The increase in wages will increase manufacturing costs, says Dayals Steels Pte Ltd general manager Anul Sharan.
During the minimum wage consultation in Ba this week, Mr Sharan queried if the review team from the Employment, Productivity and Industry Relations Ministry was also considering employers.
“The reason for that is when wages increase, manufacturing costs go up,” he said.
“And then on the other hand, we have importers who are bringing stuff from China, India, Malaysia and other places.
“So, what basically happens is, will we be able to compete with them because what I see, and I represent the manufacturing sector, is that by increasing the wage rate, the cost of manufacturing and overhead will go up.
“And if we are not able to compete with other overseas markets, obviously we will have unemployment because employers will have employees reduced to have their overheads minimised.”
Mr Sharan expressed hope there were clauses in the Employment Relations Act which covered employers.
The Employment Relations Act is the primary legislation governing employment relationships in Fiji. It covers various aspects, including employment contracts, working hours, wages, leave entitlements, termination procedures, employee benefits and protection against unfair dismissal.
“I have been raising this concern for more than 10 years.
“I think the Ministry of Labour is more of justifying employees only, there is no act that justifies the act of an employer.
“There are some clauses which say we need to have a contract, but what are the benefits for an employer?
“I think there should be some clauses in there where the employee understands that an employer is also entitled to provide you with employment to have some clauses in there.”
Review team member and USP academic Dr Maureen Fatiaki said they were taking on board the views of employers.
“We are going through the Fiji Commerce & Employers Federation (FCEF),” she said.
“We have already informed them, but in addition to that we are also going with the roadshow team to inform people, create awareness and get them to fill in questionnaires.
“We are targeting at least 400 employers from the ten wages councils.
“So, we need a representative sample so that we can make a better decision. Be rest assured that concerns of employers will also be taken on board so that a fair decision is made. We understand that the market is very competitive. The high inflation rate, economic conditions and many challenges that businesses face as well. We are consulting all the three stakeholders and be rest assured that after compiling views of all the stakeholders, a report will be prepared.”
