HRM 603 – COMPARATIVE STUDIES IN

INDUSTRIAL & EMPLOYMENT

RELATIONS

Topic 10:
EMPLOYMENT RELATIONS IN
TONGA & SAMOA
LECTURE OUTLINE
• Key themes
• Historical background
• Decent Work Country Programme
• The parties:
– Unions
– The tripartite stakeholders
– Growers Federation of Tonga plays key role in policy awareness and
advocacy
– Superannuation schemes, pensions and social security schemes
– Labour legislation
– State
• Current and future issues
• Conclusions
KEY THEMES
• Poor economic growth has resulted in weak demand for labour and,
consequently, problems of unemployment especially among youths.

• It is widely acknowledged that the poor growth performance is a

result of weaknesses in the environment for private sector
development.

• A fiscal crisis resulting from large pay increases in the public

service and large-scale public service redundancies has meant that
the government had to take drastic measures to stave off economic
instability.

• Efforts to restore fiscal balance are being made, while governance

is being strengthened and private sector activity promoted.
BACKGROUND
• Tonga is reliant on external income through development assistance, loans,
and overseas remittances from the large Tongan diaspora.

• The economy is dominated by the public sector with small amounts of private
sector activity in construction, services, manufacturing, fisheries, forestry, and
tourism.

• A large share of agricultural production is for subsistence and own production,

engaging 60% of the labour force and providing almost 50 % of food
consumption for the lowest decile.

• Most government services are funded by aid. Falling domestic revenue as a

share of GDP indicates greater dependence on budget support in the short
term. A large number of Tongans participate in seasonal employment schemes
in New Zealand and, to a lesser extent, in Australia.
BACKGROUND
• Women’s work force participation is highest in areas like
handicraft, trade and service industries.

• As of 1st of January 2020 the population of Tonga was 108,137

which is a increase of 0.42 % compared 107,682 the year before.

• Tonga recorded the unemployment rate of 1.03% in 2018 which

has increased by 0.02% from 2017.
Decent Work Country Programme
• Decent work country programme is a programming tool, which was developed
through a series of consultations with the tripartite constituents and contains the
strategy for interventions planned to be undertaken.

• Within the overarching theme of Decent Work for All, Tonga’s DWCP will
concentrate on the following Country Programme Priorities (CPP) and Country
Programme Outcomes (CPOs) for the period 2018-22:

Decent and inclusive employment for a just transition

• Outcome 1.1: Improved labour market information systems collate DW and SDG
indicators and support policy decisions.

• Outcome 1.2: Employment opportunities and employable skills are enhanced for
a just transition and climate change resilience.
Decent Work Country Programme
Outcome 1.3: Developing labour administration, workplace compliance and
inspection mechanisms, including legal frameworks to enhance the work
environment.

Priority 2 – Strong and representative employers’ and workers’ organisations

influencing economic, social and governance policies.

Outcome 2.1: Tonga’s employers increase their knowledge of the ILO to better
serve their members and extend membership.
Decent Work Country Programme

Priority 3 – Ratification and Application of International Labour Standards

Outcome 3.1: Tripartite constituents effectively engage and take ownership of

their labour law reform and the preparation, adoption, reporting and review of
international labour standards.

Outcome 3.2: Tripartite partners and representative organizations in the informal

economy assist workers, including women, youth and disabled persons in the
informal economy and facilitate a just transition into the formal economy.

Outcome 3.3: Tripartite constituents strengthen the regulatory framework for a

sustainable delivery of Tonga’s social protection systems.
Trade Unions in Tonga
• Tonga already has a Trade Union Act 1964 enabling the forming of a union, however there are no
formalised trade unions established.

• There are however organisations that act as a de facto unions such as the Public Servants
Association for public servants and the Friendly Islands Teacher’s Association (FITA) for teachers.

• By joining the ILO, the Tongan government stated on March 3, that it "is indicating its commitment
to decent work principles and the progress realization of international labour standards“.

• Since joining the ILO, the government has not approved or implemented any ILO Conventions.
Consultation will be undertaken with key stakeholders prior to approving or implementing any
agreements.

• The ILO was founded in 1919 and became the first specialized agency of the United Nations in
1946. It aims to promote rights at work, encourage decent employment opportunities, enhance
social protection and strengthen dialogue on work-related issues.
 THE TRIPARTITE STAKEHOLDERS
• The Ministry of Commerce, Consumer, Trade, Innovation and Labour
(MCCTIL) as the lead government agency in Tonga with portfolio responsibility
for labour and employment issues.

• Workers’ representatives comprising representative workers’ organisations in

Tonga.

• This includes the Tonga Public Service Association, Friendly Islands Seafarers
Union, nurses’ and teachers’ association.

• Employers’ representatives that are primarily represented by the Tonga

Chamber of Commerce and Industry.

• Other stakeholders include the Council of Churches, the United Nations, the
Tonga Aid Coordination Unit, the Solicitor General’s Office, and the Bureau of
Statistics.
Growers Federation of Tonga
• Growers Federation of Tonga plays a key role in policy awareness and advocacy. GroFed is
playing a key role in creating awareness on the proposed ‘Water Bill’ in Tonga for its smallholder
farmers.

• GroFed has also coordinated with other actors in the agricultural industry to advocate Tongan
legislators to reconsider the bill in its current form. If the bill is passed, growers who have
invested in water supply in their own farm property will lose their rights to own and take water
from their water source. This bill has been deferred by Parliament in 2016 for further public
consultations.

• GroFed is also actively involved in pushing for investment in farm irrigation for smallholder
farmers in Tonga.

• Currently around 80% of farmers in Tonga are reliant solely on rain water for irrigation and
GroFed feels that there is much more to be done to improve access to irrigation which will
improve the quality of produce and help farmers to mitigate against natural disasters such as
drought.

• On this issue, GroFed is working as a key member of the taskforce for agricultural irrigation
which has been recently established.
Superannuation schemes, pensions and social security schemes
• Most Pacific island developing countries do not have any social security arrangements or
unemployment benefit schemes in place.

• However, many have national provident fund schemes, which are provided for under acts of
Parliament, with core management teams reporting to boards of directors and Ministers of
Finance.

• These schemes require all employees to contribute to the fund with employers topping-up these
contributions usually by the same amount as their employees.

• Employees who are retiring or who have agreed to voluntary retirement can withdraw their
contributions.

• Some schemes also allow members to withdraw part of their contributions for major expenses
such as for housing, payment of school fees or recovery following a natural disaster
 Labour legislation
• The Tonga labour market has been operating without any specific labour
legislation in place.

• There is no legislation governing industrial relations or disputes and the role of

trades unions nor is there any law governing minimum terms and conditions of
work or occupational health and safety.

• These issues are being addressed and preparation commenced on an

Employment Relations Bill in 2006.

• Consultations on the draft with key stakeholders have so far been completed.
 STATE
• The Government is committed to achieving higher economic growth through the development of
the private sector.

• Improvements in governance, economic policy and the regulatory environment within which the
private sector operates are now being pursued by the Government and policies to foster growth in
the labor-intensive services sector, such as tourism, are also being developed.

• The 2005 pay increases for public servants in Tonga were very substantial and ranged from 60 to
80 percent. To make the increases affordable, the government introduced a voluntary redundancy
package which was taken up by over 800 public service employees.

• The full impact of the large pay increases on the rest of the economy has yet to be felt. The lack of
adjustment in public service pay in the past was one of the reasons for the large increases that
occurred.

• This indicates that there is a need for the introduction of a sound public service pay policy that
takes account of comparable pay rates in the private sector as well as the affordability of public
service pay to the country.
SAMOA
BACKGROUND
• Industrial Relations deal primarily with the relationship between employers and the
workers.

• Employment laws and practices in Samoa, through legislations and regulations set
by government, cover issues such as minimum wage, terms and conditions
of employment, leave entitlements and dismissal to name a few.

• Samoa became a member of the ILO in 2005 and by 2008, had ratified all 8
fundamental Conventions.

• In celebration of the 90 years of the ILO, Samoa and the tripartite partners signed
the MOU of its first Samoa Decent Work Country Programme for the years 2009-12.

• The second DWCP for Samoa was signed on the 28th of November 2013 for 2013 -
16.

• Minimum wage will increase from $2.00 to $2.30 (effective from 1st Jan 2015)
Decent Work Country Programme
The parties affirm their commitment to collaborate in the
implementation of the Decent Work Country Programme under the
following 3 priorities:

• Priority 1:Completion and implementation of national labour law

reform.

• Priority 2: Young women and men have greater access to information

and employment services to support their transitions from school to
work.

• Priority 3: Tripartite capacity is strengthened.

International Labour Organisation
• ILO has enjoyed cordial relations with Samoa’s tripartite
partners – the Ministry of Commerce, Industry and Labour
(MCIL), the Samoa Chamber of Commerce and Industry
(SCCI) and the Samoa Workers Congress (SWC).

• This was reflected in Samoa’s bid to host the main

celebrations of the 90 years of ILO in 2009 with the
establishment of the Samoa National Tripartite Forum that
are currently meeting on regular basis ensuring that the
tripartite live in a harmonious environment and when comes
to social protection issues and labour matters.
Legislative Framework
• Industrial Relations deal primarily with the relationship between
employers and the workers.

• Employment laws and practices in Samoa, through legislations and

regulations set by government, cover issues such as minimum wage,
terms and conditions of employment, leave entitlements and dismissal.

• Industrial Relations laws are enforced to ensure both employers and

workers legal obligations and rights are well protected and also to
maintain harmony and stability within the employer/employee relationship.

• All workers and employers in the private sector including government

corporations and state owned enterprises are covered under the
abovementioned legislations and regulations. Workers and employers
under the Public Service Act 2004 are not covered or exempted.
Legislative Framework Cont.
• Sound economic management and high governance standards have
led to strong economic growth in recent years.

• The performance of the tourism industry has been particularly

successful however the Samoan economy remains vulnerable due to
remoteness, income volatility, limited economic diversification,
susceptibility to natural disasters, environmental damage and limited
institutional capacity.

• Samoa relies heavily on development assistance as well as on private

remittances from overseas.
Employment in Samoa
• The Working Conditions and Relations team regulate labour laws in Samoa to
ensure employers and workers are afforded certain rights, as well as requiring both
parties to fulfil their lawful obligations.

• The team also facilitates industrial / employment grievances in Samoa. The Ministry
only assesses a complaint / grievance formally lodged using the Grievance Form.

• The standard process for dealing with grievances range within two months and
extension may require in some circumstances depending on a nature of a grievance
and how employers are cooperated to the Ministry roles in advising them of their
legal obligations under the laws.

• The labour laws as mentioned above are the Labour and Employment Relations Act
2013 (‘Act) and the Labour and Employment Relations Regulations 2016
(‘Regulations’). The Act is the rebuilding of the old Act 1972 taking into consideration
the International Labour Organisation Conventions to safeguard workers and
relevancy of practices.
Trade Unions
• The Western Samoa Public Service Association (WSPSA).

• First established by expatriates in the 1920s as a section of the New

Zealand Public Service Association, the WSPSA became' localized'
after the independence of Western Samoa

• During the 1960s and 1970 it struggled to represent the interest of

permanent employees in the public service, including teachers,
doctors, dentists, nurses and post office employees.

• The WSPSA focused its efforts, primarily, on trying to maintain salary

levels with cost of living changes.

• It also assisted members with appeals regarding promotion, re-

grading and disciplinary action (Snell, 1992).
Collective Bargaining in the Public Sector
• The WSPSA has recently developed a policy position of seeking to
create a collective agreement with the government of Samoa in
regard to wages and working conditions for civil servants.

• These conditions can be arbitrarily altered by government at any time.

• Although the WSPSA has negotiated with government on wage and

employment issues, this has been as we have noted, on an informal,
'grace and favor' basis.

• A policy decision, followed by workshops to establish potential

codification, has been the beginning of a potential change.
Recent Developments
• There are three recent developments in the industrial relations scene
in Samoa that need to be highlighted.

• The formation of a general union to cover private sector unions, and

the establishment of a national trade union center.

• The drafting, and introduction to Parliament of an Industrial Relations

Bill.

• Moves to formalise collective bargaining in the public sector.

CONCLUSIONS
• The only solution over the long term for sustained employment generation in
Tonga is steady economic growth.

• A legislative framework for the labour market in the form of an Employment

Act is currently being implemented in Tonga.

• The enforcement of the new employment regulations will, however, require

increased capacity within relevant Government ministries.
CONCLUSIONS
• Unions are still marginally accepted.
• Freedom of association has been enshrined in the Samoan Constitution since
the inception of the independent; state. However, there is still no fonnal explicit
recognition for the notion of unionism.
• Samoa, like some other South Pacific nations who are not members of the
ILO (e.g. Tonga, Cook Islands, Vanuatu), has received considerable
assistance through the years from the ILO Office for the South Pacific in Suva,
Fiji .
• These developments would further strengthen Samoa's industrial relations
system and shore up social partnerships between employers, unions and
government.
• Under these arrangements trade unions seeking recognition and collective
bargaining rights would receive increased institutional support through the
courts and grievance procedures.
REFERENCES
• Bamber, G., Lansbury, R., Wailes, N & Wright C (2015). International and Comparative
Employment Relations: National Regulation, Global Changes (6th ed.). UK, London: Sage
Publications Ltd.

• Bamber et al (Ed), 2004, International and Comparative Employment Relations, Allen & Unwin,
NSW.

• IMPROVING EMPLOYMENT OPPORTUNITIES IN THE PACIFIC, Small Island Developing

States Series, No. 1. (2007). In https://www.unescap.org/sites/default/files/Impoving-employment-
opportunities-in-PIDCs.pdf (pp. 1-101). United Nations publications. Retrieved from https://
www.unescap.org/sites/default/files/Impoving-employment-opportunities-in-PIDCs.pdf

• Organization, I. L. (n.d.). https://www.ilo.org/suva/countries-covered/tonga /WCMS _634367

/lang--en/index.htm. Retrieved from
https://www.ilo.org/suva/countries-covered/tonga/WCMS_634367/lang--en/index.htm