FCEF warns of rising business costs as FTUC defends minimum wage increase

Fiji Commerce and Employers Federation CEO Edward Bernard says employers look at all costs across the business and not just wages or minimum wage alone as skills crisis and low productivity is also driving the cost of doing business further up.

He has highlighted this after Fiji Trade Union Congress National Secretary Felix Anthony said employers should stop using the national minimum wage as an excuse for their failing businesses.

Bernard says this shows his disconnection with the real world of how businesses operate.

He says next month’s increase in minimum wage will mean a 54 percent increase in national minimum wage in the last three years.

Bernard says within this period, there has been an increase in corporate tax and VAT, totalling an increase of 11 percent.

The CEO says these ultimately adds to the overall cost of doing business and therefore employers are rightfully concerned for the sustainability of their businesses.

He says therefore, it is not unusual for businesses to forecast or consider job losses when the cost of doing business continue to increase close to or beyond revenue levels.

Bernard adds in the last few months, they have seen reports of businesses close down due to rising cost of doing business.

While responding to Bernard, Anthony says the garment industry is the lowest paid workers in Fiji and has been instrumental in keeping wages low and below the poverty line.

Anthony says the most recent increase on 1st April was announced by Government some almost 8 months ago which was more than sufficient time for businesses to plan and prepare for the increase.

He says he understands that employers look at cost of doing business but what they fail to understand is that workers too need to ensure decent food on the table for their families.

Anthony says the current minimum wage after the 1st April adjustment is still well below the poverty line and no one, including employers must be proud of this fact.

He says Bernard has chosen to use percentage increases to attempt to demonstrate a massive 54 percent increase in wage rates but the percentage seems high because the wage rates are so low.

The National Secretary the 54 percent increase in minimum wage translate to $4 a day which hardly compensates for inflation or even their bus fares for the day.

He adds VAT increases also impact workers and not only employers.

Anthony says Bernard may not be aware that employers have forecast job losses every time minimum wage has been adjusted or even discussed over the last decade and even before.

He further says the Constitution ensures that workers are entitled to fair working conditions in the Bill of Rights and the Government has assured and reassured workers that it strives to deliver decent work for all workers.

The National Secretary says fair wage is just one aspect of decent work as the ultimate goal must be to have a living wage for all workers in Fiji.

He adds Bernard and his colleagues may want to spare a minute to understand and appreciate the real world for workers who earn wages below the poverty line and live in poverty.