Ministry of Lands and Mineral Resources

Fiji Mineral Resources Department

MINERAL POLICY - Section 7 : Labour & Employment

 Section 7 - Labour and Employment Policy

General Principles

7.1 Even though the number of jobs created by mining is likely to be modest, labour and employment policies in the mining sector are very important to the Fiji Government. On the positive side, Government sees the mining sector as attracting relatively well paid, high-skill positions which can be directly transferable to other sectors of the economy. On the negative side, if mines use their ability to pay high wages to attract skilled workers away from other sectors, inflationary wage pressures can quickly emerge. In Government's view the key to maximizing benefits and minimizing wage pressures is for mining companies to pursue an aggressive program of skill training designed to maximise the participation of local citizens. These complementary programs of skill training and job localisation form the core of Government's labour policy for the mining sector.
7.2 While Fiji has a free collective bargaining system, mining companies are expected to adhere closely to national wage policy and to practice wage restraint. An effective dispute settlement procedure is established in Fiji and is incorporated into comprehensive labour legislation.

Specific Policies

7.3 Mining companies are expected to develop and maintain substantial internal training programs. In general, mine management needs to look to these programs rather than to the general economy to meet their needs for skilled labour. Government is prepared to open its training facilities for collaborative programs with individual companies or with the mining industry in general.
7.4 There are no strict localization targets or rigid localization schedules in Fiji. However, experience has shown that Fiji workers are highly trainable, flexible and motivated. With this in mind, Government anticipates that most of the skilled positions in a new mine would be localized within the first few years of operation. For management and professional positions, localization may take substantially longer. While Government has no desire to set arbitrary timetables, mine managers should be prepared to submit studies on localization efforts and problems. The Immigration Department which controls the localisation process, has adopted a facilitatory approach towards mineral sector investors, recognising the specialised labour requirements of that industry relative to other sectors.
7.5 As in most developing nations, national wage levels are of concern. The ability of mining companies to pay wages which are higher than wages offered by other industries presents a special challenge to the Government's wage policy. Neither the mining industry nor the economy-at-large benefits from excessive wage pressure, and mining projects are expected to be sensitive to the special role that their wage levels may play in the national wage structure. Close cooperation between company personnel Government labour officials and the Mining and Quarrying Wages Council is encouraged.
7.6 In so far as wage differentials between expatriate employees and local recruits are necessary, employers are urged to make use of such devices as end-of-contract gratuities rather than to increase monthly pay levels, which can needlessly accentuate standard of living differences.
7.7 Government believes that recruitment procedures and practices in the mining sector need to be carefully tailored to the situation of individual projects. As mentioned earlier, Government leaves the mining company to recruit without Government interference. However, it should be recognised that residents in many rural areas are not likely to have all the skills required by a new project and, indeed, some rural areas may be hard pressed to meet even the mine's unskilled labour needs, without a substantial disruption to rural life. In situations where recruitment of people from outside the immediate area is necessary, mining companies should send recruitment teams to other prospective regions rather than advertising and recruiting outsiders at the mine site itself. In this suggestion, Government is seeking to avoid a situation where unemployed migrants are attracted to the mining area on the mere prospect of work. Government believes that once it becomes clear that only residents can be recruited at the mine site, the migrant/squatter problem will become more manageable.

Footnotes [3] [4] [5] Click on numbers to return to text.

[3] Fiji's labour laws are found in the following Acts: Employment Act (Cap. 92), Workmen's Compensation Act (Cap. 94) Trade Unions Act (Cap. 96), the Trade Unions (Recognition) Act (Cap. 96A), the Trade Disputes Act (Cap. 97), and the Wages Councils Act (Cap. 98). All are administered by the Department of Labour.

[4] The Fiji National Training Council (FNTC) is the official Government body which exists to provide training to employees of both the private and public sector. It delivers training courses on the basis of market demand, and funds these by the 'FNTC Levy', which is a 1% tax on employers' gross payrolls. Where companies choose to train workers in-house, 90% of the levy paid is refunded in accordance with the Fiji National Training Act (Cap. 93).

[5] The Mining and Quarrying Wages Council is an official body, established under the Wages Council Act to determine the minimum wages and conditions appropriate for the mining industry. Industry representatives hold permanent seats on this council.