Concerns raised over proposed amendments to ERA that could lead to job losses and business closures

Serious concerns are being raised in the manner in which processes for amendments to the Employment Relations Act are being undertaken and that the changes could lead to job losses, business closures, and the erosion of investor confidence in Fiji.

Fiji Hotel and Tourism Association CEO and Employment Relations Advisory Board representative Fantasha Lockington says there have been three major proposed amendments to the ERA.

She says work on the ERA began in December last year following a meeting with the Ministry of Employment, employers' reps and the unions but when they got the hard copy of the Bill, it had the additional clauses that they had not discussed.

Lockington says what was even more distressing was that it required that they had to sign a Non-Disclosure Agreement to receive a hard copy of these amendments that they could discuss with their members but they were unable to share copies of.

She says this was repeated last month.

In a joint statement, Fiji Commerce and Employers Federation and the Fiji Hotel and Tourism Association say MSMEs comprising over 60 percent of employers in Fiji, and operating on thin margins, cannot withstand the proposed fines of up to $500,000 or a term of imprisonment of 20 years or both as suggested by this new draft Bill.

They say this law does not discriminate in application between the small bread shops around our local neighbourhoods and ‘bigger corporates’ including Government as well.

They say these penalties far exceed MSMEs financial capacity and goes against the Government’s good intentions to improve the ease of doing business in Fiji.

The organisations say this will undoubtedly lead to potential closures and widespread job losses.

They say the government must recognize the devastating impact these measures would have on these vital contributors to the local economy.

The organisations say the proposed amendments would also grant excessive powers to employment officers, allowing them to bypass the established mediation process and demand access to business assets.

They say this provision circumvents due process and exposes businesses to arbitrary penalties without the opportunity for fair resolution.

FCEF and FHTA stress that mediation has long been an essential part of resolving employment grievances and disputes in a balanced and fair manner and undermining the process with the introduction of the proposed “Form 9” in favour of litigation and punitive measures is not only harmful, it erodes the trust between employers, employees, and the government and is defeatist as to why mediation was introduced into the ERA back in 2007.

They say the criminalisation of ERA, including the payment of hefty fines and an increased term of imprisonment (or both), introduces a dangerous precedent; turning what should be regulatory or administrative issues into criminal offences is a frightening prospect for employers.

FCEF and FHTA say this move would deter both local and foreign investors from starting or maintaining businesses in Fiji, as they would feel unduly targeted by punitive laws that threaten their freedom and financial security.

The organisations say are also deeply concerned that the proposed changes are eroding the rights of employers to manage their businesses effectively.

They say the power to make decisions about their workforce and operations is being systematically stripped away, leaving them vulnerable to unwarranted interference.

FCEF and FHTA say these proposed changes fundamentally shift the balance of the employer-employee relationship, creating an environment where businesses are no longer able to operate freely and competitively.

They are urging the Ministry of Employment to engage in open, transparent, and meaningful dialogue with employers before pushing these amendments forward.

The organisations say it is essential that the voices of Fiji’s business community, particularly small businesses, are heard and not ignored.

FCEF and FHTA are calling on the Ministry to consider employers’ concerns, review the harsh elements of these amendments, and collaborate on balanced solutions that protect workers while allowing businesses to thrive.

They add they are ready to engage in discussions that lead to a balanced, fair, and sustainable employment framework for all Fijians.

Questions have been sent to the Minister for Employment, Agni Deo Singh, but he is yet to respond.