The Fiji Commerce and Employers Federation (FCEF) has expressed support for the government’s recent announcement to maintain the current minimum wage without an increase in the near future. FCEF Chief Executive Edward Bernard highlighted that this decision fosters confidence among private sector businesses and potential investors, allowing them to plan their financial strategies with added certainty.
Bernard pointed out that a significant increase in the minimum wage—25 percent implemented in April, contributing to a total rise of over 80 percent in the last five years—has resulted in a stagnation of wage rates when compared to the escalating cost of living. He noted that local businesses, regardless of their size, are grappling with rising operational costs.
In a positive note, Bernard praised the government’s recent budgetary decisions, including a 2.5 percent reduction in the Value Added Tax (VAT) and a 10 percent cut in bus fares, which are expected to alleviate living expenses for many employees. He also underscored that employers are still contributing to healthcare through the one percent FNU levy, which funds access to private medical services for workers.
Looking ahead, Bernard emphasized the need for collaboration between the FCEF and the Fiji Trades Union Congress through the Employment Relations Advisory Board and the various Wages Councils. This partnership aims to ensure an equitable and transparent process for reviewing national and sector-specific wage rates, paving the way for a fairer labor market.
This situation reflects ongoing discussions regarding the necessary balance between adequate wage policies and sustainable business practices in Fiji. The cooperation between employers and unions is essential to foster a work environment that promotes both fair compensation and the stability of the local economy.
Leave a comment