Observation (CEACR) - adopted 2008, published 98th ILC session (2009)

Employment Policy Convention, 1964 (No. 122) - Ecuador (Ratification: 1972)

1. Articles 1 and 2 of the Convention. Coordination of employment policy with economic and social policy. In reply to the 2006 observation, the Government indicates, in its report received in October 2007, that the Ministry for the Coordination of Social Development has been established for the planning of joint action by ministries in the social field. The Government comments that Ecuador is a country in which productive assets, such as land and credit, are badly distributed, and that labour is the only real asset that individuals have for their integration into productive life and as a means of overcoming poverty. The Committee notes that the labour indicators from January to August 2007 in Cuenca, Guayaquil and Quito indicate that the unemployment rate was 9.8 per cent (lower than the 10.3 per cent registered during the same period in 2006), principally attributable to the expansion of employment, but also to a slight fall in the participation rate. According to the data published by the ILO in Labour Overview 2008, the increase in labour demand, especially in commerce, was due to the expansion of internal demand. There was also a significant reduction in the underemployment rate which on average fell from 48.2 per cent in 2006 to 42.6 per cent in 2007. With a view to addressing an employment situation which gave grounds for concern, the Committee had requested the Government to provide information on the manner in which employment policy objectives were related to other social and economic objectives. In this respect, the Committee notes with interest the 11 areas for action by the Ministry of Labour and Employment which are enumerated in the report:

–      re-establishment of social dialogue;

–      elimination of disparities in basic minimum remuneration;

–      implementation of a modern system of labour records and statistics;

–      intensive vocational training;

–      abolition of private recruiters, labour subcontracting and other precarious forms of employment;

–      integration of persons with disabilities and those affected by HIV/AIDS;

–      progressive elimination of child labour;

–      creation of employment programmes for young persons;

–      coordination of the supply of vocational training with the National Plan for Economic Inclusion;

–      implementation of the National Occupational Safety and Health Plan; and

–      strict compliance with the standards and labour rights set out in ratified international labour Conventions.

With regard to the above, the Committee hopes that the Government will be in a position in its next report to provide updated information on the situation, level and trends of employment, unemployment and underemployment in the country and the extent to which specific measures enumerated above have been taken and, if so, whether they have been successful in generating lasting employment for the most vulnerable categories of workers (such as women, young persons and rural workers).

2. Youth unemployment. The Government indicates that up until 2006 there were no employment policies for young persons designed to achieve their integration into the labour market. In its report, the Government refers to a National Youth Employment Plan for the implementation of productive projects by young persons who have entrepreneurial skills and various internship programmes for students in higher education in the public sector (such as the programme Mi Primer Empleo). The Committee requests the Government to provide detailed information in its next report on the measures adopted to implement the National Youth Employment Plan and the results achieved.

3. Unemployment and the informal economy. The Government indicates that in March 2007, the underemployment rate in urban areas was 45.31 per cent of the economically active population, meaning that around 2 million people are engaged in informal or precarious work in activities that do not bring in a steady income, are not covered by the Ecuadorian Social Security Institute and do not benefit from employment stability or social benefits. According to Labour Overview, over 70 per cent of jobs in Ecuador are informal. The Committee requests the Government to indicate in its next report the most effective programmes in terms of the generation of productive employment for precarious workers and those in the informal economy.

4. Article 3. Participation of the social partners in the formulation and implementation of policies. The Government refers once again to the consultations held in the National Labour Council, and to the participation of citizens through peoples’ assemblies, which express views directly to the National Government on various subjects, including economic and social matters. The Committee once again emphasizes the importance of the Government including information in its next report on the manner in which the National Labour Council, and if possible the peoples’ assemblies, have participated in the formulation and implementation of an active employment policy, as required by the Convention. With a view to assessing the manner in which effect is given to this important provision of the Convention, the Committee requests sufficiently full and detailed information to assess whether the measures adopted have fully taken into account the experience and views of the representatives of organizations of employers and workers, including the representatives of those who work in the rural sector and the informal economy.