Philippines Airlines said Wednesday that it expects to be hit with a bill of almost 60 million dollars in severance payments to staff when it farms out ground crew work.
The flag carrier wants to outsource its in-flight catering, airport services, and call-centre reservations divisions, at the cost of 2,600 jobs, in a bid to reduce its long-terms costs.
But the government's labour department has ruled that the firm must guarantee the staff being laid off will get a fair package while also making sure they will be absorbed by which ever company takes over.