Observation (CEACR) - adopted 2016, published 106th ILC session (2017)

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Venezuela (Bolivarian Republic of) (Ratification: 1944)

The Committee notes that a complaint made under article 26 of the ILO Constitution alleging non-observance of the Convention by the Bolivarian Republic of Venezuela, presented by a group of Employers’ delegates to the International Labour Conference in 2015, has been declared receivable and is currently pending before the Governing Body.

The Committee notes the observations made jointly by the Federation of Chambers and Associations of Commerce and Production of Venezuela (FEDECAMARAS) and the International Organisation of Employers (IOE), received on 9 September and 5 November 2015, and on 26 May and 7 September 2016. The Committee also notes the observations made jointly by the National Union of Workers of Venezuela (UNETE), the Confederation of Workers of Venezuela (CTV), the General Confederation of Labour (CGT) and the Confederation of Autonomous Trade Unions (CODESA), received on 19 September and 24 October 2016, as well as the observations made by the Independent Trade Union Alliance (ASI), received on 23 September 2016. The Committee notes the Government’s reply to the observations of these employers’ and workers’ organizations.

Articles 1 and 3 of the Convention. Minimum wage fixing machinery. Consultation of the organizations of employers and workers concerned. In its previous comment, the Committee urged the Government to do its utmost to guarantee the full consultation and participation on an equal footing of the most representative organizations of employers and workers with a view to the establishment and operation of minimum wage systems. The Committee notes that both FEDECAMARAS and the IOE indicate that the Government is still in consistent violation of the Convention through its failure to consult FEDECAMARAS and to hold tripartite consultations for the determination of increases in the minimum wage between the last quarter of 2014 and August 2016. They add that it also failed to hold tripartite consultations for the approval of the new Act on the socialist food voucher for men and women workers (published in Official Gazette No. 40.774 of 26 October 2015), or concerning the increases in the amount of the socialist food voucher. The Committee notes that, according to FEDECAMARAS and the IOE, the Government’s action is in violation of the conclusions of the Conference Committee on the Application of Standards in June 2015 on the application of the Convention, and the commitment given by the Government in the context of the Governing Body in March 2016 relating to the implementation of the plan of action, which included consultations with FEDECAMARAS on government and legal decisions in the field of labour.

The Committee notes that the UNETE, CTV, CGT and CODESA allege that since 1999 the Government has systematically approved the minimum wage unilaterally and that it adopted the Act on the socialist food voucher without prior consultation. They add that the Government has shown no will to engage in legitimate tripartite consultations with the independent unions on labour-related matters and that the wages of Venezuelan workers continue to be inadequate, even to cover the food basket. The Committee notes the indication by the ASI that: (i) in 2015 there was very high inflation and a sharp fall in gross domestic product (GDP) of 5.7 per cent; (ii) the same year, the increase in the prices of food and non-alcoholic drinks, which represent the major items in the budgets of Venezuelan families, was 315 per cent, and in these circumstances the Government decreed four increases in the minimum wage in 2015, without engaging in tripartite discussions with employers’ and workers’ organizations; (iii) the National Statistical Institute stopped publishing data on the statutory food basket in November 2014; (iv) over half of the value of the minimum wage has been lost through devaluation; and (v) wages are not adapted to the real situation, as socio-economic variables are not taken into account.

The Committee notes the Government’s indication in its report and in its reply to the observations of the employers’ and workers’ organizations referred to above, that since 2015 the national executive authorities have increased the minimum wage on nine occasions. With reference to the food voucher, it has been adjusted in line with fluctuations in the tax unit, which is increased on the basis of inflation, thereby balancing the purchasing power required to buy food. As from 1 November 2016, the voucher will be 63,720 Venezuelan bolivars (VEF) (approximately US$6,400). The Government indicates that the minimum living wage is fixed taking into account the increase in the cost of the basic basket, which is composed of over 400 products and services that are needed by a family to meet its vital needs. The Government adds that, during the period 2015–16, due to the irrational increase in the retail prices of products, it was found necessary to protect workers by adjusting the minimum wage and the food voucher as a function of the loss of purchasing power. The Government reaffirms that these policies were discussed in the National Economic Council, which includes representation of Chambers affiliated to FEDECAMERAS and the most important employers in the country, as well as representatives of the most representative workers’ confederation in the country. The Government adds that consultations on the national minimum wage are always held on an equal footing with employers and workers, as envisaged in Article 3 of the Convention, and emphasizes that it is in strict conformity with the Convention, both with regard to the criteria for the determination of minimum wages and consultation with the representatives of workers and employers.

While noting the information provided by the Government, the Committee notes with concern, on the one hand, the reiterated observations made by FEDECAMERAS and the IOE on the failure to give effect to the Convention and, on the other, the recent observations from several workers’ organizations (UNETE, CTV, CGT, CODESA and ASI) on the approval without consultation of the independent trade unions of increases in the minimum wage on numerous occasions during the period 2015–16, as well as the difficulties arising from the considerable increase in prices and the consequent loss of purchasing power of the minimum wage. Under these conditions, the Committee once again requests the Government to ensure that full effect is given to Article 3 of the Convention in relation to the consultation and participation on an equal footing of the most representative workers’ and employers’ organizations in the establishment and operation of minimum wage systems. The Committee requests the Government to report any developments in this regard.