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PAL Agents Secure New Contract with Locked-In Raises and Retro Pay

February 17, 2023

The agreement provides two more holidays per year, improved paid leave, increased company retirement contributions, and an increased travel allowance. For the first time, sales representatives at PAL have been covered by contractual language, which outlines their rights and working conditions. The retroactive pay for the agreement will be up to $2,600 for some sales reps and up to $11,000 for all other unified agents.

The vote was held Monday, February 13, through Wednesday, February 15, and was conducted electronically. The deal covers Philippine Airlines agents’ Customer Service and Sales Representatives in Honolulu, San Francisco, Los Angeles, and New York.

Despite being one of the smaller bargaining units represented in Machinists Union District 141, PAL's workgroup negotiated a contract that met the priorities of union members and won unanimous ratification.

Mike Klemm, the district president of the International Association of Machinists and Aerospace Workers (IAM) that represents PAL's sales representatives and other agents, praised the agreement, saying, "This new contract provides our members with the fair pay and benefits they deserve for their hard work and dedication to Philippine Airlines. We're pleased that the company recognized the value of their employees and the importance of investing in their future."

The IAM represents over half a million workers in the United States, Canada, and Puerto Rico aviation, aerospace, and defense industries. The union has been fighting for fair pay, benefits, and working conditions for its members despite significant challenges facing the airline industry, including increased competition, rising fuel costs, and the ongoing COVID-19 pandemic.

Klemm emphasized the power of collective bargaining and the importance of workers and management coming together to reach a fair agreement. "This agreement shows what can be achieved when workers and management find common ground. It's a testament to the power of union solidarity and the importance of collective bargaining in the airline industry."

The successful ratification of the collective bargaining agreement is a significant victory for commercial airline workers, demonstrating the importance of unions in negotiating fair pay, benefits, and working conditions for workers, even in difficult economic times.

Union negotiator Shannon Robello expressed his satisfaction with the deal, saying, "This new collective bargaining agreement provides the fair compensation and benefits our members deserve, recognizing their important contributions to the company's success."

Despite the challenges posed by the COVID-19 pandemic, the commercial aviation industry is rebounding in a big way. The number of passengers passing through TSA checkpoints has been steadily increasing in recent months, with more people traveling for business and leisure as restrictions ease and vaccinations become more widespread. Although ticket prices have risen in response to pent-up demand, consumers are still eager to fly, reflecting the renewed sense of the value and reliability of air travel.

“Sean Ryan, Kaleb Rosa, John Burgwinkel, and everyone that helped work on the Negotiating Committee did a fantastic job,” said Robello. “These guys deserve enormous respect for their hard work developing this agreement.”

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