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

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

1. The Committee took note of the Government's report relating to the period ending September 1997 which was supplied in reply to the Committee's previous observation. The Committee also notes a communication from the Trade Union of Civil Construction Workers of Lima and Balnearios on application of the Convention.

2. The Government states that in a context characterized by strong economic growth since 1993 and remarkable progress in the fight against inflation, the evolution of the labour market has been relatively favourable. It states, on the basis of statistics relating to the Lima metropolitan area, that there is a slight reduction in unemployment and underemployment rates as well as significant growth in suitable employment as a share of total employment. It indicates, furthermore, that real wage increases over the period are an indication of a more general improvement in the employment situation. The Government considers, however, that because of the extent and structural nature of labour market problems, a large proportion of the active population will continue to be engaged in the informal sector. In this regard, the Committee notes that national surveys on employment have been carried out since 1996 for the purpose of collecting the necessary information on the situation of employment, underemployment and unemployment in the country. It would be grateful if the Government would supply in its next report the data collected through these surveys and continue to supply information on any new measures taken with a view to improving knowledge of labour market trends. The Committee also requests the Government to supply more detailed information on the manner in which the measures taken concerning general economic policy contribute to promoting productive and freely chosen employment and are decided on and kept under review "in the framework of a coordinated economic and social policy", in accordance with Articles 1 and 2 of the Convention.

3. The Committee notes the information on the implementation of various labour market policy programmes supplied at its request. Noting particularly the importance of the Programme for the Promotion of Self-employment and Micro-enterprises (PRODAME), it requests the Government to continue to supply full information on the programmes implemented and their results. The Committee recalls, furthermore, that subsequent to the recommendations approved by the Governing Body at its 267th Session (November 1996) in regard to its tripartite examination of representations alleging non-observance of the Convention, it also requested the Government to provide full information on any available surveys on the results obtained by the youth training agreements and any measures taken or envisaged to ensure that the application of the legislative provisions with respect to employment contracts subject to special conditions, the promotion of self-employment and special enterprises contribute effectively to the creation of new jobs. In regard to measures for the integration of young people, the Committee notes the detailed statistics on the number and duration of vocational training agreements and pre-work traineeships concluded. It recalls, nevertheless, the concern expressed by the Governing Body Tripartite Committee regarding the considerable extension of the possibilities of working under youth vocational training agreements by raising the age limit to 25 years, extending its maximum duration to 36 months and raising the maximum number authorized by the enterprise to 30 per cent. The Committee hopes that the Government will take advantage of its good statistical information on the use of such contracts to proceed, as suggested in paragraph 17 of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169), by careful monitoring "to ensure that they result in beneficial effects on young people's employment" and that it is consistent "with the conditions of employment established under national law and practice". The Committee emphasizes that it is the Government's responsibility to ensure that this training arrangement does not lose sight of its objective to insert, in an effective and lasting way, those trained into suitable employment, and requests the Government to describe the measures taken to this effect. Similarly, the Committee notes the statistical data regarding employment contracts subject to special conditions, but regrets that the Government does not provide the information requested on the measures taken or envisaged to ensure that the application of the provisions concerning these contracts and enterprises contributes effectively to the creation of new jobs rather than to the redistribution, on less secure conditions, of existing jobs.

4. More generally, the Committee notes, following the Governing Body, that the Government has made adjustments to the labour legislation a vital component of its employment policy. It notes that, according to the Trade Union of Civil Construction Workers of Lima and Balnearios, the systematic "flexibilization" of labour law carried out since the adoption of the 1991 Promotion of Employment Act has had a major effect of increasing insecurity and jeopardizing the rights of workers without leading to the creation of new jobs. In this matter, the Committee recalls that under the Convention the employment policy shall take due account of "the mutual relationships between employment objectives and other economic and social objectives", and that a labour policy in keeping with the Convention should not result in jeopardizing, directly or indirectly, the rights protected by other international labour Conventions. It trusts that, with this in mind, the Government will take care to ensure an equitable distribution of the costs and social advantages of the reform under way among all the persons affected.

5. Article 3. The Government indicates that it has supplied the information requested on the consultations held to give effect to this provision of the Convention in its report on the application of the Employment Service Convention, 1948 (No. 88). As the Committee notes in its observation on that Convention, however, the Government has made no progress in establishing the advisory committees to the public employment service. In addition, the Committee recalls that the application of the provisions of Convention No. 88 providing for the cooperation of representatives of employers and workers in the organization and operation of the employment service and in the development of employment service policy does not itself give effect to the provisions of this Article of Convention No. 122, which provides that representatives of the persons affected by the measures shall be consulted concerning all employment policies, not only the public employment service policy. In the Committee's view, the absence of any consultation of the social partners on employment policies is of particular concern at a time when the Government is implementing wide-ranging reforms of labour law for the stated aim of promoting employment. In this respect, the Committee believes that the Government should consider establishing broad social dialogue as the necessary prerequisite for the success of its policy. The Committee is bound to emphasize once again the particular relevance of this provision which requires that representatives of all the persons affected should be consulted on employment policies "with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support for such policies". The Committee trusts that the Government will take the necessary measures to this effect without delay and that it will find proof of real progress in the next report.

6. Finally, the Committee was informed of the activities of ILO advice and technical cooperation in the field of promotion of employment. It would be grateful if the Government would supply information on the manner in which it feels these activities can contribute to better application of the Convention (Part V of the report form).