DAVAO CITY, Philippines — Former employees of New City Commercial Corp. (NCCC) in Davao City are demanding release of their remaining separation benefits after the company reportedly halted installment payments following their retrenchment in June 2026.
Retrenched workers reported to Davao City councilor Pamela Librado in a consultation on Sept. 16 that NCCC allegedly failed to release the three remaining tranches of their separation pay. They only received an initial payment on July 24 and the last tranche should have been released on Sept. 15.
The workers were retrenched effective June 8 following a notice issued in May 2026.
NCCC announced the closure of several branches in 2026 to streamline operations amid changing market conditions.
NCCC Mall VP, formerly Victoria Plaza, also closed Dec. 31, 2025, after 32 years of operation. The company acquired the property in 2019, but Robinsons Land announced its acquisition for redevelopment in April 2026.
Anna Liza Tigol, a former NCCC inventory clerk who worked for the company seven years, said about 300 workers were retrenched from different branches.
“We were expecting payments every 15th and 30th. It was supposed to start on July 15 and July 30, but they only paid us once, on July 24,” Tigol said in Cebuano.
The workers did not receive the payments scheduled in August and September. They have repeatedly sought updates from the company’s human resources office, but to no avail.
“What we really wanted to hear was a statement from the employer, from Sir Lafayette Lim and Ma’am Ivy Michelle Lim,” Tigol said, referring to NCCC executives.
The workers followed up with the company on Aug. 19, but they did not get a definite schedule for remaining payments.
Tigol said fellow retrenched workers could have understood difficulties the company faced, but management should have communicated directly with them about the situation.
“At least P5,000 every week until the balance is paid would’ve been okay, just so we have a way to sustain our family needs,” Tigol said.
Quitclaims, unpaid contributions
The workers questioned the quitclaims they were asked to sign when they received the initial payment.
Tigol said her quitclaim indicated a total amount of P51,688, but she initially received only P15,000. She said fellow workers were told they needed to sign the quitclaim before receiving the initial payment.
Some workers signed, while others refused, she said.
“I told my colleagues not to sign the quitclaim because the total amount due them was specified there. If we only received a portion, then that is the amount we should sign for,” she said.
Mark Cabel, who worked for NCCC nine years, gave a similar account.
“Why are we being asked to sign the quitclaim before receiving the full separation benefits,” he asked.
Cabel’s separation benefit was calculated at about P61,015 under the company’s 50-percent computation. He estimated he would receive the full amount of about P124,000.
Cabel initially signed the quitclaim after being informed his check would not be released without his signature. Later, he tore up the document sensing the arrangement was off.
Retrenched workers also questioned their mandatory contributions to the Social Security System (SSS), Pag-IBIG, and PhilHealth, saying their May and June contributions were not reflected on their records.
Tigol said it has been causing them difficulties accessing loans and other benefits.
In a Facebook statement, NCCC remained open to dialogue with the retrenched workers.
“We assure our affected employees that NCCC is committed to fulfilling its obligations. The company continues to work through the established process for the release of payments,” the statement read.
The company did not specifically address the workers’ allegations regarding quitclaims or government contributions in its statement.
City Council to take up workers’ concerns
Librado said her office would formally elevate the issue to the City Council after a committee hearing between the NCCC and the concerned parties is held.
“Since we have the Workers’ Protection and Development Ordinance and partner agencies involved, we might be able to discuss the situation through an interagency meeting involving the executive branch and other local government agencies such as CSWD, DSWD, and PESO,” Librado told the retrenched workers in Cebuano.
Lawyer Darwin Tenaja, who assisted the workers during the consultation, said the workers’ concerns could serve as a basis for the City Council to examine measures that could further protect workers affected by retrenchment.
“The purpose of this is to ensure that, in the future, this kind of situation won’t happen again,” Tenaja said, adding that the City Council could work on measures to protect workers affected by similar situations.
Meanwhile, Bagong Alyansang Makabayan-Southern Mindanao Region (BAYAN-SMR) spokesperson Rauf Sissay said the workers’ concerns point to broader questions about employee wage and benefits management.
“NCCC must ensure that their employees, both former and current, are well taken care of. They must be provided with adequate benefits. The workers should not be shortchanged,” Sissay said in Cebuano.
He said workers have the right to seek assistance from the City Council, but government intervention should also address workers’ longer-term security challenges.
He called on the Department of Labor and Employment (DOLE) to intervene and ensure that the workers’ claims and benefits are properly addressed.
“Comply with the requirements for your workers. They should not be left hanging.”
The affected workers are now waiting for the City Council’s next steps, including the proposed committee hearing. (davaotoday.com)
