Is 15 Service Charge For Cny Blatant Profiteering Asks Trade Union Group

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Labour Solidarity and Learning Resources Association deputy president Andrew Lo said the service charge was a unique feature of the hotel and restaurant sector, collected by operators to be distributed to their employees. (File pic)
PETALING JAYA: The increased 15% service charge that some restaurants will impose for Chinese New Year this year has drawn flak from a trade unions’ coalition.
In a statement today, Labour Solidarity and Learning Resources Association deputy president Andrew Lo asked if restaurant proprietors would take a cut of the 15% charge – challenging a restaurants’ association’s claim that it would serve as a “tip” for workers on duty on the first two days of the lunar new year.
He said the service charge was a unique feature of the hotel and restaurant sector, collected by operators to be distributed to their employees.
“This is usually under the framework of a collective agreement signed with workers’ unions, and is to compensate for generally lower basic salaries.
“We want confirmation that the full service charge will go to workers; otherwise it is blatant profiteering,” he said.
Earlier today, Malaysia Singapore Coffee Shop Proprietors’ General Association president Wong Teu Hoon was reported as saying member restaurants were free to impose service charges at their discretion.
He said the restaurants involved had issued notices informing customers of the increase, so the public could choose whether to eat at their premises or not.
“Usually, most restaurants maintain the 10% service charge or do not operate on those days,” he said.
This comes after a restaurant was criticised on social media for a notice informing customers of the higher service charge on the first and second days of Chinese New Year. - FMT

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