Malaysia

Hotels associations laud govt move to exempt sector from minimum wage requirement

Meanwhile, MTUC blasts decision, says policy should be enforced ‘holistically’

Updated 4 years ago · Published on 25 Apr 2022 5:41PM

Hotels associations laud govt move to exempt sector from minimum wage requirement
Malaysian Budget and Business Hotel Association deputy president Sri Ganesh Michiel says the new minimum wage policy, although regarded as beneficial to workers, should be considered with the plight of employers in sectors most affected by the Covid-19 pandemic in mind. – Bernama pic, April 25, 2022

by Ian McIntyre

GEORGE TOWN – The Malaysian Budget and Business Hotel Association has lauded the move by the Human Resources Ministry to exempt the hospitality sector from having to comply with the revised minimum wage structure of RM1,500.

By May 1, the minimum wage will be raised by RM300 from the current sum of RM1,200.

Its deputy president Sri Ganesh Michiel said that although tourism has resumed, it will take time for the owners and managements of hotels to recover from some two years of lockdowns, where tourism practically came to a standstill.

He said that the new minimum wage policy, although regarded as beneficial to workers, should be considered with the plight of employers in sectors most affected by the Covid-19 pandemic in mind.

“A minimum wage of RM1,500 can be put on hold for now. We need to revive our businesses first. Eventually, once we fare well, there is no reason why the minimum wage can be incorporated into the hospitality sector,” he said in a statement.

Chairman of the Perlis/Kedah chapter of the Malaysia Association of Hotels, Eugene Alan Dass, shared his opinion, saying that the priority is now on reengaging workers as there is an acute shortage of hoteliers.

More steps must be made to entice people to work in the industry, but to expect hotels to pay them more may be asking too much for now, said Dass.

“We have hardly shifted into our fast gears. It takes time to revive the industry and, in the meanwhile, the hotels can do with any steps to cushion the financial losses which they have incurred in the past three years,” said Dass in an interview.

MTUC: all should enjoy minimum wage, irrespective of industry

The Penang branch of the Malaysian Trades Union Congress has disagreed with this assertion by hoteliers and the ministry, saying that they are misguided in allowing informal sectors such as tourism to be exempted from adopting the revised minimum wage.

“It would create mismatches in the job market,” said its Penang secretary K. Veeriah.

He said that it is a misplaced theory that those who suffered significant losses from Covid-19 should be excused from implementing the new minimum wage scheme.

In the first instance, the underlying objective of a national minimum wage is premised on the principle that all wage earners, irrespective of the economic sectors that they are involved in, ought to be paid a decent minimum wage.

This is for the simple reason that any wage below the national minimum wage would only result in a mismatch of minimum wage levels between one economic sector and others.

“Common sense will dictate that our government cannot be cherry picking on the fundamental issue of a national minimum wage. In our view a national minimum wage must be enforced holistically and not selectively,” Veeriah said in a statement.

“Obviously, we have inherited a government that seems to be beholden to the employers at the expense of the grossly underpaid working-class population,” he added.

Based on population demographics, the most vulnerable citizens are those who are trapped in the B40 and M40 income segments.

By exempting them from the benefits of the minimum wage of RM1,500, the government stands accused of being inconsiderate to their financial plight, Veeriah stressed.

Faced with the ever-escalating cost of living, they will continue to suffer financial stress thanks to the baseless selective implementation of the wage scheme, he said. – The Vibes, April 25, 2022.

Related News

Malaysia / 1mth

Budget 2027 should address stagnant middle-income wages, says Tengku Zafrul

Malaysia / 2mth

Saravanan urges Anwar to halt MACC probe, claims allegations baseless

Malaysia / 5mth

SB claims and due diligence failures raise fresh questions over Bestinet deal, says Charles Santiago

Malaysia / 1y

MTUC claims it was excluded from ILC Conference, former sec-gen clarifies

Malaysia / 1y

MTUC to hold Special Delegates Conference in August

Malaysia / 1y

MTUC dismisses its president over alleged misconduct

Spotlight

Malaysia

Mahathir’s RM150m defamation suit against Anwar faces uncertainty

Malaysia

Son shocked by father’s fatal hacking in FELDA settlement

Malaysia

Election Commission to meet on Nov 6 to set key dates for Sarawak polls

Malaysia

PH says final 72 hours could decide Melaka election outcome despite 70-80% target

Malaysia

RM3.28m Govt aid reaches 164 Indian community places of worship

Malaysia

Ismail Lasim holds off on new Negeri Sembilan exco appointments pending court decision

By Alfian Z.M. Tahir

Malaysia

Battersea project’s high upfront cost led to losses for Malaysian investors, says Anwar

Malaysia

Ras Adiba condemns unauthorised entry into missing TV host Zalina Azman’s home

You may be interested

Malaysia

Serian records Malaysia’s worst air pollution reading at 173 as haze persists in Sarawak

Malaysia

RM3.28m Govt aid reaches 164 Indian community places of worship

Malaysia

Kedah: The ancient Malay kingdom challenges the conventional narrative of Malayan history

Malaysia

Political funding bill recommendations to go before select committee

Malaysia

PN moves to discipline Bersatu, with suspension or expulsion possible

Malaysia

UMNO acted without any form of consensus - MCA warns 

Malaysia

Seventeen-year-old boy falls from balcony of his home in Kundang

Malaysia

Son shocked by father’s fatal hacking in FELDA settlement