Foreign workers cost more than locals, FCEF says

Foreign workers are more expensive to employ than locals, costing businesses about $3000 before they even arrive in Fiji, the Fiji Commerce and Employers Federation has confirmed.

FCEF chief executive officer Edward Bernard dismissed claims that employers hire foreign workers because they are cheaper.

“That is not true,” Mr Bernard said. “It’s more expensive to hire a foreign worker.”

He said employers must pay recruitment costs, flights, government bonds and provide housing for foreign workers, unlike local employees.

“For a local, we don’t have to fly them in. For a foreign worker, you have to fly them in,” Mr Bernard said.

“For a local, you don’t have to provide a bond to Government. You have to do that for a foreign worker.”

A bond is a sum of money paid to Government as security, ensuring employers meet their obligations to foreign workers.

Mr Bernard said employers also must provide housing for foreign workers in most cases, adding to employment costs.

“You add on top of that the recruitment cost to agents and so forth. So, it’s more expensive for foreign workers.”

He said the preference for foreign workers was based on qualification, reliability, quality of work and attitude.

Survey

Mr Bernard announced FCEF is launching a National Skills and Labour Demand Survey supported by the Fiji Bureau of Statistics, with results expected at the end of next month.

“This will be the demand side to show where are the gaps, the number of people, the type of people we need,” he said.

He said combining this data with the ministry’s labour supply information would help government create strong labour market policies.

About 740 businesses were bringing in foreign workers as of June, with Immigration processing 400 to 600 work permits monthly.