Barr wants inflation-based wage adjustments

July 08, 2009 10:32:53 AM

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Fiji’s Wages Council chairman Father Kevin Barr wants to see inflation-based annual adjustments to minimum wage rates in the sectors covered by the council.

Barr told FijiLive he would like to see a “modest increase” in wage rates next July, following increases across 10 sectors effective July 1 this year.

He said the Wages Council was meant to look at wage increases every year because “inflation is up every year”.

He clarified, however, he would like to see “wage adjustments, not increases”.

“There’s a difference between wage increases and adjustments. People below the poverty line need their wage adjusted. Business costs increase annually but employers are always reluctant about wage increases. They’ve got to realise that wages must increases as well.”

Barr did not say what kind of wage adjustment he would like to see next July.

“I can’t say offhand. It depends on meetings of the wages councils, which are yet to be held.”

Barr said 60 percent of the working population were covered by the wages council and were below the poverty line, while 30 percent were covered by unions and were above the poverty line. The remaining 10 percent, he said, “fall through the cracks”.

Fiji Employers Federation president Ken Roberts was away overseas and could not be reached for comment.

Following initial opposition from employers, government allowed wage increases recommended by the Wages Council in the following sectors from July 1, 2009:

* Garment - up 20 percent
* Wholesale & Retail - up 20 percent
* 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

A tenth wages order covering an average pay increase of 40 cents an hour in the mining and quarrying industries will be effective next month.