Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

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

Article 3 of the Convention. Operation of the minimum wage fixing machinery. The Committee notes the new Wage Regulations Orders which came into effect on 1 May 2011 for ten sectors, including: the mining and quarrying industry; wholesale and retail trades; manufacturing industry; hotel and catering trades; building and civil and electrical engineering; garment industry; sawmilling and logging industry; security services; road transport wages; and printing trades. The Committee also notes the Government’s statement that members of the Wages Councils meet on a quarterly basis in order to review minimum wage rates using the following criteria: the Basic Needs Poverty Line (BNPL); last adjustment of wage rates; inflation rate since this last adjustment; skills and experience of a worker for each job category; level of occupational hazard; and the financial capacity of undertakings. The Committee further notes that the Government has reformed the ten existing Wages Councils, appointing one common chairperson for all of them, while it intends to implement a national minimum wage by January 2012 by merging the ten existing Wages Councils into one national Council. The Committee requests the Government to provide detailed information on any measure taken to this end and to transmit a copy of any relevant legal text once it has been adopted. The Committee would also be particularly interested in receiving additional information on the consultations, whether completed or ongoing, with employers’ and workers’ organizations on the introduction of a single minimum wage.

In addition, the Committee notes the Government’s indication that it has commissioned a national survey on economic conditions, to be carried out in 2011. The Committee wishes to recall that as reflected in Paragraph 13 of the Minimum Wage Fixing Recommendation, 1970 (No. 135), periodical surveys of national economic conditions, including trends in income per head, in productivity and in employment, unemployment and underemployment should be made to the extent that national resources permit, in order to facilitate the periodical adjustment of minimum wage rates. The Committee would appreciate receiving a copy of the national survey on economic conditions once it is prepared.

Article 4 and Part V of the report form. Enforcement measures and application in practice. The Committee notes the statistical information on labour inspection results, according to which, in 2010, 818 inspections were carried out by the Labour Inspectorate and 143 demand notices and six fixed penalties were issued by the Labour Compliance Service of the Ministry for Labour, Industrial Relations and Employment as a result of infringements of the minimum wage legislation. The Committee requests the Government to continue to supply up to date information on the application of the Convention in practice including, for instance, statistical data on the evolution of minimum wage rates in recent years as compared to the evolution of economic indicators such as the consumer price index in the same period, the approximate number of workers paid at the minimum wage rate, the approximate number of non unionized workers, labour inspection results, copies of official surveys or reports on issues related to minimum wage policy.

Finally, as regards the possible ratification of the Minimum Wage Fixing Convention, 1970 (No. 131), the Committee notes the Government’s indication that the Employment Relations Advisory Board (ERAB) has endorsed the recommendation for its ratification on 12 October 2010. The Committee requests the Government to keep the Office informed of all further developments in this respect.