MSMEs Fear Heavy Fines Could Stifle Growth

Proposed fines of up to $500,000 and potential imprisonment for up to 20 years under the draft Employment Relations Act could hinder the growth of micro, small, and medium enterprises (MSMEs). Edward Bernard from the Coalition of MSME Network expressed concerns that these amendments to the Employment Relations Act contradict the government’s objectives for the sector.

Bernard highlighted the significant progress made by the Ministry of Trade, Cooperatives, MSME, and Communication in enhancing the MSME ecosystem in Fiji. He noted the National Development Plan (NDP), launched by the Ministry of Finance, aims for MSMEs to contribute 20 percent to the GDP by 2027.

However, he warned that the proposed fines and prison terms could jeopardize the advancements made by the ministries, which are led by notable officials. Bernard emphasized that the proposed changes run counter to the government’s efforts to support MSMEs and the overall private sector.

He stressed that MSMEs are willing to adhere to fair labor laws that promote a decent working environment for both employers and employees. The coalition also urged the government to provide transparency regarding the legislation, asking the authorities to disclose the proposed amendments to the Employment Relations Act to the public.

The MSME community called on the Fiji Government to lift the Non-Disclosure Agreement (NDA) imposed by the Ministry of Employment, Productivity, and Workplace Relations on employer members of the Employment Relations Advisory Board (ERAB). This would allow representatives to engage openly with MSMEs regarding the proposed changes.

Questions directed to Minister for Employment Agni Deo Singh about the MSME Network’s concerns remain unanswered. However, Singh indicated he would wait for the upcoming ERAB meeting on October 21, which includes the MSME Network, before commenting further.

The network consists of various organizations representing the Fiji MSME Community, including the Fiji Business Development Services Group, the Fiji Islands Dance Association, and the RoC Market Group.

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