Direct Request (CEACR) - adopted 2009, published 99th ILC session (2010)

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Fiji (Ratification: 1974)

Article 3, paragraph 2, of the Convention. Operation of the minimum wage fixing machinery. The Committee notes that according to the information provided in the Government’s report, only six wages councils were able to conduct meetings in 2006 due to unavailability of members and unstable political climate. Recalling that, under section 19(4) of the Employment Relations (Administration) Regulations 2008, the wages councils have to meet at least annually to review minimum wage rates and make proposals to the Minister, the Committee requests the Government to indicate the measures taken or envisaged to ensure that the minimum wages are effectively reviewed at regular annual intervals, as prescribed by the national legislation.

In addition, the Committee understands that a new Wages Regulation Order came into effect in July 2009 increasing the minimum wage in nine industry categories, including building and road transport, where minimum wage rates had not been revised since 2003 and 2004, respectively. The Committee also understands that the implementation of the new order was postponed for six months in view of concerns expressed by the Fiji Employers’ Federation that the business community – especially in the garment industry – will not be able to cope with the proposed pay increases. The Committee requests the Government to indicate the social and economic factors that were taken into consideration in determining the level of minimum wages and also to specify whether any survey of national economic conditions has been carried out to this end. The Committee would also appreciate receiving a copy of the new Wages Regulation Order.

Article 4, paragraph 1. System of sanctions. With reference to its previous comment on this point, the Committee notes that the Government’s explanations that the fixed penalties provided for in Schedule 8 of the Employment Relations Promulgation 2007 are indented to ensure compliance by those employers who are first-time offenders or completely ignorant of their responsibilities under the new legislation, and who are willing to pay immediately the fine together with any outstanding arrears. The Government adds that this provision was introduced to address delays presently experienced by inspectorate officers in enforcing obligations through judicial proceedings. The intention is to reduce the need for litigation and associated enforcement costs and to secure a speedier recovery of workers’ entitlements. The Government specifies, however, that for frequent offenders and those who intentionally infringe the provisions of sections 55(2) and 55(3) of the Employment Relations Promulgation 2007 harsher penalties are stipulated under section 256 of the Employment Relations Promulgation 2007, i.e. a fine not exceeding 10,000 Fijian dollars (approximately US$6,000) or a term of imprisonment not exceeding two years, or both. The Committee requests the Government to continue to supply up to date information on the measures aimed at preventing and punishing infringements of the minimum wage legislation.

Article 5 and Part V of the report form. The Committee notes the statistical information on labour inspection results contained in the 2006 Annual Report of the Ministry of Labour, Industrial Relations and Productivity. The Committee would appreciate if the Government would continue to provide all available information on the effect given to the Convention in practice, including, for instance, new wages regulation orders adopted, the minimum wage rates in force, the proportion of the workforce remunerated at the minimum pay rate, comparative statistics on the evolution of minimum wages and indicators such as the consumer price index in recent years, copies of collective agreements fixing minimum wages for specific sectors or branches of economic activity, inspection results showing the number of contraventions of the minimum wage legislation reported and sanctions imposed, copies of official documents or studies on minimum wage policy, etc.

Finally, as regards the possible ratification of the Minimum Wage Fixing Convention, 1970 (No. 131), the Committee notes the Government’s statement that the question will be referred to the tripartite Employment Relations Advisory Board for consideration. The Committee requests the Government to keep the Office informed of all further developments in this respect.