Direct Request (CEACR) - adopted 2007, published 97th ILC session (2008)

Minimum Wage Fixing Convention, 1970 (No. 131) - Bosnia and Herzegovina (Ratification: 1993)

The Committee welcomes the first report presented by the Government on the application of the Convention since the formal declaration dated 12 April 1993 by which it accepted to continue to be bound by all ILO Conventions previously ratified by former Yugoslavia. The Committee would appreciate receiving additional information on the following points.

Article 1 of the Convention. Scope of application. Federation of Bosnia and Herzegovina (BiH) and Republika Srpska. The Committee notes that section 69 of the Labour Law of the Federation BiH and section 84 of the Labour Law of the Republika Srpska provide in almost identical terms that minimum wages are regulated by collective agreements. The Committee also notes the Government’s reference to General Collective Agreements concluded in both entities. The Committee requests the Government to indicate whether there are any sectors or branches of economic activity in the Federation BiH or in Republika Srpska which are not covered by collective agreements. It also asks the Government to transmit copies of the General Collective Agreements currently applicable in each of the two entities.

Article 2, paragraph 1. Binding force of minimum wages. Federation of Bosnia and Herzegovina. The Committee notes that section 140 of the Labour Law provides for a fine of between KM1,000 (approximately US$674) and KM10,000 (approximately US$6,700) to be imposed for the payment of salary lower than the amount determined in the applicable collective agreement or the rulebook. It also notes, however, the Government’s statement according to which even though the minimum hourly wage is currently set at KM1.75 (approximately US$1.18), sectoral collective agreements may – in exceptional cases – fix pay rates lower than the minimum hourly wage, but in any case not lower than KM1.24 (approximately US$0.84). The Committee requests the Government to clarify the scope of such exceptional cases and explain how such practice can be reconciled with the principle that, once fixed, the minimum wage has the force of law and may not be subject to abatement. It also requests the Government to specify and supply the text of any collective agreement(s) in force providing for sub-minimum hourly rates.

Article 3. Periodic adjustment of minimum wages. Federation of Bosnia and Herzegovina and Republika Srpska. The Committee notes the information provided by the Government that under section 9 of the General Collective Agreement of the Federation BiH, the increment of living expenses, the growth of retail prices, and the overall economic progress must be taken into account in determining the minimum hourly wage. Similarly, under section 31 of the General Collective Agreement of the Republika Srpska, the elements to be used as a basis for fixing the minimum wage include among others the production growth, living standards, and the basic needs of the worker and his/her family. The Committee asks the Government to explain in greater detail how these various criteria are applied in practice, for instance by carrying out periodic reviews of national economic conditions, collecting statistics, etc.

Brcko District. The Committee would appreciate if the Government would provide more detailed information as to the frequency and method of revising minimum pay rates under the current minimum wage legislation.

Article 4. Minimum wage-fixing machinery. Federation of Bosnia and Herzegovina. The Committee notes the Government’s indication that the General Collective Agreement of the Federation BiH provides for regular adjustment of the minimum hourly wage at least once a year by government decision based on the recommendation of the Economic-Social Council while an ad hoc adjustment becomes obligatory when the living expenses index increases by 5 per cent over a period of three months. While noting that section 130 of the Labour Law summarily provides for the tripartite composition and main aims of the Economic-Social Council, the Committee requests the Government to describe how it is ensured in practice the full consultation with, and the equitable representation of employers’ and workers’ organizations within the framework of the Economic-Social Council. It also requests the Government to forward a copy of the rules regulating the Council’s membership and competence.

Republika Srpska. The Committee notes the Government’s indication that according to section 31(1) of the General Collective Agreement, the parties to the agreement determine in the last quarter of each year the minimum wage of the following year. The Government adds that the minimum wage for 2006 was fixed at KM205 (approximately US$137) per month. The Committee also notes that section 140 of the Labour Law provides for the establishment of an Economic-Social Council, a tripartite consultative body composed of three Government members, three employers’ and three workers’ representatives. The Committee requests the Government to clarify whether the Economic-Social Council plays any role in the determination and periodic adjustment of the minimum wage. It would also be grateful if the Government would provide a copy of the rules setting out the Council’s mandate and functions.

Brcko District. The Committee notes that under section 57 of the Labour Law of the Brcko District, employees’ salaries are to be determined in collective agreements and rulebooks. It also notes, however, the Government’s statement that general collective agreements are not concluded in practice and that accordingly no minimum wage is fixed. The Government adds that by decision of the Assembly, the basic salary for the calculation of the obligatory social security contributions is fixed at KM300 (approximately US$201) per month which indirectly serves to define and protect some minimum wage level. The Committee requests the Government to provide additional information on the operation of the minimum wage system in the Brcko District.

Article 5. Inspection. Federation of Bosnia and Herzegovina and Republika Srpska. The Committee notes that according to section 42 of the General Collective Agreement of the Federation BiH, the supervision of the implementation of the agreement is entrusted to federal and/or cantonal labour inspectors. It also notes that under section 33 of the Law of the Federation BiH on labour inspections and section 14 of the Law of the Republika Srpska on labour inspections, inspectors are responsible for the enforcement of the laws and regulations concerning the calculation and payment of wages. The Committee would be grateful if the Government would provide full particulars on the organization of the inspection services both in law and practice and transmit copies of the two enactments mentioned above.

Brcko District. The Committee asks the Government to provide documented information on the system of labour inspection or other enforcement measures ensuring the effective application of the legislation relating to minimum wages.

Part V of the report form. The Committee notes the Government’s general indication that according to the information communicated by the inspection authorities there are cases of violation of the Convention. The Committee would appreciate if the Government would provide in its next report up to date information on the practical application of the Convention in the three entities, including, for instance, the approximate number of workers covered by the minimum wage legislation, or remunerated at the minimum wage rate; the minimum wage rates in force; labour inspection results showing the number of inspection visits conducted, violations reported and sanctions imposed; statistics on the evolution of minimum wage rates in recent years as compared to the evolution of economic indicators, such as inflation, in the same period; copies of official documents, such as annual reports of the Economic-Social Council of both the Federation of Bosnia and Herzegovina and of the Republika Srpska, related to the operation of the minimum wage system, etc.