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Employers Happy To Pay Higher Wage Rate If Employees Increase Productivity

Employers Happy To Pay Higher Wage Rate If Employees Increase Productivity
Members of the industries and sectors during the review of the National Minimum Wage and Wage Regulations consultation at Tanoa Plaza in Suva on May 26 2018. Photo: Ashna Kumar
May 27
12:38 2018

The consultation was about discussing the minimum wage rate in various industries and sectors around Fiji.

Employers can pay a higher mini­mum wage rate provided their employees show growth in pro­ductivity at work.

This was the consensus reached by most employers during the National Minimum Wage and Wage Regulations consultations held at various venues around the country.

Assistant professor Partha Gangopad­hyay said, upon holding numerous con­sultations, he heard that the employers were happy to increase the minimum wage rate if the employees productivity increased.

The Associate Professor of Economics from the School of Business at the West­ern Sydney University made the remark during the review consultations held by the Ministry of Employment, Productiv­ity and Industrial Relations at the Tanoa Plaza in Suva yesterday.

Assistan professor Gangopadhyay said the consultation was about discussing the minimum wage rate in various in­dustries and sectors around Fiji.

“For an unskilled worker, the question is why we are recommending the mini­mum wage rate of $3.10 which is the highest possible threshold,” he said.

“The consultation was to find out what was visible and what do the industries think about the minimum wage rate.”

Assistant professor Gangopadhyay said the productivity issues also came in when one looked at the various sectors.

He said for each sector, the change in the minimum wage rate could be de­termined by inflation and productivity growth.

“If there is no productivity growth in a sector, there should be no increase of the wage rate,” assistant professor Gan­gopadhyay said.

“If productivity growth is positive then you get a rise in your pay.

“What happens in some industries is that when the productivity is higher, the minimum wage rate is high. And this is the idea we are trying to implement.

“We want to introduce the inflation and the productivity growth together.

“We are trying to get a balancing act for all.

“I have heard during consultations that the sectors and industries have stated that they can pay at a good minimum wage rate provided that there is an in­crease in the productivity.

“What they said was the wage rate should be linked to productivity and it must be improved by all,” assistant pro­fessor Gangopadhyay said.

Edited by Percy Kean

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