Govt urges talk over PAL strikes

Govt urges talk over PAL strikes

MANILA (Reuters): The government urged talks yesterday to avert a general stoppage at Philippine Airlines after ground and cabin crews threatened strikes over the airline's sacking of more than a third of its workforce.

An industry source said more jobs at financially troubled PAL could go and that the airline had warned its creditor banks it might not be able to service its debts, estimated to be at least $1.5 billion, after this month.

A senior government source said later yesterday that PAL would not declare a moratorium on its debt payments, and was working out a loan restructuring program with creditors.

PAL on Monday sacked about 5,000 employees, saying it needed to retrench in order to survive because the current strike of its pilots, now on its 12th day, had worsened its financial problems.