Labor & Human Resources
The Training Policy
Human resource development, in the public
and private sectors, is a priority of the
Government.
To improve the lifestyle of Papua New Guineans,
access to training must be provided. They
must have access to programmes where, if
they take the initiative, with the support
of their employer, they have the opportunity
to improve their lives and the lives of
their families.
The National Training Council (NTC) is
the Government organisation charged with
administering the training policy. The NTC's
main task is to ensure that training is
conducted in all sectors of industry. Part
of its brief is to develop and promote high
standards of training in Papua New Guinea,
and to co-ordinate and distribute, among
the private and public sectors, information
and opportunities available in respect of
training.
A major, long-term vocational training
programme is being fine-tuned. It is a joint
initiative of the Papua New Guinea Council
of Manufacturers and the Australian Chamber
of Manufacturers. The governments of both
countries are supporting the project which
is expected to be aid funded.
The majority of factory floor personnel
in Papua New Guinea require further skills
training.
The programme will address this by providing
those people with opportunities for further
tutoring in the form of specially-designed
vocational training courses. Such courses
will be offered within the country, rather
than overseas, as trainees in their own
environs are known to respond more positively
to instruction and employers will be better
able to monitor progress and offer encouragement
during engagement.
Courses conducted will provide a limited
amount of theory with a much greater emphasis
on practical, hands-on training. Subjects
will be specific rather than general, to
facilitate concentration in detail on singular
topics, in order to produce quality knowledge
and more efficient production skills.
to promote training of citizens at all
staffing levels, a training levy is applied
to all businesses whose annual payroll exceeds
K100,000. The levy, assessed on an annual
basis, is calculated on the taxable salary
and wages, including benefits, of all personnel.
Expenses incurred in the training of citizen
employees are deducted from the amount payable.
Any business spending more than two per
cent of its payroll on training citizens
staff does not pay the levy.
Upskilling and Multiskilling
The NTC is directly responsible for co-ordinating
training specifically for the upskilling
and multiskilling of employees.
One of the main thrusts of the NTC is on-the-job
upgrading of skills. It promotes and implements
training programmes which are geared towards
meeting the needs of industry. For instance,
the trade testing and certification scheme
is responsible for the constant upgrading
of technical skills, to keep pace with technological
changes.
The NTC is also responsible for securing
formal and informal training overseas through
various technical assistance programmes
conducted by agencies such as AusAID and
the CFTC. This training is secured for people
already at work and those citizens who are
still going through the education system.
Prohibited Occupations
The ongoing training of the local work
force has resulted in a pool of available
labour trained in many different fields
of work. Investors should be aware that
while certain professional, technical and
managerial positions are open for foreign
nationals to occupy, there is a list of
occupations which can only be filled by
Papua New Guineans. The most up to date
list of occupations open to foreign nationals
can be obtained from the Department of Industrial
Relations.
Unions
There are unions and industrial organisations
in Papua New Guinea. In the public sector,
almost 100 per cent of the labour force
is unionised through the Public Employees
Association (PEA) and other occupational-based
unions like teachers, police and nurses
associations.
In the private sector, unions are organised
on an enterprise level. Unions in the strategic
sectors of mining, transport, waterside,
communications, and so on, are better-organised
because of the stability in membership.
The workforce in some other sectors, such
as agriculture, which is rural based, remains
disunited.
Wages
Wages in Papua New Guinea are set by a
Government body known as the Minimum Wages
Board. The wage setting process in Papua
New Guinea has experienced reform and change
in recent years. In 1992, the Board abolished
the method of setting wages which involved
the automatic indexation of the minimum
wage according to the movement of the Consumer
Price Index. The Board set a legal minimum
rate of K22.96 per week (for unskilled adult
workers) and introduced a minimum wage for
youths aged 16 to 21 years. Youths were
given special attention in order to address
unemployment.
The Board also determined that wages and
improvements in employment conditions were
to be determined through collective bargaining
or free negotiations between the labour
force or representative unions and employers
or through representative organisations.
Anything above the minimum wage level is
subject to negotiation between employer
and employee and/or their respective industrial
organisation based on productivity at an
industrial level and capacity to pay by
employers.
The National Minimum Wage applies irrespective
of location of employment.
Both classifications of the National Minimum
Wage and the Youth Minimum Wage applied
to all new entrants to the work force from
the date of operation of the determination.
Employees in employment at the time of
the change were not to be affected by the
1992 minimum wages policy.
There are award rates of pay for certain
skills. Up to date information about the
rates of pay can be obtained from the Department
of Industrial Relations or by contacting
the Investment Promotion Authority.
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