Workers should not bear cost of fuel crisis through lower FNPF contributions, says FTUC

The Fiji Trades Union Congress (FTUC) has opposed any proposal to reduce Fiji National Provident Fund (FNPF) contributions as a cost-cutting measure during the fuel crisis, saying workers should not bear the burden of economic challenges.

In a statement issued yesterday, FTUC national secretary Felix Anthony said the union objected to suggestions from the Ministry of Finance to lower FNPF contribution rates.

Mr Anthony said workers had already sacrificed “hundreds of millions of dollars” during and after the COVID-19 crisis when employer contributions were reduced under the previous government.

“We cannot have the same anymore,” he said.

He said Government directives allowing FNPF withdrawals during natural disasters and the COVID-19 pandemic had contributed to low member balances.

According to the FTUC, 86 per cent, or 376,111 members, currently have balances of less than $40,000.

“This is a serious concern for workers and their families,” Mr Anthony said.

He said the reduction in contributions would worsen the financial position of workers already struggling with the rising cost of living.

“If anything at all, workers seriously and urgently need a wage increase not only to ensure real wage is maintained but an increase to a living wage,” he said.

Mr Anthony also rejected claims that reduced FNPF contributions would leave workers with more take-home pay.

“The suggestion that by decreasing the FNPF contributions by workers would see more money in their pay packs is a hoax,” he said.

“It’s workers’ own money that is going to be given to them making them feel that Government is helping.”

The FTUC urged Government not to reduce FNPF contributions, saying workers were “the least able to afford any further reduction in their standard of living”.