Observation (CEACR) - adopted 1994, published 81st ILC session (1994)

Labour Clauses (Public Contracts) Convention, 1949 (No. 94) - Brazil (Ratification: 1965)

Further to its previous observations, the Committee notes the Government's report as well as the attached Act No. 8666 of 21 June 1993, which sets out standards on public administration tenders and contracts.

The Committee notes the Government's indication that, under section 88 of the Act providing for the disqualification of any contracting party that has acted illegally with intent to impede compliance with bidding objectives, failure to comply with collective agreements should give rise to appropriate action. The Committee would point out that the aim of Article 2, paragraphs 1 and 2 of the Convention is to ensure that the workers concerned enjoy wages and other labour conditions not less favourable than those normally observed for the kind of work in question, whether such workers are covered by collective agreement or not. The Convention requires, for this purpose, the insertion of appropriate labour clauses in public contracts. The provisions of the Act cited by the Government (such as section 3, paragraph 1, item II, prohibiting differential treatment between Brazilian and foreign enterprises in various aspects including labour, section 29, item IV requiring a proof of up-to-date payment of social contributions, section 71 providing for the contracting parties' responsibility for labour, social security and other contributions) are not sufficient to fulfil this requirement of the Convention.

The Committee again suggests that the Government consider consulting the International Labour Office when taking necessary steps to apply the Convention, for example, by amending the above-mentioned Act to add labour clauses in the obligatory clauses for public contracts under its section 55 or by stipulating the insertion of such clauses in public contracts by means of regulations concerning the application of the Act or of forms for tendering. The Committee also points out, under Article 2, paragraph 3, the competent authority is to determine the terms of the labour clauses to be included in public contracts in the manner considered most appropriate to the national conditions, after consultation with the employers' and workers' organizations concerned.

The Committee hopes that the Government will soon be able to ensure the conformity with the provisions of the Convention.