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

Employment Policy Convention, 1964 (No. 122) - Uruguay (Ratification: 1977)

Articles 1 and 2 of the Convention. Implementation of an employment policy within the framework of a coordinated economic and social policy. In reply to the observation of 2009, the Government described in its report received in September 2010 the interrelationship between active and passive labour market measures. The Committee notes that the Unemployment Insurance Act was amended to approve the payment of a special benefit to people over 50 years of age who faced major difficulties in finding employment. For specific sectors particularly affected by the crisis in the leather, textiles, clothing, wood and metallurgical industries, a system of special subsidies for partial unemployment was set up. Moreover, the Committee notes that employment protection measures were adopted for training and reclassifying workers in the most vulnerable sectors by means of the “Objective Employment” and “Uruguay Studies” programmes. The Committee notes that during 2009, despite the effects of the crisis, the economy maintained a positive growth rate (2.9 per cent) supported by increases in consumption, public investment and external demand. The most dynamic sectors were transport, storage and communications, while the industry in general contracted significantly as a result of the decrease in exports. In 2009 the activity rate stood at 63.2 per cent and the unemployment rate fell from 7.3 per cent in 2009 to 6.8 per cent in 2010. The Committee notes that the strengthening of the network of public job centres (CEPES) continued and that 24 such centres were operational by May 2010. The Committee refers to its previous observation and requests the Government to indicate in its next report what progress was made in achieving the goals of tackling poverty, reducing social inequalities and ensuring sustainable development, as indicated in the Decent Work Country Programme (DWCP) adopted in February 2007. The Committee requests the Government to include information on the results of the active and passive labour market measures referred to in the present observation and the manner in which they have contributed towards achieving full, productive and high-quality employment. The Committee also requests the Government to provide data disaggregated by categories of workers who face major difficulties in finding lasting employment, such as women in the rural sector, young people and older unemployed workers.

Strengthening and coordination of institutions. The Government indicates that the “National Employment Directorate–National Employment Board” system was reorganized in the context of the DWCP and draws attention to the setting up of the National Employment and Vocational Training Institute (INEFOP) in October 2008. In the 2010 General Survey on employment instruments, the Committee observed the setting up of INEFOP (2010 General Survey, para. 144). The Committee recalls the importance of linking measures adopted in the context of employment and vocational training policy with general development policies, especially those promoting industry. The Committee requests the Government to include information in its next report on mechanisms established to facilitate the necessary coordination of employment and education policies with economic and social development policies adopted by various ministerial bodies.

Workers in the informal economy. The Government states that the informal employment sector has decreased markedly, due to a set of measures adopted to that end. The Committee notes with interest that a negotiating group for the domestic service sector was formed in the Wage Council and initiatives were taken by the Social Security Bank (BPS) to reduce the lack of social security registrations, which increased the number of contributors. Moreover, steps were taken to facilitate the formalization of the smallest enterprises, the tax system and exports of products manufactured by micro-enterprises. According to the National Institute of Statistics, the informal employment rate reached 32.9 per cent in 2008, mostly affecting the interior of the country, where there was also a greater disparity between the rates for men and women than in urban areas. The Committee invites the Government to continue to supply information on the integration of workers from the informal economy into the formal economy and on the impact of support measures on the establishment and consolidation of micro- and small enterprises.

Cooperatives. The Committee notes that by Decree No. 558/009 of 9 December 2009 the Government regulated the functioning of the National Cooperative Institute (INACOOP), whose tasks include coordination of the formulation, linkage and execution of the programmes constituting the National Cooperative Development Plan, promotion of the cooperative sector and formulation of training programmes for capacity building in cooperative management. The Committee invites the Government to supply further information in its next report on the progress made by INACOOP in promoting labour cooperatives and social cooperatives.

Education and vocational training. The Government supplied information on the “Uruguay Studies” programme aimed at enhancing competencies, knowledge and skills linked to innovative projects and to the demands from the public, private and social sectors. Grants, internships and credit lines have been established for persons wishing to develop productive business ventures further to completion of their training. The Committee invites the Government to include information in its next report on the impact of the adopted measures and the other initiatives aimed at training employed workers, the recently unemployed and the long-term unemployed.

Article 3. Participation of the social partners in the formulation of employment and vocational training policies. The Government highlights in its report the tripartite operation of INEFOP, which strengthens the possibilities of formulating and implementing vocational training programmes in the country. The Government also mentions that in November 2009, under the national agreement concerning employment in the construction industry, activities were undertaken with social partners from Argentina to train workers in the sector. The Committee requests the Government to include more detailed information in its next report on the manner in which the social partners participate in the formulation and implementation of active employment and vocational training policies, including data on activities undertaken by the INEFOP tripartite committees on employment and vocational training at departmental and sectoral levels and with other countries in the region.