KESATUAN KEBANGSAAN PEKERJA-PEKERJA HOTEL, BAR DAN RESTORAN SEMENANJUNG MALAYSIA v. NEW YORK HOTEL JOHOR BAHRU (IMEJ KLASIK SDN BHD)

[2017] 2 MELR 116
Industrial Court, Kuala Lumpur
Anna Ng Fui Choo
Award No: 402 of 2017 [Case No: 3/2-1240/15]
Anna Ng Fui Choo

Trade Dispute : Collective agreement - Salary structure - Whether minimum wage could incorporate service charge - Whether salary adjustment based on employees years of service could be an addition to the minimum wage - Whether employer had the financial capacity to pay the salary revision

This trade dispute concerned the proposed three year term 2nd Collective Agreement ('CA'). The salary structure was the only article disputed. The employer opined that basic wage should include service charge since the employers in the hospitality industry had been practising it and other industries were using different forms of payments to enhance their employees' salary. The employer's witness admitted that they had used the service charge to top up the employees' salary. The union claimed the following: (a) minimum wages means basic wages and it should not include other components; (b) recent court cases had recognised minimum wage as a stand-alone; and (c) any service charge given must be in addition to the wages and not part of it. The union's witness testified that the minimum wa

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