KOTA KINABALU: The Sabah West Coast Coffee Shop Association yesterday appealed to the government to consider postponing the increase in minimum wages in view of the bad economy.
Its chairman, Yong Chee Yun, said raising the minimum wages would have a major impact as coffee shops would let go some of their workers to cope with the higher operational costs.
Furthermore, Yong said the prices of food and drinks would also increase when the new minimum wages came into effect.
He said this when asked to comment on the Minimum Wages Order 2016 (MWO 2016) which will take effect on July 1 this year.
In MWO 2016, the minimum wages are set at RM1,000 per month or RM4.81 per hour for Peninsular Malaysia, and RM920 per month or RM4.42 per hour for Sabah, Sarawak and Labuan.
Yong said the volume of customers patroning coffee shops had decreased recently, as many people found it hard to find a job in the current economy.
He said the implementation of the Goods and Services Tax (GST) had also forced several coffee shops into closure.
“This year, four to five coffee shops in Kota Kinabalu, as well as four coffee shops in Papar have closed down because of GST.”
Yong said the association had raised its objections when the minimum wage was first implemented two years ago in 2014, at RM800 for East Malaysia, but the government had not listened.
He pointed out that many coffee shop workers would be retrenched while the prices of food and beverages would also go up with the new minimum payouts.
Apart from minimum wages and GST, Yong lamented that coffee shops also had to bear expensive water tariff.
He said the water tariff for commercial units used to be 90 sen per cubic metre, but the new tariff was set at RM2 per cubic metre.
“This has doubled our operational costs.
“We used to pay around RM200 (old tariff), but now we have to pay RM400.”
In addition, Yong said many association members have complained about their coffee shop toilets being used as public toilets.
He said the public toilets provided by the Kota Kinabalu City Hall (DBKK) closed after office hours, therefore, the public would use the toilets at coffee shops instead.
“The toilets at coffee shops have become like public toilets. Even outsiders also use our toilets. There is cost incurred in each flush.”
That said, Yong hoped that the government could consider postponing the implementation of MWO 2016.
“We will be very disappointed if the government insists (on enforcing MWO 2016).”
The Sabah West Coast Coffee Shop Association has more than 400 members.
Human Resources Minister Datuk Seri Richard Riot said on Monday that the Minimum Wages Order 2016 will come into effect on July 1 this yea.
He said the order would involve all employers in the private sector, regardless of the number of employees they have, except domestic helpers (maids).
“The government has reviewed all recommendations submitted by the National Wages Consultative Council, and has taken a balanced approach and considered the interests of both employers and employees (before issuing the order),” he said.
The Malaysian Employers Federation (MEF) also urged the government to postpone the Minimum Wage Order 2016.
Its executive director, Datuk Shamsuddin Bardan said about 30,000 employees, especially at lower level, may be retrenched if MWO 2016 was enforced.
“Employers have to bear high cost if MWO 2016 is enforced and will retrench workers before July to reduce operating cost and retrenchment benefits,” he said on Monday.
MEF expects 60,000 workers will be retrenched this year if MWO 2016 is enforced on July 1.