Fiji Security group disagrees with opposition political parties on minimum wage

Three more prominent groups in the labour market have spoken out against proposals to raise the minimum wage rate.

The Fiji Commerce & Employers Federation (FCEF) and the Fiji Hotels & Tourism Association (FHTA) have issued a joint statement.

The Fiji Securities Industry Employers Association has also come out to oppose the proposed increases.

The National Federation Party is proposing $5 an hour, SODELPA $4 an hour and HOPE $10 an hour.

The FCEF & FHTA believe that the proposed minimum wage increases are very misguided concepts and misleading. They said: “The lack of consultation with the private sector and industry leaders has led to misreading the potential repercussions of these propos- als and the effects they will have on our economy and workforce.

“An increase to $4 and $5 an hour is essentially an increase of 49 per cent and 87 per cent respectively to the proposed wage rate.

“A significant proportion of this increase will be passed onto the consumers, which will also have a spiralling effect and an increase in inflation. “When the minimum wage rate is increased the flow on effect will be that those on current rates will also want their wages increased, thus creating more adverse impact on our economy.

“This wage increase would have more drastic impacts on SMEs, the corner shops in the informal sector rather than the medium and larger businesses in the formal sector.

“This will also have an adverse effect on labour employed in the informal sector, such as housemaids, gardeners, babysitters, etc. “Many of these will either be laid off or end up working reduced hours so that families that employ them can still run their homes within their budgets.

Fiji Securities Industry Employers Association president Vilikesa Raqio said they disagreed with the parties’ proposals. “Why should we sit down with them. We don’t want to waste our time. They are not running the Government,” Mr Raqio said. “That’s why the association won’t support them, but supports the government of the day.”

The Textile Clothing & Footwear Industry Council had earlier said 7000 jobs would be lost if proposed increases were allowed.