If it is just the verbal contract between labourers and coffee shop bosses and there is nothing to do with work permit terms and conditions and now the boss owing to the government fixed minimum wage policy could no longer afford to provide free food and accommodation, it is wrong for the boss to withdraw such additional voluntary benefit offered ? Isn't it insane to suggest those boss should stop operation if they can pay minimum wage and at the same time offering same benefit out of kindness?
Minimum basic salary now decided by Malaysia government instead of demand and supply curve. On the surface it is for the good of employee but in the long run employer might employ less people and go for automation doing away with unskilled employee that is non essential but still draw minimum salary of RM1200.
It is said that minimum wage ruling will benefit foreign workers instead of local population. In the end less people will be employed or more companies would stop operation. Will unemployment in Malaysia worsen?
When minimum wage fixed by authority not based on supply and demand but just to jump start Malaysia into high earning country is like pulling seedlings each day hoping seedlings will grow taller and faster; it brings disastrous outcome.
Many business could be forced to stop operation and move out while others cut cost and retrench less capable workers. Only "positive" development will be those with resources will invest in new technology and automation to do away with labourers. But in the end workers suffered.
Close shop if you can’t afford minimum wage, Lo tells coffeeshop operators
(Borneo Post - LIM HOW PIM ON DECEMBER 21, 2019, SATURDAY AT 1:29 PM)
KUCHING: Malaysian Trade Union Congress (MTUC) Sarawak Branch has cautioned that stopping existing accommodation and meals for workers at coffeeshops and restaurants here ‘is a clear breach of contract’.
Its secretary Andrew Lo, who pointed this out today, said business operators who could not afford the new minimum wage of RM1,200 should consider staying out of business.
“Those business(es) that cannot afford to pay (the) minimum wage have no business to be in business. They should close shop.
“Stopping existing accommodation and meals is a clear breach of contract,” he said in a statement today in response to what the Kuching Coffeeshop and Restaurant Owners Association announced yesterday evening.
Lo even warned coffeeshop and restaurant operators here not to “force workers to (go) on strike”.
According to him, the act of the association calling on its counterparts (non-members) to also stop providing accommodation and meals for workers infringes the Competition Act 2010.
He termed such an appeal as an “irresponsible and arrogant” move.
“Kuching Coffeeshop and Restaurant Owners Association is behaving like a cartel and (this is a) monopoly.
“Their statement of calling on other shops to stop (providing accommodation and meals for workers) is against the Competition Act,” added Lo.
He also advised workers who were deprived of accommodation and meals to file claims for constructive dismissal.
During a press conference yesterday evening, the association announced its decision to stop providing accommodation and meals for their workers, effective next year, following the increase in minimum wage.
Association chairman Teo Giap Liew regarded the coffeeshop-restaurant industry as being different from other industries, given that the operators are also providing accommodation and three meals a day for their workers besides adhering to the minimum wage policy.
He even added that should the costs of running a coffeeshop or a restaurant escalate further, they may have to contemplate reducing the numbers of workers and slash their working hours to cope with the challenging environment.
