PM says $8 minimum wage not viable amid economic pressures

Prime Minister Sitiveni Rabuka says the Government is not in a position to increase Fiji's minimum wage from $5 to $8 an hour, describing the proposal as "unsustainable" amid economic pressures.

His comments on Friday follow calls by the Fiji Trades Union Congress (FTUC) for a $3-an-hour increase.

Mr Rabuka said the proposal was difficult to consider given the uncertainty surrounding the fuel crisis and other economic challenges.

"There is a wish to increase the minimum wage, but Government will not be able to consider this now," he said.

"Minimum wage increase is unsustainable at present because of the forces bearing down on our economy."

The FTUC called for an $8-an-hour living wage during its 51st Biennial Delegates Conference in Nadi and has launched a national campaign urging the Government to adopt the proposal.

Former FTUC president and current Labasa Chamber of Commerce and Industries member Satish Kumar echoed the Prime Minister's concerns, warning that a sharp increase in the minimum wage could force businesses to reduce staff.

"The proposal to increase the minimum wage rate from $5 to $8 is unsustainable and will lead to worker culling to ensure businesses remain financially afloat," Mr Kumar said.

He said the ongoing global fuel crisis had affected both employers and workers, with businesses also facing higher operating and freight costs.

While acknowledging the financial pressures on workers, Mr Kumar said employers were also struggling to manage rising expenses.

He warned that increasing the hourly living wage could result in job losses.

"I don't want that to happen because every worker has to satisfy their needs of their families and without employment it will become hard," he said.

Productivity-linked pay

Mr Rabuka said wage increases could instead be determined by employers based on employee performance.

"Productivity of wage earners plays a vital role in determining any wage increases," he said.