Concerns are growing regarding the proposed fines of up to $500,000 and potential imprisonment for up to 20 years under the draft Employment Relations Act (ERA), as they may hinder the development of micro, small, and medium enterprises (MSMEs). Edward Bernard from the Coalition of MSME Network stated that these proposed amendments contradict the government’s initiatives aimed at enhancing the MSME sector.
Bernard highlighted the Ministry of Trade, Cooperatives, MSME, and Communication’s efforts in making strides to improve Fiji’s MSME ecosystem. He referenced the National Development Plan (NDP) introduced by the Ministry of Finance, which aims to boost MSME contributions to the GDP to 20% by 2027.
He expressed that the severe fines and lengthy prison sentences could severely undermine the progress achieved by the ministries, which are led by visionaries Hon. Manoa Kamikamica and Hon. Biman Prasad. He believes that these changes do not align with the Coalition Government’s agenda for the growth of MSMEs and the private sector.
Bernard asserted that MSMEs are eager to comply with fair labor laws that promote a safe and equitable working environment for employees. The network urged the government to disclose details of the proposed legislation, emphasizing the importance of transparency. They called for the waiving of the Non-Disclosure Agreement imposed on employer members of the Employment Relations Advisory Board (ERAB), which would allow MSMEs to engage in open discussions about the amendments.
Attempts to reach Employment Minister Agni Deo Singh regarding the coalition’s concerns were unsuccessful. However, Singh indicated he would await the upcoming ERAB meeting on October 21, where representatives from the MSME Network will be present, before providing further comments.
The coalition represents various groups including the Fiji MSME Community, Fiji Business Development Services Group, Fiji Islands Dance Association, Viti Association of Visual Arts, Duavata Collective, and the RoC Market Group.