‘PAFCO using duty drop to axe workers’

June 04, 2008 07:53:59 AM

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The Pacific Fishing Company Employees Union is claiming that the drop in duty on canned fish would not affect company’s operation in any way like the company was asserting.

And union general secretary Tomasi Tokalauvere claimed that the company was using the drop in duty rates as a pretext to lay off workers.

PAFCO chief operating officer Chandra Prakash was out of the country and could not be reached for comment.

With food prices rising, the Government early last month provided some relief to Fiji’s poor, by announcing that some foods would have zero duty on it. It included tinned fish including sardines, tuna and mackerel, other canned fish.

But fish processing company PAFCO wrote to government saying the removal of duty from certain imported canned foodstuff such as fish would negatively impact on PAFCO's local canned foods.

The company said that imported products would be sold cheaper and their local products would remain stagnant.

It said some 500 people from the 1000 employed from the Lomaiviti Group could stand to lose their only means to livelihood.

But Tokalauvere claims otherwise. He alleges that the drop in duty rate on tinned fish would have minor impact because it was a secondary product.

“Our primary product is tuna loins which are exported to the United States and Bumble Bee is the recipient of that particular product.

“Our industry is not affected in the way they imply for the nation to perceive as going down. It is not.”

He estimated that tuna loin export was around 90 per cent compared to 10 per cent for other products (including canned fish).

Tokalauvere claimed the company wanted to lay off workers to streamline the labour force so as to cut down on costs.

And he alleged that this seemed an opportune time for them to cut down on the workforce.