It’s not right to scrap service charge, says MTUC


  • Nation
  • Friday, 17 Apr 2015

PETALING JAYA: It is not right for the Government to abolish service charge abruptly and unilaterally, the Malaysian Trades Union Congress (MTUC) said.

Its secretary-general N. Gopal Krishnam said doing away with service charge would mean the Government was taking away almost half of the take-home salary of those working in hotels and restaurants.

“The salary in the hotel industry is low and we know that the money collected via service charge is disbursed to employees.

“If the Government still insists on abolishing service charge, MTUC will not hesitate to carry out industrial action, including pickets and strikes.

“We hope the Domestic Trade, Cooperatives and Consumerism Ministry will discuss with us before arriving at any decision,” he told a press conference here yesterday.

On the proposal to raise the EPF savings full withdrawal age from 55 to 60, Gopal said the status quo should remain, with those wishing to withdraw at 60 being given the option to do so if they wanted.

“We have never supported the idea of raising the withdrawal age limit to 60,” he said in response to a statement by Sarawak MTUC secretary Andrew Lo, who was quoted as saying that MTUC was in favour of extending the age of eligibility.

MTUC, which represents the interests of some 14 million employees, also argued that there was a need to raise minimum wage to RM1,200, as many members were currently struggling to make ends meet.

“We don’t have enough money even now. What are we talking about after 60?” said Gopal.

According to the National Minimum Wage Act 2012, there should be a review of the wage every two years.

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