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

Employment Policy Convention, 1964 (No. 122) - Venezuela (Bolivarian Republic of) (Ratification: 1982)

The Committee notes the observations of the Independent Trade Union Alliance Confederation of Workers (CTASI), received on 29 August 2018, and also the observations of the International Organisation of Employers (IOE) and the Federation of Chambers and Associations of Commerce and Production of Venezuela (FEDECAMARAS), received on 1 September 2018. The Committee also notes the observations of the National Union of Workers of Venezuela (UNETE), the Confederation of Workers of Venezuela (CTV), the Confederation of Autonomous Trade Unions (CODESA) and the General Confederation of Labour (CGT), received on 26 September 2018. It also notes the Government’s replies to the 2017 observations of the social partners. The Committee requests the Government to provide its comments in relation to the observations received in 2018.

Articles 1 and 2 of the Convention. Implementation of the employment policy within the framework of a coordinated economic and social policy. Measures to respond to the economic crisis. The Committee notes the Government’s indication, in response to previous comments, that it is continuing to design and implement a range of measures, policies and programmes with a view to strengthening, improving and encouraging better protection, social inclusion and recognition of the social rights of the Venezuelan people. The Government adds that, in this context, it presented the National Economic and Social Development Plan 2019–25 (Plan de la Patria), the objectives of which include employment security, introduced by various decrees, the most recent of which dates from 28 December 2015 and establishes immunity from dismissal for men and women workers for a period of three years. Consequently, during this period dismissals may not be carried out without good grounds and may only occur in strict compliance with the procedures established in the labour legislation. The Government also refers to the implementation of several measures to promote employment, such as the establishment of Social Welfare Divisions, operational units that provide comprehensive services, such as advice, guidance and coordination for: inclusion; re-employment; the granting of benefits for involuntary loss of employment; and labour migration. These services cover men and women workers with disabilities, migrant workers, those whose employment has been terminated against their will, and the self-employed. Furthermore, the Government indicates that it has incrementally increased the minimum wage with a view to improving the living conditions of women and men workers. The most recent wage increase, introduced during the reporting period in June 2018, fixed the minimum wage at 3 million bolívares fuertes (Bs. F.) per month. The Government also refers to the implementation of the Socialist Cesta Ticket Act (Decree No. 3.233, published in Special Official Gazette No. 6.354 of 31 December 2017), under which the basis for calculation of the Socialist Cesta Ticket was adjusted for men and women workers who provide services in the public and private sectors to 61 tax units per day, for 30 days per month. Furthermore, under Decree No. 3.393, published in Special Official Gazette No. 41.388 of 30 April 2018, the tax unit amount used for calculation was increased to 580 bolívares (Bs). Lastly, the Government indicates that it maintained the policy of inclusion in the pension system and the standardization of pension payments on the basis of the national minimum wage. In that regard, the Government reports that, in April 2018, there were 3,780,674 beneficiaries, accounting for more than 70 per cent of Venezuelan women over the age of 55 years and men over the age of 60 years.

The Committee also notes that the workers’ confederations UNETE, CTV, CGT and CODESA allege in their observations that the high levels of informality, vulnerability and precarious employment in the country make it difficult to achieve the objectives of decent, productive and quality employment. In this regard, the CTASI indicates that, according to the 2017 National Living Conditions Survey (ENCOVI), 44 per cent of those in employment did not have any type of contract, 10 per cent were employed by means of a verbal contract and 7 per cent had a temporary contract. The CTASI also alleges decreased access to statutory employment benefits. In particular, it reports that in 2017 only 35.5 per cent of workers received paid leave, only 31.1 per cent were registered with the Venezuelan Institute of Social Security (IVSS), 34 per cent received food vouchers and 41.5 per cent reported receiving end-of-year bonuses or allowances. The CTASI asserts that in 2017 some 2.2 per cent of workers were underemployed, meaning that they worked fewer than 15 hours per week. Furthermore, 4.1 per cent of workers earned less than the comprehensive minimum wage, despite working more than 40 hours per week. Regarding workers’ remuneration, the CTASI affirms that, until September 2018 when the country entered hyperinflation, 82 per cent of those employed earned less than the comprehensive minimum wage. According to the CTASI, the cost of going to work was higher than the wages earned by workers. As a result, many preferred to resign from their official jobs in favour of informal activities (the informal economy grew from 30.6 per cent in 2014 to 37.5 per cent in 2017) or to survive on some sort of state funding. UNETE, the CTV and the CGT denounce the current economic measures, adopted after the Government had provided its report, such as the adoption of the new minimum wage of 1,800 bolívares soberanos (Bs.S.) in August 2018 and the unilateral fixing of the Cesta Ticket food voucher at 10 per cent of the minimum wage, infringing the principle of progressivity established in the legal system and eliminating the benefits set out in the collective agreements in force. The Committee also notes that the IOE and FEDECAMARAS once again claim that the Government has still not adopted an effective policy to promote employment. Furthermore, the employers’ organizations refer to International Monetary Fund statistics that predict inflation of 1 million per cent by the end of 2018. The Committee requests the Government to continue to provide detailed information on the specific measures taken to formulate and adopt an active employment policy designed to promote full, productive and freely chosen employment, in full compliance with the Convention.

Labour market trends. In response to the Committee’s previous comments, the Government reports that the employment rate was 93 per cent in the second quarter of 2017 and the unemployment rate was 7 per cent. The Government adds that, while men have a higher participation rate (59.8 per cent), the number of women in employment increased from 4,682,402 in 2008 to 5,828,388 in 2017. The Government indicates that this situation is a result of the policies and programmes developed with a view to increasing women’s employment rate including the establishment of institutions to implement those programmes and the capacity development and funding of socio-productive projects for women. The Committee notes the Government’s indication that the employment rate of over-65s increased from 18.6 per cent in 2016 to 66.1 per cent in 2017. The Government also states that the informal economy shrank from 52.4 per cent in 2003 to 42.87 per cent in the second half of 2017. However, the Committee notes that the workers’ confederations UNETE, the CTV, the CGT, CODESA and the CTASI refer to the results of the ENCOVI for 2017, according to which 58.5 per cent of the population were economically active and 41.5 per cent were inactive. They assert that the open unemployment rate increased from 7.4 per cent in 2016 to 9 per cent in 2017. Furthermore, UNETE, the CTV, the CGT and CODESA indicate that income poverty increased from 81.8 per cent in 2016 to 87 per cent in 2017, while extreme poverty increased from 51.5 per cent to 61.2 per cent. They emphasize that there is continuing evidence of profound regional inequality, given that multidimensional poverty affects 34 per cent of households in Caracas (where less than 20 per cent of the population live) but in the least populated zones (which account for 25 per cent of the total population) the poverty rate is more than double, affecting 74 per cent. The workers’ confederations allege that the statistical information provided by the Government does not show the genuine figures. The IOE and FEDECAMARAS regret that official labour force statistics, previously published by the National Institute of Statistics (INE), have not been published since April 2016 and there are no accountability mechanisms that provide information on the most relevant variables regarding the labour force. The Committee requests the Government to continue to provide detailed information, including updated statistics disaggregated by age and sex, on the labour market situation and trends in the country. The Committee also requests the Government to continue providing information on the impact of the measures taken to give effect to the Convention.

Transitional labour regime. In its previous comments, the Committee requested the Government to indicate the current situation with regard to the application of Resolution No. 9855, which establishes a transitional labour regime that is compulsory and strategic for the revival of the agro-food sector, and which provides for workers in public and private enterprises to be placed in other enterprises in the sector (requesting enterprises) that are separate from the enterprise that generated the original employment relationship. The Committee notes the Government’s indication that the abovementioned Resolution was issued in the context of the Decree under which the State of Exception and Economic Emergency was declared and in conformity with the provisions of article 305 of the Constitution of the Bolivarian Republic of Venezuela, which provides that the State shall guarantee food sovereignty. The Government also indicates that the Resolution was not implemented while it was in force and, as a result, no worker transfers were conducted as a result of its application. The Government adds that the Resolution was in force for 180 days and no new resolution was issued for its renewal. The Government concludes that, consequently, Resolution No. 9855 has been repealed, as it has had no legal force since January 2017 when it was not renewed. The Committee notes the information provided by the Government in response to its previous request on the status of Resolution No. 9855.

Youth employment. The Committee notes the Government’s statement, in response to its previous comments, that the number of young persons aged between 15 and 24 years in employment increased from 565,727 in 2016 to 670,974 in 2017. The Government indicates that, through the 32 offices of the Meeting Centres for Education and Employment (CEET), a policy has been developed to guarantee the comprehensive inclusion of young persons in the social process of work, taking into account their skills and potential. In 2017, a total of 6,479 young persons were registered with the CEET (57 per cent of whom were men and 43 per cent were women), and subsequently incorporated into the supply chains with the greatest labour needs. The Government reports that 63 per cent of the young persons registered with the CEET are in employment, 31 per cent are unemployed and 6 per cent are seeking work for the first time. The Committee also notes the Government’s reference to, inter alia, the Programme for Comprehensive Assistance, which targets vulnerable people, including: persons with disabilities; young persons between the ages of 18 and 30 years; and university students completing internships, apprenticeships, community service and/or research projects, who are voluntarily involved in the initiation process for work in different areas of employment that are prioritized for strategic reasons. The Government highlights the transformation of the Youth Employment Plan into the Major Youth Employment Mission under Decree No. 3.485 of 22 June 2018, published in Official Gazette No. 41.429 of 28 June 2018. This new Major Mission targets young people between 15 and 35 years of age, with a view to integrating them into productive work in areas associated with meeting human needs, identified through the Carnet de la Patria identity card system, within the framework of the Somos Venezuela (we are Venezuela) movement. In particular, the Major Youth Employment Mission focuses on unemployed graduates, persons without education, persons with family responsibilities, single mothers and socially vulnerable persons. The Government indicates that, one year after it was established, 1.1 million young persons were enrolled in the Mission, 11,647 socio-productive projects benefiting more than 33,000 young people had been approved, and 2,206 young workers had joined public and private enterprises. The Mission’s strategic directions include the promotion and strengthening of a new culture for the social process of work, the “return to the fields” (agricultural and agro-urban production), the promotion of a culture of productive entrepreneurship, and the integration of youth programmes. However, the Committee observes that the Government has still not provided an evaluation, conducted with the participation of the social partners, of the active employment policy measures implemented to reduce youth unemployment and promote their sustainable integration into the labour market, particularly for the most underprivileged categories of young persons. Consequently, the Committee once again requests the Government, with the participation of the social partners, to provide an evaluation of the active employment policy measures implemented to reduce youth unemployment and promote their sustainable integration into the labour market, particularly for the most underprivileged categories of young persons. The Committee also requests the Government to continue providing detailed statistical data, disaggregated by age and sex, on youth employment trends.

Development of small and medium-sized enterprises (SMEs). In its previous comments, the Committee requested the Government to provide information on the impact of the measures adopted to promote the creation and productivity of small and medium-sized enterprises, and to develop a climate conducive to generating employment in such enterprises. The Committee observes that the Government has not provided information in this respect. The Committee notes that, in their observations, the IOE and FEDECAMARAS assert that, according to INE figures, 40 per cent of the country’s enterprises disappeared between 1998 and 2006. The Committee once again requests the Government to provide information on the measures taken to encourage the creation of SMEs and promote their productivity, and to create a climate conducive to generating employment in such enterprises.

Article 3. Participation of the social partners. In its previous comments, the Committee reiterated its request to the Government to provide information that included specific examples of how account had been taken of the views of employers’ and workers’ organizations in the formulation and implementation of employment policies and programmes. The Committee also once again requested the Government to provide detailed information on the activities of the National Council for the Productive Economy (CNEP) related to the issues covered by the Convention. The Committee notes that the Government has not provided information in this regard in its report. The Committee also notes that, in their observations, the IOE and FEDECAMARAS allege that the Government is not holding consultations or cooperating with the social partners for the formulation of a policy to encourage employment, in conformity with the terms of Article 3 of the Convention. The Committee therefore once again requests the Government to send information that includes specific examples of how account has been taken of the views of employers’ and workers’ organizations in the formulation and implementation of employment policies and programmes and the outcomes of those consultations. The Committee also once again requests the Government to supply detailed information on the activities of the National Council for the Productive Economy (CNEP) related to the matters covered by the Convention.