The TCF industry is already suffering from recently imposed local cost increases. Passing on these new additional costs to our export customers will destroy Fiji industry to compete internationally.
The textile clothing and footwear industry employs many Fijians. File Photo
Fiji Trades Union Congress (FTUC) national secretary Felix Antony’s anticipation of National Minimum Wage (NMW) of $6- $7 per hour will be disastrous to the Textile
Clothing & Footwear (TCF) Council of Fiji. Imposed wage increases without any contribution towards productivity is counterproductive to any industry.
The TCF industry is already suffering from recently imposed local cost increases. Passing on these new additional costs to our export customers will destroy Fiji industry to compete internationally.
This proposed 50 per cent NMW increase challenges the industry with other recently imposed increased costs including a recent 48 per cent NMW increase, increased FNPF employer contribution, a new three per cent tariff on raw materials and increase of company tax by five per cent. Factories will have but one option which is to focus on exit strategy.
Our industry employs over 7000 workers of which 80 per cent are women.
Most do not hold professional qualifications.
The TCF industry needs to be consulted well before taking any steps towards wages increases.
The TCF industry needs to be nurtured and protected and not destroyed. Increasing manufacturing in Fiji is a National strategic goal to diversify the economic base.
The proposal to increase NMW by another 50 per cent will soon eliminate manufacturing from Fiji altogether.
At many instances the TCF industry has explained why the declining employment from 20,000, 20 years ago to now only 7000 was due to similar imposed cost increases without any productivity offsetting making Fiji less competitive.
This proposal now under consideration will certainly be another nail in the coffin.
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