Fiji’s employers have once again expressed their frustration towards the government regarding the allocation of funds collected through the Fiji National University (FNU) levy, which totals one percent of employers’ gross emoluments. Current practices have seen significant portions of this levy redirected from its intended purpose of workforce training. In submissions to the Parliamentary Standing Committee on Economic Affairs, representatives from the Fiji Commerce and Employers Federation (FCEF) highlighted an alarming statistic from 2022: out of $23 million collected in levies, only $2.3 million—merely 10 percent—was available for training, while 50 percent has been shifted to government medical schemes and 40 percent to the Accident Compensation Commission.
This misallocation has sparked widespread concern, particularly from FCEF’s CEO Edward Bernard, who emphasized the urgent need to restore the levy to its original intention of funding employee training and upskilling. The previous government’s directive in 2019 significantly altered the distribution, prompting a call for the current administration to reconsider this distribution and prioritize workforce development over other spending.
Further complicating matters, the proposed Work Care Bill aims to maintain these misallocation patterns by continuing to divert 40 percent of the levy to accident compensation rather than investing it in necessary training programs. This situation poses a threat to Fiji’s already strained labor market, as many employers find themselves footing the bill for training despite contributing to the levy.
FCEF’s efforts to engage in meaningful discussions with government ministers have led to limited action so far, with criticism directed at the lack of transparency and collaboration in legislative processes. Bernard urged that the government address these issues more responsively, underscoring the need for investment in skills development to combat the growing skills crisis exacerbated by inadequate training funding.
Amid these challenges, there is hope that persistent dialogue and advocacy may lead to legislative reforms that can establish a more balanced framework for workforce training funding in Fiji. By prioritizing workforce development, both employers and employees stand to benefit, fostering a more capable and skilled workforce that meets current job demands. The ongoing discussions signal a chance for collaborative efforts that could strengthen Fiji’s economy and support sustainable growth.
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