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SAINT LOUIS UNIVERSITY SCHOOL OF ADVANCED STUDIES GRADUATE PROGRAM

FINAL PAPER Current Business Conflict in the Business Organization By Ms. Karol Payas Paragoso

Course of Legal Environment of Philippine Business and Corporate Management (MGMT 204) For

Atty. Genevieve Shontogan Faculty Saint Louis University, Baguio City, Philippines

CONFLICTS IN THE BUSINESS ORGANIZATION 1. No COLA for hotel staffs For the past two years of my employment with the company, we were never given the incentive of Cost of Living Adjustment (COLA). The company explained that we already have the centralized tip in place of it. This violates the Wage Orders Nos. RB-CAR-05, RB-CAR-09 and RB-CAR-10.

2. Uniforms were being charged to our payroll The company provided me 2 sets of uniform blouse during my 2 nd week of employment and little did I know that it will be charged to my payroll for that month. The company claimed that once we resign, we need not to surrender the uniform since they have deducted it to my payroll. This is a violation of Labor Advisory No. 11 series of 2014 which states that deductions made from the employees’ wages for company uniforms, cash deposits for loss or damage, personal protective equipment (PPE), capital share or capital build-up in service cooperatives, training fees and other deductions not included in this advisory are unauthorized. 3. Managers and Supervisors are the only ones receiving Service Charges The hotel staffs were not given portions of Service Charges being collected from the room rates of the hotel. I believe this violates the Article 96 of the Labor Code which states “All service charges collected by hotels, restaurants and similar establishments shall be distributed completely and equally among the covered workers except managerial employees”. SOLUTION: We, the employees made the decision to ask for the assistance of the Department of Labor and Employment. Two officers from the department conducted a random on-site interview in the company a week after our report. Employees who were on duty that day were all interviewed and asked about the company and the benefits granted to us. All of the concerns above were addressed to the higher management of the company by the officers from the department. Days after the inspection, we received a memorandum regarding the matters mentioned above. From that day up to date, we are now receiving the rightful benefits. They also complied with the recent salary increase last which took effect last November 18, 2019....