Fiji Employers Federation Calls Union's $8 Wage Demand 'Not Good Faith'

Suva, Fiji – The Fiji Commerce and Employers Federation (FCEF) has voiced strong reservations regarding the Fiji Trades Union Congress's (FTUC) push for an $8 an hour national living wage. FCEF Chief Executive Edward Bernard stated that such a demand, particularly in the current economic climate where businesses and the government are focused on survival and employment, does not represent good faith bargaining. Bernard emphasized that the FTUC's call must be weighed against Fiji's unique economic challenges, including persistently low productivity, widening skills gaps, high youth unemployment, and escalating freight and production costs.

“

Demanding for a new wages system in an economic climate where businesses and even the Government is trying to survive and continue to employ workers, is not good faith on the part of FTUC.

Bernard highlighted that Fiji's minimum wage has already seen a substantial increase of 115% since 2015, rising from $2.32 to $5.00 per hour. He noted that an 86.6% increase occurred in just the past three years, suggesting it might be one of the highest wage increases globally. Furthermore, FCEF pointed out that Fiji's current minimum wage is over 60% higher than Papua New Guinea's, despite PNG's GDP being four times larger. The federation also noted that many sectors in Fiji are already paying above the minimum wage, with sectoral wages having increased accordingly.

“

Fiji’s minimum wage has risen by 115% since 2015—from $2.32 to $5.00 per hour—and by 86.6% in just the past three years, making it perhaps the highest wage increase in the world.

The FCEF also mentioned its support for the standardization of meal allowances across sectors and recent increases based on evidence presented to the Wages Council. Additionally, household incomes have been boosted by $1.4 billion in remittances. The Federation aligns with Prime Minister Sitiveni Rabuka's stance that wage reviews must be structured, transparent, informed by economic realities, cost of living considerations, and involve balanced, evidenced, and genuine consultation. From Fiji's perspective, balancing the need for fair wages with the precarious economic realities and the imperative to maintain employment is a delicate act. While unions advocate for improved living standards, employers stress the need for productivity gains and fiscal discipline, as warned by the World Bank, to ensure sustainable economic growth rather than jeopardizing businesses already struggling with global economic headwinds. This debate is crucial for Fiji's path to recovery and long-term prosperity.

“

wage reviews must be structured, transparent, informed by economic realities and cost of living considerations and necessary discussions that require balanced, evidenced and genuine consultation.