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88 Green vows to settle service charge overdue to employees

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By Leilanie G. Adriano
Staff reporter

LAOAG CITY—Regardless of any financial losses, the management of 88 Green, a private firm which took over the management of the government-owned Plaza Del Norte (PDN) has to pay what is due to its employees.

Rolando Lawas, PDN resident manager, formerly known as the Ilocos Norte Hotel and Convention Center has assured  the monetary claims regarding their employees’ share of the 10 percent service charge being collected by the Ayuyang Cafe to its customers have to be settled accordingly.

Responding to the May 11 privilege speech delivered by Sangguniang Panlalawigan member Vicentito “Toto” M. Lazo, a committee hearing was conducted at the Capitol Session Hall to thresh out the issue between 88 Green and its 90 employees.

The issue stemmed from the collection of 10 percent service charge being collected by the management yet the corresponding amount supposedly given to its employees in cash is given in kind, prompting several employees to complain about it.

Under the Labor Code of the Philippines, service charge is shared by the employer and employees. Specifically, 85 percent of the total amount goes to employees and 15 percent to the management.

However, instead of giving the amount in cash to employees, 88 Green has compelled its employees to avail the services of the PDN which will be automatically deducted to the accumulated service charge due to each employee.

Mr. Lazo reiterated the practice of 88 Green is “illegal” citing the labor code clearly states that benefits due to employees must be in the form of cash.

Following the conduct of committee hearing presided by SP member Joel Garcia along with Mr. Lazo, the local management of 88 Green requested that they be given at least 15 days to resolve the problem while a joint assessment report of the management and the Department of Labor and Employment will also be conducted to check on the labor law compliance of the hotel and convention center.

“The top management has instructed finance to come up with the realistic schedule of giving the service charge that was not availed yet,” Mr. Lawas said.

He also added the service charge will stay to benefit more of its employees.


“We have a new executive chef which has an international experience so I have high hopes in the next days to come,” he added. 
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