HRM 602 MANAGEMENT OF

INDUSTRIAL RELATIONS

RESEARCH ESSAY

SEMESTER 2 2022

AVISHEK ANISH CHAND

A00210446
LECTURER: KARISHMA SHARMA
NAMAKA CAMPUS
 Table of contents

Table of Contents
Introduction....................................................................................................................................................................
Literature review.............................................................................................................................................................
Research methodology...................................................................................................................................................
Analysis...........................................................................................................................................................................
Loss of Employment....................................................................................................................................................
Reduced Working hours and Wages...........................................................................................................................
Loss of Workers to the Informal Sector.......................................................................................................................
Working Environment...............................................................................................................................................
Reskilling of Workers.................................................................................................................................................
Conclusion.....................................................................................................................................................................
Bibliography..................................................................................................................................................................
 Introduction

During the last 3 years there has been many financial and economic challenges faced by the
people of Fiji, the severe category 5 cyclone which brough with its devasting winds that
destroyed infrastructure and damages. Covid-19 was an unexpected event that shocked and
changed the world further creating new norms for society. Recent war, the invasion of
Russian forces on Ukraine has also affected the world in terms of resources such as crude oil
and energy, gas and fuel prices have skyrocketed.
These unexpected turns in natural events have affected the economy of Fiji and with-it
employment and industrial relations. The research is based on finding and figuring out what
changes and impact it has made on the employment and industrial relations in Fiji. It will also
focus on in-depth experience of employees working under these conditions and how these
affected performance and employee- management bonds and the key problems such as loss of
employment during and after the time of the pandemic. What affect reduced working hours
and wages had on employee performance and faith in management together with how covid-
protocols have change the working environment for the better or for the worse. How
redundancies have shifted population into the informal sector to survive and if Fiji as a whole
can move forward after these tragedies have passed.
 Literature review

At a public level, the Fijian economy recorded its biggest downfall in regards to GDP as it
decreased by 21.7% in 2020 (International Finance Coporation, 2020). As the talk on the
pandemic slowly tied down after 2 years, an invasion by Russian military forces on Ukraine
on the 24th of February 2022 took the world by storm which has resulted in many
implications on Europe and the rest of the world (PIKULICKA-WILCZEWSKA, 2022), this
situation has resulted in supply chain issues and rising inflation and a major direct impact has
been felt by the people of Fiji as fuel prices have risen to $3 per litre and are scheduled to rise
higher in the future should the war continue (Reserve Bank of Fiji, 2022). Fiji’s biggest
contributor to the national GDP as that of course the tourism industry (Strugnell, 2021). The
tourism industry has felt the toll of the pandemic the most due to governmental policies such
as lockdowns, restriction of movement in and out of a country (FIJI TRADES UNION
CONGRESS, 2020). These has evidently resulted in a large number of employees being
made redundant and a shift from the formal industry sector to that of an informal sector
(International Finance Coporation, 2020). Employees working in formal sectors have joined
the informal sector through entrepreneurships, starting their own business to survive (FIJI
TRADES UNION CONGRESS, 2020).
A survey conducted on the tourism industry, results showed that over 50% of the employees
were on leave without pay or working on lower wages than usual and only 21% were
employed (International Finance Coporation, 2020). 54% of workers who were made redundant
or had their employment contracts terminated, majority of them were in dire need of financial
assistance and work to survive, 46% of redundant made employees have wandered into
independent work, with the greater part traveling effectively as they approach land and fisheries
(FIJI TRADES UNION CONGRESS, 2020)

Loss of employment during covid- 19

The covid- 19 pandemic was a devastating period for the people of Fiji as it has not only
impacted the health but also the daily incomes of the people. Fiji’s economy had faced its
major downfall during the pandemic which it was not prepared for. Many businesses were
forced to shut down and workers sent home as a result. The most affected sector was tourism
industry with the closure of international borders and government policies which further
deteriorated Fiji’s economy as it was one of the major GDP contributors (FIJI TRADES
UNION CONGRESS, 2020). It further led to closure of 93% of tourism industry from late
march which resulted in approximately loss of 115,000 jobs (Wairi, 2021).
A survey by the international finance corporation showed that only 21% of the workers could
be maintained while over 50% of the employees had to be sent on leave without pay or were
to work for lower than usual wages (International Finance Corporation, 2020) . With the loss
of jobs, lockdowns and increasing covid 19 cases, it was getting very difficult for people to
manage their households. The “no jab, no job” policy was also implemented during the
pandemic which further challenged lives of people that were not in favour of vaccination.
However, despite many controversies and disputes, the problem was soon solved with
vaccination awareness and a promise to normalcy. “We have lost our jobs. Our household
income is affected. We are now taking out from our savings, whatever little we have. Our
major worries are that of groceries and paying for the rent. I am frightened that he (landlord)
will tell us to go. We also have our sickly elderly parents residing with us (Female, itaukei,
29 yrs.)” (Dean, 2021). This was the impact of the pandemic of the lives of the people with
loss of employment and it will take time for people to get back to their regular lives.
Fortunately, the government was able to provide some relief in form of covid-19 assistance
and people could also withdraw money from their Fiji National Provident Fund accounts.
Reduced working hours and wages Fijis economy was shook with the impact of the pandemic
as it had reduced the GDP growth by as much as 19% in 2020, compared to earlier estimate
of 21.7 (Rup Singh, 2021). Hence, many businesses had to reduce their number of
employees which resulted in termination, reduced working hours and reduced wage rates of
workers. The rapid increase in the transmission of covid- 19 had also forced the government
of make stringent policies which included lockdown, restricted movement, curfew and
closure of all non-essential businesses. Thus, as a result most of the workers of these
businesses were laid off or were to work from home with reduced working hours and wages.
The direct impact of this was felt on individuals’ households as they now had to survive with
the limited or no income at hand. “Without a job at hand, no bank wants to give us loans, the
only option is to access funds through our superannuation......even that is not enough......you
know (Male, Indian descent, 30 yrs)” (Dean, 2021)shift into informal sector by workers.
The brunt of covid- 19 was being felt all over the world, Fiji being no exception. People were
facing a new challenge everyday with numerous cases being recorded daily and government
policies implemented. The need for survival had forced many people to make earnings from
informal employment such as farming, fishing and starting their own small businesses. This
statement can be supported from a survey by the international Finance Corporation which
reported that a large number of employees were being made redundant and to shift from the
formal industry sector to that of an informal sector (International Finance Corporation, 2020)
and employees have also started their own business to survive (FIJI TRADES UNION
CONGRESS, 2020). The Fiji Trade Union had also stated that formal workers were now join
on independent work searching through land and fisheries work opportunities (FIJI TRADES
UNION CONGRESS, 2020). Another opportunity that people made use of during the
pandemic to help in survival was through use of social media. The cash scarcity allowed
people to start an online bartering page on Facebook called “Barter for Better Fiji” (BFBF)
where people bartered goods and services in exchange for food and basic household items.
https://researchdirect.westernsydney.edu.au/islandora/object/uws:60814/ Hence, although
people have lost their jobs during the pandemic; a positive impact could also be identified as
people learn to focus other sectors such as agriculture and fisheries to thrive in the future.
Covid protocols and how it affected work environment Many government policies were
brought into effect with the pandemic such as social distancing, wearing face masks, limited
gatherings at public places, work, halls and house of prayers and mandatory vaccination.
According to M.F. Ali et al, the virus had brought about stress, anxiety and fear amongst
individuals which could be frightening and elicit strong emotions. Similarly, covid protocols
such as social distancing can make people feel lonely and disconnected from their family and
friends, which further leads to increasing stress and anxiety (Mohammed Feroz Ali, 2021).
This also affects a person’s ability to work efficiently which results in poor work outcomes
and lower self-esteem. A person also becomes vulnerable to self-harm in case of isolation
which is also a major covid- 19 protocol. Therefore, it is important that employers assist in
stress management during the pandemic at workplace to help their employees gain
confidence at work place.
At a public level, the Fijian economy recorded its biggest downfall in regards to GDP as it
decreased by 21.7% in2020 (International Finance Corporation, 2020). As the talk on the
pandemic slowly tied down after 2 years, an invasion by Russian military forces on Ukraine
on the 24 the of February 2022 took the world by storm which has resulted in many
implications on Europe and the rest of the world (PIKULICKA-WILCZEWSKA, 2022) ,this
situation has resulted in supply chain issues and rising inflation and a major direct impact has
been felt by the people of Fiji as fuel prices have risen to $3 per litre and are scheduled to rise
higher in the future should the war continue (Reserve Bank of Fiji, 2022) . Fiji’s biggest
contributor to the national GDP as that of course the tourism industry (Strugnell, 2021). The
tourism industry has felt the toll of the pandemic the most due to governmental policies such
as lockdowns, restriction of movement in and out of a country (FIJI TRADES UNION
CONGRESS, 2020). A survey conducted on the tourism industry, results showed that over
50% of the employees were on leave without pay or working on lower wages than usual and
only 21% were employed (International Finance Corporation, 2020). 54% of workers who
were made redundant or had their employment contracts terminated, majority of them were in
dire need of financial assistance and work to survive, 46% of redundant made employees
have wandered into independent work, with the greater part traveling effectively as they
approach land and fisheries (FIJI TRADES UNION CONGRESS, 2020)
 Research methodology

The data used in this assignment is mainly from secondary research through internet, online
journal articles, books, newsletters, newspapers, and business magazines. Any data used in
this assignment is from a verified source with reference provided. All information gathered
has been proof read before using it in this paper.
 Analysis

Fiji is a small island nation geographically situated 18 00 S 175 E of Hawaii in the centre of
the South Pacific making it the hub for means of connection between neighbouring pacific
countries for international trade lines and institutes (Foye, 2008). In recent times the world
has undergone some drastic changes and this has heavily affected operations in Fiji. An
episode of a strange pneumonia described by fever, dry hack, and weariness, and periodic
gastrointestinal side effects occurred in the Huanan Seafood Wholesale Market, in Wuhan,
Hubei, China (Wu, et al., 2020). 4 months later the episode spread across the world with the
World Health Organization declaring the virus a worldwide pandemic due to the seriousness
of the disease which already had resulted in a large number of deaths (Wu, et al., 2020). The
almost immediate health and financial downturn set off by the pandemic had broad
repercussions on enormous and small business enterprises in Fiji. The development of people
halted, while exchange of goods and merchandise has become intricate, disturbing worldwide
exchange for years to come. At a public level, the Fijian economy recorded its biggest
downfall in regards to GDP as it decreased by 21.7% in 2020 (International Finance
Coporation, 2020). The pandemic also had other socio-geographic impacts on the people of
Fiji as well. As the talk on the pandemic slowly tied down after 2 years, an invasion by
Russian military forces on Ukraine on the 24th of February 2022 took the world by storm
which has resulted in many implications on Europe and the rest of the world (PIKULICKA-
WILCZEWSKA, 2022), this situation has resulted in supply chain issues and rising inflation
and a major direct impact has been felt by the people of Fiji as fuel prices have risen to $3 per
litre and are scheduled to rise higher in the future should the war continue (Reserve Bank of
Fiji, 2022).

Loss of Employment
40% of Fiji GDP derives from the tourism industry making it the largest contributor and
employs around 100 000 Fijians directly and directly through formal and informal sectors
(FIJI TRADES UNION CONGRESS, 2020). According to the Fiji Bureau of Statistics,
almost 900,000 travellers showed up on Fiji shores with an in general development of 4.2%
for 2018-2019 (SMS Research & Marketing Services, Inc, 2021).In 2019, Fiji's travel
industry income was simply over FJD 3billion, containing FJD 2,080 million in complete the
travel industry profit and FJD 958 million in arrangement of air traveller administrations
before the pandemic (SMS Research & Marketing Services, Inc, 2021).
 (UNITED NATIONS PACIFIC, 2020)
Ever since the pandemic, the country had to implement lockdown procedures which resulted
in no visitors in and out of Fiji (International Finance Coporation, 2020) hence resulted in
lack of cash flow and product and service demand from consumers due to inflation. It was
reported that around a third of the tourism sector had serious problems in cash flow and were
thinking of cutting ties with supplier and redundancies (FIJI TRADES UNION CONGRESS,
2020). March of 2020, the Fiji Hotel and Tourism Affiliation (FHTA) declared that 93% of
its 279 organizations were forced to completely shut down to the decrease in travellers
(Nand, 2020). On the 19th of June, the Air Terminal Services Fiji Limited had to let 285
employees as an immediate consequence of the foregoing pandemic with around 700
employees indirectly. Prime Minister Voreqe Bainimarama during his UN Assembly speech
stated that Fiji, due to covid-19 had lost more than 100 000 jobs and around 50% revenue
(DEO, 2021). It is evident that there was loss of employment in all sectors of the industry
even small business enterprises since they were heavily reliant on the tourism sector for cash
flow. Figure 3.4 below shows the industries that were affected by covid-19.

(International Finance Coporation, 2020)

The informal business industry equates to around 18-25% of the country’s GDP, a sector that
gives self-and pay work to the greater part the nation's functioning populace (UNITED
NATIONS PACIFIC, 2020). Be that as it may, casual laborers, especially ladies, are
generally located in the lower parts of the financial pyramid, with less assurance and
adaptability than their proper partners (UNITED NATIONS PACIFIC, 2020). Informal
business in the midst of monetary difficulties and cataclysmic events (like the ongoing
pandemic and recently started war) have no choice except to continue working; likewise, as
additional individuals, especially youth, swarm into the informal economy, the net outcome is
an ever-increasing number of firms or people seeking increasingly small bits of a contracting
(casual) pie (UNITED NATIONS PACIFIC, 2020). To summarize, poor becoming poorer.
The RBF June Economic Review likewise uncovered that the quantity of positions promoted,
shrunk by a critical 48.8 percent on a yearly premise up to May, showing discouraged
enlistment expectations and business exercises and further featuring credit totals were
intelligent of the financial withdrawal (Reserve Bank of Fiji, 2022). Loss of employment was
a major impact that was felt on the employment/ industrial relations in Fiji.

Reduced Working hours and Wages

Even though many businesses were halted in their progress and some even completely shut
out, employers still tried their level best to maintain employees for as long as they could until
they couldn’t and had to adapt in order for the business to survive. A survey conducted on the
tourism industry, results showed that over 50% of the employees were on leave without pay
or working on lower wages than usual and only 21% were employed (International Finance
Coporation, 2020).

(International Finance Coporation, 2020)

Study done by the Trade Union Congress in Fiji showed that they had able to negotiate with
business and minimize the number of employees made redundant or completely laid off by
20% (FIJI TRADES UNION CONGRESS, 2020). They also noted that employees were
eager and showed interest to join unions in the future. Practically half of impacted employees
on decreased pay were procuring 30% less contrasted with pre-COVID-19. In light of the
base wage rate and 30% decreased pay, a typical labourer on diminished hours would be
bringing back home $75.00 per week (FIJI TRADES UNION CONGRESS, 2020). In light of
the Fiji HIES (2008-9), the Basic Needs Poverty Line (BNPL - $) was $144 (2003) and $186
(2009), accordingly it tends to be assessed that in 2020, a domestic group of 4 would require
at least $260 each week (FIJI TRADES UNION CONGRESS, 2020). Accordingly, it tends to
be accepted that the salary of most of laborers on decreased pay, is 70% underneath the 2020
assessed BNPL.
This was evident as the unemployment benefit claims in the Fiji National Provident Fund
(FNPF), under the Coronavirus withdrawal plans, rose pointedly in May and June up to 85
945 (FIJI TRADES UNION CONGRESS, 2020).

(FIJI TRADES UNION CONGRESS, 2020)

It has also led to workers willing or already have joined their respective unions in order to
minimize the effect of job loss, reduced working hours and wages- in poverty lines rising as
the poor become poorer, countless redundancies have made employees lose faith in
management and has created an environment of fear where any one employee could be
terminated during the process.

Loss of Workers to the Informal Sector

54% of workers who were made redundant or had their employment contracts terminated, majority
of them were in dire need of financial assistance and work to survive, 46% of redundant made
employees have wandered into independent work, with the greater part traveling effectively as they
approach land and fisheries (FIJI TRADES UNION CONGRESS, 2020). The rest - who are primarily in
metropolitan regions, are working as locally established miniature organizations or have started
their own small business and are getting to clients through events organized by communities or
potentially street side business (FIJI TRADES UNION CONGRESS, 2020). A pilot who had over 17yrs of
flying experience who was laid during covid by Air Terminals Fiji decided to head back to his roots
and cultivated a yaqona business (Nasokia, 2020). Similarly, 42-year-old airline steward Sanjeet
Kumar began dealing with Indian food and desserts with the backing of his better half at a local flea
market (Nai, 2020). One more imaginative drive by a travel industry worker who lost his employment
as a culinary specialist in a main resort decided to open and run his own food truck called 'That Food
Box Fiji' and a versatile occasion catering administration, Mr Maharaj alongside his sibling currently
utilizes four individuals and the truck in Suva focal business district, an idea that was a first in Fiji
(Elbourne, 2019). Theses are all great examples of how workers and individuals have seen the light
in entrepreneurship and the benefits related to it. The formal sector has lost workers and will need
to hire the same level of workers as before the pandemic.

Working Environment

Since the virus was labelled a worldwide pandemic, governments of the world along with the Fijian
government tried its best to limit its destruction by implementing various safety policies and
requirements. These policies a 2m safe distancing as the virus was airborne and also could spread
through contact, face masks were also a mandatory requirement and fines were put in place for
those who didn’t comply (Strugnell, 2021). Due to these policies and the destructive damage it did
to business in Fiji, organizations had to adapt if there were to continue with business activities, a
new strategy was implemented in 40% of companies; teleworking or working from home and had
become a new norm in a few months (Mehmet Akif Guler, 2021). The Mindset of workers have been
impacted too because of the ramifications of safeguard measures, interaction when at work would
be connection based with peers which established a positive climate, with telecommuting,
correspondence among companions and the executives changed and this added to worker stress as
due to lockdowns, no one was allowed outside their homes and this in return was seen in worker
productivity, as productivity levels dropped in companies (Helena Buli ´nska-Stangrecka, 2021). Job
satisfaction amongst employees were at an all time low which could be directly linked to such
governmental polices. Employers were partially to be blamed as well as to recover costs during
covid, benefits that were agreed beforehand between management and employees such as health
benefits, company allowances, promotions were all diminished (UNITED NATIONS PACIFIC, 2020).

Fiji was the first in the South Pacific to receive its Covid-19 vaccines and it was made mandatory that
all workers were to be vaccinated, these didn’t sit well with employees and around 200 teachers’
employment contracts were terminated by the Ministry of Education because they simply refused to
get vaccinated (Cava, 2021). It has been reported that 13 184 teachers are without work due to the
vaccination rule (Cava, 2021). This resulted in an uproar from trade unions and the Fiji Trade Union
Council, Felix Anthony stated that ‘‘We don't really accept that the public authority ought to play a
part to force such circumstances on business. Laborers have aggregate arrangement, they have
setting, and assuming there will be any change to the terms and conditions of employment then
legitimate talks and collective bargaining ought to happen’’ (Rovoi, 2021).

Reskilling of Workers Since the government implemented such safety policies in place,
organizations had to adapt and train their employees in these policies which added to their
communal stress and economical challenges, they had to take time out to educate workers as if such
policies were implemented by business, then the consequences included severe fines and bookings
(International Finance Coporation, 2020).
 Conclusion

To conclude this research has been successful in identifying the implications of recent
economic and financial challenges faced by the economy together with business in Fiji and
how these have affected the employment and industrial relations in the country. Loss of
employment in all sectors of the economy especially those in the tourism sector and how
these has boosted the informal sector with new entrepreneurs. How reduced working hours
and wages has affected those poor working-class individuals especially women and youth and
the direct impact it could have gone forward. The implementation of safety protocols by
governments and adherence to polices has resulted in business losing time, effort and money
in educating employees on such policies. Working from home has become a new norm and
the stress that this has caused employees leading to low productivity. This has also resulted in
youths and individuals not wanting to revert back into normal working environments.
The pandemic and war have significantly impacted employment and industrial relations so
much that changes have had to be made to minimize damages.
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