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

Replies received to the issues raised in a direct request which do not give rise to further comments (CEACR) - adopted 2023, published 112nd ILC session (2024)

The Committee notes the information provided by the Government, which answers the points raised in its previous direct request and has no further matters to raise in this regard.

Direct Request (CEACR) - adopted 2019, published 109th ILC session (2021)

Article 3 of the Convention. Minimum wage system. Further to its previous comments, the Committee notes the adoption of a national minimum wage which applies to all workers who are not covered by sectoral regulations. It also notes the information provided by the Government in its report on the consultations held in this regard as well as on the subsequent revision of the minimum wage rates, both at the national and sectoral levels.

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

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.

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

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.

Direct Request (CEACR) - adopted 2008, published 98th ILC session (2009)

Article 3 of the Convention. Equitable participation of employers’ and workers’ organizations. The Committee notes the adoption of the Employment Relations Promulgation 2007 (Promulgation No. 36 of 2007) and the Employment Relations (Administration) Regulations 2008, which replace the Wages Councils Act (Cap. 98). The organization and operation of the wages councils remains essentially the same, while under sections 3 and 5 of Schedule 3 of the Employment Relations Promulgation 2007, employers’ and workers’ representatives must be represented at the wages councils in equal numbers. It also notes that under section 19(4) of the Employment Relations (Administration) Regulations 2008, the wages councils must meet at least annually to make proposals to the Minister on minimum wage rates.

Article 4(1). System of sanctions. The Committee notes that the Employment Relations Promulgation 2007 prescribes, in Schedule 8, a fixed monetary fine to the amount of 100 Fiji dollars (FJD) (approximately US$60) for failure to pay the statutory minimum wage (section 55(2)) or failure to display a written notice in the workplace informing the workers of any applicable wages regulation order (section 56(2)). Recalling that monetary sanctions must be established and periodically readjusted at a level that is truly dissuasive and effective in preventing infringements of the minimum wage legislation, the Committee requests the Government to clarify whether the current level of fines provided for in the Employment Relations Promulgation 2007 is considered adequate to ensure compliance with the national legislation in respect of minimum wage.

Article 5 and Part V of the report form. The Committee notes the information on wages councils and labour inspection results contained in the 2004 Annual Report of the Ministry of Labour and Industrial Relations. The Committee requests the Government to continue supplying up to date information on the application of the Convention in practice including, for instance, any new wages councils set up or new wages regulation orders adopted, the approximate number of workers covered by wages regulation orders, any exemptions that may have been granted by the Minister of Labour under section 19(7) of the Employment Relations Regulations 2008, etc.

Finally, the Committee takes this opportunity to recall that, based on the recommendations of the Working Party on Policy regarding the Revision of Standards, the ILO Governing Body has decided that Convention No. 26 is among those instruments which may no longer be fully up to date but remain relevant in certain respects (GB.283/LILS/WP/PRS/1/2, paragraphs 19 and 40). The Committee, therefore, suggests that the Government should consider the possibility of ratifying the Minimum Wage Fixing Convention, 1970 (No. 131), which marks certain advances compared to older instruments on minimum-wage fixing, for instance, as regards its broader scope of application, the requirement for a comprehensive minimum wage system, and the enumeration of the criteria for the determination of minimum wage levels. The Committee requests the Government to keep the Office informed of any decision taken or envisaged in this regard.

Direct Request (CEACR) - adopted 2006, published 96th ILC session (2007)

The Committee notes the detailed report of the Government and attached documents, in particular copies of the Wages Regulation Orders currently in force for security services, the wholesale and retail trades, road transport, printing trades, manufacturing trades, garment industry, hotel and catering, building and civil and electrical engineering, mining and quarrying, and sawmilling and logging, and the General Orders prescribing the terms and conditions of service of public officials.

The Committee notes that a new Employment Relations Bill 2006 (Bill No. 8 of 2006) is under consideration. With regard to this draft legislation, the Committee asks the Government to explain how the Bill intends to ensure that the employers and the workers would be represented in equal numbers and on equal terms in the Employment Relations Advisory Board, since section 8(3) of the Bill merely provides that, when appointing members of the Board, the Minister of Labour and Industrial Relations may take into account the principles of equality set out in section 38 of the Constitution. The Committee also requests the Government to keep it informed of any further progress concerning the adoption of the new employment legislation.

Article 3, paragraph 1, of the Convention. The Committee notes the General Orders of the Public Service Commission provided by the Government. While noting that the General Orders provide for the terms and conditions of service of public officers, it observes that the Orders do not appear to contain provisions on the determination of minimum wage levels. It would therefore appreciate receiving additional information in this regard.

Article 5 and Part V of the report form. The Committee notes the statistics provided by the Government concerning the composition of the workforce. It also notes that the Government refers in its report to data concerning underpayment of wages or wage arrears published in the 2004 Annual Report of the Ministry of Labour and Industrial Relations. This document, however, has not been received and the Committee would appreciate receiving a copy. It would also be grateful if the Government would continue providing up to date information on the practical application of the Convention, for instance, statistical information showing the evolution of statutory minimum wage rates in recent years as compared to the evolution of the inflation rate or other related economic indicators in the same period, labour inspection results including the number and nature of infringements reported and sanctions imposed, etc.

Direct Request (CEACR) - adopted 2004, published 93rd ILC session (2005)

The Committee takes note of the information supplied by the Government in its report. It notes in particular the Government’s reference to a new Wages Council Order, issued under section 3(1) of the Wages Councils Act (Chapter 98), to cover workers in the security services. The Government also indicates that nine Wages Regulation Orders are currently in force fixing minimum rates of pay and other conditions of service for the wholesale and retail trades, road transport, printing trades, manufacturing trades, garment industry, hotel and catering, building and civil and electrical engineering, mining and quarrying, and sawmilling and logging. Noting that no copies of any revised Wages Regulation Orders have been received since 1997, the Committee requests the Government to specify in its next report the wage rates applicable to the above trades and to supply copies of the relevant instruments.

Article 5 of the Convention and Part V of the report form. The Committee notes the Government’s indication that the existing Wages Regulation Orders set minimum wage levels for the unorganized sector which comprises about 30 per cent of the workforce and involves workers in the nine trades covered by wages councils. It also notes the Government’s statement that periodic wage increases are governed by movements in the cost-of-living adjustments. The Committee would be grateful if the Government could continue to provide up-to-date information concerning the effect given to the Convention in practice, including for instance extracts from labour inspection reports showing the number of infringements of the various Wages Regulation Orders currently in force, the total amount of wage arrears recovered and the sanctions imposed, available statistics on the evolution of minimum wage rates in recent years as compared to the evolution of the consumer price index in the same period, as well as any other particulars bearing on the functioning of the minimum wage fixing machinery.

Direct Request (CEACR) - adopted 2002, published 91st ILC session (2003)

The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

The Committee notes the detailed information provided in the Government’s report. It requests the Government to continue supplying, in accordance with Article 5 of the Convention and Part V of the report form, general information on the application of the Convention in practice, including: (i) the minimum wage rates in force; (ii) the available data on the number and different categories of workers covered by minimum wage provisions; and (iii) the results of inspections carried out (e.g. the number of reported violations of minimum wage provisions, the penalties imposed, etc.).

Direct Request (CEACR) - adopted 1998, published 87th ILC session (1999)

The Committee notes the detailed information provided in the Government's report. It requests the Government to continue supplying, in accordance with Article 5 of the Convention and point V of the report form, general information on the application of the Convention in practice, including: (i) the minimum wage rates in force; (ii) the available data on the number and different categories of workers covered by minimum wage provisions; and (iii) the results of inspections carried out (e.g. the number of reported violations of minimum wage provisions, the penalties imposed, etc.).