In about-turn, PKR defends service charge after MP calls for new law
(Malay Mail Online) – PKR defended the service charge imposed by hotels and food and beverage outlets today, just days after a lawmaker from the party called for a new law to regulate the fee.
PKR vice-president Chua Tian Chang (pic) urged consumers not to push for the removal of service charge imposed by hotels and food and beverage outlets, saying that such fees are a lifeline to the often underpaid workers in the service industry.
“Keadilan has no plans to call for its reduction or removal,” Chua said in a joint press conference with the party’s Workers Bureau chairman Abdullah Sani Abdullah Hamid at PKR’s headquarters here today.
Bayan Baru MP Sim Tze Tzin said last Saturday that PKR lawmakers are planning to table a private members’ Bill in Parliament to set up regulatory control of the service charge.
The PKR strategic director had said the current service charge rate of 10 per cent is exorbitant when considering that service standards remain at “disappointing” levels adding that the service sector is also monopolised by foreign workers, many of whom do not speak either Malay or English, lax on cleanliness and not polite to customers.
Chua, however, said today that he and Abdullah Sani had clarified the matter with Sim, claiming that PKR does not intend to table a private member’s Bill on the service charge.
“We will propose to discuss the issue in other ways such as during debates and motions but not a Private Members Bill. Everyone knows a Private Members Bill brought up by the opposition especially will not see the light of day,” he told reporters, adding that Sim’s statement was misunderstood and misreported.
Chua, popularly known as Tian Chua, also pointed out that service charges have been in existence even before the Goods and Services Tax (GST) came into effect on April 1.
When asked about the practicality of abolishing the service charge and replacing it with a tipping system which would allow consumers to indicate their satisfaction with services provided, Chua said such a system would result in unfair income distribution.
“You must understand that everyone in an organisation is responsible in giving good services. It is unfair to only tip the bellboy or the receptionist in a hotel for an example, when the entire hotel is responsible for their customer’s satisfaction…it is a teamwork,” said the Batu MP.
Putrajaya said last week it will only allow service charge to be imposed on customers by establishments that have a collective agreement (CA), following the public outcry over the continued existence of the charge post GST implementation.
