Fiji Labour Productivity Report 1999-2006 Analysis

F i j i L a b o u r P r o d u c t i v i t y R e p o r t 1 9 9 9 - 2 0 0 6
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Director General’s Statement
The Training and Productivity Authority of Fiji (TPAF) is pleased to present Fiji’s first Labour Productivity Report of 2008,
which analyses productivity performance at both national and sectoral level.
Productivity Measurement has been one of the key concerns of the National Productivity Organization (NPO) of Fiji. The
concept of Productivity Measurement emanated from the tripartite Round Table Conference (RTC) in 1995. The major
outcome of the RTC was a Productivity Charter for Fiji and it stipulates the strategies to improve productivity at various
levels leading to a better quality of life for our people. The Training & Productivity Authority of Fiji, in its role as the NPO
for Fiji is charged with the responsibilities of implementing the initiatives in the Charter.
In view of the importance of measuring productivity in Fiji, TPAF would in its capacity persist on the enhancement of
quality and productivity by offering many training programs, consultations and workshops that would assist in the growth
of efficiency throughout the economy.
I would like to thank the Reserve Bank of Fiji, Fiji Islands Bureau of Statistics, Ministry of Finance and National Planning,
University of the South Pacific and above all, the Malaysian Productivity Corporation (MPC) in assisting us in the
compilation of this report.
Mr. Jone Usamate
Director General
Training & Productivity Authority of Fiji

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Contents
Director General’s Statement i
Acknowledgement iv
Executive Summary v
About Training & Productivity Authority of Fiji vi
Author’s Concern vii
Methodology viii
Chapter 1
1.1 Introduction 1
Chapter 2
2.1 Introduction 5
2.2 GDP & National Labour Productivity Growth 6
2.3 Ways to Improve Labour Productivity in Fiji
a) Accepting Changes & Improving Quality of Labour 8
b) Building Competitive Strengths 9
c) Be Response to Environment 10
d) Look Beyond Profit 10
e) Improving Research and Development 10
f) Embracing Organizational Innovation 10
g) Eradicating the effects of Brain Drain 11
Chapter 3
Quality Circles
3.1 Introduction 13
3.2 5S (Housekeeping) and Productivity 14
3.3 Kaizen 15
3.4 Value Added 16
Value Added Calculation Worksheet 17-18

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Chapter 4
Economic Sector Labour Productivity
4.1 Agriculture, Forestry, Fishing and Subsistence Sector 19
4.2 Mining & Quarrying Sector 21
4.3 Manufacturing Sector 23
4.4 Electricity, Gas & Water Sector 26
Chapter 5
Business Sector Labour Productivity
5.1 Wholesale & Retail Trade, Hotels & Restaurants Sector 28
5.2 Transport & Communications Sector 30
5.3 Finance, Insurance, Real Estate & Business Services Sector 32
a) Technology Improvement 33
b) Customer Satisfaction 33
5.4 Building & Construction Sector 34
5.5 Community, Social and Personal Services Sector 36
a) Efficiency Indicators 38
b) Effectiveness Indicators 38
Chapter 6
Service Sector Labour Productivity
6.1 Introduction 41
6.2 Share in Real Gross Domestic Product 41
6.3 Overview of the Service Sector Labour Productivity Growth 42
6.4 Ways to improve Services in Fiji 42
Chapter 7
Summary and Conclusion 44
Bibliography 47
Appendix 49-58

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Acknowledgement
The Training & Productivity Authority of Fiji would like to thank the following professionals, without whose assistance this
report would not have been completed.
Dr. Mahendra Reddy Former Associate Professor of Economics
University of the South Pacific
Suva
Fiji
Ms. Hjh Nor Aini bt Hj Ab Talib Manager
Malaysia Productivity Corporation
No 23-03 KT Business Centre
Malaysia
Mrs. Zulaifah Binti Omar Industry Research - Domestic Unit
Malaysia Productivity Corporation
Malaysia
Mr. Ronald Bali Former Acting Statistician
Establishment Survey
Fiji Islands Bureau of Statistics
Fiji
Ms. Nilima U Lal Divisional Manager
Economic Statistics Division
Fiji Islands Bureau of Statistics
Fiji
Mr. Ariel Mar Former Senior Economist
Prices & Wages, Economics Group
Reserve Bank of Fiji
Fiji
Mr. Ariff Ali Senior Economist
Price & Wages Unit
Reserve Bank of Fiji
Fiji

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Executive Summary
The productivity movement is a nationally-concerted effort of many public and private stakeholders to attain economic and
social progress through productivity improvement and involves active participation of business, industry, workers,
government, academia, community groups and other interested parties. It is through productivity movement that a nation’s
quality and competitiveness improves.
In 2006, Fiji’s national labour productivity growth was 2.1 per cent and Real GDP growth was 3.6 per cent. On an average
of 7 years (2000-2006) labour productivity growth averaged at about a low of 0.05 per cent. This low productivity growth
is attributed to factors such as lack of skills, low innovation and investment, which is predominant in our economic system
and quick action has to be channeled to improve Fiji’s labour productivity. The highest Real GDP growth of 5.4 per cent
was evident in 2004, while labour productivity growth for the same year was at 1.4 per cent. The pattern of a positive Real
GDP growth is also evident throughout the report period. One of the vital points to note is that in the year 2000, both
national and sectoral growth of labour productivity was negative arising from a number of factors including political
instability.
The Agricultural, Forestry and Fisheries sector recorded a productivity growth of negative 0.6 per cent in 2006 while having
an estimated labour productivity of FJD $11,791 per worker. The performance was linked to major factors which may be
beyond productivity improvement initiatives such as natural disasters and expiring land tenure. However, to increase
productivity sound agricultural practice and adoption of labour saving technology can be pursued. The government should
provide grants and assistance to the farmers in terms of strategic guidance for better farming technology.
The Electricity, Gas and Water sector recorded a positive labour productivity growth for the years 2001, 2002 and 2004.
However, for the year 2006, a negative growth of 0.12 per cent was recorded. The Manufacturing sector recorded a
productivity of FJD $7,343 and had a growth of nearly 3 per cent in 2006 while the total employment growth was 5 per
cent. The positive performance can be attributed to favorable internal environment and sustained domestic demand. On
the other hand to sustain this growth, the Manufacturing sector constantly needs to invest in labour development and
improvement of the production process.
In 2006, the Service sector which is at the forefront of the economic growth recorded a growth of its Value Added by 5
per cent and had a total share per Real GDP of nearly 64 per cent. This data also reflects that the Service sector can
contribute significantly in improving the status of the country. The labour productivity growth was 1.32 per cent and the
labour productivity stood at FJD $8,261. To enhance competitiveness in this sector, continuous improvement in productivity
initiatives needs to done such as implementation of Total Quality Management techniques so that the organizations are
more strategically involved in reaching greater heights.

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Training & Productivity Authority of Fiji
The Training & Productivity Authority of Fiji (TPAF) is the National Organization for Technical and Vocational Training and
the National Organization for the promotion of the concept of productivity as a viable economic strategy.
Our Vision
• The Centre of Excellence in Training & Productivity.
Our Mission
• Raise Productivity by Encouraging Organizational Performance and Managing Training Standards.
Our Values
• Customer First and Foremost;
• Information Sharing and Communication;
• Teamwork;
• Job Satisfaction; and
• Empowerment.
Our Goals
• Provide and arrange relevant training to assist economic growth and employment;
• Provide advice on and disseminate information on training and manpower needs;
• Provide consultancy services;
• Provide a framework and system for excellence and national awards;
• Promote and facilitate productivity;
• To manage skill development and certification schemes;
• Set up and implement the NQF for technical and vocational training; and
• Provide a range of incentives to encourage training.

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Author’s Concern
All data and tables used in compiling this report is based on estimates and forecasts from the Fiji Island Bureau of
Statistics, Key Statistics of 2007 (June). Data of Real GDP and Total Employment for recent years maybe revised and
precaution has to be taken into account for crude decision making purposes.

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Total Output
Total Input
Real GDP ($)
Total Employment (Formal + Informal)
Methodology
Productivity is measured as a relationship between physical output and physical input. At a country level, the best measure
of output is defined as the Real Gross Domestic Product, while physical input as Total Employment. There are various ways
of measuring productivity such as use of effective and efficiency indicators or certain software, which assists
organizations/countries to measure their performance. Productivity can be measured partially, multifactor/total factor and
as total productivity. Since this report is based on partial productivity (Real GDP/Total employment) the data derived will
only focus on labour productivity and growth.
Productivity is usually expressed in ratios of inputs to outputs as follows:
Productivity =
National Level Labour Productivity
Labour Productivity =
Time series data will be used to examine the time trend in labour productivity. Labour productivity depicts the contribution
of each employee to the Gross Domestic Product. National economic figures are usually expressed as “nominal” and
“real”. Nominal GDP is the value of output expressed in current prices, whereas the Real GDP is the value of output
expressed in prices that have prevailed in some agreed-upon year. For instance, the Real GDP figure of 2006 is
based/weighted on the 1995 prices. Real GDP figures are a better measure since it takes into account inflation.
Total Employment
It is the physical number of all types of employees including workers, partners, working directors and part-time workers
(part-time workers should be converted to their full-time equivalent). Labour Cost refers to wages and salaries (including
commission, bonus and benefits), remuneration paid to working directors and partnership paid by employers.
In compiling this report, the difficulty lay in the lack of consistent data for Total Labour Force and Informal sector
employment. According to the Fiji Islands Bureau of Statistics, Key Statistics of June 2007, labour force data was only

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available for paid workers for years 1999, 2000 and 2003 and the Total Labour Force (formal plus informal) was only
available for 2003 and 2005. Due to the lack of data of informal workers for the Economic sectors, productivity estimation
had to be made for period 2001, 2002, 2004 and 2006. In order to calculate the total number of informal workers per sector,
the per cent share of the Economic sector per Real GDP was calculated which was then multiplied by the Total Informal
Employment of a particular year. (Please refer to Table 1.E in Appendix)
Working for National Labour Productivity
Computed from: Key Statistics, June 2007 Pg N0 (15, 76). Fiji Islands Bureau of Statistics.
Sectoral Labour Productivity
Sectoral Labour Productivity =
Due to the large number of sectors, only the Electricity, Gas & Water sectors calculation of productivity and growth is
demonstrated below. The same formula was used for other economic sectors. (Please refer to Page 57 in the Appendix)
Working for Sectoral Labour Productivity
Sectoral Share of Real GDP ($)
Total Sector Employment (Formal + Informal)
Year Real GDP(million) Total Employment Labour Productivity LP Growth
1999 2682.3 301,018 8,911 -
2000 2637.9 309,483 8,524 -4.3
2001 2690.4 311,556(e) 8,635 1.3
2002 2777.3 315,908(e) 8,791 1.8
2003 2806.7 321,538 8,729 -0.7
2004 2959.4 334,370(e) 8,851 1.4
2005 2979.9 340,624 8,748 -1.2
2006 3087.5 345,596(e) 8,934 2.1
Year Real GDP(000) Total Employment (e) Labour Productivity LP Growth
1999 95,444 9456 10094 -
2000 93,980 9635 9754 -3.36
2001 100,150 9944 10071 3.25
2002 104,429 10330 10109 0.37
2003 108,696 10902 9971 -1.37
2004 112,905 11113 10160 1.90
2005 114,385 11521 9928 -2.28
2006 120,463 12148 9916 -0.12

8524 -1
8911
2*
LevelLevel year (n+1) -1
Level year1
n*
x
Productivity Growth
The average annual growth rate ( Compound Growth) has been used to calculate the productivity growth. The compound
growth rate measures the rate at which data grows over period of years and is quite a steady measure.
*100 % where ‘n’ denotes the number of years
An example to calculate the national labour productivity growth for the years 1999 and 2000 has been illustrated below.
Year 2000 (Labour Productivity)
*100 % = - 4.3 per cent
Year 1999 (Labour Productivity)
It is hard to make necessary fiscal and monetary decision without satisfactory productivity growth. If productivity growth
is low, any substantial increase in expenditure for public purposes is likely to be cut from the worker’s real income. The
result of improved productivity growth rate is a higher foreign exchange reserve which assists a nation to buy the needed
resources as long as it can compensate for price differentials with higher Value Added generated from the employed
factors of production.
Mr. Ritesh C Gosai
Quality Services Officer-Productivity Measurement
Productivity Promotion Department

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1.1 Introduction
Global economic policy changes towards a more free market open economy requires firms to be more efficient and
productive. Additional sources of growth can also be harnessed from technological change. The open economy approach
towards growth is pegged to the neoclassical growth theory, which is based on the tenants of free factor and product
market. It also requires liberalization of trade and financial market.
Fiji’s economic policy discourses over the last two decades have also been centered on low growth and productivity. Growth
rates have been marginal as well as below its potential of 6 per cent to 7 per cent in real terms. This is despite a number of
reforms undertaken, particularly with respect to privatization, liberalization and financial deregulation since the mid 1980’s.
The latest trade and growth figures again reveal that Fiji’s economy continues to struggle (Figure 1 and Table 1).
An examination of the trend in exports and imports reveal that while both seem to be rising, since 2003 exports have
flattened, whereas imports are rising steadily. This implies that our trade deficit is widening. If this trend continues, then
it will have serious consequences on our balance of payments. At the moment receipts and remittances from Tourism are
propping up Fiji’s foreign reserves, but this is not sustainable in the longer term.
Chapter 1
Source: Key Statistics, June 2007 Pg No (57). Fiji Islands Bureau of Statistics.
Table 1 : GDP Growth for Fiji, 2001-2008
Source: Reserve Bank of Fiji, Quarterly Report, March, 2008.
Year GDP Growth Rate (%)
2001 2.0
2002 3.2
2003 1.1
2004 5.4
2005 0.7
2006 3.6
2007(e) -4.4
2008(f) 1.7

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Fiji’s position in relation to other emerging markets has not been promising. The emerging markets and developing
countries growth rate over the last two decades has been around 5 per cent (refer to Table 2 below). Developing Asia had
a growth rate of 7.6 per cent. During the same period, Fiji had a growth rate of 3 per cent, which is well below these two
time frames. Most of the other comparator countries seem to be improving over time while Fiji’s economic growth
performance is on a decline. Another interesting feature of Fiji’s growth performance is that it is quite volatile. As
measured by variance, the growth variance for Fiji stands out, though it improved over the two decades. Volatility of
growth rates can have serious consequences on state resources and policy making.
The low and volatile growth was contributed by (a) declining supply of primary products, (b) dampening of export demand,
(c) falling remittances and (d) rising prices in source countries. The causes of low growth of Fiji’s economy are linked to
the status of both the external and domestic market conditions. Amongst domestic factors, Fiji has issues of (a) expiring
land leases, (b) falling investors confidence, (c) bad governance practices, (d) political instability, (e) discontinuity and
frequent changes in governments and (f) law, order and security. All these factors also have direct and indirect impact on
productivity.
While the importance of raising efficiency and productivity has been in the public arena for long, it was not until the last
two decades that the Public sector started to provide funding on raising its awareness as well as develop capacity
Source: World Bank Database.
Country
Group/Country
Name 1987-96 1997-06 1987-06
Average Average Average
Growth Growth Growth
Rate (%) Rate (%) Rate (%)
World 3.33 0.92 4.06 1.08 3.70 1.09
Developing Asia 7.91 2.63 7.35 2.84 7.63 2.68
Australia 3.24 3.65 3.54 0.81 3.39 2.14
Barbados 0.57 12.48 2.38 5.56 1.48 9.41
Fiji 3.67 31.07 2.24 10.64 2.96 20.30
Kiribati 1.64 76.92 4.44 24.14 3.04 49.93
Mauritius 6.72 11.66 4.49 4.15 5.61 8.79
New Zealand 2.03 6.77 3.03 2.46 2.53 4.63
Papua New Guinea 5.19 51.08 0.84 10.56 3.02 34.18
Samoa 2.65 19.59 3.18 4.06 2.92 11.27
Solomon Islands 5.79 14.23 0.05 51.18 2.92 39.66
Tonga 1.25 10.70 2.18 4.93 1.72 7.63
Vanuatu 3.6 13.80 1.99 22.30 2.80 17.78
Other emerging
market and
developing countries 3.91 1.43 5.78 2.93 4.85 2.98
Variance Variance Variance
Table 2 : GDP Growth Rates of Selected Countries/Region, 2001-2008

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amongst Private and Public sector organizations. Government officials, human resources managers, researchers,
businesses, industries, community groups and trade unions all want to have a share of productivity but encounter difficulty
in improving and maintaining it. How productivity is related to quality and competitiveness is another question. To provide
a definite answer for these questions, the need to measure productivity is important. The measurement of productivity,
therefore “goes to the heart of the assessment of economic performance” (Kravis, 1976).
Before continuing, it may be opportune to define productivity. Many people have varying definitions of productivity. For
example, a factory manager would say that productivity is the amount of bottles produced using x number of labour and
y number of hours, while a teacher would say a high rate of students passing an exam is productivity. At a higher level,
productivity could be defined as the efficient and effective use of scare resources to produce an output, at the same time
satisfying our needs and wants. Productivity could also be defined as a measure relating to a quantity or quality of output
to the inputs required to produce. It could also be perceived as increasing Value Added while using less time. Qualitatively,
productivity can be defined as working smarter than harder to achieve a certain output.
Management guru Peter Drucker once declared, “Without productivity objectives, a business does not have direction.
Without productivity measurement, a business does not have control” (2007, Pg No (28)). In simple terms productivity
measurement helps organizations to set targets to reach their destination, identify potential obstacles and inspire others
to reach their objectives.
Having defined productivity, let us focus on the various reasons to measure productivity. According to Malaysian
Productivity Corporation, these include the following:
• Productivity measurement assists organizations to monitor what position the business is in the market when compared
with competitors;
• Measurement is an essential part of the analysis control, evaluation and management process. Organization must
measure productivity to improve it;
• It provides a databank for goal setting as well as monitoring the company performance;
• Through productivity measurement, departmental targets are better illustrated, thus, the chances for improvement
becomes easier;
• It helps reveal problems or opportunity areas that would otherwise be overlooked;
• Measurement systems help to maintain organizational focus and communicate management interest and concern
about productivity;
• Productivity measurement provides method for feedback so that an organization can learn and improve and
employees can enjoy a sense of achievement. It also helps to nurture good habits in motivating all human resources
within the organization; and

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• Assists in the process of integrating productivity into the other organizational systems such as financial reporting,
budgeting and planning, so that quantifiable goals can be set, along with their impact on costs and profit.
This report looks at productivity from a labour market perspective and provides data at national and sectoral level for the
years 1999-2006. By examining productivity and growth we can see how Fiji performed within the 8 years and how the
data will be used for appropriate targets and goal setting. Since labor productivity growth is often equated to growth in
Real GDP per person employed, any increase in productivity will tend to increase the standard of living, thus, fulfilling the
ultimate objective of the government.
Consequently, the recipients of this productivity data and more specifically the government can identify the trends in
productivity at national level as well as in specific sectors. Armed with this information, government can then decide how
to deal with weak sectors in terms of resource allocation. It could make decisions on increasing the budget for research
and development, increasing investment to reduce the effects of brain drain and above all to be more competitive. To
employers and entrepreneurs, productivity data can lead to the upgrading of technical capability resulting in the improved
quality of products, improvement in competitive position in the market, use of different gain sharing systems, adoption of
modern human resources practice, provide training and development to promote creativity and an innovative environment.
This data can also assist employees because increased productivity would mean an increase in compensation, bonus,
merits, fringe benefit gains and increase in wages/salaries and above all better working conditions in an organization.
A group of productivity tools such as Quality Circles, House Keeping (5S), Kaizen, Value Added and
Efficiency/Effectiveness indicators have been identified which can then be used in any other Economic sector to improve
its performance. However, proper planning tools such as the PDCA cycle have to be used in order to realize the full
potential of process improvement. In the end policy recommendations have also been identified for decision makers to
take appropriate actions.

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2.1 Introduction
Productivity is one of the best criteria for enterprise competitiveness and a long-term strategy for governments, employers
and employees to enhance quality, increase economic growth, thus, alleviating poverty, promoting human rights and
economic democracy. Productivity is vital for economic and social development due to its importance as a source of
income, as an integrative objective encompassing improved labour/management cooperation and improving worker
participation.
Fiji is no exception in this journey of productivity, although it is very small both geographically and economically when
compared with other giants such as Japan, Malaysia, Australia and New Zealand. With a total land mass of 18,333 square
kilometers it lies in the heart of the Pacific Ocean midway between the Equator. The estimated population of Fiji in 2007
stood at 835, 230. In the year 2006, the Real Gross Domestic Product was FJD $3087.5 million which was anticipated to
have increased by 3.6 per cent from 2005. Although Fiji experienced a growth of 3.6 per cent in total Value Added, sectors
such as Agriculture, Forestry, Fishing & Subsistence, Mining & Quarrying and Transport & Communication, had its output
decreased.
Investment on education affairs and services by the central government in 2006 stood at a provisional FJD $192 million
while expenditure on health affairs and services stood at a provisional FJD $114.1 million. Balance of Trade in 2006 was
negative FJD$1918.3 million, where our exports had been dominated by an all time high imports of FJD$3119.9 million,
which had increased by nearly 15 per cent when compared to 2005. This clearly illustrates Fiji’s dependency on imported
products such as mineral products, manufactured products, machinery and others.
Chapter 2

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2.2 GDP and National Labour Productivity Growth
It is vital to have proper knowledge of labour productivity since this report is largely based on this concept. Questions like
what is labour productivity and what factors affect it are vital for understanding the report. Labour productivity is a
“measure of total output divided by the amount of labour that was used to produce it” (Baumol et. al. 1985). Labour
productivity is the ratio between the volume of production of goods and services to the volume of labour used. It examines
the certain output created by employees in a nation, sector or an organization. It depends on factors such as training and
education, innovation and technology, quality investment, working environment and work attitude.
A lot of reports have described labour productivity as synonymous to the definition of productivity. There is a clear
explanation for this statement – in view of the fact that human resource plays the most vital role since it is the only
resource which has the ability to think of changes and implement them (Monga, 1999). It is also generally agreed that the
quality of labour is best measured as a number of hours worked rather than number of persons employed. However, the
latter is the only readily available data and will therefore be used.
The socio – economic development of Fiji requires national awareness on productivity for eradicating the productivity gap
in terms of skills, knowledge, management and edifying a favorable environment for further improvements. To be
productive would simply mean that Fiji is able to produce good quality of goods and services, which can be competitively
traded in the international market.
Volume of Labour can be expressed
in terms of
- Number of employees
- Working Hours
- Labour Cost
Volume of production can be
expressed in terms of
- Unit of goods produced
- Total value of goods and services
- Total Sales Value

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Computed from: Key Statistics, June 2007 Pg N0 (15, 76).Fiji Islands Bureau of Statistics.
Figure 2.2 shows the trend of national labour productivity growth when compared with the growth of Real GDP. In 2006
the labour productivity of Fiji was estimated to be FJD $8,934 and had a growth of 2.1 per cent when compared to 2005.
This positive growth was attributed by a better performance of the Real GDP which recorded a growth of 3.6 per cent.
Manufacturing sector Value Added had increased to FJD $461 million and when compared to 2005, this sector recorded
a growth of nearly 8 per cent. The period between years 2001-2004 saw a better performance of Value Added due to
government efforts to reform in the Tourism and the Private sector. A positive labour productivity growth in 2004 of 1.4
per cent was the result of consistent employment and rising output. This was supported by the robust performance of the
Construction and Finance sector, both having a combined total output of FJD $480 million during 2004. According to the
graph it is obvious that political instability dampens economic growth and labour productivity. In 2000, Fiji’s labour
productivity growth was negative 4.3 per cent and Real GDP growth was negative 1.7 per cent which indicates that the
desirable target for labour productivity has not been achieved. It clearly indicates that the wealth created by each
employee is getting lower and factors such as efficiency of employees, the skills and attitudes and the level of innovation
is low.
Figure 2.3 depicts the labour productivity of Fiji for the years between 1999 and 2006 with a mean of FJD $8,765. The
highest labour productivity was reached in 2006, which was around FJD $8,934 and the lowest was FJD $8,524 in 2000.
Within the report period, labour productivity has not been high due to the fact that there is low expenditure at both micro
and macro level for research and development resulting in no major innovations or market boost. The other point to be
considered is that the effects of brain drain on the economy, especially the Service sector, which has also put immense
pressure on the existing employment figures. Between the years 1981-2001, Fiji citizens migrating overseas totaled
75,800, which was further fueled by the political instability of 1987 and 2000. Out of this, 11 per cent were in the highly
skilled workers category including doctors and medical personnel, accountants, architects, engineers and related
technicians and teachers.
(e)
(FJD)

8
2.3 Ways to Improve Labour Productivity in Fiji
a) Accepting Changes and Improving Quality of Labour
Long-lived companies are sensitive to the environment, learning and adapting continuously (De Geus, 1997). This would
mean that the companies or organizations that adapt to changes quickly have already fulfilled the prerequisite of being
productive. However, in Fiji’s case much has not changed in regards to the organizational work culture even after gaining
independence in 1970. In Fiji, the work culture is moderately laid back and the international market will only accept best
in terms of quality of goods and services, speed/accuracy in meeting demands and efficiency in approach. Any indolence
would mean that Fiji’s exportable commodities will lose out in the global market position giving competitors the chance
to take our share.
Fiji’s work culture needs a major transformation in order to match the high standards demanded by the global community.
However, it is important that participation from both management and labour is needed. The labour market needs a
complete change in the mind set in order to focus on quality and customer service. The approach of Total Quality
Management (TQM) can create customer satisfaction through improved work force. This concept is also helpful in
changing the old approach of business operation. Team work, Quality Circles, Employee Suggestion programs,
Standardization or focusing on a Quality Awards are some of the tools used in TQM. Small companies are not exempted
from this concept because the bottom line is that any company whether small, medium or large, have a goal to be
profitable and the concept of TQM achieves productivity, which in the long run helps increase profit.
Government initiatives through reforms should see the development and improvement in quality of labour force in Fiji since
more skilled and educated workers can raise the technical efficiency of a country. Since labour is the most important input,
it can be a close proxy to Total Factor Productivity and an important economic and social indicator. When referring to
improvements in labour, it is better that focus should be based on qualitative rather than quantitative improvement. This
would mean an increase output using the same labour.
Research has suggested that human capital is one of the major drivers behind explaining differences in productivity. For
example, nearly a fifth of the productivity gap between Germany and the UK is due to differences in skills and one reason
why the UK productivity has been lower than other countries is due to lack of skills (O’Mahoney & De Boer Crafts, 2002).
One misconception that organizations in Fiji have is that any reduction in labour cost is equal to productivity. This is one
of the most common misunderstandings of productivity leading to just short-term results or even an end of the company.
People, as human capital, not only incur costs but they are also value creators. Productivity, in the modern sense, is a
situation in which one creates more than one consumes. So the emphasis is on creation rather than on reducing labour

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costs. When workers are forced to work harder and longer hours without due compensation or an improvement in the
quality of life, even under the name of productivity improvement, they are exploited.
b) Building Competitive Strengths
Societies are becoming increasingly integrated into the global network of a borderless and market-oriented international
economy. In order to survive in this global environment, Fiji has to maintain and sharpen its competitiveness level. To
effectively compete in this ever-changing global market, there must be emphasis based on a high quality of goods and
services which can be readily available.
A country’s competitiveness will be based on its ability to produce quality goods and services with a low marginal and
production cost. However, in this era, competition is extreme due to factors such as the barriers to trade, capital flows,
labour migration, tight labour market, rising cost of land, scarcity of labour, over-stressed infrastructure and low
investment due to political and economic situations.
For Fiji to maintain or improve its competition level, focus should be based on increasing research and development,
improving technical and education levels, introduction of innovative strategies, product differentiation, focusing on
customer satisfaction, technology enhancement and improvement in investment initiatives.
Qualitative Ways to Increase
Labour Force
-Establishing a Corporate Plan
-Promoting Organizational Values
-Transformational Leadership
-Sound Management/Employee
relationship
-Participation in Strategy
Development
-Training and Skills
-Introduction of TQM Tools
-On-the-job
Training schemes
-Coaching
-Apprenticeship
-Bonus
-Merit
-Team work
-Loyalty
-Appreciation
-Motivation
- Socializing

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c) Be Responsive to the Environment
Big corporations with externalities should be considerate towards the environment. Externalities would refer to the waste
and pollution that are imminent and to some stage inevitable. Factors of Production are being used up and waste is being
generated with the means of creating subsistence. However, organizations must consider the implementation of sound
practices to avoid these externalities, which generate high costs in the long run. A classic example would be Fletcher
Pacific Steel (Fiji) Ltd, which adopted the Green Productivity Demonstration Project on Energy Efficiency and Greenhouse
Gas Reduction in 2005.
d) Look Beyond Profit
The general perception of companies in Fiji is that any new adoption is a waste of time and resources. Such companies
are often left behind. The misconception prevailing is that there is no need for productivity initiatives when the company
is profitable. In reality, the modern understanding of productivity is doing things right at the least possible cost in the least
possible time with the highest possible quality and to the maximum level of satisfaction of the customers and employees.
If a company is profitable, it does not guarantee that it is productive because there are many factors, such as exploitation
of labour and resources, which leads to increased profits. In the long run, productivity will help companies to achieve
higher profitability.
e) Improving Research and Development
According to the Organization of Economic Cooperation and Development (OECD), research and development refers to
creative work undertaken in a systematic basis in order to increase the stock of knowledge, including knowledge of labour
and other inputs, in order to devise new applications. Expenditure on research and development generally reflects a
government’s/organization’s commitment to improve performance through innovation. In the long run, the level of research
and development undertaken in an economy would enhance technological growth.
In Fiji, there seems to be considerable slowdown in research and development expenditure, which has resulted in low
innovation. Innovation is one of the major drivers in adding value through introduction of new and creative ideas.
f) Embracing Organizational Innovation
For companies to become innovative it should understand that innovation starts with an idea that should be supported by
a robust expenditure on research and development. The starting phase of an idea is like a small plant that is miniature,

11
immature and shapeless. Proper planning and commitment from the management will eventually make this small plant
bear fruit in the long run. To become innovative the company will have to abandon old practices that are common and
adopt a new venture, which has the potential to outlast all competitors.
An innovative organization is one that is able to:
• Maintain a continuing path for new ideas;
• Modify new ideas to fit organization needs and circumstances; and
• Implement and reinforce new ideas as part of corporate plan.
Steps which an organization should undertake to improve productivity could include the following:
• Restructuring the organization;
• Rationalizing the product/service range;
• Introducing financial incentive schemes;
• Applying technology to reduce staff;
• Redesigning products and/or process;
• Out-sourcing/sub-contracting;
• Implementing a quality improvement program;
• Conducting productivity audits; and
• Changing management information systems.
g) Eradicating the effects of Brain Drain
Brain drain refers to the emigration of trained and talented individuals to “greener pastures”, where benefits such as
higher living standards are prevalent. Fiji is also affected by the effects of brain drain. According to the Fiji Islands Bureau
of Statistics, Fiji’s emigration rate for the period 1980–2001 averaged around 8.0 per cent. Between 1980–1986,
emigration levels averaged around 2,460 a year. However, after the first military coup emigration levels nearly doubled
and after the 2000 political unrest, emigration recorded a peak of 6,300 in 2001. The total number of emigrants between
1987-2001 stood at about 75,800 and out of this, 11 per cent was in the highly skilled category. The impact of brain drain
resulted in skill shortages in our workforce. Productivity growth depends on the nativity of new ideas, that is, innovation
and invention, and the ability to turn such ideas into usable technology. Both, in turn, depend on maintaining an educated
and skilled work force. Fiji has the numbers in terms of a good pool of labour force, but lack skills. The steady outflow of
skilled emigrants from managerial, professional, technical and clerical occupations is also taking its toll on our skills base.
For example, on average 571 highly skilled workers emigrate each year from Fiji. Figure 2.4 in the next page illustrates the
trend of emigration in Fiji from 1987 to 2003.

12
The effect of the brain drain has put pressure on the labour force of Fiji and this has led to the decrease in output growth.
As highly skilled workers emigrate, the gap is filled by workers who needed to be trained and coached. This creates extra
cost for the Government and Business sector to re-train, and if workers are not trained, chances are that the labour
productivity will be low.
In summary, urgent measures must be adopted to reduce outflow of qualified and skilled workforce, while at the same
time, dampen the effect of those who do leave the shores. The country must become politically stable, improve working
conditions of the workers in general, improve provision of basic services such as health and education and improve law,
order and security. All these will be possible if the economy improves and grows at a rate of 6 per cent to 7 per cent in
real terms.
Computed from: Key Statistics, June 2007 Pg N0 (15, 76). Fiji Island Bureau of Statistics.

13
Quality Circles
3.1 Introduction
One of the core functions of the Training & Productivity Authority of Fiji (TPAF) is to promote productivity through the use
of Total Quality Management tools such as Quality Circles, Benchmarking, House Keeping (5S), Productivity Measurement,
Fiji Business Excellence Awards, Six Sigma and others. However, the need to emphasize Quality Circles and 5S is very
important since they are the starting point for any productivity improvement initiative.
Quality Circles is a way of capturing the creative and innovative power that lies within the workforce. By definition, a
Quality Circle is made up of a group of employees who meet regularly to identify the root cause of a problem, find and
record a solution, disseminate and implement it (Zetie, 2002). Quality Circles are very important for any organization since
it establishes a field of continuous improvement through a journey of quality.
Benefits and Tools of Quality Circles
Chapter 3
QC Activity
Better Service &
Product Quality
Greater job
satisfaction through
self-development &
Teamwork
Higher Personal
Welfare
Higher well-being
of company
More Sales
Productivity
More jobs
Greater
Customer
Satisfaction
Tools
Cause & Effect
Diagram
Check Sheet
Graphs
Pareto Chart
Histogram
Scatter Diagram
Control Chart

14
3.2 5S (House Keeping) and Productivity
Due to the immense productivity tools available for companies to improve productivity, the main obstacle for re-
engineering would be the starting phase. A lot of companies in Fiji would like to increase productivity, but tend to get
confused on how to actually start this journey of continuous improvement. For example, in improving productivity,
manufacturing companies should put more emphasis on rationalization of the manufacturing process, then JIT (Just-In-
Time) would be considered to be one of the effective approaches. If companies stress on rationalization of maintenance
of machines and equipment, TPM (Total Productive Maintenance) is regarded as the most advanced approach. However,
for any company to start any productivity initiative, the knowledge on 5S is required, which in turn provides a framework
for improving machinery, assets and the workplace. 5S is a process which creates productive people through motivation,
education and a corporate culture where management and employees work together.
The concept of 5S is adapted from Japan and all improvement tools start with the letter ‘S’.
Seiri Sort
Take out unnecessary
items and dispose
Seiton Systematize
Arrange necessary
items in order
Seiso Sweep Clean your workplace
Seiketsu Sanitize
Maintain high standard
of Housekeeping
Shitsuke Self-Discipline
Do things spontaneously
without being told or
ordered
Japanese English Brief Explanation

15
3.3 Kaizen
The word Kaizen is adapted from the Japanese language. Kaizen is the key to competitive success in the international
market. It is defined as ‘kai’ meaning change and ‘zen’ which means better. Thus, Kaizen means changing for the better.
Kaizen involves continuous improvement programs, which engages every employee in the company. Every individual in an
organization from top management to lower levels will participate in improvement activity in their duties. The purpose of
kaizen is to eliminate waste, improve quality and delivery of products to the customer. Focus should be based on small
improvement and break-through innovations in the workplace, which is depicted in the graph below.
Various tools used in Kaizen include:
• Method standardization and improvement cycle;
• Visual management;
• Suggestion scheme;
• Total quality control;
• Just in time production system; and
• Total productive maintenance.
Some businesses differentiate between Kaizen, Kaizen events and traditional modes of improvements. Manos (2007)
provides a summary of the differences amongst these three modes of improvement (see Table 3).
Source: Managing Enterpise Productivity and Competitiveness, Pg No (54).

16
Table 3: Kaizen
3.4 Value Added
According to the Malaysian Productivity Corporation of Malaysia (MPC) (2007), Value Added is a measure of wealth
created by business enterprise and net output of an enterprise at each stages of production. Value Added is the difference
between what a company earns from sales and what it pays for the goods and services from external sources. The concept
of Value Added brings together two aspects of a business enterprise mainly the production of wealth and its distribution.
It indicates how productivity can be increased, thereby leading to higher profits. Since the wealth was generated by the
collective effort of those who work in an organization such as employees and those who provide capital such as employers
and investors, it must therefore be distributed among them. The wealth can be distributed as remuneration to workers and
reinvestment in machinery and capital.
a) Subtraction Method
Value Added = Total Sales – (Cost of Purchase + Cost of Production)
Total Output – (Bought in materials and services)
This method is useful in assessing the efficiency of an enterprise.
Type of
Improvement
Large or small scale
improvements
Small, steady
improvements over
time
Big, fast, simple
improvements in three
to five days
Dramatic, one time,
complex,
technologically based.
Who is affected Individual or groups Team based Top-down approach
Costs Low cost Low cost High-cost usually.
Buy-in potential Good because
employee(s) came up
with the ideas.
Good because
employee(s) came up
with the ideas.
More difficult because
users weren’t asked
their opinion.
Intended benefits Can be used for any
benefit, including
quality of work life
Usually focused on
reducing time or non-
value added activities
Meant to revolutionize
Kaizen Kaizen Events Kaizen
Improvement
Source: The Benefits of Kaizen and Kaizen Events, Page No (47).

17
b) Addition Method
Value Added = Labour Cost + Interest + Taxations + Depreciation + Profit
This method shows how rewards for employees, return to investors and capital providers are linked to the success of an
enterprise.
Source: Workshop on Productivity Measurement and Analysis, Page No (16).
Subtraction Method
Sales
Bought – in materials and Services
Materials Used
Raw materials
Packing materials
Total (Materials Used)
Production Overheads
Sub-contract works
Rent
Water and Electricity
Insurance
Transport Charges
Maintenance of machinery
Hire of machinery
Supplies and store expenses
Miscellaneous
Total (Production Overheads)
Administrative and General Expenses
Rent
Water and Electricity
Telecommunications charges
Printing, stationery and office supplies
Upkeep of vehicles
Transport and carriage
Travelling Expense
Advertising
Entertainment
Professional fees
Bank Charges
General repairs
Total (Administrative and General Expenses)
Total (bought in materials and services)
Value Added
d
a
b
c
e = a + b + c
f = d - e

18
Addition Method
Profit (Loss) After Taxation
Retained earning
Dividends
Minority Interest
Total (Profit)
Labour Cost
Wages and salaries (including Directors remuneration)
Employer’s CPF/pension fund contribution
Total (Labour Cost)
Interest on Borrowings
Terms Loans
Other borrowing
Total (Interest)
Depreciation
Building
Plant, Equipment and machinery
Total (Depreciation)
Taxation
Income Tax
Property Tax
Payroll Tax
Skills Development Fund Levy
Total (Taxation)
Value Added
a
b
c
d
e
f = a + b + c +
d + e
Source: Workshop on Productivity Measurement and Analysis, Page No (17).

19
Economic Sector Labour Productivity
4.1 Agriculture, Forestry, Fishing and Subsistence Sector
Productivity in agriculture sustains the economic welfare of a society since it helps decrease inflation, conserve scarce
resources and maintain a country’s competitive position. Any improvement in productivity would assist Fiji’s economy to
minimize rural poverty, raise rural income and reduce the rate of rural to urban drift. However, despite its importance to
the economy, this sector’s share of the total income has been declining due to low investment and shift of labour force to
the Service sector.
The share of this sector accounted for 14.98 percent of the Real GDP in 2006 and stood at about FJD $462.5 million. When
compared to 2005, the 2006 output had decreased by 0.6 percent. The labour productivity for Fiji is estimated to be FJD
$11,791 and had a negative growth of 0.6 percent. The Sugar industry being the former backbone of Fiji, forms the core
of the Agriculture sector. In 2006, the output has increased from FJD$114.8 million to FJD$121.2 million, or an increase
by 5.5 percent.
Chapter 4
According to the Fiji Standard Industrial Classification 2004, the definition of this sector is, all units which
are mainly engaged in agriculture, forestry and fishing. The term agriculture in a broad sense includes the
breeding, keeping or cultivation of all kinds of animal and vegetable life. Forestry includes afforestation,
harvesting and gathering of forest products. Fishing includes the catching, gathering, breeding and
cultivation of marine life from ocean, costal and inland waters.
Source: Fiji Island Industrial Classification December 2004 Pg No 17-20). Fiji Islands Bureau of Statistics.

20
Figure 4.1 shows the labour productivity growth of Agricultural, Forestry, Fishing & Subsistence sector, which on average
recorded a negative growth rate of 2 per cent for the years 2000 to 2006. Between the years 2000-2003, the labour
productivity growth was negative, which was a direct result of the 2000 political instability. Similar trends of low
productivity are also visible in Figure 4.2. For example, in the year 2000, the Sugar sector had a negative growth of 15.34
per cent. This low growth could have been a result of low skill and inefficient time management. Some factors that also
contributed to negative growth in 2005 and 2003 (refer to Fig 4.1) were expiring land tenure, frequent sugar mill
breakdown because technology is largely antiquated, unfavorable weather/climatic conditions and poor quality of cane
supplied. In 2004, this sector’s labour productivity was 1.5 per cent, which was due to high output followed by consistent
employment figures. It is important to note that in 2004 the Government had approved restructure of the industry, to
improve efficiency through upgrading machinery, equipment and infrastructure and to resolve the expiring land permits
from the implementation of the industry reform.
Computed from: Key Statistics, June 2007 Pg N0 (15,76). Fiji Islands Bureau of Statistics.
Strategic Development Plan 2003 – 2005 Pg No (223). Ministry of Finance and National Planning.
Source: Key Statistics, June 2007 Pg No (24) Table 4.4. Fiji Islands Bureau of Statistics.

21
Figure 4.3 depicts the total production of all selected agricultural products in Fiji from 2000 to 2006. The trend clearly
depicts that the output is getting lower due to factors such as shift of employment to other sectors and low efficiency
overall. This trend also indicates that the total Value Added for this sector will also be low or stagnate in the future.
Some measures to increase productivity are outlined below:
• Resolving the land tenure issue which has withheld back much investment;
• Improvement of rail transportation;
• Use of high yielding varieties;
• Intercropping other crops with sugarcane;
• Alternative bio-product like ethanol and molasses;
• Focusing on training and development of the informal workers for better farm management practices;
• Implementation of effective and efficiency ratios;
• Introduction of productivity initiatives like Quality Circles, 5S and Green Productivity to reduce operation costs;
• Strengthening research and extension arm of Ministry of Agriculture; and
• Improving rural infrastructure.
4.2 Mining and Quarrying Sector
Fiji has the potential of expansion in the Mineral sector because of its location in the Pacific “Rim of Fire”. This strategic
location gives such potential for copper, industrial minerals and gold. In 2006, the Mining and Quarrying sector accounted
for nearly 0.49 percent of the Real GDP. Once a booming industry, it has seen a major decline in the production of gold. In
2000, total output was FJD $47.6 million and when compared to 2006, output fell to FJD $15 million, a decline of 68.4
percent. Figure 4.4 depicts the trend of decreasing gold production. The performance of gold production from 2000 to 2004
was quite sound and in 2004, it reached above 4 tonnes. This better performance was ‘short-lived’ as the production level
fell in 2005 by 31 per cent. The effects of low production have resulted in low Value Added and labour productivity growth
as evident in Figure 4.5.
This category includes, all units engaged in mining, quarrying and exploration. The term mining is used in
the broad sense to include the extraction of minerals occurring naturally as solids such as ores or liquids
such as petroleum.
Source: Fiji Island Industrial Classification December 2004 Pg No (21). Fiji Islands Bureau of Statistics.

22
Figure 4.5 depicts the performance of labour productivity growth in the Mining sector. The average labour productivity
growth from the year 2000 to 2006 was negative 8.3 per cent, whereas productivity in 2006 stood at FJD $4,835.
Interestingly, the performance of 2004 showed a positive growth of 6.16 per cent due to increase in output of FJD $43.4
million from FJD $37.83 million. One area of further improvement for this sector would be to improve funds, subsidise
capital and technology investment for exploration and extracting of more minerals. In 2006, the growth was negative 30
per cent, which was a result of lower – quality ore extracted as depicted in Figure 4.4. This is a major concern for policy
makers as Emperor Gold Mining Company (EGM) had also taken steps to stop its operations in 2006. The closure of the
Mine has put immense pressure on the economic growth and it is estimated that a total of 1700 individuals have been
laid off. (Fiji Times, December 06, 2006)
3794 3865
3726
3517
4033
2793
1403

23
4.3 Manufacturing Sector
The Manufacturing sector plays an important role in identifying the productivity of a country. The reason being that
manufactured goods are those that have to meet the international standards, when they are traded in a global market.
Competition can be felt the most in this sector since our products such as food, textiles, apparel, paper products and basic
metal have to trade in international markets, which only accepts high quality items for consumption. According to the
Organization for Economic Cooperation and Development (OECD), competitiveness is defined as the degree to which a
nation can, under free trade and fair market competition, produce goods and services, which meet international standards,
and at the same time expanding the standard of living. It is vital that Fiji needs to focus on enhancing production
techniques to become world class so that products and services would have gone through a degree of evaluation to meet
international standards. Thus, the measurement of Manufacturing sector labour productivity would form the cornerstone
of establishing a standard or even improving on it.
In 2006, the Manufacturing sector accounted for 14.9 percent of the Real GDP and stood at FJD $461.4 million. Its output
had increased by 7.7 per cent when compared to 2005 where the output stood at FJD $428.3 million. The Manufacturing
sector’s total employment stood at 62,836, with a share of nearly 17 per cent of the total employment. The manufacture
of non-food industries such as Clothing and Footwear accounted for 49 per cent of the total manufacturing output, while
the sub-sector of Beverage & Tobacco recorded a growth of nearly 36 per cent when compared to 2005.
A brief definition of the manufacturing sector is involving activities that transform chemical and physical
materials or components into new products, whether the work is performed by power driven machines or
by hand and at a later stage sold at wholesale or retail. Assembly of the components parts of manufactured
products is also considered manufacturing.
Source: Fiji Island Industrial Classification December 2004 Pg No (22-35). Fiji Islands Bureau of Statistics.

24
Figure 4.6 depicts the labour productivity growth of the manufacturing sector. On average for the 7 years (2000-2006) the
labour productivity of the Manufacturing sector was positive 0.5 per cent. This implies that the contribution of workers to
total output had been quite low. Labour productivity in 2000 was a result of political and economic uncertainty where
manufactured total output was low. In 2004, Fiji’s labour productivity growth was 5.5 per cent which fell dramatically in
2005 to negative 8.5 per cent. The reason for this dramatic fall was that the output in 2005 fell by nearly 15.4 per cent
and it is estimated that total labour also decreased by nearly 8 per cent. In 2006, the labour productivity growth stood at
2.7 per cent, which reflects the joint effects of many factors such as capital investment, advances in technology,
organizational efficiency and as well as improved skills of the workforce.
Figure 4.7 depicts that following the year 2000, the labour productivity of the Manufacturing sector was above the FJD
$7,000 par and in 2004, it stood at FJD $7,812. The total Value Added in 2004 stood at FJD $ 506.4 million and this was
due to fruitful contributions from sub–sectors of manufacturing such as Beverage & Tobacco and Clothing & Footwear.
However, in 2005, the labour productivity fell to FJD $7,147 and one of the key reasons identified was due to the stiff
competition by countries like China and Malaysia. When compared to the Malaysian Manufacturing sector’s performance
for the same year, productivity growth was 3.8 per cent and the labour productivity stood at RM 30,533.
In comparison with other countries, Fiji has a comparative advantage in the Manufacturing sector as it has low-cost labour.
However, mass production can be achieved at a lower production cost in countries such as Malaysia, China and the
Philippines, who have a higher population and larger pools of unemployed labour. This is due to the fact that these
competitors invest heavily on process improvement in order to increase both the quality and quantity of output. Small
businesses are not isolated with the modern Total Quality Management techniques and their attitude towards productivity
is always positive. Companies maintain an improved management and employee relationship and acknowledge
employees’ efforts with rewards and awards. It is hardly an exaggeration to state that a happy worker, who receives
compensation for his or her efforts, will also be a productive worker.
(FJD)

25
Ways to improve productivity in the Manufacturing sector are outlined below:
• Training in productivity awareness;
• Mainstreaming productivity, for e.g., restructuring of policies in line with productivity movement accessing niche
markets;
• Implementation of TQM tools such as Quality Circles, 5S, JIT, Kaizen, Productivity Measurement, Benchmarking and
Green Productivity;
• Human capital development of staff (workshops and short courses in the subject area and formal qualification leave);
and
• Top management commitment for Research and Development to improve cost efficiency.
Another tool that can be used is the ‘COMPASS’ software. The Malaysian Productivity Corporation (MPC) has introduced
the concept of COMPASS (Company Manual for Productivity Assessment) for the measurement of productivity. It acts as
a guide for companies to better compute productivity measurement for improvement using the Value Added concept. The
purpose of ‘COMPASS’ is to establish the way for participation of both labour and the management. This software
measures the efficiency of the utilizations of company resources such as materials, labour, capital asset and etc. A list of
productivity indicators included in ‘COMPASS’ are illustrated below.
Source: Promoting Productivity Measurement in Fiji, Pg No (54).
Competitiveness
Value Added per Labour Cost (VA/LC)
Labour Cost per Employee (LC/E)
Unit Labour Cost (LC/TO)
Labour Productivity
Value Added per Employee (VA/E)
Total Output per Employee (TO/E)
Capital Productivity
Value Added per Fixed Asset (VA/FA)
Process Efficiency
Value Added per Total Input less BIMS (VA/TI-BIMS)
Business Returns
Operating Profit per Total Output (OP/TO)
Operating Profit per Fixed Asset (OP/FA)

26
4.4 Electricity, Gas and Water Sector
In 2006, this sector’s share was 4 per cent of the Real GDP with a total output of FJD $120.5 million. For the same year,
labour productivity stood at FJD $9,928 and when compared to 2005, a negative growth of 0.12 per cent was recorded.
Figure 4.8 depicts the labour productivity growth of Electricity, Gas and Water sector, which on a 7 year average recorded
a negative growth of nearly 0.2 per cent. Predominantly, this sector has performed well for the period between 2001 and
2004. Some of the factors identified were firstly, that total output was driven by growth of production of water by 30.7
per cent and electricity by 3.3 per cent. Secondly, when compared to 2000, electricity connection had increased to 127,946
in 2004, which indicated an increase in access and outreach. According to the Fiji Islands Bureau of Statistics (Fiji Facts
& Figures of July 2006 Booklet) total electricity consumed in 2005, by Qty KWH was 721 million and valued at FJD $133
million of which, Commercial sector consumed the most.
In 2001, this sector recorded a high labour productivity growth of 3.2 per cent and this is a clear indication of an effective
and efficient contribution by labour to the overall Value Added. Since productivity is dependant on capital stock as well it
is highly recommended that advanced and modern infrastructure be used.
This sector is affected by situations such as increasing oil prices and drought, which are beyond control. These twin ‘evils’
will hinder production levels and the consumers will suffer. For example, due to the lower water levels at the Monasavu
Dam in 2003, the level of electricity supplied declined to 30 per cent of the total electricity.
According to the Fiji Standard Industrial Classification 2004, the definition of this sector is, all units
mainly engaged in the generation, transmission or distribution of electricity, the manufacture and storage
of town gas and purification or supply of water.
Source: Fiji Island Industrial Classification December 2004 Pg No (36). Fiji Islands Bureau of Statistics.

27
Productivity tools that could assist the Utilities sector are outlined below:
• House Keeping 5S and Quality Circle;
• Capital Restructure;
• JIT(Just-In-Time);
• Upgrading human resources through training and skills motivation program; and
• Productivity Accounting.
This chapter highlights the productivity trends in Agricultural, Mining, Manufacturing and Public Utilities sectors. The
Agriculture sector’s productivity has been constant over the study period. However, for all the other sectors, there is
evidence of a decline. Growth in the economy cannot be harnessed if this decline is not arrested immediately and remedial
measures are taken to improve productivity.

28
Business Sector Labour Productivity
5.1 Wholesale and Retail Trade and Hotel and Restaurant Sector
In 2006, the Wholesale and Retail Trade and Hotel and Restaurant sector accounted for 18 per cent of the Real GDP and
stood at a total of FJD $567.8 million. When compared to 2005, the total output had increased by nearly 6.6 per cent.
Figure 5.1 shows the labour productivity growth of Wholesale and Retail Trade and Hotel and Restaurant sector. On a 7
year average, this sector recorded a negative growth of 0.7 per cent. The growth in 2005 was negative 2.5 per cent, which
was a result of little growth in the Real GDP and an increase in total number of paid workers. On the contrary, in 2006, a
growth of 1.8 per cent was achieved. This performance was reflected by high consumer confidence due to some relaxation
in the rate of personal and corporate tax rates, which has also helped raise demand. In 2004, this sector’s Value Added
recorded a growth of 12.72 per cent and this is attributed to the star performance of the Tourism sector after the 2000
coup. Given the growth in 2006, this sector shows positive trend for the years ahead, where focus should be based on
high quality services and customer satisfaction.
Chapter 5
According to the Fiji Standard Industrial Classification 2004 definition, the wholesale trade includes the
sale of goods and services without transformation of new and used goods to the retailers and other
interested buyers. The retail trade includes sale without transformation of new and used goods to the
general public. The category of hotels and restaurants are, all units that are engaged in providing
hospitality services in the form of accommodation, meals and drinks.

29
Figure 5.2 depicts the labour productivity growth of Hotels and Restaurants from 2001 to 2003. This sector achieved a
growth of 8.68 per cent due to increase in visitor arrivals in 2001. In 2003, it is estimated that Fiji attracted 43 per cent of
the aggregate 1 million visitor arrivals in the region. In 2004, visitor arrivals increased to a record of 502,765, creating
income both directly and indirectly. According to the Fiji Islands Visitors Bureau, 576,000 visitors were expected in 2006,
an increase of around 5 per cent over 2005. It is interesting to note that although visitor arrivals are increasing, this does
not reveal a true picture of labour productivity. The trends of 2002 and 2003 show negative growth which means that the
true contribution of labour in this sector was still low.
The Tourism industry has the potential to grow provided the level of skills of workers reaches greater heights. In a Service
sector like Tourism, customer retention, orientation and satisfaction are the most important issues which need to be
focused on. Training and development are important elements that ensure effective performance by labour. Training would
support acquisition of specific knowledge and skills that enables labour to execute the responsibilities effectively and
efficiently. Commitment to training has to come from top-management who in their capacity should maintain an open door
policy and give priority to improve labour. The method of training will differ from organization to organization depending
on their respective needs. For example, in a bank, a frontline worker should be trained on all types of services and products
that a bank provides. Thus, the first step in training employees is to allocate a training budget and identify the needs of
the company through its strategy which is linked to the mission and vision. Implementation of the Training Needs Analysis
is vital for business, which is dependent on both management and employee commitment.
Steps that should be undertaken to improve productivity are outlined below:
• Training and development of employees on customer services;
• Establishing a corporate and organizational identity;
Strategic Development Plan 2003 – 2005 Pg No (259). Ministry of Finance and National Planning.

30
• Improvement of communication both vertically and horizontally across the organization structure;
• Using 5S and Quality Circles; and
• Re-engineering of the Human Resources Management to create world class organizations through managing
processes dynamically and being customer focused.
5.2 Transport and Communications Sector
Fiji’s ‘Exclusive Economic Zone’ comprises of about 330 islands. Of the two main Islands, Viti Levu is 10,429 square
kilometers, while Vanua Levu is 5,556 square kilometers. Inter–island connection is high with a number of local shipping
vessels available for both traveling and transportation of goods and services.
Fiji’s railway is solely owned by the Fiji Sugar Corporation (FSC) and is only used to haul sugar cane during the harvesting
season. Government spending in road development, such as expansion of highways, has seen a total of 5,300 kilometers
in 1997, which is controlled by the department of National Roads. In 2007, total roads were estimated to be at 8,000
kilometers. In 2004, Fiji had a total of 28 airports and three shipping-ports which are located in Labasa, Lautoka and Suva.
The Tourism sector has played a major role in the construction of airports in the outer islands and also the refurbishment
of the Labasa and Nausori Airports.
This sector accounted for 13.23 per cent of the Real GDP in 2006 with a total output of FJD $408.3 million. When compared
to 2005, it recorded a negative growth of 3.3 per cent. It is estimated that for the year 2006, the total number of formal
workers was 9,800 and the overall labour productivity stood at FJD $9,531. According to the Key Statistics of June 2007,
the total employment for paid workers in this sector had been decreasing. For example, in 2000, it stood at 11,318 and in
2003, it had decreased to 9,792.
This sector includes, all units mainly engaged in providing passenger or freight transport whether
scheduled or not, by road, water or air. Also included are auxiliary activities such as terminal facilities,
car parking, stevedoring, harbour services, navigation services and etc. Storage facilities, postal, courier
and telecommunication services are also included in this sector.
Source: Fiji Island Industrial Classification December 2004 Pg No (45-46). Fiji Islands Bureau of Statistics

31
Figure 5.3 explains the trend of Transport and Communication labour productivity growth. In 2006, the labour productivity
growth stood at negative 1 percent. This was a result of low output in this sector. Overall, a negative average growth of
nearly 1.3 per cent (2000-2006) had been achieved and a lot has to be done in order to achieve both a higher Value Added
and labour productivity. Low labour productivity growth in this sector for years 2000, 2003 and 2006 would mean that the
efficiency of labour contribution was less than the threshold and steps such as the Private sector participation and training
of employees are needed.
The Transportation sector plays a very important place in Fiji’s growth and development. It also creates high demand for
petroleum products, thus, impacting our import bill. There should be a major nation-wide campaign launched to encourage
people to use more mass transit system. This will not only save the fuel bill, but also will help reduce road congestion and
deterioration. One such available option is to extend the FSC railway lines to the rest of Viti Levu. In this way, large cargo
could be transported from the Western Division to Suva via these railway lines. This would save import bill, reduce road
congestion and also minimize air pollution.
Recently, the Telecommunication sector in Fiji has followed in the footsteps of other developed nations. It is equipped with
new and advanced technology for both its internal and international market. There is an ongoing interest in the pace of
global technological advancement due to its influence on any country’s economic growth, productivity and international
competitiveness.
Technology advancement is basically the improvement in the existing technology or introduction of new ones that makes
an organization’s, sector’s and national performance better. In Fiji, technology usage is also increasing which contributes
greatly to all other Economic sectors. The latest projection of 2007 by the World Bank shows that our mobile and internet
users have also increased, which is illustrated in Figures 5.4 and 5.5 in the following page.

32
5.3 Finance, Insurance, Real Estate and Business Services Sector
In 2006, the Finance, Insurance, Real Estate and Business sector total output stood at FJD $431 million and when
compared to 2005, its output increased by nearly 16 per cent. According to the Fiji Islands Bureau of Statistics Press
Release N0 (25) 2007, growth in this sector was attributed to a 24.9 per cent increase in the Finance sub-sector and a 17.2
per cent increase in the Real Estate and Business services.
Source: World Development Indicators, 2007.
According to the Fiji Standard Industrial Classification 2004, the brief definition of this sector is, all units
that are mainly engaged in the provision of finance, in investing money, in predominating financial assets,
in providing services to lenders, borrowers and investors, in providing insurance cover of all types, and
in providing services to insurance underwriters and to people or organizations seeking insurance. It also
includes pension funding and units predominantly engaged in renting and leasing assets, as well as units
engaged in providing a wide variety of business services.

33
Figure 5.6 depicts the labour productivity growth of Finance, Insurance, Real Estate and Business sector from 2000- 2006.
The negative growth of 4.6 per cent in 2001 was due to high interest rates and less liquidity in the market which affected
customer confidence resulting in low Value Added. In 2006, this sector recorded a labour productivity of FJD $ 10,244 and
when compared to 2005, it had a growth of 2.4 per cent. The increasing trend from 2003 to 2004 has been attributed to
an increasing number of real estate agencies in Fiji. Credit expansion continues to be primarily determined by borrowing
from Building & Construction, Manufacturing, Real Estate, Wholesale and Retail sectors.
To improve productivity, focus should be based on technology improvement and customer satisfaction. At a micro level, a
Financial Sector Ombudsman should be appointed, who would closely monitor the performance and competition in this
sector. In the meantime, the Reserve Bank of Fiji should closely monitor the behavior of this sector.
a) Technology Improvement
A simple definition of technology is the combination of equipment, knowledge and work methods that allows an
organization to transform inputs to outputs. The availability of proper technology is a major element in efforts to increase
productivity. For monetary institutions, technological advancement will come through improvement of IT technology
products, such as Phone banking, Phone-a-loan, Auto pay, Auto debits, ATMs, On-line shopping and E-banking which is
cheaply available to the consumers.
b) Customer Satisfaction
A customer provides payment to an organization in return for the delivery of services and therefore the customer is the
focal point of an organizational function. A customer is the person who usually makes the decision to purchase a service

34
and that decision will largely depend on the provision and availability of right services. Every service organization needs
to value their customers regardless of the product they purchase. The Finance, Insurance, Real Estate and Business sector
needs to introduce new innovative and creative products, which should be aimed at satisfying customer needs.
5.4 Building and Construction Sector
In 2006, the Construction sector had a total output of FJD $199 million, an increase by 11.3 per cent when compared to
the year 2005. The output had been increasing since 2001 and one of the reason was due to the rising building permits
value from 2001 to 2006, which is evident in Figure 5.7 below.
Both government capital spending and sector projects are anticipated to increase. Urbanization has also placed a huge
impact on the Construction sector as there is a major rural to urban drift to the “brighter lights” of Suva City. In 2006, the
total estimated value of work put-in-place when combined with private and central government, was at FJD $316 million.
A brief activity of this sector includes, all units that are engaged in construction building, including the on-
site assembly and erection of prefabricated buildings. Construction of roads, railroads, irrigation projects
water, gas sewerage or other specified civil engineering projects. It also includes, units engaged in
providing special building or construction trade services such as structural sheet erection, carpentry,
bricklaying, concreting, plumbing, painting, plastering, floor and wall tiling or roof tiling and wall tiling
and the installation or laying of floor covering such as carpets and linoleum.
Key Statistics, June 2007 Pg N0 (81). Fiji Islands Bureau of Statistics.

35
Figure 5.8 portrays labour productivity growth from 2000 to 2006. In 2006, the labour productivity growth was 3.1 per cent,
which was a result of high spending by both the government and private investors. The performance of 2001 was mainly
a result of the political instability in 2000, which had led to decrease in major construction works. One point to note is that
employment for paid workers in this sector has been estimated to have increased in 2001, while output had decreased by
6.9 per cent when compared with 2000. The growth of 1.46 per cent in 2003 was due to increased Government
infrastructure spending on the 2003 South Pacific Games. Although the value of the Building permits had decreased in
2005, a sound growth of 6.35 per cent was achieved. This is a clear indication that labour contribution towards the overall
output of the Construction sector was rising. In the year 2006, this sector achieved a growth of 3.1 per cent, which was
significantly caused by the consistent number of building permits been issued resulting in the construction of both Private
and Public sector infrastructure.
Labour productivity of the Construction sector is constrained by shortage of skills that is ever present in Fiji, as a direct
result of migration. This is a major concern since countries such as New Zealand and Australia also have shortage of blue
collar workers and fill their gaps by importing skilled workers from Fiji. However, the existing labour has to be enhanced
in order to improve services and productivity.
Policy improvement techniques have been identified below:
• Cross functional communication within the organization;
• Top Management Commitment;
• Developing a Quality Assurance System and Standardization;
• Building Quality into Products/ Workmanship;
• Safety Management and Control/Quality Circles/ House Keeping (5S) / OHS;
• Education and Training/ Apprenticeship Training Scheme;
• Establishment of Corporate Identity;
• Technological Development; and
• Environmental Conservation.

36
5.5 Community, Social and Personal Services Sector
This sector accounted for 18.2 per cent of the Real GDP and stood at a total of FJD $561.4 million in 2006 and when
compared to 2005, this sector recorded a growth of nearly 3 per cent.
Fig 5.9 depicts, labour productivity of Community and Social Services from 2000 to 2006. With the exception of the year
2000, when Fiji was affected by political instability, the report period from 2001 to 2006 recorded a positive growth rate.
A high growth of 3.5 percent in 2001 was attributed to an increase in output of this sector and a decrease in total
employment by 1.3 per cent. It is estimated that for the year 2001, there were 72,601 employees in this sector. In 2006,
the labour productivity growth stood at 0.8 per cent, which was attributed to the performance in the Audio Visual industry.
According to Fiji Islands Bureau of Statistics, this industry generated FJD $179 million of new economic activity and when
compared to 2005, the industry grew by 135.5 per cent.
This sector includes, all units engaged in providing community, social and personal services. This also
includes private households with employed persons and production activities of private household, public
administration, defense, education, health and social work.
Computed from: Key Statistics, June 2007 Pg N0 (19). Fiji Islands Bureau of Statistics.
(p) (p)

37
Fig 5.10 shows the expenditure incurred by the central government on education and health. Education expenditure in
2006 stood at FJD $192 million and the health expenditure stood at FJD $114 million. One point to note is that the
anticipated growth from 2000 to 2006 for both items has been increasing slightly resulting in a stagnant growth.
Education and training have been a key concern in both the Public and Private sector. In 2005, Government expenditure on
education stood at a provisional 6.2 per cent of the Real GDP. According to the Public Service Commission an allocation
of FJD $9.6 million on higher education has been spent since 2001 which has assisted nearly 2,638 students. Government
has provided FJD $6.5 million since then for student loan schemes, supporting 1000 students who otherwise would not
have had access to higher education. Government’s effort to increase overall education also has seen some FJD $14.1
million been spent on the multi-ethnic scholarship to assist nearly 4,000 students in the last five years. According to Fiji
Islands Bureau of Statistics, the total enrolment in 2004 for primary schools was 143,858, whereas in the secondary
schools, the total stood at 68,774. Emphasis has also been given to upgrade and improve in teacher training and working
conditions. In 2003, the total number of teaching staff at primary schools was 5,127, while for secondary schools, it stood
at 3,935. The enrolment for pre-primary school was 451 in 2003. For the same year, student enrolment for primary school
was 142,781 and secondary enrolment was 67,212. According to the United Nations Development Program of 2007/2008,
the literacy rate was estimated to be 94.4 per cent. A number of tertiary institutions are also operating in Fiji which
includes the University of the South Pacific, University of Fiji, Fiji Institute of Technology, Training & Productivity Authority
of Fiji, Fiji School of Medicine, Fiji College of Agriculture, Fiji College of Advanced Education and others.
The need to increase education expenditure is crucial since educated students translate into the creation of a productive
labour force. Quality education has to be provided to all students to prepare themselves for a productive future. Education
also determines the productivity of different Economic sectors, where students will be employed in the future.
In addition, academia should conduct research in areas of productivity development. Emphasis should be based on:
• Productivity awareness building;
• Productivity constraints identification and analyses;
• Productivity measurement and statistics; and
• Promoting productivity culture.
It is imperative to note that productivity should start at grass roots levels so that the next generation have their mind set
on productivity issues. Schools should promote productivity culture in their curriculum, preparing and disseminating
literature on productivity. For example, using programs such as Waste Recycling, Productivity Poster competition and
Excellence in Education. Efforts such as sustaining productivity awareness among students and promoting positive work,
ethics and attitudes are needed.

38
Health is also an important factor in Government expenditure as there is an increasing demand for better health care and
services throughout the nation. In 2006, the provisional Government expenditure stood at 3.7 per cent of Real GDP.
Generally, Fiji’s health condition is well compared to other Pacific Island Nations. The Ministry of Health, in its strategic
plan for 2005-2008, have laid down five major themes that would have focused on providing well-planned and quality
health services. The number of practicing physicians per thousand stood at 339 in 2004 and 361 in 2005, whereas the
number of hospitals stood at 25 and health centers were 76.
Steps that should be undertaken to improve productivity are outlined below:
• Using of House Keeping Initiatives such as 5S;
• Quality Circles;
• Efficiency Indicators; and
• Effectiveness Indicators.
a) Efficiency Indicators
Efficiency indicators measures the extent to which resources of a department/organization are used to produce an output.
A department is efficient when it practices optimal use of its resources to produce an output or provide a service.
b) Effectiveness Indicators
These indicators measures the level to which the targets of a job are achieved as a result of implementing that particular
job. These indicators therefore focus on the effect or impact expected from the implementation of that job. Effectiveness
can be measured directly or indirectly.

39
Example of Efficiency Indicators in the Health sector
Efficiency Indicators
It measures the average cost used in providing hospital services
This measures the relationship between the utilization of
manpower and the total services provided
Total No. of Services Provided
Total No. of Workers Involved
- Total number of patients served per worker
- Total number of needles used per worker
- Total number of Customer Complaints per worker
Measures the relationship between services provided by a
hospital and the time taken to provide them
Total Time Taken to Provide Service
Total No. of Service provided
- Average time taken for a worker to serve a patient
- Average time taken to produce a report
- Average time taken to fill medical forms
Total Cost of Providing Services
Total No. of Services Provided
- Average cost of producing a patient report
- Average cost of surgery
- Average cost of bed occupancy
- Number of patients in out-patient ward per day
Cost
Efficiency
Manpower
Efficiency
Time
Efficiency

40
Example of Effectiveness Indicators in the Health sector
In summary, this chapter examined the productivity trend in five equally important sectors of the economy. Apart from two
sectors with marginal growth in productivity, the other sectors displayed a decline. In recent years, the two sectors which
displayed a marginal increase are Community, Building and Construction. These sectors are two very important
components of the Private sector and such marginal increase is not sufficient to promote economic growth at the desired
level. The sectors with constant or falling productivity are Finance, Transport and Communication, Wholesale, Retail and
Tourism. These sectors are very crucial since they provide the fundamentals for business activity to increase. Therefore,
unless any major boost to the productivity of these sectors is done, all efforts to increase the overall national productivity
will prove difficult to attain.
Effectiveness Indicators
These indicators measure direct information on the achievement of
objectives of a job. They are commonly expressed in quantitative terms
and are able to show the performance of a job in an explicit and precise
manner.
Number of customer complaints received
Measure customer satisfaction
Waiting Time for admission
Waiting Time for Discharge
- Rate of increase of patient in out-ward department
- Percentage decrease in patient complaints
Usually used as a substitute indicator to measure the performance of a
job.
Direct
Indicators
Indirect
Indicators

41
Services Sector Labour Productivity
6.1 Introduction
The importance of the Service sector in Fiji can be measured by the proportion of Total Labour Force directly engaged in
it. For example, in 2006, Fiji’s Service sector employment accounted for 63 per cent of the Total Labour Force. Therefore,
it is well-recognized that the Service sector has become an important ‘economic driver’. In Fiji, the Service sector or the
Tertiary sector includes sub-sectors such as Wholesale & Retail Trade, Hotel & Restaurant, Transport & Communication,
Finance, Insurance, Real Estate & Business Service and Community, Social & Personal Services.
6.2 Share in Real Gross Domestic Product
In 2006, the total Value Added of the Service sector was around FJD $1968 million or about 64 per cent of the Real Gross
Domestic Product. Figure 6.1 below illustrates the provisional Value Added figures for each Service sub-sectors in 2006.
Chapter 6

42
6.3 Overview of the Service Sector Labour Productivity Growth
Fig 6.2 shows the trend of Service sector labour productivity growth. On the average of 7 years, this sector recorded a
negative labour productivity growth of nearly 0.62 per cent. The sector had performed better in 2004 having achieved a
positive growth of 2.0 per cent. In 2006, labour productivity stood at FJD $8,261, while productivity growth was 1.32 per
cent, which reflected Fiji’s commitment to achieve better services. The growth of output of this sector was around 5 per
cent and the total employment grew by 4 per cent. This was supported by an increase in Hotel turnover which grew by
nearly 6.0 per cent, a growth of 9.8 per cent in the Wholesale and Retail Trade and an increase in the Real Estate and
Business Services sub-sector by 17.2 per cent.
6.4 Ways to improve Services in Fiji?
Two of the most vital aspects of the Service sector are that companies or industries have direct intervention and complete
involvement with the customer and that this sector does not produce any physical products. Unlike the Manufacturing
sector, which has tangible goods and services, Services sector output is often difficult to measure. Due to this reason,
countries/organizations have to continue to strive for excellence by using tools that enhance the system and process
which will eventually improve services.
Although a lot of ideas and views can be expressed on this issue, however the Service sector needs to only focus on a
few ideas that will make them competitive and help in improving quality. It is also suggested that a Customer Service
Perceptions Index for all the Service sectors should be developed based on a primary survey. This index will have a number
of components from which policy makers will know exactly which area of service in a particular sector needs to be
boosted. Establishment of Customer Service Portfolio is also important as this will improve the quality of services
provided. An example of a Customer Services Portfolio is presented below:
Customer Services Portfolio
• How well do you value your customers?
• Do you know your customers’ needs and wants?
• Has there been any measurement system put in place to improve customer services,
suggestions and complaints?
• Are you in a position to give choices to a customer?
• Do you know who your internal customers are?
• Does your organization have a Customer Services Plan?
• Does your company have any innovation processes?
• Are the processes benchmarked against leaders in the field?

43
Productivity Initiatives for the Service Sector are outlined below:
• Benchmarking;
• Balanced Scorecard;
• Key Performance Indicators;
• Customer Satisfaction Index;
• Quality Circles; and
• Performance Measures.
The Service sector is mostly part of the Public sector. Productivity improvement in this sector depends a lot on both, human
capital development and the changing of the general work culture. There is widespread consensus in Fiji that to raise
efficiency in Fiji’s public service, the culture of work ethics must change. To this effect, the public service must adapt
corporate culture to raise general productivity level.

44
Summary and Conclusion
The ultimate aim of productivity is to increase the size of the economy, thus, improving the quality and standard of life of
the people. Productivity is the key factor that enables society to generate Value Added through the maximum mix of
available resources such as human knowledge and skills, technology, equipment, raw materials, energy and capital. It’s
growth contributes towards the prosperity of nations, makes companies competitive in the global market and improves
the quality of life. Without people’s resourcefulness and efforts in improving productivity, the economy would have run out
of means of survival and progress as the rate of increase of land, labour and capital would not keep pace with that of
population increase.
Figure 7.1 illustrates the labour productivity ranking for nineteen Asian Productivity Organizations member countries. Fiji’s
8th ranking indicates that the labour productivity growth is quite sustainable but not immense. Figure 7.1 can also be used
as a benchmark in order to improve productivity performance in Fiji. The government and all stakeholders can adhere to
follow policies similar to the productivity leaders of countries such as The People’s Republic of China, Japan and Singapore.
Chapter 7
Source: APO Productivity Data Book 2008 Pg No (19). Asian Productivity Organization.
Computed from: Key Statistics, June 2007 Pg N0 (15, 76) Fiji Islands Bureau of Statistics.
(Please note that economic sector names have been written in acronym)
AHFF MQ M EGW E WRRH TSC FIRB CSP

Fiji Labour Productivity Report 1999-2006 Analysis

Fiji Labour Productivity Report 1999-2006 Analysis

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