Observation (CEACR) - adopted 1990, published 77th ILC session (1990)

Minimum Wage Fixing Convention, 1970 (No. 131) - Uruguay (Ratification: 1977)

The Committee takes note of the information provided by the Government in reply to its observation of 1989 which concerned, among other matters, the allegations made by the Inter-Union Workers' Assembly - National Workers' Convention (PIT-CNT) with regard to the application of Articles 3 and 4 of the Convention. The PIT-CNT alleges that the elements referred to in Article 3(a) in connection with the needs of workers and their families, are not taken into consideration in the fixing of the national minimum wage established by decree. It also alleges that the minimum wage of rural workers continues to be fixed by government decree without consultations being held, as required by Article 4 of the Convention, with the employers' and workers' organisations in this sector. The above organisation also indicates that the Government has not created wage councils in the farming, wine-producing, bee-keeping, etc. sectors, as provided for in the legislation, and in particular in Act. No. 13246. The above-mentioned organisation also referred to domestic staff, who continue to be left outside any minimum wage-fixing system.

The Committee takes note of the Government's reply to the above allegations and to the Committee's own previous comments. The Committee takes note of the Government's reply to the above allegations and to the Committee's own previous comments. The Committee also examined the legislation and statistical data appended to the report, concerning wage rates, and wishes to make the following observations:

Article 1, paragraph 3 of the Convention. The Government again refers to the reasons it evoked in its previous report for the exclusion of domestic workers from the coverage of minimum wage legislation. The Committee asked the Government to indicate whether measures were envisaged to ensure that these workers are provided with a system for fixing minimum wages, in accordance with the Convention. In view of this request and the comments made by the PIT-CNT, the Committee hopes that the Government will be able to provide information on the measures planned or envisaged to this effect.

Article 3(a). The Committee notes the Government's indications that the elements taken into consideration in fixing minimum wages through administrative measures include consumer price index movements and forecasts. The Committee gathers that the elements referred to in Article 3(a), i.e. the needs of workers and their families, given the general level of wages in the country, the cost of living, social security benefits, and the relative living standards of other social groups, are apparently not fully taken into account in determining minimum wages. The Committee's impression is reinforced by the comments of the PIT-CNT to the effect that the basic basket, at the time when the comments were made, was 125,000 new pesos and the minimum wage fixed by the Government was 25,000 new pesos. The Committee takes note of the planned increase in the minimum wage of the agricultural sector, mentioned by the Government, and would be grateful if the Government would provide information on the manner in which all the elements mentioned in Article 3(a) are taken into account when the national minimum wage and the minimum wage of rural workers are fixed by administrative measures.

Article 4, paragraphs 2 and 3. The Committee takes note of the information supplied by the Government concerning the manner in which the workers' and employers' organisations participate in fixing minimum wages through tripartite councils. However, the Committee gathers that in determining and adjusting the minimum wages established by decree (national minimum wage and minimum wage in the rural sector) the organisations of workers and employers concerned are not consulted in advance. In view of this information and the comments of the PIT-CNT, to which the Committee has already referred, it asks the Government to consider adopting measures to ensure that the workers' and employers' organisations concerned, or their representatives, are consulted when the national minimum wage and the minimum wage of rural workers are fixed. Another approach might be to amend the provisions of Decree No. 647/978 of 21 November 1978, concerning the rules governing the employment of rural workers, in order to ensure that when the minimum wages of this category of workers are fixed the workers' and employers' organisations concerned are consulted, or the amend Decree No. 178/1985 to include farming among the activities mentioned therein. The Committee requests the Government to indicate the measures taken with regard to either of these possibilities.

The Committee also takes note of the further allegations of the Inter-Union Workers' Assembly - National Workers' Convention (PIT-CNT), dated 9 February 1990, which were transmitted to the Government in a letter dated 2 March 1990. The allegations recall some of the comments made previously by the above organisation, with regard to the application of the Convention and they add that, in determining minimum wages by branch of activity and occupational category, the Government applies Act No. 10449 (minimum wages fixed by collective bargaining in tripartite councils) only formally, but not in substance. It fixes the minimum wages unilaterally, thus applying Legislative Decree No. 14791. The Committee hopes to examine these new allegations once the Government has transmitted comments which it considers pertinent on the above allegations. [The Government is asked to report in detail for the period ending 30 June 1990).]