Fiji Bank and Finance Sector Employees Union v Public Rental Board [2005] FJAT 46; Award 72 of 2005 (19 December 2005)

THE REPUBLIC OF THE FIJI ISLANDS

NO. 72 OF 2005

INTERPRETATION AWARD OF
THE ARBITRATION TRIBUNAL

IN THE DISPUTE BETWEEN

FIJI BANK AND FINANCE SECTOR EMPLOYEES UNION

AND

PUBLIC RENTAL BOARD

FBFSEU: Mr P Rae
PRB: Mr F Achari

INTERPRETATION

In Award No.48 of 2005 dated 5 October 2005, the Tribunal settled a dispute between the Fiji Bank and Finance Sector Employees Union (the "Union") and the Public Rental Board (the "Employer") concerning issues arising out of the 2003 Log of Claims.

By letter dated 1 December 2005 the Employer indicated that it was seeking clarification concerning the method of calculating and implementing the 4.1% one off bonus payment which the Tribunal had awarded in 48/2005.

The parties appeared before the Tribunal on 13 December 2005. The Employer outlined its difficulty and the parties discussed the matter with the Tribunal. The Tribunal indicated to the parties what it considered to be the appropriate approach in order to implement the Award. This Award sets out the Tribunal’s interpretation as it was conveyed to the parties during the course of the hearing.

First, the Tribunal noted that the Employer had already made a 4.1% payment to employees for the year 2002. The issue was how to implement the 4.1% one-off bonus to employees for 2000 and 2001.

The appropriate method is to take the gross fortnightly salary of each employee as at 1 January 2000 and then calculate 4.1% of that amount. This is repeated for each of the 26 pay days in 2000 and 2001. The appropriate amount of tax is to be deducted and the net amount is payable to the employee as a one-off bonus payment.

It goes without saying that any necessary FNPF contributions must also be incorporated into the calculations.

This exercise is undertaken in respect of each employee who is entitled to the 4.1% bonus for the whole or part of the period 1 January 2000 to 31 December 2001.

DATED at Suva this 19 day of December 2005

Mr. W. D. Calanchini
ARBITRATION TRIBUNAL