Wage campaigner disappointed in minimum wage

Transcript

The former chair of the Fijian Wages Council says the country's new minimum wage will not address deep seeded poverty.

Fiji's labour ministry has set the country's minimum wage at US$1.05 an hour, 17 cents less than the rate recommended by an independent consultant last year.

In Fijian Dollars thats a minimum wage of $2.00, when the recommendation was for $2.32. (include this, interview discusses wages in Fijian dollars).

A wage campaigner, Father Kevin Barr, says that is less than half of what's required for workers to meet the poverty line.

Father Kevin Barr spoke to Christopher Gilbert.

Kevin Barr: The reduction from $2.32 back to $2.00 I think was very disappointing and upsetting. Because, basically it's a loss of $13 a week for those working 45 hours a week. It's a loss of 14 dollars a week, or 15 dollars a week, for those working 48 hours a week. And ideally, and I've said this many times, the national minimum wage should be set against the national basic needs poverty line. Currently that's about $190 and should require a minimum wage of $4.00 an hour. But, people are only offered half of that.

Christopher Gilbert: But the governments line is that small businesses in Fiji simply can't afford to pay $2.32 an hour.

KB: That's an argument that's been brought up for a long time against all wage increases by the employers federations and many of them are protecting their own interests, not the interest of small business. They get this as an excuse for wanting wages to be kept low. Now, anybody who starts a business either big or small is required, first of all, if they want to rent the premises they have to pay the rent. They can't say "oh look, I'll pay you half the rent". If they're getting machines for the business they can't say to the people who are supplying them with machines "I can't pay all that, I'll just pay half the cost". They won't be able to start a business. But, when it comes to workers they think "oh we can just slash the wages in half" and that's it. So I think this is a grave injustice, how we treat our workers.

CG: Will this make some positive effect for those who currently earning less than $1.00 or $2.00 an hour?

KB: Oh yes, yes of course. For those who have been receiving very, very low wages it will help.

CG: Right, but you're saying there's a bigger picture which is overall in Fiji we need to bring people up to the poverty line?

KB: Exactly, and we're going to continue to have more and more poverty. Because, unfortunately, when Dr Reddy worked out the national minimum wage he used faulty statistics, using the 2008 Housing Income and Expenditure survey. Which has now been outdated because of the 20% devaluation, which sent prices of food up 36%. You know, all that's not being taken into account.