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Philippine Airlines cabin crew leave the airport after their flight arrived in Manila. The airline has been told to pay heavy salary increases and scrap its age limit policy Image Credit: AFP

Manila: The Labour Department ruled that the management of Philippine Airlines, the national carrier, must pay 200 million pesos (Dh16.6 million) in three years to 1,600 flight attendants who have been asking for pay increases and must extend the retirement age from 45 to 65.

Labour Secretary Rosalinda Baldoz said that PAL must not force flight attendants to retire at 45, but instead at 65 as mandated by a Philippine labour law.

Analysts said that the PAL management lost the long-running labour and wage dispute with members of PAL's Flight Attendants Association of the Philippines.

The ruling came after members of PALPASAP threatened to stage a strike or walkout.

Working together

In response, PALFASAP vice-president Andy Ortega said in a TV interview, "Now that this discrimination problem has been removed, we [PAL management and workers] can work together as one to make this airline great again."

"We are extending our hand to PAL management," said Ortega, adding that the Labour Department's ruling should help resolve PAL's other labour rows.

PAL spokesperson Cielo Villaluna said the airline would comment on the Labour Department's decision only after "lawyers have received and reviewed the official copy of the ruling".

"Only after the decision has been thoroughly reviewed and studied by our lawyers will the airline announce the next step it will take on this issue," she said.

In September, PALFASAP announced plans to stage a strike following PAL's refusal to extend the retirement age of flight attendants.

Baldoz took charge of the labour row in October.

PAL has been facing several labour disputes amid growing competition from budget carriers.

Outsourcing rejected

In another labour front, PAL cabin crew vowed to continue rejecting PAL's policy to outsource several services which could affect 2,600 workers.

Their pledge was in response to the Labour Department's ruling which allowed PAL to outsource several services.