HRM603: COMPARATIVE STUDIES IN

INDUSTRIAL OR EMPLOYMENT
RELATIONS

INDUSTRIAL OR EMPLOYMENT RELATIONS IN FIJI

 CONTENT
1. Objectives

2. Introduction
3. Key Players & Institutions
4. The role of the State
5. Key features and process of ER/IR
6. Employment Relations Promulgation (2007)

7. Summary & Conclusion

 OBJECTIVES
At the conclusion of this topic, you should be able to:
1. Describe various IR parties and institutions in Fiji

2. Critically examine the main features and processes of

Fiji’s ER/IR System.

3. Identify and analyze the current trend/changes in

ER/IR in Fiji

4. Compare and contrast the main key features of Fiji's

ER/IR system with other Countries
 FIJI STATISTICS
 Reference: World fact book 2020
 GDP - $8.629 billion (2017 est.)
 GDP growth rate – 3% (2017 est.)
 Labor force – 353,100 (2017 est.)
 Labor force – by occupation
 agriculture: 44.2%
 industry: 14.3%

 services: 41.6% (2011)

 Unemployment rate 4.5%(2017) & 5.5% (2016)

 Inflation rate: 3.4 (2017) & 3.9% (2016)
 FIJI STATISTICS
 ILO STATS
 Labor force participation rate – 57.6% (2016)
 Labor force participation rate – men – 77%
(2016)
 Labor force participation rate – women – 38.6
(2016)
 Employment to population ratio – 55.1%
(2016)
 INTRODUTION
 Fiji, is rife with all forms of disputes.

 Like most communities or developing nations, it has disputes which

cover a wide variety of areas such as:
(i) neighborhood disputes;
(ii)family disputes;
(iii)commercial disputes; and
(iv) environmental disputes.
 However, it is the area of industrial or employment relations that
generates the most disputes in Fiji.

 These disputes are quite serious in terms of their outcomes because,

unlike Australia, Fiji has no social security safety net.
 INTRODUCTION(CONT)
 Example: If an employee/worker loses his or her job, they have no
source of financial support to fall back on

 In 1973, the Fiji Government enacted the Trade Disputes Act Cap
97 that required parties to try and resolve disputes themselves.
(now repealed and replaced by ERA 2007)

 In the event the parties fail to resolve the dispute themselves, the
Act forces/obliges the parties to conciliation, sometimes followed
by arbitration.

 This complex weave of dispute resolution processes was designed

to maximize the chances of resolution before drastic action can
occur, such as dismissal or a strike.
 INTRODUCTION (CONT)
 The Fijian Parliament has enacted a new Employment or Industrial Relations
legislation (ERP2007) which seeks to preserve the stages of dispute resolution
currently being practised but introduces mediation as an additional method of
dispute resolution prior to adjudication.
 It was against this background that Macquarie University’s Centre for Dispute
Assessment and Resolution (CeDAR) was employed to deliver consultancy
services
 CeDAR also provided training services to the Fiji Employers Federation
(FEF, now FCEF)and the University of South Pacific (USP) in January 2004.

 CeDAR was a joint initiative between the Macquarie University Division of

Law and the Graduate School of the Environment and is designed, amongst
other things, to advise and implement dispute resolution systems for
government and industry.
 KEY PLAYERS – TRADE

UNIONS
IR has developed along a mix of the traditional British voluntarist
and more interventionist traditions that had developed in New
Zealand and Australia (Prasad et. Al., 2003)

 Trade Unions are relatively well developed in Fiji.

 Workers organizations evolved in the sugar and in Public sector in
the 1930s
 The Industrial Associations Act of 1942 - makes provision for the
formation, compulsory registration and regulation of industrial
associations grouped around industries

 Trade Union Act, Trade Union Recognition Act 1998 legalized the
existence of TU.
 KEY PLAYERS – TRADE

UNIONS
However, these Acts are now repealed by the Employment
Relations Promulgation (ERA2007)

 Unions developed in 1950s & 1960 onwards were in the key

sectors of public services, and came to generally organized along
industry rather than craft lines.

Two Main TUC

The Fiji Trade Union Congress (FTUC)

 FTUC was formed in 1951

 It is a national organization and is recognized by the government
as the representative of workers
 KEY PLAYERS – TRADE

UNIONS
Currently 30 individual unions are affiliated to FTUC with a
membership around 33,000 members
 The FTUC is strongly associated with the Labour party as after
the wage freeze in 1984, this party was formed by the FTUC.
 In 2013 FTUC established the People's Democratic Party to
contest the 2014 election
 Major affiliates include: the Fiji Public Service Association, the
Fiji Teachers Union, the Fiji Sugar & General Workers Union,
the National Union of Hospitality, Catering & Tourism Industries
Employees and the National Union of Factory and Commercial
Workers Union.
 KEY PLAYERS – TRADE
UNIONS
2. The Fiji Islands Council of Trade Unions (FICTU)
 Formed in 2002 as a breakaway from and rival to the FTUC,
which they see as too closely linked with the Labour Party.

 In early October 2018 the FICTU announced its decision to rejoin

the FTUC, which formally happened on 27 October 2018.

 Trade union density is declining in Fiji.

 Currently TU Density is less than 30%.

 Visit www.ftuc.com.fj to read more on the latest updates
 KEY PLAYERS – EMPLOYER’S
ASSOSCIATION
 There is only one Employers’ Association in Fiji which was formed
in the 1960 and is called the Fiji Employers’ Federation (FEF) (now
FCEF)
 It was established with 21 members in 1960 with the name as the
Fiji Employers Consultative Association (FECA), later changed its
name to FEF in 1991.
 FECA was formed in response to the major strike in 1959 between
oil (fuel) companies and Oil and Allied Workers Union.
 Currently it has more than 236 enterprise registered members
 It provides advice, support and training to its members on industrial
relations, and
 Wide range of employment/work related matters.
 THE ROLE OF STATE
 The role of the state in modern capitalist economies can hardly be
ignored

 Whether through legislation, macro economic policy or its role as

an employer, the presence of the state is pervasive

 The state had traditionally played various roles in different

countries, most especially providing the institutional framework for
the bilateral relationship between workers/trade unions and
employers/their representatives to encourage a bipartite relationship
 THE ROLE OF STATE (CONT)
 Listed are some of the key roles of state in an IR/ER context
1. Provision of institutional framework – the general aim of the
state is to provide for the bilateral relationship of the two actors
in the system; that is the relationship between worker/trade union
and employers/ their representatives.
 This is with the general aim of regulating conflictual relationship
between management and labor at all levels of the enterprise
2. Provision for collective bargaining – the state provides the
general alternative or mechanism for settling general terms of
employment by non political means.
The general framework includes some substantive provisions for
minimum standards of conditions of employment such as
minimum wages
 THE ROLE OF STATE (CONT)
3. Limiting or avoiding industrial conflicts – in all developed nations,
the state tries to avoid or limit collective industrial conflict.

4. Interpretation of conflict of right and interest – clear distinction is

made between individual and collective conflict of interest (i.e.,
about the interpretation, application and operation about the
existing CA) which are to solved peacefully between the parties.

 On the other hand, conflict of interest (i.e., any other

conflict/disputes apart from conflict of rights) involves different
methods of conflict resolution.
 Example: LOC lodged by trade unions on behalf of
members/workers
 KEY FEATURES & PROCESSES
Collective Bargaining (CB)
 Traditionally centralized, but is now decentralized and conducted
at enterprise level
 Pay and working conditions are determined by the Wages Councils
in 10 different industries/sectors under National Wage Order
 It has an industry based minimum wage prescribed under the
wages regulation order
 Wages are fixed through Bipartite Agreements (Employers/Trade
Unions) before being gazetted
 Sectors without Collective Agreement- wages are determined by
Wage order enacted by Ministry of Employment, Productivity
and Industrial Relations
 LMCC
 Employment Relations (Labour-Management
Consultation and Cooperation Committees) Regulations
2008.
 Provides for the establishment of Labour-Management
Consultation and Cooperation Committees in
workplaces that employment more than 20 workers, in
order to practice the principles set out in Schedule 1 to
the Promulgation. Provides, inter alia, for membership,
registration and role of the Committee.
EMPLOYMENT REALTIONS ACT 2007 (ERA)
 ERP came in to force in 2nd April, 2008

 ERP was established to provide various labour standards and

social protection provisions for workers and to promote good
faith social dialogue and productivity improvement in
workplaces.

 Currently it is cited as Employment Relations Amendments

Act 2018.
 EMPLOYMENT REALTIONS ACT
(ERA)
 The ERA consolidates existing legislation and repeals the
following 6 Acts:

 Trade Disputes Act (Cap 97);

 Wages Councils Act (Cap 98);

 Trade Unions Act (Cap 96);

 Trade Unions (Recognition) Act 1998;

 Public Holidays Act (Cap 101); and

- Workmen Compensation Act

 EMPLOYMENT REALTIONS ACT
(ERA)
 The ERA applies to all employers and all workplaces in Fiji (few
exemptions, e.g.; Mining industry)

 No person may employ a worker and no worker may be employed

under a contract of service except in accordance with the ERA

 Government entities or civil servants are now exempted from the

Employment Relations ACT (ERA)

 Government and civil servants remain subject to the Employment

Relations Tribunal for claims under the Workmen's Compensation
Act [Cap. 94] and Health and Safety at Work Act 1996.
 ERA (2018) - PROVISIONS
 Certain rights have now been enshrined in the ERA. 
 For example, non-discrimination provisions and equal
remuneration for males and females
 The ERP also contains provisions in respect of Equal Employment
Opportunities (EEO)
 In respect of redundancy, the ERA (Section106-108) provides that
if an employer terminates a worker’s employment for reasons of an
economic, technological, structural or similar nature,
 The employer must pay to the worker not less than one week’s
wages as redundancy pay for each complete year of service in
addition to the workers other entitlements
ERA (2018) – PROVISIONS (CONT)
 As per ERP (2007), section 33 of summary dismissal, Employers
may dismiss an employee on the following grounds:

 Where a worker is guilty of gross misconduct;

 For willful disobedience to lawful orders given by the employer;
 For lack of skills or qualifications which the worker expressly or
by implication warrants to possess; and
 For habitual or substantial neglect of the worker’s duties; or
 For continual or habitual absence from work without the
permission of the employer and without other reasonable excuse.
 While dismissing a worker the employer must, provide the worker
with reasons, in writing, for the summary dismissal at the time he
or she is dismissed.
 ERA (2018)– PROVISIONS
 (CONT)
The ERP also establishes new institutions, such as Mediation Unit to provide
mediation services.
 The ERP also establishes an Employment Relations Tribunal (ERT) and
Employment Court (EC) to adjudicate grievances between parties to
employment contracts.
 ER Bill establishes the following dispute settlement machineries for both
unionized and non-unionized workers:-
 All in-house disputes are settled through an employment grievance procedure
as stipulated under their individual contract or collective agreement.
 All grievances are reported to the Ministry of Labour (MOL) and is referred to
Mediation Service or Employment Relations Tribunal (ERT), depending on
nature or grievance/dispute (dispute of rights/interest)
 The Mediation will only commence after the PS Labour has accepted the
dispute/grievance
 ERA (2018)– PROVISIONS (CONT)
 For sexual harassment issues, discrimination cases and matters for
legal interpretation are referred directly to ERT

 All employment disputes (for unionized workers) are referred to

Mediation Service

 Disputes not resolved in the Mediation Service will be referred to

the ERT

 Matters not resolved in the Employment Tribunal will be referred

to the Employment Court
 SUMMARY & CONCLUSIONS
 The IR/ER systems in Fiji has evolved over the years
 Traditionally, the system was one of compulsory conciliation with
arbitration in the background
 Under the ERP, the system has been decentralized where the
parties are required/obliged to resolve their disputes/grievances at
enterprise levels
 Collective bargaining are being conducted at sectoral and
enterprise level in accordance with procedures in the ERP – good
faith bargaining
 Third party intervention takes place where the parties have
exhausted all avenues stipulated in the CA/employment contracts
 The Employers Association and Trade unions alike continue to
play pivotal role in their designated functions/responsibilities
 SUMMARY & CONCLUSION
 (CONT)
Strong representatives and independent employers and workers
organizations are necessary for the practice of genuine social
dialogue amongst representatives of governments, employers and
workers.
 Working towards its goals, the Fiji Commerce and Employers’
Federation (FCEF) in partnership with the ILO’s Employers’
Bureau, ACT/EMP, launched its Employment Relations Service
on the 13th Dec 2011.
 The service involves the employment of an Industrial Relations
(IR) officer based in FCEF to assist employers with their IR
queries or cases.
 In addition, FCEF launched an Employer’s Guide to Employment
Relations in Fiji.
 BIBLIOGRAPHY
 National Labour Law Profile: Fiji. (2011). Retrieved May 10th,
2011 from
 http://www.ilo.org/public/english/dialogue/ifpdial/info/national/fij
i.htm
 CIA-The World Factbook-Fiji. Retrieved May 10th, 2011 from
 https://www.cia.gov/library/publications/the-world-factbook/geos/
fj.html

 Prasad, S., Hince, K., & Snell, D. (2003). Employment and

Industrial Relations in the South Pacific. NSW, Australia:
McGraw-Hill Australia Pty Limited.
 Fiji Live. ( 2011).Fiji targets 4.2 percent unemployment rate. May
23, 2010. Retrieved from
http://www.fijilive.com/news/2010/05/23/25917.Fijilive