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🇫🇯 Fiji /Economy & Trade

Fiji employers urge caution on living wage, call for fixing existing wage system gaps

From FBC News · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

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  • The Fiji Commerce and Employers Federation (FCEF) urges careful assessment before implementing a living wage system.
  • FCEF highlights existing wage-setting mechanisms, including minimum wage, sectoral wages, and collective bargaining, which already allow for inflation adjustments.
  • The federation calls for addressing identified gaps in Fiji's wage framework, such as unclear criteria and weak consultation, before considering minimum wage increases or a living wage.

The Fiji Commerce and Employers Federation (FCEF) has advised caution regarding any move towards a living wage system, emphasizing the need for thorough evaluation against current wage structures and broader economic conditions.

FCEF Chief Executive Edward Bernard stated that Fiji already possesses multiple wage-setting mechanisms. These include minimum wage rates, sectoral wages, collective bargaining agreements, and performance-based systems. He pointed out that collective bargaining already provides a framework for adjustments linked to inflation and the cost of living.

Fiji already has several wage-setting mechanisms in place. These include minimum wage rates, sectoral wages, collective bargaining and performance-based systems.

— Edward BernardFCEF Chief Executive, explaining existing wage regulations in Fiji.

Bernard referenced a recent International Labour Organization (ILO) workshop that identified significant shortcomings in Fiji's wage-setting framework. Key issues highlighted were the absence of clear criteria for setting wages and insufficient consultation processes. The workshop also suggested that Fiji might be in violation of ILO Convention 131 on Minimum Wage Fixing.

The findings also suggest Fiji could be in breach of ILO Convention 131 on Minimum Wage Fixing.

— Edward BernardHighlighting potential violations of international labor standards based on an ILO workshop.

Further findings from the ILO workshop indicated that Fiji's median monthly wage stands at US$477, which is higher than that of 13 other countries in the Asia region. Additionally, Fiji's gender pay gap performance was noted as better than several countries in Asia and parts of South America.

Bernard stressed that the government should prioritize addressing these identified gaps and inconsistencies before contemplating any increase in the minimum wage or introducing a living wage. He advocated for an evidence-based system and more transparent consultation processes. Bernard also suggested that the 2026/2027 National Budget should concentrate on investment, business growth, job creation, and productivity.

The government should address these issues before considering any increase in the minimum wage or introducing a living wage.

— Edward BernardRecommending government priorities for wage policy.
DistantNews Editorial

Originally published by FBC News in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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