PRIME Minister Sitiveni Rabuka believes an $8-an-hour minimum wage is not sustainable for Fiji at present.
Mr Rabuka was responding to calls for the national minimum wage to be increased, including calls from the Fiji Trade Union Congress.
Asked whether Government had plans to increase the minimum wage, he said there was a desire to do so but present economic circumstances made it difficult.
“There is a wish to do that. We are not able to do it,” the Prime Minister said.
He said any increase in wages had to be considered alongside productivity and the ability of businesses and the economy to support higher wages.
“So this thing involves everybody. So it’s got to be the productivity and the rewards.”
He said the call for an $8-an-hour minimum wage was unsustainable at the moment, “particularly with all the forces bearing on Fiji’s economy at the time”.
The issue of the minimum wage has been a subject of ongoing discussion between Government, employers and workers’ representatives.
Trade unions have argued that workers need higher wages to cope with the rising cost of living, while employers have raised concerns about the impact of higher labour costs on businesses.
He said Government recognised the desire for better wages but had to take into account the broader economic situation.
He added productivity would need to be considered alongside any future increases in wages.
