The Fiji Commerce and Employers Federation (FCEF) and the Fiji Hotel and Tourism Association (FHTA) have expressed serious concerns over proposed amendments to the Fiji Employment Relations Act 2007 (ERA). In a joint statement, they warned that these changes could negatively impact micro, small, and medium enterprises (MSMEs), increase the authority of employment officers disproportionately, lead to potential job losses, diminish trust between employers, employees, and the government, and ultimately deter investors from operating in Fiji.
They pointed out that MSMEs represent over 60 percent of employers in the country and operate on tight margins, making the suggested fines of up to $500,000 and possible imprisonment of up to 20 years unmanageable. The groups emphasized that the law applies uniformly, affecting not only small local businesses but also larger corporations and government entities.
The proposed amendments would give employment officers excessive powers that could allow them to bypass the established mediation process and access business assets directly. This change, they argue, threatens due process and exposes companies to arbitrary penalties without an avenue for fair resolution.
FCEF and FHTA stated that mediation has traditionally been crucial for resolving employment grievances, and the introduction of a new legal form favoring litigation and punitive measures undermines trust among the involved parties. They highlighted the effectiveness of mediation, which boasts an 85 percent success rate in resolving disputes, contrasting this with the complications of litigation.
The groups voiced alarm over the potential criminalization of ERA-related issues, suggesting that categorizing regulatory matters as criminal offenses creates a troubling scenario for employers. They are concerned this shift would discourage local and international investments, as businesses may feel threatened by laws that undermine their operational security.
FCEF and FHTA called for open and transparent dialogue with the Ministry of Employment prior to moving forward with any amendments. They conveyed their readiness to participate in discussions aimed at creating 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 noted that the ministry began formal consultations in February 2023, allowing ample opportunity for input from all parties. Singh confirmed that the ministry is working with International Labour Organisation (ILO) legal experts to incorporate the feedback from tripartite members, ensuring compliance with ILO standards.
He mentioned that FCEF was invited for a meeting on September 24 but had requested a two-week postponement. Singh expressed disappointment that FCEF took to the media instead of addressing the ministry directly, highlighting that the federation has been given another opportunity to meet on October 21, 2024.