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 indicated that these changes could negatively impact micro, small, and medium enterprises (MSMEs), grant excessive power to employment officers, risk job losses, undermine trust among employers, employees, and the government, and potentially discourage investment in Fiji.
They highlighted that MSMEs make up over 60 percent of employers in Fiji. Operating with tight profit margins, these businesses cannot afford potentially crippling fines of up to $500,000 or face imprisonment for up to 20 years under the new draft Bill. This legislation would apply indiscriminately to small local businesses and larger corporations, including government entities.
The groups warned that the amendments would empower employment officers excessively, allowing them to bypass established mediation processes and access business assets directly. They argued this could lead to arbitrary penalties against businesses without the possibility of a fair resolution.
FCEF and FHTA emphasized the importance of mediation in settling employment disputes, noting it is free, efficient, and straightforward compared to litigation’s complexities. They provided statistics showing an 85 percent success rate in mediation cases handled by the Ministry of Employment. They also expressed concern that turning regulatory issues into criminal offenses sets a troubling precedent, which could further deter both local and foreign businesses from operating in Fiji due to fears of aggressive punitive measures.
The two organizations voiced deep concern over the erosion of employers’ rights to manage their businesses effectively, stating the proposed changes would disrupt the balance in employer-employee relationships, making it difficult for businesses to compete and operate freely.
FCEF and FHTA are urging the Ministry of Employment to engage in transparent and meaningful discussions with employers before advancing these amendments. They are prepared to participate in dialogues that aim to create a balanced and fair employment framework for all Fijians.
In response, Employment Minister Agni Deo Singh stated the review’s goal is to establish a strong legal foundation that supports both workers and employers. He mentioned that the ministry had begun formal tripartite consultations in February 2023, allowing ample time for all parties to present their input. He reassured that the International Labour Organization’s legal drafters are collaborating with ministry officials to incorporate feedback from all stakeholders into the review, ensuring compliance with ILO conventions.
Minister Singh noted that FCEF was invited to meet with the ministry on September 24, but the federation requested a two-week postponement. He expressed disappointment that FCEF chose to address their concerns through the media instead of engaging directly with the ministry, which has been accommodating over the past two years. FCEF has been invited again to meet with the ministry on October 21, 2024.