Observation (CEACR) - adopted 1991, published 78th ILC session (1991)

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

The Committee notes the information transmitted by the Government in relation to its 1990 observation, as well as the information concerning the practical application of the Convention. It also noted the comments made by the Inter-Union Workers' Assembly - National Workers' Convention (PIT-CNT) concerning the application of Articles 3 and 4 of the Convention, and the Government's observations on these comments. According to these allegations, which were received respectively on 28 February 1990 and 7 March 1990, when fixing minimum wages by branches of activity and categories of employment, Act No. 10449 (respecting minimum wages fixed by collective bargaining in tripartite councils) is applied in form but not in practice; this is because the Government does not follow the procedure established by the Act, but instead fixes minimum wages unilaterally as provided for in Legislative Decree No. 14791. The PIT-CNT states that on various occasions the Government has omitted to convene wage councils and has established the minimum wage by unilateral decision. It also states that the Government has not confirmed any collective agreement that does not comply with its economic guide-lines. The PIT-CNT adds that, even though sufficienctly representative organisations of rural workers exist, the system of wage councils is not applied to these workers, for whom the minimum wage is fixed unilaterally. Finally, it states that the national general minimum wage has fallen behind wages in general. The PIT-CNT also points out that the increases in minimum wages fixed as a result of periodical reviews based on the inflation rates projected by the Government are frequently lower than the actual inflation rate, which is calculated erroneously by the Government.

The Committee also notes from the Government's report that the workers' delegation to the tripartite advisory group on international relations has stated that the national minimum wage, and the wages of rural workers, continue to be fixed unilaterally by the Government, without the participation of the trade unions.

Article 1, paragraph 3, of the Convention. With reference to its previous comment, the Committee notes with satisfaction the adoption of Decree No. 433/990, of 19 September 1990, establishing a minimum wage for domestic workers, both in Montevideo and the interior of the country. It also notes the Decree of 19 September 1990 fixing the minimum wage for rural workers.

Article 2, paragraph 2. The Committee notes that, according to the PIT-CNT, the Government has not confirmed any collective agreement that does not comply with its economic guide-lines. In this connection, the Committee refers to the conclusions of the Committee on Freedom of Association on this question at its November 1989 Session (see 268th Report, Case No. 1460, paragraph 571). The Committee on Freedom of Association pointed out that "in the Uruguayan system, what is referred to as 'confirmation' of a collective agreement is, strictly speaking, an 'extension' of its application to all workers employed in the branch of activity concerned if they do not belong to the signatory trade union organisations or the enterprises to which the collective agreement applies. However, in the event of refusal to extend a collective agreement, nothing appears to prevent the workers who are not covered by the agreement to conclude other collective agreements through their trade union organisations." The Committee on Freedom of Association therefore considered that these allegations did not call for further examination.

Article 3(a). The Committee notes that minimum wages are fixed within the context of the economic plan to reduce inflation and combat the state's fiscal deficit, and that the periodical reviews of wages take into account the fluctuations in the Consumer Price Index (CPI), which is established on the basis of the current values of a basket of goods and services adjusted to the needs of a model family. Finally, it notes the statement that agreements on guide-lines for fixing minimum wages have been concluded recently in "social dialogue bodies" at the highest level of the Government and occupational organisations, which has made it possible to conclude medium- and long-term agreements on wages, with an effective recuperation of real wages.

The Committee notes the Government's comments relating to the Committee's previous observation and the comments of the PIT-CNT, and wishes to point out that, according to the detailed data supplied by the PIT-CNT in its comments, there continues to be a gap between the minimum wages that are fixed and the CPI, which is used as a basis for establishing them. The Committee requests the Government to continue supplying information on the measures that have been adopted to give effect to this Article and, in particular, to take into consideration the needs of workers and their families, taking into account the general level of wages in the country, the cost of living, social security benefits and the relative living standards of other social groups.

Article 4, paragraphs 2 and 3. The Committee notes the Government's explanations concerning the current procedures for establishing minimum wages in the country. The Committee notes that the Government recognises in its comments that, at least for the first quarter of 1990, the minimum wage was fixed unilaterally for some workers, but, after this period, minimum wages were fixed in wage councils by branches of activity and occupational categories. The Committee also notes that, according to the PIT-CNT, within the context of the so-called medium-term agreements, the Ministry of Labour decided that, in the event of employers and workers not reaching agreement, wage reviews would be determined by the percentages that the Government would fix in each case, and that as a result of this, the employers on various occasions made proposals that were unacceptable to the workers or simply did not come to the negotiations, with the consequence that the Government could unilaterally fix the corresponding reviews of minimum wages. The Committee would therefore be grateful if the Government would continue supplying information on the measures that have been adopted to ensure that the organisations of workers concerned are adequately consulted in the fixing or reviewing of minimum wages, either through wage councils or any other procedure that the Government considers to be more appropriate.

The Committee notes that the Government has also stated that the minimum wage of rural workers is established unilaterally since there are no trade union organisations representing all rural workers and these workers are very widely dispersed geographically in their enterprises. The Committee also notes that, according to the PIT-CNT, there are representative organisations of rural workers. The Committee points out that paragraph 2 of this Article contains provisions on this subject. The Committee therefore requests the Government, taking into account the suggestions that it made in its 1990 observation, to supply information on the measures that have been adopted or are contemplated to ensure that the minimum wage of rural workers is established in consultation with the organisations of the workers concerned or with representatives of these workers, as laid down in this Article of this Convention.

The Committee notes that the national minimum wage applies to marginal sectors and also notes that the PIT-CNT agrees with this assertion. However, the Committee notes the Government's acceptance that the minimum wage is fixed unilaterally, that the minimum wage does not appear to increase at the same rate as other minimum wages, that the national minimum wage fixed by virtue of the Decree of 27 September 1990 is lower than the minimum wage that has been fixed for domestic workers in Montevideo (Decree No. 433/990). It also notes that the workers' delegation to the tripartite advisory group on international relations repeats its statement, as contained in the Government's report, that the minimum wage is fixed unilaterally by the Government. The Committee therefore requests the Government to supply information on the measures that have been adopted to ensure, when fixing the national minimum wage, that the workers' organisations concerned are consulted and that the minimum wage takes into account the elements set out in Article 3 of the Convention and, in particular, the needs of workers.