Sunday, November 1, 2009

Takings land in the wrong pocket

there is a very nice article in the Sunday Star, 1st November 2009, in page F28 title Takings land in the wrong pocket written by Joseph Loh. on the Service Charge levied by certain Food Outlets and Hotels

for the full article go here

some highlight extracted.

"only a portion of the service charge they pay goes to the serving and kitchen staff"

"a random check on 21 food and beverage outlets in PJ, Sunday star discovered the 18 imposed a 10% service charge, but only 13 distribute it partially back to their staff in one form or other. "

"in the hotel industry, he says (Battistotti GM of G Hotels), it is standard practice to retain 10% of the service charge for brakages and staff events. But the Mahority oof it (90%) goes back to the staff and is distributed using a points system. Higher- rank and senior staff usually get more"

"service charge is imposed to give employeess better income"

"as a rule of the thumb, the servicecharge portion make up 50% of an employee's take-home salary"

"they are not getting tbe full benefit of it"

"Ganesh*, the manager of a chain of Indian cusine restaurants, says that 60% of service charges goes back to the staff"

"This begs the question - who responsibility is it to pay the worker? Is it the employer';s or the customer's?

"Rajasekaran (Consumer Research snd Resource Center chief executive officer) belives imposing sercice charge only bebefits the employer while the employee is hugely disadvatage. Because of service charge, basic wage for hotel emplyees is kept very low he says"

Hotel workers may only get about RM300 to RM400 in basic wages, and the rest is from service points. EPF contribution is base on the basic wage portion only" he says, highlighting the case of a hotel worker of more then 30 years who only had RM30,000 in EPF Savings upon retirement.

"The current practice of service charges is one-sided - the people who lose out are the workers. Employers are take care of but not the employees." opines Rahasejaran.

as i said nice article, and as some one in this industry i agree 101%.

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