Proposed increase in the National Minimum Wage review is shocking and there will be job losses – Towler

The Textile Clothing and Footwear Industry Council says the proposed increase in the National Minimum Wage review is shocking and there will definitely be job losses because of this.

Consultations are currently underway on the proposal to increase the National Minimum Wage Rate from $2.68 per hour to between $3.45 to $3.65 per hour.

Council President, Michael Towler says this is a 29% to 36% increase and our economy cannot sustain an increase of this magnitude.

Towler says an increase of about 10% is sustainable at this time and the textile and footwear industry in Fiji will be decimated by an increase in the National Minimum Wage by 29 to 36%.

He says we have to remember that the National Minimum Wage is a base for negotiating a higher rate for all staff and if it is increased, then there will be a lot of pressure to increase the rate of all the staff by the same amount.

Towler says inflation in Fiji is already increasing dramatically with the increase in fuel, international freight rates and other imported items.

He says wage increases will add to that inflation rate burden that will cause the prices of everything in Fiji to be increased which is a self-perpetuating cycle.

The President also says international freight costs have spiraled out of control over the past few years and will not abate anytime soon.

He says on top of that they are seeing raw material price increases everywhere and now the price of oil is increasing rapidly due to the war in Ukraine which this will cause another round of escalating prices.

Towler says their industry in Fiji is under enormous price pressures as everything they use and need is imported.

He says only labour and some packaging items are sourced locally and adds they are at the mercy of these world wide events.

When asked what are some of the things that they want to be addressed in the Revised Budget to ease these challenges, Towler says local import charges including some of the unnecessary bio-security costs need to be looked at.

He also says some of the customs inspections for long established importers and manufacturers are both unnecessary and add to the cost burden.