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Labour Regulations

LABOUR REGULATIONS AND EMPLOYMENT STANDARDS

Fiji has adaptable, disciplined, English speaking and readily available labour. The total labour force in 1996 was estimated at 301,500 of which 35% were in regular and paid employment. This is indicative of labour availability. The labour force is sufficiently educated as can be noted by the fact that around 77% have had primary and secondary education and with 4% having tertiary education plus the fact that Government is conscious of the need to expand skills and develop aptitudes to meet the demands of industrial development. The overall literacy rate is 93.7%. The main training institutions are:

Fiji Institute of Technology
University of the South Pacific
Fiji College of Agriculture
Training & Productivity Authority of Fiji
University of Fiji
University of Southern Queensland
University of Central Queensland, Fiji
Campus

In addition to the above, there are also private educational and vocational schools that offer various training programmes that adequately cater for Fiji’s manpower needs, including computer training facilities.

Availability of Labour
Skilled and unskilled labour is readily available locally. However, when shortages in middle and top management personnel are experienced, expatriates with appropriate qualifications are recruited to fill those positions. A breakdown of persons employed in various industries is given in the table.

Fiji Labour Market (In Thousand of persons)

1999 2000(e) 2001(e) 2002(e) 2003(e)
By Type of Economic Activity
Agriculture, Forestry, Fisheries 1.6 1.7 1.7 1.8 1.8
Mining & Quarrying 1.7 1.7 1.7 1.8 1.8
Manufacturing 29.2 29.1 30.2 31.0 31.6
Electricity, Gas, Water 2.7 2.6 2.8 2.8 2.9
Building & Construction 4.2 4.2 4.4 4.5 4.6
Distribution 20.3 20.2 21.1 21.6 21.9
Transportation 9.2 9.2 9.5 9.8 9.9
Finance & Insurance 6.8 6.7 7.0 7.2 7.3
Other services 36.2 35.1 36.6 37.5 38.2
TOTAL 111.9 110.5 115 118 120
By Type of Employer
WAGE EARNERS 68.4 68.1 70.8 72.7 73.9
Public 12.6 12.5 13.0 13.4 13.6

Central Government

8.3 8.2 8.6 8.8 9.0

Local Government

0.4 0.4 0.4 0.4 0.4

Public Enterprises

3.9 3.9 4.0 4.2 4.2
Private Corporation 42.9 42.7 44.4 45.6 46.3
Other Private Sector 12.9 12.9 13.4 13.7 14.0
SALARY EARNERS 42.7 42.4 44.2 45.3 46.1
Public 25.8 25.6 26.7 27.4 27.8

Central Government

22.5 22.3 23.3 23.9 24.2

Local Government

0.3 0.3 0.3 0.3 0.3

Public Enterprises

3.0 3.0 3.1 3.2 3.3
Private Corporation 9.4 9.3 9.7 10.0 10.1
Other Private Sector 7.5 7.5 7.8 8.0 8.1
Memorandum Items
Population 806.3 810.5 814.7 825.8 832.4
Labour Force1 330.7 341.7 352.5 361.8 371.4
Employment2 303.4 310.4 324.9 334.5 344.2
Unemployment Rate3(%) 8.3 9.2 7.8 7.8 7.3

 

Source: Fiji Bureau of Statistics, Annual Employment survey (Updated: 14/04/2004)

Regulation of Labour Relations

The Ministry of Labour and Industrial Relations is empowered by statute for the administration of the labour laws and for the encouragement of good labour relations and social welfare of the employees. The following are the regulations that administer the labour relations:
1. The Employment Act, Cap. 92, regulates minimum terms and conditions for employment for all employees in Fiji.
2. The Workmen's Compensation Act, Cap. 94, prescribes social benefits in case of injury, sickness and death arising out of, and in the course of employment to the injured and the dependants of the
deceased workman .
3. The Health and Safety at Work Act provides for the health, safety and welfare of employees at their workplace.
4. The Fiji National Training Council Act provides regulations for industrial training purposes.
5. The Trade Dispute Act, Cap. 97, sets out the procedures for the settlement of trade disputes.
6. The Wages Councils Act, Cap. 98, provides for the establishment of Wages Councils, which in turn decides on the industry/sector based minimum rates of remuneration and other terms and conditions.
7. The Trade Unions Act, Cap. 96, deals with the formation of trade unions which look after the affairs of their members, participate in various forms of tripartite boards consisting of the three (3) social partners.
8. The Fiji National Provident Fund Act provides regulations for social security and old age benefits.

Wages Councils

The Wages Councils Act provides for the establishment of wages councils. The Council is composed of three employer representatives, three employee representatives and three independent members. The Council deals with questions of wages, vacations and other terms and conditions of employment in industries where no adequate collective bargaining machinery exists. Ten wages councils covering employment in the following industries/sectors have been established:
1. Wholesale and Retail Trades
2. Building, Civil and Electrical Engineering Trades
3. Hotel and Catering Trades
4. Road Transport Industry
5. Sawmilling and Logging Industry
6. Printing Trades
7. Garment Industry
8. Manufacturing Industry
9. Mining and Quarrying Industry
10. Security Services

Wages Regulations (Building, Civil and Electrical Engineering Trades)

Order: 2007 : Effective 05/03/2007

Class of Workers

Minimum Hourly Remunerations (F$)

Foreman

3.70

Leading Hand

3.20

Unskilled worker more tan 18 years

2.25

General Tradesman

2.68

Tradesman Class III

2.82

Tradesman Class II

2.97

Tradesman I

3.07

Operator - Heavy Plant

3.23

Operator - Light Plant

3.10

Clerk

2.68

Watchman

1.76

Driver - Heavy Goods + 10 tonnes

3.07

Driver - Light Goods

2.56

Heavy Plant Operator + 10 tonnes

3.23

Light Plant Operator

3.10

Wages Regulation (Wholesale and Retail Trade) Order: Effective 15th September 2006

Class of Workers

Minimum Hourly Remuneration

Under 18 years (F$) 18 years and over (F$)
Cashier 2.02 2.15
Clerk 1.98 2.11
Driver-Light Goods 2.28
Driver-Heavy Goods 2.61
Forklift Operator 2.43
Packer 1.94 2.11
Salesman 2.04 2.18
Sewing Machinist 2.00 2.12
Shop Assistant 1.98 2.11
Storeman 2.02 2.15
Unskilled Worker 1.84 1.98
Watchman 1.90 2.05
Other Worker 1.98 2.11

Arbitration of Trade Disputes
The Trade Disputes Act, Cap. 97, governs the settlement of trade disputes involving the trade union and the employers. Under the Act, disputes must be notified to the Permanent Secretary for Labour and Industrial Relations, who may undertake conciliation himself or may appoint another person to do so on his behalf or may even refer the dispute to the Minister. In the event of conciliation failing to resolve any dispute, it may then, if both parties agree, be referred to arbitration. In the case of essential services, the Minister has powers to impose compulsory arbitration. The Act also has provisions for the  establishment of boards of inquiry into trade disputes and prohibits breach of contract in essential services. The Minister is given extensive powers in relation to unlawful strikes.

However, in case of disputes of rights, the Trade Union submits claims to the Employer, whereby if negotiations are settled than they are registered with the Permanent Secretary for Labour. In the event the trade disputes which exists is not settled than this goes through the Permanent Secretary and the Disputes Committee (3 members Tripartite). From this stage a decision could be reached in 14 days by consensus, however, if the committee is unable to reach a decision, it is referred to the Permanent Secretary. Furthermore, the case is than presented to the Minister and authorises Permanent Secretary to refer to the Tribunal whereby the final decision is awarded.

Trade Unions and Industrial Associations
The formation, registration and conduct of trade unions and industrial associations are dealt with by the Trade Unions Act, Cap. 96 and Industrial Associations Act, Cap. Registration of trade unions is compulsory under the Trade Unions Act and they will be registered as corporate bodies.

Most of the labour undertakings are covered by collective bargaining agreements negotiated with the registered trade unions concerned. The government has long encouraged a free Forum consisting of a representative from the employer association, a trade union congress representative and a government
representative. This body has not only attempted to provide a forum for an open and full exchange of views but also has set suggested annual wage income guidelines. In addition, the Trade Unions [Recognition] Act, 1998 sets out the requirements for the union to fulfil to receive recognition for the purpose of collective bargaining with the employer/ employers.

Employee Training Scheme
The Fiji National Training Act instituted a grant/levy scheme whereby all employers (subject to  xemption of certain industries and services) are assessed 1 percent of their gross six monthly payroll and other emoluments paid. Companies are able to claim expenses incurred for any staff training purposes from the Training & productivity Authority of Fiji. The value of the grant is dependent on the type and the degree of training undertaken but is subject to a general maximum of 100 percent of levy paid. Further grants for particular types of training may also be available. The Training & Productivity Authority of Fiji also provides training programmes and runs workshops during the year for different industry categories to aid employers to improve the skills of their employees.

Working Conditions/Wages
There exists statutory minimum wages in Fiji in the form of Wages Regulation Orders covering Industry/sector-based employment.

Therefore the following details provide the wage determination provision that exist in Fiji to cater for all types of employment:

Trade Union Agreement
In relation to those employees covered by a Trade Union Agreement, the union negotiates with the employer for minimum wages, annual increments and other benefits.

Wages Councils
The Wages Councils set up minimum wage guidelines and other benefits for employees of those industries for which wage councils have been established.

Individual Bargaining
All employees who are not covered by the above two categories fall in this category whereby they themselves negotiate with their employer for wages, annual increments and other benefits.

Other Employment Information
Hours of work

The average normal weekly hours of work ranges from 40 to 48 hours per week, depending on the type of industry. The ten Industry based Wages Regulation Orders define the normal and overtime hours of work. (Under the ER legislation to be effective from 01/10/07, hours of work can be either 45 hours for 5 days or 48 hours for 6 days per week)

Overtime
Overtime is paid at the rate of time and one-half and double time for the businesses covered by the Wages Regulation Orders and those covered by the collective agreement with the unions. In other types of businesses, the companies are at discretion to pay the overtime rates.

Public Holidays
Listed below is a list of paid public holidays for Fiji:
New Year's Day
National Youth Day
Good Friday
Easter Saturday
Easter Monday
Ratu Sir Lala Sukuna Day
Queens Birthday
Prophet Mohammed's Birthday
Fiji Day
Diwali
Christmas Day
Boxing Day

Sick Leave
Under each of the ten Wages Regulation Order, there is provision for the number of sick leave days that the employees are to be granted. Similarly, the negotiated agreement between the union and the employers provides for the sick leave days that are to be granted for unionised employees. In other cases, there is no legal obligation to pay employees for being absent from work when sick, therefore the sick leave is paid according to these businesses’ own policies. (Under the ER legislation to be effective from 01/10/07, sick leave is 10 days per year)

Annual Leave
Annual leave is given at the rate of at least 10 working days holiday per year provided that an employee is not absent from work for more than thirty-six normal working days during that year without a medical certificate or any other reason acceptable to the employer. Annual leave holiday can be taken in one unbroken period, or at the employee's request in two or more periods provided one part must be a continuous period of one week.

Maternity Protection
Where a female employed in any undertaking expects to be confined, she is entitled to abstain from work for a period of forty two consecutive days before and forty two consecutive days after the confinement. She is also entitled to an allowance (maternity allowance) of $5.00 per day while away from work. (Under the ER legislation to be effective from 01/10/07, maternity payment is full pay for first three births and thereafter half the pay) Under the ER legislation to be effective from 01/10/07, all employers will be required to give 3 days bereavement leave per year.


Social Security
Superannuation

The Fiji National Provident Fund (FNPF), which is regulated by the Fiji National Provident Fund Act,  provides social security benefits for old age and for total incapacity. The Fund is financed by contributions from members and their employers. An employer is legally obliged to contribute to the Fund at the rate of 8 percent of gross earnings for each employee, and the employee contributes a like amount, which is deductible from his/her wages. The Act contains provisions for payment of a special death benefit to the member's dependents or to a person or persons so nominated.

Withdrawals from the fund can be made on the following grounds:
• The member has attained the age of 55 years
• The member is migrating
• The member wishes to erect or purchase residential premises

Expatriate employees are also required to join the Fund. They may, however, be granted exemption, if they are a member of any other approved superannuation fund. The Act also has provisions for voluntary contributions by selfemployed persons if they wish. In certain cases, a contribution greater than the legal requirement of 8 percent of gross earnings may be made by a self employed person.

Workmen’s Compensation
The Workmen’s Compensation Act regulates social benefits payable in the case of injury or any mishaps to any worker. Every company is obliged to take out a Workmen’s Compensation Insurance Policy to  safeguard the interest of its employees or their beneficiaries against death and incapacity during and in the course of their employment.

Health and Safety at Work Act (HASAWA)
The Health and Safety at Work Act outlines a detailed list of safety and health measures for enforcement within the organisations to ensure occupational health and safety and minimise hazards at work. Businesses are obliged to work under requirements within the act which has been implemented to improve working conditions and minimise accidents in the workplace.

Expatriate Employees
Residence and Visitor’s Permits into Fiji is subject to government control which is exercised directly by the Department of Immigration. Visitor visas are normally handled by Fiji Embassies located in respective foreign countries. However, once a visitor is in Fiji, any extension will require approval of the Immigration Department. Employees on contracts are normally admitted provided ample local expertise is not available. Such employees would generally be allowed to be accompanied by their spouses and children. Foreign concerns are able to transfer skilled staff to their Fiji branches or subsidiaries provided suitable local expertise is not available.

Employees on contracts may qualify for residency and work permits for an initial period of up to 3 years. Such permits may be extended for further periods upon application. The application fee for a work permit is $465.00. Upon approval an issue fee of $165.00 is charged. The forms are available on the immigration website and office for free. Also note that the spouse and children can be included on one application with the principal applicant. All work permit applications are to be separately applied.

In respect of each person whose permit application is approved, a refundable Immigration Security  Deposit bond of an amount sufficient to cover repatriation or indicated otherwise will need to be deposited with the Immigration Department.

Living conditions
Living conditions for foreign personnel in Suva and Lautoka (the two cities) and other towns are good. Accommodation and many other amenities similar to those in Australia and New Zealand can be found. Although it may be expensive, there is a fair range of local style, European style, executive and standard housing available for rent.

Most executive houses are located in more exclusive areas and are either partly or fully furnished. Monthly rental can range from about F$1, 200 to F$4,000. A broad selection of local (subject to seasonal variation) and imported food supplies is always available through supermarkets. There is an International School in Suva, 1 in Nadi and several other English-speaking schools, technical institutes and universities. Sports such as golf, tennis, fishing, swimming, scuba diving, sailing or boating are all available and the numerous tourist resorts located in Fiji offering a wide selection of experiences for the expatriate living and working in Fiji.

 

 

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