Philippine Airlines, Union Reach Accord

Philippine Airlines’ management and largest union said Monday they reached a breakthrough agreement on a management-proposed plan to revive the airline, five days after the airline’s closure, a labor leader said. Details would not be released until given to union members. However, strong employee opposition to compromise continued Monday, as more than a thousand workers protested at the union’s office because of reports that their leaders had accepted a 10-year suspension of their collective bargaining agreement. The employees’ rejection of a previous contract with that clause led to the airline’s closure. Meanwhile, Cathay Pacific Airways Ltd. began flying domestic routes in the Philippines today to fill the vacuum left by the closure of the flag carrier. Cathay Chief Executive David Turnbull also said the Hong Kong-based company might be interested in buying a stake in PAL if it is put up for sale.