KUCHING, Dec 21 — A union leader today advised coffeeshop workers in the state to file claims for constructive dismissal if their free accommodations and meals have been stopped by their employers over the minimum wage issue.
“Stopping existing accommodations and meals is to existing workers is a clear breach of contract,” Sarawak Bank Employees Union (SBEU) chief executive officer Andrew Lo said in response to a statement by the Kuching Coffeeshop and Restaurant Owners Association.
He slammed the association members as being irresponsible and arrogant for their decision to stop providing accommodation and meals for their workers next year.
“Those business that cannot afford to pay the minimum wage have no business to be in business and should close shop,” Lo said.
Yesterday, the association had said that its members had decided to stop providing accommodation and meals for their workers to reduce cost following the implementation of the minimum wage policy on January 1 next year.
The association chairman Teo Giap Liew had also said that the members might slash the number of workers and reduce working hours to save costs.
On December 18, the Human Resources Ministry had said that the federal government had decided to raise the minimum monthly wage to RM1,200 in major towns under 57 city and municipality councils while for the rest of the country, the minimum would remain at RM1,100 per month.
It had said the new minimum wage would take effect from January 1, 2020 for all employers and the order would be gazetted soon in line with the decision.
Details on the minimum wage according to hours and days as well as workers paid according to piece rate, trip, commission, tonne and task would be provided under the new minimum wage.
Among the towns and municipalities in Sarawak where the minimum wage policy is to be imposed are North Kuching, South Kuching, Miri, Padawan, Sibu, Kota Samarahan and Bintulu.
MOHR had said the minimum wage rate would continue to be reviewed to ensure it was in line with current needs and in line with the objective of achieving a minimum wage of RM1,500 a month in first five years of Pakatan Harapan’s administration.
