10.6092/issn.1561-8048/10798
The COVID-19 outbreak is not enormous in the Pacific due to geographical isolation and early restriction measures undertaken by the governments. However, the economic costs of these restrictions are high, especially in countries, whose economies are largely driven by tourism. The support measures to address the negative effect of the interruption of business operations on employment in Fiji are based on the budget revision and access to Fiji National Provident Fund accounts.
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Elena Gerasimova
Italian Labour Law e-Journal
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COVID-19 and Labour Law: Pacific Island Countries and Fiji
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National Reports
2020-04-15
2020-04-14
2020-04-15
2020-09-15
ILLeJ
Elena Gerasimova
2020/04/15
10.6092/issn.1561-8048/10798
International Labour Organisation
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COVID-19 and Labour Law: Pacific Island Countries and Fiji
https://illej.unibo.it/article/download/10798/10705
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COVID-19 and Labour Law: Pacific Island Countries and Fiji                        Italian Labour Law e-Journal
Elena Gerasimova                                                                 Special Issue 1, Vol. 13 (2020)
gerasimovae@ilo.org                                                Covid-19 and Labour Law. A Global Review
                                                                                               ISSN 1561-8048
                                                                https://doi.org/10.6092/issn.1561-8048/10798




     COVID-19 and Labour Law: Pacific Island Countries
                       and Fiji
                  Elena Gerasimova *

                                                     Abstract
     The COVID-19 outbreak is not enormous in the Pacific due to geographical isolation and
     early restriction measures undertaken by the governments. However, the economic costs of
     these restrictions are high, especially in countries, whose economies are largely driven by
     tourism. The support measures to address the negative effect of the interruption of business
     operations on employment in Fiji are based on the budget revision and access to Fiji National
     Provident Fund accounts.

     Keywords: Covid-19; Labour Law; Furlough; Sick leave.




     Due to geographical remoteness and isolation, the COVID-19 outbreak is not
 enormous in the Pacific Island region. There are over 220 confirmed cases and six deaths
 as of 10 April; sixteen case are confirmed in Fiji and two cases in Papua New Guinea. All
 other cases have been recorded in Hawaii, Guam, French Polynesia and New Caledonia, all
 of which are territories of larger, more-developed nations.
     This is the result of the major restriction being undertaken in the region within last few
 months. Governments have quickly reacted by banning international visitors and closing
 national boarders, thus turning the small size and isolation of countries into a strength.
 Samoa, Solomon Islands, Papua New Guinea, Tonga, Vanuatu and Tuvalu have all
 declared states of emergency, and during last few weeks the decisions to have the state of
 public emergency in force were prolonged for some more months. Some countries, like
 Fiji, also introduced curfew and closed biggest cities (Lautoka, Suva). Some countries
 suspend also domestic flights and transport communications, including between islands.
     With limited national healthcare capacity, governments of these small island states are
 trying to prevent even a single case of COVID-19. All these early actions hopefully will
 help shield some of the most vulnerable countries from the pandemic.
     However, such restrictions come with a high economic cost. The worst affected are
 countries like the Cook Islands, Fiji, Palau, Samoa, and Vanuatu, whose economies are

 *
  ILO Office for PICs, Decent Work and International Labour Standards Specialist. The views expressed are
 solely those of the author and do not necessarily reflect the views of the ILO.
 Elena Gerasimova                                                      Italian Labour Law e-Journal
                                                                      Special Issue 1, Vol. 13 (2020)
                                                         Covid-19 and Labour Law. A Global Review
                                                                           Section: National Reports




largely driven by tourism. In some economies in the PIC, tourism accounts for
approximately 70 percent of GDP and employs a significant proportion of the population.
Some PICs are also seriously dependent on seasonal work, mainly in Australia and New
Zealand, which is already impacted by COVID-19 response measures.
    In Fiji, to respond the spread of COVID-19, numerous restrictions were adopted, with
a number of support measures to address the negative effect of the interruption of business
operations on employment.
    On 26 March, Fiji's government has unveiled a $US 400 million (FJD 1 billion) response
budget together with Fiji National Provident Fund (FNPF); most part of the funds are
allocated to support workers and businesses. A week before, on 20 March, the Minister for
Employment, Productivity and Industrial Relations called for informal tripartite meeting to
discuss COVID-19 implications and response. Social partners supported lockdown and
discussed possible support measures for employees and businesses.
    According to the Fiji Response budget, from 6 April, workers in the hospitality sector
who had lost their jobs or work on reduced hours would get up to $US 435 from their
FNPF accounts; if they did not have the funds in their account, the government would
subsidise the difference. Similar measures have been introduced for all workers in Lautoka
area, the first city in lockdown since 19 March, where workers could access $US 217 from
FNPF.
    The Government requested affected employers continue paying salaries as normal and
the government would reimburse them, with these measures of support aimed first of all at
workers earning less than $US 13,000 per year. Government also took a responsibility to
pay 21 days' sick leave to workers tested positive to the coronavirus, earning less than $US
13,000.
    Government committed to reduce contributions both FNPF employee and employer to
the FNPF from 1 April to 31 December 2020 from ten to five percent.
    Later, the Government also decided that fijians, who were not directly funded through
the Employment Benefit Scheme, but who would have been FNPF members some time
back and now have their own businesses, could take out their own funds from the FNPF.
    Among other employment-related decisions, the Prime minister, members of the
Cabinet and members of the Parliament received a 20 percent pay cut, but civil servants,
including those working in state-owned enterprises and companies, did not have any pay
cuts.
    The Reserve Bank (RBF) will make $US26m worth of loans to banks at an interest rate
of one percent; the banks could then offer loans to small and medium businesses and
customers at a maximum of five percent.
    A few vulnerable groups of employees were specifically targeted to receive support
measures. Workers in hospitality sectors, such as chiefs, scuba guides, wait staff,
receptionists and all other workers who lost their jobs or have had their hours cut since 1
February 2020, could access initial FJD1000 from their FNPF accounts with additional
funds to be considered further.
    To support farmers growing sugar cane, FJD50 million dollars were allocated from the
budget to the Fiji Sugar Corporation (FSC) to fund delivery payments.

https://doi.org/10.6092/issn.1561-8048/10798                                                        2
 Elena Gerasimova                                                     Italian Labour Law e-Journal
                                                                     Special Issue 1, Vol. 13 (2020)
                                                        Covid-19 and Labour Law. A Global Review
                                                                          Section: National Reports




   The Response Budget includes providing Doctors and nurses with the tools they need
to combat the virus and keep the country safe.
   A number of Health and Safety measures were introduced in Fiji, aimed at preventing
the risk of infection. Soon after the announcement of Fiji’s two first confirmed case of
COVID-19 on 19 March, Lautoka, Fiji’s second-largest city, where cases were registered,
was placed under lockdown. Next day all schools in Fiji went on early school holidays;
social distancing of two meters and working from home were encouraged where possible;
the ban on gatherings of 20 people or more was announced. This included request to close
cinemas, gyms, fitness centers, nightclubs, etc. Restaurants were requested to cut their
seating below 20 with two meters between tables, and focus on take-away and delivery, etc.
   At the same time, all those employees affected by nationwide physical distancing
requirements, who worked at gyms, fitness centers, swimming pools and nightclubs, and
also employees from the area Lautoka area, placed on leave without pay or had their hours
cut, received an opportunity to access an initial FJD 500 from their FNPF accounts.
   Finally, by the Government’s decision of 26 March, workers in the informal sector,
confirmed to have contracted COVID-19, were granted an opportunity to be paid a one-
off sum of FJD 1000. For those affected in the informal sector in the lockdown areas,
Government took an obligation to provide one relief payment of FJD 150 for all those
who have a street trader or hawker license.




Copyright © 2020 Elena Gerasimova. This article is released under a Creative Commons
Attribution 4.0 International License




https://doi.org/10.6092/issn.1561-8048/10798                                                       3
