PENNYWISE RESCINDS DECISION

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Pennywise Cosmetics Limited has decided to backtrack on its initial decision to remove what it had described as the "perk" of providing paid lunch hours and 15-minute breaks for employees with less than four years of service. Business Editor Joel Julien has more in this report.

Transcript

00:00 During an interview in Wednesday's Express Business Magazine, Pennywise

00:04 director Dr. Sivan Palady confirmed that in an effort to address the increased

00:08 labor cost stemming from the amended minimum wage and to prevent passing on

00:13 this additional expense to customers, they devised an alternative solution. On

00:18 January 1st, the country's minimum wage was increased by $3 to $20.50

00:23 an hour. Palady said, "With this minimum wage change, it is a big

00:28 change. So obviously it is either we raise our prices or we find ways to

00:33 minimize the loss." And so what Pennywise opted to do was to no longer

00:38 pay staff working there less than four years for their lunch hour and 15-minute

00:42 break. This decision would have affected around 25% of Pennywise's employees or

00:49 around 400 people. Palady went on to explain, "The paid lunch hours was a

00:54 perk and everyone in their interview was told this is a perk. It is not an

00:59 entitlement. Essentially, their salary, most of them if not all, their salary is

01:04 increasing or remaining flat." With the change, minimum wage earners at

01:09 Pennywise would have walked away with around the same salary they made before

01:13 the minimum wage increase was implemented. However, this decision did

01:18 not sit well with the public and on Thursday, following several calls from

01:22 concerned citizens on the changes to its terms and conditions of employment,

01:26 Pennywise said it decided to revert to the original agreement. A statement from

01:31 the company said, "We wish to advise our valuable employees and the concerned

01:34 public that we have decided to revert to the original terms and conditions as

01:39 applicable. The decision has been made following advice from our industrial

01:43 relations consultant as we seek to continue to comply with the provisions

01:47 of the Minimum Wage Act and other applicable labor laws."

01:54 [BLANK_AUDIO]

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