Proposed fines of up to $500,000 and potential imprisonment of up to 20 years under the draft Employment Relations Act (ERA) could hinder the advancement of micro, small, and medium enterprises (MSMEs) in Fiji. Edward Bernard from the Coalition of MSME Network expressed concerns, stating that these amendments contradict the government’s initiatives for boosting the sector.
Bernard noted that the Ministry of Trade, Cooperatives, MSME and Communication has made significant progress in enhancing the MSME ecosystem. He highlighted the recently launched National Development Plan, which aims to increase the contribution of MSMEs to the country’s GDP to 20 percent by 2027.
However, he warned that the severe penalties proposed could undermine the efforts of the ministries led by Hon. Manoa Kamikamica and Hon. Biman Prasad. Bernard emphasized that the proposed changes to the ERA are contrary to the Coalition Government’s goals for MSMEs and the private sector.
The MSME community seeks to comply with fair labor laws that promote a decent working environment for employers and employees alike. The network is urging the government to disclose the details of the proposed legislation.
In a call for transparency, the community has requested the Fiji Government to release the proposed amendments to the ERA and to lift the Non Disclosure Agreement imposed on employer members of the Employment Relations Advisory Board, which would allow their representatives to engage openly with all MSMEs about the changes.
Questions directed to Minister for Employment Agni Deo Singh regarding these concerns have not yet received a response. However, Singh mentioned he would wait for the next meeting of the Employment Relations Advisory Board on October 21, which includes representatives from the MSME Network, before making further comments.
The network includes various organizations such as the Fiji MSME Community (FMSMEC), Fiji Business Development Services Group (FBDSG), Fiji Islands Dance Association (FIDA), Viti Association of Visual Arts (VAVA), Duavata Collective, and the RoC Market Group.