THE Nadi Chamber of Commerce and Industry has strongly opposed a call by the Fiji Trades Union Congress (FTUC) for a national living wage of $8 an hour.
NCCI president Lawrence Kumar said FTUC was not acting in good faith by demanding an increase in wage rate under the current economic climate.
“Demanding a new wages system in an economic climate where businesses and even the Government are struggling to survive and continue to employ workers is not acting in good faith,” he said.
“We fully support the measured and evidence-based position put forward by FCEF (Fiji Commerce and Employers Federation) and urge all stakeholders to approach this matter with the economic well-being of Fiji at heart.”
He said Fiji’s minimum wage had already increased by 115 per cent since 2015 from $2.32 to $5.00 per hour representing an 86.6 per cent increase in just the past three years alone.
“This makes Fiji’s wage growth among the highest in the world.
“Notably, Fiji’s current minimum wage already exceeds Papua New Guinea’s by over 60 per cent, despite PNG’s GDP being four times larger.
“Any further drastic increase must be carefully weighed against Fiji’s unique economic challenges.
“The NCCI shares FCEF’s concern that FTUC’s call for an $8 living wage must be balanced against pressing national challenges, including low productivity, widening skills gaps, high youth unemployment, and rising costs of freight and production inputs.”
He said the World Bank had cautioned that Fiji’s economic growth could fall below three per cent unless the country urgently strengthens reforms, improves productivity, and rebuilds fiscal discipline.
“As recognised by the International Labour Organization (ILO) and the Universal Declaration of Human Rights, the establishment of a living wage must explicitly take into account country circumstances and ensure enterprise sustainability.
“In many comparable jurisdictions, including New Zealand, a living wage is not compulsory.
“NCCI urges that any review of wages be structured, transparent, and informed by economic realities and genuine consultation as called for by Prime Minister Sitiveni Rabuka.
“NCCI remains committed to advocating for a business environment that supports sustainable growth, fair employment and the long-term prosperity of the Nadi region and Fiji as a whole.
“We call on all parties to engage in balanced, evidence-based dialogue for the benefit of all Fijians.”
