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

Employment Policy Convention, 1964 (No. 122) - Peru (Ratification: 1967)

1. According to the information supplied by the Government in its report (received in March 1991), the labour market situation is "fairly critical", with a high rate of underemployment which affects 75 per cent of the economically active population, and small and medium-sized enterprises supplying the domestic market are the sector most affected by the economic recession. The new national authorities have set five basic economic policy objectives: to close the budget deficit, to stop issuing money as a means of financing the public sector, to realign relative prices, to restructure wage levels and to revitalise certain sectors of the productive apparatus with a view to stimulating the other sectors. The Government hopes that these economic policy measures will step up job creation and will lead to the recovery of the purchasing power of the workforce. Social policy measures being implemented since August 1991 include an emergency programme to generate productive employment. The programme aims to provide occupational and pre-professional training for young people and to support small enterprises and micro-enterprises. The Government points out that young employees and women are the most affected by the employment problem. It also indicates that the State will promote the integration of these socially underprivileged groups by providing better job opportunities so that they can attain a higher standard of living.

2. The Committee notes that by virtue of Act No. 25327, of 14 June 1991, Congress had empowered the Executive to legislate on matters relating to employment promotion, amongst others. Legislation adopted includes the Employment Promotion Act (Legislative Decree No. 728, of 8 November of 1991). The Legislative Decree's objectives are to "promote large-scale access to productive employment as part of the overall economic policy and through special employment programmes". In addition, it introduces major innovations with a view to greater flexibility in employment. The Committee notes that the statement of the grounds for the adoption of the Legislative Decree mentions explicitly, amongst other reasons, the application of the criteria laid down in the Termination of Employment Convention, 1982 (No. 158), particularly those concerning procedures for the reduction of personnel. In the framework of the Employment Promotion Act, the Ministry of Labour and Social Development is to provide for special incentives in three areas: (i) programmes for women with family responsibilities, unemployed workers experiencing difficulties in finding employment and disabled workers; (ii) programmes for the reconversion of enterprises in the urban informal sector; (iii) programmes for the promotion of self-employment.

3. As it has for several years, the Committee can but encourage the Government to pursue its endeavours to increase employment and improve living standards for the most vulnerable categories of the population. It also reiterates its concern at developments in the economic situation, which is not conducive to the achievement of full and productive employment. The Committee notes that the Government has repeatedly referred to full and productive employment amongst the objectives of its labour and economic policy instruments. The Committee hopes that in its next report, the Government will indicate the extent to which its employment objectives have been attained, specifying how it has been possible to satisfy the needs of the specific categories of workers affected by structural adjustment measures

4. The Committee raises other, more specific points concerning the application of the Convention in a request addressed directly to the Goverment.