Observation (CEACR) - adopted 2002, published 91st ILC session (2003)

Protection of Wages Convention, 1949 (No. 95) - Argentina (Ratification: 1956)

With reference to its observation, the Committee notes the information supplied by the Government.

I.  Deferred payment of wages

1. The Committee recalls that in its previous comments it referred to non-compliance with Article 12(1) of the Convention which provides that wages must be paid at regular intervals. It pointed out in particular that in some provinces regular payment of the wages of public employees was subject to considerable delay. It took note of the efforts made by the Government to remedy the situation.

2. The Committee notes that, according to the most recent information sent by the Government, the country is undergoing a serious economic and financial crisis, reflected in the lack of external and internal credit, paralysis of banking activity and growth in unemployment. It also notes that to tackle the consequences of the crisis, one of which is payment of wages in instalments, a "Crisis Prevention Procedure" has been implemented which involves compulsory registration of enterprises intending to reduce or suspend staff. The aim of the procedure is to bring to light the real situation of enterprises and to embark on a dialogue with the unions with the Government taking part. According to the Government, complaints of delayed wage payments have been filed by unions in the aeronautical and transport sectors and public employees’ associations in the provinces. The Government indicates that as well as inspections, other ways and means have been sought to secure proper payment of wages by enterprises. They include the signing of agreements with passenger transport companies granting enterprises a special price for fuel provided they ensure job stability; the adoption of a decree extending deadlines for the payment of taxes by small and medium-sized enterprises if they buy inputs essential to production; the creation of a "universal subsidy" for heads of households (men and women) subject to prior registration of the employer in the programme, and of a wage subsidy or supplement to be borne by the employer in order to make up the wage fixed in the corresponding sectoral agreement.

3. The Committee is aware of the grave problems caused by the current economic and financial crisis in the country, which is causing many workers and their families severe hardship. In this context, the Committee notes of the information supplied by the Government’s report on initiatives to protect the wages of workers so that they can receive their wages at regular intervals. The Committee urges the Government to continue taking measures of this type and to provide information on any developments in the situation in its next report.

II.  Payment of wages in the form of legal tender issued locally

4. In the information sent to the Office, the Government expresses its concern that workers’ wages are being paid in the form of local legal tender which is valid only in the province issuing it. The Government indicates that the vouchers are to be withdrawn from circulation, in accordance with agreements concluded between the nation and the provinces, once agreements with the international credit institutions have been concluded.

5. The Committee hopes that in the very near future the economic and financial situation will make it possible for the Government to take the necessary steps to ensure that workers in provinces where wages are paid with local legal tender receive their wages in legal tender and not in substitutes therefor, thereby ensuring that full effect is given to Article 3, paragraph 1, of the Convention.

III.  Benefits to improve the nutrition of workers and their families

6. The Committee recalls that in its previous comments it referred to the problem of benefits granted to workers to improve their nutrition and that of their families. Since the Government does not refer to the matter in the latest information sent to the Office, the Committee is bound to request the Government to provide detailed information on this matter in the light of the comments it made in 2001, including information on whether employers pay social contributions in respect of these benefits.