The Fiji Commerce and Employers Federation (FCEF) and the Fiji Hotel and Tourism Association (FHTA) have expressed their concerns over proposed amendments to the Fiji Employment Relations Act 2007 (ERA). In a joint statement, they warned that the changes could significantly impact micro, small, and medium enterprises (MSMEs), grant excessive authority to employment officers, lead to potential job losses, undermine trust between employers, employees, and the government, and deter investors from starting or continuing business operations in Fiji.
They highlighted that MSMEs, which account for over 60 percent of employers in Fiji, operate on narrow margins and would struggle to cope with the suggested penalties of up to $500,000 or prison sentences of 20 years. They argued that these proposed penalties do not differentiate between small local businesses and larger corporations, including government entities.
Furthermore, they criticized the amendments for empowering employment officers to circumvent established mediation processes and access business assets directly. This, they argued, would undermine due process and expose businesses to arbitrary penalties without a fair resolution.
The FCEF and FHTA emphasized the importance of mediation in addressing employment grievances, noting that the introduction of a “Form 9” for litigation and punitive measures would be detrimental, eroding trust among stakeholders. They pointed out that mediation with the Ministry of Employment is not only free but also more efficient, with a success rate of 85 percent in resolving cases.
The proposed stringent measures could shift regulatory issues into criminal offenses, which they deemed a dangerous precedent, potentially deterring local and foreign investment due to fears of punitive laws threatening financial security.
The organizations expressed deep concern over how the proposed changes would undermine employers’ rights to effectively manage their businesses and shift the balance of the employer-employee relationship, leaving employers vulnerable to unnecessary interference.
FCEF and FHTA are urging the Ministry of Employment to engage in open dialogue with employers to create a balanced and sustainable employment framework.
In response, Employment Minister Agni Deo Singh stated that the review aims to establish a solid legal framework that benefits both workers and employers. He highlighted that the ministry started formal consultations in February 2023, allowing ample time for all parties to provide input.
Singh added that the Ministry had extended invitations to FCEF for meetings and noted that it was unfortunate FCEF chose to address the media instead of engaging directly with the ministry, which has been accommodating over the past two years. FCEF has been invited once again to meet with the ministry on October 21, 2024.