Business(es) that cannot afford to pay (the) minimum wage have no business to be in business, said Lo.
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.