In 2006 ECREA launched the report titled ‘Just Wages for Fiji – Lifting Workers out of Poverty’; commissioned by ECREA and researched by Dr. Wadan Narsey. In the foreword (2006:iii) Ratu Joni Madraiwiwi states that “…the inability of the Wages Councils to maintain the purchasing power of wages has resulted in a significant transfer of wealth from workers covered by the Wages Councils to their employers”… The significant transfer of wealth was found by Dr. Narsey to be an increase in profits over the past decades but where by and large wage earners have not shared in the increases in prosperity (ibid:97).

He makes interesting points throughout the report also stating that while on previous Wages Councils there were some employers representatives who showed genuine concern, the majority had a single objective and that was of keeping increases of wages as low as possible (ibid:59). He goes on to add that historically the failure of the Wages Councils to ensure that workers wages are fully adjusted has been the primary cause of the increase in poverty.

In other words where they could have made a substantial difference to Fiji’s overall economy and the incidence of poverty in this nation previous Wages Councils have basically failed the workers they are supposed to cover; that is perhaps until now.

This historical failure of the Wages Council and how they arrived at their particular Orders is documented in Chapter 6 (ibid: 56-77) of Narsey’s report and he makes a special note to thank the then Minister of Labor Kenneth Zinck for access to these files. It is against this backdrop of information and recommendations from the report that the ‘new look’ Wages Council is set.

In recent months the Chair of the 10 Wages Council, has been under pressure from a consortium of employers representing different industries but in particular the garment industry for not being neutral or for having a particular agenda i.e. the interest of the workers. This is part of the constant opposition from a number of industries to the recommendations from the Wages Councils.

What is disappointing yet predictable is the continued lack of compassion from some of the employers whose resistance to the recommendation for increases in an industry from $1.48 to $1.78 for workers is laughable if it were not so serious. Furthermore, over the past decades employers have been promoting convincing yet unfounded misconceptions about wages and employment.

One of the more convincing arguments is that the time is not right to be talking of increasing the wages of workers, because of economic bad times both nationally and internationally. They add that if the wages are to be increased then they would be forced to close down their factories because of their inability to pay such increases.

Sadly such misconceptions are enhanced when the Reserve Bank Governor spoke on Fiji One’s ‘Talk Business’ (November 2008), of wages increment as being a bad deal for Fiji’s economy particularly at this time of national political crisis and international global crisis; reiterating the employers lament.

Dr. Narsey, has responded to these threats saying that there is no evidence that any employer ever closed down because of the increase in wage rates stipulated by the Wages Regulation Order (WRO). Indeed Dr. Narsey’s study could find no evidence in any of the Wages Council files, of any employer substantiating their claims of inability to pay increases or COLA (ibid: 100).

While recommendations have been made by the Wages Council, opposition has been orchestrated by some of the more adamant and less compassionate of employers. One observes with sadness the powerful lobby groups formed by some employers who have easy access to the decision-makers of this nation whether they are democratically elected or military installed. By contrast, our workers do not have even half the same leverage. This means that with the intense lobby from employers, their agenda i.e. maintaining profits and keeping wage increase down, is fulfilled at the expense of the workers and the welfare of families.  

Because of this non-leveled playing field, awareness about this struggle for just wages needs to be brought to the attention of the nation. Here reference is made to three small points –

Firstly, just wages are a matter of justice. Workers or employees contribute to a thriving economy therefore we need to look after our employees. In terms of wages, this means that every worker across the board of industries needs to be paid a wage above the poverty line.

Secondly, it is not simply a matter of adjusting the wage line and leaving it unchanged for years. These wage lines need to be reviewed and adjusted according to the Cost of Living and adjusted annually.

Finally, without a functioning wages council, the poor conditions of workers will continue to be neglected and remain unchecked as it has been for the past few decades. There is a lot of information documenting the failed and illusory attempts by previous elected governments to provide decent wages but this consistently has failed to eventuate.

Calls by employers to consider the global financial crisis and its impact on wage discussions bring to mind Jim Consedine’s article on ‘faith and the financial crisis’ (Tui Motu, December ed.) where he referred to Alan Greenspan’s acceptance of his mistaken ideas about the free market. Consedine points out that Greenspan accepted that ‘the market’ doesn’t have a soul and doesn’t respond to the need for compassion, mercy and healing, forgiveness, tolerance, generosity, social justice.

In the spirit of new beginnings for 2009, we hope that employers will move toward compassion, fairness and justice and away from greed for the betterment of this nation’s workers.