MINISTER for Labour Jone Usamate says a sudden increase in the national minimum wage would have negative consequences on the economy.

While responding to a suggestion by Fiji Trades Union Congress national secretary Felix Anthony that the national minimum wage be increased to $4, Mr Usamate said Government had to look at the impact of the increase from all perspectives before making such a decision.

“We have to consider the ramifications of just jacking up the national minimum wage to $4,” he said during a panel discussion in Nadi over the weekend.

“What’s the impact that is going to have on the economy as a whole when you raise the national minimum wage across the board like that? What’s going to happen?”

He said the burden of cost of increasing the national minimum wage would also have an impact on smaller businesses.

“The cost is going to pass on to somebody,” Mr Usamate said.

“When the cost is passed on to somebody, it may lead to inflation and it may lead to the loss of our competitiveness with other countries. So as Government, we talk about these things.

“Yes, we must practise dialogue and good faith but at the end of the day, we must also be thinking about what is the best thing for every single person and not only the workers.

“We need to keep in mind what is in the best interest of the country, not just for today but also for the future.”

Mr Anthony said he agreed with the minister that there needed to be good faith and collective bargaining held between the concerned parties when it came to increasing the minimum wage.

However, he explained, employees living under the poverty line needed to be given a lifeline.

“We need to make sure that we treat the people at the bottom with a just wage,” Mr Anthony said.

“I know there are ramifications and we are not saying just bumping up the wage rate.

“I know there are smaller shops, but what we are saying is that we need to come up with something that will allow us to take care of these people while at the same time, we do the right thing for the poorest of our society.

“We have to lift these people out of poverty and simply just looking at the bigger picture and ignoring the poor is not the right thing because they are part of the bigger picture as well.”

The discussions were held during the Fiji Commerce and Employers Federation (FCEF) Top Executives conference in Nadi.w