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

Employment Policy Convention, 1964 (No. 122) - Dominican Republic (Ratification: 2001)

With reference to its previous comments, the Committee notes the information supplied by the Government in the reports received in July and November 2009. Moreover, the Government sent a report containing statistical information relating to the period ending October 2010. In comments sent to the Government in September 2010, the Autonomous Confederation of Workers’ Unions (CASC), the National Confederation of Trade Union Unity (CNUS) and the National Confederation of Dominican Workers (CNTD) state that an employment policy does not exist as such but forms part of other policies formulated and implemented by the Government in the production, fiscal and social spheres.

Articles 1 and 2 of the Convention. Active policy designed to promote full, productive and freely chosen employment. The Government indicates in the report received in November 2009 that the Dominican Republic economy achieved average annual real GDP growth in excess of 6 per cent between 1991 and 2000. A local financial crisis occurred in 2003 as a result of the bankruptcy of three banks. After 2005, growth in GDP was restored until the impact of the global financial crisis made itself felt. The Government also indicates that the rate of employment lagged behind the dynamic growth in GDP. During the
2000–08 period, the average annual growth rate in employment was 2.4 per cent, with the creation of 569,000 new jobs. The Government regrets that most people are occupied in precarious work and have few or no qualifications – some 1.4 million persons consider themselves as non-professional self-employed workers. In addition, in the report received in July 2009, the Government indicated that, by means of Decree No. 340/09 of April 2009, the National Employment Commission (CNE), made up of an inter-governmental technical team, was revived. The trade union organizations mentioned above point out that the CNE has not held any meetings since May 2010. The Committee understands that an Employment Plan 2009–10 is being drawn up. The Committee refers to paragraph 785 of the 2010 General Survey concerning employment instruments, which states that there are three fundamental steps to achieving full, productive and freely chosen employment. The first is to make a political commitment to achieve full employment. The Committee observes that Article 2 of Convention No. 122 states that member States shall establish a clearly defined framework for coordinating economic and social policies. The Committee therefore again requests the Government to indicate the manner in which an active policy designed to promote full, productive and freely chosen employment has been formulated. The Committee hopes that the next report will include up-to-date statistical information on the size and distribution of the labour force and the nature and extent of unemployment as a key component in the implementation of an active employment policy within the meaning of the Convention.

Article 3. Measures for tackling the crisis. Participation of the social partners. In the report received in October 2010, the Government indicates that the global economic crisis had an impact on the economy, with the GDP growth rate decreasing from 5.3 per cent in 2008 to 3.5 per cent in 2009 and the Dominican Republic peso having been devalued by 2.2 per cent. The Government refers briefly to the stimulus measures adopted in the area of taxation. The Committee notes the meetings of the Social and Employment Policy Round Table held in January and February 2009, in the context of the “Summit on national unity in the face of the global economic crisis”. In order to overcome the global financial crisis, the social actors and other parties involved discussed and formulated proposals mainly intended to promote employment, support micro-, small and medium-sized enterprises, promote entrepreneurs and create new enterprises. The Committee underlines the importance of ongoing and genuine tripartite consultations for confronting and alleviating the effects of the global economic crisis (paragraph 788, 2010 General Survey). The Committee again requests the Government to supply detailed information in its next report on the consultations held with respect to formulating and implementing an active employment policy. The Committee also requests the Government to supply information on the consultations held with representatives of the persons affected by the measures to be taken in other sectors of the active population, such as rural workers and workers in the informal economy.

Articles 1(3) and 2. Coordinated economic and social policy. The Committee notes that the State Secretariat for Economics, Planning and Development, with the collaboration of the National Council for State Reform, has drawn up a proposal for the “National Development Strategy 2010–30”. The third component of the strategy proposes an articulated, innovative and sustainable economy which has a productive structure generating substantial sustained growth with decent employment and plays a competitive role in the global economy. One of the general objectives within this third component consists of reorienting the economic structure in such a way as to be more conducive to the creation of decent jobs in sufficient numbers. The Committee requests the Government to supply information in its next report on the manner in which the objective of creating decent work has been reflected in the formulation of economic and social policy. The Committee also requests the Government to indicate the manner in which the National Development Strategy has been coordinated with a national employment plan.

Compilation and use of labour market information. The Committee notes the indication in the Government’s report received in July 2009 that a first edition of the Dominican Republic Labour Overview has been drafted. The report states that an observatory has been set up to monitor the behaviour of general labour market indicators, general characteristics of the economy, population trends and other important aspects such as technical and vocational training and social security for the workforce. The Committee requests the Government to provide information in its next report on the labour market as compiled by the labour market observatory in the Dominican Republic.

Vulnerable groups. The data on the labour market supplied by the Government in the report received in October 2010 indicate that the unemployment rate remained at 14.9 per cent of the population, while still showing a sharper increase for young persons and still remaining higher for women than for men. The Government recognizes that informal occupation remains high, with 57 per cent of people working in the informal economy. The Committee highlights the fact that the specific lines of action of the second component of the National Development Strategy include seeking to raise human and social capital, increasing economic opportunities for people living in poverty, and strengthening the labour training system in order to facilitate access to productive work for persons living in poverty. The Committee hopes that the next report will include information on the measures taken to strengthen programmes designed to facilitate the access of young persons and women to the employment market and on the results achieved through those measures. The Committee requests the Government to report in detail on the situation, level and trends of employment, unemployment and underemployment, indicating the extent to which they affect the most vulnerable sections of the population (women, young persons, persons living in poverty, rural workers and those working in the informal sector).

Migrant workers. The Committee observes that one of the specific objectives of the second component of the National Development Strategy is to restructure and modernize the legal and institutional framework in order to strengthen the system for the management and control of migratory flows, in line with the best international practices and respecting the rights of the migrant population. The Committee requests the Government to provide information on the measures taken in the context of an active employment policy to prevent abuses in the hiring of foreign workers and of those who leave the country to seek employment opportunities abroad.

Coordination of training policies with employment policies. The Committee observes that the National Development Strategy provides for the consolidation of a high-quality higher education system and a system of further training in order to facilitate entry into the employment market, develop entrepreneurial capacities and increase the productivity of the population. The Committee again requests the Government to include detailed information in its next report on the measures taken to coordinate education and vocational training policies with prospective employment opportunities, including a summary of the results achieved by the National Institute of Technical and Vocational Training (INFOTEP).

Small and medium-sized enterprises. The Committee notes the promulgation of Act No. 488-08 of December 2008 establishing a regulatory regime for the development and competitiveness of micro-, small and medium-sized enterprises. The Committee recalls that the 2010 General Survey also underlined the central role played by micro-, small and medium-sized enterprises in reducing poverty through job creation, in accordance with the Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998 (No. 189). The Committee requests the Government to include information in its next report on the impact of Act No. 488-08 on the creation of high-quality employment and the reduction of poverty.