An ill-timed move by government to enact an Employment Relations Bill 2013 will cripple businesses with extra costs and reduce employment, according to the Tonga Chamber of Commerce and Industry Inc., who this week are facing a growing confrontation with Tonga's Minister of Labour, the International Labour Organisation (ILO) and hardliners in Tonga's Public Service Association.

The TCCI argues that in the current weak state of the economy businesses cannot afford to meet the large new costs that would be imposed.

An Employment Relations Act will force businesses to increase their salaries allocation, and will either reduce their capital investments or lay-off employees.

In the present "dire circumstances of the economy… the timing of this bill and its proposed measures can cripple businesses," the TCCI said in a strongly-worded statement.

"We are all in favour of equal rights and fair treatment for employees. We do not believe there is a one law prescription that addresses this across the board and certainly not the way it is proposed in this Bill," stated the TCCI.

They disagreed with aspects of the proposed legislation and pointed out that the bill is burdened with the two issues of crippling costs and trade unionism.

Although the framework for employee protection is a right, "the Bill should be simplified to deal with employee relations and not trade union issues," the TCCI stated.

Government

But Tonga's Minister for Commerce, Tourism and Labour, Hon. Dr Viliami Latu, in a statement on May 6 said he is determined to introduce the bill this year.

For two weeks since April 22, the Ministry of Commerce, Tourism and Labour has been calling for public submissions and comments on the draft Bill, and today Wednesday May 8 it is holding a public consultation meeting on the Bill, at the Tungi Colonnade conference room.

Dr Latu's statement emphasized the determination of government to enact the Employment Relations Bill in 2013 "to provide the fundamental principles of a fair labour market, rights at work and due process and protection for employment relations."

He  pointed that government had made failed attempts in 1982, 1993, 2002 and 2005 to enact such a Bill. "Therefore government is so determined to avoid further delays."

The Bill with 22 parts covers areas including Contracts of Service, Termination of Employment, Payment and Protection of Wages, Minimum Wages, Holidays and Leave, Hours of Work, Employment of Children, Equal Remuneration for males and females, Registration of Trade Unions, Collective Bargaining, Employment Disputes, Offences and Penalties, and Strikes and Lockouts.

The bill dictates the length of annual paid holidays for employees (20 days) and the various categories of paid employee leave, including sick leave (10 days), bereavement leave (3 days) and maternity leave (30 days) that total-up to 12.6 weeks or one quarter of the working year.

The bill limits ordinary and overtime working hours to 48 hours per week, and therefore does not allow owners who are self-employed in their own small businesses to legally work for longer hours.

Dr Latu's statement said that the bill "is designed to maintain harmonious working relationship between employers, employees and government."

PSA

Meanwhile, the Tonga Public Service Association acknowledged the TCCI's strong objections to the Bill. In a generalized statement the PSA Secretary General rebuked business owners, calling them "greedy investors" and claiming "…they drive Pajeros, dress well, eat good food, party long and hard," and urged them to invest in the minimum labour standards.

The two days public consultation organised by the Ministry of Commerce, Tourism and Labour, which concludes tomorrow, is expected to hear recommendations from the various interested parties.