The French Polynesian Employers Federation has warned of possible job losses in the lead-up to Christmas because of the rise of the minimum wage announced by President Gaston Flosse.
Mr Flosse said on election day that the 15 percent pay increase would be effective as of December the 1st to make for a nice Christmas.
But the employers say the decision was taken without any consultation and many smaller businesses in the service sector cannot afford to accommodate such a rise.
The employers have as a result suspended all current wage negotiations.
He launched a successful a no confidence motion in early October, saying the economy was faced with a crisis.
This week, he restated that the economy is paralysed and urged his new government to take quick action to improve the situation.