Direct Request (CEACR) - adopted 1992, published 79th ILC session (1992)

Employment Policy Convention, 1964 (No. 122) - Panama (Ratification: 1970)

1. The Committee takes note of the Government's report for the period October 1989 to June 1990. According to the report, the Government is giving top priority to employment, as is reflected in the fact that a National Strategy for Development and the Modernisation of the Economy and a Social Emergency Fund (FES) have been created, both of which are designed to achieve greater harmonisation between labour supply and demand. The National Strategy includes labour legislation reforms and new regulations to achieve a greater labour flexibility, the creation of multi-sectoral areas for the production of exports, the modernisation of transport, a review of the tax system and changes in the education system. The Government considers that achieving the objectives of employment and economic recovery depends not on a direct policy or direct action of the initial State but on the functioning of the economic system. None the less, in order to protect the sectors that are most vulnerable to the adjustments required by the new development strategy - which has medium and long-term objectives - a social action programme has been created to establish rules and implement measures designed to provide employment and income opportunities and satisfy the basic needs of the population. The FES is responsible for achieving the objectives of the social action plan, which include the generation of employment (Presidential Decree No. 146 of 20 May 1990). Temporary employment programmes are also being implemented by civic associations responsible for repairing streets, schools, community facilities, etc. The Government points out that the open unemployment rate stood at 17 per cent in June 1990 (exceeding the highest rates of the previous decade - 12.3 per cent, 10.5 per cent and 11.6 per cent in 1985, 1986 and 1987 respectively - noted by the Committee in its observation of 1989).

2. The Committee hopes that the Government will continue its efforts to declare and pursue, "as a major goal", an active policy designed to promote full, productive and freely chosen employment. It trusts that account will be taken of the effects on employment of measures to promote economic development and achieve other economic and social objectives (Articles 1 and 2 of the Convention). In this connection, it would be grateful of the Government would continue to transmit detailed reports on the application of the Convention including, in particular, information on the results obtained by the measures implemented in the framework of the FES and the temporary employment programmes, and on the effects on productive and freely chosen employment of measures to encourage the creation of multi-sectoral areas for the production of exports.

3. Article 3. The Committee notes that the Government's report contains no information on the manner in which the representatives of the persons affected are consulted concerning employment policy. It hopes that in its next report, the Government will provide information on the consultations with the representatives of employers' and workers' organisations, and consultations with representatives of other sectors of the economically active population, such as those working in the rural and informal sectors, concerning the employment policy measures to be implemented.

4. Part V of the report form. The Committee notes with interest the report and final evaluation of project PAN/86/010, executed between 1987 and 1990 by the Ministry of Labour and Social Welfare, the UNDP and PREALC, concerning "employment policies and programmes". The Committee hopes that the regular development of activities in the framework of the project will contribute to the development of an "active" employment policy. It trusts that action will be taken on the recommendations of the report and final evaluation of the project, particularly with regard to making appropriate use of the human resources involved in the implementation of the project. The Committee would be grateful if, in its next report, the Government would provide information on any factors that have prevented or delayed action undertaken in the context of project PAN/86/010, and on other action undertaken as a result of technical assistance provided by the Office in the area of employment policy.