Photo: RNZ / Samuel Rillstone
The two major employer representative organisations in Fiji have sounded alarm bells over the government's proposed amendments to the country's emplyoment laws.
The Fiji Commerce and Employers Federation (FCEF) and the Fiji Hotel and Tourism Association (FHTA) are "warning of severe economic consequences" if the draft bill to amend the Employment Relations Act (ERA) 2007 goes ahead in it current form.
The legislation, which includes "poorly disguised pro-union clauses", would have far-reaching consequences for the country's economy, especially for the Micro, Small, and Medium-sized Enterprises (MSMEs) that form the backbone of Fiji's workforce, the organisations said.
In a statement on Friday, FCEF and FHTA said, despite ongoing concerns about the lack of inclusive consultations, the government seems determined to push through these changes.
They are urging Sitiveni Rabuka's coalition government to reconsider, warning that the amendments could lead to significant "job losses, business closures, and the erosion of investor confidence">
The organisations are also disappointed about the absence"tripartite consultations" with employers and unions, which they say are a key process in shaping employment policies.
"This law does not discriminate in application between the 'Small Bread Shops' around our local neighbourhoods and 'bigger corporates' including Government as well," the FCEF's acting chief executive Savenaca Baro and FHTA's Fantasha Lockington said in a joint statement.
"MSMEs comprise over 60 percent of employers in Fiji, operating on thin margins, cannot withstand the proposed fines of up to $500,000.00 or a term of imprisonment of 20 years or both as suggested by this new draft bill."
The organisations said MSMEs, operating on narrow profit margins, are still recovering from the economic strain of the pandemic and recent global economic challenges.
"These penalties far exceed MSMEs financial capacity and go against Government's good intentions to improve the ease of doing Business in Fiji.
"This will undoubtedly lead to potential closures and widespread job losses. The government must recognize the devastating impact these measures would have," they added.
Angi Deo Singh Photo: Supplied/FTUC
However, the Employment Ministry reaffirmed its commitment to fostering inclusive dialogue during the review of the ERA Act.
Employment Minister Agni Deo Singh said that his ministry actively engaged with its tripartite partners, including the FCEF and the Fiji Trades Union Congress (FTUC), in accordance with International Labour Organisation (ILO) Convention 144 on tripartite consultations.
According to Singh said formal tripartite discussions began in February 2023, giving all parties enough time to submit their views and proposals.
He clarified that the Ministry had invited the FCEF to meet and share their concerns on multiple occasions, but the FCEF postponed or failed to submit their input by the given deadlines.
In spite of this, the Ministry remains open to continued consultation and has extended another invitation for further discussions on 21 October.
Singh expressed disappointment that the FCEF had resorted to media statements instead of continuing dialogue.
"The Ministry has been accommodative for the past two years and remains open to hearing all grievances to ensure fair outcomes for both employers and workers," he said.