PAL staff vote for closure

PAL staff vote for closure

MANILA (AFP): Union members of debt-ridden Philippine Airlines voted Tuesday to reject the management's rehabilitation proposal, clearing the way for the flag carrier's closure as scheduled on Wednesday night, the labor department said.

"Based on the result, 'no' prevailed," Labor Secretary Bienvenido Laguesma told reporters. "This result will be instructive to all parties concerned."

PAL majority shareholder and chairman Lucio Tan had declared that PAL will close down on midnight Wednesday (1600 GMT) unless the union agreed to waive their collective bargaining agreement for 10 years in exchange for a 20 percent stake and three board seats in the airline.