Direct Request (CEACR) - adopted 1998, published 87th ILC session (1999)

Employment Policy Convention, 1964 (No. 122) - Panama (Ratification: 1970)

1. The Committee notes the Government's detailed report for the period March 1995 to February 1998. The Government states that it has not formulated a specific employment policy of the type referred to in Articles 1 and 2 of the Convention. In describing its strategy with regard to social policy, the Government refers to: the strengthening of market elements aimed at creating sustained and broadly based growth; the development of activities aimed at improving the efficiency of social expenditure in order to improve the quality of the social services provided by the State; the concentration of social expenditure and investment on the groups most in need of it; and improved coordination of social policies and collaboration between the Government and civil institutions (Cabinet Resolution No. 222 of 19 September 1997 concerning social development with economic efficiency). The Committee would be grateful if the Government in its future reports would continue to provide copies of the documents used to formulate employment policy. According to the Convention, employment policy must be pursued as a major goal, an active policy designed to promote full, productive and freely chosen employment. To that end, the methods used in pursuance of the employment policy must be part of a coordinated economic and social policy in such a way that the impact on employment of other measures adopted to promote economic development must be taken into consideration (Articles 1 and 2). In this regard, the Committee would be grateful if the Government in its next report would also indicate whether its main employment policy measures -- for example, measures aimed at promoting employment as part of a programme of public policies, investment policy, fiscal policy -- have been subjected to regular review and coordinated with other economic and social policy measures.

2. The Committee notes that according to the preliminary results of the survey shown in the Government's report, the unemployment rate for August 1997 was 13.2 per cent following a period of gradual decline (from 14.3 per cent in August 1996). The Government states that as the economic reforms continue to produce benefits, the economy will become more dynamic and the expansion of employment will have a positive impact on the reduction of open unemployment. In this context, the Committee trusts that the difficulties experienced by certain categories of workers in finding stable employment will be taken into account (for example, women, young people, older workers, the long-term unemployed, migrant workers and workers affected by restructuring). The Government is asked to provide information in its next report on the situation in the labour market for the above-mentioned categories. At the same time, it is asked to continue to provide information on the results of current or future programmes of the Ministry of Labour and Social Development.

3. The Committee notes Legislative Decree No. 4 of 1997 concerning the dual vocational training system, the purpose of which is to set up training initiatives for occupations of importance to national development. It also notes with interest the training activities of the National Institute of Vocational Training (INAFORP) and the efforts to coordinate teaching and training policies with a view to improving employment opportunities. The Government is asked to indicate in its future reports if there have been any difficulties in achieving the objectives set out in the Ten-year strategy for the modernization of education in Panama (1997-2006). It is also asked to indicate the results achieved, in terms of integration of the beneficiaries in employment, by the following programmes: the System of training and employment based on market requirements; the System of demand-oriented training and employment; the Programme of labour training (implemented in collaboration with the Inter-American Development Bank); and the School for enterprises (implemented by the Ministry of Labour with the help of the Andalusia Assembly). The Committee again draws the Government's attention to the Human Resources Development Convention, 1975 (No. 142), and Recommendation (No. 150) which contain suitable provisions and guidelines concerning the formulation and application of employment policy measures to allow all workers to acquire the necessary training needed for their chosen employment and to make use of their training and aptitudes in their employment (see also the Committee's General Survey of 1991).

4. The Committee notes the employment possibilities opened up by the development of multisectoral export processing zones. Recalling its concern for the application of Conventions by undertakings in export processing zones, the Committee trusts that the Government will, if it considers it appropriate, have recourse to the experience acquired in the field by the competent services of the ILO and that its next report will continue to include information on conditions for the creation of productive and lasting employment in multisectoral export zones.

5. In reply to earlier comments, the Government states that consultation and dialogue with the country's productive sectors constitute the principle means for ensuring that the possible impact on employment of these measures is taken into account. It has provided documentation on the activities of the Labour Foundation which include the creation on a bipartite basis of an electronic labour exchange and the launch of vocational and technical training programmes. The Committee would be grateful if the Government would continue to provide information on its consultations on employment policy with representatives of employers' and workers' organizations. The Government is also asked to furnish information on consultations undertaken by the Government with representatives of other sectors of the economically active population such as those working in the rural sector and the informal sector and to provide information on any other progress that may have been made with regard to consultations as required under the terms of Article 3 of the Convention.