Gardenia workers to file complaint

Alarmed by bankruptcy proceedings involving their employer, about 15 Pacific Gardenia Hotel employees are set to file a labor complaint due to three months to a year’s worth of unpaid wages.

Sara Flojemon, a kitchen staff member at the hotel, said she and over 10 of her co-workers would file a complaint against Pacific Gardenia to ensure payment of their back wages in case the business is closed or transferred to a trustee.

“We are not going against [hotel general manager Ron Sablan]. We have no other complaints against him. We just want to put it in record that we’re owed back wages. We just want our back wages protected, whatever happens,” Flojemon said.

On-island representatives of the U.S. Department of Labor now have a copy of delayed paychecks of Pacific Gardenia employees, Flojemon said.

The workers plan to file a complaint with both the Federal Ombudsman’s Office, which has jurisdiction over unpaid overtime work, and CNMI Department of Labor, which has authority over work done during regular hours.

Flojemon said she has not received at least 12 paychecks over the past year. Many of her co-workers are owed much more.

According to her, the hotel’s personnel do not receive their salary on the regular bi-weekly basis. Most of the time, they get only a half-month’s worth of salary within a period of one month—the result of a verbal arrangement where workers take turns in getting a paycheck.

There are also months when they don’t receive anything at all, she added.

Sablan will not be back from his off-island trip until next week. He could not be reached for comment.

Philippine Consul General Wilfredo Maximo said he met with Sablan on Monday to discuss the hotel’s situation and its plans for the workers. The estimated 35 Filipino workers at Pacific Gardenia compose majority of the hotel’s workforce.

“Mr. Sablan was very open and honest about [the unpaid wages],” the consul general said.

With Sablan’s knowledge, Philippine consulate and federal labor officials also met with some 30 workers on Wednesday to inform them of their various options in view of the hotel’s declaration of bankruptcy and the possible transfer of the business to a receiver.

“The initiative came from us. We wanted to allay their fears as to what may happen. We also wanted to reassure them that their concerns are being taken cared of,” Maximo said.

At the meeting, the workers were advised to file a complaint so that like those of Pacific Gardenia’s creditors, their claims will be documented and considered in the bankruptcy settlement.

Yesterday, the Philippine government donated six sacks of rice and canned goods to the workers.

Acting Labor director Joe Ada said regulations allow the CNMI Labor Department to open an agency case and grant the workers authorization to seek temporary work or a new employer, in case the employer has been declared insolvent or has filed for bankruptcy protection.

Pacific Gardenia filed for bankruptcy protection last week with the U.S. District Court. The hotel declared an estimated asset of up to $10 million and an estimated debt of the same amount.

The company is also facing a lawsuit filed by the Commonwealth Development Authority in the Superior Court. CDA alleges that, as of last Jan. 20, Pacific Gardenia Hotel and its officers—Ronald, Maria Ana, and Jeannette Sablan—owe CDA over $2.4 million, and are more than five years delinquent in their payment.

Last July, CDA asked the court to appoint a trustee to manage and collect the profits of Pacific Gardenia Hotel until the case against the hotel’s owners is resolved. CDA’s motion is still awaiting decision at the Superior Court.