FTUC Responds to FCEF and FHTA On Labour Law Review

  • October 14, 2024

FTUC Press Release 10 /24

The FTUC is surprised at the recent statement issued by the Fiji Commerce and Employers Federation (FCEF) and the Fiji Hotel and Tourism Association (FHTA) expressing grave concern over the proposed amendments to the Employment Relations Act.

The FTUC and FCEF have been involved in the review of the Labour Laws since 2012, some 12 years now. It was agreed that the labour laws must:
i. Comply with all ILO core Labour Standards.
ii. Address all concerns of the ILO Committee of Experts Reports over many years.
iii. Include all Conventions ratified by the Fiji Government.
iv. Address any matter that the Parties would wish to discuss in the current ERA.

Indeed, the previous Government had annually assured the ILO to fully comply with the Core Labour Standards. The Coalition Government also gave a similar assurance to the ILO and to the people of Fiji during the last election campaign. The FTUC provided a list of issues that it thought was causing industrial strife, while the Employers did not provide any matters that concerned them.

The process agreed upon with the Employers was followed over numerous meetings, some lasting two consecutive weeks. It was agreed that the process had taken far too long and that there needed to be a conclusion. More recently, since the election of the new Government, these meetings occurred more frequently and concluded the review. While there was agreement on more than eighty percent of the issues, there was disagreement on some other issues, mainly on the penalties. The Government was to decide on the issues that were not agreed upon. The FTUC argued that the penalties must act as a deterrent for employers to follow the laws. Currently, these penalties do not, and we see employers violate laws and let the courts decide over years while they continue to violate the laws and rights of workers.
The Government produced a draft of the amendments, which was sent to the Employers and the FTUC for comments. The FTUC commented on the draft, while the Employers failed to act at all. The FTUC met with the Ministry of Labour and pointed out the areas that were agreed by the Tripartite Partners that were missed in the draft amendments.

The Government attempted to call a meeting of the Employment Relations Advisory Board (ERAB) Sub Committee responsible for the review in early August this year. The FTUC was prepared to attend, while the Employers advised that they were too busy to attend until the end of the month. This was simply an attempt to delay the process so that the September deadline would not be met. The Government then convened the full ERAB meeting, which was attended by all parties, including the CEO of FHTA. As soon as the Permanent Secretary welcomed all to the meeting, the Employers’ representatives decided to walk out. They did not participate, nor did they respond to the Government’s invitation to comment on the draft Bill. We are aware that the Government has repeatedly invited the FCEF to participate in good faith in the process but was unsuccessful. Yet in today’s news we hear of the CEO stating that all parties must come and discuss at the table.
It has become clear that FCEF has no intention of participating in the process, nor do they want to see changes to the ERA despite agreeing to the process and the terms of reference as stated. The same FCEF had no issues with the previous Government when it imposed changes without any consultation with the Tripartite Partners. The FCEF was silent on the process, which it harps about now, having not diligently participated. The 16 long years of the previous Government were the golden years for FCEF, including a reduction in the FNPF contributions on which FCEF had no issues with that even though no process was followed only because employers stood to gain millions of dollars. The new proposed changes have become unacceptable to them, making it hard for FCEF to accept and adjust. During those years, workers and trade unions suffered and were targeted.

The same old threats about the economy, business closures, and job losses, which have been touted by Employers for decades whenever any changes occurred, are old and discredited time and again. The Minimum wage issue is an example. The argument about small and medium enterprises not being able to pay proposed fines is laughable. It appears that FCEF is suggesting that the laws must not apply equally to all, more so when some employers in Fiji wilfully engage in wage theft by failing to comply with the law and pay workers their rightful dues or unlawfully making deductions from wages and salaries, while at the same time vigilantly ensuring that workers do not steal and punishing them with dismissal, endangering their entire livelihood. It is not acceptable for Employers to disregard workers’ rights simply because they are small or medium-sized.

What we see is that the big Employers who are members of the FCEF and FHTA are attempting to hide behind the small employers as they usually do. The Law, as it stands, does not comply with the ILO Standards and the Report of the Experts.
The FTUC is very disappointed with the conduct of FCEF in recent times, which we note is being disruptive and merely trying to delay the conclusion of the review. Twelve years is far too long for any review. It is time that FCEF understands that the good times they enjoyed with the past Government over 16 or more years are over. Fiji has a responsibility to ensure that it respects international standards and does not continue to behave like a rogue State as it has in the past.

As for FHTA, it is time that they concentrate on its members to stop exposing our hotel industry as a fine example of Corporate Greed. We have seen that hotel rates have shot up by more than 300%, while workers have been given a wage adjustment of only 3 to 5% and in some cases none so far. I do not understand the FHTA’s cry about business closures and inability to pay fines. It is time that both FCEF and FHTA encourage employers to follow the laws and not protect those who do not wish to comply. If employers comply with the laws, they need not worry about fines.

The FTUC urges the Government to ensure that they stand by the promises they have made to the workers of Fiji and their commitment to the ILO without any further delay. It is time to do the right thing and not protect people who do not wish to be held accountable.

Felix Anthony
National Secretary

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