Fiji's garment exports have halved in the last decade. Photo: 123rf
The increase in garment workers' wages is among the reasons the garment industry is in decline in Fiji, the country's textile, clothing, and footwear council head Inbamalar Wanarajan says.
She said exports from the garment sector have also halved in the last decade as it struggles "to remain competitive", according to local media reports.
Wanarajan said that, with the increase in the national minimum wage by 50 cents an hour (from FJ$4.50 to FJ$5) from 1 April, it would put further strain on businesses and have "significant implications" for the industry.
"Fiji's garment exports in 2015 were valued at FJ$110.2 million. But by 2020, this figure fell to FJ$71.6m and then to FJ$54.5m in 2024," she was quoted as saying by the Fiji Sun newspaper.
"This steady decline indicates the industry's struggle to remain competitive in the global market, primarily due to increasing operational costs, a shortage of skilled labour, and inadequate training opportunities."
Wanarajan pointed out that garment factory closures in recent months, which "left over 200 workers jobless", are also a tell-tale sign the rapid decline of the sector.
She said increasing labour costs would make it difficult for manufacturers to remain financially sustainable.
"The competitive edge that countries with lower labour costs have becomes more pronounced, putting pressure on businesses to adjust pricing or look for ways to reduce production costs, which could affect quality or working conditions," she was quoted as saying by The Fiji Times.
"That's an unfortunate reality for many employers when faced with rising labour costs and stagnant productivity," she said.
The Fiji garment sector employed an estimated 20,000 workers during its peak. However, Wanarajan said that number has fallen to around 4000 today.
In January 2024, she told The Fiji Times that the government needed "to support policy changes in the area of duty relief and retention of our skilled workers rather than assisting their migration via the PALM (Pacific Labour Mobility) scheme."
She called for "importing skilled labour from other countries" and a "speedy immigration process" to replace workers who leave the country for greener pastures.
"It might take a very long time to bring the industry to previous levels," she said.
