Observation (CEACR) - adopted 2018, published 108th ILC session (2019)

Minimum Wage Fixing Convention, 1970 (No. 131) - Bolivia (Plurinational State of) (Ratification: 1977)

The Committee notes the observations of the Confederation of Private Employers of Bolivia (CEPB) and the International Organisation of Employers (IOE), received on 31 August and 7 November 2018.

Follow-up to the conclusions of the Committee on the Application of Standards (International Labour Conference, 107th Session, May–June 2018)

The Committee notes the discussion that took place in the Conference Committee on the Application of Standards (hereinafter Conference Committee) in June 2018 concerning the application of the Convention. The Committee notes that the Conference Committee urged the Government without delay to: (i) carry out full consultations in good faith with the most representative employers’ and workers’ organizations with regard to minimum wage setting; (ii) take into account when determining the level of the minimum wage the needs of workers and their families as well as economic factors as set out in Article 3 of the Convention; (iii) avail itself of ILO technical assistance to ensure without delay compliance with the Convention in law and practice; and (iv) accept an ILO direct contacts mission. The Conference Committee also recommended the Government to submit a detailed report to the Committee of Experts in 2018.

Articles 3 and 4(1)–(2) of the Convention. Elements for the determination of the level of minimum wages and full consultation with the social partners. The Committee notes the Government’s indication in its report that: (i) the national minimum wage was increased for 2018 by Supreme Decree No. 3544 of 1 May 2018; (ii) socio-economic elements taken into account for fixing the national minimum wage include inflation, productivity, gross domestic product (GDP), GDP per capita, the consumer price index, economic growth, unemployment rates, market fluctuations and the cost of living; (iii) for 2018, the corresponding consultations were held firstly with the CEPB and then with the Bolivian Workers’ Confederation (COB); (iv) the Government held meetings with the representatives of both workers and employers and consultations were held on their criteria and proposals regarding wages; and (v) both parties maintain their positions and it is for the Government to seek the right balance. Moreover, the Committee notes that the CEPB and the IOE indicated in their observations, and in the discussion in the Conference Committee, that: (i) the employers could not formulate criteria with regard to minimum wage fixing; (ii) between 2006 and 2018, the increase in the national minimum wage was much higher than aggregate inflation for this period; (iii) the 2018 increase in the minimum wage did not take account of variables such as the productivity index, enterprise sustainability, the creation of more and better jobs, and the rise in the rate of informality; and (iv) the Government did not comply with the recommendations of the Conference Committee as regards convening a with the employers and the workers to discuss the fixing of the minimum wage. Furthermore, the Committee notes that the Worker members indicated in the Conference Committee that: (i) the increase in the minimum wage had taken account of a set of recommendations presented by the COB, and also socio-economic factors such as inflation, productivity, GDP, GDP per capita, the consumer price index, economic growth, unemployment rates, market fluctuations and the cost of living; and (ii) it was important to engage in social dialogue and consultations with the social partners before fixing the minimum wage.

The Committee observes that while the Government states that consultations were held with the social partners, the CEPB and the IOE claim the opposite. Furthermore, the Committee observes that there are divergences regarding the criteria reportedly taken into consideration in determining the minimum wage. The Committee recalls once again that the Convention requires full consultations in good faith with the representative employers’ and workers’ organizations concerned with respect to the establishment, operation and modification of machinery for fixing and adjusting the minimum wage from time to time (Article 4(1)–(2)), and that the active participation of these organizations is essential to allow optimal consideration of all the relevant factors in the national context (2014 General Survey on minimum wage systems, paragraph 285). In this context, the Committee notes with regret that the Government has still not responded to the request made by the Conference Committee to accept a direct contacts mission. In this regard, the Committee recalls that direct contacts missions involve sending a representative of the ILO Director-General to the country concerned with a view to finding a solution to the difficulties faced in the application of ratified Conventions. The work of the mission is to ascertain the facts and examine possibilities in situ for resolving the problems raised. It is an effective form of dialogue designed to find a positive solution to the issues in question. The Committee expresses the firm hope that this mission can take place without delay and that it will help to resolve the issues related to the application of the Convention.

[The Government is asked to reply in full to the present comments in 2019.]