business efficient articles new efficient business opportunities finance efficient deposit money efficient making art loan efficient deposits make efficient your home good income efficient outcome issue medicine efficient drugs marken efficient money trends self efficient roof repairing market efficient online secure efficient skin tools wedding efficient jewellery newspaper efficient for magazine geo efficient places business efficient design Car efficient and Jips production efficient business ladies efficient cosmetics sector sport efficient and fat burn vat efficient insurance price fitness efficient program furniture efficient at home which efficient insurance firms new efficient devoloping technology healthy efficient nutrition dress efficient up company efficient income insurance efficient and life dream efficient home create efficient new business individual efficient loan form cooking efficient ingredients which efficient firms is good choosing efficient most efficient business comment efficient on goods technology efficient business secret efficient of business company efficient redirects credits efficient in business guide efficient for business cheap efficient insurance tips selling efficient abroad protein efficient diets improve efficient your home security efficient importance

Hotel workers win back service charge, defend wage rights in Malaysia

25 July 2017 News
Printer-friendly version

When the government introduced a new minimum wage law in 2012, the hotel employers' association reacted by attempting to withdraw the distribution of service charge to workers and instead use service charge revenue to meet the new minimum wage requirements.

Several hotel chains - spearheaded by Shangri-La Hotels & Resorts - attempted to force changes in collective agreements to remove service charge distribution as part of hotel workers' compensation and to retain it as revenue. This so-called "clean wage" system was in fact a dirty tactic to take money from workers to pay the difference needed to meet the new minimum wage.

The IUF-affiliated National Union of Hotel, Bar and Restaurant Workers (NUHBRW) and Sabah Hotel Resort, Restaurant Employees' Union (SHRREU) launched a joint campaign against this wage theft, demanding that service charge continue to be distributed to hotel workers.


NUHBRW members protest wage theft in 2015

In a landmark ruling, the Federal Court has now upheld an Industrial Court decision that hotel workers must be paid minimum wages in accordance with the Minimum Wages Order 2012, over and above the service charge imposed and that 90 percent of service charge revenue be fully distributed to workers. This decision is retroactive to October 2013.