Issue No: 896; 29 June 2001

The President of the Suva Retailers Association Vinod Gokal has been quoted by today's Fiji Sun as saying that the wages should be reduced until the economy picks up.

Experts say it will take at least 15 years for the Fijian economy to pick up and reach the point where it was before the terrorists struck. Businessmen, some of who are associated with the Suva Retailers Association, had contributed financially to the terrorists who held the elected government hostage.

Gokal has also stated that the government should intervene and seriously consider reducing the wages to $1/hr.

The Fiji Trades Union Congress has hit out at the call. The Congress Secretary General, Felix Anthony stated that the call was ridiculous.

Earlier the former Governor of the Reserve Bank Savenaca Siwatibau had stated that the economy was incapable of absorbing those who leave the school system.

Unemployment in Fiji has reached the highest levels since May last year. It is estimated that two thirds of school leavers are unable to find jobs. The unemployment rate is estimated to be over 30%.

Poverty in the country has also been rising. A major cause of poverty is the low wages from the work which people get. A USP estimate has put the poverty rate at 50% of the population.

Many businessmen had used the depression after 19 May to reduce wages for their workers by as much as 50%.