Fiji’s employers are increasingly vocal about their dissatisfaction with how the government is allocating funds from a training levy they contribute annually. According to a submission presented to the Parliamentary Standing Committee on Economic Affairs by Deepak Rathod from the Fiji Commerce and Employers Federation (FCEF), out of the $23 million collected in 2022 from the mandated one percent levy paid by employers to the Fiji National University (FNU), only a mere $2.3 million was allocated for training purposes.
Previously, the entire amount collected from the training levy was directed solely towards workforce training. However, the recent distribution has changed significantly: 50% now goes towards government-funded medical schemes, 40% to the Accident Compensation Commission, and only 10% to FNU’s training programs. Rathod pointed out that governments have historically mishandled these funds, with UNESCO findings indicating that only 41% of previously allocated training funds actually benefited employers, leaving many feeling deprived of reimbursements for training initiatives they conducted.
This situation is aggravated by ongoing discussions around proposed amendments to the Employment Relations Act, which FCEF argues are heavily skewed against employers. With fears of rising operational costs and potential penalties, employers are calling for reforms that better reflect the realities of the labor market and support sustainable economic growth.
FCEF’s engagement with officials emphasizes the importance of substantial dialogue during consultations leading up to the Work Care Bill. The organization is advocating for comprehensive reforms that protect workers while also considering the financial realities faced by businesses, particularly small and medium enterprises.
This wave of discontent highlights not just a critical juncture for Fiji’s labor landscape but also an opportunity for collaborative efforts to create laws that equally benefit both employers and employees. By fostering an inclusive dialogue, there exists hope for establishing a more balanced workforce framework that can bolster Fiji’s economic future.
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