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REBAN, Workers Lock Horns over Scrapping of Service Charge

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REBAN, Workers Lock Horns over Scrapping of Service Charge
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January 31: A confrontation has ensued between the Restaurant and Bar Association Nepal (REBAN) and restaurant workers affiliated to various trade unions after REBAN scrapped the 10 percent service charge which the workers had been getting since the last 11 years.

The association of restaurant owners on January 28 decided unilaterally to get rid of the facility which the workers had been enjoying by pointing to the consumers’ dissatisfaction toward exorbitant prices at eateries and the introduction of the social security fund.

The service charge was in effect since 2006 following an agreement between restaurant and hotel workers affiliated to various trade unions, REBAN and Hotel Association of Nepal (HAN).

Following the agreement, each employee working at hotels and restaurant had been getting between Rs 12,000 to Rs 25,000 per month in an average. Especially, workers of KFC, Nanglo and Roadhouse Café have been earning the most from the 10 percent service charge.

Following the agreement, each worker at present has been receiving average Rs 12,000 to 25,000. Workers are getting more payment via the agreement especially from KFC, Nanglo, and Roadside Restaurant and Bar.

Madhav Pandey, president of All Nepal Hotel Casino and Restaurant Workers’ Union, said it is unfair for the restaurant owners to do away with the service charge unilaterally under the pretext of social security scheme coming into effect soon.

 Pradip Kumar Jaiswal, president of REBAN, said that the association won’t step back for its decision. Jaiswal said that REBAN announced the scrapping of the service charge following complaints from the consumers regarding high cost and degrading service provided by restaurants and bars.

 

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