Employers body opposes Trade Union's living wage proposal

The Fiji Commerce and Employers Federation (FCEF) is urging the Coalition Government to address gaps in Fiji’s wage-setting system rather than introduce a new living wage framework.

FCEF chief executive officer Edward Bernard made the call on Friday while opposing the Fiji Trades Union Congress (FTUC) proposal for a living wage.

Mr Bernard said the FTUC’s proposal must be balanced against existing wage systems and economic realities.

“Fiji currently has the minimum wage, sectoral wages, collective bargaining and performance management systems to set wages,” he said.

“Collective bargaining already addresses cost-of-living adjustments and inflation.”

Mr Bernard said a recent workshop organised by the International Labour Organization (ILO) identified several weaknesses in Fiji’s minimum wage-setting process, including the absence of clear wage-setting criteria and genuine, transparent consultations.

He said these shortcomings could potentially place Fiji in breach of ILO Convention 131 on Minimum Wage Fixing.

The workshop found Fiji’s median wage was US$477 a month, higher than that of 13 countries in the Asia region.

“Fiji’s gender pay gap is also relatively lower than in many Asian countries and some South American nations,” he said.

“We need to establish evidence-based wage-setting criteria and a transparent consultation process.

“Until the current wage-setting system is fixed, there should be no increase in the minimum wage or introduction of a living wage in Fiji.”

Mr Bernard said the 2026-2027 National Budget should focus on creating conditions that encourage investment, support business growth, create jobs and improve productivity.