The following is a statement by the Permanent Secretary for the Ministry of Labour, Industrial Relations and Employment, Mr Taito Waqa :
In response to the distorted FTUC comment by Mr. Felix Anthony, the Labour Ministry clarifies that the current minimum wage rate for garment workers in the textile industry was agreed by the FTUC, employers and independent representative after discussions at the tripartite Wages Council responsible for the garment industry.
The setting of minimum wages for the ten industries or sectors is done by the respective Wages Councils, with Father Barr as a common and independent Chairperson. Therefore, all sectors’ minimum wages are concluded after a tripartite dialogue process which includes trade unions, consistent with the ILO protocol on social dialogue. The Wages Councils have completed their meetings this quarter and the Labour Minister is awaiting recommendation from the Wages Councils Chairperson the proposed review of the industry minimum wages for this year.
Further, the Ministry advises that the setting of minimum wages also takes into account the component of social wages which complement the workers take home pay. The components of social wage include; the exemption of income tax for those earning less than $15,600 per year; substantial reduction of income tax rates for all other workers; monthly allowances for destitute families; fee-free education, and bus fare assistance for needy children; subsidy on electricity for residential customers; monthly cash grants to families and guardians supporting orphans and abandoned children; free or concessional bus fare for senior citizens and disabled persons; food voucher scheme for the elderly, pregnant mothers and children; provision to assist first home buyers purchase homes; and price controls on basic food items, fuel, medicines and hardware.
In addition to the Fiji National Provident Fund and Workers Compensation schemes for workers, the Fijian Government has committed about $80 million this year to provide a basic social protection floor and social wages for marginalized workers and marginalized families to further reduce poverty.