Minimum wage a critical aspect: Prof Gangopadhyay
It is important to get right minimum wage that is not too costly for the employers: He says
The minimum wage is a very important device in registration of national income, says Consultant Professor Partha Gangopadhyay. Those were the remarks he made during the Ministry of Employment, Productivity and Industrial Relations review of the National Minimum Wage and Wages Regulations Public Consultation at the Tanoa International Hotel, Nadi yesterday. Professor Gangopadhyay is from the University of the South Pacific leading the National Minimum Wage review. “It is not easy to decide because if the minimum wage is too high it could kill the economy and if the minimum wage is too low it could also kill the workers,” Professor Gangopadhyay said. He added that the wellbeing of the workers and the wealth and health of the economy depends on the minimum wage. “We need to do some surgical operations to find out the right minimum wage that is goods for the workers and not too costly for the employers,” he said. He added that as per the 2015 report, there was a reduction in the inflation rate (the buying power being reduced). Professor Gangopadhyay said the minimum wage could increase the productivity of the economy Professor Gangopadhyay from his finding is suggesting a possible minimum wage of $2.68 because of social wage needs. Fiji Fresh Produce Exporters Association President Rizwan Khan said a delicate balance needs to be struck in setting the minimum wage. “If minimum wage is increased without striking a balance (increased too much) it will cut into the necessary investment pool for private companies,” he said. Mr Khan added that FFPEA is calling for a minimum wage of $2.50 taking into account adjustments for inflation. “It should also be noted that a percentage is also paid as social wage to our unskilled workforce in terms of transportation, meal and other social costs that sometimes is largely unaccounted for.” A similar event will be held at the Devos on the Park, in Suva today at 2pm.