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Larger employers have been making big profits for too long without raising wages, says leading economist Dr Wadan Narsey.
Narsey says employers have been given the option of showing their audited accounts to the Wages Council if they feel they can not cope with the new minimum wage rates that come into effect from July 1.
“There will be no doubt that small employers will feel the pinch of dishing out extra wages but the large employers can comply with the minimum wage rate,” he told FijiLive.
According to Dr Narsey, providing a 20 percent wage increment would mean a dent of thousands of dollars in the profit margin of larger employers.
However, he said the average worker had been denied increments for more than 10 years and had been living under the poverty line for a long time.
“It will make a difference to people who earn $70 a week. What can one buy nowadays with that much money?” said Narsey.
The Fiji Employers Federation said the increases would be unsustainable because they would come at a time of economic hardship.
Wages Council chairman Father Kevin Barr has told employers who think they will not be able to comply with the new wage regulation to have discussions with the Labour Ministry.
Barr said the global financial crisis affected not only the industries but low income earners as well.
“Some employers would be harder and some would be in resistance, but those who are facing very difficult times can always go to the Minister for Labour,” he said.
“And if they can open the books to the minister and show they are unable to pay, well they can be given an exemption but it was always hoped that no workers will be put off and no companies would close down in these hard economic times.”
The increments 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
