AWARD

Anna Ng Fui Choo:

[1] This is a Ministerial reference made under s 26(2) of the IRA dated 29 July 2015 arising out of the trade dispute in respect of "Minimum Wages & Service Charge Conversion" between Bayview Hotel Georgetown Penang (wholly owned by Bayview Hotel Sdn Bhd) (the Hotel) and Kesatuan Kebangsaan Pekerja-Pekerja Hotel, Bar dan Restoran, Semenanjung Malaysia (the Union).

[2] It was agreed that the decision of this case would bind Case No: 3/3- 585/15 between Bayview Hotel Sdn Bhd (Bayview Beach Resort Penang) v. Kesatuan Kebangsaan Pekerja-Pekerja Hotel, Bar dan Restoran, Semenanjung Malaysia. This order was duly made upon the consent of both parties. The two hotels herein belong to the same Group and the same witnesses would have appeared for the respective party in each of the case.

Background

[3] The Hotel averred in its Statement of Case (SOC) that the dispute arose over the issue of the partial conversion of the service charges by the Hotel to constitute the minimum wages under the Minimum Wages Order 2012 (MWO), whilst the parties were in the process of negotiating their 9th Collective Agreement (the 9th CA), which was meant for the period from 1 June 2012 until 31 May 2015. The 1st collective bargaining meeting between the Hotel and the Union in respect of the 9th CA was held on 28 November 2013 (p 2 of the Hotel's Bundle of Documents 1 (COB1) while the 2nd collective bargaining meeting was held on 19 March 2015 (p 3 of COB1). As parties could not agree upon the method of conversion of the service charges, the Hote