The Fiji Trades Union Congress has strongly opposed any proposal to reduce Fiji National Provident Fund contribution rates as a response to the ongoing fuel crisis, warning that workers would once again bear the burden of economic hardship.
FTUC National Secretary Felix Anthony described the reported proposal as a “lazy option” that would cost workers hundreds of millions of dollars in retirement savings.
“FTUC objects to any decrease in FNPF contributions as a cost cutting measure due to the fuel crisis,” Anthony said in a statement issued yesterday.
“This suggestion from the Finance Ministry is a lazy option that would see workers sacrificing hundreds of million dollars.”
Anthony said workers had already lost substantial retirement savings during and after the COVID-19 crisis when contribution reductions and FNPF withdrawal measures were introduced.
“We cannot have the same anymore,” he said.
The union leader said low FNPF balances among workers were already a major concern.
“Currently 86 per cent or 376,111 members of the Fund have balances less than forty thousand dollars,” Anthony said.
“This is a serious concern for workers and their families.”
Anthony argued that reducing contributions would only worsen retirement insecurity for workers already struggling with rising living costs.
“The cost cutting measures should not and must not fall on the back of workers of Fiji,” he said.
He also rejected suggestions that lowering contributions would provide relief through higher take-home pay.
“The suggestion that by decreasing the FNPF contributions by workers would see more money in their pay packs is a hoax. It’s workers’ own money that is going to be given to them,” Anthony said.
FTUC is now urging Government to abandon any plans to reduce contribution rates and instead focus on protecting workers’ long-term retirement security.
