Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

Labour Clauses (Public Contracts) Convention, 1949 (No. 94) - Egypt (Ratification: 1960)

Article 2 of the Convention. Insertion of labour clauses in public contracts. The Committee recalls its previous comment in which it welcomed the issuance of General Circular No. 8 of the Minister of Finance dated 23 June 2008, which adds two new bidding terms to the provisions of the Public Tenders Act No. 89/1998 and its executive decree thus giving effect to the core requirement of the Convention. The Committee notes the Government’s explanations that, in the absence of collective agreements, wages are fixed according to the prevailing custom in each region. It also notes the Government’s statement that, prior to the issuance of the circular, the matter had been discussed within the Tripartite Consultative Committee and that it was only on that basis that the Ministry of Manpower and Migration requested the Ministry of Finance to issue the circular. Moreover, the Committee notes the Government’s indication that all additional steps to ensure the effective implementation of the Convention, particularly as regards the posting of notices with a view to informing the workers of the conditions applicable to them (Article 4) and adequate sanctions such as the withholding of contracts or the withholding of payments (Article 5), are currently under consideration. The Committee hopes that the Government will make every effort to take all appropriate action in the very near future to ensure the effective application of the Convention in practice. It also hopes that the Ministry of Manpower and Migration will give the necessary instructions so that the two new bidding terms set out in General Circular No. 8 of 2008 are incorporated as standard clauses into all future public procurement contracts (whether for construction works, supply of goods or performance of services) concluded between public authorities and private contractors.