The recent closure of two factories in Fiji has resulted in over 100 workers losing their jobs, a disheartening development as the country’s manufacturing sector continues to face significant challenges. This news follows a week after prominent manufacturer Mike Towler announced the relocation of his company, Performance Flotation Developments (Fiji) Ltd, which will halt operations after 33 years due to escalating freight costs and increasing operational expenses. These closures highlight a troubling downturn in employment within the industry.

Towler’s company, a well-known manufacturer of life jackets in the Southern Hemisphere, cites soaring sea freight costs and declining productivity as major reasons for the decision to move operations to Jiangsu Province in China. He expressed transparency regarding the situation to his employees, assuring them they would receive redundancy pay and reference letters.

The closure of the factories adds to the woes of the textile and apparel sector in Fiji, which has seen job numbers shrink from 7,000 to approximately 4,000 since the onset of the COVID-19 pandemic. In similar fashion, Vonu Apparel Limited and Nagsun Apparel recently shut their operations, further diminishing employment opportunities.

The president of the Textile, Clothing, and Footwear Council, Inbamalar Wanarajan, cautioned that the sector is on the brink of further collapses as businesses grapple with rising costs and proposed amendments to local labor laws. These changes are perceived by many as detrimental to the already weakened manufacturing environment.

Additionally, the Trade Minister Manoa Kamikamica is currently engaged in discussions regarding the ongoing challenges without having provided public comments amidst these closures.

While this situation paints a bleak picture for many workers and employers in Fiji, it also reflects an urgent need for strategic action and investment in the manufacturing sector’s infrastructure. Flexible and innovative approaches may help revitalize the industry and foster resilience among businesses as they navigate these turbulent times.

Summary: Two factories in Fiji have closed, resulting in over 100 job losses, amidst the relocation of Performance Flotation Developments due to rising operational costs. With the textile and apparel industry shrinking significantly since COVID-19, experts urge urgent reforms and innovative solutions to restore competitiveness and resilience in the sector.