The Construction, Energy and Timber Workers Union of Fiji (CETWUF) has urgently called on the Fijian Government to intervene in a critical situation at Fletcher Higgins Fiji, which recently announced the redundancy of 175 employees. This decision has raised alarms as it poses a direct threat to local investments managed through the Fiji National Provident Fund (FNPF) and Fijian Holdings Limited (FHL).
Fletcher Higgins, which employs a total of 580 workers, informed CETWUF of its decision to issue redundancy notices after retracting from a maintenance tender with the Fiji Roads Authority (FRA). Salesh Naidu, General Secretary of CETWUF, expressed that the layoffs have sent shockwaves through the sector, emphasizing that the consequences are far-reaching and extend beyond merely job losses.
“This is not just a foreign company downsizing; this is a Fijian-owned enterprise facing collapse,” Naidu stated. He highlighted that Fletcher Higgins is 50% locally owned, meaning every job lost and financial downturn impacts the savings and investments of ordinary Fijians. The company has been operating on a precarious month-to-month basis for its FRA contract for the past nine months without a long-term pricing agreement. Payment delays that extend up to 80 days against the 30-day contractual terms have made operations increasingly unsustainable.
Naidu remarked that the firm has suffered losses for two consecutive years due to a significant decrease in the scope and financial value of the work assigned under the FRA maintenance agreement. If the situation remains unresolved, the risk is not only the loss of 580 jobs but a significant devaluation of Fijian investments as well.
CETWUF is calling on the government to urge the FRA to engage in productive discussions with Fletcher Higgins to find a viable solution. Naidu reinforced the union’s commitment to supporting local contractors but cautioned against undermining established high-quality Fijian operators and the employment opportunities they provide.
This unfolding crisis underscores the importance of swift government action to preserve jobs and safeguard Fijian investments, particularly against the backdrop of ongoing discussions surrounding labor rights and working conditions in the construction sector. The collaboration between the union, government, and local businesses will be essential in navigating this precarious situation and ensuring the stability of jobs and economic health in the region.