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

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Dominica (Ratification: 1983)

Article 3(2)(2) of the Convention. Consultations with social partners and periodic adjustment of the minimum wage. The Committee notes the adoption of the Labour Standards (Minimum Wage) Order, 2008, which raised the minimum wage for the first time since 1989. The new rates, effective as from 1 June 2008, are in fact recommendations made by an advisory board in 1998 which had never been implemented. Under the new rates, agricultural and other unskilled workers’ minimum wage increased from US$2.20 to $4 per hour, that of factory and tourism workers increased from $2 to $4.50 per hour while the minimum weekly wage for home assistants (without meals) was set at $143.75.

The Committee further notes that the Government intends to review again these rates considering that they do not reflect the present reality of cost of living and therefore fall short of providing a decent minimum wage for persons in the most vulnerable occupational categories in society. To this effect, the Government, by Cabinet Decision No. 1073 of 7 November 2008, has appointed a Minimum Wage Advisory Board (MWAB), comprising representatives of the Ministries of Finance and Agriculture as well as three employer and three worker members. The Government has instructed the MWAB to obtain information from all stakeholders and comparative data from within the Caribbean Community (CARICOM) in arriving at a further upward review of the minimum wage and has expressed the hope that the categories of workers covered could be more clearly defined and expanded to include other forms of employment.

The Committee notes with interest these positive developments and trusts that the Government will complete shortly, in consultation with the social partners, the review and adjustment process of the minimum wage. In this respect, the Committee recalls its 2009 general observation in which reference was made to the Global Jobs Pact, adopted by the International Labour Conference in June 2009 in response to the global economic crisis, which places particular emphasis on the need to strengthen respect for international labour standards and expressly identifies wages-related ILO instruments as being relevant in order to prevent a downward spiral in labour conditions and build recovery (paragraph 14). It further suggests that governments should consider options such as minimum wages that can reduce poverty and inequity, increase demand and contribute to economic stability (paragraph 23) and points out that, in order to avoid deflationary wage spirals, minimum wages should be regularly reviewed and adapted (paragraph 12). The Committee therefore requests the Government to continue to provide information on any further developments concerning the work of the MWAB on the readjustment of the minimum wage and to communicate the new minimum wage rates as soon as they are adopted. The Committee would also appreciate receiving a copy of the legal instrument establishing the MWAB and setting out its composition and mandate.

As regards section 6(3) of the Labour Standards Act, No. 2 of 1977, on which the Committee has been commenting for a number of years since it gives only partial effect to the requirements of the Convention with respect to the equal representation of the employers and workers concerned in the operation of the minimum wage system, the Committee notes with regret that no legislative action has as yet been taken to amend this provision. The Committee is bound to recall that the principle of full consultation and direct participation of employers’ and workers’ representatives on an equal footing requires an express legislative provision to ensure its application and that reliance on the observance of practice alone does not constitute a sufficient guarantee against possible contravention of such a principle. The Committee accordingly requests the Government to take appropriate steps without further delay with a view to amending section 6(3) of the Labour Standards Act in order to provide that the participation of employers’ and workers’ representatives must be on equal terms in all circumstances, in accordance with the requirements of the Convention and the practice described by the Government.

Finally, the Committee wishes to draw the Government’s attention to the conclusions of the ILO Governing Body on the continued relevance of the Convention based on the recommendations of the Working Party on Policy regarding the Revision of Standards (GB.283/LILS/WP/PRS/1/2, paragraphs 19 and 40). In fact, the Governing Body has decided that Convention No. 26 is among those instruments which may no longer be fully up to date but remain 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, for instance, as regards its broader scope of application, the requirement for a comprehensive minimum wage system, and the enumeration of the criteria for the determination of minimum wage levels. The Committee requests the Government to keep the Office informed of any decision taken or envisaged in this regard.