Page 29 - IB February 2025

Garment Industry

FIJI'S GARMENT INDUSTRY AT

(ANOTHER) CROSSROADS

Look at the label on your climate, and economic
clothing, and chances are uncertainty.
it will tell you it is made in “Fiji needs investment,
China, India, Bangladesh, but investors need a
or Vietnam. If it is Pacific government that treats
wear, the tag may read Fiji them with respect and
or one of her neighbours. fairness while ensuring
Fiji once had a thriving a stable and predictable
garment industry, with business environment,” she
more than 20,000 said.
employees in 2000. Some manufacturers
It is now less than a are also concerned about
quarter of that, with proposed changes to Fiji’s
Textile, Clothing, and labour laws, and the short
Footwear Council (TCF) time given for review and
President Inbamalar consultation on those laws.
Wanarajan saying since the COVID pandemic, jobs in the The Fiji-Australia Business Council (FABC) says it is “troubled
sector have dropped from 7000 to 4000. More than 70% of by the consequences that these ill-considered changes
these workers are women. potentially present.
The most recent Fiji Bureau of Statistics’ International “The proposed amendments include substantial fines
Merchandise Trade Statistics (November 2024) notes a decline and penalties [up to FJ$100,000 for individuals and up to
in the value of garments to Australia and New Zealand. FJ$1,000,000 for companies] for what would be the result of
The sector has contracted since the discontinuation of ordinary employee-employer negotiations,” the FABC stated.
certain trade agreements and incentives. Manufacturers also “Additionally, companies could face liability for harassment
point to increased duty on raw materials (now reversed) committed by individuals if they fail to take reasonable steps
and labour shortages—partially driven by labour mobility to prevent harassment.”
schemes—as challenges. Fiji Employers Federation CEO, Edward Bernard, believes
Recently, one company, Performance Flotation the “goal should be to modernise labour laws in a way that
Developments, stated its intention to relocate from Fiji to transforms our workforce, strengthens businesses, and drives
Jiangsu in China due to the rising cost of doing business, economic growth.”
particularly freight rates and labour costs. He believes the proposed amendments fail to address
It will see some 120 people out of work. low labour productivity, address the skills crisis, or foster
The relocation of the South Pacific’s largest lifejacket flexibility and innovation.
manufacturer follows the closure of two other factories late Textile, Clothing, and Footwear Council (TCF) Vice
last year, Vonu Apparel and Nagsun Apparel, which were both President, Ranjit Lal recently wrote that labour productivity
based in Fiji’s western division. More than 100 workers lost is problematic, and that high worker absenteeism “remains a
their jobs as a result. persistent challenge, disrupting production lines and forcing
Speaking broadly about Fiji’s private sector at a business factories to maintain a costly buffer of extra employees.”
briefing this month, Deputy Prime Minister and Minister for He also notes shortcomings in training, saying funds
Finance, Professor Biman Prasad said industries should no previously allocated to training have been “redirected to
longer avoid competition through high import duties and compensation, removing a crucial incentive to workplace
restrictions. development.”
“We cannot continue with business as usual as we’ve done The company he manages, Danam, has put on hold its
in the last 40 years. Some sectors have been protected for expansion plans due to “prevailing market conditions” and is
many, many years, and we still continue to protect them.” now looking to other manufacturing hubs.
Prasad had earlier suggested criticism by the CEO of For now, the garment industry is just hanging on. It has
Performance Flotation Developments was politically pivoted to smaller-run, faster turnaround times and higher-
motivated. However Opposition MP Premila Kumar has said quality manufacturing. But its leaders are calling for more
the government should address the underlying reasons for consultation with government on how it can withstand rising
garment factory closures: rising costs, an unfriendly business labour costs and sustained international competition.

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