Platinum Peril: An Investigative Study of the 2011 Outsourcing in Philippine Airlines
Calle, A. J., and Escaño, E. E. (2014) Platinum Peril: An Investigative Study of the 2011 Outsourcing in Philippine Airlines, Unpublished Undergraduate Thesis, University of the Philippines College of Mass Communication.
This thesis investigates Philippine Air Lines (PAL) outsourcing implemented on October 1, 2011 of its three departments – airport services, in-flight catering services and call center reservations. Using Agency Theory and Transaction Cost Analysis, the study traces the circumstances that led to the outsourcing, the process of its implementation and its effects to stakeholders. The researchers used purposive sampling, people trails, paper trails and review of numerous secondary sources to gather data. Outsourcing, when done in good faith and because of legitimate reasons, is a legal business strategy to cut operation costs. Under financial constraints, PAL implemented outsourcing, which affected around 2,600 workers. They were waiting to negotiate a new collective bargaining agreement after a 10-year moratorium. After a two-year legal dispute, a settlement agreement was signed on November 13, 2013. The findings of the study are journalistically written in a three-part investigative report.