Observation (CEACR) - adopted 2009, published 99th ILC session (2010)

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Argentina (Ratification: 1950)

Article 3 of the Convention. Minimum wage fixing machinery. The Committee notes the Government’s detailed replies to the comments made by the Confederation of Argentinean Workers (CTA), dated 4 July 2008 and 21 October 2009, as well as the documentation attached to its report. It also notes the comments made by the CTA dated 31 August 2008 which mainly repeat those sent in August 2007.

With regard to the operation of the National Council for Employment, Productivity and the Minimum Adjustable Wage (CNEPySMVM), the CTA previously indicated that the Council, which meets only on the initiative of the Government, had dwindled in importance as a forum for social dialogue for defining the priorities and steps to be taken with regard to wage policy. The Committee notes the Government’s indication that section 2 of Resolution No. 617 of the Ministry of Labour, Employment and Social Security, of 2 September 2004, authorizes the social partners to convene the Council on the proposal of at least 14 advisers, including eight members from the sector requesting that the Council be convened and six members from the other sector. However, according to the Government, this option has not been used to date. It also notes Resolution No. 1/2009 of 22 July 2009, under which the Council was convened for a plenary session, and Resolution No. 642/2009 of 27 July 2009 appointing the employers’ and workers’ representatives for that session.

With regard to the determination of the basic shopping basket (canasta básica total), the CTA previously commented that, because of the way in which the Council operates, it was not possible to determine the basic basket to serve as a reference for setting the amount of the minimum wage. The Government indicates that this matter was presented to the Council’s productivity committee in 2004, but no agreement was reached with the employer sector. The Committee notes the information provided by the Government that the current minimum wage for the first time covers nearly 100 per cent of the amount of the basic shopping basket (compared to only 80 per cent in 2005 and 43 per cent in 2001).

Furthermore, the CTA asserted that government policy on wages only benefited workers in the formal economy, who account for only 57.2 per cent of employees. In this regard, the Government indicates that the Ministry of Labour, Employment and Social Security is making considerable efforts to combat informal labour, particularly with regard to domestic workers, by launching the “declared labour” (Trabajo en Blanco) campaign in order to increase the percentage of domestic workers declared by their employer and benefiting from social protection and a minimum wage. The Government adds that in 2004 the Council attempted to reach a consensus on this matter, but without success.

Finally, with regard to the method for determining the minimum adjustable wage (SMVM), the CTA previously indicated that, because of shortcomings in the Council’s procedures, there were no objective rules to determine the amount of the minimum wage, the wage policy agreed between the social partners was not implemented, and the amount of the minimum wage was fixed at the discretion of the Government. The Government indicates that, since the Council was convened in August 2004, the readjustment of the minimum adjustable wage has been discussed within the committee on the minimum adjustable wage and employment benefits on four occasions between 2004 and 2007. Following these meetings, the plenary adopted the decisions proposed by a two-thirds majority in accordance with the provisions of the regulations on the operation of the Council. The Committee also notes Resolution No. 2/2009 of 30 July 2009 adjusting the minimum wage, which currently stands at 1,440 pesos per month (approximately US$378). Finally, it notes that on 1 January 2010 the minimum wage will be increased to 1,500 pesos per month (approximately US$393). The Committee notes with interest the major developments and progress made in recent years with regard to the operation of the system for determining the minimum wage and the regular readjustment of its rate. It hopes that the Government will continue its efforts in this regard in full and constant consultation with the social partners and requests it to provide information in its next reports on any relevant developments. The Committee would also be grateful if the Government would provide copies of collective agreements determining the minimum wage rate by sector or branch of the economy, copies of studies or other official documents, such as activity reports of the CNEPySMVM, on the operation of the minimum wage system and, in particular, extracts from the reports of the inspection services indicating the violations reported and penalties imposed with regard to the payment of the minimum wage rate in force.

Furthermore, the Committee takes this opportunity to draw the Government’s attention to the conclusions adopted by the ILO Governing Body on the basis of the recommendations of the Working Party on Policy regarding the Revision of Standards (document GB.283/LILS/WP/PRS/1/2, paragraphs 19 and 40). The Governing Body considered that Convention No. 26 was among those instruments which were no longer fully up to date, even if it remains relevant in certain respects. The Committee therefore suggests that the Government should consider the possibility of ratifying the Minimum Wage Fixing Convention, 1970 (No. 131), which marks certain advances compared to older instruments on minimum wage fixing by providing, for example, a broader scope of application, the introduction of a generalized minimum wage system and, finally, the adoption of criteria for determining minimum wage levels. The ratification of Convention No. 131 would be all the more appropriate given that the legislation of Argentina actually establishes a comprehensive minimum wage system and appears to be in conformity with the requirements of that Convention. The Committee requests the Government to keep the Office informed of any decisions taken or envisaged on this matter.