KUCHING, Jan 21 — The Labour Law Reform Coalition (LLRC) has questioned whether the Malaysia Singapore Coffee Shop Proprietors’ General Association’s (MSCSPGA) decision to charge customers an additional 5 per cent service charge during Chinese New Year (CNY) is “blatant profiteering”.
Free Malaysia Today (FMT) reported today that MSCSPGA confirmed its members could increase their service charge to 15 per cent for the first two days of CNY from the current 10 per cent.
LLRC deputy president Andrew Lo questioned whether the 15 per cent would go to workers or proprietors simply profit from it.
Lo said the MSCSPGA’s move could run foul of anti-competition laws since it appeared to be implemented collectively.
“It may also violate the framework of what service charges mean,” Lo argued in a statement.
“Service charge (SC) is a unique feature of the hotels and restaurants sector whereby the SC is collected by operators to be distributed to their employees.
“This is usually under the framework of a collective agreement signed with workers’ unions. This practice is to compensate for generally lower basic salaries,” he explained.
He said it was surprising that coffee shops are adding SC to customers’ bills.
“So we want confirmation that all the SC goes to workers. Otherwise, it is blatant profiteering,” he stressed.
FMT reported MSCSPGA president Wong Teu Hoon as saying the increased rate would serve as a tip for those working on the first two days of CNY.
He also said association members are free to impose the service charge at their discretion.
He pointed out that notices have been issued to inform customers of the increase and it was up to customers to patronise those premises.
The charge does not include the government’s 6 per cent sales and service tax. — The Borneo Post
