The Fiji Commerce and Employers Federation (FCEF) and the Fiji Hotel and Tourism Association (FHTA) have expressed their concerns regarding proposed amendments to the Fiji Employment Relations Act 2007 (ERA).
In a joint statement, they warned that the revisions would negatively impact micro, small, and medium enterprises (MSMEs), grant excessive authority to employment officers, potentially lead to job losses, undermine the trust between employers, employees, and the government, and discourage investments in Fiji.
They emphasized that MSMEs, which represent over 60% of employers in Fiji, often operate on narrow margins and cannot absorb proposed fines of up to $500,000 or face prison terms of up to 20 years as suggested in the draft Bill. They pointed out that this law would apply indiscriminately to both small local businesses and larger corporations, including the government.
Additionally, the proposed amendments would give employment officers vast powers, allowing them to bypass established mediation processes and access business assets, which they believe undermines due process and subjects businesses to arbitrary penalties without the opportunity for fair resolution.
FCEF and FHTA highlighted that mediation has historically been a key component in resolving employment disputes, and they criticized the introduction of a new “Form 9” that promotes litigation over mediation as detrimental to the trust among employers, employees, and the government.
They noted that mediation with the Ministry of Employment is free, quicker, and simpler compared to the complexities of litigation. Recent statistics from the Ministry of Employment reveal an 85% success rate in mediation cases, showing its effectiveness. In contrast, they expressed concerns that criminalizing aspects of the ERA could set a worrying precedent, escalating regulatory issues into criminal offenses, potentially discouraging both local and foreign investment.
The organizations expressed that the proposed changes threaten the rights of employers, limiting their ability to manage their businesses effectively and creating a precarious environment for operations.
FCEF and FHTA have called on the Ministry of Employment to engage in meaningful dialogue with employers prior to advancing these amendments, stating their readiness for discussions that promote a fair employment framework for all Fijians.
In response, Employment Minister Agni Deo Singh clarified that the review aims to create a robust legal framework that benefits both workers and employers. He indicated that the ministry has been open to feedback since the formal tripartite consultation began in February 2023, highlighting ongoing collaboration with International Labour Organisation (ILO) drafters to incorporate inputs from all parties.
Mr. Singh mentioned that FCEF was invited to a meeting on September 24 but requested a postponement, and it is regrettable that they chose to take their concerns public instead of resolving them directly with the ministry. FCEF has been invited to a subsequent meeting on October 21, 2024.