Post Fiji backs off over paycut decision

October 27, 2009 10:09:00 AM

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A decision by Fiji’s postal services operator Post Fiji Limited to implement a 10 percent pay cut for staff and management was withdrawn hours after it was made yesterday following consultations with the line minister.

Post Fiji spokeswoman Merelita Isimeli said the board and management decided to slash salaries to correct the company’s unsatisfactory financial performance for the current financial year ending December 2009 “before it went out of hand”, she told FijiLive.

However, following further consultations with the Minister for Public Enterprises, Attorney-General Aiyaz Sayed-Khaiyum, “a joint decision was made to withdraw the measure”, said Isimeli.

While the company did not expect to make a loss, profits would be lower than in previous years and executive management would looking at other business strategies to reduce expenses, Isimeli said.

She would not comment on why the minister was not consulted before the decision was announced except to say that consultation was needed in some cases.

“For public enterprises such as ours, the board is usually the representative of the government and when a decision is made, it is taken that it comes from the owners, which is government.”

Isimeli said Post Fiji did not envisage a pay cut taking place anytime soon.