Every Fijian wants to see better living standards and greater opportunities for families.
This is true just as much for employers as it is for employees.
Recent discussions around minimum wages and the introduction of a living wage have renewed the national conversation on how wages should be determined in Fiji.
What is often overlooked, however, is that Fiji already has a wage-setting system in place.
Established under the Employment Relations Act 2007 and founded on tripartite engagement between Government, employers and workers, Fiji currently operates a wage-setting framework comprising four key systems:
• The National Minimum Wage;
• Sector-specific Wages Councils;
• Collective bargaining arrangements; and
• Market-based wage determination above statutory minimums.
The framework was designed to balance the needs of workers, the sustainability of enterprises and the wider social and economic commitments of Government.
Support for fair and balanced wages
“The Fiji Commerce & Employers Federation (FCEF) supports fair and balanced wages. We also support the principles recently reaffirmed by the Honourable Minister for Employment, Hon Agni Deo Singh, that wage-setting must be evidence-based, transparent, and developed through genuine social dialogue,” FCEF chief executive officer Edward Bernard said.
These principles are the very foundation upon which Fiji’s existing wage-setting architecture was built.
The priority, should be to strengthen the systems we already have before introducing new ones, said Mr Bernard.
The recent workshop run by the International Labour Organization (ILO) to review Fiji’s wage-setting system is timely and important.
It reinforces that, rather than replacing existing mechanisms, the focus is on improving coordination between institutions, strengthening compliance, and ensuring wage protections remain fit for a changing labour market.
Recent examples demonstrate that constructive engagement between employers and workers continues to deliver positive outcomes.
The signing of the new Master Agreement between Fiji Pine Group and the National Union of Workers is testament to this.
Through dialogue, job evaluation and established industrial relations processes, both parties reached agreement on improved wages and conditions.
This demonstrates that outcomes can be achieved when the system is allowed to work.
“The Master Agreement is a milestone for us,” Fiji Pine Group chairman Ratu Rakuita Vakalalabure said.
“As a business, we value our workers and we want to honour their contribution through fair treatment for them and their families,” he said.
“That’s why it was important for us to come to an agreement with the union that was fair and balanced.
“As a management team, this also serves as an important retention strategy.
“There is a skills gap issue, and we recognise that the fair treatment of our staff is an important part of addressing that challenge.”
Other support mechanisms
Equally important is recognising that wages are only one component of household wellbeing.
Over the years, governments have introduced a range of support mechanisms designed to reduce the cost burden on families.
Free education, free textbooks, subsidised and free bus fares, back-to-school assistance programs and social welfare support have significantly improved access to essential services and created greater equity for Fijians.
When viewed collectively, these measures represent meaningful support to households and contribute to improving living standards.
This broader support framework should form part of any conversation around wage adequacy.
This does not diminish the very real cost-of living pressures facing families.
Rather, it recognises that living standards are influenced by a combination of wages, social assistance and access to essential services.
Fair and balanced wages through strong institutions
Sustainable wages require strong businesses.
Strong businesses create jobs, invest in people and provide opportunities for future generations.
Sustainable wage growth, therefore, depends on productive enterprises, continued investment and a labour market supported by sound institutions.
Fair and balanced wages are achieved through strong institutions, evidence-based policy and meaningful social dialogue.
That is the approach that has served Fiji well, and it is the approach that should continue to guide us in the years ahead.
GAYLENE KAMALI is manager Advocacy & Corporate Communication for Fiji Commerce and Employers Federation (FCEF). The views expressed in this article are not necessarily the views of The Fiji Times.
