, as noted above) its presentation of evidence, in effect denying the latter the opportunity to fully present its case. How’s that for loading the cards against the good guys?

But lo and behold, it seems that some rays of light are appearing in what was heretofore a very dark horizon. The same day that the full-page Mendoza ad appeared in the Inquirer two days ago, the Sandiganbayan granted, in open court, the government’s motion to adduce additional evidence, and gave it an eight-month window to do so, the clock starting immediately.

Did the court change its mind because of the March 15 PCGG/OSG motion for the justices to inhibit themselves? One cannot tell. But in researching for this column, I came upon a report regarding a 2010 ruling by the Supreme Court (with Martin Villarama as ponente) that the Sandiganbayan (Second Division) committed grave abuse of discretion when it denied a PCGG plea to reopen a case for presentation of additional evidence.

The Villarama decision stated that the Sandiganbayan’s refusal would result in “miscarriage of justice”; and that, aside from this, the Sandiganbayan flouted EO 14, Series of 1986 issued by President Cory Aquino (when her word was law) that technical rules of procedure and evidence shall not be strictly applied to cases involving ill-gotten wealth.

Cheers.

Statement in Response to the Full-Page Advertisements of Atty. Estelito Mendoza
Posted on April 8, 2011 by The Commission

[Nota bene. The following statement, in response to the full-page advertisements of Atty. Estelito Mendoza, was circulated to certain members of the press. Unfortunately, except for Prof. Solita Collas-Monsod's article (25 March 2011) entitled, Rays of Light, to our knowledge, the following statement was neither covered nor mentioned anywhere else.]

The law firm of Atty. Estelito Mendoza, counsel for Mr. Lucio Tan, took out paid full-page advertisements in The Philippine Star (on 23 March 2011) and Philippine Daily Inquirer (on 24 March 2011), to purportedly explain why the presentation of the Republic’s evidence in the Lucio Tan ill-gotten wealth case was terminated by the Sandiganbayan on April 23, 2009.

The said advertisements were misleading and the facts presented were maliciously slanted to favor Mr. Tan and his co-defendants. It unfairly casts aspersions on both the PCGG and the OSG when both institutions only seek to exhaust all remedies allowed under the Rules of Court to present the government’s case. In taking out the paid advertisements, Atty. Mendoza violated Canon 8 of the Code of Professional Responsibility which requires a lawyer to conduct himself with courtesy, fairness and candor toward his professional colleagues.

The Delay was Not The Fault of the Republic

The July 20, 2009 Sandiganbayan Order which was printed as part of the paid advertisement lists down 17 instances when the government allegedly sought postponement of hearings. However, a closer reading of the 17 cited instances would show that only 3 are fully attributable to the government (15 February 2007, 11 June 2008 and 15 April 2009).

The rest of the postponements mentioned were due to valid reasons such as the sickness (duly supported by medical certificates) of the government’s counsel or witness, or due to the court process server’s failure to serve subpoena on government-proposed witnesses. Clearly, it is unfair to blame the government for the delay mostly caused by circumstances beyond its control.

Mr. Lucio Tan and his Co-Defendants Caused Delays

The complaint for recovery of ill-gotten wealth against Mr. Tan and his co-conspirators was filed on 17 July 1987. The government began its initial presentation of evidence only on May 24, 2006, more than nineteen (19) years later. The delay of nineteen (19) years from the time of the filing of the complaint to the time that the government started presenting its first witness was caused by collective efforts of Mr. Tan and other defendants.The records show that defendants filed motions to dismiss, motions for bill of particulars and on at least two occasions, Atty. Mendoza filed motions to suspend proceedings even before the start of the formal trial.

Timing and Motivation Behind the Advertisements

The paid full-page advertisements clearly violate the sub judice rule which prohibits parties and counsel from publicly discussing matters that are still being considered by the court. Moreover, it came out just as the government had filed separate motions for inhibition of the Justices of the 5th division of the Sandiganbayan for their manifest bias in favor of the Mr. Tan, and for the government to be allowed to present Mr. Tan’s brother, Mr. Mariano Tanenglian as a witness for the government.

In as much as a trial is intended to be a search for the truth, the government wants to present Mr. Tanenglian as a witness and for the court to hear what he has to say. For one reason or another, the previous PCGG and Solicitor General did not want him to testify for the government. We disagree. Mr. Tanenglian has offered his willingness to testify for the Republic, we believe that the court and the Filipino people should hear what he has to say.

Final statement

It is beyond doubt that the full-page advertisements were precisely timed to influence the court as it evaluates the motion for inhibition and the motion to adduce new evidence which includes the testimony of Mr. Tanenglian. It is clearly part of Mr. Tan’s well-funded and orchestrated effort to prevent Mr. Tanenglian from testifying, clearly driven by fear of the truth that he and his associates have successfully hidden from the public eye for the past 24 years. While we cannot guarantee what exactly Mr. Tanenglian will say, the PCGG will fight for his right to testify and narrate the circumstances as to how Mr. Tan has accumulated his present wealth generated as a result of an unholy and corrupt partnership with former President Marcos to the great prejudice of the Filipino people.

Who got the facts wrong?

2011-04-16T06:30:00.001+01:00

http://opinion.inquirer.net/inquireropinion/columns/view/20110415-331381/Who-got-the-facts-wrong By Solita Collas-Monsod Philippine Daily Inquirer First Posted 22:28:00 04/15/2011

ESTELITO MENDOZA and Associates (EMA), lawyers of Lucio Tan (and also Danding Cojuangco, according to the latest reports on the San Miguel case), paid for another full-page ad in this newspaper (April 2) in reaction to my column of March 26. According to them, I gave "unwarranted meaning" to their reproducing the July 20, 2009 Sandiganbayan resolution denying the motion of the Presidential Commission on Good Government and Office of the Solicitor General for reconsideration of its order on April 23,2009 terminating the presentation of testimonial evidence by the prosecution.

Excuse me. I gave "unwarranted meaning" to the July 20, 2009 resolution? Well, who reproduced the whole thing in the first place, paying for one full-page ad in order to do so? They must have thought the document was significant, unless they can afford to waste money. And then when I react to it, they consider that I am giving "unwarranted meaning" to it? If they didn’t want anybody to take a close look at it, then why reproduce it at all?

So now they reproduce the transcript of the April 23, 2009 Sandiganbayan hearing so that "the readers of Ms Solita Collas-Monsod may have the FACTS right…" Does that mean that the first full-paid ad didn’t have the facts right? If so, that would be fine with me, because my column precisely commented that the Sandiganbayan was selective in its choice of time frame, particularly since the EMA ad complained that the case has been pending for almost 24 years. And if EMA thinks that it was I who didn’t have the facts right, wouldn’t it have been better to point out exactly where I got my facts wrong?

Because, difficult as it was (I had to use a magnifying glass), I did read the ad, which was described by EMA as "a copy of the relevant portions of the Transcript … of the hearing of April 23, 2009 … when it issued the Order in open court." Only to find out that almost half of the "relevant portions" was devoted to what Mendoza said during the hearing (sneaky, sneaky).

Moreover, it must be noted that the Sandiganbayan had nothing to say about-nor did it even ask the defendants to respond to-Solicitor Mauricia Dinopol’s argument (quoting her boss) that "although the complaint was filed some time in 1987, the defendants were also at fault in the delay of the case, Your Honor, because they filed several delaying pleadings also, Your Honor, so that the last pre-trial brief was filed some time in 2005. By that time, the evidence that we would have already presented in 1988 and 1989 were already not available readily, Your Honor, to the government."

Ignoring such relevant (in the real sense of the word) facts-by starting the time frame from 2005 instead of 1987-will not make them go away.

It turns out, by the way, dear readers, that this is not the first time the defense tried to get the Sandiganbayan to terminate the prosecution’s presentation of testimonial evidence. Would you believe that in late 2007, barely two years into the trial proper, the defendants (read EMA) filed a motion to order the government to conclude the presentation of its evidence? The reason given: the case had been pending for over 20 years and its pendency had inflicted irreparable damages to the defendants. They delay the trial for 18 years, and then get impatient after two years. Chutzpah.

The opposition to such a ludicrous motion, as drafted by Catalino Generillo (who was then relieved from his PCGG job at the request of EMA) is instructive. He compared it with the plunder case against Joseph Estrada (and seven other named defendants plus John and Jane Does) which involved less than P10 billion, and which took 19 months for the presentation of evidence by the prosecution. In contrast, Civil Case 005 is against 28 individuals and 40 corporations, involving at least P200 billion. Generillo also pointed out that the motion was filed after the testimonies of former PCGG Chairman Jovito Salonga, then Malacañang Museum Director Jeremy Barns and then Rep. Ferdinand Marcos Jr., the latter two with documentary and testimonial evidence.

And then, lo and behold, this second move to terminate the evidence of the prosecution, which came at just about the time Mariano Tanenglian, Lucio Tan’s brother, wanted to (he apparently still wants to) testify as a prosecution witness. Coincidence? My sainted foot. More like a pattern-to which the Sandiganbayan seems to be blind.

But all of the above seems to have been rendered moot and academic, because Generillo says (citing Attorney Pabulayan, clerk of court of the Sandiganbayan’s 5th Division) that the written order of the court granting the government’s motion to adduce additional evidence was released last Wednesday. Per that order, the motion was granted "without objection from the defendants and in the furtherance of justice."

At this point, I will not look this gift horse in the mouth.

* * *

Erratum: In last week’s column, I stated, based on an informant’s statement (an insider), that Grace Tan Pulido resigned from the Department of Finance when Cesar Purisima came in (during the Arroyo administration). Pulido has assured me that she resigned way before Purisima became finance secretary, and that in fact it was Purisima who batted strongly for her appointment as chair of the Commission on Audit. My apologies to readers for giving them the wrong information, and to Cesar Purisima for the slur on his character. But I suggest that he treat his subordinates with greater respect.

Could PNoy end Lucio Tan’s and ilk’s corrupt practices?

2011-04-16T06:27:00.003+01:00

By Frank Wenceslao
Lucio Tan

Readers of my "PINOY WEEKLY" column and its online version on GlobalBalita.com convey a growing impatience that President Aquino’s war on graft and corruption is caught in an old cliché that the more he announces changes, the more things remain the same.

There’s also a growing feeling that members of the administration are afraid to innovate. For instance, a Cabinet member with only educational attainment to rely on and no administrative experience easily succumbs to the status quo to become highly dependent on career bureaucrats. The fear to innovate stems largely from fear of the media not to get credit for success or all the blame if they fail more so when media practitioners slant reporting whichever way favor their political or pecuniary interest.

The President should get out of the confines of his advisers whether they’re relatives, former classmates or close friends. Sad to say, his options for policy-making and solutions to problems are too tilted towards legal perspectives. Secretary Paquito Ochoa reportedly guards access to the President zealously when his experience is limited to legal practice and as former QC Hall administrative officer that his legal perspective dominates Malacañang thinking even with regards to purely economic and financial matters.

Sufficient resources should be devoted to fight the war on G&C with reforms and better experienced staffing from top to bottom not afraid to innovate with the latest international anticorruption strategies and tools, not by creating a new agency. Presidential advisers especially lawyers are apparently convinced fighting the war in the corrupt Philippine justice system, who ignore the UNCAC and other anticorruption international agreements.

My colleagues and I can’t understand, for instance, why after six months there’ve been no changes in the administration’s anti-G&C efforts as though GMA’s policies continue. No agency under the DOJ such as PCGG or NBI; the DOF such as BIR or BOC; the Bangko Sentral such as the Anti-Money Laundering Council, nor individual initiative has drawn on the anticorruption studies, research and experience of the Philippine Anticorruption Movement USA, Inc. (Pamusa). Nobody has tested if Pamusa can really work with, submit G&C evidence to the FBI and draw support of the USDOJ and other federal agencies to search and recover the stolen assets from the Filipino people hidden in the U.S. Pamusa has also been waiting for said agencies to utilize it in asking U.S. federal agencies or their foreign counterparts, for instance, in China required by the UNCAC’ international cooperation provisions (UNCAC-ICP), particularly these excerpts, to wit:

"Countries agreed to cooperate with one another in every aspect of the fight against corruption, including prevention, investigation, and the prosecution of offenders. Countries are bound by the Convention to render specific forms of mutual legal assistance in gathering and transferring evidence for use in court, to extradite offenders. Countries are also required to undertake measures which will support the tracing, freezing, seizure and confiscation of the proceeds of corruption."

For starters, Pamusa can sue Lucio Tan for corrupt practices in the U.S. according to our volunteer counsels. Lucio could be indicted for corporate and accounting scandals which could end the web of corruption he has woven around himself. We have evidence against Lucio to be like several CEOs of U.S. conglomerates such as Enron, Worldcom, Adelphia, TYCO, etc. sentenced to jail for corporate crimes, or pay millions of dollars of fines like foreign companies, e.g. Deutsch Bank, Siemens AG, Union Bank of Switzerland, Daimler AG (maker of Mercedes Benz), etc. to stop U.S. criminal investigation and possible prosecution of top officers.

Pamusa’s volunteer lawyers agree Lucio is now in a ditch. The PCGG can charge him through Pamusa in the U.S. and/or China of corrupt practices emerging out of the application for the proposed Allied Bank-PNB merger in the U.S. Lucio’s counsel probably overlooked that the application would lead U.S. banking regulators to look deeper into the two banks’ ownership before approval is granted. One condition is for Allied to divest of controlling equity in a small San Francisco bank, Oceanic Bank.

After waiting for several months the buyer John K.C. Ng, father-in-law of Lucio’s son, Michael, withdrew his offer. Although he gave a different reason, Ng presumably withdrew not wanting to be embroiled in Allied using Oceanic to launder money earned by the Marcos’ companies Lucio usurped but claimed by PCGG now pending in the Sandiganbayan.

Lucio as Allied chairman, among his other management positions such as in PAL, could probably be indicted for at least four (4) serious U.S. crimes, namely: money laundering abovementioned; racketeering for investing illegal funds of Marcos-owned or controlled corporations; foreign corrupt practices for investing illegal funds of the same Marcos-owned or controlled corporations and, of course, conspiracy with others to violate U.S. laws.

Pamusa’s volunteer counsels believe that to really nail Lucio the administration shouldn’t spare efforts for the SC to allow Lucio’s brother, Mariano Tanenglian, to testify and confirm Marcos’ ownership of the companies claimed by the PCGG. And when Lucio falls, others would follow such as Imelda Marcos, her children and brother, Kokoy Romualdez whose $101 million personal net worth in 2010 according to Forbes Magazine could’ve come only from Marcos’ ill-gotten wealth allegedly shared with GMA for her protection against PCGG seizure. As another consequnce, PCGG would enhance its claim to recover Marcos’ equities in companies he showered with government favors now "owned" by Henry Sy, John Gokongwei, Emilio Yap (who usurped Manila Bulletin), etc.

Moreoevr, I can say without fear of contradiction that Pamusa can recover the single-unit apartment of 2-bathroom at New York’s Trump Tower costing over $3.3 million acquired by Gen. Carlos Garcia allegedly for Gen. Angelo Reyes. Pamusa can seek the help of the USDOJ, Treasury Department’s Financial Crimes Enforcement Network (FinCEN) and FBI to sue Gen. and Mrs. Garcia, their children and the Trump Tower to recover for the Philippine Government the apartment, the $100,000.00 in cash smuggled by Garcia’s children into the U.S., and their other illicit assets in America.

Is Philippine Airlines for sale? ... Succession issues

2011-04-12T16:28:00.000+01:00

Is Philippine Airlines for sale?

By Lala Rimando, abs-cbnNEWS.com

Posted at 01/13/2011 9:05 PM | Updated as of 01/17/2011 9:48 PM

MANILA, Philippines - There are ongoing talks between the management of local carrier Philippine Airlines (PAL) and potential investors.

This was confirmed on Jan. 13 by PAL Holdings, the listed firm that owns 85% of PAL.

However, these talks are purely "exploratory," stressed PAL Holdings in a disclosure to the stock exchange.

"Upon inquiry from the President of Philippine Airlines, Mr. Jaime Bautista, the latter neither confirmed nor denied any serious discussion with Mr. Ramon Ang on the purchase of 40% of Philippine Airlines, saying that any alleged talk with any party are all exploratory in nature," PAL Holdings' corporate secretary Ma. Cecilia L. Pesayco wrote in the disclosure.

The listed firm issued the disclosure after a columnist of The Philippine Star wrote that Ang, president of conglomerate San Miguel Corp, is PAL's "knight in shining armor" who is "dead set in getting into the airline business."

The same online piece added that PAL chairman taipan Lucio C. Tan has allegedly "decided to unload a substantial number of shares from the country's flag carrier with the right buyer and divest his holdings at a premium price."

Speculation has been rife that the 70-year-old airline is on the selling block after it encountered massive losses of US$312-million from 2008 to 2010 largely due to previous spikes in fuel prices, which account for bulk of its operating expenses.

Succession issues

Talk has also been rife that the health of Tan has been deteriorating. This has raised issues about succession.

Tan, who has several heirs and has had disputes with his most trusted brother and business partner, was considered to have cashed in on Fortune Tobacco, the undisputable leader in country's cigarette market for decades.

In February, Fortune inked a joint venture agreement with multinational cigarette maker Philip Morris for an undisclosed amount.

Besides PAL and Fortune Tobacco, Tan also owns considerable stakes in beermaker Asia Brewery, commercial banks Philippine National Bank and Allied Bank, among others.

Tan is the second richest in the country, next to mall magnate Henry Sy, and one of the three Filipinos whose wealth has breached the billion-dollar mark, based on estimates of Forbes.

His wealth stands at $1.2 billion in July 2010, according to Forbes. A big chunk of his fortune comes from Hong Kong-based Eton Properties, which has been pursuing affordable residential and sprawling township projects in the Philippines.

Interestingly, his son and namesake, Lucio Tan Jr., has been trying to move away from the shadows of the 77-year-old patriarch.

Tan Jr. has bought into MRC Allied, an inactive mining stock listed in the local stock exchange. MRC Allied has been tapping the capital markets -- instead of his dad's billions -- to raise funds for prospective projects in mining and power.

Philip Morris, Fortune Tobacco in 'marriage of equals''

2011-03-31T20:20:00.000+01:00

By Ricky Carandang, ABS-CBN News

http://www.abs-cbnnews.com/business/02/25/10/philip-morris-fortune-tobacco-marriage-equals

His brother Harry offered an explanation.

"The problem in any business decision is not 100% purely that you’re looking at the market share, but you’re also looking for other, rofitability and efficiency, the way how management...the way that you carry, you know, the professional management of the company. So the reason we’re entering to this one is surely not just one factor but many other factor that we’re thinking a multiple effect that which would achieve you a lot of cost saving which is a waste, I mean to say this can be, nobody make it just a waste, but because of this synergy, you can save a lot of this thing of the waste," said Harry in the press conference announcing the new joint venture.

But many observers say there's more to this deal than meets the eye. Among the Chinese business elite, there has been consistent talk of Tan's poor health and the problems of succession.

Tan has been involved in a very public dispute with his brother Mariano Taneligan, who until recent years, was his most trusted consiglieri.

Mariano has even threatened to testify against Lucio in the Marcos wealth cases.

Mariano was expected to run the Tan empire until the lines of succession between his numerous children became more clear.

But so far, family disputes have prevented a clear succession. With the succession unclear, and with his health reportedly failing, Tan seems to have opted to gradually sell his tobacco business.

Neither Harry Tan nor Philip Morris's Chris Nelson would address the issue directly.

"It’s not fair to speculate so it’s conceivable. But frankly speaking, we’re not looking at that. What we’re looking at is that they offer, as I said, expertise in the domestic business. I think we bring skill set for international, and we look forward to marrying that together," said Nelson.

But Harry did admit that if they sell out, they would be required to offer their shares in PMFTC to Philip Morris.

"So far, we are happy with what, you know, just like marriage, 50-50. Whatever the property, the earnings. And we’re not even thinking of divorce. Today is just our marriage day. Hopefully you will recommend the question that we are going to divorce – I buy you out or you buy me out," Tan said.

2011-03-30T18:04:00.000+01:00

http://opinion.inquirer.net/inquireropinion/columns/view/20110325-327652/Rays-of-light

Get Real
Rays of light
By Solita Collas-Monsod
Philippine Daily Inquirer

First Posted 23:21:00 03/25/2011
Filed Under: Judiciary (system of justice)

2011-03-08T18:08:00.002Z

This news report is a stark contrast to the deafening silence of media regarding the probe initiated by House Resolution No. 1559. Sponsored a year ago by cause-oriented representatives from various party-list sectors, House Resolution No. ...1559 reads:

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FOURTEENTH CONGRESS
Third Regular Session

HOUSE RESOLUTION No. 1559 (filed January 18, 2010)

Introduced by Bayan Muna Rep. Satur C. Ocampo, Gabriela Women's Party Rep. Liza L. Maza, Anakpawis Rep. Rafael V. Mariano, Kabataan Rep. Raymond V. Palatino, Bayan Muna Rep. Teodoro A. Casiño, Gabriela Women's Party Rep. Luzviminda C. Ilagan, Anakpawis Rep. Joel B. Maglunsod, and Bayan Muna Rep. Neri J. Colmenares

A RESOLUTION DIRECTING THE COMMITTEE ON GOOD GOVERNMENT AND PUBLIC ACCOUNTABILITY TO CONDUCT AN IMMEDIATE INQUIRY ON THE SPECIFIC MEASURES, AND INADEQUACIES THEREOF, TAKEN BY THE DEPARTMENT OF JUSTICE, THE OFFICE OF THE SOLICITOR GENERAL, THE OFFICE OF THE OMBUDSMAN, THE PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT, THE PRESIDENTIAL ANTI-GRAFT COMMISSION, THE BUREAU OF INTERNAL REVENUE, AND THE LOCAL GOVERNMENT OF ILOCOS SUR IN RESPONSE TO THE ALLEGED TAX EVASION AND FOUL PRACTICES OF MULTI-BILLIONAIRE BUSINESSMAN LUCIO TAN AS EXPOSED BY WHISTLEBLOWER ELPIDIO QUE

Whereas, a concerned citizen named Elpidio Que, who is a resident of Vigan, Ilocos Sur and a former regional sales manager of one of the companies owned by businessman Lucio Tan, has repeatedly called the attention of the Department of Justice (DoJ), the Office of the Ombudsman, the Presidential Anti-Graft Commission (PAGC), the local government of Ilocos Sur, members of the press and members of Congress, among others, to the allegedly atrocious tax evasion schemes, amounting to hundreds of billions of pesos, and other foul business practices allegedly committed by Tan;

Whereas, Que also reported to the said bodies certain instances wherein he observed key government officials acting inappropriately or not responding at all to his complaints;

Whereas, Que claims to have personal knowledge, documentary proof, as well as several colleagues who are likewise willing to testify under oath, revealing details of the tax evasion and foul practices allegedly committed by Tan;

Whereas, Solita Collas-Monsod, former Director-General of the National Economic and Development Authority (NEDA), has rigorously tackled in her columns in the Philippine Daily Inquirer and BusinessWorld Que's exposes, the intricate details surrounding Sandiganbayan Case No. 0005 or the government's case against Lucio Tan and the estate of Ferdinand Marcos, and the apparent hesitation of government agencies such as the PCGG, the Sandiganbayan, the Ombudsman and the DoJ to win the said case by rejecting a possible state witness, among many other instances of incompetence, plain inaction or even treason;

Whereas, Sandiganbayan Case No. 0005 involves the alleged illicit business relationship exclusively entered into by Ferdinand Marcos and Lucio Tan and involves an estimated P220 billion to P330 billion of assets which, in principle, now belongs to the government and the Filipino people;

Whereas, the offer of Mariano Tanenglian, Lucio Tan's younger brother, alleged right hand man for over 40 years and treasurer of Tan's corporations, to serve as state witness in exchange for criminal and civil immunity has been mysteriously rejected by the DoJ, OSG, and PCGG thereby casting doubt on the integrity of the said government bodies;

Whereas, Catalino Generillo, former PCGG lawyer who has documentary evidence and expertise on Sandiganbayan Case No. 0005, appears to have been wrongfully removed from the case due to his diligent performance of his duties;

Whereas, the Bureau of Internal Revenue appears to have failed in its role of collecting taxes and going after tax evaders, in this case, as alleged by Que, the biggest fish of all;

Whereas, in a time of worsening economic crisis, the said billions of pesos worth of assets, if indeed it belongs to government, must be recovered and allocated generously to provide for the Filipino people's basic needs and build the foundations for the country's genuine development;

Whereas, the Committee on Good Government and Public Accountability has jurisdiction over "all matters directly and principally relating to malfeasance, misfeasance and nonfeasance in office committed by officers and employees of the government and its political subdivisions and instrumentalities inclusive of investigations of any matter of public interest on its own initiative or upon order of the House";

Now therefore, be it resolved, as it is hereby resolved, that the Committee on Good Government and Public Accountability conduct an immediate inquiry on the specific measures, and inadequacies thereof, taken by the Department of Justice, the Office of the Solicitor General, the Office of the Ombudsman, the Presidential Anti-Graft Commission, the Bureau of Internal Revenue, and the local government of Ilocos Sur in response to the alleged tax evasion and foul practices of multi-billionaire businessman Lucio Tan as exposed by whistleblower Elpidio Que.

TO PARAPHRASE CHARLES LAMB, MONEY TALKS, BIG MONEY DOESN'T - IT HIRES A STAFF OF PR MEN.

QUO VADIS PINOY!

Allied Bank security chief insists top management banned Tan brother from entering family owned building

2011-03-08T18:08:00.001Z

By KRIS BAYOS
March 19, 2009, 5:02pm

It was the top management of Lucio Tan’s bank in Makati City that has officially banned his younger brother from entering the family-owned corporation since January.

This is what Allied Banking Corporation’s security chief Christopher Dobles disclosed yesterday as he submitted his five-page counter affidavit to refute the charges of grave coercion filed against him and six security guards by Mariano Tanenglian.

Saying there is no basis for Tanenglian’s complaint, Dobles maintained that he is in no position to question the debarment instruction of the top management he received "sometime in January 2009."

"I did not find anything wrong with the instruction given to me. After all, the top management may very well bar any individual from entering the private premises of the bank. As an officer, I have no right to question who are being allowed entry into the center. I have no discretion to choose who should be granted access," Dobles said.

He, however, failed to name the top executives who ordered Tanenglian’s debarment or even produce the memorandum pertaining to the instruction.

Tanenglian’s complaint came after he was allegedly "forced, threatened and intimidated from entering" the car park of Allied Banking Corporation at the corner of Dela Rosa and Gallardo streets in Legaspi Village last February 4.

Despite being a stockholder, treasurer and member of the board of directors of the corporation since 1977, Tanenglian, then aboard a white Mercedes Benz (XPT 868), was blocked by allegedly heavily armed security guards who raised their firearms in a threatening and intimidating manner "as if they would not hesitate to use their firearms if we would proceed.

Pamusa’s Case vs. Lucio Tan

2011-02-28T19:49:00.000Z

http://globalbalita.com/2009/pamusas-case-vs-lucio-tan

This column’s readers know the Philippine Anticorruption Movement USA, Inc. (Pamusa) is authorized by the USDOJ to participate in fighting corruption and kleptocracy in support of the enforcement of UNCAC by U.S. laws which has been reinforced by the recent G20 London Summit ending bank secrecy for tax evasion investigation.

Pamusa’s lawyers have gathered sufficient evidence to charge Filipino big fishes starting with Lucio Tan in the United States for corruption, mail or wire fraud, money laundering and racketeering (violation of RICO). Moreover, Tan’s and family members’ U.S. businesses have put themselves under U.S. jurisdiction for violation of the U.S. Foreign Corrupt Practices Act (FCPA) and Anti-Trust Laws. For instance, a Tan-owned company and Boeing have conspired in the procurement and leasing of planes including spare parts and support services for Philippine Airlines at questionable transfer pricing that make Tan and family members probably guilty for violating the FCPA and detrimental to American stockholders of PAL’s holding company, Baguio Gold Holdings Corporation.

Pamusa has submitted its evidence to the FBI to investigate Tan. Gloria Macapagal Arroyo could add the government evidence in various cases against Tan which he has danced around for too long. GMA may also prove the seriousness of her anti-graft and corruption program, thus save her presidency from infamy and enshrine a legacy of reforms for our people to perhaps pardon her alleged malfeasances.

We’re also hoping the Moral Force Movement (MFM) would use this case as a launching pad for its mission to combat widespread corruption which is the primary cause of poverty and its debilitating effects. MFM may reinforce Pamusa’s evidence against Tan and build on the credibility of targeting one of the country’s biggest fishes. Tan’s case would reverberate across the nation to warn all involved in graft and corruption to cease and desist in their nefarious activities or be subjected to international condemnation.

Tan and other big fishes have gotten used to being untouchable under Philippine laws. They overlook that the USDOJ has laid the basis for criminal action and forfeiture of assets acquired from “a process or series of actions through which income of illegal origin is concealed, disguised, or made to appear legitimate (main objective); and to evade detection, prosecution, seizure, and taxation.”

By inventorying from dates of organization Tan’s group of companies starting with Fortune Tobacco’s annual reports, income tax declarations, and their personal statements of assets, liabilities and net worth would show the growth of each company’s assets vis-à-vis Tan’s personal net worth of $1.4 billion as of 2008 according to Forbes has been statistically improbable unless the companies resorted to massive tax evasion, bureaucratic corruption and be almost free from competition because of government favors from Marcos and succeeding administrations.

Tan’s and his group of companies’ alleged massive tax evasion was brought to light under President Ramos. Sufficient evidence of corruption and other crimes punishable under U.S. laws can be adduced by the FBI and conclude that much of the companies’ income came from illegal origin. Tan, the companies’ boards of directors and executive officers have evidently engaged in corruption by paying, or promising to pay, bribes, or by giving other undue advantages to public officials and their accomplices which they cannot deny when questioned by the FBI or be guilty of perjury.

In fairness to Tan, however, he took advantage of the country’s corrupt environment as others have similarly done. He can’t be punished to the exclusion of those equally guilty such as Danding Cojuangco, Henry Sy, Roberto Ongpin and others. They should emulate the Union Bank of Switzerland and Siemens AG and negotiate with the FBI Los Angeles office and USDOJ before they’re charged in court.

They may return to RP government Marcos’ ill-gotten wealth and accruals kept by them including ill-gotten gains from corruption during succeeding administrations. These can be reasonably accounted for and perhaps converted into preferred shares of their companies so they continue management control while freeing themselves, their heirs and successors from criminal and civil liabilities.

It’s a fact that when amicable settlement is approved by a U.S. court, the records are shielded from the public and can’t be used for any other legal action. It’s impossible to convict someone for graft and corruption or plunder in the Philippines after the evidence is sealed by a U.S. court.

Tan’s incredible story started with the family-owned Fortune Tobacco. To his credit, Tan was chosen by Marcos to be one of his cronies granted government favors that led to his building a business empire including Asia Brewery (which would not have been possible had Marcos known San Miguel Corp. would one day be under Danding Cojuangco), Allied Banking Corporation, Foremost Farms, Eton Properties, Himmel Industries, Tanduay Distillers and other subsidiaries.

Tan can’t deny he and other cronies were required by Marcos to cede 60% of the equity of each company granted favors such as unlimited dollars for imported needs, PNB and DBP loans, no bureaucratic meddling that allowed Fortune Tobacco to allegedly print multiple same-numbered revenue stamps to minimize tax on cigarettes, etc.

Tan added PAL and Philippine National Bank obviously from the income of the earlier companies. By monopolizing inter-company businesses with Tan-owned firms such as exclusive caterer for PAL passengers, conduit in purchasing and leasing planes including parts and services for PAL, banking transactions confined to PNB, its foreign subsidiaries and Oceanic Bank in which Allied Bank has significant stake, Tan with the board of directors and executive officers of the companies involved have crossed the line of U.S. legal business practices.

Tan’s net worth of $1.4 billion makes him the second richest Filipino with likely investments in China which may have exposed him to the latter’s anticorruption laws which can be pursued by USDOJ that could lead to far worse retribution.

Lucio Tan, Corrupt Practices in the U.S.

2011-02-28T19:41:00.002Z

For starters, Pamusa can sue Lucio Tan for corrupt practices in the U.S., according to our volunteer counsels. Lucio could be indicted for corporate and accounting scandals which could end the web of corruption he has woven around himself. We have evidence against Lucio to be like several CEOs of U.S. conglomerates such as Enron, Worldcom, Adelphia, TYCO, etc. sentenced to jail for corporate crimes, or pay millions of dollars of fines like foreign companies, e.g. Deutsch Bank, Siemens AG, Union Bank of Switzerland, Daimler AG (maker of Mercedes Benz), etc. to stop U.S. criminal investigation and possible prosecution of top officers.

Pamusa’s volunteer lawyers agree Lucio is now in a ditch. The PCGG can charge him through Pamusa in the U.S. and/or China of corrupt practices emerging out of the application for the proposed Allied Bank-PNB merger in the U.S.. Lucio’s counsel probably overlooked that the application would lead U.S. banking regulators to look deeper into the two banks’ ownership before approval is granted. One condition is for Allied to divest of controlling equity in a small San Francisco bank, Oceanic Bank.

Lucio Tan questions OSG, PCGG stand on bank case

2011-02-07T19:17:00.000Z

http://www.abs-cbnnews.com/business/02/07/11/lucio-tan-questions-osg-pcgg-stand-bank-case

Lucio Tan questions OSG, PCGG stand on bank case

MANILA, Philippines - Businessman Lucio Tan has questioned the failure of the Office of the Solicitor General (OSG) and the Presidential Commission on Good Government (PCGG) to pose objections to a motion for intervention filed by a group of people claiming to be stockholders of the former General Bank and Trust Company (Genbank) in relation to Civil Case No. 0005.

In a 10-page manifestation filed through lawyers Estelito Mendoza and Orlando Santiago, Tan said Aderito Yujuico, Martina Gutierrez, Augusto Carpio, Ma. Trinidad Kalaw, Zenaida Santiago, Lourdes Yujuico, and Rosa Caram are claiming ownership of "shares of stocks and/or beneficial interests over Allied Banking Corp."

The Genbank group’s motion seeks return of these shares of stocks that the government is also claiming for itself in the case.

Catalino Generillo, a former special counsel for the PCGG who now representing Aderito Yujuico et al., said the disputed Allied Bank shares were already worth P688,201,301.00 back in March 29, 1977.

"They [OSG and PCGG] ... have apparently overlooked that the plaintiff in the instant case is the Republic of the Philippines which they are representing. The properties sought to be reconveyed to the Republic... include shares of stock in Allied Bank of defendants Lucio Tan et al," Tan said.

He added that the OSG and PCGG move is tantamount to abandonment of their mandates under the law.

"In implicitly agreeing that the shares of stock in Allied Bank alleged to be ‘ill-gotten wealth’ should be conveyed to Aderito Yujuico et al., and not to the Republic of the Philippines, the PCGG violates its mandate under Executive Order No. 1, while the Office of the Solicitor General, in so agreeing violates its basic responsibility as the lawyer of the Government," he added.

Mendoza and Santiago argued that in 2006, the Court of Appeals and the Supreme Court had already rejected a lawsuit filed by stockholders of Genbank against the Central Bank involving the same Allied Bank assets.

Tan claimed that it was not the first time that PCGG and OSG "strayed from their responsibility."

He said that in 2008, Generillo then representing PCGG, even went to the United States on government funds to obtain documents in support of the claim of the Marcos family that they own 60% of Tan’s assets.

"In doing so, the PCGG and the OSG were clearly no longer asking that the shares of stock of Lucio C. Tan be reconveyed to the Republic of the Philippines but that 60 percent thereof belongs to the estate of former President Ferdinand Marcos," he said.

Lucio Tan’s brother loses P51-B ill-gotten wealth case

2011-02-07T01:44:00.000Z

http://www.gmanews.tv/story/212192/lucio-tans-brother-waives-right-to-present-evidence-in-wealth-case

Lucio Tan’s brother loses P51-B ill-gotten wealth case

The Sandiganbayan on Thursday rendered a "judgment in default" against businessman Lucio Tan's brother - Mariano Tanenglian - for failing to present evidence in his defense in a forfeiture case that had dragged for 23 years.

Sandiganbayan Fifth Division said Thursday Tanenglian is "deemed to have waived his right" to present any evidence in his own defense in the P51-billion ill-gotten wealth case.

The division chair, Associate Justice Roland Jurado, refused to allow Tanenglian's request for another extension to submit his defense evidence.

Jurado explained that the defendant had been repeatedly reminded that he cannot stall the proceedings since other defendants in the case were already done presenting their evidence.

Tanenglian had asked the court to defer his presentation of evidence while waiting for the Presidential Commission on Good Government's decision on his petition for immunity in exchange for testifying against Tan.

The government is seeking to prove that Tan's assets form part of the ill-gotten wealth of the Marcos family, the heirs of the late President Ferdinand Marcos.

Marcos and Tan were supposedly partners in business ventures that Tan successfully grew into multibillion-peso enterprises today.

Tan continues to deny the allegation, while the Marcoses are trying to get what they claim is their share of the enterprises. The government, on the other hand, wants to seize all the assets.

Tanenglian is also a defendant in the case against his brother but after they had a falling-out he offered to turn state's evidence in exchange for immunity.

Estelito Mendoza, Tan's counsel, said that it would be unfair for Tan and the rest of the defendants if more delays are allowed in the proceedings.

Apart from Tan and Tanenglian, also named defendants were the late dictator Ferdinand Marcos and former First Lady Imelda Marcos. - JE/MRT/VS, GMANews.TV

Succession Issues

2011-01-29T17:08:00.001Z

Succession issues

Talk has also been rife that the health of Tan has been deteriorating. This has raised issues about succession.

In February, Fortune inked a joint venture agreement with multinational cigarette maker Philip Morris for an undisclosed amount.

Besides PAL and Fortune Tobacco, Tan also owns considerable stakes in beermaker Asia Brewery, commercial banks Philippine National Bank and Allied Bank, among others.

Tan is the second richest in the country, next to mall magnate Henry Sy, and one of the three Filipinos whose wealth has breached the billion-dollar mark, based on estimates of Forbes.

Interestingly, his son and namesake, Lucio Tan Jr., has been trying to move away from the shadows of the 77-year-old patriarch.

http://www.abs-cbnnews.com/business/01/13/11/philippine-airlines-sale

TAN HAS HAD DISPUTES WITH HIS MOST TRUSTED BROTHER AND BUSINESS PARTNER, MR. MARIANO TANENGLIAN

Is Philippine Airlines for sale?
By Lala Rimando, abs-cbnNEWS.com
Posted at 01/13/2011 9:05 PM Updated as of 01/13/2011 11:52 PM

MANILA, Philippines - There are ongoing talks between the management of local carrier Philippine Airlines (PAL) and potential investors.

This was confirmed on Jan. 13 by PAL Holdings, the listed firm that owns 85% of PAL.

However, these talks are purely "exploratory," stressed PAL Holdings in a disclosure to the stock exchange.

For months on end, speculation has been rife that the 70-year-old airline is on the selling block after it encountered massive losses of US$312.1-million from 2008 to 2010 largely due to previous spikes in fuel prices, which account for bulk of its operating expenses.

It has also been unable to deploy its new aircrafts to profitable routes, such as the US and Europe, due to the inclusion of the Philippines in the safety blacklists of these destinations' respective aviation bodies.

To cope, PAL rolled out cost-cutting measures that involved outsourcing non-core operations, reducing benefits and adjusting retirement age.

These resulted in almost year-long battles with its labor unions.

The cost-cutting measures remain on hold as PAL continues to assert itself in separate labor cases with the ground crew and flight attendants unions.

In 2009, a business leader predicted that there is NO Lucio Tan Group of Companies without Mariano Tanenglian.

1977 bank case haunts Lucio Tan, Marcoses

2011-01-12T09:29:00.003Z

http://www.manilastandardtoday.com/insideNation.htm?f=2011/january/8/nation4.isx&d=2011/january/8

1977 bank case haunts Lucio Tan, Marcoses
by Macon Araneta

THE Sandiganbayan on Friday ordered taipan Lucio Tan, his brother Mariano Tanenglian and the estate of the late president Ferdinand Marcos to comment on the motion of the stockholders of the General Bank and Trust Company, now Allied Bank, which sought to transfer to them their shares of stocks or beneficial interest over Allied Bank.

The complaint-in-intervention, filed last December 10 by General Bank stockholders through their counsel Catalino Generillo, also asked the graft court’s fifth division for an alternative, and that is to order Allied Bank to pay them an amount equivalent to the value of the total assets of General Bank worth P688.20 million as of March 29, 1977.

The stockholders are Aderito Yuyuico, Martina Gutierrez, Augusto Carpio, Ma. Trinidad Kalaw, Zenaida Santiago, Lourdes Yujuico and Rosa Caram. They said that in 1977, Tan in connivance with the late president and Mrs. Marcos, former Central Bank Gov. Gregorio Licaros and Panfilo Domingo of PNB, fraudulently acquired control of General Bank, which eventually became Allied Bank.

The fifth division, chaired by Associate Justice Roland Jurado, gave Tan five days from January 7 to file his comment.

Only Tan’s counsel, Orlando Santiago, the partner of lawyer Estelito Mendoza, appeared during the hearing.

The other defendants, former first lady now Rep. Imelda Marcos, Senator Ferdinand "Bongbong" Marcos, Imee Marcos-Manotoc and Irene Marcos-Araneta, were directed to file their comment five days upon receipt of the anti-graft court’s order.

The Marcoses’ lawyer Robert Sison failed to attend the hearing as he was recovering from dengue.

Tanenglian’s counsel Raymundo Quiroz, said he had a prior commitment.

Since it was only Generillo and Santiago who were present in court, Jurado opted to issue an order.

Also named as defendants in the six-page complaint-in-intervention are the heirs of former PNB president Panfilo O. Domingo, estate/heirs of former Central Bank Gov. Gregorio Licaros, Carmen Khao Tan, Florencio T. Santos, Natividad P. Santos, Domingo Chua, Tan Hui Nee, estate of Benito Tan Kee Hiong (represented by Tarciana C. Tan), Florencio N. Santos, Jr., Harry C. Tan, Tan Eng Chan, Chung Poe Kee, Mariano Khoo, Manuel Khoo, Miguel Khoo, Jaime Khoo, Elizabeth Khoo, Celso C. Ranola, William T. Wong, Ernesto B. Lim, Willy Co, Shareholdings, Inc. and Basic Holding Corp.

Asked on the apparent delay in the filing of the intervention, Generillo told MST that under the law, intervention may be filed at any time before the court passes judgment on the case.

But he added that no action was taken by the plaintiffs-intervenors in the past years because they thought the former Presidential Commission on Good Government would block the intervention.

Generillo told the court that as stockholders of General Bank, the plaintiff-intervenors have an interest in the subject matter of the case.

"Only through intervention could they protect and enforce their right," said Generillo as he stated that Aderito Yujuico was authorized by the other plaintiffs-intervenors to file the intervention based on a Special Power of Attorney.

Generillo asserted that the claim of the plaintiff-intervenors over Allied Bank as successor of GBTC and/or the assets of Allied Bank is based on constructive trust, which is the appropriate remedy against unjust enrichment.

He explained that constructive trust is raised by equity in respect of property, which has been acquired by fraud, or where, although acquired originally without fraud, it is against equity that it should be retained by a person holding it.

DOLE RESOLVES PAL-FASAP DISPUTE

2011-01-12T09:29:00.001Z

DOLE RESOLVES PAL-FASAP DISPUTE:

FASAP WINS LABOR DISPUTE AGAINST PAL

FASAP and its 1600 members won its labor dispute against PAL today.

The flight attendants of PAL will indeed have a very Merry Christmas after Department of Labor and Employment Secretary Rosalinda D. Baldoz ruled in its favor to correct the discriminatory compulsory retirement age from 55, 45 and 40 years old to 60 years old, for both male and female flight attendants.

In her Order dated December 24, 2010, Secretary Baldoz said, "The different retirement ages for flight attendants performing the same services constitute a clear discrimination of their right to equal work opportunity."

The DOLE Order further declared, "It is in this light that setting the compulsory retirement age of sixty (60) years - both for male and female cabin crew personnel - is fair and reasonable."

The retirement age of flight attendants is the most contentious issue between PAL and FASAP. The FASAP president Bob Anduiza rallied its flight attendants and led them to fight the discrimination issue of the CBA dispute this year after efforts to forge an amicable contract ended in a deadlock on the issue of age and gender discrimination.

"As union leaders, we owe it to our members and to other female workers in the country to stand up against discrimination in the Philippine workplace. If we cannot have equality in the PAL workplace, then it would be doubly difficult for other Filipino workers to assert their rights."

After learning of the DOLE decision, Anduiza was thankful and said, " We are elated with the decision of Secretary Baldoz, upholding equality for the PAL flight attendants. She deserves praise and respect for her display of fairness and resolve despite the reputed power and influence of PAL." Anduiza added.

In the said Order, Sec. Baldoz argued, "The set up under the old CBA is that female attendants are forced to retire at age 55, while their male counterparts may serve until age 60, for cabin attendants hired before 22 November 1996. Hereon, all cabin attendants hired thereafter, regardless of gender, shall be forced to retire at age 45; while, those hired after 22 November 2000 shall retire at the much early age of 40. Indeed, this structure appears to be discriminatory which may not only be in the context of gender but also as in terms of equal work opportunity as guaranteed under the Philippine Constitution and the Philippine Labor Code and its Implementing Rules."

A gentleman's delights ... Afternoon Delights

2011-01-12T09:28:00.004Z

A gentleman's delights ... Afternoon Delights

Lucio lives by the saying of Chinese philosopher Mencius: "A gentleman delights in three things, and to rule the world is not one of these three things. For one's parents to be both alive, and for one's brothers to have no misfortune, that is the first delight. To look up and see Heaven without shame, that is the second delight. To obtain the world's talented people and educate them, that is the third delight."

Who is Lucio Tan? He was born on July 17, 1934 in Amoy, Fujian Province in what is now the People's Republic of China. Dr. Lu Kun Chen, two years older than he, remembers him from the boat ride that brought the two of them to the Philippines as children. Three high school friends - Tina Enriquez, Larry Uy and Robin Sy - contributed to the book.

DOLE RESOLVES PAL-FASAP DISPUTE: FASAP WINS LABOR DISPUTE AGAINST PAL

2011-01-12T09:28:00.003Z

DOLE RESOLVES PAL-FASAP DISPUTE: FASAP WINS LABOR DISPUTE AGAINST PAL

FASAP and its 1600 members won its labor dispute against PAL today.

The DOLE Order further declared, "It is in this light that setting the compulsory retirement age of sixty (60) years - both for male and female cabin crew personnel - is fair and reasonable."

FASAP was also able to support its position on the economic aspect of the dispute, citing PAL’s most recent financial statements showing the Company’s recent financial recovery and profitability. PAL’s offer of 105 Million pesos was increased by the DOLE to around 200 million, after it ruled to grant reasonable wage increases, as follows:

"Under the circumstances, we find the following wage increases and augmentation in rice allowance fair and reasonable and, therefore, awards the same to FASAP:

Wage increases

Sandiganbayan junks case against former DBP execs

2011-01-12T09:28:00.001Z

http://www.gmanews.tv/story/209172/sandiganbayan-junks-case-against-former-dbp-execs

Sandiganbayan junks case against former DBP execs
Article posted December 26, 2010 - 09:31 PM

The Sandiganbayan Fifth Division cleared two former top officials of the Development Bank of the Philippines of any liability in a P51 billion civil lawsuit filed by the Presidential Commission on Good Government 23 years ago.

In a 14-page resolution issued Dec. 22, the anti-graft court junked the government case against former DBP Board chairman Cesar Zalamea and former vice chairman Don Ferry.

The two were accused of approving the allegedly anomalous sale of DBP’s stake in Century Park Sheraton Hotel to Sipalay Trading Corp. for P150 million despite its supposed book value of P340 .7 million on Apr. 22, 1985.

DBP held its stake in Century Park through a 79 percent holding in Maranaw Hotel and Resorts Corp.

Government lawyers claimed Sipalay Trading was a ‘dummy’ company formed in 1984 by the late President Ferdinand Marcos and businessman Lucio Tan with a capitalization of only P900,000.

But the Sandiganbayan pointed out that not one of the witnesses presented by the PCGG and the Office of the Solicitor General was able to link either Zalamea or Ferry to any of the properties being claimed by the government as part of the alleged ill-gotten wealth of the defendants.

"No evidence presented by the plaintiff shows that defendants Zalamea and Ferry had any participation in the acquisition of the assets," the court said.

Even Senator Ferdinand "Bongbong" Marcos Jr., testifying for the government on February 2008, admitted on the witness stand that "Zalamea had nothing to do with any of the transactions." - MRT/KBK, GMANews.TV

Tan in-law backs out from US bank deal

2011-01-12T09:27:00.001Z

http://www.manilastandardtoday.com/insideNews.htm?f=2010/december/24/news2.isx&d=2010/december/24

Tan in-law backs out from US bank deal

ALLIED BANK on Thursday announced that its planned merger with Philippine National Bank, both controlled by taipan Lucio Tan, had been put on hold after the buyer of an Allied Bank subsidiary in the United States backed out.

The buyer happens to be related by affinity to the Tan family, John K.C. Ng, whose daughter, Angie, is married to Michael Tan, a son of the taipan.

Allied Bank said Ng withdrew his offer to buy the 27.78 percent share of Allied Bank in Oceanic Bank, which has two branches in San Francisco and one in Guam.

"Mr. Ng would rather pursue other business opportunities instead of waiting for approval from the US regulators," Allied Bank said.

Ng, whose family owns Cathay Land, has yet to obtain approval from the US Federal Reserve to acquire voting shares of Oceanic Holding, which is based in Tortola, British Virgin Islands, and thereby indirectly acquire the voting shares of Oceanic Bank Holdings Inc. and Oceanic Bank of San Francisco.

Allied Bank needed to sell its equity in Oceanic Bank to secure approval of the merger with PNB.

The divestment of Allied Bank from Oceanic Bank was needed for the merger between Allied Bank and PNB, since US banking regulations on the entry of new foreign banks would be applied to PNB when it assumes ownership of Oceanic Bank by virtue of its merger with Allied Bank.

Allied Bank said it was now looking at other options "together with its US legal counsels and in consultation with the US regulators."

"The merger with PNB will still be pursued and the integration will continue with a view to improving revenue opportunities and operational efficiencies for both banks," Allied Bank said.

Lucio Tan’s brother loses plea to turn state witness

2011-01-12T09:22:00.001Z

http://www.manilastandardtoday.com/insideNews.htm?f=2010/december/24/news1.isx&d=2010/december/24

Lucio Tan’s brother loses plea to turn state witness
by Macon Ramos-Araneta

THE Sandiganbayan on Thursday barred the estranged brother of taipan Lucio Tan, Mariano Tanenglian, from offering himself as a government witness against his sibling on the alleged ill-gotten origins of the billionaire’s tobacco, alcohol and banking empire.

The anti-graft court’s Fifth Division ruled that it could not allow Tanenglian, a principal defendant along with Tan, to turn state witness because the Presidential Commission on Good Government had terminated its presentation of evidence in April 2009.

Moreover, the government panel, represented by the Office of the Solicitor General, had already rested its case by filling a formal offer of exhibits in October 2009, which effectively prevented the plaintiff, in this case the government, from calling a new witness for the civil complaint, listed as Civil Case No. 0005.

The government is seeking to forfeit Tan’s assets in several companies including Fortune Tobacco Corp., Asia Brewery Inc., Allied Banking Corp., Foremost Farms, Himmel Industries Inc., Grandspan Development Corp., Silangan Holdings Inc., and Dominium Realty and Construction Corp and Shareholdings Inc., claiming that those assets were actually owned by the late strongman Ferdinand Marcos and his heirs.

"It is apparent that if granted immunity, defendant Tanenglian will give testimony or evidence not in support of the defenses he pleaded in his answer but in support of the complaint," the Sandiganbayan said.

"This court has repeatedly denied motions to reopen proceedings for the purpose of presenting evidence for the plaintiff [Republic of the Philippines]."

In his motion, Tanenglian claimed that the Dec. 2, 2010 deadline set by the Sandiganbayan to complete his presentation was unreasonable as it only gave him 17 days, when the government had more than two decades to present its case.

On the contrary, the Sandiganbayan said, all defendants were notified to prepare their presentation from Nov. 5, 2005, when it issued the pre-trial order setting the trial dates.

Still, "in the interest of justice," the Fifth Division agreed to grant Tanenglian up to February 3, 2011 to present his testimony even with the absence of immunity.

Tanenglian’s application for immunity was turned down by both the PCGG and then Solicitor General Agnes Devanadera, who were wary of Tanenglian’s "obscure motives" as the offer of cooperation offer came 20 years after the filing of the case and only after his much-publicized falling-out with Tan.

Devanadera also said Tanenglian held high positions in Tan’s companies and was a key defendant in the case.

PAL prepared for massive strike/Lucio Tan Corrupting Even Men of God

2010-12-10T05:55:00.000Z

PAL prepared for massive strike
abs-cbnNEWS.com
Posted at 12/09/2010 12:43 PM Updated as of 12/09/2010 1:04 PM

MANILA, Philippines - An overwhelming vote for the planned strike of the Philippine Airlines Employees Association (PALEA) would not be a surprise for the airline management, which still believes the balloting has no legal basis.

PAL president Jaime Bautista assured they have prepared contingency plans in case the work stoppage pushes through.

PALEA president Gerry Rivera had announced that based on initial reports from the field, at least 70% of the union's 3,700 members voted in favor of the strike. The final number of votes has yet to be determined.

PALEA, the ground crew union of the flag carrier, is protesting alleged union busting and bargaining of management with individual members.

"Kung gagawin nila iyan ay may contingency measures na nakahanda para naman hindi maapektuhan ang mga pasahero ng PAL," Bautista told a radio dzMM interview.

The PAL president noted they are more concerned with the government's pending decision on PALEA's petition against Labor Secretary Rosalinda Baldoz's ruling, allowing the airline management's outsourcing plan.

Bautista insisted that PALEA's reason for the strike balloting has no legal basis. He said that the union busting and individual bargaining allegations have been addressed by Baldoz's ruling.

Meanwhile, the PAL official assured that all PALEA members will be absorbed by service providers.

He said as of now, the striking ground crew members are still employees of PAL since management has decided to temporarily halt the outsourcing plan pending a final decision from the government.

A Taipan without his Right Hand Man.

Lucio Tan Corrupting Even Men of God

Your Excelencies:

Please read this. This is very correct.

Can't you not rein in unviversities run by Catholic priests and sisters from giving indiscrimately honoris causa degrees to people like Lucio Tan in exchange of robbed-from-Filipino- people millions? University of Sto. Tomas, St. Paul University of Tuguegarao, and lately San Beda College allowed themselves to be used as deodorants, for Tan to continue his labor and worker exploitation and oppression, and gargantuan tax evasion.

This economic saboteur Chinaman is corrupting our faith's priests to serve as his stench deodorant.

Even the supposed venerable Father Joaquin Bernas eiled himself as Luciofer Tan's prop, by "serving" as a trustee of his Tan Yan Kee (bogus) Foundation.

Money talks even to our priests.

mikesy (posted on Jan 30, 2009 12:59 PM)
Member since Jul 13, 2008

Reaction

Vic Alim: You are so correct in saying indirectly that justice is for sale in our country by citing honoris causa degrees given by Catholic universities in exchange of filthy money masked as donation money. It makes us throw-up to see advertised each time a known rotten man is bestowed a PhD degree in exchange of ill-gotten money. This non-Pinoy businessman should be known to the university authorities to be so rotten, thus desperately in need to be cosmetized with honoris causa degrees. Yet, they are like children so happy when given candies if given "donations” in millions to the universities (and to their persons also, most probably). The last, now the third university run by the Catholic order, even gave him recently an honoris causa PhD in humanities! Can you imagine that? Catholic priests and nuns can allow themselves to be corrupted by cheated money, worse than jueteng money, to serve as deodorant to this rotten and stinking businessman? They should have read the recent columns of Mareng Winnie about this man’s filths, isn’t it? If our list serves us correct, that last PhD given him is the 13th, the same count of his wife and concubines that gave him countless children. He should be worthy now to be in Guinness Book of World Records in terms of PhDs! Now, who will still be surprised to see the faithful of the Church eroding in quantity? Calling CHED and CBCP!

Mike Sy, Cebu

Intrigued By PAL and Lucio Tan's Lies

2010-12-07T03:59:00.001Z

By Raïssa Robles

Billionaire Lucio Tan wants to sack 2,600 Philippine Airline (PAL) employees so most of them can be rehired by two highly dubious companies, which may likely end up being part of the Lucio Tan group of companies.

First some background

I was intrigued when PAL president Jaime Bautista told reporters a month ago that after the mass layoff, PAL would "outsource" the jobs of inflight catering, aircraft maintenance and ticketing services to three alleged third party service providers: SkyLogistics Philippines Inc., SkyKitchen Philippines Inc. and ePLDT Ventus.

Bautista hinted that the sacked PAL catering and airport services employees could get their old jobs back by applying with SkyKitchen and SkyLogistics, respectively.

Bautista stressed to reporters that neither PAL chairman Lucio Tan nor any member of his family has any financial interest in these three firms. In fact, he said, SkyKitchen and SkyLogistics are owned by Manny Osmeña, who owns Hilton Cebu and Cebu Pacific Catering.

Based on PAL’s pronouncements, Labor Secretary Rosalinda Baldoz said PAL has the right to fire 2,600 employees in order to keep the company afloat. She told a congressional probe that the Labor Code allows PAL to "outsource...non-core services" like aircraft maintenance, in-flight catering and ticketing as long as the outsourcing involves "independent" contractors.

But not all is as it seems to be

Are these two companies really "independent"?

SkyLogistics Philippines Inc. and SkyKitchen Philippines Inc. were formed only last year with a paid-up capital of P6 million each, invested by a third company - Manny O Asia Corporation - which had a mere P62,500 as show money in the bank, representing its total paid-up capital, at the time it formed SkyLogistics and SkyKitchen.

Below is the disclosure of Manny O Asia Corporation to SEC on its paid-up capital in 2006, which remained the same up to 2009:

http://raissarobles.com/2010/12/06/two-dubious-companies-to-rehire-employees-whom-lucio-tan-and-pal-would-like-to-sack/

Let me show you why

Manuel H. Osmeña is a long-time business partner of Lucio Tan’s family.

Osmeña first went into in-flight catering in 1994 when he took over MATS Catering Inc., changed its name to Cebu Pacific Catering Services Inc and had it recapitalized.

When PAL president Jaime Bautista recently announced that PAL’s sub-contractor for catering would be SkyKitchen, he identified the owner as Manuel Osmeña whom he said also owns Cebu Pacific Catering Services.

I mistakenly assumed that Cebu Pacific Catering was owned by PAL’s rival airline Cebu Pacific because of the similarity in their names.

Still, I decided to check this out with my source in the Gokongwei group and I was surprised to be told:

Cebu Pacific Catering is related to PAL. Totally hindi sa (it’s not at all owned by) Cebu Pacific Airline.

And so I did more digging

It turned out that Cebu Pacific Catering was formerly MATS Catering and was initially formed by Manuel H. Osmeña in June 14,1994 at the Mactan Export Processing Zone. Later, he changed its by-laws and increased its capital stock. Cebu Pacific Catering then acquired a majority partner - MacroAsia Corporation. And then Manuel H. Osmeña became a minority owner.

In the year 2000, MacroAsia’s president and CEO was Lucio K. Tan Jr. and according to its SEC disclosure then, MacroAsia owned 40% of Cebu Pacific Catering. Here is MacroAsia’s table of companies in the year 2000:

http://raissarobles.com/2010/12/06/two-dubious-companies-to-rehire-employees-whom-lucio-tan-and-pal-would-like-to-sack/

PALEA expects to get majority from strike vote
By Ira Pedrasa, abs-cbnNEWS.com
Posted at 12/06/2010 4:38 PM Updated as of 12/06/2010 4:38 PM

Management readying legal measures to nullify union’s action

MANILA, Philippines - The Philippine Airlines Employees Association (PALEA) will hold a strike vote on Tuesday, saying a protest action is already warranted due to the management’s unfair labor practices.

In a statement, PALEA President Gerry Rivera said he expects to get a majority of the 3,700-member union in order to finally launch a work stoppage.

The Labor Code provides that a simple majority, 50% plus 1, is needed to make a strike legal.

PALEA leaders filed the notice to National Conciliation and Mediation Board (NCMB) Executive Director Reynaldo Ubaldo at 8:30 a.m. Monday. Labor Secretary Rosalinda Baldoz was also furnished a copy.

The strike vote will be held despite an earlier move to have President Benigno "Noynoy" Aquino III intervene and resolve their worsening labor dispute.

Rivera explained that the strike vote is, nonetheless, within legal bounds

"We are not blackmailing Malacañang to favor our position, but we are warning management for its illegal acts. It was PALEA that asked for the intervention of President Benigno Aquino III into the PAL-PALEA dispute, and so it is illogical that we will sabotage it. The issue pending at the OP [Office of the President] is separate though related to the case from which proceeds the strike vote," he said.

Coercion, individual bargaining

The management of the flag carrier claimed the notice of strike is illegal since the issues being raised are already pending before Malacañang.

No less than PALEA itself had filed the petition for intervention, PAL spokesperson Cielo Villaluna said in an interview with ANC.

Rivera stressed, however, that the issues are different, albeit connected.

The latest development stemmed from the October 29 decision of Baldoz that affirmed an earlier one allowing the retrenchment of almost 3,000 ground employees.

In her ruling, Baldoz said "inflight catering operations, airport services operations, and call center operations and the consequent severance from employment of all affected employees...as well as the contracting out of these operations to the named service providers, are based on lawful ground."

After several failed mediation proceedings, the union finally asked Aquino to intervene in the case.

Over the weekend, Aquino ordered that all documents related to the case be forwarded to his office.

Despite all these, PALEA accused the management of bargaining with individual members of the benefits of a spin-off company that will replace the previous system.

"If management does not desist from harassing PALEA members to avail of the separation offer, which is tantamount to individual bargaining and therefore illegal, then we will be forced to actually hold the strike," Rivera said.

PAL denies accusations

Villaluna, however, denied accusations of coercion.

She said the management has already talked to the individuals being accused of bargaining with members of PALEA.

She noted the individuals had merely explained the packages attached to the creation of the spin-off firm.

"All the key issues are already pending before Malacañang. Over the weekend, Malacañang has made it clear to wait for President Aquino’s review. We appeal to PALEA not to push through with the planned action," she said.

Should the union proceed, however, PAL’s legal department is already on standby, she added.

"We really doubt if DOLE [Department of Labor and Employment] will give its blessing to this strike vote. After all, we all agreed to a status quo pending outcome of the president’s decision. Should it push through, there is still a 7-day waiting period," Villaluna said.

She was referring to the 7-day cool off period after a strike vote is done. She said this will allow the management to plan its next legal action.

All flights will remain normal

In a separate statement, Villaluna said all flights remain normal despite warnings from the union.

"A work stoppage does not happen overnight. PAL will exhaust all legal means to prevent any disruption that could hurt the economy and cause inconvenience to the riding public," she said.

She said various employee groups have assured PAL they will not be joining any strike.

She also stressed that contingency measures are already in place to ensure continuous operations.

"PAL has made arrangements with sister airline Airphilexpress and other local carriers to help carry domestic passengers, while PAL’s 134 interline partners are also ready to lend a hand in our international routes. To ensure the steady supply of food and other amenities, PAL also made arrangements with several catering firms to supply meals," she said.

Sandiganbayan awaits Marcos evidence in P51-B wealth case

2010-11-24T22:15:00.001Z

http://www.abs-cbnnews.com/nation/11/23/10/sandiganbayan-awaits-marcos-evidence-p51-b-wealth-case

MANILA, Philippines – Late President Ferdinand Marcos’ widow and heirs have only 8 days left to present evidence to the Sandganbayan Fifth Division in connection with a P51-billion lawsuit filed by the government 23 years ago.

In a November 17 order, the anti-graft court declared that former First Lady Imelda Romualdez-Marcos and the estate of her husband have only until December 2 to submit documents or testimonies to counter evidence presented by the Presidential Commission on Good Government (PCGG) in Civil Case No. 0005.

The PCGG is seeking forfeiture in favor of the state of a 60% stake in various companies owned by businessman Lucio Tan. The companies include Fortune Tobacco Corp., Asia Brewery Inc., Allied Banking Corp., Foremost Farms, Himmel Industries Inc., Grandspan Development Corp., Silangan Holdings Inc., Dominium Realty and Construction Corp. and Shareholdings Inc.

The Marcos family is also claiming the same assets, alleging that the former President was the real owner of the stakes and Tan was only his nominee.

The court, however, noted that neither the former first lady nor her 3 children have filed any pleading in connection with the submission of government evidence.

The December 2 deadline was an extension of an earlier deadline. The anti-graft court, during a hearing last October 27, set the presentation of evidence for the Marcoses and defendant Mariano Tanenglian on November 15, 18, 23 and 25.

In his counter-manifestation dated November 2 that was filed through lawyers Estelito Mendoza and Orlando Santiago, Tan had asked the Sandiganbayan to declare the Marcoses and Tanenglian in default, unless they are able to complete their presentation of evidence by November 25.

Tanenglian, an estranged brother of Tan, has a pending motion seeking the lifting of the deadline in his case. He is hoping that the PCGG and the Aquino administration would act favorably on his offer to testify for the government in exchange for immunity.

The PCGG and then-Solicitor General Agnes Devanadera previously rejected Tanenglian’s offer, noting that it is more than 2 decades late, and was only made after Tanenglian’s reported rift with his brother.

Devanadera also noted that Tanenglian held high positions in Tan’s companies and was named as one of the principal defendants in the case because of his alleged active collaboration with the Marcos couple during their heydays.

Taipan publicly cuts off ties with brother

2010-11-22T17:37:00.000Z

Taipan publicly cuts off ties with brother
http://www.manilastandardtoday.com/insideNews.htm?f=2010/november/22/news6.isx&d=2010/november/22

BUSINESSMAN Lucio Tan took out newspaper advertisements over the weekend to announce that his younger brother, Mariano Tanenglian, was no longer connected with any of the Tan companies.

The public notice was apparently triggered by Tanenglian writing to President Aquino and the Presidential Commission on Good Government offering to testify in the government’s ill-gotten-wealth case against the taipan in exchange for immunity from suit, hoping the new administration is more receptive to the idea than its predecessor.

In identical letters sent to Malacañang, the PCGG, and the Office of the Solicitor General, Tanenglian’s lawyers pressed their client’s offer of cooperation in the government’s 20-year-old case against Tan.

The PCGG had rejected Tanenglian’s offer in October 2009, saying his request for immunity was disadvantageous to the government, and that he should testify with no conditions.

The commission also said it might be too late for Tan’s brother to testify because the anti-graft court, the Sandiganbayan, had already decided to stop hearing testimony from government witnesses in the case.

Before that, then Solicitor General Agnes Devanadera had advised the PCGG to turn down Tanenglian’s proposal.

Tanenglian, a respondent in the same case, has had a public falling out with his brother, who is the chairman of Philippine Airlines and Fortune Tobacco.

Over the weekend, the Lucio Tan Group of Companies took out advertisements in several national dailies saying Tanenglian was not a director or officer of any of their companies.

In a motion filed before the Sandiganbayan, Tanenglian’s lawyers urged the anti-graft court to allow their client to testify in hearings scheduled up to December.

They also said they were waiting to hear from the Office of the Solicitor General under the Aquino administration if it also supported Devanadera’s recommendation to reject Tanenglian’s proposal.

The lawyers urged the anti-graft court to stop what they described as a collusion among the PCGG, the Office of the Solicitor General, and Tan.

Going-Ons

2010-11-22T04:15:00.001Z

Lucio Tan spooks son’s entry into MRC Allied

THE paid advisories placed by taipan Lucio Tan distancing himself and his group of companies from the reported acquisition of the listed MRC Allied by his eldest son, Lucio "Bong" Tan Jr., have apparently had the desired effect.

According to the grapevine, MRC Allied chairman Mariano "Mimo" Osmeña and his fellow directors were now thinking of unwinding the transaction, especially since the young Tan has yet to fully pay the reported P600-million acquisition cost for the 87-percent stake.

Osmeña, a son of former Cebu Gov. Emilio "Lito" Osmeña, and the Chinoy directors of MRC Allied apparently did not want to antagonize the taipan with their continued association with his son, especially with the very public warning issued by one of the country’s wealthiest men.

If the same grapevine is to be believed, the only one left rooting for Tan Jr. was his friend, MRC Allied president Benjamin Bitanga.

Tan Jr. was apparently caught unaware by the MRC disclosure that it had acquired about 6,000 hectares in mining claims in Mindanao adjoining the Tampakan deposit, which is said to be the largest undeveloped copper-gold deposit in the Southeast Asia.

On top of the disclosure, Tan Jr. was also apparently caught unaware that Bitanga had been reinstated by the MRC Allied board as president from the more humble position of corporate information officer.

Lucio Tan's brother asks to delay presentation of evidence
abs-cbnNEWS.com
Posted at 11/18/2010 7:48 AM

MANILA, Philippines - Typan Lucio Tan's estranged brother, Mariano Tanenglian, has moved for the cancellation of the deadline set by the anti-graft court for his presentation of evidence in a 24-year-old ill-gotten wealth case.

In his 9-page motion filed last November 12, Tanenglian questioned the directive to present a rebuttal evidence before the Fifth Division of the Sandiganbayan.

Tanenglian cited the assurance by the court in the October 13, 2010 hearing that he would be given time to seek resolution of his application for immunity.

During the hearing last October 27, Tanenglian was ordered in open court to complete his presentation no later than November 25, 2010 as the Presidential Commission on Good Government (PCGG), represented by the Office of the Solicitor General, has been told to present rebuttal evidence starting December 1.

In the same motion, Tanenglian admitted that his previous application has been turned down by the PCGG and then Solicitor General Agnes Devanadera.

Likewise he said he received no reply to his letters of appeal to former President Gloria Macapagal-Arroyo. Tanenglian said he has also written to President Benigno Aquino III to review his immunity application.

In her opinion sent to the PCGG on July 13, 2009, Devanadera expressed wariness at Tanenglian’s "obscure motives" for his offer of cooperation with the government case against his own brother.

She noted that Tanenglian’s offer came 20 years after the filing of the case and only after his reported rift with Tan.

In addition, Devanadera noted that Tanenglian held high positions in Tan’s companies and was named as one of the principal defendants in Civil Case no. 0005 because of his alleged active collaboration with former President Ferdinand Marcos and former First Lady Imelda Marcos in amassing ill-gotten wealth at the expense of public interest.

The Sandiganbayan ordered the termination of government presentation in April 2009 after OSG lawyers repeatedly failed to present any of its supposed witness resulting in several cancellations of hearing dates.

PCGG is claiming that 60% of Tan’s holdings in his companies including Fortune Tobacco Corp., Asia Brewery Inc., Allied Banking Corp., Foremost Farms, Himmel Industries Inc., Grandspan Development Corp., Silangan Holdings Inc., Dominium Realty and Construction Corp. and Shareholdings Inc. in behalf of the State.

The Marcos family has also stake its claim on the same shareholdings claiming former President Marcos was the actual owner of the said assets and he only named Lucio Tan as his nominee.

However, like Tanenglian, the Marcos family has yet to present any evidence in support of its claim.

On the other hand, Tan took less than 30 minutes last August 24 to complete his own presentation, submitting in court several pre-marked documents that lawyer Estelito Mendoza said sufficiently proved that Tan acquired all of his businesses without using any public fund.

PAL to pursue ‘anti-worker’ policies with people’s money
November 17, 2010 05:22:00
Philippine Daily Inquirer

PHILIPPINE AIRLINES’ plan to borrow P2.6 billion from government financial institutions such as the Development Bank of the Philippines (DBP) and Land Bank of the Philippines (LBP) to finance its restructuring scheme is both appalling and alarming. It is appalling, as PAL has the audacity to seek help from the government in its effort to throw out 2,600 ground crew employees. It is disturbing that it is using the people’s own resources to fund its anti-people policies. Clearly, this is a classic case of niluluto tayo sa sarili nating mantika (frying ourselves in our own lard).

We warn DBP and LBP not to give in to the loan application of PAL. They must not be a party to this year’s massive retrenchment and in the further weakening of the workers’ right to security of tenure. The role of government financial institutions (GFIs) is to spur economic growth by financing job creation and small and medium enterprise endeavors in the urban and rural areas. When they lend money, which would only be used to retrench workers, they are contradicting their own principles and goals. They are financing unemployment. Worse, they are skewing efforts away from economic development.

The government is already in hot water over the labor department’s wrong decision approving the dismissal of thousands of regular workers. If the state banks approve PAL’s loan request, then it is also giving its consent to the obliteration of job security here in the Philippines.

Thus, we challenge the GFIs to immediately reject any loan application from PAL in order to fund its restructuring scheme with the end view of dismissing thousands of regular workers. They have no business acting as the union buster’s financier to its unfair labor practices. Instead, the state banks should prioritize the funding of small and medium enterprises as well as the financing of programs that will generate real jobs, including those in agriculture, which is the real core of economic development.

For our part, we will block all efforts from PAL to use the people’s money to finance anti-worker policies. We will be on our toes to ensure that no such deals push through. The people’s resources must not be part of any business plan that would place the workers and their families’ future in jeopardy.

-RISA HONTIVEROS,
spokesperson, Akbayan Party,
36-B Madasalin St. Sikatuna Village,
Quezon City

Brother against brother
http://business.inquirer.net/money/topstories/view/20101121-304543/Biz-Buzz-Glitzy-opening-salvo

THE FEUD between taipan Lucio Tan and Mariano Tanenglian was raised to new heights Sunday after the group of the airline and beer magnate took out an ad in this newspaper disavowing business ties with Kapitan’s estranged brother.

The ad-paid for by the Lucio Tan Group of Companies-told customers, clients "and all parties dealing with [it]" that Tanenglian "has ceased to be a director and/or officer" of some 22 firms under the group, including PAL, PNB, Asia Brewery and Fortune Tobacco.

"He has no authority to transact business and/or represent in any manner whatsoever any of the above-named companies," it added.

And lest anyone wonder what Tanenglian looks like, the ad also carried a picture of the taipan’s brother-wanted-poster style.

According to one source, the move was prompted by reports of Tanenglian’s return to the country from a self-imposed cooling off period (a.k.a. exile) abroad.

"The lawyers of the group just want to make sure there is no confusion on anyone’s part on his status," said another.

It now remains to be seen how Tanenglian will return the favor, given that he has already presented himself as a witness for the government’s case against Tan (with little success, so far).

The notice comes just a few weeks after Tan’s lawyers "clarified"-via a similar ad-the nature of the links (or the lack of them) between the group and the business of his son and namesake, Lucio Jr.-Daxim L. Lucas

PAL DOESN'T JUST UNDERSTAND JUSTICE, it doesn’t understand law.

2010-11-16T05:40:00.002Z

In February 2009, Major Major Senior Officer(s) of Allied Bank ordered 6 Armed Guards to Threaten and Initimidate a Director of the bank who was also an EXECOM member, shareholder of the bank forcing this 70 year old Director to stop reporting for work.

This Major Major Officer DOES NOT understand justice nor understands the law.

"PAL DOESN'T JUST UNDERSTAND JUSTICE, it doesn’t understand law."
Business sense
By Conrado de Quiros
Philippine Daily Inquirer
First Posted 05:42:00 11/16/2010

SONNY MELENCIO, chair of Partido ng Masang Pilipino, has a point when he suggests in a letter to the editor last Nov. 11 that it’s Cielo Villaluna’s scare tactic that’s scary. Villaluna said that unless PAL sacks 3,000 of its employees, PAL “will close down and 7,500 workers will be displaced without separation pay.” Even if PAL does close down, Melencio says, PAL will have to pay separation pay. That’s the law. PAL doesn’t just understand justice, it doesn’t understand law.

But of course it’s a scare tactic, one that Lucio Tan has employed often enough. It raises all sorts of questions. Not least whether Tan can really do business under competitive conditions. Among the taipans, he’s the one who seems to be able to thrive only with overarching government patronage, which is a charitable way of putting it, such as he did during Marcos’ time and Erap’s time. And for which he invests heavily in candidates. The other taipans seem able to operate pretty much under different leaders. Certainly Lance Gokongwei has not been hit with the same labor problems in Cebu Pacific as Tan has in PAL.

Why should PAL close down if he can’t lay off 3,000 workers? As insiders say, PAL has enough savings to keep them and put them to productive use. At the very least, there’s the justice aspect of it. Many of those workers have been with the company for decades. They even agreed to call a 10-year moratorium on collective bargaining during Erap’s time to help the company along-and also because they knew they weren’t just going against Tan, they were going against Erap. As all the unions supporting PALEA (that is phenomenally universal) point out, the company does not lack ways to cut costs short of sacking 3,000 workers.

At the very most it’s just bad business. How can you get the loyalty-which translates as enthusiasm, which translates as productivity-of your people by mounting a reign of insecurity, if not of terror?

But on a broader front, the problem really goes beyond Tan, though he is the extreme and a problem enough unto himself. The problem is the general attitude or instinct of capitalists in this country to think of themselves first particularly during hard times, or indeed to use those very hard times as an excuse to employ sweatshop methods of cost-cutting. Contractualization is chief of them, the practice of hiring workers without benefits, or without benefit of regularization. It is a vicious thing, reducing the workers to little more than chattel slaves.

The argument, or scare tactic, is that unless the capitalist employs these methods, he will perish, the workers will perish, the country will perish. Only the most ruthless exploitation of labor will allow everyone to live, which is all very nice except when you look at it from the worker’s point of view. Would any capitalist like to live under those conditions of utter uncertainty? Unfortunately for the worker, for the capitalist of this country all times are bad times, justifying mounting that permanent regime of insecurity, if not of terror.

The question of course is: Is there any other way to do it?

The answer isn’t just yes, it is a resounding yes.

Gawad Kalinga (GK), Tony Meloto’s social project that’s now a toast of the world, has just such an enterprise. It’s called Human Nature, a company that has a whole line of products, including hair care, face and lip care, body care, hand and foot care, and stuff for kids. All these are giving rivals like Body Shop a run for their money because they are world class while being way cheaper. The company surged pretty strongly this year because of its Citronella Bug Spray which came out while dengue was rioting. The company managed to meet only 25 percent of demand, government itself endorsing it as a safe and effective means to fight the epidemic.

Human Nature takes off from GK’s philosophy to serve the poor. Not to help the poor through charity or doles but to help the poor help themselves. The products are manufactured by GK villages, from ingredients grown by GK villages. The profits are plowed back to the GK villages. Most companies that tote a “social responsibility” tag give 1-2 percent to the poor. Human Nature gives back 30 percent to them, though the GK residents may no longer be called poor before very long by dint of their own effort. That is the reason the Human Nature products are world class and way cheap. That is also the reason the company is growing by leaps and bounds.

That GK is becoming a toast of the world is no exaggeration. Meloto himself was just been named a leading social innovator by Ernst & Young during its Entrepreneur of the Year Awards last month. Ernst & Young, one of the world’s largest professional services firms assisting business, is currently big on “social entrepreneurship,” a concept GK itself is helping give flesh and sinew to. It’s been a little fuzzy thus far. The award entitles him to sit in the councils of the Economic Summit in Davos and meet with people looking for projects to fund, like Bill Gates.

You can’t say GK/Human Nature can’t compare with PAL in scale, at least as far as potential goes. Give it time and that may be true only in the reverse: PAL won’t compare with GK/Human Nature in scale.

The point is simple. You can have capitalists who do not need to exploit labor to thrive. In fact, you can have capitalists-or entrepreneurs in the truest sense of the word-who need only to make the poor less poor, or no longer poor, to thrive. GK is setting the template for it. Its argument, or scare tactic, is that unless your workers profit along with you, you will perish, your workers will perish, the country will perish. It’s great business sense.

It makes great business, and it makes great sense.

Déjà vu at PAL

2010-11-15T07:27:00.000Z

Déjà vu at PAL
By Solita Collas-Monsod
Philippine Daily Inquirer
First Posted 01:28:00 11/13/2010

A white elephant?

Déjà vu at PAL

DOES A company have the right to restructure its organization, weed out redundant employees, and contract out or "outsource" a business function that used to be performed in-house, to an external provider? Of course, was the universal reply from those I asked. So Philippine Airlines (PAL) has the right, according to Labor Secretary Rosalinda Baldoz, and she and PAL have been fiercely defending their actions/decision respectively.

Does a company have the right to terminate all of its old (not necessarily in age but in terms of years of service) employees, and then hire them back, directly or indirectly, at entry-level wages and no seniority privileges? Of course not, was the universal reply. Lawyer Lorna Kapunan was one of those I asked, and she was emphatic about it. So PAL was wrong on this, according to its employees, because that is what it is doing.

How to reconcile these two seemingly opposite situations? Simple, say the employees. Certainly PAL will be "outsourcing" (Situation 1). But the outside company is really an inside company-owned, controlled or operated by Lucio Tan, his family, or his dummies. Smoke and mirrors and corporate veils are being used to disguise the situation, but the end result is the same: employees terminated will be rehired at lower wages, and zero seniority (Situation II).

How do the employees know that the firms that will undertake the previously in-house services are actually in-house firms? They point to Tan’s son, son-in-law, some PAL officials as officers/owners of the firms being considered. Plus the very fact that PAL is offering the soon-to-be-terminated employees first crack at employment with the new (outsourced) service provider-at lower rates, obviously, and as "contractuals"-looks to be a dead giveaway. The disguise is careless.

PAL claims that this "outsourcing" is necessary because it has been losing money-the reported figures are over $300 million or P13 billion for 2008 and 2009. But why did it lose money? Its president, Jimmy Bautista, has been quoted as attributing this to a combination of low demand, restrictions to its expansion to lucrative routes in the United States, and a bad hedging decision that led to the airline paying a lot of money for oil that got cheap.

The low demand part is easy: the global economic crisis was in full flow in 2008 and 2009, and travel was a natural victim-something like a 7-percent decrease in worldwide demand.

The restrictions part is a little more complicated: it involves the US Federal Aviation Administration (FAA) and the International Civil Aviation Organization (ICAO), the former having downgraded the Philippines in 2008 due to deficiencies in our Air Transportation Office (ATO), and the ICAO giving the Civil Aviation Authority of the Philippines (CAAP), ATO’s successor, a failing grade in its audit. All these wreaked havoc on PAL’s flight expansion plans in the United States, as well as its use of two brand-new Boeing 777 aircraft for US flights (not allowed).

And what was the bad hedging decision? This was sometime in 2008, when there was speculation that the price of oil would go through the roof (over $150 a barrel). PAL management bet that prices would go up, so it bought its oil forward, paying current prices against future deliveries. It lost the bet, i.e., prices went down instead of up, and PAL took a financial bath-rumors of the loss ranged from $150 million to more than $300 million.

The reader will notice that the reasons for PAL’s losses in 2008 and 2009, as reported by Bautista, had nothing to do with high labor costs. So why is labor bearing the brunt of the losses?

More to the point, how much is supposed to be the cost savings attached to the labor retrenchment? Again, from news reports, this will be something like $20 million-or all of 6.7 percent of PAL’s total losses.

In sum, PAL lost $300 million, through no fault of its labor. But it is using that as an excuse to take out labor (that just coincidentally comprises 70 percent of PAL Employees’ Association [Palea], the labor union, and most of its officers), even though the "outsourcing" scheme will reportedly reduce its losses by a mere 6.7 percent.

One cannot help conclude that this is nothing but a union-busting move. And yet Secretary Baldoz swallowed the PAL version hook, line and sinker.

The irony of it is that this whole sorry mess gives anyone with a long memory a sense of déjà vu. Twelve years ago, PAL did the very same thing-terminating pilots and flight crews-over 1,500 employees. PAL made the same claim: losses (arising from the Asian financial crisis). It then rehired a great number of them-but at entry level wages, loss of seniority (and for the pilots, a promise not to form a union). PAL sold off its profit centers to Tan-owned companies, terminating the PAL employees in the process, and then rehiring them at lower wages and no job security. And managed to swing a 10-year suspension of the CBA with Palea.

An excerpt from the 2008 Supreme Court decision ordering PAL to reinstate the 1,400 or so flight crew it had terminated, says it all: "It was unfair for PAL to have made such a move; it was capricious and arbitrary, considering that several thousand employees who had long been working for PAL had lost their jobs, only to be recalled but assigned to lower positions, and, worse, some as new hires, without due regard for their long years of service with the airline."

Perhaps Secretary Baldoz should be reminded that she is the secretary of labor, not of management. And that the LE in DOLE stands for "labor" and "employment," not for "labor exploitation."

Troubles and Truths

2010-11-12T17:46:00.001Z

Fortune Tobacco employees also wary of possible layoffs

Fortune Tobacco employees 'restive' over job prospects

abs-cbnNEWS.com
Posted at 11/10/2010 10:34 PM Updated as of 11/11/2010 1:05 AM

MANILA, Philippines - The labor union of cigarette maker Fortune Tobacco has expressed anxiousness over potential job losses that ground and flight crew at Philippine Airlines also face following corporate reorganization.

Fortune Tobacco and Philippine Airlines are both controlled by Filipino-Chinese typan Lucio Tan.

"By closely watching the recent developments in PAL, FTLU (Fortune Tobacco Labor Union) members are getting restless over the 'general pattern' created with PAL's journey into the world of contractualization," former FTLU president Renato Magtubo said in a statement on Wednesday.

He was referring to the planned spin-off of PAL's three non-core businesses that would result in about 2,600 job losses, a move that the Labor Department recently allowed as part of "management's preprogative" to save costs.

Early this year, Fortune Tobacco formed a joint venture with multinational cigarette maker Philip Morris Philippines Inc. creating an entity that cornered about 90% of the Philippine cigarette market.

Before the joint venture, Fortune Tobacco was the market leader, cornering the middle and low-end segment of the market.

FTLU said their members are "getting restive" as Fortune Tobacco also "embarks on major reorganization, which threatens the job security of its more than 2,000 workers."

3 big labor groups fighting PAL ruling

Cite ‘clear danger to labor rights’
By Philip Tubeza, Paolo Montecillo
Philippine Daily Inquirer
First Posted 01:03:00 11/11/2010
Filed Under: Air Transport, Labour dispute, Spin-offs, Justice & Rights, business process outsourcing (BPO)

MANILA, Philippines-Saying there was a "clear and present danger to labor rights," the country’s biggest labor groups have set aside their differences to ask President Benigno Aquino III to reverse the labor department’s ruling allowing the retrenchment of 2,600 workers of Philippine Airlines (PAL).

Various labor groups, numbering about 16-from the militant Kilusang Mayo Uno (KMU) to the moderate Trade Union Congress of the Philippines (TUCP)-have joined hands in protesting Labor Secretary Rosalinda Baldoz’s decision allowing the retrenchment, Gerry Rivera, PAL Employees’ Association (PALEA) president, said Wednesday.

"We call on the government to take notice of this historic solidarity of the full spectrum of the labor movement to defend regular jobs and to fight labor contractualization," said Rivera, who is also the vice chair of Partido ng Manggagawa (PM).

In a decision promulgated on Oct. 29, the Department of Labor and Employment (DoLE) gave PAL the green light to proceed with the layoff of 2,600 employees to pave the way for outsourcing services.

Baldoz said contracting out services and closing down PAL’s in-flight catering, airport services and call center reservation operations were lawful.

"It is not too late for Malacañang to intervene in the PAL labor row in the interest of safeguarding constitutionally mandated workers’ rights in the face of corporate restructuring," Rivera said.

Dangerous decision

At a gathering on Monday in Quezon City, leaders of the TUCP, KMU, PM and the Alliance of Progressive Labor and other labor groups agreed on a statement of solidarity with PALEA.

They also condemned the Baldoz ruling as a "clear and present danger to labor rights and may be the last nail on the coffin of job security."

"This decision is dangerous because it sets aside the PAL-PALEA collective bargaining agreement where it is clearly stated that contracting out the work of regular employees is prohibited," the unity statement said.

The statement also said that the Baldoz ruling "disregards our jurisprudence and laws and lays out the conditions for the retrenchment of workers even in companies that claim to be losing money."

Fight of all workers

The statement said the decision would open the door for widespread contractualization. "This could be the last nail on the coffin of job security in our country," it warned.

"That is why... this is not just a fight of PAL employees. It is also the fight of all Filipino workers. Employers, however big or small, would be emboldened to follow PAL (if Baldoz’s ruling is upheld)," it added.

As a result of the Baldoz ruling, regular employees will be removed and replaced by contractual workers who have lesser pay and benefits and have no job security and union protection, the labor groups said.

Survival

PAL said its plan to cut 2,600 jobs to reduce costs was necessary for the flag carrier’s survival in the competitive aviation industry.

Cebu groups back PAL union

By Carine M. Asutilla, ABS-CBN Cebu
Posted at 11/11/2010 5:25 PM Updated as of 11/11/2010 5:55 PM

MANILA, Philippines - More than 20 labor groups in the Visayas pledged their support to the ground crew employees of local carrier Philippine Airlines (PAL).

Representatives from different labor and militant groups met with the members of the Philippine Airlines Employees Association (PALEA) in Cebu to formally support the union, which is gearing up for a series of protest actions starting Friday.

Joe Tomongha of the Association of Progressive Labor (APL) said that PALEA was battling against contractualization, a problem that labor groups in Cebu share.

Ronald Sitoy of the Kilusan Para sa Pambansang Demokrasya said that their unity was a message to the government that contractualization should be scrapped. Sitoy said the government should treat workers fairly and give them what is due to them.

For his part, Dennis Darige of the Partido ng Manggagawa said they will launch their own protest actions in front of the regional office of Department of Labor and Employment in Cebu. Some 300 PALEA members will attend their rallies until November 30. He clarified though that there will be no work stoppage for PAL workers.

The officials of PALEA are all in Manila, calling for the House Labor Committee to investigate the ownership of the so-called third party service providers contracted by PAL to take over its airport services, in-flight catering and call center reservations.

PALEA is protesting PAL's planned outsourcing, which would require the laying off of some 2,600 workers.

The union filed a formal notice of strike at the National Conciliation and Mediation Board despite a recent P2.5 billion settlement offer by the PAL management to the affected employees.

This was PALEA’s second strike notice after the one filed in January.

The Lucio Tan-led airline has a separate labor issue with the Flight Attendants and Stewards Association of the Philippines, which cited discrimination as ground for considering a strike.

Erap: Davide appointment as SC chief a favor for Lucio Tan

MARK DALAN MERUEÑAS, GMANews.TV
07/06/2010 10:55 PM

The appointment of Hilario Davide Jr. as chief justice in 1998 was done as a favor for business tycoon Lucio Tan, former President Joseph "Erap" Estrada bared in a radio interview Tuesday.

Estrada, who got more than 9 million votes in the May 10 presidential race despite his conviction for plunder, also assailed Davide’s recent appointment as head of an independent body that will investigate unresolved controversies in the Arroyo administration.

"Ang totoo, noong ako ay presidente inimbitahan ako ni Lucio Tan sa penthouse niya sa hotel niya. Sabi niya magdi-dinner lang kami. Inimbita lang ako. Pero pagpasok ko sa penthouse, nandoon na si Chief Justice Davide. Iyan (Tan) ang lumakad para ma-promote iyan at maging chief justice," said Estrada in a dzMM interview.

(When I was President Lucio Tan invited me to a dinner in his penthouse. There I saw Chief Justice Davide. It was Tan who worked to get Davide promoted to chief justice.)

Estrada did not say when and where the meeting took place.

He said he heeded Tan's request and appointed Davide.

GMANews.TV tried calling Davide for comment, but he was not answering his phone.

Davide, in 2002, was conferred the Ramon Magsaysay Award for Government Service - a singular honor that is the Asian equivalent of the Nobel Prize. He was also recognized for his life of principled citizenship and his profound service to democracy and the rule of law.

Philippine Billionaire Cries Foul Over Beer Bottles
Chinese Filipino business magnate Lucio Tan

Lucio Tan is accusing the food and beverage giant San Miguel of using dirty tactics to disrupt the operations of his Asia Brewery.

The Philippine’s second-richest person accuses San Miguel of collecting and storing hundreds of thousands of Asia Brewery’s empty bottles and crates to prevent them from being re-used.

Previously the two companies had an agreement to exchange one another’s bottles, but the deal was terminated after a few years. San Miguel’s staff continued to collect and store their competitor’s bottles and crates long after the deal had expired.

The trial court ruled in favor of Tan’s complaint awarding 130 million pesos ($3 million) in damages, but the decision was reversed on appeal. Now, Tan is taking his case back to the courts.

According to a report by the Philippine Daily Inquirer, Asia Brewery says the appeals court "erred when it blindly accepted the hearsay and incredible testimonies of San Miguel’s witnesses as gospel truth.”

Besides Asia Brewery, Tan also owns the Philippines’s largest cigarette maker, Fortune Tobacco and a stake in Philippine Airlines. Forbes calculated his wealth at $2.1 billion in July. The biggest chunk of his fortune comes from Hong Kong-based Eton Properties, which is selling land in one of its township developments to Henry Sy’s SM Prime.

Eduardo Cojuangco Jr. is the chairman and CEO of San Miguel. Ranked as the 10th richest person in the Philippines, Cojuangco’s fortune was valued at $760 million in July.

http://blogs.forbes.com/robertolsen/2010/10/13/philippine-billionaire-cries-foul-over-beer-bottles/

Lucio's Sons

2010-11-10T23:53:00.001Z

MRC Allied listing Tan, Jr.’s new shares

MRC Allied Industries, Inc. will list three billion in additional shares at the local bourse following the entry of Lucio K. Tan, Jr., the listed company said in a statement yesterday.

"[The company has] secured approval from the Philippine Stock Exchange (PSE) to list an additional 3.12 billion common shares at a par value of P0.20," MRC Allied President Benjamin M. Bitanga said in the statement.

"The listing of these shares is the last of a series of moves that will allow the company to fully focus on resuming a growth agenda for MRC Allied," Mr. Bitanga said.

MRC Allied listed only 500 million shares when it went public in 1995.

Menlo Capital Corp., which bought the company’s bank debts worth P600 million in exchange for 80% or majority of MRC Allied last month, will subscribe to the new shares.

Investment house Menlo Capital is 50% owned by Lucio K. Tan, Jr., the son of tobacco and airline magnate Lucio C. Tan.

"Now all the tools are in place to fuel growth and we are now in a very good position to make acquisitions," Mr. Bitanga said.

The company wants to buy Filipino remittance and air freight service firm Johnny Air Cargo for P500 million to P800 million.

In March, MRC Allied inked a P1.4-billion investment deal with United Kingdom-based fund manager Global Emerging Markets Global Yield Fund Ltd.

Mr. Bitanga said the company was looking at acquiring companies that would generate profits immediately, shelving plans to go into power generation.

MRC Allied, a listed property developer, has a real estate project in Cebu worth P1.8 billion.

MRC Allied was incorporated on Nov. 20, 1990 as Makilala Rubber Corp. for the processing and export of baled natural rubber. In 1993, a group of investors acquired the company from Philtread Tire and Rubber Corp.

(From Philippine Daily Inquirer)

Byline: Victor C. Agustin

IT WAS supposed to have been only Michael Tan, Lucio Tan's eldest son by his second wife, who had been scheduled to meet with the Inquirer Business staff, but for still unknown reasons, the taipan himself decided that he too would go, bringing with him his brother Harry and a number of the taipan's key lieutenants.

It was a pleasant surprise, considering that the taipan and the Inquirer have had difficult relations in the past; still, gracious hosts that they were, Inquirer president Alexandra Prieto-Romualdez even upgraded the modest Business staff lunch budget to Le Souffle catering

Taipan guilty of Economic Sabotage?

2010-11-04T01:56:00.001Z

Taipan guilty of Economic Sabotage?

"I am certain PNoy [Aquino] understands the gravity of this PAL row. This appeal only serves as an urge to his Excellency to intervene and exhaust all means provided by the law to act and protect the PAL workers’ labor rights and job security. After all, these affected workers are also his boss," San Juan City Representative Joseph Victor Ejercito said.

Ejercito, one of the vice chairpersons of the committee, expressed disappointment over the decision of Labor Secretary Rosalinda Baldoz, saying this may cause a stain on the President’s commitment to lead the people on the right path.

"If the laying off of workers be made final and executory, this may hugely affect the way people will perceive PNoy’s administration as the decision is purely anti-labor, anti-worker and most of all, anti-Filipino," he said.

Ejercito and Gabriela partylist Representative Emmi de Jesus said the President should not be afraid to confront business tycoon Lucio Tan, PAL’s owner, with his decisions on the workers’ fate.

"It is imperative that we put a stop to Lucio Tan’s economic sabotage by firing out industrious yet underpaid PAL workers and consistently evading tax obligations since the time of Ramos. It’s high time for PNoy to confront and remove the horns of abusive and exploitative big businessmen such as Lucio Tan," he said.

De Jesus, a member of the committee on labor, called on the employees of the airlines to work together and protect their ranks.

Senate to LLDA: Order Tanduay to pay for Laguna 'fish kill'
10/28/2010 08:20 PM

The Senate committee on environment and natural resources Thursday asked the Laguna Lake Development Authority (LLDA) to order Tanduay Distillers Inc. to pay for the clean-up of the chemical spill which allegedly caused a fish kill in Laguna Lake.

"We asked [the LLDA] to order Tanduay Distillers to pay for the clean-up as part of penalties under the Clean Water Act [of 2004]," said Senator Juan Miguel Zubiri, whose committee started its probe into the reported fish kill.

The LLDA on Wednesday ordered the company to temporarily shut down its plant, which burned on Oct. 14, discharging alcohol into the Cabuyao River - a stream that flows into Laguna Lake. The agency also ordered Tanduay Distillers to explain its side.

Republic Act 9275 or the Clean Water Act prohibits the discharge of any material that could pollute or impede the natural flow of bodies of water.

The LLDA is claiming that alcohol spillage killed the fish in the immediate area, affecting the livelihood of fishpen operators and small fisherfolk who operate in the lake.

"We welcome the Senate investigation," Wilson Young, president and COO of Tanduay Distillers, told GMANews.TV. "We will help them determine what happened there."

The alcohol flowed into the stream because of a fire, he said. "It was an accident."

On Oct. 21, the LLDA told reporters that it started an investigation after fisherfolk reported that the dead fish from the lake emitted an odor similar to that of alcoholic drinks.

"The pollution that occurred was so extreme that the river beside the Tanduay plant is completely dead," Zubiri said in an interview after the Senate hearing.

"What we have to determine now is if there was really a fish kill," Young said.

"Based on this we, want to find out how to avoid similar incidents in the future," he added.

Zubiri said that his committee has ordered the LLDA to conduct a full-blown investigation, and that an LLDA hearing will be held on Nov. 2 to assess the damage caused by the alcohol spill.

400 Million additional expense for PAL

(Updated 3:14 p.m.) The plan to spin off its non-core services - an effort to restructure and streamline operations - will cost Philippine Airlines P2.5 billion, the flag carrier said Wednesday.

PAL president and CEO Jaime Bautista told reporter in a briefing that spinning off the airline’s in-flight catering, airport services, and call center reservations was originally estimated at P2 billion.

But last week’s ruling of Labor Secretary Rosalinda Baldoz "upped the figure by more than P400 million due to enhanced separation benefits and other modifications in the financial and non-cash awards," Bautista said.

In the Baldoz decision, the Department of Labor and Employment (DOLE) recognized PAL management’s prerogative to restructure its operations.

"Given its recent losses and current financial position, PAL would be hard put to raise P2.5 billion but this is a bitter pill we have to swallow. PAL believes DOLE’s decision is ‘just, reasonable and humane,’" Bautista said.

"Since it has the force and effect of a law, we must respect the ruling," he added.

"By not contesting the DOLE secretary’s decision, especially the grant of additional benefits, PAL hopes to finally implement a long delayed corporate restructuring that aims to stabilize the airline’s finances and eventually lead to an expansion and improvement of services," he said.

"The spin off means PAL will sell its in-flight catering, airport services, and call center reservations which will lead to the early retirement of affected rank-and-file workers. They will all receive their respective separation pay and benefits that are much more than what the Labor Code provides," he explained.

"We deeply lament that PAL management decided to push through with the drastic spin-off measure, unmindful of how it will affect the lives of 3,000 workers and their families," Roberto Anduiza, president of the Flight Attendants and Stewards’ Association, said in a statement released Tuesday.

"FASAP is one with PALEA in its struggle to protect the job security of all PAL employees," Anduiza added.

PALEA earlier alleged that PAL had actually contracted out the jobs in non-core services.

Bautista on Wednesday stressed that third party service providers like PLDT e-Ventus for call center reservations is owned by PLDT, while Sky Kitchen for catering and Sky Logistics for airport services are owned by Cebu-based businessman Manny Osmeña. "These service providers are not owned by PAL chairman Lucio Tan or any of his family members," he said.

Problems Plague the Lucio Tan Camp

2010-11-01T18:56:00.002Z

Naperwisyo ang mga pasahero ng Air Philippines Express na uuwi ng probinsiya para sa Undas. Nakansela kasi ang kanilang biyahe matapos magkulang ng piloto ang airline. Nagpa-Patrol, Apples Jalandoni. TV Patrol, Linggo, Oktubre 31, 2010.

http://www.abs-cbnnews.com/video/nation/10/31/10/air-philippines-lacks-pilots-cancels-flights

Tanduay plant ordered shut down after fire

By Maricar Cinco
Philippine Daily Inquirer
First Posted 16:18:00 10/28/2010
Filed Under: Economy and Business and Finance, Industrial accident, Fire, Fishing Industry

SAN PEDRO, Laguna, Philippines -- Authorities have ordered the "temporary shutdown" of Tanduay Distillers Inc.’s plant in Cabuyao, Laguna, following reports that its water discharges had triggered a fish kill in Laguna de Bay. The plant actually burned down last October 15.

The Laguna Lake Development Authority (LLDA) issued an ex-parte cease-and-desist order that was to have taken effect on Wednesday, saying "prima facie evidence exists that the waste water discharges from your distillery plant are of immediate threat to life, public health, safety, or welfare to animals or plant life, as it has indeed caused fish kill within the nearby Laguna de Bay."

"It’s actually two different orders. The cease-and-desist means the company should stop operations until the order is lifted, while the ex-parte means they have to present an explanation to us," said LLDA information officer Gerry Carandang in a telephone interview on Thursday.

He said a meeting was set between the lake authority and the company on November 2.

The fish kill in an area of the lake off Barangay Caingin, Sta. Rosa City, which is a neighbor to Cabuyao, occurred three days after a big fire razed Tanduay’s distillery in Barangay Sala on October 15.

The LLDA’s initial investigation found that "the fish kill incident is being attributed to the water discharges with alcoholic odor traced from the manhole of Tanduay Distillers Inc. plant… towards the outfall leading to Cabuyao river and down to the Laguna de Bay."

"We are still uncertain if the discharge was done on purpose or not," Carandang said, but the lake authority has also required the company to clean and rehabilitate the whole stretch of the lake tributary from Barangay Sala to the lake.

He said LLDA field personnel, who were supposed to conduct an inspection, were denied entry to the company’s premises on October 19.

On October 22, the investigators, although allowed to enter the compound, were not allowed to inspect the plant as it was "cordoned off" by the Bureau of Fire.

The Cabuyao Bureau of Fire has yet to conclude its investigation into the fire.

"At stake here are the company’s clearance (to operate) and discharge permit (issued by the LLDA)," Carandang said.

Tanduay Distillers Inc., located inside the compound of its sister company, the Asia Brewery Inc., has a permit that expires in 2012.

The Inquirer tried to seek comment from the company, but administrative staff Jona del Valle said no one in authority was available for an interview, since the liquor plant stopped its operations when the fire broke out.

Tanduay warehouses in Laguna catch fire

abs-cbnNEWS.com
Posted at 10/15/2010 2:41 AM Updated as of 10/15/2010 5:57 PM

MANILA, Philippines - An alcoholic beverage maker’s 2 warehouses in Laguna province caught fire on Thursday night, authorities said.

The fire at the Tanduay Distillers warehouses in Cabuyao town started at 7:00 p.m. and was still raging as of posting, according to an ABS-CBN News crew deployed to the scene.

The warehouses are located inside a compound owned by Asia Brewery Inc., owned by Filipino-Chinese tycoon Lucio Tan.

There was no report of injuries.

The blaze began at a warehouse compounding area where alcohol used to produce beverages is stored, according to Cabuyao Fire Department officer Antonio Sobijanan.

The fire later spread, affecting another warehouse where processed beverages are stored.

Authorities said the blaze has been confined to a specific area and will no longer spread to other buildings in the compound.

Firefighters, however, are having a hard time putting out the blaze because of the tanks of alcohol inside 1 warehouse that caught fire.

At least 30 firetrucks responded at the scene. Firefighters used a flame retardant chemical to try to put out the blaze.

Arson investigators have yet to determine how the fire started. - with a report from Dominic Almelor, ABS-CBN News

Air Philippines lacks pilots, cancels flights - ABS CBN

Sino? Sino? Who?

Is a PNB Director who has been barred from meddling with PNB affairs due to possible involvement in fabricating Maid cases against a Taipan's brother.

Business with ‘balae’
October 18, 2010

IT is apparently not only taipan Lucio Tan and his eldest son Lucio "Bong" Tan Jr. whose relations are strained within the billionaire clan.

According to the grapevine, even the taipan’s balae and longtime business ally PBCom chairman Enrique Luy had been jolted by the taipan’s alleged threat to foreclose on Luy’s sprawling copra and real estate empire that finally impelled Luy to seek court rehabilitation and protection from creditors all the way in Zamboanga City.

But even before the petition for rehabilitation, Tan’s Philippine National Bank had already begun foreclosing on a number of real estate properties owned by Luy’s ICEC Land Corp. and Kimmee Realty.

According to the grapevine, the real estate mortgages were actually "accommodation loans" extended to the Luys that had long gone past due.

As to the Zamboanga court action, Regional Trial Court Judge Gregorio de la Peña III only issued the mandatory stay order against Luy’s creditors, and has not yet granted the prayed-for rehabilitation program as reported in this space on Monday.

In addition to Tan’s PNB and Allied Bank, Banco de Oro, Rizal Commercial Banking Corp., Development Bank of the Philippines, Bank of the Philippine Islands, Chinabank, EastWest, Unionbank, Robinsons Savings, Asia United and Sterling Bank also have exposures on Luy’s empire for a combined P8.1-billion liabilities, as against claimed Luy assets worth P9.79 billion.

Both PNB and Allied Bank have yet to file their respective comments on the Luy petitition, but if both Tan banks oppose the corporate rehabilitation plan, then business finally prevailed over family ties.

http://cocktales.ph/

The three brokerage firms of the Luy family have been spared from taipan Lucio Tan’s foreclosure moves on his balae’s copra and real estate empire.

The brokerage firms apparently have two positive advantages: They are run as separate financial republics and, within the Tan-Luy clans, US-educated broker Edwin Luy, unlike his more famous father-inlaw, is known as having come from the RAM (Right-Away-Ma’am) school.

Honor and Excellence (Prof. Monsod's Last Lecture to Her Class)

2010-10-13T08:06:00.002+01:00

http://www.youtube.com/watch?v=sF3yPcqO6gE

Brothers against Brother, the "Inside Scoop"

2010-10-11T16:16:00.004+01:00

Heard through the grapevine

Taipan Lucio Tan’s brother Harry suspects that their estranged brother Mariano Tanenglian is being given shelter by San Miguel president Ramon Ang in his Diamond Hotel, Ang’s five-star lodging by the Manila Bay.

Not many know that Tanenglian years ago extended Ang a financial lifeline when his Northern Cement Corp. was having a tough time servicing its debts

http://www.manilastandardtoday.com/insideBusop.htm?f=2010/october/8/vicagustin.isx&d=2010/october/8

Chinese community is abuzz with questions about Lucio Tan brother Harry Tan who is more interested about maids, security guards and his brother Mariano than PAL’s financial well-being.

Was it he who masterminded the Maid cases without Kapitan’s approval?

"Stop telling lies about me and I'll stop telling the truth about you." - Gordon Gekko

Estelito Mendoza denies fighting on wrong side of RP history
SOPHIA M. DEDACE, GMANews.TV
10/11/2010 05:33 PM

He has gained the reputation of defending high-profile clients unpopular in Philippine society.

However, after more than 50 years in the Philippine bar, the 80-year-old Estelito Mendoza brushed aside perceptions he has been defending on the wrong side of Philippine history.

For him, everything is just an exercise of the practice of law and making sure that his clients are deemed innocent until proven guilty.

On Monday afternoon, Mendoza gamely answers questions about his clients, the most recent of whom is former President Gloria Macapagal-Arroyo, accused of plundering government coffers during her nine-year regime.

Mendoza also recalls arguing for the government of former President Ferdinand Marcos as solicitor general and justice minister.

When the dictator fell from grace and went in exile in February 1986, the dictator's perceived cronies sought Mendoza's service.

These clients -- business tycoons Lucio Tan and Eduardo "Danding" Cojuangco Jr. -- were never convicted in court and have not spent a single minute in jail.

"I'm a laywer. I don't choose what cases I have. Those in the wrong side are most deserving of having lawyers," Mendoza says.

"I'm just doing my job and that's what I have been trained for I have been at this for many years. I find great satisfaction performing my duty because I contribute to the administration of justice. I can assure you that I win my cases because I work hard," says Mendoza.

"Fortunately, it turned otherwise. President Aquino, in creating a PCGG, provided ready clients for me. All those being sued by the government became my clients, like Lucio Tan and Danding Cojuangco, who even up to now are my clients in their businesses," the octogenarian lawyer added.

Marcos died while in exile in Hawaii in 1989, leaving Imelda to fend of the sword of justice by herself.

According to records of the Philippine anti-graft court Sandiganbayan as of 2005, Mrs. Marcos continues to face 11 criminal charges and 25 civil cases. Since the 1990s, she has faced more than 900 cases, most of which were dismissed for lack of evidence. The few convictions were overturned.

Tan, for his part, was acquitted of a P27-billion tax evasion case in 2006.

To date, neither the Marcoses nor any of their cronies accused of amassing ill-gotten wealth have spent a minute in jail.

The government has had little success in recovering the Marcos wealth, if only those that are ensconced in a range of corporations and properties.

Mendoza says that Marcos is the "smartest" Philippine president.

"PCW remains steadfast in its position to oppose any efforts of commodifying women and perpetuating sex stereotyping," PCW executive director Emmeline Verzosa said in a statement.

The other ad, which featured Reyes getting ready for her date after taking a shower, was edited to remove scenes "showing a lot of skin."

The 2 ads were part of the Colt 45 Vava Vroom Real Man promo, where prizes at stake are a weekend getaway with Reyes and a tough truck. The beer brand is under Asia Brewery Inc., a company owned by Lucio Tan.

PCW said it will no longer be "forgiving" of Colt 45 commercials, which usually "promote stereotypes of what a real man should and should not do."

Meanwhile, an official of Asia Brewery stressed that the company didn't view the ads as a derogatory portrayal of women as a commodity or prize.

"(The date concept with Reyes) is rather common and a highly accepted experience most people would aspire," said Asia Brewery Inc. senior brand manager Joseph Ryan Consul.

He added, "(Asia Brewery) will ensure to uphold equality in sexes, and uplift the image of women (in all of its communication drives)."

Section 16 of Republic Act 9710 or the Magna Carta of Women asserts that the State shall endeavor to raise the consciousness of the general public in recognizing the dignity of women and the role and contribution of women in the family, community and society through the strategic use of mass media.

Karma Kapitan

2010-10-05T23:21:00.000+01:00

After having a brother battle human rights cases, a Taipan has suffered numerous accusations of Human Rights violations of his own from the new administration.

CHR Chair Loretta Rosales expressed on Monday her support for groups that have called for the implementation of the Department of Health's Administrative Order 2010-0013, compelling tobacco manufacturers to put pictures of the debilitating effects of smoking on their packs.

Rosales, who admitted to be a former chain smoker who kicked the habit in 1994, said the companies' refusal to follow the rules "was a rights violation."

The law of Karma has caught up with the Taipan.

Commission in Human Rights Backs Graphic Warnings on Cigarette Packs

2010-10-05T05:00:00.003+01:00

http://newsinfo.inquirer.net/breakingnews/nation/view/20101005-296071/CHR-backs-graphic-warnings-on-cigarette-packs

CHR backs graphic warnings on cigarette packs
By Kristine L. Alave

MANILA, Philippines - The Commission on Human Rights (CHR) has put to task tobacco companies for refusing to put graphic warnings on cigarette packs.

CHR Chair Loretta Rosales expressed on Monday her support for groups that have called for the implementation of the Department of Health's Administrative Order 2010-0013, compelling tobacco manufacturers to put pictures of the debilitating effects of smoking on their packs.

Rosales, who admitted to be a former chain smoker who kicked the habit in 1994, said the companies' refusal to follow the rules "was a rights violation."

"The companies who do not implement the AO should be charged," she said in a press briefing on Monday.

She noted that the health department has put the law in place to protect the lives and health of the public.

CHR Commissioner Cecilia Quisumbing said the companies who have been fighting the law were guilty of "impunity."

The CHR chief issued the call for companies to follow the law after a support group of laryngeal cancer survivors appealed to her to pressure tobacco firms after two companies managed to secure an injunction against the order.

"Every day, 250 Filipinos die of smoking-related illness. But tobacco companies have not just refused to comply with the AO, they've also filed cases left and right against the Department of Health," Emer Rojas, president of New Vois Association of the Philippines (NVAP) said.

"I have laryngeal cancer, a form of cancer that is 99% caused by smoking. The lying must stop so others will not have to go through the suffering and pain that we, victims of cigarettes - and our families - went through," he added.

Recently, Fortune Tobacco, which is owned by tycoon Lucio Tan, and Mighty J, has asked the court to invalidate the AO. The court granted their requests, prompting the Department of Health to contest the injunction orders.

The NVAP noted that placing pictures of ailments caused by smoking would discourage people, especially minors, from taking up the habit. It noted that the AO was consistent with the health department's mandate to protect the public's health.

====

http://business.inquirer.net/money/breakingnews/view/20101005-296048/Lucio-Tan-firm-assessed-P352M-in-unpaid-taxes

Lucio Tan firm assessed P352M in unpaid taxes
By Carla Gomez

BACOLOD CITY - The Asian Alcohol Corp. (AAC) has sought permission to demolish its P2.2-billion plant in Pulupandan town but Mayor Magdaleno Peña on Sunday said he would not allow the company to do so until the full settlement of its P352-million tax deficiency to the provincial government and the municipality.

Negros Occidental provincial assessor Merlita Caelian and provincial treasurer Nilda Generoso informed AAC general manager Henry Tan in a letter dated July 26 that his firm owed the Negros Occidental provincial government and the municipality of Pulupandan P352,747,326.75 in taxes.

AAC lawyer Roger Reyes on Sunday said the Lucio Tan owned-firm would not resume operations in Pulupandan and has applied for a demolition permit from the town government.

The firm, estimated to cost about P1 billion, has not been operating for more than a year, having shut down on June 2, 2009 amid demands from the Pulupandan town government for it to comply with the pollution control requirements.

The AAC was planning to invest an additional P500 million in Pulupandan before its shutdown, Reyes added.

The demolition will not take place unless the AAC pays their real property tax liability to the province and the municipality, Peña said.

"If I allow the demolition without their paying the tax, I would be guilty of graft and corrupt practices because, in effect, I would be depriving the province and the LGU of about P352 million in deficient real property tax," he said.

If ACC refused to pay, its plant in Pulupandan could be auctioned off by the government, the mayor said.

On Sunday, Peña furnished the Philippine Daily Inquirer a copy of the letter of Caelian and Generoso informing AAC of its tax deficiency of P352 million, inclusive of penalty, which was traced after conducting a comparative review of real property assessment and tax collection.

The review concluded that from 1997-2009, the cost of real properties, such as land, buildings, machinery, declared by AAC to the Bureau of Internal Revenue was higher by over P12.8 billion than the cost it declared with the local assessor, the two assessors noted in their review.

The estimated difference amounting to P12.8 billion was computed using the audited financial statements of AAC filed with the BIR compared to what was declared in the Local Assessor's Property Listing.

Due to the established difference, they said the deficiency in tax owed by the AAC amounted to P352 million, they said.

In the event of a successful collection, the province of Negros Occidental would get P148,153,877.00 or 42 percent of the P352 million while the municipality of Pulupandan's share would be 20 percent or P70,549,465.20 of the amount.

The barangay (village) where the alcohol plant has been located would get 13 percent or P45,857,152.00 while the local school board would receive P88,186,831.00, representing 25 percent of the tax, a statement from Peña’s office said.

Taipan suspected to be Human Rights Violator

2010-09-29T20:59:00.003+01:00

Taipan suspected to be Human Rights Violator

“The Philippine Commission on Women has already pronounced that PAL's policy towards its female flight attendants is discriminatory. The Commission on Human Rights chair, Ms Etta Rosales, has also pointed-out that PAL's retirement, pregnancy and maternity provisions for flight attendants are sexist and discriminatory, in violation of their human rights,” Anduiza said.

====

PAL cabin crews to strike
By Abigail Kwok
INQUIRER.net

Filed Under: Protest, Air Transport, Labour dispute, Lucio Tan

MANILA, Philippines—After talks with the Philippine Airlines management bogged down, a group of flight attendants and stewards on Wednesday announced it will push through with its labor strike sometime between October and November.

In a statement, the Flight Attendants and Stewards Association of the Philippines (FASAP) said it would no longer enter into further negotiations with PAL after its management refused to fix the mandatory retirement age of flight attendants and to correct the minimum wage levels for flight attendants and stewards as mandated by law.

Bob Anduiza, president of the 1,600-strong FASAP, said the strike will be held sometime between the end of October and the first week of November.

The decision to push through with the strike came after Tuesday’s meetings of the labor group with PAL at the National Conciliation and Mediation Board of the Department of Labor and Employment ended in a deadlock.

FASAP said that PAL still insists on paying P8,605 as minimum monthly wage of flight attendants instead of the P12,288 minimum pay mandated by the Department of Labor and Employment.

“It clearly showed that the PAL flight attendants' entry level pay of P8,605 is way, way below the present P12, 288 minimum wage,” Anduiza said.

http://newsinfo.inquirer.net/breakingnews/nation/view/20100929-295021/PAL-cabin-crews-to-strike

http://www.manilastandardtoday.com/insideNation.htm?f=2010/september/29/nation2.isx&d=2010/september/29

====

Ultimatum for Bong Tan

http://www.manilastandardtoday.com/insideBusop.htm?f=2010/september/29/vicagustin.isx&d=2010/september/29

TAIPAN Lucio Tan has drawn a very public line in the sand for his namesake son, Lucio “Bong” Tan Jr., about his reported acquisition of the publicly-listed MRC Allied Industries.

The taipan placed paid advisories in the newspapers for the past two days clarifying that the Lucio Tan Group of Companies have “no corporate ties or any business dealings” with MRC Allied, a shell company controlled by investor and real estate developer Benjamin Bitanga.

The ads are the culmination of a series of moves, both intimidating and conciliatory, from the taipan’s trusted aides to frustrate Bong Tan’s desire to start a business outside the family conglomerate.

These moves included, according to the pro-Bong Tan grapevine, writing the Chinese embassy to forewarn possible Chinese investors about a power plant venture, calling up DMCI’s Isidro Consunji about the son’s planned acquisition of AG& P, and, even earlier, unseating the son from the presidency of Tanduay Distillers and dumping his office belongings in a box.

The pro-taipan grapevine, on the other hand, claim the old man just wanted to inform the son’s potential partners that the patriarch would no longer throw a financial lifeline to his eldest son’s next venture just like what he did when he ended up cleaning up the P3-billion disaster of the son’s Catering-X business during the regional currency crisis.

On a personal level, the pro-taipan grapevine has been trying to impress on the US-educated, 43-year-old heir to cut down on golf and basketball and spend more time with the family business. Why can’t he be like his half-brother Michael Tan and his uncles Harry Tan and Domingo Chua, who are at the beck and call of the 75-year-old patriarch, especially with the king-sized headaches that Philippine Airlines has lately been giving him? the pro-taipan chatter asked.

PAL Holdings, incidentally, will hold a stockholders’ meeting at Century Park Thursday; the press should have more clues on the direction of this brewing family split, should Bong Tan, a company director, decide to appear. Or not.

====

Heard through the grapevine

The Bank of the Philippine Islands has concluded due diligence work on Philippine National Bank and Allied Bank, a claim being strongly denied by key Lucio Tan officials.

====

From the grapevine

First come, first served

Claims on the $4 billion wealth of an ailing Taipan has started. A child is reported to have sued his rich father for his share of the sprawling empire.

Sadly, mistresses have no right to the treasures.

====

The absent Tans
October 4, 2010

LUCIO Tan Sr. and Lucio Tan Jr. were both absent in Thursday’s annual stockholders’ meeting of PAL Holdings at the taipan’s Century Park hotel.

The patriarch, along with wife Carmen, was reportedly in China for the Oct. 1 national day celebrations; the junior Tan, despite telling his uncle Harry Tan that he would attend, decided not to show up as well.

Uncle Harry neatly deflected possible inquiries about the reported fissures between the patriarch and his oldest son, cutting off a reporter’s question by saying, in Pilipino, “those are just rumors,” as he hurriedly walked away from the media pack.
The shareholders’ meeting was short and went without a hitch along the prepared script. Even the restive flight attendants’ union of Philippine Airlines stayed away.

http://cocktales.ph/

What’s next for Mariano Tanenglian?

2010-09-24T22:52:00.000+01:00

What’s next for Mariano Tanenglian?

Business circles are now rife with speculative talk about the cause and true nature of the feud between wealthy Chinese-Filipino businessman Lucio Tan and one of his brothers, Mariano Chua Tanenglian. And one cannot help but wonder if this feud is actually the beginning of the end of the Tan family’s mighty business empire.

There are rumors of Mariano’s alleged embezzlement of company funds for personal profit, which is somewhat difficult to believe considering what the brothers had gone through in business together all these years, and of significant business losses from trading in metals and speculative hedging on jet fuel prices.

Obviously, with Mariano handling treasury for the group, he cannot expect to be blameless for financial troubles, if any. But he has been doing finance for Lucio’s businesses in the last 50 years. And for sure, in all those years, his financial management was not always perfect. But why the relationship blow out now?

There is also talk of the 69-yeard-old Mariano going into business for himself, investing in a real estate venture without the permission of his older brother, the 74-year-old Lucio. Some people claim Lucio is particular about loyalty to the family business, and has ordered that all family members working for the group cannot work nor do business externally.

That Lucio and Mariano are not blood brothers, as some pundits point out, does not seem to be an issue. But it remains uncertain whether Lucio is also about to question the loyalty of their brothers Harry and Frank or Chang Wing Kit, and brothers-in-law of Domingo Chua Cheung Chi Ming. The worse that can happen is for the ongoing feud to divide the family further.

Not at a time when business is not doing too well. The cigarette and liquor business are now under threat both from smugglers as well as new taxes; their airline business is adversely affected by rising fuel prices; the merger of their banks is also held back by regulatory issues. There is also the issue of their profitability, with one stockholder reportedly complaining that bank stocks she had bought at P100 apiece were now worth just a little over P23 per share.

It is always sad to read about family, or brothers, fighting over business. And Philippine industry has seen enough of such fights over the years. To the credit of the Gokongwei brothers, for instance, despite the passing of Henry and Johnson Robert, eldest brother John and youngest brother James continue to work well with Henry’s and Johnson’s children.

In the case of the Lucio Tan Group, what started out as a small trading firm in the late 1950s diversified into chemicals, cigarettes and liquor, a piggery, several banks, hotels, airlines, and real estate development. And today, the group has business interests in the Philippines, China and Hong Kong, Papua New Guinea, Guam, Canada, and the United States.

Also, it is easy enough to mistakenly think that the group was founded solely by Lucio Tan. People in the know are quick to point out that the group’s business success can also be credited to three other people. Aside from Lucio, there were Benito Tan and Florencio Santos, now both deceased, and of course, Mariano.

Being a commerce graduate, as opposed to Lucio’s degree in chemical engineering and Florencio Santos’s law degree, it was only fitting that Mariano handled treasury for the group. And this was for almost 50 years, for nearly all the companies in the group, until the publicized falling out between brothers that reportedly started in February.

With only Lucio and Mariano still alive, and with no clear succession rules, perhaps the 74-year-old family patriarch is beginning to feel insecure with his younger brother’s influence in the company. Also, one can speculate the possibility of infighting among Lucio’s aides, especially after their boss’ recent surgery. What happens to them when he goes is anybody’s guess.

Also raised by speculators is Mariano’s supposed loyalty to Lucio Tan’s first family. Coffee shop wags claim that because of their late Tan mother’s insistence on faithfulness, Mariano acknowledges the legitimacy of Lucio’s first wife, Carmen, and thus reportedly recognizes Lucio Tan, Jr. as his father’s rightful heir.

But unfortunately for Lucio Khao Tan, Jr. or Bong, despite his bachelor’s degree in Civil Engineering and his Executive Masters in Business and Administration from Northwestern University and the Hong Kong University of Science and Technology, and the supposed support of his Uncle Mariano, he does not seem to be in his father’s favour.

As for Mariano’s fate, the word is, he has been told to move overseas with the rest of his immediate family. In February, he was already barred from entering the premises of the Allied Bank Building on Ayala Avenue, where he holds office. This prompted him to sue the bank’s security chief, which reportedly even earned him the irritation of his brother.

Talk about 50 years of contribution and dedication to the family businesses suddenly being rendered worthless. Since then, Mariano’s nominations to the various Tan company boards have been withdrawn, including that for Allied Bank and Philippine National Bank, Tanduay Distillers, Philippine Airlines, Eton Properties, and MacroAsia.

History is replete with stories of kings, emperors, or even wealthy and powerful businessmen whose empires were eventually brought to ruins by mismanagement or even family squabbles, or worse, by wedges driven between family members by ambitious and scheming but undeserving underlings. One can only wish Lucio Tan the best of luck in keeping his family and his businesses from falling apart.

Comments to matort@yahoo.com

MERGER NG PNB-ALLIED BANK, GANAP NA KONTROL NI LUCIO TAN SA BANKO

2010-09-22T20:22:00.002+01:00

MERGER NG PNB-ALLIED BANK, GANAP NA KONTROL NI LUCIO TAN SA BANKO

by Echo Park Community Coalition (EPCC) Tuesday, Jan. 19, 2010 at 9:46 PM
epcc_la@hotmail.com 818-749-0272 1740 W. Temple St. Los Angeles, Ca 90026

Nalaman ngayon ng EPCC NEWS na magsasanib ng Philippine National Bank (PNB) at ang Allied Banking Corporation (ABC). Dahil dito ganap na makokontrol ni Lucio Tan ang kontrol sa PNB dahil makokompleto nito ang 80% dahil sa pag-aari niya sa Allied Bank. Ang Allied bank ay dating kontrol ni Juan Ponce Enrile at ng mga Marcos. Isa ito sa mga hinahabol na ari-arian ng PCGG subalit bigo sila sa kanilang pagiimbestiga laban dito maging sa ma kaso laban kay Lucio Tan.

EPCC News
January 19, 2009

MERGER NG PNB-ALLIED BANK, GANAP NA KONTROL NI LUCIO TAN SA BANKO

Los Angeles—Nalaman ngayon ng EPCC NEWS na magsasanib ng Philippine National Bank (PNB) at ang Allied Banking Corporation (ABC). Dahil dito ganap na makokontrol ni Lucio Tan ang kontrol sa PNB dahil makokompleto nito ang 80% dahil sa pag-aari niya sa Allied Bank.

Ang Allied bank ay dating kontrol ni Juan Ponce Enrile at ng mga Marcos. Isa ito sa mga hinahabol na ari-arian ng PCGG subalit bigo sila sa kanilang pagiimbestiga laban dito maging sa mga kaso laban kay Lucio Tan.

Alam ng lahat na ang Allied Bank ay banko ng mga kroni na malalaking loggers sa Pilipinas Dati itong hawak at pinaghaharian ng isa sa mga bataan ni Enrile na si vice-governor Alfonso Reyno ng Cagayan.

Dahil sa kontrol ni Tan sa PNB at iba pang pag-aari ng gobyerno tulad ng Philippine Airline (PAL), lalongtumibay ang posisyon nito sa ekonomya ng Pilipinas.

Dating matibay na banko ng gobyerno ang PNB ngunit mula pa sa panahon ni Marcos, ginawa na itong gatasang baka ng mga negosyante at mga burukrata kapitalista.

Yes, Estrada and Ms Arroyo are “birds of the same feather.” Estrada sided with tycoon Lucio Tan against the workers of Philippine Airlines. He even reprimanded the workers, by asking them the question: “Nakakain ba ang CBA?” [“Can you eat a CBA?”] Estrada is pro-rich and his slogan “Erap para sa mahirap” [“Estrada for the poor”] is just a slogan.

====

Ka Popoy Lagman was arguably be the most colorful and effective leader of this generation. His run-ins with the biggest of the tycoons and the most powerful of politicians are legend. Popular columnist Conrado de Quiros documents the following incident -

Lagman, as far as I know, was the first one to stand up before Erap and tell him to his face that he agreed completely with his desire to bring peace and harmony to labor-capital relations, and the best way to do that was to put criminals like Lucio Tan behind bars. This was Labor Day a couple of years ago, during the height of the labor problem at PAL, when the labor leaders were invited to Malacañang. That was real cojones." (PDI, "There's the Rub, Revamp the vision, not the men")

BAKIT DAPAT KASAMA TAYO SA LABAN NG MANGGAGAWA NG PAL?

2010-09-22T20:22:00.001+01:00

BAKIT DAPAT KASAMA TAYO SA LABAN NG MANGGAGAWA NG PAL?

Agosto 6, 2010

Mga kamanggagawa at kababayan,

SA IKALAWANG pagkakataon, inaatake ni Lucio Tan ang manggagawa ng PAL. Gagawing kalahati ang sweldo! Gagawing kontraktwal ang mga empleyado!

Ang mga piloto na sumusweldo ng P150,000 kada buwan sa PAL ay ililipat sa Air Philippines, na pag-aari rin ni Lucio, at pasasahurin ng P75,000. Dahilan para lumipat sa ibang bansa ang ilan na sa mga piloto. P400,000 kada buwan ang average salary ng piloto sa ibang bansa. 26 na ang umalis at may 50 pa ang nagbabalak umalis na piloto.

Ang mga ground crew [nag-aasikaso ng bagahe ng PAL], maintenance [mekaniko sa lahat ng eroplanong lalapag sa NAIA] at catering [nagsusuplay ng pagkain at inumin sa mga eroplano ng PAL] regular employees na sumusweldo ng P20,000 ay pasasahurin ng P10,000 bilang kontraktwal na empleyado matapos ihiwalay ang mga departamentong ito sa kumpanyang PAL. Pag-aari rin ni Lucio ang mga bagong kumpanya ng ground crew, maintenance at catering. Kamakailan lang ay pinahintulutan ng DOLE si Lucio na tanggalin ang 2,600 na manggagawa sa pamamagitan ng pagbabaklas ng departamento ng ground crew, maintenance at catering mula sa PAL upang bigyang-daan ang kontaktwal na relasyon ng mga dating permanenteng manggagawa sa bagong kumpanyang itatayo ni Lucio sa mababang sweldo at benepisyo.

Ang mga flight attendants at stewardesses ay 3 taon ng di tumataas ang sweldo at benepisyo dahil sadyang pinatatagal ng kumpanya ang negosasyon. Negosasyong karaniwang tumatagal lang ng 3-6 na buwan. Bargaining in bad faith ito na labag sa Labor Code. Dagdag pa, ipinilit ng kumpanya ang patakaran nitong mandatory retirement age na 40-45 anyos sa mga babae. Samantalang ang kapwa nila empleyado sa PAL sa lahat ng departamento ay 60 anyos ang retirement age.

Ang ginagawang ito ni Lucio ay walang katulad sa Pilipinas at sa buong mundo!

Minsan na niyang ginawa ito sa PAL noong 1998. Sinuspindi niya ng 10 taon ang CBA o collective bargaining agreement – walang wage at benefit increases — ng Philippine Airlines Employees Association o PALEA. Ito ang unyon ng ground crew, maintenance, catering at ticketing. Maramihan niyang tinanggal ang mga piloto at opisyales ng Airline Pilots Association of the Philippines o ALPAP, flight attendants/stewardesses/ at ilang opisyales ng Flight Attendants and Stewardess Association of the Philippines o FASAP at ground crew/ maintenance.

Nagawa ito ni Lucio noon katulong ang gubyerno ni Erap at mga ahente ng kapital sa masmidya, kasama na rito ang napanood natin sa TV na male-maletang pera na nagkakahalaga ng 50 milyong pisong ibinayad ni Lucio sa ilang opisyal ng unyon sa PAL. Naitulak nilang pansamantalang sumuko noon ang mga manggagawa ng PAL dahil ginamitan nila ng blackmail ang mga manggagawa: 10-year CBA moratorium o isasara ang PAL.

Pero ang epekto ay di lang sa PAL employees. Ang ginawa ni Lucio at ng gubyerno noon sa PAL ay naging huwaran sa ibang kapitalista. Nauso ang moratoryum sa mga CBA negotiations sa maraming kumpanya. Nagkakapirmahan sa mga CBA na walang lamang wage increase! Sinisertipikahan ang mga CBA ng Department of Labor kahit alam na ang mga ito ay “sweethearts contracts” na labag sa Labor Code! Kaya naman marami ang di umaabot ang sweldo sa minimum wage. Hanggang ngayon, ito ang trend sa relasyong manggagawa-kapitalista.

Ngayon, makalipas ang 12 taong pagyurak sa karapatan ng mga manggagawa sa PAL at pagholdap sa kanilang dagdag na sweldo at benepisyo, pumangalawa na si Lucio Tan kay Henry Sy sa pinakamayamang tao sa ating bansa. 12 taong walang CBA. 12 taong nakatipid ng labor cost si Lucio Tan!

Mga kamanggagawa at kababayan.

Ang ginagawa ni Lucio Tan ay gyera laban sa mga manggagawa ng bansa. Gerang walang fixed battle lines. Kumikilos ito nang marahan. Minsa’y bumibigwas nang biglaan. Di mawari ang pinanggagalingan. Lagpas sa mga batas, kumbensyon at kalakaran.

Bagong pakana itong ginagawa ni Lucio. Nagseset ito ng bagong trend. Kakalahatiin ang sweldo! At gagawing kontraktwal ang lahat ng empleyado! Wala ng regular. Wala ng permanente.

Kagaya ng nauna, gagayahin din ito ng ibang kapitalista. Kagaya ng nauna, kakampihan din ito ng gubyerno! Kagaya ng nauna, ito ang magiging BAGONG kalakaran!

KUNG hahayaan nating ang ALPAP, PALEA at FASAP lang ang lalaban. Kung iisipin nating problema lang nila yan at di natin problema. Kung amor propio ng sariling organisasyon ang ating mas pahahalagahan kaysa kapakanan ng buong uring manggagawa.

MAGSAMA-SAMA TAYONG LAHAT para kondenahin at puspusang labanan ang pakana ni Lucio Tan. Hindi lang ito para sa mga empleyado ng PAL. Para rin ito sa ating lahat. Para ito sa lahat ng mga namamasukan o mga mamamasukan sa hinaharap sa alinmang kumpanya. Kapag tuluyang nagtagumpay ang eksperimento ni Lucio Tan sa kanyang kumpanya, lalaganap yan sa lahat ng employer sa buong bansa.

Gusto ba nating bukas makalawa ay kakalahati na lang ang sweldo at puro kontraktwal na ang empleyado sa lahat ng kumpanya?

Lucio Tan did not make it to the Forbes' Billionaire List

2010-09-17T20:43:00.002+01:00

"The companies of another Filipino businessman included in Forbes' billionaire list this year, beer and airline magnate Lucio Tan, also did not make the cut."

http://www.abs-cbnnews.com/business/09/16/10/china-india-tie-top-place-forbes-asias-fab-50

China, India tie for top place in Forbes Asia's Fab 50

abs-cbnNEWS.com
Posted at 09/16/2010 11:23 AM

MANILA, Philippines - Asia’s economic powerhouses China and India have tied for top place with the most number of firms on Forbes Asia’s Fab 50 List, with both countries accounting for more than 60% of the firms on the 2010 list.

Forbes Asia's Fab 50 list is an annual roster of the best 50 big-capitalization and profitable companies in the region.

China, which has topped the list since 2008, held steady with 16 entries, unchanged from last year. Of these, 10 firms are returnees including Lenovo Group. The company commands the biggest share of the PC market in China, and makes the list for the fourth time after dropping out last year.

Also returning to the list are 2 other Chinese technology companies: Digital China Holdings and Tencent Holdings.

India also had 16 entries on the list, compared with 13 last year and only 3 when the inaugural Fab 50 List was published in 2005. A lot of Indian companies displayed staying power with 11 firms returning to the list.

Perennial top performer Infosys Technologies joins the roster for the sixth straight year. Making their appearance for the fifth consecutive time are Bharat Heavy Electricals, HDFC Bank and Larsen & Toubro. Other Indian returnees include ITC and Axis Bank.

Despite being named this year's richest man in the Philippines, the conglomerate of tycoon Henry Sy, SM Investments Corp., did not make it to the top 50.

The companies of another Filipino businessman included in Forbes'billionaire list this year, beer and airline magnate Lucio Tan, also did not make the cut.

The Fab 50 List appears in the latest issue of Forbes Asia. The 50 firms were picked from a shortlist of 936 that had revenues or market capitalization of at least $3 billion as of September 1, 2010, and a 5-year record for revenue, operating earnings and return on capital. Other criteria included recent financial result, share price movement and outlook.

This year, Hong Kong and Taiwan tied for third place with 4 companies each.

Hong Kong’s Li & Fung is the other firm apart from Infosys that has made the Fab 50 in all 6 years since the list began. Taiwan’s Acer, the world’s number 2 PC maker, has made the list every year except in 2006.

Coming in fifth is South Korea with 3 entries: Glovis, NHN and Samsung Engineering. Following behind are Australia and Japan with 2 entries each while Indonesia, Singapore and Thailand rounded off the list with one entry each.

The number of Japanese firms making the cut has declined over the years since the list started in 2005. Japan topped the inaugural list with 13 firms but since then its entries have dwindled along with the country’s economic stagnation.

This year’s Fab 50 List includes 18 new faces. Dongfang Electric, one of 6 new Chinese companies on the list, makes power-generation equipment and has produced more boilers, turbines and generators than any other company in the world.

Its president Wen Shugang tells Forbes Asia how his Sichuan-based company survived the devastating earthquake in 2008 in the latest issue of the magazine.

Another notable new entry is Thai coal miner Banpu, which has been steadily expanding overseas for 12 years. Its revenue grew 20% last year to $1.7 billion, and profits jumped 61% to $427 million.

The Fab 50 companies will be honored at an award ceremony and dinner in Bangkok, Thailand on December 8 2010.

Theres The Rub: Stewardesses are not GROs

2010-09-16T03:32:00.002+01:00

http://opinion.inquirer.net/inquireropinion/columns/view/20100914-292278/Stewardesses-are-not-GROs

By Conrado de Quiros
Philippine Daily Inquirer
First Posted 21:39:00 09/14/2010

Filed Under: Labor, Social Issues, Air Transport

THE FIRST time I saw it was maybe 15 years ago, at an American Airlines flight. The fellow was a steward, uniformed like the others, trim like the others, capable like the others. With one exception. His hair was gray, his skin was blotched, and his face bore wrinkles. I figured he must be in his late 60s or early 70s.

He wasn’t just polite. He was pleasant, engaging the passengers in banter, for those who wanted to banter. He had a smile for everyone. After a while the novelty of his appearance (for me at least—it didn’t seem to strike the other passengers as so) wore off and he faded into the woodwork, or the cabin, just another member of the crew.

Soon after that, the sight became so common in various airlines you didn’t notice it anymore.

But the first time made you ask: Why on earth (or in the skies) not? Why should stewardesses look like the Girl from Ipanema? Flight attendants are not there to serve patrons, they are there to serve passengers. They are not there to entertain customers, particularly in their times of dire want, they are there to help commuters, particularly in their times of dire need.

That is the question Fasap (the Flight Attendants and Stewards Association of the Philippines) is asking PAL (Philippine Airlines). That is the answer Fasap is giving PAL.

For which it has filed a notice of strike.

I’ve known Fasap for about a decade and a half now and known it to be one of the most reasonable unions in the world. That is the reason for its success. It does not rush headlong into strikes. It does so only after exhausting other means. Other unions would do well to learn from it. Reasonableness is its middle name.

The working conditions of its female crew suck. That is the core of its cause. That is the reason it has served a notice to strike. It has nothing to do with more pay, more allowances, more benefits. It has everything to do with basic, minimum, elemental, justice. Two-thirds of Fasap’s 1,564 members are women.

Two things in particular Fasap wants to change.

The first is for PAL to scrap its de facto policy of criminalizing pregnancy for flight attendants. There is no other way to put it. You are a PAL stewardess and you get pregnant, you get to file a leave of absence without pay. The leave amounts to close to a year, given the two months for normal delivery and three months for caesarean you are required to take afterward. That period is taken away from your number of years of service. If you get pregnant three times in the 20 years that you work for PAL as a flight attendant, you will register only 17 years served.

That applies only to flight attendants. It’s different for the ground crew. They may work till they are about to deliver, have their 60-day leave paid for by the Social Security System, and come back to work shortly afterward. None of it is taken away from their record.

What makes the policy exceedingly laughable—the kind that makes you cry—is that male flight attendants who take a paternity leave do not have their leave taken out of their years of service. The policy is clear: You are innocent if you get your wife (or mistress) pregnant, but guilty if you yourself get pregnant.

Fasap in fact is simply asking for the period of pregnancy not to be discounted from the flight attendant’s years of service. The rest—what pay or benefits she should get in the course of her nearly-one-year leave—remains subject to negotiation. You can’t get more minimum than that. Other unions would criticize Fasap for being too tame. PAL is accusing it of being too spoiled.

The second, which bears directly on the first, is for PAL to stop parading its flight attendants as eye candy. There is no other way to put it. Since the mid-1990s, PAL has set the retirement age for flight attendants at 40. Too early to get SSS benefits and too late to start again elsewhere. The retirement age for the ground crew ranges from 60 to 65.

PAL says it is merely thinking about the flight attendants’ welfare—they shouldn’t be flying past that age. That is refuted by several things. One is that other airlines now routinely have flight attendants who are senior citizens. There have been no reported cases of them tottering and dying from a heart attack while serving drinks. Two is that the retirement age for PAL’s pilots is 60 for both men and women. Why should the risks be higher for flight attendants than for pilots? And three is that the line administrators, the officers who fly to rate the flight attendants’ performance, retire at 65.

Elsewhere, the point is to be fit. But PAL’s point is that fit means young. Fit means not being pregnant. Fit means fit to ogle, fantasize on, flirt with. That is the only explanation for the patent discrimination. That might have been acceptable once with airlines, during Cro-Magnon times, but that is no longer so today. For good reason: It is an exploitative view of flight attendants, and the world will have nothing to do with it. Flight attendants undergo training, undergo skills-building, undergo ordeals with exceptionally rough flights and even more exceptionally rough passengers. They are not in flights to pretend, they are in flights to attend. That is why they are called flight attendants.

What Fasap wants is merely the same retirement terms as the ground crew and the pilots. It does even better, which is to propose that retirement be based on years of service—counting pregnancies—and not age. Other unions would criticize Fasap for being too restrained. PAL is accusing it of being too out of its mind.

Well, truth has a way of coming out, these days more than others. Quite simply, the flight attendants’ notice of strike serves notice:

PAL is not Pegasus, and flight attendants are not GROs.

====

Key people

Lucio C. Tan (Chairman and CEO)

Harry C. Tan (Vice-Chairman)

In PAL, life ends at 40

2010-09-12T04:24:00.000+01:00

http://www.abs-cbnnews.com/video/business/09/11/10/pal-life-ends-40

First-timers ang bansag sa kanila ng unyon sa Philippine Airlines (PAL) sa mga Flight Attendants and Stewards' Association of the Philippines (FASAP).

Ngayon lamang sasali sa labor dispute sa pagitan ng unyon at ng PAL management.

Karamihan sa flight attendants ay nagsimula noong 2007.

Sina Louise Navarro at Hanina Han, mga dating cabin crew ng PAL ang mga magulang.

Bata pa sila, pinangarap nang maging flight attendants.

"Baby pa lang. I was practicing, both of us, pretending to be FAs in the house",ani Navarro.

"I don’t have any plans of applying to other airlines because I’m so proud working with Philippine Airlines",pahayag naman ni Hanina.

Ang masaklap dahil sa tinatawag nilang gender discrimination, unti-unti umanong pinapatay ng PAL ang kanilang career.

Ipinaglalaban nila rito na dapat ay amyemdahan ang itinakdang retirement age na 40 batay sa collective bargaining agreement.

Bukod sa retirement age, isyu rin nila ang hindi pagkamit ng minimum wage.

Matatandaan na tumatanggap lamang ng basic pay ang bawat flight attendant ng P8,600, na mababa sa minimum wage.

"Many say that life beings at 40. In PAL it ends at 40 years old",pahayag ni Navarro sa media.

Kaya sa itinakdang strike ng flight attendants sa katapusan ng Oktubre o unang linggo ng Nobyembre, 100% daaw ang sasali.

Sa panig naman ng PAL, nanatili silang tapat sa kanilang negosasyon sa FASAP.

Hinimok nila ang mga miyembro na makipag-negosasyon muli at dahil natanggap na ng labor department ang notice of strike, mahigit isang buwan pa ang cool off period.

Ayon naman sa labor department, batay sa kanilang datos nitong taon lamang, aabot na sa 100 ang natatanggap nilang notice of strike mula sa mga kompanya sa National Capital Region.

Susubukan nilang maplantsa ang mga labor dispute na ito para hindi na humantong sa tigil-trabaho. - Alex Santos, Patrol ng Pilipino

DOTC maps out contingency plans for PAL strike

2010-09-11T15:31:00.000+01:00

DOTC maps out contingency plans for PAL strike

09/11/2010

The Department of Transportation and Communications has started threshing out contingency plans for a possible strike that may cripple flag carrier Philippine Airlines (PAL).

DOTC Secretary Jose de Jesus said Saturday he has been meeting frequently with concerned government agencies to discuss the details of the plans.

We are now drawing up contingency plans to minimize the disruption to PAL operations. Of course you have heard or read about the president making an appeal to PAL and the [flight attendants'] union to try to settle their differences so there will be no disruption in the service of PAL," he said on government-run dzRB radio.

He did not say if the contingency plans are in coordination with PAL management, which said on Friday it is drawing up its own contingency measures should the strike push through.

De Jesus, however, did not give details of the contingency plans for now.

Meanwhile, De Jesus admitted there is still no definite policy on President Benigno Aquino III’s threat to open up Philippine skies to foreign airlines if a strike cripples PAL.

[But] our government, the cabinet and the president, regardless of whatever anybody else thinks what is best for the country, will do what is best for the majority, and not for a few interest groups," he added.

In Malacañang, meanwhile, presidential spokesman Edwin Lacierda said the Palace will still request PAL and the Flight Attendants’ and Stewards’ Association of the Philippines to settle these things," and resolve those concerns peacefully so the riding public will not be inconvenienced." — LBG, GMANews.TV

====

As PAL strike looms, Aquino threatens to open RP skies

JAM SISANTE, GMANews.TV

09/10/2010

President Benigno Simeon "Noynoy" Aquino III on Friday renewed his threat to open Philippine skies to other airlines if the country's flag carrier, Philippine Airlines (PAL), fails to resolve its row with its flight attendants.

In an ambush interview after a Navy counter-terror demo in Cavite, Aquino said the policy review about opening Philippine skies is now being "fast-tracked."

"The open skies policy, the review is bring fast-tracked and if it is necessary we will do it to minimize disruption to the riding public," Aquino said.

Aquino made the statement a day after the Flight Attendants and Stewards Association of the Philippines (FASAP) filed a notice of strike at the Department of Labor and Employment (DOLE). According to FASAP president Bob Anduiza, their strike may start either late October or November.

====

PALEA has been opposing the planned massive layoff and outsourcing of PAL's core functions such as passenger handling, ramp and cargo handling and customer care units to third party service providers.

PM chairman and former labor partylist Rep. Renato Magtubo said that the plan would affect the job security of at least 2,600 employees who are intended to become contractual workers.

Sensing a looming strike scenario in PAL, Magtubo urged the Aquino government to make an advance crisis management plan on this issue to avoid repeating a major disorder that attended the recent hostage crisis in Manila.

"This is definitely bigger than the recent hostage crisis as it involves thousands of workers facing job loss, discrimination, and deteriorating working conditions in PAL," said Magtubo in a statement furnished to The FREEMAN.

The labor leader said the proper way of state intervention on this problem is to prevent PAL from enforcing its illegal, anti-labor and discriminatory policies such as the planned contractualization of its ground employees and the forced early retirement plan for its female cabin crews.

Magtubo further said the FASAP and PALEA have the support of almost all the organized labor groups in the country as well as other advocacy groups that are strongly opposed to contractualization and discrimination in the labor sector.

PAL's flight crew union filed a notice of strike the other day citing the management's bad faith in negotiations as their new collective bargaining agreement already dragged for three years.

FASAP, on the other hand, is opposing PAL's plan to have its female cabin crews retire upon reaching 40 years old. (FREEMAN)

====

CEBU, Philippines ~ The management of flag carrier Philippine Airlines yesterday assured the riding public of continued and unhampered service despite a notice of strike filed by its cabin crew union.

"PAL's operations remain normal and all flights are operating as scheduled. There is no immediate work stoppage," PAL spokesperson Cielo Villaluna said in a state-ment.

However, PAL said the notice of strike filed by the Flight Attendants' and Stewards' Association of the Philippines (FASAP) is untimely as it would scare away tour-ists and can cause further damage to the flag carrier's fragile finances.

====

Taipan loses control of Fortune Tobacco. PAL to go on strike. Which company is next?

PAL flight attendants file notice of strike

2010-09-10T06:46:00.001+01:00

PAL flight attendants file notice of strike

abs-cbnNEWS.com

Posted at 09/09/2010 12:03 PM

MANILA, Philippines - The Flight Attendants and Stewards Association of the Philippines (FASAP) filed a notice of strike with the Department of Labor and Employment on Thursday.

FASAP Vice-President Andy Ortega said the group's 1,600 members are expected to join the strike.

The notice of strike was filed after FASAP failed to reach a compromise agreement with Philippine Airlines' management during mediation talks at the National Conciliation and Mediation Board last August 9.

FASAP withdrew from the talks after PAL refused to change its policies on mandatory retirement age and on maternity and pregnancy leaves.

Labor Secretary Rosalinda Baldoz earlier said that after a notice of strike is filed, it will take 30 days for a cooling off period to still look for a settlement.

"Once we go on strike, no flight will take off," said Bob Anduiza, president of FASAP.

"This will ground PAL's entire operations," he told a news conference.

PAL spokeswoman Cielo Villaluna appealed to the union to reconsider and return to the negotiating table.

"This will affect Philippine tourism and our financial position," Villaluna said in a radio interview, noting that the country's tourism sector has already taken a blow from the August 23 Manila hostage crisis.

But contrary to FASAP's claim, Villaluna said PAL's flights will not be disrupted if the strike pushes through. She said they are ready for contingencies.

The cabin staff are seeking a raise that would put their pay on par with that offered by foreign carriers. They are also demanding paid maternity leave and an end to a company policy that forces female attendants to retire at the age of 40.

There was no immediate comment from the labor department.

The planned strike is the latest in a string of labor problems to hit the national flag-carrier. Last month, 25 pilots and first officers of PAL's short-haul aircraft suddenly quit for higher paying jobs abroad, forcing the abrupt cancellation of several flights. With additional report by Agence France Presse

However, Anduiza said since 2000, they have been trying to raise the retirement age of both male and female flight attendants to 60 years old.

"PAL however would always insist on the 40, 45, and 55 years old retirement ages," he said in an August 25 article on the FASAP website.

"What PAL is not saying is they want younger and pretty flight attendants because of the outmoded stereotyping of treating them as sex objects. It is plain sexism and age discrimination. It's the 'beer house' mentality of lusting for young and pretty girls as cocktail waitresses," he added. –VVP, GMANews.TV

PAL flight attendants to stage strike vs age discrimination09/09/2010 11:58 AM

Share36 The flight attendants of flag carrier Philippine Airlines (PAL) filed a notice of strike at the Department of Labor and Employment (DOLE) on Thursday to protest what they called "age discrimination."

The Flight Attendants and Stewards Association of the Philippines (FASAP) announced their planned strike at a press conference in Pasay City before proceeding to the DOLE office to file the notice of strike.'

According to a report of dzXL radio, the placards at the FASAP press conference venue read "100 percent strike" and "No to age ... discrimination."

"Pag sinunod namin we're looking at end of October hanggang November ... may karapatan kaming magwelga, ie-exercise namin ito," FASAP president Bob Anduiza said in an interview on dzXL radio.

(If we follow procedures, we expect the strike to last end-October until November... We have a right to strike, and we will exercise it)

Anduiza said they will announce the actual date of the strike soon.

PAL spokeswoman Cielo Villaluna, however, appealed to the FASAP not to push through with the strike, which she called as "untimely."

Villaluna instead urged the attendants to return to the negotiation table.

From the Taipan who charges others with slavery: Earlier, PAL management has threatened to file charges in court against the pilots who resigned, citing “breach of contract” and “debts” owed them for the cost of their aviation school training. Labor secretary Rosalinda Baldoz has echoed PAL management’s denial that the pilots’ mass resignation had nothing to do with the labor disputes in PAL. Baldoz has also suggested a longer notice, which is dubbed as a “slavery bond” in other countries, before pilots can leave PAL for overseas jobs.

***

Low Salary

Per aviation industry standards, PAL pilots are given “lower salaries” than their counterparts in other airlines, according to pilots interviewed by Bulatlat but who requested anonymity, citing a gag order by management, among others.

But more than the salary, the resentment among the pilots and first officers is rooted in the way the company treated them. A co-pilot revealed that the mass resignation began with the forced resignation of 11 co-pilots who earlier refused to be transferred to Air Philippines, a budget airline also owned by business tycoon Lucio Tan.

***

In 2008, tinanggal ng Taipan ang kanyang kapatid aka si Mr. Management sa PAL at pinasok niya si Miss Management.

***

In 2008, PAL owner took out brother aka Mr. Management and replaced him with Miss Management.

SC: Lucio Tan's argument on NAIA-3 flawed

2010-09-08T06:22:00.001+01:00

Written by Aries Rufo
Monday, 21 April 2008

The Supreme Court (SC) has dismissed for being “substantially and procedurally flawed” bordering on “absurdity” the petition of the Lucio Tan-led Asia Emerging Dragon Corp. (AEDC) to operate the mothballed Ninoy Aquino International Airport Terminal 3 (NAIA-3).

In a 62-page en banc decision penned by Associate Justice Minita Chico-Nazario, the tribunal junked for lack of merit Tan’s move to compel the Department of Transportation and Communication and the Manila International Airport Authority to award the NAIA-3 to AEDC.

The decision said the arguments of AEDC that it has the automatic right to operate the terminal on the sole ground that it is the original proponent “is substantially and procedurally flawed” as the rights and privileges of an original proponent to an unsolicited project proposal are never meant to be absolute.

"Otherwise, the original proponent can hold the government hostage and secure the award of the infrastructure project based solely on the fact that it was the first to submit a proposal. The absurdity of such a situation becomes even more apparent when considering that the proposal is unsolicited by the government," the SC ruled.

(Since at the onset, Lucio Tan’s bid on NAIA 3 had been known as that of a crook’s, absurd to the peril of the country’s economy. The dissenting justices did not see what we saw? Money surely talked to these! Look, this AEDC was initially composed of Henry Sy, John Gokongwei, Alfonso Yuchengco, Andrew Gotianun and this tax cheating bogus philanthropist – Lucio Tan. Why did they all abandon him to be left alone? You ask them. They will tell you that they could not stomach his evil schemes!)

LUCIO TAN'S STRONG INFLUENCE IN MEDIA

2010-09-07T00:02:00.001+01:00

ISN'T GMA GETTING INSANE? HERE WE ARE WALLOWING IN GARGANTUAN BUDGETARY DEFICIT, YET SHE HAS THE TEMERITY TO GIVE THE ORDER OF LAKANDULA AWARD TO THE NUMBER ONE TAX EVADER IN OUR COUNTRY, LUCIO TAN. NO DOUBT, HIS TENTACLES REMAIN HOOKED WITH THE POWERS THAT BE THRU HIS BROTHER, HARRY TAN. ...P-NOY's PLATFORM IN GOING AFTER ECONOMIC SABOTEURS & GRAFTERS GAINS GROUND BY CUTTING OFF TAN's TENTACLES FOR GOOD.!!!!

LUCIO TAN'S STRONG INFLUENCE IN MEDIA:

I WAS SCHEDULED TO BE FEATURED IN ABS-CBN 6:00 PM NEWS UNDER "MISSION EXPOSE" REGARDING THE MANIPULATION OF TAN'S P338 MILLION TAX CASE BY THE BIR LED BY COMMISSIONER JOSE ONG. HOWEVER, IT WAS SUDDENDLY CANCELLED WHEN THE NEWS STAFFER, MARITESS SALVIEJO, INFORMED ME THAT NEWSCASTER, NOLI DE CASTRO,(now Vice President of the country), PUT IT OFF FOR THE REASON THAT THE CASE WAS ALREADY INVESTIGATED BY THE SENATE BLUE RIBBON COMMITTEE. I BELIEVE THAT THE REAL REASON WAS THAT ABS-CBN WAS APPREHENSIVE THAT TAN'S COMPANIES MIGHT PULL OUT ITS MULTI-MILLION AD PLACEMENTS WITH THE STATION (the PCIJ magazine story about tan's hold in media backed up my theory).

Elpidio Que RT @gmanewstv Graft court admits evidence vs Tan in ill-gotten wealth case

2010-08-29T04:30:00.000+01:00

Elpidio Que RT @gmanewstv Graft court admits evidence vs Tan in ill-gotten wealth case - Business - GMANews.TV. http://bit.ly/bggwlV

This is a good development. P-Noy should have Atty. Catalino Generillo, who was sacked by Gloria Arroyo's corrupt government when he was becoming successful in nailing down the subject tax evader, reverted back to handle the case. I believe he unearthed a document at the National Archives showing Tan et al's signatur...es in the 60/40 sharing agreement with the late Ilocano president. Madam Imelda, now a congresswoman, should cause herself to take the witness stand for the government. That way, she would be appreciated by the people as bent on bring this ingrate tax evader to the bar of justice so as to redeem in a significant way their tarnished name. Per Ms. Solita Monsod's estimate based on the report of Global Business Monitor that she checked, between P220 billion and P300 billion is due for recovery by a non-corrupt government in the case. That would be a big amount for the Filipino people courtesy of the Marcoses.

Our "Kung Walang corrupt, walang mahirap" landslide president should not lose any moment in running after this money stolen from the impoverished Filipinos.

Only some months ago, this vile economic saboteur who speaks Pilipino with twisted tongue for no one to understand, had his and FM's (with 60% share per said civil case) Fortune Tobacco Corp. (FTC) merged with Philip Morris Philippines, Inc. (PMPI). What for? He must be feeling now that his world is getting smaller everyday, that the world seems no longer rotates around him, except probably to the likes of the BIR. Re said merger, FTC had then before which no less than 70% share of the cigarette market, while PMPI had no more than 25%. The sharing between them is 49/51 in favor of the latter. Without logic? As said by an insider about the matter, "Pinera iyon. Sa katakawan ni Lucio Tan, pinera iyon. Next year, 10% na lang iyan." And his Northern Tobacco Redrying Corporation in Vigan is said to have changed hands totally already. It is said to be in the hands now of PMPI, when this interest of Tan is one of those I brought up in my case against Tan in the August 4, 2008 session of the Vigan City Council, per earnest invitation of the "honorables" that had not been paying the tobacco tax since the inception of the city ordinance in the early 1970's. These "honorables" should also be held liable per P-Noy's "Kung walang corrupt, walang mahirap" battle cry. They did nothing, like the concerned government officials whom I informed duly about my said case, apprentlly corrupted after some closed door meetings between some "honorables" and Tan's ilk happened in the corridor of City Hall.

Yes, our landslide President should think all things which this evil tax evader, labor oppressor and cheater anfd farmer exploiter might do so as the government would not be able to recover the bulk of the Filipino money he has stolen and stashed in other kingdoms. Shackle him now together with his "families" and ilks who are with him as a bunch of as thick as thieves? Only recently, Sec. Cesar Purisima said that his DOF "eyed" of making smuggling and tax evasion in the threshold of P50 million a crime of plunder, which has life time imprisonment as sentence. This plan should not stay "eyed" any longer. This "eyed" should be converted into action soonest.

Union accuses PAL of ‘beerhouse mentality’

2010-08-27T06:40:00.000+01:00

http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20100826-288812/Union-accuses-PAL-of-beerhouse-mentality

MANILA, Philippine - The union of flight attendants and stewards of Philippine Airlines Wednesday accused the national flag carrier’s management of having a beerhouse mentality in seeking to retire flight attendants when they turn 40 or 45 years old.

Flight Attendants and Stewards Association of the Philippines (FASAP) president Bob Anduiza said PAL wanted to retire its attendants earlier because it wanted younger and pretty flight attendants.

What PAL is not saying is they want younger and pretty flight attendants because of the outmoded stereotyping of treating them as sex objects. It is plain sexism and age discrimination, Anduiza said in a statement.

It’s the ‘beerhouse’ mentality of lusting for young and pretty girls as cocktail waitresses, he added.

But PAL management accused the union of using gutter language.

The union leaders accuse PAL of ‘beerhouse mentality’ and yet, their own statement reveals their true state of mind and exposes their low regard for their colleagues. This is a deplorable ‘below the belt’ tactic that only serves to inflame emotions and drive a wedge between management and its female workers, PAL said in a statement.

Anduiza said other PAL employees, including PAL pilots, whether male or female were allowed to work until 65 years old as long as they are healthy enough to work.

Then, why does PAL insist on retiring its flight attendants at 40 or 45 years old? he said.

Anduiza said PAL president Jaime Bautista’s contention that its retirement policy was approved by the union in its previous collective bargaining agreements (CBAs) was a bankrupt argument.

Collective bargaining agreements, as any decent company knows, expire every five years, with economic renegotiations every three years. Thus, all issues are open and subject to negotiations, Anduiza said.

He said that since the year 2000, FASAP had been proposing to raise the retirement age of its members but PAL would always insist on the 40, 45, and 55 years old retirement ages.

PAL would employ delaying tactics, which causes the CBA negotiations to drag on until the union becomes desperate and settles for its much needed pay increases. PAL management would then promise the union to take up the retirement issues, in the next round of CBA negotiations, Anduiza said.

In its statement, PAL said that both parties are mandated to strictly follow the CBA’s provisions.

It is not as if PAL is forcing its cabin attendants to retire early. These provisions were reached in previous CBAs, PAL said.

‘23 years to build case, 30 minutes to tear it down’

2010-08-25T17:43:00.000+01:00

http://www.malaya.com.ph/08252010/metro5.html

LAWYERS of businessman Lucio Tan took only 30 minutes on Tuesday to complete their presentation of evidence in the forfeiture case filed by the government against Tan’s assets before the Sandiganbayan Fifth Division.

Estelito Mendoza, lead counsel for Tan, did not present the testimony of any witness saying all they needed to prove in court was the fact that Tan did not use even a single centavo of public funds in building up his businesses.

Mendoza was assisted by Atty. Orlando Santiago.

Tan’s lawyers had their documentary evidence pre-marked before the clerk of court last month to speed up proceedings and simply submitted a formal offer of exhibits during the hearing yesterday morning.

"Government lawyers took 23 years building their case but in the end they proved nothing. Today as you see, we needed less than 30 minutes. The evidence we presented would show that the shares of stocks in all the defendant companies were paid for by Mr. Tan from his own pockets. No public fund was involved. We also included documents in support of our counter-claim, although we really have no intention of collecting from the government," Mendoza told reporters.

The Presidential Commission on Good Government is claiming 60 percent of Tan’s holdings in his companies, including Fortune Tobacco Corp., Asia Brewery, Allied Banking Corp., Foremost Farms, Himmel Industries, Grandspan Development Corp., Silangan Holdings, Dominium Realty and Construction Corp. and Shareholdings Inc. in behalf of the state.

In its complaint, the PCGG alleged that Tan was simply holding the disputed assets in trust for former President Ferdinand Marcos.

After filing the case in July 1987, the PCGG seized control of Tan’s companies and continued to do so until 2006 when the Sandiganbayan nullified the writs of sequestration on Allied Banking Corp., Fortune Tobacco., Foremost Farms and Shareholdings Inc.

The court ruled the writs had no basis because there was no prima facie proof that any of Tan’s assets were ill-gotten.

Mendoza reiterated Tan’s appeal to the court to resolve the case speedily, noting that it has been pending for more than two decades.

"I shall not get tired of pointing out that this case was initiated in 1987 – 23 years ago. It has caused tremendous damage to the defendants," he pointed out.

Assistant solicitor general Mauricia Dinopol had tried to postpone the defense presentation of evidence. She asked the court’s permission to present the testimony of additional witnesses to respond to objections being raised by the defendants against government exhibits. Among the names she mentioned were former Budget Minister Jaime Laya, and banker Joselito Yujuico whose family used to own Genbank, the forerunner of Allied Bank.

She said they are also hoping to present former First Lady Imelda Marcos with whom they are still negotiating her possible testimony.

Mendoza, however, opposed the deferment, saying that government had been given every opportunity to build its case until the court ordered the termination of its presentation in April 2009.

Associate Justice Roland Jurado, Fifth Division chairman, after consultation with the two other members of the bench, ruled to allow Tan to proceed with his presentation of evidence even as the court agreed to consider the government’s motion. – Peter J.G. Tabingo

Graft court admits evidence vs Tan in ill-gotten wealth case

2010-08-24T07:57:00.000+01:00

http://www.gmanews.tv/story/199226/graft-court-admits-evidence-vs-tan-in-ill-gotten-wealth-case

All evidence submitted by government lawyers in a forfeiture case against the assets of businessman Lucio Tan were admitted by the Sandiganbayan Fifth Division.

The graft court in a five-page resolution issued on August 2 overruled all objections raised by Tan, his companies, his estranged-brother Mariano Tanenglian, and the Marcos family concerning the various exhibits.

“After due consideration of the arguments as well as the position of the plaintiff and the defendants, the Court resolves to admit all the exhibits offered by the plaintiff, over the objections of the defendants, …subject to the Court’s final evaluation and appreciation of the purpose, materiality, relevancy and probative value of the exhibits in relation to the issues involved in this case," the court declared.

Among the testimonies admitted by the court were the deposition of banker Rolando Gapud and testimonies given on the witness stand by Sen. Ferdinand ‘Bongbong’ Marcos Jr. and former PCGG chairman Jovito Salonga.

His father, Senator Marcos said, advised him to study Tan’s businesses so the young Marcos could personally handle their holdings in those businesses.

In his testimony, Salonga testified that Tan offered P500 million to settle the case out of court in 1986 but then President Corazon C. Aquino turned down the offer.

The defense will present its own evidence at 8:30 a.m. Tuesday – more than 23 years after the complaint was filed.

The court compelled government lawyers to conclude their presentation on Feb. 12 after repeatedly failing to present witnesses, including former First Lady Imelda Marcos whose testimonies were supposedly crucial to the state’s case.

Civil Case No. 0005 was originally filed in July 1987 and had since been amended twice, the last on Sept. 5, 1991.

The State is entitled to recover 60 percent of Tan’s holdings in companies the business tycoon supposedly held in trust for former President Ferdinand Marcos, according to the Presidential Commission on Good Government. The companies include Fortune Tobacco Corp., Asia Brewery Inc., Allied Banking Corp., Foremost Farms, Himmel Industries Inc., Grandspan Development Corp., Silangan Holdings Inc., Dominium Realty and Construction Corp., and Shareholdings Inc.

Marcos' holdings in Tan’s companies were illegally acquired by the former strongman using government funds, the PCGG alleged.

The Marcos family also staked its claim on the same chunk of Tan’s assets asserting that the late President Marcos obtained those assets by legitimate means.

In a 130-page comment filed through lawyer Estelito Mendoza on May 10, Tan objected to the admission of government’s documentary exhibits on grounds that most of these were photocopies and that the originals were not presented for examination by the parties involved.

Mendoza argued that a single sheet of the almost 300 documents marked by lawyers of the PCGG and the Office of the Solicitor General supports the government’s allegation that the disputed assets formerly belonged to it.

Aquino: open skies hastened if PAL row unresolved

2010-08-19T00:09:00.001+01:00

http://www.abs-cbnnews.com/business/08/18/10/aquino-govt-hasten-open-skies-if-pal-row-cripples-service

MANILA, Philippines - President Benigno Aquino III said on Wednesday the government will hasten moves to adopt an open skies policy if operations of flag carrier Philippine Airlines (PAL) are crippled by a strike.

Aquino said that while he understands the issues of PAL management and its labor unions, the government will prioritize the interests of the riding public which will be inconvenienced by the disruption of a critical service.

"I am appealing to both sides to think of future issues. If effectively they fail to live up to their obligations, the government will be forced to adopt a policy that will side with the greater population. It will have to be the riding public rather than just the interest of one corporation," Aquino said in a press conference in Malacañang.

Aquino said that the government could adopt either a total or partial open skies policy if PAL is unable to fulfill its obligations.

He said that there are other airlines that will make up for the slack if the flag carrier won't be able to resolve its row with the unions.

The Flight Attendants and Stewards Association of the Philippines (FASAP) confirmed on Wednesday its plan to hold a strike after talks with PAL bogged down.

Aside from FASAP, 25 pilots of PAL have resigned without complying with the 6-month notice, while the PAL Employees Association is also contesting the airline's move to outsource the functions of at least 3 key departments that would result in the mass layoff of some 3,000 employees.

Bob Anduiza, president of FASAP said the refusal of PAL management to scrap its discriminatory retirement policy forced the union to resort to a strike.

"For the past 10 months, we have been throwing this issue back and forth and nothing has happened. All we got are promises," Anduiza told abs-cbnNews.com.

He said FASAP withdrew from the preventive mediation talks at the National Conciliation and Mediation Board (NCMB) of the Department of Labor and Employment (DOLE) on Tuesday after confirming that PAL did not want to table for discussion the union's demand to lift the mandatory retirement age of 40.

"They (PAL management) did not even want to discuss the issue, and since talks were going, nowhere we decided to pursue the strike option," he said.

Anduiza said majority of their 1,600 members are in favor of a strike.

"We are confident that we can get the votes we need to file a notice of strike so that these problems will finally end," he said.

Under Philippine law, unions must get a majority vote from members to stage a strike, and then notify the government before any work stoppage.

In a statement on Tuesday, PAL said the talks failed to resolve the labor row.

PAL said it had offered a package of P80 million to improve cabin crew salaries.

But FASAP rejected the offer for being too small, and said most of the money would only cover unpaid salaries the company owed them.

PAL also wants to exclude the early retirement issue from the current mediation process, saying it should be tackled in a new collective bargaining agreement for the 5 years to 2015.

"They keep on throwing information to muddle the issue. For years, management promised it would sit down with the union to discuss its demand to lift the mandatory retirement age even before the current CBA lapses, but management always found a way to put it off. This time, we don't want anymore delays, that issue has to be fixed now," said Anduiza.

He said that PAL cannot even explain to the public why it insists on retiring flight attendants at such an early age.

"PAL is also unfairly using this issue as leverage and bargaining chip to get difficult work-rule changes from the flight attendants, and make them work more for less pay," said Anduiza.

He said that the airline's policy on pregnancy and maternity leaves is not only discriminatory, but unlawful as well.

“Flight attendants who get pregnant are placed on prolonged leave without pay, and this period is deducted from her years of service. It is the same treatment imposed for erring employees who are penalized with suspension.”

Worse, he said, even while on maternity leave, which is mandated by law, PAL deducts the 60-day maternity leave from the flight attendants' years of service.

Strike won't affect operations: PAL

2010-08-19T00:08:00.000+01:00

http://www.sunstar.com.ph/network/strike-wont-affect-operations-pal-330-pm

MANILA -- The management of the country's flag carrier, Philippine Airlines (PAL), vowed Sunday to do its best to ensure that the strike its employees are planning to stage will not affect its operations.

Members of the Flight Attendants and Stewards Association of the Philippines and the Philippine Airlines Employees Union are planning to stage in the next two weeks a strike, said PAL president Jaime Bautista.

He said PAL already received the notice of strike, but the company will make arrangements to ensure that the passengers are not affected.

Bautista said PAL will use its administrative staff in case of strike, and will ask other airlines to serve some of its routes.

Bautista also clarified that they are not planning to employ foreign pilots contrary to reports, although there were German pilots who showed interest in flying with PAL.

"There are foreign pilots who are interested in flying with PAL but it does not necessarily mean that we are going to hire them," he said.

He said the foreign pilots just wanted to fly with PAL for them to gain more flying experience while they are waiting to be called by a German carrier.

Bautista is confident the airline can resolve the problem it is experiencing right now. He said they are still coping up with the flights that were reduced due to resignation of some of its pilots.

"In a few months, we should be back to normal," he said, citing there are enough contingency measures to ensure PAL's normal operations. (Sunnex)

PAL increases fares in 8 routes

2010-08-12T21:47:00.002+01:00

http://www.manilastandardtoday.com/insideNation.htm?f=2010/august/12/nation1.isx&d=2010/august/12

The Philippine Airlines has obtained the government’s approval to raise its fare in its eight regional routes including Bangkok, Singapore and Hong Kong amid the rising cost of jet fuel.

The flag carrier will raise its fuel surcharge from $35 to $42 on Manila–Bangkok flights effective Aug. 15 until Nov. 14.

“PAL is constrained to increase its fuel surcharge to enable it to partially recover the steady increase in the cost of fuel,” the airline told the Civil Aeronautics Board.

The Lucio Tan-owned airline said it was incurring “under-recovery” of fuel cost amounting to $6.36 per passenger in its Manila-Bangkok route.

It was also allowed to extend until October 12 fuel surcharges it raised from July 13 on its flights to Singapore ($29), Indonesia ($44), Hong Kong ($25), Macau ($19), Xianmen ($24), Shanghai ($44) and Beijing ($44).

For domestic flights, PAL charges P500 to P700 for fuel surcharge.

A fuel surcharge is added to each airline ticket to offset increases in jet fuel prices, which in turn make up an airline’s highest expense after labor, accounting for more than a third of its operating cost per passenger.

PAL said it was spending as much as $30 billion a year on jet fuel.

The carrier is locked in a dispute with a group of pilots and in-flight crew over issues ranging from salary to retirement age to benefits. Its ground employees are also restive over its plan to spin off three non-core units.

PAL has reduced its domestic flights after the resignation of 26 pilots operating its Airbuses.

Meanwhile, foreign carriers Thai Airways and Malaysia Airlines were also allowed to increase their fuel surcharges.

Only Cathay Pacific and Hong Kong Dragon Airlines are bucking the trend and are cutting fuel surcharge.

Fuel surcharges will be as follows: Thai Airways’ Manila-Bangkok and Manila-Osaka services, $43; Malaysian Airlines’ Manila-Malaysia service, $30; Dragonair’s Manila-Hong Kong, $64.70; and Cathay Pacific’s Manila-Hong Kong service, $64.70.

Data from the International Air Transport Association showed that the price of jet fuel rose 4.3 percent to $92.40 a barrel on August 6 from a week ago.

The average price of jet fuel so far this year stood at $88.3 a barrel, and that increased the international airlines’ fuel bill by $17 billion.

Jet fuel was most expensive in Latin and Central America at $95.6 a barrel and cheapest in the Middle East and Africa at $90.20 a barrel.

Jet fuel prices in Asia stood at $92.80 a barrel on August 6, up 12.5 percent from a year ago.

PAL ground crew union prepares for strike

2010-08-12T21:47:00.001+01:00

http://newsinfo.inquirer.net/breakingnews/nation/view/20100812-286376/PAL-ground-crew-union-prepares-for-strike

MANILA, Philippines—The Philippine Airlines Employees’ Association (Palea), the ground crew union at Philippine Airlines (PAL), on Thursday said it is prepared to do everything to stop the disputed contracting out of jobs.

“Our job is our life and if necessary we will strike to defend our livelihood for the sake of our families,” said Gerry Rivera, Palea president and Partido ng Manggagawa (PM) vice chairperson.

Palea’s readiness to strike intensifies the labor row at PAL as none of the resigned pilots is returning and the flight attendants’ union is threatening to stop work unless the deadlock in collective bargaining negotiations is resolved.

PAL’s ongoing labor dispute with its ground crew arose out of the plan to contract out jobs that will lead to the layoff of some 3,000 employees. Workers in airport services, in-flight catering, and ticketing reservations will be retrenched and then rehired as contractuals in service providers also owned by Lucio Tan to do the same job for less pay and no job security.

“PAL is faced with a three-front war with its airline pilots, flight crew, and ground personnel because of its drive to demolish job security, replace regular employees with contractual workers, and and the remaining unions in the company,” said Renato Magtubo, PM chairman.

“We are asking the government of P-Noy through Labor Secretary Rosalinda Baldoz to review the policy on contractualization and strengthen protection for job security or else it faces a wave of labor unrest,” explained Renato Magtubo, PM chairperson.

“In factories, shops, and offices contractual workers are working side-by-side with regular employees in doing the same job for less pay, no benefits, and without security of tenure. Contractualization at PAL is simply the tip of the iceberg. We demand that President Aquino make concrete his promise that democracy should work for all by instituting reforms to enhance job security and stop contractualization schemes,” Magtubo said.

The mediation meeting set Thursday arose out of Palea’s pending motion for reconsideration of the former acting labor secretary Romeo Lagman’s “midnight decision” that affirmed PAL management’s prerogative to contract out jobs of ground crew.

“We welcome the preference of Secretary Baldoz to mediate the dispute on job contracting in PAL unlike Lagman who unilaterally issued a midnight decision favoring management. But even as we negotiate in good faith we have to be prepared for all eventualities including the necessity to strike if the planned layoff pushes through,” Rivera said.

Does Lucio Tan want PAL to collapse?

2010-08-12T21:46:00.000+01:00

http://www.manilastandardtoday.com/insideOpinion.htm?f=2010/august/12/emiljurado.isx&d=2010/august/12

I have some good news and bad news.

The good news insofar as Philippine Airlines owner Lucio Tan is concerned is that he’s thinking of collapsing the flag carrier in the wake of its labor woes. There are some 1,600 employees going on strike soon; no wonder Tan is so silent on the PAL problem. He has had enough!

PAL insiders say that Lucio Tan would like to have a lateral transfer of pilots and flight attendants to AirPhil, his budget and express airline which also has a franchise for international flights. The airline management will then have reason to claim redundancy of jobs and thus lay off employees. Neat, huh?

Recall that Air Philippines was formerly owned by businessman William Gatchalian, who sold it to the taipan. At that time with PAL already hemorrhaging because of labor woes, was Tan already thinking of collapsing PAL? Back when Tan bought PAL from government, he told me he didn’t know what he was getting into. Now the taipan, in spite of his successes in his other businesses, like cigaret manufacturing, brewery, banking and real estate development, certainly knows better.

With the PAL going belly-up, what will happen to the many labor problems the flag carrier is facing? What about its P3.6 billion debt in landing fees to government? And what about the fact that the Board of Airline Representatives, which PAL heads, has reneged on the payment of P350 million in overtime and meal charges for Customs, Immigration and Quarantine personnel at the three terminals of the Ninoy Aquino International Airport and at the Mactan International Airports?

Reconsider Strike Threats, PAL Asks Flight Attendants

2010-08-11T19:21:00.001+01:00

http://www.gmanews.tv/story/198266/reconsider-strike-threats-pal-asks-flight-attendants

Philippine Airlines (PAL) management asked its flight attendants to “reconsider" threats about filing a strike notice, officials said on Tuesday after labor talks between the two parties remained deadlocked.

“All peaceful means of resolving differences should be exhausted," the company said in a statement, adding that the airline is sincere in addressing their concerns.

“Let's find a peaceful solution to our internal problems for the sake of the flying public," PAL president and chief operating officer Jaime Bautista said.

Negotiations are still ongoing before the National Conciliation and Mediation Board (NCMB), the statement said.

The NCMB is still the venue by which members of the Flight Attendants’ and Stewards’ Association of the Philippines (FASAP) could air “their grievances," PAL said.

“Threatening to go on strike...would not redound to the public’s interest," it added.

The next meeting between PAL management and FASAP officers is scheduled for August 17 before the NCMB.

PAL hit by global crisis

Since PAL is experiencing financial difficulty, the Lucio Tan-led company can only “offer an P80 million one-time package to FASAP to close their negotiations for the 2005-2010 collective bargaining agreement (CBA)," Bautista said.

The company was hit hard “by the global economic recession and slowdown in travel just like the other airlines around the world," he added.

The offer was made “to show our good faith and sincerity in addressing their concerns."

Bautista also denied reports that management refused to discuss the retirement age issue during the mediation talks held on Monday at the NCMB.

The company was simply asking that the issue be included in the next CBA (2010-2015) which we can commence immediately, said Bautista.

But this was denied by FASAP president Roberto Anduiza.

“FASAP has been negotiating with PAL management in good faith for the last month," Anduiza told GMANews.TV in a phone interview.

“We’ve given them time. But they have yet to come up with a proposal regarding retirement age."

Retirement rule

Under the existing CBA, the compulsory retirement age for male and female flight attendants hired before November 22, 1996 are 60 and 55, respectively. Those hired after November 22, 1996 are 40 for males and 45 for females. Those hired after November 22, 2000 are required to retire at 40 for both genders.

According to Bautista, the first flight crew to be affected by the 40-year-old retirement rule is “still years from now."

“We have enough time to discuss it with no one being adversely affected by the said rule," he said.

A crewmember hired in year 2000 at the age of 22 will only turn 40 in 2018. Those hired in 1996, on the other hand, will only turn 45 by 2019, he said.

But this projection was denied by Anduiza, saying that one flight attendant has already been hit by the provision.

“In the past years, hundreds have left," he said.

“PAL management is in a state of denial," he said. “What it should do is to sit down and deal with its employees fairly."—Robert JA Basilio Jr./JV, GMANews.TV

Lucio Tan is part of our corrupt ecosystem, Romulo Neri told whistle blower Jun Lozada

2010-08-11T07:11:00.003+01:00

http://raissarobles.com/2010/08/07/lucio-tan-is-part-of-our-corrupt-ecosystem-romulo-neri-told-whistle-blower-jun-lozada/

What’s happening now with Philippine Airlines (PAL) is not mere labor trouble. It is actually part of a political power struggle between the Aquino presidency and an entrenched kingmaker, whom the former economic planning agency chief once named as a key player in the Philippines’ corrupt ecosystem.

The nation’s other power players are closely watching who will win. And Filipinos who voted overwhelmingly to stamp out corruption and level the playing field should be closely watching too.

Romulo Neri’s web of corruption theory

The embattled Romulo Neri unwittingly predicted something like this could happen during a secret dinner meeting with whistle blower Rodolfo “Jun” Lozada, Senator Panfilo Lacson, Senator Jamby Madrigal and Angelito Banayo (now the National Food Authority chairman) on December 7, 2007.

Neri was at that time the director-general of the National Economic Development Authority (NEDA).

Details of that secret meeting were later bared by Jun Lozada in his February 18, 2008 testimony before a Senate probe on the allegedly anomalous telecoms broadband deal between the Arroyo government and ZTE Corporation of China.

Cringing, cowering and weeping during the probe that was telecast nationwide, Jun Lozada said that during that meeting, his friend Romulo Neri had called their boss, President Gloria Macapagal-Arroyo, “evil” several times because she was the center of a corrupt political ecosystem that was controlled by a handful of the nation’s oligarchs who influenced and benefited from corruption.

Jun Lozada said Romulo Neri specifically named Philippine Airlines (PAL) owner Lucio Tan as one of those oligarchs in control of the corrupt ecosystem. Romulo Neri even showed a diagram of his web-of-corruption political theory. Lucio Tan was designated in that drawing by the letters “LT”. See the diagram below. (The three other “oligarchs” named were Enrique Razon, chairman and president of International Container Terminal Services, Inc.; a “Tommy” Alcantara and one of the “Aboitizes” (which one, Romulo Neri did not say).

Romulo Neri prepared this diagram to explain his web of
corruption theory. This was submitted to the Senate Blue Ribbon Committee probe
on the NBN-ZTE telecoms deal

On the very day Jun Lozada testified, Romulo Neri suddenly had amnesia . He told reporters he was unsure whether he had called Gloria Arroyo “evil” several times:

I know Jun is very sincere with me and cares for me but I really cannot recall
that statement. I don’t remember. I cannot up to now.

However, the former Asian Institute of Management professor could remember in detail the rest of his dinner lecture.

That’s very little thing to do with ZTE. That meeting was more on the discussing
the political economy. I gave my usual lecture on political economy and to
shorten it I just put one brief framework and I think we all agreed that this is
the nature of the Philippine state and the oligarchic state, the players
concerned.

We had to map the whole players in the political system and of course everybody
has a role to play in the whole system. And my conclusion is that in this whole
system, we are all victims of the whole oligarchic structure of the Philippine
State.

To watch the video of one of Romulo Neri’s ambush interviews at that time, click on this.

Romulo Neri did not deny naming Lucio Tan, Razon, Alcantara and Aboitiz as key players in that corrupt eco system.

Now I myself wonder why Romulo Neri named Lucio Tan.

In an earlier entry I wrote entitled Why does world billionaire Lucio Tan have such a troubled airline? , I provided a timeline of how Lucio Tan broke off the profitable units of PAL to make completely different companies that are now quite profitable to this day, while PAL continues to lose heavily.

My Facebook friend Reyn Barnido reacted to my timeline by pointing out it was incomplete. He said,

So what happened between 2000 and 2010? There is a a full decade gap in the
timeline.

He’s right. This decade covers Gloria Macapagal-Arroyo’s administration. And so I started digging and that was how I rediscovered Romulo Neri and Jun Lozada.

And then I dug some more and found reports saying President Gloria Macapagal-Arroyo dined with tobacco and beer magnate Lucio Tan and shortly afterward, a planned hike on cigarette and beer taxes was reduced, while there was a higher increase in our Value Added Tax (VAT). The justifying argument used then was that a steep rise in tobacco and liquor taxes would harm sales, which would eventually lead to lower tax collection.

In this instance, rather than tax cigarettes and beer owned by Lucio Tan, everyone bore the brunt of higher VAT on basic necessities such as food, medicine, water, electricity.

Romulo Neri proposed solution for sweeping away web of corruption

Before he joined the executive department, Romulo Neri was one of my favorite sources. He headed the Congressional Planning and Budget Office (CPBO). He was always frank in his views and I could always expect choice quotes from him on how the national budget was skewed toward military and anti-insurgency spending at the expense of education and social services.

I was therefore not surprised that he said all that during his “secret” dinner with Jun Lozada and the senators.

He’s very proud of his web-of-corruption theory. On Valentine’s Day, four days before Jun Lozada testified, Romulo Neri told reporters in an ambush interview that “the truth is deeper than what you think.” He said the nation’s problems were quite deep and could not be solved by people power rallies alone because the Philippines was an oligarchic state where in reality, a handful of families and personalities dictated government action.

Today, Romulo Neri is in serious trouble, facing a corruption case that could land him in jail. The charge stemmed from his having told Gloria Macapagal-Arroyo that then Commission on Elections chairman Benjamin Abalos had offered him a hefty bribe –“Sec, my 200 ka dito” – which he interpreted as 200 million pesos.

Neri said in his own testimony before the Senate that Arroyo told him to ignore Abalos’ offer but still go through with the recommendation process for the ZTE project.

The bribe was allegedly for his facilitating NEDA’s approval of ZTE Corporation’s $329-million national broadband network (NBN) contract with the government.

Romulo Neri may be the first Filipino academic to put forth a theory on political economy and become the very example of how this theory actually works.

For me, he made two interesting statements that are very relevant today.

First, Romulo Neri said that replacing Gloria Arroyo as President would not correct the situation since the ecosystem would remain.

Second, he said reforms in the political economy could only be brought about by the President with the help of all sectors of society.

What do you think?

Akbayan asks Congress to probe PAL row

2010-08-10T19:32:00.000+01:00

http://www.abs-cbnnews.com/nation/08/10/10/akbayan-asks-congress-probe-pal-row

MANILA, Philippines - Akbayan Party-list Rep. Walden Bello on Tuesday called on his colleagues at the House of Representatives to investigate the labor woes of Philippine Airlines (PAL) flight attendants.

In a press conference, the militant lawmaker said the Lower House should also summon PAL owner and chairman Lucio Tan to shed light on the labor complaints.

The 1,600-strong Flight Attendants’ and Stewards’ Association of the Philippines (FASAP) is threatening a massive work stoppage after talks with PAL management collapsed on Monday.

FASAP said it refused to accept the P80 million one-time package offered by the management, saying it is not enough to cover the last 3 years’ wage distortions and other insufficient benefits.

Despite these repeated warnings, PAL President Jaime Bautista said he is confident that the government could stem any possible strikes if the government assumes jurisdiction.

In cases of national interest, the President or Labor Secretary “assumes jurisdiction” and can order employees to return to work.

Bello expressed concern over Bautista’s statements and hopes Labor Secretary Rosalinda Baldoz will be impartial in addressing PAL’s labor problems.

FASAP also voiced out the same concerns. Union president Bob Anduiza said the government should be able to wring from the management a win-win solution.

Gov't will be impartial

In a separate press conference, Malacanang assured the stakeholders that the Department of Labor and Employment will “only favor what is right and just.”

Presidential Spokesman Edwin Lacierda said it is early to assume that the government already has to take jurisdiction over the case.

The government is still monitoring developments in the negotiations, he said.

Meanwhile, former Akbayan Rep. Risa Hontiveros also warned Tan that the company could be liable if it insists on pursuing the compulsory retirement policy.

Under the existing CBA, male and female flight attendants who were hired before November 1996 would be retired once they reach 60 and 55 years old, respectively, and those hired from 1996 and beyond would be retired at age 45 for both males and females. Those hired after November 2000, on the other hand, will be retired by the age of 40 for both males and females.

FASAP is seeking to quash this policy, quoting laws prescribing the retirement age at 60.

Hontiveros warned Tan for violating the Magna Carta on Women. She said PAL’s policy is obviously a form of gender discrimination.

Lucio Tan himself has been very silent over "The PAL" problem...

2010-08-10T19:26:00.000+01:00

http://www.manilastandardtoday.com/insideOpinion.htm?f=2010/august/10/emiljurado.isx&d=2010/august/10

The Philippine Airlines labor problem has become a big challenge for the Aquino administration. No less than 25 pilot-captains have resigned and some 1,200 other pilots, flight attendants and stewards have threatened to strike because of low pay and lack of job security.

The mistake of the administration was to get involved with no less than three Cabinet secretaries—Department of Transportation and Communication Secretary Jose de Jesus, Labor Secretary Rosalinda Baldoz and Justice Secretary Leila de Lima—trying to broker a compromise agreement between management and the employees.

My gulay, there were even talks that government should take over PAL because the cancellation of flights was affecting tourism and investments!

What a bad idea. The administration is already scrounging for cash. Moreover, don’t we all know that government is the worst manager of all?

PAL itself is also committing mistakes by threatening to file charges against the resigned pilots. You don’t go to a negotiating table threatening people.

Personally, I believe that under our capitalistic system, if a business isn’t making money and can no longer work for the best interests of the country, it should fold up. PAL isn’t the only airline. Certainly, the vacuum it would leave will be filled sooner than we think.

Considering that Lucio Tan himself has been very silent over this problem, I believe that he has had it with PAL. That’s not his only line of business. He has other interests that are making money.

PAL strike looms as deadlock continues

2010-08-10T19:25:00.000+01:00

http://www.abs-cbnnews.com/business/08/09/10/fasap-refuses-p80-million-package-pal-warns-anew-strikes

MANILA, Philippines (1st UPDATE) - A repeat of the mid-90’s strike that crippled the operations of flag carrier Philippine Airlines (PAL) looms again.

This as the labor dispute between management and its employees over the contractualization of its personnel rests on an August 12 conciliation meeting with Labor Secretary Rosalinda Baldoz.

PAL Employees Association's (PALEA) Bong Palad told media at the Lower House on Monday about the possibility of a strike.

“Sasabihin namin sa inyo 'pag walang nangyari sa August 12. Kung alisin nila iyong 2,604 employees, kailangan pa ba strike?"

Palad said they may have the numbers to again cripple the airline’s operations. “We hope so, we have an alliance with FASAP [Flight Attendants’ and Stewards’ Association of the Philippines] and pilots,” he added.

FASAP is the Flight Attendants and Stewards Association of the Philippines.

Palad belied management claims that the airline is losing money, even as he maintained the flag carrier is still lording over the local airline industry.

Palad finds it questionable that the company is only announcing its losses now that they have been without a Collective Bargaining Agreement (CBA) with employees for 10 years due to a moratorium sought by PAL chair Lucio Tan when the company went into receivership.

“Bakit iyong 10 taon na nakabayad ng utang, wala kayong sinasabing nalugi? Ang PAL kaiba sa ibang airlines. Pasahero ng PAL OFW [overseas Filipino worker]. There were 16 million, ilan ang umuuwi doon? Kaya nga may foreign carrier kasi di kayang isakay ng PAL lahat,” he said.

PAL employees have complained that many of them have gotten letters of termination along with employment offers in spin-off companies that will handle some of the company’s airline needs.

FASAP rejects P80-M package

Also on Monday, FASAP refused the P80 million one-time economic package offered by the management of Philippine Airlines (PAL).

Talks at the National Conciliation and Mediation Board (NCMB) again broke down on Monday morning as the 1,600-strong union remains adamant that the management has not been giving them their rightful claim.

For the first time, the PAL management offered something “in black and white…but it is not enough,” FASAP Vice President Andy Ortega said in a phone interview.

In a separate press release, PAL explained the P80 million package will settle and close economic issues in its CBA for the period 2005 to 2010.

This covers wage distortions and rice subsidies.

PAL said this is the only amount it could give the flight attendants because of its current financial condition.

“We hope FASAP members will understand PAL's predicament and accept the offer. While we recognize their desire for higher compensation, PAL's current financial situation will not allow it to offer more,” PAL President Jaime Bautista said.

Ortega, however, noted PAL had given their counterparts in the PALEA a much better option.

“They were given 5% to 10% [salary increase]. We could start discussing on that,” he said.

Ortega also noted PAL is still remiss on its counter-offer with regard to its compulsory retirement policy.

“We want the retirement age [for all] to be 60 years old, no more, no less,” Ortega said.

Ortega said FASAP representatives will again meet with PAL management on Tuesday.

If the management does not provide a better counter-offer by Tuesday, the union will make good its threat that members will go on strike, Ortega said.

In an interview with ANC, PAL spokesman Cielo Villaluna said the negotiating table is the best avenue to address their concerns.

She asked FASAP to go slow on its threats considering there is a process involved.

She also warned this would be detrimental not only to their livelihood, but also to the riding public. She said the strikes would definitely cause flight cancellations.

Ortega, however, said “3 years na kami nag-uusap, nag-aantay. Tapos, they’re saying they want more time? That’s unfair.”

Strikers: No retreat until PAL surrenders

2010-08-10T17:27:00.000+01:00

http://www.hartford-hwp.com/archives/54a/165.html

Philippine Daily Inquirer, 23 July 1998

"THE STRIKE will last until the airline closes. Unless PAL changes its position and recalls the retrenched workers, we will not stop the strike."

So warned Alex Barrientos, president of the 8,000-member ground crew union which yesterday went on strike at 3:30 a.m. to demand that the company recall the 5,000 workers who were laid off last month during the strike launched by the pilot's union.

President Estrada appealed to management and striking employees to remain open to an amicable settlement as the labor unrest was harmful to the economy as well as an embarrassment to the country.

Sa buong miyembro ng PAL, lagi nating isipin na hindi lamang ang international at domestic flights kung hindi ang ating ekonomiya ang naaapektuhan ng strike (Let us keep in mind that the economy as a whole is adversely affected by the strike), the President said in an interview with dzRH.

He was scheduled to meet with Lucio Tan (principal stockholder of the now privatized PAL; sg)and later have dinner at 7 last night with Labor Secretary Bienvenido Laguesma and labor leaders, among them officials of the PAL unions--Palea, Airline Pilots Association of the Philippines (Alpap) and Flight Attendants' and Stewards' Association of the Philippines (Fasap).

The President reiterated his willingness to mediate the dispute. He said he was scheduled to meet with Palea last week, but the union representatives failed to make it to Malaca=F1ang.

Members of the Philippine Airlines Employees Association (Palea) include reservation clerks, maintenance crew, caterers, cargo handlers and load controllers, who also service 19 of the 35 international carriers at the Ninoy Aquino International Airport.

PAL said a strike by its ground personnel could force Asia's oldest airline to close down after 57 years of operation.

Palea asked the riding public for utmost understanding, saying that it never wanted to go on strike. Palea is defending not just its survival, we are defending our very lives, the union said in a statement.

PAL, which reported a record P8.08 billion net loss in its fiscal year ending March 1998, said it was unable to make payments on about $2 billion of debt.

This reckless and ill-advised action, like a fatal blow, may ultimately crush Philippine Airlines, the company said in a statement.

By staging this illegal strike, Palea has put in jeopardy any proposed rehabilitation plan for the airline, and, with it, our last hope for survival as well, it added.

The Securities and Exchange Commission has the authority to approve the rehabilitation plan. If it withholds approval because of the labor dispute, the airline would have no option but to close.

SEC Chair Perfecto Yasay expressed concern about the strike's effect on the rehabilitation proposal.

Doubts

Doubts had been aired on whether the President would take up the cudgels for the workers, because of his close ties with tycoon Lucio Tan, PAL's majority owner. Tan was said to be major contributor to Mr. Estrada's campaign.

On the other hand, it was also hoped that the President's relationship with Tan would enable him to convince the tycoon to reach a settlement with the strikers.

In a single day and without any kind of warning, the Lucio Tan PAL management ordered the immediate termination of 5,000 employees literally shattering their lives and their families. Worse it was done in a manner that was patently unjust and inhuman, Palea said.

The airline maintained its downsizing program was necessary for survival.

PAL said it tried to find acceptable solutions to the problem to avert a strike by exhausting all possible means of finding an amicable settlement with the management and the labor department.

Palea said it even met with Tan himself on Tuesday night in a last-ditch effort to avoid a strike. But to our dismay and to the detriment of the entire country which depends on PAL's continued reliability, the Lucio Tan group insists on their hardline position.

Manolo Aquino, PAL executive vice president, said that during a meeting with the union PAL offered to suspend its downsizing program for one month but the union stuck to its demand that employees already retrenched should be re-hired.

Aquino said that was impossible as PAL had cut back its operations by 80 percent since a pilots' 22-day strike last month and had no more positions for the retrenched workers.

He said the strike was illegal because the government's labor department had assumed jurisdiction and had warned labor unions against striking.

Labor Secretary Laguesma has vowed to push for continuing negotiations between PAL and Palea.

Earlier, he issued an order assuming jurisdiction of the dispute in a bid to avert a strike. In the order, Laguesma has asked Palea not to go on strike and for PAL to stop firing employees.

Laguesma clarified that he did not issue a return-to-work order to Palea on July 9. Palea cited Laguesma's alleged bias for PAL as indicated by the reported issuance of the order as one of the grounds for the strike.

June pilots' strike

In June, PAL was embroiled in a crippling pilots' strike that brought the company close to financial ruin.

At the height of the strike, PAL laid off 5,000 of its nearly 14,000 workers.

Palea then threatened to go on strike to demand the reinstatement of the terminated workers but the labor department assumed jurisdiction of the union's dispute with PAL on July 10 and prohibited any work stoppage.

The labor department also ordered the airline to suspend any more layoffs. The union, however, said it would go ahead with the strike plans.

The union filed a second strike notice with the labor department yesterday afternoon charging an illegal lockout, union busting and termination of union officers.

Palea's strike caused some delays in several domestic flights but failed to paralyze the airlines' operations.

As of presstime, regular flights to Tacloban, Cebu, Zamboanga, Cagayan de Oro, and Hong Kong proceeded with minor delays.

PAL said that as of 7 p.m. it was able to operate all its domestic and international flights out of Manila, except for two US-bound flights scheduled to depart later last night.

PAL said it dispatched 19 domestic flights and four flights to three Asian destinations.

Rolly Estabillo, PAL spokesperson, said the support of an overwhelming number of PAL's air and ground employees of management made it possible for the airline to continue its operation.

Estabillo said many rank and file employees crossed the picket line and manned their posts.

The strike was staged even as hundreds of PAL employees petitioned Barrientos to reconsider union plans to go on strike, citing that the airline may collapse.

Aside from asking Barrientos to reconsider the planned strike, the employees expressed support for PAL's rehabilitation. The employees also lamented the interference of non-PAL unions in the airlines' labor dispute.

Officials at Naia's ground handling operations said only a few PAL employees showed up for work and other airlines that use PAL ground crew had prepared contingency plans.

The non-strikers and ground crew from other airlines were expected to be capable of handling the services at the international airport during light traffic in the first half of the day but delays are expected to increase by the much busier afternoon period, according to airport sources.

No support outside Metro

The strike of the Manila-based Palea members did not seem to enjoy much support from their counterparts in the Visayas.

PAL employees on Mactan Island, Cebu, and the cities of Iloilo, Tacloban and Bacolod opted to report for work yesterday.

PAL was able to mount the scheduled flights in Tacloban, Cebu, and Iloilo yesterday although these were delayed by at least two hours.

In Bacolod, one incoming flight and another outgoing flight were cancelled, not because of the strike, but because there were only few passengers.

With the support of its ground personnel, PAL was able to mount, albeit delayed, three incoming and three outgoing flights in Mactan, Cebu; one incoming and outgoing in Bacolod and Tacloban; and two incoming and two outgoing in Iloilo.

Mike Villanueva of Palea Bacolod said that except for the group's spokesman Emilio Garingalao, most of the 32 PAL employees reported for work. But, he added, he expected more Palea members in Bacolod to join the strike in a few days.

Not a single PAL employee in Iloilo and Tacloban cities joined the strike.

Simeon Canton Jr., PAL spokesperson in Cebu, said all 400 retained PAL employees in Mactan Cebu International Airport did not join the strike.

But Clemencio Galindo, Palea board member in Cebu, belied Canton's claim, saying that at least 34 retained PAL workers joined the strike. Some 266 retrenched employees joined the mass action.

Still, he added, he was disappointed that most of the PAL ground personnel in Cebu reported for work.

The indefinite strike came days before Mr. Estrada's first State of the Nation Address and as the Philippines prepares to host an important diplomatic gathering.

The 31st Association of South East Asian Nations (Asean) ministerial meeting opens this week in Manila.

PAL Cuts Provincial Flights

2010-08-08T07:13:00.000+01:00

http://www.abs-cbnnews.com/nation/08/07/10/pal-cuts-provincial-flights

MANILA, Philippines (UPDATED) - Embattled Philippine Airlines (PAL) has scrapped a provincial flight and reduced several others after 25 of its pilots indiscriminately resigned last week.

The flag carrier temporarily scrapped its Cebu-Davao flight, and reduced flights going to and from Manila and Ozamiz, Dipolog, Puerto Princesa and Cebu.

In a statement sent out on Saturday, the flag carrier said the reason for the new flight schedule was the "lean season."

"PAL released today (August 7, 2010) a new flight schedule to further optimize operational efficiency as the travel sector enters the ‘lean season'," the company said.

"The 'lean season' schedule will take effect beginning August 9 up to November 30, 2010," the Lucio Tan-owned airline said.

"There will temporarily be no operation between Cebu and Davao. This route will be reinstated during the peak season," the airline said.

PAL said it had submitted to the the Civil Aeronautics Board (CAB) a "new schedule with reduced frequencies include those going to and from Manila and Ozamiz, Dipolog, Puerto Princesa and Cebu."

"Capacity rationalization is routinely done in anticipation of lower passenger volume, especially tourists, during the rainy months from August to November. It also coincides with the reduced number of PAL pilots who left for jobs abroad," PAL president and chief operating officer (COO) Jaime Bautista said.

Bautista added it was during the "low" season when airlines introduce promotional programs to entice passengers to travel.

"It’s also the time of year when PAL schedules major maintenance checks on the fleet. PAL launched several promos a few weeks back," he said.

The new flight schedule is expected to be published soon in major dailies. It is also available at the PAL website at www.philippineairlines.com. Passengers may also call 855-8888 for inquiries.

PAL announced in a paid advertisement published in several newspapers on Friday that it had 38 flights cancelled from July 29 to August 3 following its dispute with pilots. It said that flights returned to normal on August 4.

Out of its 473 pilots, 25 left without notice for higher paying jobs with other airlines abroad. The flag carrier operates an average of 160 domestic and international flights per day.

Meanwhile, PAL has given its resigned pilots a 48-hour ultimatum to return to work by Monday, August 9. Otherwise, it pursue criminal cases against them for "breach of contract."

Aside from the dispute with the pilots, PAL is also dealing with threats of a work stoppage by its flight attendants.

PAL will hold a dialogue with the Flight Attendants and Stewards Association of the Philippines (FASAP), along with the labor department, on Monday.

FASAP is demanding an increase in wages, among others.

PAL Woes Far From Over After Pilots Snub Meeting

2010-08-07T16:44:00.002+01:00

http://www.abs-cbnnews.com/nation/08/03/10/pal-woes-far-over-after-pilots-snub-meeting

MANILA, Philippines - The labor tiff between the management of Philippine Airlines (PAL) and a number of its pilots who resigned en masse appears far from over, after the pilots snubbed a meeting called by Malacañang aimed at resolving the dispute.

The second round of talks aimed at resolving PAL’s labor row was set at 3 p.m. Tuesday.

Justice Secretary Leila de Lima, Transportation and Communications Secretary Jose "Ping" de Jesus, and Presidential Spokesperson Edwin Lacierda waited for hours at the offices of the Department of Transportation and Communications (DOTC).

But the pilots who resigned over the weekend did not show up. Instead, their representatives attended the meeting to air the pilots' grievances.

They said the pilots left PAL for higher-paying jobs.

"We want them all back. We want them to serve Philippine Airlines if they still want to work with us. But if they really want to resign, we just ask them to respect the terms of our agreements, give us sufficient notice so we can train replacements, and not cancel flights because of lack of pilots," Philippine Airlines president Jaime Bautista said in an interview with ANC’s “Headstart with Karen Davila.”

Malacañang said it is trying 'moral suasion' to resolve the dispute, which has already affected the country's tourism and commerce.

"We don't know for how long this would be... [it is] up to the cabinet officials concerned and the parties involved to resolve this as soon as possible”, Lacierda said.

But the Palace is also anticipating a worst-case scenario, where it has to sanction both parties.

Transport authorities said, if no amicable settlement is reached they may re-allocate PAL’s traffic route flights and revoke the licenses of the pilots who refuse to return to work.

Since Saturday, more than 30 PAL flights have been disrupted because of the labor row.

On Tuesday, three flights to Iloilo, Bacolod, and Cagayan de Oro were rescheduled.

But PAL’s other flights have returned to normal.

The flag carrier said the pilot shortage affected only a small portion of its 160 daily trips, while international flights are not affected.

‘Takeover possible’

Malacañang will again meet with PAL management and representatives of the pilots Wednesday.

But in case PAL’s management fails to reach an agreement with its resigned pilots, Justice Secretary De Lima said government may take over the flag carrier’s operations as a last resort.

De Lima said the government hopes that PAL management and the pilots can resolve their dispute quickly, since the public is feeling the effects of their disagreement.

But De Lima warns if the two sides cannot come to terms, the government may have no choice but to take over the flag carrier.

De Lima said this could be done to protect public interest.

"'Yon na ang aking pinag-aaralan. I will be ready with my recommendations on the options that the government would have in case no amicable settlement is reached today or tomorrow. Kasi urgent itong matter na ito. It's costing a lot of inconvenience to the riding public," De Lima said.

De Lima however stressed a takeover will be the last recourse, this is since regulations can be implemented that will reign in aspects of PAL’s operations.

"So kung merong nag-breach diyan, one will have a recourse against the other," she said.

Legal experts added a government takeover need not mean that the government will inherit PAL’s billions of pesos in debt.

They said it is possible the government will only take over the management and operational details of PAL.

The PAL Employees Association (PALEA) meanwhile supports the pilots who resigned, even if they are involved in their own battle with the PAL management who recently terminated 3,000 of their members after outsourcing some of their operations.

"Reflection na ito.. tungkol sa management... [and their] treatment [towards] its workers," Alnem Pretencio, PALEA vice president, said.

As the labor disputes of PAL continue to mount, the justice department said the next few days are critical as the airline, Asia’s oldest, tries to solve its latest problem that has forced the government to intervene.

PAL's Labor Woes: Then and Now

2010-08-07T16:33:00.002+01:00

http://www.abs-cbnnews.com/insights/08/05/10/pals-labor-woes-then-and-now

Philippine Airlines is no stranger to labor disputes and pilot exodus. But it seems the Aquino administration is. The current high-profile issue of pilots leaving for greener pastures abroad is actually old news.

The 1998 labor issue of PAL easily comes to mind and, wittingly or not, it clouds the way we evaluate the 2010 version. After all, that labor issue 12 years ago has become a landmark retrenchment-related case, and one of the most celebrated in the Philippines. (Read: Retrenching workers? Don’t repeat PAL’s mistake [12] )

It also had a colorful cast: Lucio Tan, one of the country’s richest, and former President Joseph Estrada, who mediated the dispute. But while the interplay of politics and business was a major component then, the bigger factor now is the business, more than the political, environment that PAL is in.

In 1998, PAL dismissed about 5,000 pilots, flight attendants, and other airline employees who went on strike following a series of layoffs. At the time, the strike threatened to paralyze PAL’s operations.

It was a national, not just a mere labor, issue since the strike had an impact on the entire local aviation industry in the country. PAL, then considered the only flag carrier (literally and figuratively), had a virtual monopoly, thanks to decades of being a government-owned airline that shunned competition. While it was eventually privatized, its cozy relationship with the powers-that-be allowed it to remain the only major local airline servicing domestic routes and short- and long-haul destinations abroad.

Fast forward to 2010. The local airline industry has drastically changed after the Ramos-era industry deregulation has taken root. Gokongwei-led Cebu Pacific Air, which transformed into a budget airline in 2004, has already overtaken PAL. Citing figures from the Civil Aviation Board, Cebu Pacific claims that it is now the largest Philippine airline (note small caps in “airline”) after it breached the 50% market share last year. (Read press statement here [13].)

It said it flew 2.45 million domestic and international passengers from January to March this year. During the same period, PAL flew 2.34 million total passengers. The 110,000 margin maybe a slim one, but it is a sign of the times: PAL no longer dominates the Philippine sky.

PAL initially faced the headwinds after its near-death experience in 1998 following its hubris days and the Asian financial crisis that forced it to its knees. It was successfully released from receivership in 2007—nine years after it was on the brink of financial collapse. Sydney-based Center for Asia Pacific Aviation even named it the “Airline Turnaround of the Year” in 2007 for restructuring its operations and cutting costs. (Note: PAL was given exclusive use of the Terminal 2 at the Manila airport after this was included as one of the conditions of its rehabilitation.)

While it was restructuring, however, PAL’s domestic operations were limited to just the key and established domestic destinations. Its previous missionary routes have been snapped by other domestic carriers like Sea Air and Zest Air. Both mount flights to Caticlan, the jump off point to tourist haven, Boracay island.

In the world of aviation, domestic flights are key since international airlines are not allowed to fly passengers within the domestic territory. In industry parlance, this is called anti-cabotage. International airlines can only bring passengers into and out of the designated gateways in the country—such as the international airports in Manila, Clark, Cebu and Davao—but local airlines are the ones that fly passengers from those “drop-off points” to and from local destinations.

Since are we are nation of more than 7,100 islands, which make contiguous land trips impossible, and people now have access to budget air fares that can go as low as P1 (base fare, promo), and our passenger shipping industry has a tainted safety record—we like to fly.

In 1998, we had to fly PAL. This 2010, PAL is just one of the choices.

Pilot resignations

But that’s just the domestic playing field. Far beyond the influence of PAL, or even Lucio Tan, was how the global aviation industry has changed. And that’s where the current issue of pilot resignations in PAL figures.

The problem of pilot resignations is not a PAL monopoly. It’s a global phenomenon that was a direct result of the soaring capacity growth. Just take note of those news tidbits about orders from different airlines for the much-publicized new variants of Boeing and Airbus, not to mention the release of Airbus A380 and Boeing’s 787 Dreamliner, both giant double-deck, wide-body planes that can accommodate 500 to over 800 passengers. These airlines are likely adding aircraft faster than pilots can be trained to fly them. That means a dogfight for scarce pilots.

And in a typical supply-demand imbalance, pilots and other qualified staff usually leave for better offers in numbers larger than ever. Usual destinations of pilots who resign due to higher pay offer are carriers from China, India, and the Middle East. The 25 pilots that haphazardly resigned from PAL were reported to have found new employment among airlines from the Middle East, apparently a favorite since salaries are tax-free. However, previous pilot exodus that hurt not just PAL, but also Cebu Pacific, was due to poachers from China and India. In India, pilot shortage due to the rapid increase of airline players became so severe that one cargo operator, Blue Dart, said it lost 80 pilots from June 2004 to April 2005.

PAL, too, has been vocal about its own problems on the exodus of key personnel. In fact, when PAL’s management embarked on a grand $1 billion expansion program after being released from receivership in 2007, it had to put on hold the delivery of the bigger and more cost efficient aircrafts it has ordered because of the alarming rate that it was losing pilots and mechanics to foreign airlines.

In a 2006 forum of local aviation officials in Manila, PAL president Jaime Bautista was quoted as saying that some 140 senior pilots and over 1,900 aircraft mechanics had left for higher paying jobs overseas in the last 5 years. From 2003 to early 2006 alone, Bautista had said it had lost 78 of its senior pilots to foreign competitors. The past resignations, however, did not come in one blow, as it did now.

Nonetheless, any professionally-run company should be prepared—operationally and financially—for the worst. Best practices show that companies must have redundancy plans in place, even taking in to account the resignation of its key people.

Is PAL prepared for these resignations?

Management seems to have been counting on the 180-day lead time that a resigning pilot should observe, as required by a government regulation designed to allow the airline to find suitable replacement. PAL officers have also cited that the contracts signed during their expensive pilot training bound them to a lock-up period with the company so they can serve out PAL’s investment on them. Legal cases against the pilots are already being pursued by PAL.

Any incident not according to the company redundancy plans—something not limited to resignations, but includes being caught in the middle of an unexpected war and even natural calamities—is truly disruptive.

These are disruptions, it seems, that affect PAL as a company, but is it disruptive enough for the entire Philippine economy that high level government intervention is needed?

After all, this is year 2010, not 1998.

Corporate slavery

2010-08-07T15:26:00.002+01:00

http://opinion.inquirer.net/inquireropinion/columns/view/20100806-285316/Corporate-slavery
By Solita Collas-Monsod
Philippine Daily Inquirer
First Posted 20:42:00 08/06/2010

FROM THE initial stories that came out in the press, one got the impression that the pilots who had left PAL were the bad guys. The stories, sourced from PAL management, went that the pilots were earning oodles of money (by local standards anyway—P500,000 a month was the figure being given for a senior pilot). Their training (“costing millions”), which had made them so highly skilled and highly priced in the first place, had been paid for by the company. And yet they left for greener pastures, and with nary a by-your-leave or backward look to boot, leaving behind unpaid debts to the company, forcing the airline to cancel scheduled flights, causing the passengers great inconvenience, reducing tourism, thus jeopardizing the economy. Such greedy, ungrateful, thoughtless, unpatriotic wretches was the structural message of these tales.

The PAL management, on the other hand, were the good guys in this version of the story. Although the pilots had broken the law and their contracts, which required them to give a six-month notice before leaving, the company was willing to forgive and forget all and would not press any charges or impose any sanctions as long as the pilots would come back. Structural message: management was not only reasonable, but ready to bend backward for the national good.

Unfortunately for the PAL spinners, the story was too big to be controlled by the usual methods of “envelopmental” journalism and the threat of advertising withdrawal. So the “bad guys” were able to get their own version across.

In this version, the pilots left because they saw how PAL had treated some of their colleagues, and weren’t about to wait for the same treatment to be meted out to them. Specifically, they saw their colleagues, both senior and junior, arbitrarily declared “redundant” and therefore retrenched/terminated, at about the same time that a couple of PAL airplanes were turned over to Air Philippines (a sister company). The retrenched pilots were then offered jobs at Air Phil, but at markedly lower (reportedly half of their former pay) salaries, because they had lost their seniority and were considered new hires. When even more PAL planes were rumored to be readied for transfer to its sister company, the pilots scrambled for jobs being offered abroad.

At first, PAL management pooh-poohed this version, and said (I heard it myself in a TV interview) that the pilots in question were not terminated but merely assigned to Air Phil on a “temporary” basis. But in the face of the first-person accounts that were being presented to the public and in Malacañang, and the fact that more and more pilots are planning to join their colleagues abroad, PAL presumably had to change its tune. So that yesterday’s headline was “PAL vows to stop moving pilots to Air Philippines.”

The above example of mendacity does not seem to be unique. The P500,000 a month salary figure quoted above—which fed the impression that pilots are greedy sons-of-bitches—is equally spurned by the pilots themselves. I talked to three pilots of varying seniority, who shared with me what they earn at PAL, and the figures, all in, averaged P350,000. Furthermore, their training, “costing millions,” turned out to be P1.9 million, but since this is a figure given in a PAL contract, the pilots feel that even this is an exaggeration, for which they are required to give five years of service.

Then there is the matter of the pilots leaving without the requisite notice, as claimed by PAL. If they did, it may be because of any or all of these reasons (again, from first-person accounts under similar circumstances): one is that PAL refused to accept their letter of resignation on the grounds that only a 30-day notice was given (per the Labor Code) and not the 180 days specified in their contract. (Anyone who reads that contract will see how onerous the terms are.) The pilots point out that the 180-day notice requirement is not a law (contrary to what was originally stated in the media, presumably courtesy of PAL). I checked this out with Labor Secretary Rosalinda Baldoz, asking her to cite the law. There is none. What is there is a memorandum circular from the POEA Board citing critical mission skills as reason for the 180-day notice—and she elaborated that this is binding only for pilots who are recruited in the Philippines—which is presumably why these pilots signed their contracts abroad.

A second reason is that PAL allegedly makes the lives of the pilots who give requisite notice a living hell: they are given the worst assignments, and their pay is withheld, supposedly while the company is making a determination of how much the pilot may be owing the company—which leaves the pilot, who has a family to support, in dire financial straits.

Apparently, if the pilots’ stories are to be believed (and I will take their word over management’s any time), PAL does not hesitate to use this time to undermine the pilot’s status with his prospective employer (what one may call a negative letter of reference), which has sometimes resulted in the withdrawal of the offer of employment; and/or to level some complaint against the pilot to “cooperative” immigration authorities or to the POEA or the NBI that will effectively stop his departure.

Let’s get real here. If the labor problems of PAL are limited to its pilots, maybe, just maybe it could be the pilots’ fault. But PAL has problems with its flight crews and ground crews as well. Corporate family? Corporate slavery, more like it.

"Waste of Time": PAL officials, pilots meet doesn’t take off

2010-08-05T20:31:00.003+01:00

http://newsinfo.inquirer.net/inquirerheadlines/nation/view/20100804-284979/PAL-officials-pilots-meet-doesnt-take-off

PHILIPPINE AIRLINES (PAL) management has snubbed a meeting with a group of pilots organized by Malacañang, aimed at resolving the shortage of crewmen to fly the company’s workhorse Airbus A320 aircraft.

PAL president Jaime J. Bautista said it would be a “waste of time” to meet with the group claiming to represent the resigned pilots.

“The pilots who resigned have left the country already and the group that met with government [officials Tuesday night], they are not our pilots,” he said.

Bautista told the Inquirer that “PAL pilots don’t have a labor union.”

Malacañang was supposed to meet with the airline’s management and the 25 pilots who recently resigned to finally meet face-to-face on Wednesday so both sides could resolve problems that led to a number of flight cancellations since last weekend.

The Palace has ruled out a takeover of PAL, citing the state’s own financial and technical limitations.

The lack of pilots has forced PAL to scrap three flights daily to as many destinations. Passengers booked on the cancelled flights are to be assigned to other flights within the same day of their original schedule.

Transportation Secretary Jose de Jesus met with PAL management, led by chair Lucio Tan on Monday and with the pilots contingent, led by the Association of Airline Pilots in the Philippines (Alpap), the day after.

Five-man team

The five-man team that claimed to represent the pilots included retired airmen and retired PAL pilots.

Bautista said the company would only be willing to meet with the actual pilots who resigned. “Otherwise, it would be a waste of time,” he said.

Alpap, composed of Filipino pilots working in the country and abroad, said it had been approached by most of the 25 resigned pilots themselves. But the 25 have all left the country already, Elmer Peña, Alpap president, said.

“We have been talking to the government and we are willing to meet with PAL,” said Peña. Alpap used to be a PAL labor union before being booted out a decade ago.

Closest thing

He said Alpap was the closest thing that the pilots had to an organized representative because PAL, following the 1998 strike, had barred its pilots from forming labor unions. Both PAL’s ground employees and flight attendants are represented by unions.

“It’s easier for PAL to not be talking to a labor union because that way, it can impose its will on its pilots,” Peña said.

The 13 captains and 12 first officers who recently resigned one after the other were reportedly lured by higher-paying jobs abroad.

Poor conditions

Alpap, however, said the pilots resigned due to poor working conditions. It said pilots feared for their own jobs after several of their colleagues were forced to work for PAL sister company Air Philippines, the group’s answer to the dominance of Gokongwei-led Cebu Pacific.

Air Philippines pilots were allegedly given lower salaries.

The pilots who left PAL were said to have stopped reporting for work immediately after filing their resignation letters.

The move is in violation of the law-mandated six-month notice for pilots who plan to resign.

The rule is meant to give companies more time to train replacements for the pilots, who are considered to be doing “mission critical” tasks.

PAL earlier rejected the resignations and ordered the pilots to return to work or face criminal and administrative charges. It later said that it would not file charges against pilots who return to help PAL operations return to normal.

Presidential spokesperson Edwin Lacierda told reporters on Wednesday that the talks were continuing, but appeared to douse hopes of an immediate breakthrough.

“We cannot guarantee that it would be resolved this week,” he said.

Other issues

“We thought it was just a simple case of higher wages luring pilots to seek jobs elsewhere,” Lacierda said.

But he said the pilots’ union had since brought out more complaints against the management.

Lacierda said Malacañang was not ready to take a more active role in resolving the dispute and would rather watch things unfold in separate talks conducted by Palace officials with PAL management and the pilots.

PAL has been beset by growing labor unrest for months with ground crews and flight attendants also threatening strikes.

The airline may post a loss in its current fiscal year because of pilot trouble that led to flight cancellations, its listed parent said.

PAL had said it expected to return to profitability in the 12 months to March 2011 after posting a net loss of $14.3 million in its previous fiscal year.

“We wish to confirm that (PAL) may have to revise its targets ... because the cancellation of several flights have indeed affected the revenue of PAL,” PAL Holdings said in a statement. With reports from Cathy Yamsuan and AFP

KMU to Aquino: Investigate Lucio Tan’s Profits, Anti-labor Schemes

2010-08-05T20:31:00.001+01:00

http://www.bulatlat.com/main/2010/08/05/kmu-to-aquino-investigate-lucio-tan’s-profits-anti-labor-schemes/

As the controversy over the mass resignation of Philippine Airlines’ pilots since last Saturday rages on, labor center Kilusang Mayo Uno called on President Aquino to investigate PAL owner Lucio Tan’s profits and anti-labor schemes, saying labor issues are behind the recent imbroglio in the national flag carrier.

KMU made the call in a picket in front of PAL’s corporate office in Ayala Avenue this morning, where the labor center condemned the business tycoon for “intensifying the exploitation and causing the lay-off of workers” in the airline company.

Attending the picket were members of the PAL Employees’ Union or Palea, the union of PAL’s ground employees, the Laban ng Bagong Palea, KMU, and Anakpawis partylist.

“The PAL management continues to bombard us with Lucio Tan’s canard that the pilots who resigned were merely motivated by personal interests. If there is a party to this issue that has consistently advanced nothing but his personal interests, that is Lucio Tan,” said Roger Soluta, KMU general secretary.

“We are therefore calling on the Aquino regime: investigate and expose Tan’s profiteering and anti-labor schemes. Not only will this get us to the bottom of the pilots’ resignation, more importantly, this will be a first step in improving the worsening lot of PAL workers,” Soluta added.

The labor center said the investigation that it is calling for will force open “no less than a can of worms” that will expose the PAL management’s statements “for what they really are – lies in the service of superprofits.”

“Accusations that the pilots were thinking only of their own interests when they resigned will be refuted by no less than a can of worms of anti-labor schemes: increases in workloads and decreases in wages, illegal termination, moratorium in CBA negotiations, promotion of contractualization, use of dummy corporations, among others,” Soluta added.

“In various venues, and especially during negotiations for collective bargaining agreements, the PAL management is often heard whining about decreasing profits and the possibility of closing down. How could that be, when Lucio Tan continues to be the second richest Filipino with a net profit of P90 billion? When PAL continues to be the top carrier in the country, handling 35% of international flights?”

Soluta said investigating Tan’s profits and labor practices will yield “instructive insights” into the country’s labor laws and policies.

“We will definitely be shocked by how much of what Tan does in PAL and his other companies are illegal. But we will also be shocked by how much of his profiteering and anti-labor schemes are made legal, sanctioned by the country’s anti-worker labor laws and policies,” Soluta concluded.

A breath of Fresh Air for High Court

2010-08-04T23:59:00.002+01:00

http://www.bworldonline.com/main/content.php?id=15307

Why does World Billionaire Lucio Tan Have Such a Troubled Airline?

http://raissarobles.com/2010/08/03/why-does-world-billionaire-lucio-tan-have-such-a-troubled-airline/

http://truthaboutluciotan.blogspot.com/2010/08/why-does-world-billionaire-lucio-tan.html

A breath of fresh air for high court

Calling A Spade... -- By Solita Collas-Monsod

PNoy will be appointing three Supreme Court associate justices within his first year of office (barring untimely deaths or resignations in the court) -- one immediately to replace Renato Corona who was Gloria Arroyo’s midnight appointee as chief justice, and two by June next year to replace Conchita Carpio Morales and Eduardo Antonio Nachura who will both be reaching retirement age.

A fourth vacancy in the court will occur in May 2014, when Roberto A. Abad retires. And a fifth vacancy will definitely come up on April 14, 2016, when Martin Villarama turns 70 -- still within PNoy’s term -- but unless PNoy decides to do a Gloria Arroyo, that vacancy will be filled up by the next president.

I have never lobbied for a Supreme Court wannabe, but I am making an exception this time, for the most obvious of reasons: the Supreme Court’s reputation is arguably at its nadir, what with the poor quality of some of its decisions, and the increasing frequency of its somersaulting on its better ones.

Two examples of the former are of course the mental gymnastics and leaps of logic that accompanied the decision that the Supreme Court (and only the Supreme Court) appointments were exempt from the constitutional provision against midnight appointments; and the latest booboo where the ponente not only plagiarized (which is bad enough) but misunderstood what he was plagiarizing, thinking that it supported his argument (which was really the pits -- his mistake was pointed out not only by Philippine lawyers, but by the author of the plagiarized work). Worse, some of his colleagues tried to defend him.

With respect to the somersaulting, it is enough to point out that in the 30-year period between 1970 (the earliest case cited where a second motion of reconsideration or MR was allowed by the SC) and 2000, only three second-MRs were entertained by the high court. But between 2002 and 2008, the number tripled to nine. There is more: In 2009, in the case involving the cityhood of 16 municipalities, a THIRD MR was entertained, which ended up reversing the original decision. Good grief.

Thus the Supreme Court is in dire need of beefing up, as it were, and with all due apologies to the rest of those on the JBC short list, I am rooting for the appointment of Ma. Lourdes "Meilou" Sereno as part of that process of improvement and reform.

I am in good company, actually. Retired SC Associate Justice Florentino "Toy" Feliciano is also rooting for her. Unfortunately, neither he nor I can be considered as "powerful" backers -- you have to be an important politician or a large campaign contributor or part of the inner circle to qualify for that -- so I am hoping to convince the public of her worth so they can communicate their support to PNoy himself.

What is so special about Sereno? That she has a first-rate mind, there is no doubt. She got the best of education through scholarships because of that intellect (her parents were not wealthy) -- an undergraduate degree in economics from the Ateneo de Manila University, and her law degree (valedictorian) from UP. Plus a graduate law degree from the University of Michigan, where she was again on scholarship. She taught at the UP College of Law for 20 years, and at various times and is now executive director of the Asian Institute of Management’s public policy think tank.

So far, though, that kind of record can be matched by any number of people. What is matchless about her -- and now we’re getting into the nitty-gritty -- is, first, that she is no stranger to judicial reform, being the principal architect of the first major judicial reform program under the Narvasa Court in 1996, and as a consultant to the World Bank, USAID, and UNDP on several areas of judicial reform. Thus she will be in the best position to make sure of their implementation once she is on the "inside", i.e., a member of the court.

Moreover, she is no stranger to management and administration -- aside from her executive directorships, she was elected chair in 1999 of the Steering Committee of Erap Estrada’s Preparatory Commission on Constitutional Reform, and saw to it that the report was completed ahead of time -- so the probability is very high that she will have no case backlogs .

Third, she is computer literate to boot, and recognizing the potential of technology, established and became president of the first business community of legal scholars, Accesslaw (together with the likes of SC Justice Jose Campos and Haydee Yorac). One can only imagine what she will be able to do to get the SC records straightened out and updated (the SC at this point does not even know what its case backlog is -- at least as far as the Philippine Statistical Yearbook is concerned).

Fourth, she has not only taught in UP (and the Philippine Judicial Academy), but in the Hague Academy of International Law (Netherlands), the University of Western Australia and Murdoch University (both in Western Australia). Her papers are have also been published abroad. Her stature is international.

Fifth, on top of all that, she is not only an excellent legal teacher, but an excellent legal practitioner as well -- served as counsel at the Appellate Body of the WTO in Geneva, Switzerland, and more recently, won (as co-counsel with Toy Feliciano) the two largest international cases (both involving Fraport and PIATCO) involving the Philippines -- involving over a billion dollars, going head to head with top international lawyers. Not to mention she was the lawyer who convinced the Supreme Court that the GRP-MILF agreement was unconstitutional. National AND international stature.

As if that weren’t enough, Toy Feliciano provides a sixth and extremely important argument in her favor: he says he is convinced that she does not suffer from any extraordinary attraction to money or the comforts and pleasures that money might be expected to bring -- and her husband shares her basic human and professional values. Toy is of the firm belief that she would resist any egregious effort to influence her thinking and decision about the legal merits of any case that she may be assigned to as ponente or otherwise comes before the Court for decision...in other words, she cannot be bought.

Need I say more? No, but I will end the spiel on Meilou by saying that apparently, in the public interview with the JBC, Chief Justice Corona seemed to take offense at her advocacy for reforms. He also asked her whether it was true that two of her classes in UP asked for her removal from the college because of her absences (not true; case was to force her to change their grades; case dismissed, and the valedictorian of that class, when he topped the bar, cited her excellent teaching as one of the major reasons for his performance). In any case, the rumor is that Corona did not vote for her -- in spite of her fantastic CV.

Another speculation: that he was miffed at her because she had previously sent him a fax protesting his midnight appointment.

Please to understand, reader, that I have met Sereno only twice in my life -- our major contact, if it can be called that, is that we were on opposite sides of the JPEPA issue. But I admire her work. And her work ethic. She will be the breath of fresh air that the Supreme Court so badly needs at this point.

And while we are on the topic of important appointments, I have said it before, and I will say it again: I hope Justice Secretary Leila de Lima very seriously considers, and plugs for the appointment of Catalino Generillo Jr. either as head of PCGG, or the commissioner in charge of prosecuting the case against Lucio Tan, et. al.

If Generillo was such a threat to Tan that Tan’s lawyer and Solicitor General Agnes Devanadera had him fired, then that should be the biggest recommendation for him. He certainly has the qualifications for the job, but most importantly, he is as familiar with the case as he is with the back of his hand.

It should be remembered that it was Haydee Yorac who took him into the PCGG. And like Sereno, he cannot be bought. Competence. Integrity. In spades.

Labor group cautions gov’t against PAL takeover

2010-08-04T17:25:00.001+01:00

Why does World Billionaire Lucio Tan Have Such a Troubled Airline?

http://raissarobles.com/2010/08/03/why-does-world-billionaire-lucio-tan-have-such-a-troubled-airline/

http://truthaboutluciotan.blogspot.com/2010/08/why-does-world-billionaire-lucio-tan.html

http://newsinfo.inquirer.net/breakingnews/nation/view/20100803-284692/Labor-group-cautions-govt-against-PAL-takeover

MANILA, Philippines—The Partido ng Manggagawa (PM) on Tuesday cautioned the government against taking over the operations of the Philippine Airlines (PAL) as the labor row with pilots remains unresolved.

“The government can exercise eminent domain and police power to takeover PAL if the labor problems are unsettled but that will only sweep the dirt under the rug without actually cleaning the house,” PM chairman Renato Magtubo said in a statement.

“Unless the grievances of the airline pilots, flight attendants, and ground crew are redressed now then labor unrest will simply simmer and explode later,” he argued.

The labor group instead called on the Aquino government to mediate PAL’s labor dispute with the aim of addressing the workers’ demands.

“A better option is for the Aquino government to apply social justice so it can resolve the problem of contractualization that lies at the root of labor unrest at PAL. PAL is not simply competing with Cebu Pacific but they are copying the contractualization scheme that is rampant in its rival,” Magtubo said.

Gerry Rivera, PM vice-chairman and president of the Philippine Airlines Employees’ Association (Palea), agreed with Magtubo and said “contractualization is the cause of deteriorating working conditions at PAL.”

“PAL farmed out its pilots to sister company Air Philippines and thereby effectively demoted them. How can you fault the pilots then for leaving the sweatshop conditions at PAL for the good pay, regular status, and better working environment offered abroad?” he asked.

Aside from the pilots’ resignation, PAL is faced with an ongoing labor dispute with its ground crew over the planned contracting out of jobs that will lead to the layoff of some 3,000 employees and the threat of a strike by flight attendants over a deadlock in collective bargaining negotiations.

Rivera said that the PAL ground crew, flight attendants, and pilots are now in talks in order to defend job security and working conditions at the country’s biggest domestic and international carrier.

He also said Palea is scheduled to attend a conciliation meeting called by the Department of Labor and Employment on August 12.

Palea has a pending motion for reconsideration of the former Acting Labor Secretary Romeo Lagman’s “midnight decision” that affirmed PAL management’s prerogative to contract out jobs of ground crew to third-party companies that employees alleged are also owned by Lucio Tan.

Aside from a reform of the policy on labor contractualization, PM is also calling on the government to lift the six-month prior notice on the migration of workers categorized as having mission-critical skills for unduly disadvantaging labor.

Palace meetings fail to resolve PAL row

2010-08-04T17:21:00.002+01:00

http://www.bworldonline.com/main/content.php?id=15197

More dialogues to be held; carrier cuts cancellations

MALACAÑANG mediation yesterday failed to resolve a labor row between Philippine Airlines (PAL) management and some of its pilots, with officials announcing the staging of further dialogues aimed at ending three days of flight disruptions.

The Lucio Tan-led carrier promised it would do its best to keep its planes flying, and said only two domestic flights had been cancelled yesterday, down from Saturday’s 11 -- which included an international route -- and Sunday’s eight local trips.

Emerging from meetings at the Palace, Transportation Secretary Jose P. de Jesus said both parties remained open to resolving the problem, which stemmed from the resignations of 25 PAL pilots said to have been pirated by foreign carriers.

"It is still a work in progress. We will meet with the other pilots tomorrow after which we will arrange a dialogue with the two groups," Mr. de Jesus said.

"What I can say is that to minimize the inconvenience to the public, PAL has promised to publish, as they have started to publish, a new schedule of flights. [They will] merge flights ... As long as the passengers know in advance, they will know how to book their flights," he added.

PAL President and Chief Operating Officer Jaime J. Bautista said in telephone interview after the meeting that the airline would be trimming its flights until the issue was resolved. He again warned of legal action against the resigned pilots and said their new employers could be also be sued.

"If the pilots will still not heed our request [to return], we would file charges, perhaps breach of contract. We are also studying the possibility of filing charges against the airlines that hired them," Mr. Bautista said.

PAL claims the pilots did should have given 180 days’ notice before leaving, time the airline would use to train replacements.

Also present at yesterday’s meeting were Justice Secretary Leila N. de Lima, Labor Secretary Rosalinda D. Baldoz, Civil Aviation Authority of the Philippines director-general Alfonso G. Cusi, Senior Deputy Executive Secretary Jose Amor M. Amorado, Presidential Spokesperson Edwin Lacierda and Cebu Pacific Air, Inc. President and Chief Executive Officer Lance Y. Gokongwei. Officials also met separately with Elmer F. Pena, president of the Airline Pilots Association of the Philippines, and a PAL pilot identified as Capt. Ismael Lapus Jr.

Palace officials on Sunday said the issue of pilots being pirated by foreign airlines was not limited to PAL but Cebu Pacific yesterday claimed its pilot pool remained "generally happy."

"Opportunities abroad are always there... However, if they (pilots) decided to leave us, they will have to undergo the process of notifying us 90 days beforehand," said Candice A. Iyog, the airline’s vice-president for marketing and distribution.

She said Cebu Pacific lost two pilots this year, but claimed they left not because of compensation issues.

PAL has said nine pilots resigned in 2003, 22 in 2004, 29 in 2005 and 15 in 2006.

The flag carrier, which is already facing a strike threat over a plan to outsource "non-core" services, was criticized anew yesterday by a flight attendants’ union currently negotiating a new benefits package.

The Flight Attendants’ and Stewards’ Association of the Philippines claimed "Many flight attendants have also been transferring to other foreign airlines, citing lack of security of tenure and the labor problems of PAL."

In addition to the pilot resignation issue, the Labor department is scheduled next week to meet with the PAL Employees Association to discuss the airline’s outsourcing plans, expected to lead to the retrenchment of nearly 3,000 workers.

The carrier last month announced a narrower loss for its fiscal year that ended in March, to $14.3 million from the previous year’s $297.8 million, but warned of still weak demand for international flights. -- from reports by A. M. G. Roa and A. M. P. Dagcutan

After pilots, PAL cabin crew raise strike threat

2010-08-04T17:20:00.000+01:00

http://www.manilastandardtoday.com/insideNews.htm?f=2010/august/3/news3.isx&d=2010/august/3

PHILIPPINE Airlines’ flight attendants said Monday they planned to strike in two weeks amid an impasse in talks on what they claimed was the flag carrier’s practice of assigning fewer than needed staff on flights.

“PAL has been getting away with its obligations to the riding public,” said Robert Anduiza, president of Flight Attendants and Stewards’ Association of the Philippines.

The group, which represents about 1,600 of the flag carrier’s in-flight crew, claims that PAL has reduced the complement of cabin crew in long-haul flights to 16 from the required 18.

“It is our view that to cut on manpower per flight will be a downgrade rather than an improvement of PAL’s inflight service product,” Anduiza said in a letter to management.

But airline president Jaime Bautista denied that the capital-strapped airline had been undermanning its flights.

“We just reduced the number of cabin crew comparable with the manning of other airlines,” Bautista told reporters.

The threat of a widened industrial action came despite President Aquino calling the management to Malacañang over the recent flight cancellations due to a pilot shortage.

The government said it aimed to resolve the shortage within the week as flight cancellations were hurting trade and tourism.

Because of the cancellation of at least 22 flights over the weekend that continued until Monday, PAL said it might miss its goal of returning to profit this year.

“We may have to revise this year’s targets,” Bautista said.

“The pilot resignations are a poaching issue,” he said, referring to the continued exodus of 25 Airbus pilots to higher-paying jobs in Asia and the Middle East.

Most of the pilots will join Hong Kong Airlines as they have been offered higher wages and better conditions, according to Elmer Pena, president of the Airline Pilots Association of the Philippines. The Chinese-backed carrier started a recruiting in June as it added new planes because of rising travel demand in the world’s most populous nation.

“We’ve been hiring pilots from all over the world,” Hong Kong Air president Yang Jian Hong said by phone Monday. He declined to comment on whether the carrier had hired PAL pilots.

The Airbus A320 captains joining Hong Kong Air, which is backed by China’s Hainan province, would get as much as $17,000 a month on which they would pay 15 percent income tax, Pena said. PAL paid them about $7,000 on which they paid 32-percent tax.

About three pilots were also leaving Cebu Pacific, which paid less than Philippine Airlines, for Hong Kong Airlines, Pena said.

Emerging from the Malacañang meeting early Monday night, Transport Secretary Jose de Jesus said the government and airline officials would meet again today.

The PAL management had committed to inviting back, without threat of any sanctions, the pilots who had resigned, De Jesus said, even though the unresolved pilot compensation was “part of the problem.”

Cebu Pacific “did not express concern” on pilots leaving, De Jesus said. Still, the Gokongwei airline was “fully stretched” and could not serve Philippine Airlines’ cancelled flights, he added.

PAL last month reported a net loss of $14.3 million for the year ending in March. Revenue fell to $1.4 billion from $1.6 billion.

A 1998 pilots strike led the airline to suspend debt payments until PAL owner Lucio Tan added $200 million to his investment. Bloomberg, Jeremiah F. de Guzman

Why does World Billionaire Lucio Tan Have Such a Troubled Airline?

2010-08-04T05:56:00.004+01:00

http://raissarobles.com/2010/08/03/why-does-world-billionaire-lucio-tan-have-such-a-troubled-airline/

By Raissa Robles

Why is world billionaire Lucio Tan having continuous labor trouble but only in one of his companies – Philippine Airlines?

Why is the trouble with PAL erupting again at the start of a new presidency, just like it did when Joseph Estrada assumed office in 1998? Is there a ploy to make the new government look helpless once more and to extract concessions from this situation, just like Lucio Tan was able to do with Estrada?

To read about the July 22, 1998 PAL strike and Estrada, click on this link.

Forgive me. I’m highly suspicious of recent events involving PAL. Its pilots resign en masse and PAL management simply cancels flights, stranding hundreds of angry businessmen all over the Philippines.

Could that be regarded as an abandonment of its legislative franchise or a hostage-taking of the new government? Failure to resolve this soon would reflect badly on the new government.

Lucio Tan – with an estimated net worth of US$1.7 billion (or 78 billion pesos) according to Forbes’ March 2010 rich list – cannot resolve this problem to ensure his airplanes continue to fly. Or is the plan NOT to let his airplanes fly?

The salaries that the pilots were earning are peanuts to Lucio Tan.

You know how big a US$1.7 billion fortune is? It’s really hard to imagine. But let’s compare. Last year, the Philippine income tax collection for the first six months totaled 67.5 billion pesos. Lucio Tan’s fortune is a bit more than that – 78 billion pesos.

In 1998, PAL workers and PAL management agreed to a 10-year moratorium on strikes and CBAs. The truce ended in 2008. Now workers are restive again. The workers’ union, PALEA, filed a notice of strike due to PAL’s ”intended mass lay-off of unionmembers and officers by April 2010, illegal outsourcing of regular positions, direct negotiations with union members, unresolved issues during preventive mediation, and non-compliance of pay scale review during settlement of the wage distortion.”

PAL president Jaime Bautista had announced last year that the global industry downturn forced them into cost-cutting mode. I would readily believe that if I hadn’t done an investigative report of PAL before. But more on that later.

The troubles in PAL have to be taken in a larger socio-political and economic context. Because this is not just labor trouble and this is not just anybody’s airline. This is Lucio Tan we are talking about.

The man who used to be a regular visitor to Malacanang Palace late at night during Estrada’s time. As Aprodicio Laquian, Estrada’s former chief of staff, wrote in his tell-all book “The Erap Tragedy: Tales from the Snake Pit” about Lucio Tan:

"He was a frequent guest in state diners and other formal fucntions in Malacanang. A slight ever-smiling man, Tan, in his simple clothes and quiet manner did not convey that he was probably the richest man in the country. (He often said he was already bankrupt)."

PAL has been one of the companies I’ve unfortunately had to follow as a reporter because it kept cropping up as an item and I’m really, really tired of it.

First of all, Lucio Tan DID NOT EVEN HAVE TO BUY THIS airline. In fact he was barred from participating in the public bidding for PAL. But he used a dummy – Antonio “Tonyboy” Cojuangco – yes, Gretchen’s dearest – to acquire it. Later, Tonyboy had to confess the airline didn’t really belong to him but to Lucio Tan.

As Grace Ong writes in her very extensive report on how Lucio Tan distorted and obtained government policies favoring PAL:

"Lucio Tan’s hidden shareholdings of PAL (via Tony Boy Cojuangco) and eventual takeover of PAL should itself be a study of how key privatization of lucrative state enterprises had not been based on very transparent and accountable processes."

I would suggest you take time out to read the report entitled: The political economy of corruption: Studies in transparent and accountable governance by Emmanuel S. de Dios and Ricardo D. Ferrer. You can click on this link.

The section written by Ong tells you how Lucio Tan extracted huge concessions for PAL from then President Joseph Estrada at the expense of Filipino overseas workers, Philippine tourism, investments and well, all of us basically.

Lucio Tan funded Estrada’s 2010 presidential campaign and with good reason. There is no love lost between Lucio Tan and President Benigno Aquino’s late mother, Corazon, whose administration sequestered shares:

1. in his tobacco firm (Fortune),
2. bank (Allied) and
3. piggery (Foremost Farms)

because these formed part of the ill-gotten wealth of the Marcoses. He served as the Marcos family’s dummy. Imelda Marcos herself claimed that Lucio Tan’s fortune was really theirs. She called Lucio Tan a magbobote. The Marcoses turned out to be the dummies in this transaction.

Lucio Tan’s billion dollar fortune was built on ill-gotten wealth and his ill-gotten wealth cases remain pending to this day.

So when PAL accuses the resigned pilots of committing breach of contract I have no sympathy for PAL even though I believe in honoring contracts. Because I know Lucio Tan’s history and how he made his fortune on a mountain of our heartache. Lucio Tan lived off the fat of Marcos’ dictatorship. His pigs thrived and wallowed in it. Oh, I’m talking about his company Foremost Farms.

PAL’s claim of being unable to afford better pay for its personnel because it is not that profitable is all baloney. The reason why it is not that profitable is that in 1998 and 1999 Lucio Tan peeled away PAL’s “non-core” but very profitable units that did in-flight catering, groundhandling and aircraft maintenance not only for PAL but for foreign airlines as well.

With the Estrada government’s cooperation, these PAL services were allowed to be spun off to companies fully-owned or partly-owned by Lucio Tan. In the process, Lucio Tan got rid of those troublesome unionists.

In the last 11 years, in-flight catering, ground handling and aircraft maintenance were all consolidated by Lucio Tan under his company called MacroAsia Corporation or MAC. Last year, MacroAsia earned a record one billion pesos in operating revenues.

Contrast that to PAL Holdings, Inc, owner of PAL. Its consolidated revenues last year were a measly 51.2 million pesos.

To help you understand what I’m droning about, here’s a chronology I researched and drew up years back in order to help me make sense of PAL and Lucio Tan’s actions that I believe actually hurt PAL:

March, 1997 – PAL buys 70% of holding firm MacroAsia Corporation for P700 million (US$18.5 million then).

March 1998 – PAL reports record 8.08 billion pesos net loss for its fiscal year ending March 1998, and said it wasn’t able to make payments on about $2 billion of debt

May 18, 1998 - PAL sells MacroAsia shares as a bloc to Tan-owned companies. Sale price and buyers not disclosed.

June 1998 – PAL pilots go on strike. PAL lays off 5,000 of its nearly 14,000 workers.

July 22, 1998 – The 8,000-member ground crew of PAL goes on strike to demand reinstatement of the 5,000 laid-off workers. President Joseph Estrada steps in. The government still owns around 18% of PAL, while Lucio Tan was estimated to own 70%.

Sept 1, 1998 - MacroAsia-Eurest Catering Services, Inc. (MECS), a Tan-owned company, starts commercial operations by catering the in-flight food for Singapore Airlines and Air Macau. After PAL closes down, MECS approaches PAL’s catering clients and gets nine of its clients. MacroAsia nets 114.32 million pesos in just four months of operation from September to December 1998.

Sept. 23, 1998 - PAL management closes down airline after talks with the unions collapse and goes under rehab with the Securities and Exchange Commission (SEC).

October 1998 – MacroAsia Airport Services Corporation (MASCORP) leases ground handling equipment from PAL for one year starting November 15, 1998 at a monthly rate of 369,600 pesos renewable yearly.

1999 – NAIA Terminal 2 starts operations and PAL has exclusive use of it.

Feb. 1999 – Lucio Tan starts 100% control and management of Air Philippines, the second biggest local airline accounting for one-third of domestic flights.

April 19,1999- ground-handling operations of MacroAsia-Ogen Airport Services (MASCORP) starts.

April 30, 1999 – PAL debtor US Ex-Im Bank withdraws its conditional approval of PAL’s rehab plan. According to then SEC chairman Perfecto Yasay, the bank complained that “the PAL insolvency process lacks fundamental attributes of transparency, fairness and predictability.”

Writing later in his book, “Out of the Lions’ Den”, Yasay said Ex-Im Bank “found the majority shareholder, Lucio Tan, lacking the skills, industry, experience, credibility, and respect to lead PAL or be involved in the management of the company.”

June 15, 1999 – Ogden Aviation, world’s largest provider of aviation services, signs joint venture agreement with MASCORP and buys 30% of it. On August 9, 1999, SEC approves its change in name to MacroAsia-Ogden Airport Services Corp.

July 2, 1999 – US Ex-Im Bank demands “open and fair auction process for the sale of PAL’s valuable non-core assets”.

March 24, 2000 – SEC approves PAL sale of maintenance and engineering department to a yet-to-be formed joint venture of Lufthansa Technik Philippines and Macro Asia Corp.

May 14, 1999 - MASCORP obtains Air Philippines as client. It earns 54.2 million pesos in eight months of operation servicing Air Philippines and all chartered flights of International Business Aviation Services, Philippines. Now has 6.5% of market, compared to MIASCOR’s (Manila International Airport Service Corp.) 61.3% and PAL’s 19.4%.

July 2, 1999 - MacroAsia incorporates Airport Specialists’ Services Corp. as a fully-owned subsidiary of MASCORP “to manage and promote, service and/or provide manpower support for any and all groundhandling requirements or private, military and/or commercial aircraft maintenance, maintenance of ground support equipment, ramp handling, aircraft cleaning, cargo receiving…

By this time, MacroAsia is also now the second largest in-flight caterer (with 17% of the market), next to PAL (with 73%). As of Dec 31, 1999, it has Singapore Airlines, Air Macau, Cathay Pacific, Lufthansa, Qantas, Saudia Airlines, Emirates, Pakistan Airlines, Canadian Pacific, China Southern, Federal Express, Air Philippines – all former PAL clients.

January 21, 2000 – MacroAsia Properties Development Corporation (incorporated June 4, 1996) applies with Philippine Economic Zone authority (PEZA) to operate a 23-hectare Special Economic Zone at the Philippine Airlines Technical Center inside NAIA.

April 6, 2000 – PEZA approves MacroAsia Properties Development Corporation’s proposal to operate a Special Economic Zone inside NAIA. Locators enjoy tax incentives to provide aircraft maintenance, repair and overhaul services to foreign and domestic airlines.

April 6, 2000 – Estrada’s trade secretary Jose Pardo announces that Lucio Tan is willing to sell PAL to clean up his own “crony” image

April 24, 2000 – Lucio Tan tells reporters he is talking with Lufthansa AG for the latter’s possible purchase of PAL

August 2000 – Philippine government loses its 25 billion pesos tax evasion case against Lucio Tan dur to late filing.

August 4, 2010 – Lucio Tan still owns PAL and recently said it’s not for sale.

Philippine Airlines tries to lure back renegade pilots

2010-08-04T00:13:00.000+01:00

http://www.mysinchew.com/node/42800

MANILA, Tuesday 3 August 2010 (AFP) - Philippine Airlines was on Tuesday desperately trying to lure back pilots who suddenly quit for higher paying jobs abroad in synchronised moves that forced the national carrier to cut flights.

Aides of President Benigno Aquino were involved in crisis talks, amid fears a situation that has so far mainly affected domestic flights could hit international services causing knock-on damage to the national economy.

The airline said Tuesday it had been forced to cut three domestic routes indefinitely after 25 pilots and first officers walked out last week to take higher-paid jobs in the Middle East and elsewhere in Asia.

"We want them all back," PAL president Jaime Bautista said on local ABS-CBN television, although he stressed the company could not compete with the hefty salaries offered by airlines abroad.

He said PAL was able to pay its top pilots only about 11,000 dollars a month, while overseas rivals were offering double that.

PAL has been beset by growing labour unrest for months with ground crews and flight attendants also threatening strikes.

PAL has accused the pilots of violating an airline rule requiring them to give 180 days' notice before resigning, and has threatened legal action if they do not return.

However none of the pilots who quit have spoken publicly, and Bautista said some had already left for their new jobs overseas.

Aquino at the weekend ordered his cabinet to intervene in the dispute.

"Hopefully we will be able to come up with a resolution, so that the riding public is not inconvenienced and the economy does not suffer because of what is an inter-company dispute," Aquino told reporters on Sunday.

PAL chairman Lucio Tan and senior airline executives held talks Tuesday for the second consecutive day with the four cabinet ministers assigned by Aquino to resolve the crisis.

Pilots' representatives joined the meetings for the first time Tuesday, presidential spokesman Edwin Lacierda told reporters.

Lacierda said the government's top priority was to have the two sides talk so that they could resolve the crisis themselves.

Aside from the immediate issue of the 25 pilots suddenly quitting, the pilots' union also complained that its members were being forced to sign less attractive contracts with PAL's budget subsidiary.

Lacierda said Tourism Minister Alberto Lim had expressed concern that PAL's troubles would further hurt the Philippines' aviation safety rating, after a 2008 downgrade by the US Federal Aviation Administration (FAA).

PAL flights to the US West Coast are among its most profitable routes, but plans to increase frequencies were scuttled by the FAA downgrade.

"That was the concern of Secretary Bert Lim -- the downgrade by the FAA. That will be addressed," Lacierda said.

However Bautista emphasised Tuesday that services to the United States were not immediately in jeopardy.

"We would like to assure you that we will not cancel flights to the US," Bautista said.

Impasse at PAL remains unresolved

2010-08-03T21:34:00.000+01:00

http://www.bworldonline.com/main/content.php?id=15264

THE IMPASSE at Philippine Airlines (PAL) remained unresolved after yesterday’s talks with pilots did not yield concrete results.

Transportation Secretary Jose P. de Jesus told reporters yesterday after a meeting with pilots at the Department of Transportation and Communications (DoTC): "We hope to meet with the pilots and the management [today]. The issue is more than a labor issue, the pilots also told us about their concerns on the working conditions in PAL."

He said four pilot representatives attended the meeting. "Some of them are active pilots."

Mr. de Jesus added the resigned pilots could still return. Thirteen captains and 12 first officers have quit from the flag carrier.

For his part, Edwin Lacierda, presidential spokesman, said the issue is addressed "day by day."

"The government is doing its best to solve the issue. We are positive about it," he added.

Meanwhile, PAL said that it will offer new flight schedules for three previously canceled destinations in an attempt to return flights back to normal.

Cielo Villaluna, PAL spokesperson, said in a statement that PAL’s average of 160 domestic and international flights daily will continue to operate as scheduled.

One flight each to Iloilo, Bacolod and Cagayan de Oro cities have been rescheduled while the rest of the flights to the three areas remain unchanged.

"All flights continue as scheduled except those to and from Bacolod (PR135/136); Cagayan de Oro (PR 181/182 except Thursdays); and Iloilo (PR147/148). Passengers booked on rescheduled flights are being advised accordingly to avoid any inconvenience or delays at the airport," she said.

Ms. Villaluna said PAL customers "have a wide choice of convenient flight schedules to choose from in all PAL destinations. PAL continues to have four flights a day each way between Manila and Iloilo, Bacolod and Cagayan de Oro."

No takeover

Earlier in the day, Mr. Lacierda told a Palace briefing that a government takeover of PAL was not discussed.

"We’re not at the point of discussing whether the president will step in. It’s being handled at the cabinet level. Hopefully, we will be able to come up with the resolution at the level of the cabinet," he said.

The government, represented by Mr. Lacierda, Mr. de Jesus, Justice Secretary Leila M. de Lima, Labor Secretary Rosalinda D. Baldoz, Civil Aviation Authority of the Philippines Director-General Alfonso G. Cusi and Senior Deputy Executive Secretary Jose Amor M. Amorado separately met last Monday with PAL management and pilots.

Also in attendance were PAL Chairman Lucio C. Tan, PAL President and Chief Operating Officer Jaime J. Bautista, and Cebu Pacific Air Inc. President and Chief Executive Officer Lance Y. Gokongwei, while Airline Pilots Association of the Philippines president Elmer F. Peña and Capt. Ismael Lapus, Jr. represented the pilots.

Ms. de Lima said in the same briefing: [What we are doing now] is moral suasion. An appeal to pilots. This is the minimum. The maximum will be an absolute takeover [of PAL]. Although we could also give mandatory directives to PAL through DoTC."

"If you can see, there is no legal dispute on this particular issue. The Civil Code will apply on this case, not Labor Code," she said.

The government owned and managed PAL since it reassumed control in 1977 before being privatized in 1992.

PR Holdings, Inc., the consortium which bought the airline, PAL faced differences until 1996 on how to manage the company. Mr. Tan became chairman and chief executive officer in January 1995.

The company’s woes were compounded by the Ramos administration’s adoption of an open skies policy and the 1997 Asian crisis. It exited receivership in January 2008.

In a related development, Ramon "Bong" B. Revilla, Jr., public service committee chairman, has called for a probe of the PAL case in aid of legislation.

"We must take immediate action to address the current situation and to prevent similar occurrences from happening in the future," he said. -- A. M. P. Dagcutan and A. M. G. Roa

Truth Commission headed by former Chief Justice Hilario Davide...

2010-08-03T16:56:00.001+01:00

http://www.manilastandardtoday.com/insideOpinion.htm?f=2010/august/3/emiljurado.isx&d=2010/august/3

The President’s Executive Order No. 1 creating the Truth Commission has drawn flak not only from the opposition but from sectors who presumably know their law.

The order is like Swiss cheese—it is full of holes. I cannot believe it was crafted by lawyers who know their law. It says that it can subpoena people to testify and if the witnesses are government officials, they can be charged administratively. If the person is private, can he then be cited for contempt if he chooses not to appear? I believe that since the Truth Commission is not a quasi-judicial creature, it cannot subpoena nor cite people for contempt.

Secondly, isn’t the Truth Commission duplicating the mandate of the Justice Department and the Ombudsman? I’ve always considered this creature of a commission a redundancy and an exercise in futility. We have had so many commissions before, but what have they achieved except to dribble the ball and entertain people over television?

My gulay, there’s also the constitutional provision of equal protection under the law. Since the order says nothing about when it should begin (although the order states the commission would end by 2012), it should cover every administration, not only the Arroyo administration.

Those against the Truth Commission should accept the challenge of President Aquino to bring the legality and constitutionality of the executive order that created it to the Supreme Court.

Another problem of the Truth Commission headed by former Chief Justice Hilario Davide is its credibility. The former Chief Justice has been the subject of impeachment and has failed to cite those who walked out during the impeachment case of former President Joseph Estrada for contempt. And, Santa Banana, having gone to Edsa to install President Arroyo and ruling that Erap “constructively resigned,” can Davide be believed?

Recall that Davide, when he was named ambassador to the United Nations, went to New York and occupied the post even without being confirmed by the Commission on Appointments. And he later resigned and became a member of the Liberal Party because his son was running for governor of Cebu.

I can believe in Davide—if he can investigate Lucio Tan, who is said to have lobbied with Estrada for Davide’s appointment as Supreme Court Chief Justice.

Palace: Too early for gov’t takeover of PAL

2010-08-03T16:53:00.001+01:00

http://www.sunstar.com.ph/network/palace-too-early-gov-t-takeover-pal-341-pm

MANILA -- Malacanang on Tuesday dismissed the possibility of taking over flag carrier Philippine Airlines (PAL) amid problems hounding the airline.

In a press briefing, Presidential spokesperson Edwin Lacierda said the government has not yet discussed the option of managing the largest airline in the country despite disagreement between PAL and its pilots that resulted in disruption of several local and international flights.

“It’s too early to tell. We’re still at a level where we are mediating dialogue of the two concerned parties. So hopefully we would be able to reach an amicable settlement here,” Lacierda said.

He noted it is still a positive sign that the two opposing camps are willing to sit down and settle issues with the government in between.

The Palace aide pointed out that PAL management is trying to win back their pilots without any punitive sanctions.

He also said the government is not preparing for a worst case scenario believing that PAL issues could still be resolved through dialogues.

“No worst case scenario for now,” he assured.

Meanwhile, the Palace spokesperson clarified that their mission is to iron out the problem of PAL and some of its 25 pilots but not to meddle when it comes to filing administrative suit.

“It’s their right to file a case of breach of contract against the pilots but labas po ang gobyerno d’yan dahil ‘yan po ay may kontrata po ang piloto at saka ang PAL management. Bahala na po ang Korte—we understand na ang jurisdiction nito ay hindi ang Labor kundi po ang regular courts.”

Lucio Tan attends meeting

In the process of resolving the issues of PAL, Lacierda said the airline’s owner - business mogul Lucio Tan, was on top of the situation.

He said Tan was present during the meeting mediated by the government Monday.

“Mr. Lucio Tan came in during, siguro, past two-thirds of the meeting. He was there just as an observer; he was not actively participating. It was Mr. (Jaime) Jimmy Bautista who was there. And it was a very friendly discussion,” he recounted.

Lacierda said Tan was also mum on the situation of his airline leaving all explanations to Bautista, who is the president of PAL. (Jill Beltran/Sunnex)