Observation (CEACR) - adopted 1995, published 82nd ILC session (1995)

Employment Policy Convention, 1964 (No. 122) - Brazil (Ratification: 1969)

1. The Committee notes the Government's report for the period 1993-94, received in October 1994. The Government describes the situation of the labour market, referring to macroeconomic aspects, employment and salaries. It also refers to the active measures envisaged or adopted in particular within the National Employment System (SINE) and to the various methods used to obtain data concerning employment. In 1993, inflation reached 2,489 per cent which did not prevent the GDP from increasing by 4.96 per cent. In 1994, the GDP growth was maintained but inflation fell substantially and was between 25 and 30 per cent per annum for 1994-95. The Government indicates that despite the increase in the GDP (in 1993) the labour market did not give signs of a clear and real recovery. In accordance with the data of the General Survey of Employed and Unemployed (Act No. 4923/65), generation of employment reached a relatively insignificant figure. The Government puts forward two hypotheses to explain what it calls a discrepancy between economic growth and job generation: the first is that new technologies were incorporated in the industrial process - which would entail growth without employment similar to that in some European countries. In the Government's view, this hypothesis should be rejected since economic recession and uncertainty have undoubtedly inhibited substantial investment in new technologies by enterprises. The second hypothesis would explain the lack of job creation by the attitude of enterprises in the face of economic uncertainty; they have preferred to achieve increased production by resorting to overtime without incurring new investment or the adoption of new technologies.

2. The Committee also notes the indications given by the Multidisciplinary Technical Team of the Office which has examined in general the effect of trade liberalization on the labour market in Brazil. Its technical analysis suggests that in the face of international competition Brazilian firms have reacted by abolishing jobs in order to reduce costs, producing a loss of quality jobs yet still achieving relative increases in productivity. This can be deduced from the drop in the number of employees with carteira assinada (those who have a permanent work contract and enjoy social security cover) and the relative increase in workers without carteira assinada and in other insecure employment, and having lost their jobs and exhausted their rights to unemployment benefits.

3. The Committee observes that the data available (which are referred to by the Government in its report) are restricted to the large metropolitan areas of the country (Belo Horizonte, Porto Alegre, Recife, Río de Janeiro, Sao Paulo) and do not include information allowing examination of the situation, level and trends in employment, unemployment and underemployment in the whole of Brazil, nor the extent to which particular categories of workers (such as women, young people, indigenous people) are affected. The Committee is bound to note that as an essential stage in adopting measures on employment policy, statistical and other types of other information must be gathered and analysed as well as that on the size and distribution of the labour force, the nature and extent of unemployment and trends in that matter (first question on the report form for Article 2 of the Convention).

4. The Committee notes the information on the objectives and application of active employment policies designed to promote employment through small businesses and micro-businesses, cooperatives and informal sector activities. It notes that there are plans to carry out restructuring of the National Employment System (SINE) which would allow interaction between the programme for employment security and the activities of the manpower agencies and occupational guidance services. In this context, the Committee notes with interest that ratification has been registered of Convention No. 168 concerning Employment Promotion and Protection Against Unemployment, 1988, for which the first report will be examined at its next meeting. The Committee would be grateful if the Government would continue to supply indications allowing it to assess the impact of the measures adopted, for example in the SINE framework, designed to harmonize labour supply and demand with the structural changes resulting from changes in international trade and the introduction of new technologies.

5. The Committee considers it appropriate to repeat its understanding of the pressures which continue to affect the Government's options in economic policy. It stresses once again its interest in being able to examine a report from the Government containing information on the way in which active measures are adopted to alleviate the adverse effects on employment of the economic policy measures affecting broad sectors and underprivileged regions of the population and the country. It would be very grateful if the Government would indicate in its next report the links which have been established between the aims of the economic policy and the objectives of an active policy designed to promote the objectives of full, productive and freely chosen employment within the meaning of the Convention. The information, along with that required in the report form for the Convention (second question on Article 2), would enable the Committee to appreciate better the efforts made and the results achieved by the Government towards attaining effective application of the Convention.

6. The Committee notes that the Government's report contains no information on the consultations required under Article 3 of the Convention. In a context such as the one described, the Committee points out that consultations with representatives of the persons affected are of great importance with a view to taking fully into account their experience and views and securing their full cooperation in formulating and executing an active employment policy within the meaning of the Convention. Consultations should be held with the representatives of the persons affected and, in particular, representatives of employers' and workers' organizations. The Committee again recalls that in view of their share in the active population it would be highly appropriate for representatives of workers in the rural sector and the informal sector to be involved in consultations on employment policy. The Committee trusts that in its next report the Government will supply information on the effect given to this fundamental provision of the Convention.

7. The Committee notes the observations made by the Unique Workers' Central (CUT) of Paraná on the dismissal about 4,000 Brazilian and Paraguayan workers by the Itaipú Binational Body. For its part, the Government sent a communication on the evolution of the labour force involved in the construction of the Itaipú hydroelectric dam, Brazil-Paraguay Binational Body. The data sent shows a gradual reduction in the number of workers employed by the Binational Company. It is recognized that unemployment is a general macroeconomic problem which cannot be solved by the Binational Body. The Committee would be grateful if the Government would supply in its next report more details on the financial advantages and conditions for social integration offered by the incentives programme for those who agree to leave their jobs (demissao voluntaria incentivada, which the Government mentions in its communications). The Government might also refer to Convention No. 158 of 1982 concerning termination of employment of which ratification was registered in January 1995.

8. Please indicate also in the next report, the action taken as a consequence of the assistance or counselling received from the Multidisciplinary Technical Team or other ILO services to promote activities connected with employment policy (Part V of the report form).