Government committed to finalising new minimum wage formula

11/01/2011

The Minister for Labour, Industrial Relations and Employment, Mr Filipe Bole, confirmed that the ministry was actively engaged with the tripartite social partners at the Employment Relations Advisory Board to finalise new minimum wage formulae to be adopted by the Wages Councils.

He said the board sat three times last year to amicably resolve the contentious issues relating to the economic and social criteria to determine formulae to be adopted by the Wages Councils in reviewing and computing the increases of the minimum wages under the various Wages Regulation Orders (WRO).   This exercise is part of the Wages Reform agenda to review the wage setting criteria, wage setting formula and governance framework of the Wages Councils.

Mr Bole confirmed that after the three special sittings of the board last year, the social partners unanimously agree to adopt the wage setting criteria in the ILO Convention No. 131, especially Article 3, as the basis to objectively review the minimum wages under the WRO, including an appropriate national minimum wage formula compatible with the economic and social realities of Fiji.  Mr Bole reiterated that Cabinet also endorsed the recommendation of the board in its sitting on December 7 last year.


To facilitate this process, the board also agrees to engage local professors of economics to recommend formulae for the sectoral minimum wages and national minimum wage to the board before final formulae are recommended to the Minister for Labour for Cabinet’s consideration.    

The minister reaffirmed Government’s commitment under the Peoples Charter for Change, Peace and Progress in moving towards the goal of a National Minimum Wage in phases to help alleviate poverty.

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