Fiji’s Apprenticeship Levy Shake-Up Sparks Debate on Skills Gaps

Fiji’s apprenticeship program is facing urgent calls for a reassessment as experts express concerns that it is failing to produce a skilled and effective workforce for the nation. Hasmukh Lal, the Founder, Group CEO, and Managing Director of Oceania Education and Technology Solutions, argues that the once-thriving apprenticeship model established in the 1980s and 1990s has deteriorated significantly over recent years.

According to Lal, this decline can be traced back to pivotal decisions made by the interim government in 2009 and 2010, which led to the merging of the Tertiary and Productivity Education Programme with Fiji National University (FNU). While he acknowledges that the integration of training components might not have been problematic, he highlights that placing regulatory and administrative control of the 1 percent levy under FNU has created significant obstacles.

“The regulatory and administrative control of that 1% levy, which merged into FNU, makes FNU the judge, jury, and executor,” remarked Lal. He believes this scenario has hindered productivity advancement, skills training, and the effectiveness of the apprenticeship scheme, ultimately dissuading industries from investing in workforce development.

Lal elaborated that the 1 percent levy is allocated across three segments: 10% for training, 50% for medical costs, and 40% for accident compensation. This distribution has compromised the original intent of the levy, as only a fraction is now available for training purposes. “It’s a significant discouragement to the industry in Fiji concerning productivity development,” he stated.

He urges the coalition government to showcase political commitment by making the administration of the 1 percent levy independent from training providers, while also reviewing the distribution of these funds. Lal emphasizes that revitalizing the fast-track apprenticeship scheme, which was once pivotal in cultivating skilled labor, is essential for mitigating Fiji’s current skills shortages.

The need for reform in Fiji’s apprenticeship system is clear, and with the government’s attention, there is hope that these changes can help foster a more productive workforce.