Philippine Airlines has announced plans to borrow P2.2 billion from banks to pay the benefits of 2,600 workers who will be affected by its decision to outsource catering, airport services and call centre operations.
“PAL would be hard up to raise P2.2 billion but this is a bitter pill we have to swallow,” says Jaime Bautista, president of PAL. “PAL believes DOLE’s decision is ‘just, reasonable and humane.’ Since it has the force and effect of a law, we must respect the ruling.”
Bautista said PAL will approach government financial institutions like the Development Bank of the Philippines and the Land Bank of the Philippines for the loan accommodation but if this is not forthcoming it will try PAL’s other creditors.