Observation (CEACR) - adopted 2010, published 100th ILC session (2011)

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Venezuela (Bolivarian Republic of) (Ratification: 1944)

The Committee notes the adoption of Decree No. 6.660 of 30 March 2009, raising the level of the minimum wage as from 1 September 2009 to 959.08 bolívars (bolívares fuertes) (approximately US$447), amounting to an increase of 20 per cent, for all workers in urban and rural areas, the private and public sectors, as well as domestic workers, concierges and apprentices. The Committee notes this information with particular interest, especially in light of the Global Jobs Pact, adopted by the International Labour Conference in June 2009 to address the impact of the international financial and economic crisis. Indeed, the Global Jobs Pact calls on governments to consider options such as minimum wages that can reduce poverty and inequity, increase demand and contribute to economic stability (paragraph 23). It also emphasizes that, in order to avoid deflationary wage spirals, minimum wages should be regularly reviewed and adapted (paragraph 12).

Article 3(2) of the Convention. Consultations with employers’ and workers’ organizations. The Committee notes the Government’s reply to the observations made by the Venezuelan Federation of Chambers and Associations of Commerce and Production of Venezuela (FEDECAMARAS) and the Confederation of Workers of Venezuela (CTV). The Committee also takes note of new comments made by FEDECAMARAS and the Independent Trade Union Alliance (ASI), dated 31 August 2010 as well as the Government’s reply dated 19 November 2010. These organizations have indicated, in the same way as the International Organisation of Employers (IOE) in 2007, that the Government was not holding the consultations envisaged by law for the determination of the national minimum wage, namely convening the National Tripartite Commission responsible for making concerted recommendations on the adjustment of the minimum wage, in accordance with section 167 of the Basic Labour Act. The organizations emphasized that they were not able to give their views on the subject as the invitations to the consultations were sent out very late or even after the date of publication of the Decree to increase the minimum wage.

In its replies, the Government indicates that it holds consultations with the social partners concerned at the national, regional and even local levels concerning any comments that they may wish to make and the measures adopted by the Government in relation to the determination of minimum wages. It adds that section 172 of the Basic Labour Act authorizes the executive authorities to determine the amount of the minimum wage, after seeking the views of the most representative employers’ and workers’ organizations and other national bodies, so that they can make known their opinion on the determination of the national minimum wage, which demonstrates the Government’s will to establish, maintain and consolidate fair, inclusive and beneficial social dialogue, without exclusive rights or discrimination of any type based on former positions related to power or favouritism.

The Committee wishes to emphasize once again the fundamental importance of the consultation procedure under the Convention and recalls that, while each government may determine by national law or regulations the manner of consultation, such consultations must nevertheless be held prior to the adoption of decisions and they have to be effective, that is to say that they need to allow employers’ and workers’ organizations to be able to give their views in a useful manner on the matters under consultation, in this case minimum wages. The Committee also recalls, as indicated in paragraph 241 of its 1992 General Survey on minimum wages, that the participation of employers and workers, their organizations and representatives, must be direct, including the possibility that the parties concerned form part of the relevant bodies and that their participation is effective, that is to say that the opinions reached by the parties concerned should be duly taken into consideration, and that the participation should take place on an equal footing. While noting the efforts made by the Government to review minimum wage rates regularly, with a view to ensuring workers a satisfactory standard of living, the Committee requests the Government to provide detailed information on the exact procedures for consultation with employers’ and workers’ organizations for the fixing of the minimum wage and on the functioning of the National Tripartite Commission responsible for making recommendations on the adjustment of the minimum wage.

Finally, the Committee once again draws the Government’s attention to the decision by the ILO Governing Body to classify Convention No. 26 among those instruments which may no longer be fully up to date but which nevertheless remain relevant in certain respects (document GB.283/LILS/WP/PRS/1/2, paragraphs 19 and 40). The Committee therefore suggests that the Government might consider the possibility of ratifying the Minimum Wage Fixing Convention, 1970 (No. 131), which marks a certain progress in relation to older instruments on minimum wage fixing, for instance in terms of its broader scope of application, the requirement for a comprehensive minimum wage system and the obligation to determine criteria for fixing and adjusting minimum wage rates. The Committee requests the Government to keep the Office informed of any decision adopted or envisaged in this respect.