Unsustainable rise in National Minimum Wage rate could see the loss of 7,000 jobs and death of the industry - Towler

The Textile Clothing and Footwear Industry Council of Fiji says that the rise in the National Minimum Wage Rate to $4, $5 or even $10 as suggested by some political parties will see the loss of 7,000 jobs in their industry and will also see the death of the industry.

Council President Michael Towler says their industry directly employs 7,000 Fijians, with 20,000 Fijians indirectly depending on their industry.

Towler says 80 percent of industry employees are women adding they are fully committed to taking part in thoughtful and responsible workplace reforms.

He says simply put, the textile and clothing industry — the lifeblood to thousands of Fijian families — cannot survive in Fiji with these types of sudden wage increases.

Towler says that elections campaigns is not the right time to debate about the National Minimum Wage.

Towler says it is reckless and dishonest to make such comments.

Towler says their employees are their best assets and some of them pay over and above the minimum wage rate.

He has also questioned political parties who are suggesting these increases, as to who will employ their 7,000 workers if their industry in Fiji disappears from this country due to unsustainable and suddenly‑spiked wage rates.

He has questioned who will replace the $100 million of foreign exchange that the industry brings into the economy.

Towler says they support paying their workers a fair and reasonable wage and they support sustainable wage increases that are done carefully and progressively, thus avoiding massive job losses.

When questioned by Legend FM News that NFP leader Professor Biman Prasad has stated that no one will lose their jobs because they will bring in a law to prevent this, Towler says this is rubbish.

Meanwhile, FijiFirst General Secretary, Aiyaz Sayed-Khaiyum says that they were the ones that brought in the $2.68 National Minimum Wage Rate and they need to increase wages responsibly.

While speaking on Straight Talk Sayed-Khaiyum says that they want to review the wages councils rates by next year.

NFP Leader Professor Biman Prasad says they will implement their $5 minimum living wage policy in the first 100 days if they form government however they are not clear on a package that will come with the implementation and they also say that this minimum wage may not include cane cutters.

NFP’s broad policy document for the 2018 general elections states that the current national minimum wage of $2.68 an hour will be replaced by a phased in living wage of $5 an hour not as a stand‑alone measure but as a group of policies directly and indirectly  working in tandem to achieve it. However it says this will be done after extensive consultations.

Prasad has not revealed how those unable to pay the $5 minimum living wage will be assisted but he says none of the employers will be able to remove people from work due to the increase in the wage rate as NFP will bring in a law that will stop people from doing this.