NEWSFLASH

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GOVT STOPS PAL PILOTS' STRIKE

Manila, Dec. 29, 1997 - Labor Secretary Leonardo Quisumbing has assumed jurisdiction over the labor dispute involving Philippine Airlines (PAL) and the Airline Pilots Association of the Philippines (ALPAP) to prevent a disruption of the airline's operations.

In an official statement, Quisumbing prohibited any strikes and lockouts at PAL and enjoined both parties from committing an act that may worsen the situation.

He agreed with the PAL position that a pilots' strike would greatly prejudice the company's financial stability considering the billions of pesos in losses incurred from 1995 to the present.

"Such concerted action at this point might choke the country's flag-carrier to death not to mention its effect on the approximately 14,000 employees and their dependents," Quisumbing said. "He also pointed out to a PAL strike's "serious implications on the nation's economy in general and the airline industry in particular."

Quisumbing acknowledged PAL's reported net loss of P2.1 billion in 1995-1996, P2.5 billion in 1996-1997 and P3 billion from April to October, 1997.

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