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 2023
 Population of 947,760 (2023 est.)
 GDP - $9.578 billion (2021 est.)
 GDP growth rate -5.11% (2021 est.)
 Labor force – 372,200 (2021 est.)
 Labor force – by occupation
 agriculture: 44.2%

 industry: 14.3%

 services: 41.6% (2011)

 Unemployment rate 5.24%(2021) & 4.72% (2020)

 Inflation rate: 0.16 (2021) & -2.6% (2020)
 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.
 INTRODUCTION (CONT)
 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 (now repealed and replaced by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)
 INTRODUCTION (CONT)
 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.
 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.
KEY PLAYERS – TRADE UNIONS
 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
 KEY PLAYERS – TRADE
UNIONS
 Trade Union Act, Trade Union Recognition
Act 1998 legalized the existence of TU.

 However, these Acts are now repealed by

the Employment Relations Promulgation
(ERP2007)
 KEY PLAYERS – TRADE
UNIONS
 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.
 KEY PLAYERS – TRADE
Two Main TUC
UNIONS
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 35 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
 KEY PLAYERS – TRADE
UNIONS
Two Main TUC (cont)
 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.
 KEY PLAYERS – TRADE
UNIONS
 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.
 KEY PLAYERS – EMPLOYER’S
ASSOSCIATION (CONT)
 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
 KEY PLAYERS – EMPLOYER’S
ASSOSCIATION (CONT)
 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 ROLE OF STATE (CONT)
 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
 THE ROLE OF STATE (CONT)
 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 ROLE OF STATE (CONT)
 The general framework includes some
substantive provisions for minimum
standards of conditions of employment such
as minimum wages

3. Limiting or avoiding industrial conflicts –

in all developed nations, the state tries to
avoid or limit collective industrial conflict
THE ROLE OF STATE (CONT)
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.
THE ROLE OF STATE (CONT)
 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
KEY FEATURES & PROCESSES
(CONT)
 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
KEY FEATURES & PROCESSES
(CONT)
 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
PROMULGATION 2007 (ERP)
 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
EMPLOYMENT REALTIONS
ACT (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)
 ERA (2018) – PROVISIONS
(CONT)
 In respect of redundancy, the ERP
In respect of redundancy, the ERP
(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:

 (a) Where a worker is guilty of gross

misconduct;

 (b) For willful disobedience to lawful orders

given by the employer;
 ERA (2018) – PROVISIONS
(CONT)
 (c) For lack of skills or qualifications which
the worker expressly or by implication
warrants to possess; and

 (d) For habitual or substantial neglect of the

worker’s duties; or
 ERA (2018) – PROVISIONS
(CONT)
 (e) 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.
 ERA (2018)– PROVISIONS
(CONT)
 ER Bill establishes the following dispute
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.
 ERA (2018)– PROVISIONS
(CONT)
 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
 ERA (2018)– PROVISIONS
(CONT)
 Matters not resolved in the Employment
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
 SUMMARY & CONCLUSION
(CONT)
 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
 SUMMARY & CONCLUSION
(CONT)
 Third party intervention takes place where
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.
 SUMMARY & CONCLUSIONS
(CONT)
 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.
 SUMMARY& CONCLUSION
(CONT)
 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