Observation (CEACR) - adopted 1991, published 78th ILC session (1991)

Right to Organise and Collective Bargaining Convention, 1949 (No. 98) - Fiji (Ratification: 1974)

With reference to its previous observation, the Committee takes note of the Government's report, the comments of the Fiji Trades Union Congress (FTUC) dated 5 and 15 November 1990, as well as the conclusions reached in relation to this Convention by the Committee on Freedom of Association in the context of Case No. 1425 (268th Report of the Committee, paras. 410-458, approved by the Governing Body in November 1990).

1. Article 2 of the Convention. In its previous comments, the Committee had stressed the need to adopt specific measures, particularly through legislation, to guarantee adequate protection (accompanied by sufficiently effective and dissuasive sanctions) to workers' organisations against any act of interference by employers or their organisations. In its most recent report, the Government recognises that the present legislative situation does not seem to comply fully with the requirements of Article 2 of the Convention. It states that, although the Government has not experienced interference by employers in trade union activities, consideration will have to be given to changing the law in order to comply fully. According to the Government, this will be looked at when the next amendment of the relevant laws is considered.

The Committee welcomes this development. It asks the Government to inform it as soon as possible of the elaboration of the necessary legislation and to indicate when such an amendment will be before the Legislature so that full effect is given to this Article.

2. Article 4 of the Convention. The Committee had requested information on the scope of the restrictions on collective bargaining imposed by the Counter-Inflation (Remuneration) Act. The Government stresses again that the Act lays down limits for salary and wage increases and does not bar negotiations on other terms and conditions of work; collective agreements have been renegotiated during the currency of this Act affecting these latter issues. It supplies copies of Variation Orders issued under the Act (allowing 6 per cent wage increases from 1 January 1989 and from 1 July 1989) and points out that wage increases had been negotiated in the Tripartite Forum and implemented through the issuance of appropriate Variation Orders. The Government adds that the machinery necessary to foster voluntary negotiations is contained in section 14 of the new Constitution, and that such negotiations are encouraged through the provisions of the Trade Union Act, the Trade Union Recognition Act and the Trade Disputes Act. It also states that the imposition of wage ceilings is intended as a short-term solution to Fiji's economic recovery and it is hoped that, with continuing economic improvement, the Act will be repealed and free collective bargaining reintroduced without any further restriction in order to comply fully with this Article of the Convention.

While noting the Government's explanations on this point, the Committee recalls that, where for compelling reasons of national economic interest, a government considers that wage rates cannot be fixed freely by means of collective negotiations, such a restriction should be imposed as an exceptional measure, and only to the extent necessary, without exceeding a reasonable period, and it should be accompanied by adequate safeguards to protect workers' living standards (1983 General Survey, para. 315). The Committee notes that the wages ceilings date back to 1986 and followed a wage freeze announced on 9 November 1984, restraint measures which were criticised by the Committee on Freedom of Association in an earlier case against the Government of Fiji (Case No. 1379, approved by the Governing Body in March 1987). The present Committee also observes that no evidence is supplied by the Government to show that legislation of this type is an exceptional measure and provides protection of workers' living standards. It does not appear therefore that the criteria for acceptable limitations on voluntary collective bargaining have been met. The Committee accordingly asks the Government to inform it of the measures it intends taking to lift this restriction on free wages bargaining in order to ensure full compliance with the Convention on this point.

3. Also in relation to Articles 3 and 4 of the Convention, the Committee takes note of the FTUC's comments dated 5 and 15 November 1990. These comments indicate that bargaining is hampered by employer refusal to recognise independent unions; for example, the Vatukoula Joint Venture Mining Company has refused to recognise the recently registered Fiji Mineworkers' Union. Secondly, the FTUC raises the problem of workers in free trade zones, such as the garment workers: the Garment Manufacturers' Association apparently unilaterally set the employment conditions of these workers without any discussions with the Garment Workers' Association or the FTUC and, although in October 1990 a garment industry wages council was set up, it has yet to prescribe minimum rates of pay and working conditions. Moreover, the FTUC states that the council has a majority of government and employer representatives who have proposed - through the media - minimum rates of pay that are well below the cost-of-living in Fiji. Thirdly, the FTUC reports that the Government has failed to reactivate the Tripartite Forum, which apparently was last convened in 1985.

4. Lastly, the FTUC refers to a government announcement of April 1989 that it would amend trade union legislation in order to remove the existing rights of several categories of workers; although no action has been taken in this direction, the FTUC sees this as a real threat.

5. Since the Government has not replied to these comments of the FTUC, the Committee asks the Government to send its observations so that the Committee will be in a position to examine the situation as a whole at its next meeting.