Observation (CEACR) - adopted 1997, published 86th ILC session (1998)

Right to Organise and Collective Bargaining Convention, 1949 (No. 98) - Panama (Ratification: 1966)

The Committee notes the report made by the Government. Similarly, it notes the observations made by the Latin American Central of Workers (CLAT) objecting to Decree No. 1, issued in January 1996, which accelerates the procedure for establishing enterprises in export processing zones and Decree No. 2, issued in February 1996, which amends Decree No. 1.

The Committee observes that the CLAT's comments concern the following provisions of Decrees Nos. 1 and 2, issued in 1996, in relation to the Convention:

-- section 2 of Decree No. 2 which provides that agreements relating to working conditions shall be reached in export processing zones, in all cases where such agreements do not affect the profitability of capital and allow fair, rational and acceptable rates of return and profits to be achieved;

-- sections 18, 19, 20, 21, 22, 25 and 26 of Decree No. 1, and sections 3, 4 and 5 of Decree No. 2 which provide for the establishment of a special department competent for disputes in export processing zones, in order to resolve any labour dispute which may arise, and within the above department, the setting up of a tripartite commission, which will be designed solely to reconcile the interests of employers and workers. CLAT criticizes the establishment of an unequal system for the resolution of disputes, based on a procedure extending over too long a period (35 working days) and in which, in the absence of an agreement between the parties, the dispute shall be subject to the arbitration procedure provided for in the Labour Code.

The Committee notes that in its report the Government states that, in relation to the observations made by CLAT, changes have been made to Decrees Nos. 1 and 2 relating to export processing zones by means of Decree No. 3 of 7 January 1997 which makes the following provisions:

(i) Section 9. The phrase which provided that collective agreements or Conventions may be concluded in all cases where such agreements do not affect the profitability of capital and allow fair, rational and acceptable rates of return and profits to be achieved, is repealed from section 2 of Decree No. 2.

(ii) Sections 10, 11, 12, 13, 14 and 15. These provisions amend the provisions of Decrees Nos. 1 and 2 relating to the establishment of a conciliation procedure, in the case of disputes or bargaining, before a tripartite commission; in this manner, if the parties concerned do not reach an agreement following the conciliation procedure, workers may go on strike. Similarly, the possibility of resorting to arbitration without the agreement of the organization concerned, following the procedure before the tripartite commission, is eliminated.

The Committee notes with satisfaction the changes made. Notwithstanding, it wishes to point out that in its opinion an excessively long conciliation procedure, such as that in the present case (35 working days), may be an obstacle to the provision made in Article 4 of the Convention. The Committee requests the Government to take the necessary measures to ensure that the conciliation periods provided for in Decree No. 3, issued in January 1997, are reduced. The Committee requests the Government to provide information in its next report on all measures adopted in this respect.