Wage increases suicidal, say employers

June 25, 2009 06:34:27 PM

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Increases in minimum wages will be suicidal for most small businesses, says the Fiji Employers Federation (FEF) as government gets ready to implement the new rates across nine sectors.

FEF chief executive officer Ken Roberts said the wages council should try to understand that implementing the new wage rates in the current situation will not be a good decision.

“Many small employers will not be able to absorb the new wage rate, which will give rise to unemployment,” he told FijiLive.

Labour Minister Filipe Bole told the International Labour Organisation recently that Fiji will implement the increases come July after an initial deferment at the beginning of this year.

Fiji Retailers Association president Himmat Lodhia said the increases would be unsustainable.

“If this happens, there will be layoffs and some of our members have already started making plans for shorter working hours. The business climate then was bad and things have gone worse now,” Lodhia said.

The proposed increments for the various sectors are as follows:

* Garment - up 20 percent
* Wholesale & Retail - up 20percent
* Printing - up 50c an hour for learners
* Building, Civil & Electrical Engineering - up 40cents-50cents
* Hotel & Catering - up 35cents
* Manufacturing - up 50cents
* Security - up 30cents
* Road Transport - up 5 percent
* Saw Milling - up 40 cents