Observation (CEACR) - adopted 2015, published 105th ILC session (2016)

Equal Remuneration Convention, 1951 (No. 100) - Panama (Ratification: 1958)

The Committee takes note of the observations of 2 September 2014 by the International Organisation of Employers (IOE) and the National Council on Private Enterprise (CONEP).

Wage gap and occupational segregation. In its previous comments the Committee requested the Government to take concrete steps in the area of education, training and vocational training in order to broaden job opportunities for women and narrow the marked occupational segregation in the labour market and reduce the gender pay gap. The Committee takes note of the information supplied by the Government on the measures for training in non-traditional activities and occupations, such as electricity, crane operating, technology and carpentry. It observes, however, that there is no information on the numbers of persons trained disaggregated by sex. The Committee also notes that in their observations, CONEP and the IOE point out that in wage fixing, account is taken not of the workers’ sex but of economic activity, occupation and size of enterprise. However, the Committee notes that the statistics compiled by the National Institute of Statistics and Census (INEC) show persistent and marked sex-based occupational segregation (in 2013 taking into account the whole active population: construction, men 21.8 per cent and women 1.9 per cent; education, men 3.6 per cent and women 10.6 per cent; social and health related services, men 1.6 per cent and women 7.6 per cent; household activities, men 1.3 per cent and women 10.7 per cent). Similar disparities are reflected in the significant wage gap. For example, at management level, in 2013 the average monthly salary was 973.6 Panamanian balboas (PAB) for men and PAB952 for women; among professionals, scientists, and other intellectuals the average monthly salaries for men and women were PAB1,019 and PAB884 respectively; for plant and machinery operators the wages were PAB583 and PAB489 respectively; for middle-grade technicians and professionals they were PAB736 for men and PAB666 for women. The statistics also show a larger proportion of men in the highest salary grades (in management jobs paying over PAB 3,000 monthly men account for 16.7 per cent and women for 13.3 per cent; in professional, scientific and technical jobs men account for 13.2 per cent and women for 3.2 per cent; in middle-grade technical and professional jobs men account for 5.1 per cent and women for 1 per cent). The Committee requests the Government to take practical measures for the education and vocational training of women in all sectors of occupation, including those traditionally occupied by men, in order to broaden the employment opportunities for women and enhance their prospects for advancement and promotion in their respective occupations. The Committee requests the Government to provide information on these matters and on any other practical measures taken to reduce the present wage gap and attenuate its impact.

Article 1(b) of the Convention. Work of equal value. The Committee has for more than 20 years referred to the need to amend section 10 of the Labour Code, which provides “for equal pay for work in the service of the same employer, performed in the same job, working day, conditions of efficiency and seniority”, in order fully to align it with the principle of equal remuneration for men and women for work of equal value. The Committee also recalls that article 67 of the Political Constitution likewise provides that “an equal salary or wage shall be paid for work carried on in the same conditions, regardless of the person performing it, without exception and without distinction as to sex, nationality, age, race, social class, or political or religious ideas”. Section 4 of the Constitution provides that the Republic of Panama respects international labour standards. The Committee notes the establishment of a harmonization committee under the Tripartite Agreement of Panama, concluded in February 2012 between CONEP, National Council of Organized Workers (CONATO) and the National Confederation of United Independent Unions (CONUSI), with the cooperation of the ILO. The Government indicates that the abovementioned committee is responsible for harmonizing the legislation with ratified Conventions. The Committee nonetheless observes that, according to the Government, there have been no changes as regards the harmonization of article 67 of the Constitution and section 10 of the Code since they are not incompatible with the principle of the Convention, their aim being equality. The Committee recalls in this connection that the concept of “work of equal value” lies at the heart of the fundamental right to equal remuneration for men and women for work of equal value, and the promotion of equality. Owing to historical attitudes and stereotypes regarding women’s aspirations, preferences and capabilities, certain jobs are held predominantly or exclusively by women (such as in caring professions) and others by men (such as in construction). Often, “female” jobs are undervalued in comparison with work of equal value performed by men when determining wage rates. The concept of “work of equal value” is fundamental to tackling occupational sex segregation in the labour market, which exists in almost every country, as it permits a broad scope of comparison, including, but going beyond equal remuneration for “equal”, “the same” or “similar” work, and also encompasses work that is of an entirely different nature, which is nevertheless of equal value. The Committee recalls that insistence on factors such as “equal conditions of work, qualifications and output” may be used as a pretext for paying women lower wages than men. Although factors such as skill, responsibilities, effort and working conditions are clearly relevant in determining the value of work, when examining two jobs the value need not be the same for each factor – determining value is about the overall value of the job when all the factors are taken into account (see the 2012 General Survey on the fundamental Conventions, paragraphs 673 et seq.). The Committee requests the Government to take the necessary measures to align its legislation with the principle of the Convention and in particular to amend section 10 of the Labour Code so that it fully reflects the principle of equal remuneration for men and women for work of equal value. The Committee requests the Government to provide information on any developments in this regard and points out that it may avail itself of technical assistance from the Office.

The Committee is raising other points in a request addressed directly to the Government.