Individual Case (CAS) - Discussion: 2019, Publication: 108th ILC session (2019)

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



Discussion by the Committee

Government representative – With reference to the report that we are called upon to present to this Committee, we have to point out in the first place that it must be noted that our State is characterized by the promotion of constant and unconditional dialogue with absolutely all the social partners. That is done with a view to the adoption of appropriate and balanced decisions to address the needs and interests of the community as a whole. It is carried out within the framework of a clearly democratic and participatory political system, in accordance with the provisions of our Political Constitution of the State since 2009, which reformed the country by incorporating the highest standards of social justice, in accordance with the will of a constituent assembly voted into power by the majority will of the Bolivian people.

The Government of President Evo Morales Ayma is a Government that develops economic and social policies in support of all women and men Bolivian nationals, but which also seeks to protect sectors that have historically been excluded and suffered discrimination. Accordingly, dialogue, consultation with the various sectors and the search for consensus are the methods that are used to govern, as respect for national and international law is a characteristic of our Government.

With regard to the comments contained in the report of the Committee of Experts, we have to note its observation that, while the Government affirms that consultations were held with the social partners, the Confederation of Private Employers of Bolivia (CEPB) and the International Organisation of Employers (IOE) claim the opposite.

Today, it would therefore appear that doubts have been raised concerning the word of the Bolivian State in relation to the holding of full consultations with the social partners. Of course, there are opposing opinions, but the facts are nevertheless clear. In the Plurinational State of Bolivia, minimum wage fixing is not a political measure at the discretion of the Government, but is the result of responsible dialogue with the social partners, as envisaged by the Convention, that is, dialogue with employers and with workers.

In this respect, it should be noted that on 25 March 2019, a meeting was held between the CEPB and President Morales and the Ministers of State, in which the discussion specifically focused on the fixing of the minimum wage for the present financial year. Another meeting was then held on 30 April 2019 with the private employers of the Plurinational State of Bolivia, in which wage matters were also examined. These facts, among many others, show the perseverance of the Government in engaging in full dialogue. Moreover, specifically in accordance with the Convention, which was adopted to supplement other ILO Conventions relating to the protection of workers against unduly low remuneration, the Plurinational State of Bolivia applies a policy of the gradual and systematic increase of wages. The complaints of the employers, who participate in dialogue with the Government for the fixing of the minimum wage, therefore appears to be a complaint against social justice, which is a fundamental pillar of the Plurinational State of Bolivia.

The fact that we are appearing before this Committee today due to a complaint by employers means that employers are endeavouring to use the Convention to try and prevent the State from setting decent wage levels for workers. Basically, this appears to be a challenge against the economic model of the Bolivian State, which has been found to be successful, not by us, but by international organizations and the international community. The figures are clear and do not lie.

The central objective of the Convention, as set out in Article 1, is the establishment of a system of minimum wages which covers all groups of wage earners. The essential aspect of the Convention is therefore the fixing of minimum wages, and the tool used to achieve this objective is social dialogue through the machinery established democratically by the Bolivian State.

The Preamble to the Convention reaffirms the role of States in protecting disadvantaged groups of wage earners in relation to employers, that is, the protective role of the State in relation to workers which, in our case, is mandated by the Political Constitution of the State, and to which full effect is given.

Another aspect is the observation by the Committee of Experts that there are differences concerning the criteria taken into account for the setting of the level of minimum wages. Since 2006, the Government of the Plurinational State of Bolivia, under the leadership of President Evo Morales Ayma, has developed measures which have allowed unduly low wages to be increased, in full compliance with the spirit of the Convention, and in respect of mechanisms of dialogue and consultation with the categories involved within the framework of the Constitution and the machinery established by the legislation in force.

As a result, the Government of the Plurinational State of Bolivia has quadrupled the minimum wage, which in 2005 was 440 bolivianos (approximately US$63), which was one of the lowest levels in the region. The wage is currently 2,122 bolivianos (approximately US$300). This increase in the wage was determined taking into account the criteria set out in Article 3 of the Convention, that is: (a) the needs of workers and their families, taking into account the general level of wages in the country, the cost of living, social security benefits, and the relative living standards of other social groups; and (b) economic factors, including the requirements of economic development, levels of productivity and the desirability of attaining and maintaining a high level of employment.

In this regard, it should be pointed out that the wage policy followed by the Government is proportional to the growth and production of the Plurinational State of Bolivia, which has also quadrupled as a result of the social, productive and community economic model. Indeed, since 2005, gross domestic product (GDP) has grown by US$9,568 million to over US$37,000 million in 2017. They are not therefore arbitrary increases, but increases based on the solid and growing economy in our country.

The World Bank has recognized that our country is among the leaders in the region in reducing wage inequality. According to the Gini Coefficient of Labour Income, over the last ten years the wage gap has improved from 0.53 per cent to 0.44 per cent as a result of the economic model. Extreme poverty was also reduced by 38.2 per cent to 15.2 per cent during the period between 2005 and 2018. Over 3 million persons have been taken out of poverty and our society is no longer a pyramid. Now, the majority of the population, 62 per cent, have average incomes which enable them to live well. These objectives are also set out in our Patriotic Agenda focused on 2025, which we believe are in accordance with the Sustainable Development Goals for 2030.

The wage policy that has been implemented has generated greater domestic demand, which has also been very beneficial for the private sector, where profits have been multiplied by four, rising from 8,663 million bolivianos in 2006 to 27,766 million bolivianos in 2017. This is because the economic model is based on the following pillars: the nationalization of natural resources and industrialization, the strengthening of domestic demand, the distribution of wealth and dynamic state investment, which guarantee results in terms of economic stability, employment generation, a decrease in the unemployment rate and the constant growth of the economy, which are contributing to reducing poverty and the levels of inequality.

As shown by these figures, private employers have benefited to a large extent from the economic, political and social stability and legal security provided by the Government of the Plurinational State of Bolivia in order to be able to invest and engage in new initiatives with the security that they will obtain optimum results.

It is the ineluctable duty of employers to afford security and social stability to the men and women workers who depend on them. Nevertheless, there are employers who provoke the premeditated failure of enterprises and abandon them. In this regard, we regret the unfounded accusations made by the Employers to this Committee, based on procedural arguments, with a view to limiting the just and equitable increase in the minimum wage, in accordance with the provisions of the Convention. We also regret the inclusion of this case in the list by the Committee. On the contrary, governments should be encouraged to improve the standards of living of their populations within the framework of the Convention and in light of the obligation to respect human rights.

The wage increase was determined taking into consideration the positions of both social partners, the workers and the employers, with whom the Government engages in dialogue and full consultations. For this purpose, working round tables have been established at the highest level of the Government with the representatives of the CEPB and have met on several occasions. Clear proof of this is provided by the national press. The full consultation required by Article 4(2) of the Convention refers to machinery for the fixing, application and adjustment of minimum wages, that is the legal design of the provisions that will govern the process of the determination of the minimum wage. The Government’s wage policy is focused on reducing the enormous economic gaps and favouring categories that are traditionally excluded, that is those who earn the least, by increasing wages by above the inflation rate, while maintaining the sustainability of public and private investment. Annual increases are determined on this premise.

In this context, the Plurinational State of Bolivia firmly believes that the legal interpretation of the provisions of the Convention needs to be more rigorous and not lose sight of the fact that its spirit is the protection of wage earners in view of their intrinsic asymmetry with employers.

With regard to the institutional machinery, we are bound to recall that the determination of minimum wages in the Plurinational State of Bolivia takes place within the following institutional framework:

(1) article 49 of the Political Constitution of the State, which provides that the law shall regulate labour relations, including the fixing of general and sectoral minimum wages and wage increases;

(2) section 52 of the General Labour Act, which provides that the determination of the remuneration of wage earners shall be carried out by the central Government;

(3) Presidential Decree No. 28699 of 1 May 2006, which provides that employers and workers shall agree freely on remuneration, which shall be above the national minimum wage determined by the Government.

The Constitutional framework is therefore established and has its origins in the Political Constitution of the State which, in the Plurinational State of Bolivia, is not only the outcome of consultation with workers and employers, but with the whole Bolivian people since, it should be recalled, the Constitution is the outcome of a constituent assembly and a confirmatory referendum.

In accordance with the machinery for the determination of minimum wages, since the last International Labour Conference in 2018, the Government has engaged in a series of full consultations with both sides with a view to setting the minimum wage and many other social policies. We now therefore have a balanced minimum wage which takes into account the position of both partners and the parameters indicated above. The Government of the Plurinational State of Bolivia is committed to continuing to hold these dialogue round tables with employers.

Worker members – Today we will examine the application of Convention No. 131 by the Government of the Plurinational State of Bolivia. This is the 16th observation made by the Committee of Experts on the subject of minimum wages in the Plurinational State of Bolivia since the Convention was ratified by the country in 1977.

An active debate is currently essential on what constitutes appropriate minimum remuneration to protect workers and their families from poverty and ensure stable remuneration in times of financial fluctuations.

As the representative of the Workers, we once again reaffirm that engaging in social dialogue in good faith is key to the implementation of an equitable and just economic policy at the national level. Such dialogue enables the Government and the social partners to work on a common strategy to promote decent work, inclusion and social justice.

As indicated by the Committee of Experts in its previous observations, the minimum wage system envisaged in the Convention is intended as a social protection measure to overcome poverty by guaranteeing decent levels of income, especially for unskilled workers and marginal groups.

The establishment of a minimum wage is intended to protect workers against the payment of low wages and to prevent exploitation, by guaranteeing that all men and women workers benefit from a fair distribution of the results of progress.

The Convention is based on the idea that it is necessary to protect wages, which are generally the only means of subsistence of workers, faced with the effects of market competition and to prevent a race to the bottom.

First, I wish to reflect on the debate in the Committee in June 2018 on the application of the Convention by the Government of the Plurinational State of Bolivia. During the discussion, the Government was requested to adopt a series of measures, and I quote, “the Committee urged the Government without delay to: carry out full consultations in good faith with the most representative employers’ and workers’ organizations with regard to minimum wage setting; 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; avail itself of ILO technical assistance to ensure without delay compliance with the Convention in law and practice; and accept an ILO direct contacts mission.” As workers, we welcome the decision of the Government to increase the national minimum wage for 2018, through Presidential Decree No. 3544, with the result that the minimum wage rose from 2,060 bolivianos a month to 2,122 bolivianos a month.

During the process of wage negotiation, account was taken of various factors, including inflation, productivity, GDP, economic growth, the unemployment rate, market fluctuations and the cost of living. These elements were taken into consideration in accordance with Articles 3 and 4 of the Convention.

We also welcome the application by the Government of wage policies intended to preserve the real value of the remuneration of men and women workers with the lowest incomes and to protect their remuneration so that it does not lose value as a result of inflation. This policy of the Government of the Plurinational State of Bolivia is key to ensuring a just distribution of wealth and removing the greatest number of men and women workers from poverty.

We also applaud the reaffirmation by the Government that the ideal of equality is a fundamental pillar of a sustainable economy. We wish to reaffirm that open social dialogue plays an essential role in ensuring the sound design and adaptation of public policies to all aspects of the economic and social situation of a country.

Taking this into account, we consider it appropriate to encourage the Government to continue its major efforts to give effect to the Convention, which requires the holding of consultations in good faith with the representative organizations of employers and workers for the establishment, operation and adaptation of the machinery through which minimum wages are fixed and adjusted.

We emphasize the importance of the Convention and its application, with the incorporation of objective quantitative methods for the determination of the minimum wage in which the active participation is ensured of the most representative organizations of employers and workers in future decisions concerning wages.

Effective consultations and the full participation of the representatives of employers’ and workers’ organizations are essential to guarantee solid, sustainable and broadly accepted machinery for minimum wage setting.

Employer members – We thank the representative of the Plurinational State of Bolivia for the information provided to this Committee. The Committee of Experts has made observations on various occasions in which it noted with concern matters related to Convention No. 131. That was the case in 2013, 2014, 2017 and 2018.

This Committee examined the case last year, when it urged the Government without delay to: (a) carry out full consultations in good faith with the most representative employers’ and workers’ organizations with regard to minimum wage setting; (b) take into account when determining the level of the minimum wage the needs of workers and their families as well as other economic factors; (c) avail itself of ILO technical assistance to ensure without delay compliance with the Convention in law and practice; (d) accept an ILO direct contacts mission; and (e) submit a detailed report to the Committee of Experts in 2018.

Those conclusions were the product of a long discussion in the Committee during which the failings that justified such conclusions were determined. It is to be hoped of a Member of the ILO that the recommendations of its supervisory bodies are implemented in good faith. It is now our responsibility to determine the extent to which, if any, the Government of the Plurinational State of Bolivia has given effect to these recommendations, beginning with those that are of most concern to employers, that is the full consultations required before the determination of the minimum wage.

Indeed, the Convention is very clear in Article 4 on the need for the Government to engage in full consultation in good faith with representative organizations on the establishment, operation and adaptation of the machinery through which minimum wages are set.

As we noted during the examination of the case last year, the Convention describes the consultations as full. To shed light on what that means, I would like to refer to the comments made by the Committee of Experts in its examination of the same case in the now distant year of 2009, when this problem arose. I quote: “While recalling that consultation should be kept distinct from co‑determination or mere information, the Committee considers that the Government is under the obligation to create and maintain conditions permitting the full consultation and direct participation of the most representative employers’ and workers’ organizations in all circumstances. It therefore urges the Government to take appropriate action to ensure that the requirement for meaningful consultations set forth in this Article of the Convention is effectively applied, preferably in a well-defined, commonly agreed and institutionalized form.”

The mere indication of the wage that it is intended to adopt, which we understand was the closest that the Government of the Plurinational State of Bolivia came to a communication to employers, cannot in any manner, in light of the above, be considered consultation, and still less full consultation. It is clear to us that for this to be the case, consultations have to be held in good faith with a view to identifying the concerns and aspirations of each of the parties and with the objective of achieving consensus, or as a minimum of incorporating the concerns and sensitivities of the partners into the decision that is finally adopted by the Government.

During the two meetings to which the representative of the Plurinational State of Bolivia referred, we understand that fiscal matters were discussed, and that the information provided in one of them was limited to the figure by which the Government was planning to increase the wage, without permitting discussion of the subject. In evidence of the lack of will by the Government, I refer to the notification published on 18 April this year, which I quote: “the Minister of Development Planning, Mariana Prado, confirmed on Tuesday to the Fides News Agency (ANF) that it had been agreed not to engage in tripartite negotiation with the participation of the private sector, and that the determination of the wage increase would be balanced.” There was no consultation, and especially not full consultation, despite what the Government has said. What the Government of the Plurinational State of Bolivia did was to reach agreement solely with workers’ organizations, in clear violation of the provisions of the Convention and the most elementary standards of this House concerning social dialogue, which is one of its pillars.

Indeed, we have seen a document concluded by the Government and the Bolivian Workers’ Confederation (COB), dated 30 April this year, in which it is agreed, among many other matters, to reform the labour legislation and increase wages.

This situation was indicated to the Committee by us during the examination of the case last year, when we referred to public statements by high-level government officials to the local media in which open and categorical assurances were given that employers would not participate in decisions on minimum wages and that it is government policy to determine the increase in the minimum wage only with the workers.

Today, the facts confirm once again the reality of this policy, which is in violation of ILO standards and those of the country itself, as they have been incorporated into national legislation through the ratification of the Convention.

In the report that we are examining, and in others that have been produced for many years, the Committee of Experts requests the Plurinational State of Bolivia to give effect to its consultation obligations in relation to the determination of minimum wages. The response that we have seen has been the same.

This situation has to change, for the credibility of the supervisory procedures and because we have to ensure that the Members of the ILO comply in good faith with the Conventions that they have ratified. This has to be done in the most rigorous terms possible, in light of the retrograde attitude of the Government of the Plurinational State of Bolivia and the complacency of certain Worker representatives who do not see the evident dangers in this advantageous situation, which is nevertheless of little benefit, as it is undermining social dialogue and, in the final analysis, the rule of law in a country through the systematic violation of its laws. Sooner or later that will be to the prejudice of the population as a whole.

With regard to the second aspect, namely the non-compliance of the country in relation to the elements that have to be taken into account to determine the level of minimum wages, in accordance with Article 3 of the Convention, we have no indication that such elements were taken into consideration. Once again we are required to point out certain specific concepts of Bolivian legislation. There are two reference points for wages. On the one hand, there is the national minimum wage, which is universal for workers in all areas of the economy as the minimum level of remuneration that they should receive for a full day’s work, in accordance with the regulations. On the other hand, there is the so-called “basic wage”, which applies to all workers and cannot be lower than the minimum level referred to above, but which may be higher. This is therefore independent of the minimum wage and its determination is a consequence, in each specific case, of the individual or collective contract between employers and workers.

Article 49(2) of the Political Constitution of the Plurinational State of Bolivia specifies that the law is the suitable machinery for the determination of wages. The institutions that supervise the domestic constitutionality of the Plurinational State of Bolivia are those that must determine whether or not the Government has the legal power to intervene in the determination of wage increases by means of Presidential Decrees, as it has been doing in practice and, if so, whether they should also be the subject of consultation with the social partners, as we have been saying.

We have also expressed our reservations, as being in violation of the right of employers and workers to collective bargaining, of the requirement, under the terms of the ministerial decisions that are issued every year regulating wage increases, for the parties to negotiate an increase in the basic wage, for which a time limit is also set to reach agreement and for the submission of the agreement to the government authorities, under penalty of fines and sanctions for the employer for each day of delay, which places unfair pressure on the employer.

We have been noting that since 2006 the national minimum wage has been increased by more or less 300 per cent and the basic wage by 150 per cent, with both figures being well above inflation. Moreover, the official figures show a fall in GDP growth since 2014 and the International Monetary Fund (IMF) forecasts that this will continue until 2022.

The IMF predicts that the country and its economy will face a period of major challenges relating to complexities in key sectors such as hydrocarbons. Earlier figures suggested that the elements referred to in Article 3 of the Convention have not been taken into account in the determination of wages. If they had been considered, wages would undoubtedly not have been increased by the percentages noted above, as in practice happened in the public sector.

Finally, with regard to collaboration with the Office to resolve the problems that have been identified, the Committee of Experts regretted that the Government had not even replied to the request by the Conference Committee to send a direct contacts mission.

This shows once again the Government’s attitude to finding a solution to the issues that we are raising. We have no doubt that the Government of the Plurinational State of Bolivia is deliberately refraining from consulting the employers’ organizations in the country in relation to the determination of minimum wages. Nor has it any interest in collaborating with the Office. Indeed, it would appear to be indifferent to the situation of non-compliance with its obligations deriving from the Convention, as well as its impact on the national economy, with sources of decent employment being reduced, accompanied by an incessant growth in the informal economy, where no minimum wages of any type are guaranteed, and there is no other type of labour protection or social security.

We need to remind the Government of the Plurinational State of Bolivia, in the most severe terms, that it is in violation of its obligations under the Convention, and needs to take the corresponding action.

Employer member, Plurinational State of Bolivia – Over and above the complete astonishment with which we have heard the report by the government authorities containing a message that is absolutely not in accordance with the real situation, we are bound to recall that, as is known to the members of this Committee, at the 107th Session of the Conference held in 2018, in view of the complaints and protests made jointly by the CEPB and the IOE for many years, the failure of the Government of the Plurinational State of Bolivia to apply and comply with Convention No. 131 was finally examined. In view of its ratification by our country, the Convention certainly forms part of the constitutional bloc envisaged in article 410 of the Political Constitution of the Plurinational State of Bolivia.

In this light, it should be recalled that the complaint made by our employers’ organization is based on the fact that the Government of the Plurinational State of Bolivia has been setting the wage increases to be applied, not only in relation to the national minimum wage, but also for the basic wage, without engaging in any consultations with employers’ representatives, and particularly not in the form of the full consultations required by Article 4 of the Convention. Indeed, on the contrary, it has confined itself to setting such increases on the basis of the direct negotiations that the Government has been holding for all these years with the Bolivian Workers’ Confederation (COB), completely ignoring the representatives of private employers, which have been required to assume the measures imposed upon them in this respect.

It should be noted that this is confirmed by ILO documents, including the various reports of the Committee of Experts in 2006, 2007, 2008, 2009 and 2010, among others, in which it indicated that the authorities of the Government of Bolivia should engage objectively in full consultations and that it was essential to draw a distinction between the concepts of consultation, co-determination and mere information, on which clear guidance is contained in Paragraphs 1, 4 and 5 of the Consultation (Industrial and National Levels) Recommendation, 1960 (No. 113). There can therefore be no confusion in the Committee between the action referred to by the Government relating to the holding of isolated meetings in which general discussions were held on various subjects, but which in no case amounted the compliance with the procedure of full consultation with specific reference to the determination of the national minimum wage. It is clear, not only that no documents exist showing that Bolivian employers were taken into consideration and invited to discuss this subject, but also that in recent years we have not even had the good fortune to have been received at any meeting in the Ministry of Labour, as the Ministry responsible for labour matters, and have certainly not had any meeting with the responsible Minister.

We must point out that between 2006 and this year, 2019, in view of the increases imposed by the Government, the national minimum wage has risen in overall terms by over 322 per cent, while the basic wage has risen by over 130 per cent. That has given rise to a multiplier effect that is insupportable for various enterprises as they provide the basis for the calculation of all the other elements that make up the wage structure, and this increase has to be reflected in the wage agreements that are also imposed by the Ministry of Labour through regulations setting out a deadline for such agreements, under penalty of the imposition of financial fines for delays in the event of failure to comply, which increase on a daily basis up to the equivalent of 40 per cent of the payroll. This situation undermines the legitimate voluntary negotiation referred to in Article 4 of the Right to Organise and Collective Bargaining Convention, 1949 (No. 98), which has also been ratified by the State of Bolivia.

It should also be recalled that at the last Conference, as indicated in the records of this Committee, in relation to the same complaint of failure to comply with the Convention, in contrast with what was said today by the representatives of the Government, and which runs counter to what we have been told, the then Minister of Labour of the Plurinational State of Bolivia, in defence, said precisely that: “The essential characteristic of the Convention [is] the fixing of the minimum wage, and not necessarily social dialogue”. That means that, in the view of the authorities of the Government of Bolivia, social dialogue, which has always been promoted by this house, is not a component of the Convention. We therefore assume that this mistaken view was the reason why employers’ representatives are excluded from any consideration in relation to the determination of the national minimum wage, thereby failing to take into account the views of Bolivian employers, which have constantly endeavoured to persuade the national Government to also take into consideration for the fixing of increases the criteria set out in Article 3 of the Convention, including economic development, levels of productivity and the desirability of attaining and maintaining a high level of employment.

As a result of these events, and as recognized by those who preceded me in the 2018 Conference in their conclusions, the Committee expressed concern at the dysfunctional operation of social dialogue and called on the Plurinational State of Bolivia to ensure compliance with the Convention. It also requested it to avail itself of ILO technical assistance to ensure without delay compliance with the Convention in law and practice and to accept an ILO direct contacts mission.

However, unfortunately, one year after the adoption of the Committee’s conclusions, none of the action requested from the Government has been undertaken. On the contrary, despite noting the proposal made publicly by the employers’ confederation in this respect for 2019 that the increase in the minimum wage could not exceed 2 per cent, as the annual inflation rate was 1.51 per cent, the Government systematically refused to engage in full consultations with representatives of private employers, as borne out in the numerous statements made to the press in which the various Ministers and representatives of the Bolivian Workers’ Confederation rejected any possibility of negotiation and tripartite discussion. On the contrary, as it has been doing all these years, the Government once again focused its attention on direct, single and exclusive negotiation with the Bolivian Workers’ Confederation. Negotiation sessions were held with Ministers between 27 and 30  April 2019, which finally resulted in the authorities of the Bolivian Government, under the leadership of their chief, and the leaders of the Bolivian Workers’ Confederation, signing an agreement on 30 April 2019, which was read out at a press conference, and which set at 3 per cent the increase in the minimum wage and 4 per cent for the basic wage. In both cases, these increases were much higher than the accumulated inflation rate of 1.5 per cent.

This agreement is flagrant evidence of the failure of the Bolivian Government to comply with the Convention. Contrary to the message conveyed by our authorities, this has had an effect on the economy and is reflected in the level of informality in our country, which is over 70 per cent, and the disincentive for investment and the contraction of employment due to the total lack of certainty among employers, who are finding it impossible to adopt the necessary measures and take the action required to assume the cost represented by the discretionary increase in wages, which moreover is retroactive to the month of January each year.

Finally, I have to say that our organization is convinced that the basis for any rule of law is faithful and in-depth compliance with the law and the standards by which each society chooses to be governed. For this reason, we continue to believe that, following all the efforts made for our complaint to be finally considered, reviewed and decided upon by the Committee in 2018, its conclusions cannot be simply ignored and overlooked by the national Government, and that this failure of compliance has as its only consequence the need to provide a report year after year to justify the unjustifiable. We therefore call on the Government to understand the gravity of this lack of compliance in view of the need for all the member States of the ILO to be subject to the supervisory bodies of this Organization to ensure compliance with the Conventions ratified by each country, and the Plurinational State of Bolivia cannot be an exception in relation to the supervisory bodies.

Government member, Brazil – A significant majority of the countries in the Group of Latin America and the Caribbean (GRULAC) thank the Government of the Plurinational State of Bolivia for the information provided. We welcome the efforts made by the Plurinational State of Bolivia to take into account the positions of both social partners in setting the minimum wage, as well as the needs of workers and their families and economic factors. We also note the existence of national mechanisms for dialogue with workers and employers, which also cover the implementation of Convention No. 131.

Taking into account, as indicated in the Sustainable Development Agenda 2030 that sustained, inclusive and sustainable economic growth will only be possible if wealth is shared and income inequality is addressed, we welcome the information provided by the Government of the Plurinational State of Bolivia on the progress achieved in reducing wage inequality through a real increase in the minimum wage and the consequent positive effects on poverty reduction and economic growth.

We reiterate the importance of the Convention in supplementing the protection of workers against unduly low wages. We also emphasize that the Convention does not impose a single model on all ILO member States.

We take into account the information provided by the Government of the Plurinational State of Bolivia on the consultations held with representatives of employers and workers for the determination of the minimum wage based on criteria of balance and equity. We also note the progress achieved since the last International Labour Conference in terms of compliance with the Convention.

Finally, we encourage the Government of the Plurinational State of Bolivia to continue its efforts to strengthen its mechanisms for consultation with the social partners.

Government member, Nicaragua – My delegation thanks the Government representative for the report presented to this Committee. We commend the Government of the Plurinational State of Bolivia for having continued the consultations with the partners involved and employer representatives on wages, and for the establishment of the working dialogue round tables at the highest level of the Government with the representatives of the conference of employers in the country. We emphasize that the Government, in addition to taking into account the position of both social partners, considers the criteria set out in Article 3 of the Convention. We also welcome the fact that, as a result of the Government’s conciliatory and inclusive wage-setting policy, the Plurinational State of Bolivia is among the most successful countries in the region in terms of reducing wage inequality, according to World Bank data. Similarly, we emphasize that Bolivia has taken the lead in economic growth in the region, tripling GDP per capita in the country over the last 13 years, with an increase of 12 per cent.

We encourage the Government of the Plurinational State of Bolivia to continue making efforts to achieve the effective and comprehensive development of the country with a view to good living.

Employer member, Argentina – As indicated by the previous speakers, ensuring tripartite social dialogue as a condition for the setting of the minimum wage offers a series of benefits that are globally recognized. In contrast, when its level is determined ignoring the situation faced by producers in each country, it can be transformed into an obstacle for the creation of genuine employment. At the 107th International Labour Conference in 2018, this Committee requested the Government of the Plurinational State of Bolivia, among other matters, without delay to carry out full consultations in good faith with the most representative employers’ and workers’ organizations and to take into account when determining the level of the minimum wage the needs of workers, but also other economic factors, such as inflation, levels of productivity and the requirements for the economic development of the country, in accordance with Article 3 of the Convention.

We are concerned that there has been no response to the request by the Office to send a direct contacts mission and that the decision was taken to go forward with a new increase in the minimum wage without consulting the constituents. This concern is greater due to the absence of information on the elements that were taken into consideration and the manner in which they were weighted for the determination of the level of the minimum wage.

The Employers hope that the Members of the ILO give effect in good faith to the Conventions that they have ratified and listen carefully to the recommendations of the supervisory bodies. The opposite would imply disregarding, and particularly failing to take advantage of the benefits of social dialogue at the various levels and disregarding the international standards that have been ratified, a decision that would in the end have an impact on the whole of the population.

In conclusion, we hope that this Committee will urge the Bolivian Government to receive a direct contacts mission and accept the comments of the supervisory bodies, taking advantage of the technical support of the Office to ensure the tripartite consultation of employers’ and workers’ organizations and to give due weight to the different economic variables that have to be taken into consideration for the determination of the minimum wage.

Observer, IndustriALL Global Union – I am speaking in the name of the IndustriALL Global Union, representing over 50 million workers worldwide. We have read the Committee’s reports and recommendations on the application of the Convention, and, in particular, we have taken note of the recommendation to the Bolivian Government to carry out full consultations in good faith with the most representative employers’ and workers’ organizations with regard to minimum wage setting; and to take into account when determining the level of the minimum wage the needs of the workers and their families.

We have heard reports from the Bolivian Workers’ Confederation – la Central Obrera Boliviana (COB), that in 2019, the Bolivian Government held consultations and negotiations with the representative employers’ organization and with the COB to establish and adjust the national minimum wage. As you may be aware, in Bolivia the minimum wage is the lowest amount a worker can legally be paid for his work, meaning that employers in Bolivia who fail to pay the minimum wage may be subject to punishment by Bolivia’s Government. Our understanding was that this year, in 2019, the only proposal that came from the employers’ organizations was to not increase, hence to “freeze” the national minimum wage, while on the other hand, the COB carried out ample national consultations with their membership and presented their proposals and set of recommendations to the Government.

In June 2019, the national minimum wage stands at 2,122 bolivianos per month, which is equivalent to US$306 per month. It may be useful to recall that between 2001 and 2019, the average minimum wage in Bolivia used to range around 1,009 bolivianos per month (roughly US$140 per month) and actually remained stagnant around US$55 per month in 2001. Hence, we note that since President Evo Morales took office in 2006, the minimum wage has increased over 300 per cent in the interest of workers. This latest increase in 2019, of around 3 per cent, is slightly above the inflation rate of 2.3 per cent (according to the IMF) and remains below the country’s annual growth rate of around 5 per cent (as the World Bank says).

“Raising real incomes for workers to boost domestic demand remains one of the pillars of Bolivia’s sustained economic growth, which has been keeping it as the South American leader in recent years.” As the Vice-Minister of Labour Hector Hinojosa has reported, the consecutive increases of the minimum wages in the Plurinational State of Bolivia over recent years has corresponded to steady economic growth and the development of internal markets, as well as to the development of productive and service sectors.

Already several years ago, the UN Economic Commission for Latin America and the Caribbean (CEPAL) declared that: “Gradual increases in the minimum wage contribute to reducing inequality and have no significant adverse effects on aggregate employment.” Taking into account the progress achieved during the recent negotiations on the national minimum wage between the Government and the COB, we consider that it is important to encourage the Bolivian Government to continue advancing and implementing social dialogue and to pursue all efforts to bring the employers to negotiate in good faith. IndustriALL trusts the COB will continue to support the implementation of a socially responsible and inclusive economic policy.

Government member, Bolivarian Republic of Venezuela – The Government of the Boliviarian Republic of Venezuela welcomes the presentation by the distinguished representative of the Plurinational State of Bolivia in relation to compliance with the Convention. We welcome the fact that, within the context of compliance with the Convention, the Government of the Plurinational State of Bolivia is taking into account the need to protect workers against low pay with a view to reducing extreme poverty and with the objective of ensuring that workers can provide for their own needs and those of their families, in the light of socio-economic factors.

It should be emphasized, as indicated by the Government of the Plurinational State of Bolivia, that it is developing dialogue and consultations with the sectors involved for the setting of the minimum wage. We are sure that the Government of the Plurinational State of Bolivia will continue to give effect to the Convention by setting the minimum wage with increases that continue to benefit the workers.

The Government of the Bolivarian Republic of Venezuela hopes that the conclusions of this Committee, resulting from the debate, will be objective and balanced, based on the explanations and information provided by the Government of the Plurinational State of Bolivia.

Employer member, Chile – The Committee is having to examine once again the case of the Plurinational State of Bolivia in relation to the implementation of Convention No. 131. We must regretfully note, as the Committee of Experts does in its 2018 observation, that the Government of Bolivia has not given effect to the recommendations contained in the conclusions adopted by this Committee last year.

In particular, it is a matter of concern that the Government of the Plurinational State of Bolivia is persisting in not holding full consultations in good faith with the CEPB, in its capacity as the most representative employers’ organization. This situation, which has persisted for many years and has been the subject of various observations by the Committee of Experts since 2004, must be resolved as soon as possible to protect decent work and the sustainability of enterprise activity. The imposition of increases in the minimum wage without taking into consideration the diverse realities of private enterprise gives rise to uncertainties that can end up making formal activities by enterprises unfeasible. It is therefore important that, when setting the minimum wage, the criteria and proposals of employer and worker representatives are taken into consideration.

An April 2018 report by the ILO indicates that the informal economy employs over 60 per cent of the active population in the world. In this regard, the rate of informal work is also high in the Plurinational State of Bolivia. For this reason, it is important for the Government to enter into dialogue with all of the social partners to listen to their views and, in so doing, develop policies that promote formal and protected work. In this respect, the imposition of increases in the minimum wage without taking into consideration their impact on private sector activity can have the effect of pushing back the formalization of employment, thereby affecting the sustainability of formal enterprises.

For this reason, in the same way as the Committee of Experts in its observation in 2018, and its previous observations in 2004, 2006, 2007, 2008 and 2009, we respectfully call on the Government of the Plurinational State of Bolivia to proceed without further delay to hold full consultations in good faith with the most representative organizations of employers and workers on the setting of the minimum wage, and to respond to the request made by this Committee last year for an ILO direct contacts mission to visit Bolivia in the near future to try and determine the facts and examine in situ the possibilities for resolving the problems that have arisen.

Worker member, Bolivarian Republic of Venezuela – The workers of the Bolivarian Republic of Venezuela give our support to our comrades in the COB in all the action that they have taken to defend the wages of men and women workers from the onslaught of inflation. We support the Government of Bolivia, under the leadership of comrade Evo Morales, a worthy representative of the working and rural classes, in its efforts to maintain the purchasing power of wages and in the consultations and social dialogue undertaken with the participation of the COB and the CEPB. We emphasize that both the workers and the Government confirm that consultations and social dialogue were held for the setting of the minimum wage on 1 May 2018 and twice in 2019, and that the Employers indicate that they were not consulted.

In the Bolivarian Republic of Venezuela, employers are maintaining almost absolute silence on the rise in inflation, largely caused by the manipulated rise in prices that are not in accordance with the structures of the cost of production, while they cry scandal when a Government that is committed to social justice and peace engages, through social dialogue, in wage increases that protect workers from the wave of inflation by maintaining the minimum purchasing power for subsistence.

This behaviour by the CEPB appears to be part of a repetitive cycle of employers’ organizations affiliated to the IOE, which focus on confronting governments that promote policies of social justice, maintain a policy of productive growth, guaranteeing the adjustment of the distribution of wealth, providing social security for formal and informal workers and promoting decent and rural work, as the Government of Bolivia is doing.

We draw attention to the adoption of measures of interference in the internal affairs of Bolivia which, far from being a means of promoting social dialogue and peace, are being converted into a public relations and media campaign to generate international disapproval of the Government and society in Bolivia, as has occurred recently with the sister Republic of Nicaragua and also with the Bolivarian Republic of Venezuela, by seeking to obscure the immense social progress and giving rise to subsequent and continuous measures of pressure. In conclusion, we support and encourage the Government of the Plurinational State of Bolivia to continue developing social dialogue.

Government member, China – The Chinese delegation has listened carefully to the statement made by the representative of the Bolivian Government. We have noticed that in recent years the Bolivian Government has established a consultation mechanism on wages for employees, a dialogue mechanism with social partners and policies related to the determination of wages benefiting both employers and employees. The wage gap between workers and the number of the poor have been effectively reduced and the per capita GDP, the number of enterprises and the size of the middle class have continued to expand. We believe that the Bolivian Government has demonstrated positive political will and made tangible efforts to comply with relevant international Conventions. The Chinese delegation supports the Bolivian Government’s continued dialogue with the partners concerned and hopes that the ILO will provide necessary technical support to the Bolivian Government.

Government member, Cuba – The Government of the Plurinational State of Bolivia has indicated that a mechanism for direct tripartite consultation has been established for the determination of the minimum wage and also for social dialogue with the respective social partners. It also reported that social dialogue includes specific consultations, through working round tables established at the highest level. It has told this Committee that it took into account the position of both partners in the process of increasing the minimum wage. For that reason, it considered the needs of workers and their families, the cost of living, economic factors, levels of labour productivity, among other relevant aspects. The Government’s wage policy has had positive effects by reducing unemployment and promoting public and social investment, all for the benefit of its people. The results described are clear and show the Government’s political will and commitment to comply with the Convention. They must therefore be allowed to apply their measures in an environment of cooperation and exchange, without pressures which could distort the Government’s policy of the protection of social justice.

Worker member, South Africa – I am speaking on behalf of the Southern African Trade Union Coordinating Council (SATUCC) concerning the application of Convenion No. 131 by the Plurinational State of Bolivia. Regarding the Employers’ claim that increases to the minimum wage in the Plurinational State of Bolivia are increasing the informality, it would be important to ask the Employers on what data they are basing this allegation.

Although unfortunately there appears to be no available data on the evolution of informal economy activity in the past three years, the Plurinational State of Bolivia’s Ministry of Economy and Public Finances has reported that informality has fallen substantially over the last two decades in the Plurinational State of Bolivia, from 68 per cent in 1991 to 46 per cent in 2015. Furthermore, the largest share of the fall in informality was recorded precisely between 2006 and 2015. This fall corresponded precisely to the steady increases in the minimum wage in the Plurinational State of Bolivia that have taken place since 2006. The Ministry also reported that the decline in informality was the second largest among 158 countries studied, after Uruguay.

At the international level, several studies, in particular a paper from OECD economists on the effect of minimum wages in ten emerging economies, concluded that minimum wages do not appear to increase informality. In fact, studies show that minimum wage is helping to address issues of working poverty.

Taking into account the progress in the recent negotiations on the national minimum wage between the Government and the COB, we consider that it is important to encourage the Bolivian Government to continue advancing social dialogue and to pursue all efforts to bring the employers to negotiate in good faith.

Government member, India – My delegation welcomes the delegation of the Government of the Plurinational State of Bolivia and thanks it for providing the latest comprehensive update. We appreciate the inclusive economic development agenda being actively pursued by the Government of Bolivia while taking positive steps to fulfil its international labour obligations related to decent work and social justice. This includes minimum wages that are fully aligned with the object and purpose of the Convention, availing the flexibility provided in it in accordance with its national context and priorities. The steps taken by the Government of the Plurinational State of Bolivia towards a balanced wage policy and social dialogue mechanism, especially with those representing the more vulnerable, have brought tangible and substantial reductions in national wage gaps and poverty levels and have raised the standard of living of its people, in addition to other benefits to the general economy and society creating a win–win situation for both the employers and workers. We request the ILO and its member States to constructively engage with, and fully support, the Government of the Plurinational State of Bolivia including through the work of this Committee in realizing its labour-related socio-economic goals as well as in fulfilling its labour-related international obligations. We take this opportunity to wish the Government of the Plurinational State of Bolivia all success in its endeavours.

Government member, Argentina – The Government of Argentina once again reaffirms its commitment to this Organization, as well as to social dialogue in its Centenary year. We give thanks to the representatives of Governments and the various social partners who have taken the floor on this item. We listened carefully to the intervention by the Government of the Plurinational State of Bolivia in which it provided details of the action taken to achieve an economy that is growing, stable and generates employment, and which has therefore substantially reduced the unemployment rate and decreased poverty.

The Plurinational State of Bolivia adopted Convention No. 131 taking into account the need to increase the protection of workers against low wages. As a result, the wage-fixing policy in this country has had benefits, both for the private sector and for workers. The World Bank has recognized that Bolivia is among the leading countries in the Americas in the reduction of wage inequality.

With Convention No. 131 and its effective application, the Plurinational State of Bolivia is taking action in the world of work to give workers an identity and dignity. It is also following the principles of the Sustainable Development Agenda 2030 and, as a future full member, is aligning itself with the principles of the Social and Labour Declaration of the Southern Common Market (MERCOSUR), which include the requirement to establish a minimum wage.

Argentina encourages the Government of the Plurinational State of Bolivia to maintain its efforts to strengthen mechanisms of full consultation with the social partners, thereby ensuring their full participation in setting the minimum wage and definitively resolving this complaint. It suggests that it accepts the direct contacts mission, as it said it would in the Conference last year, with a view to assisting, supporting and ensuring that all the social partners feel that they are participating in the progress indicated by the Government of Bolivia.

Worker member, Nicaragua – Before beginning my intervention, I wish to convey our solidarity to the Government, the people and the family of the miner who died today following an accident in a mine in Chile, and our solidarity with the family.

In life, we come across options that govern us – the ideal, the reality, the desirable and the possible. In which options do we place the case that we are examining here? The ideal for employers is for there to be no increase in the minimum wage, the reality is that men and women workers require better incomes to improve their lives. In this respect, the Government is taking the best option and as a result is continuing to reduce poverty.

When employers use consensus as a veto, as in the present case, it is necessary to find a bilateral or unilateral way out. From the experience of the model and alliance, consensus and dialogue practised in Nicaragua, when the minimum wage is set in the tripartite commission, if the workers and employers do not reach agreement, the Government determines the percentage wage increase that will be applied and, even if we do not like the result, we abide by the decision.

The Government of the Plurinational State of Bolivia, under the leadership of President Evo Morales, has developed the economy through sustained growth, the highest in the Andean region, with social programmes that have resulted in the reduction of poverty. It has been demonstrated that, with higher incomes, women and men workers have greater purchasing power, which facilitates the exchange and movement of goods, strengthening the market, which in turn results in greater sales and profits for employers. As a result, when the latter oppose decisions designed to distribute wealth, they are acting against their own interests.

The Employers repeatedly bring before the Committee governments that endeavour to apply national laws that restore adequate wage rights which are in accordance with standards of living. As workers, we recognize that tripartism is a required model to seek good labour relations, and we therefore urge the Government to continue reinforcing tripartism in accordance with the Convention.

Government member, Algeria – I first wish to thank the Government of Bolivia for the information provided concerning the setting of the minimum wage. Algeria is of the view that the considerations expressed by the Government are totally praiseworthy and that work must continue on establishing the criteria for setting minimum wages. That is in line with the objectives of the Convention in terms of the setting of minimum wages, as well as the provisions of Article 3 of the Convention, which takes into account in particular the needs of workers and their families, and all the related economic factors.

In practice, the Convention contains several flexible provisions in relation to the adoption of adequate criteria for the setting of minimum wages as a function of the situatiion in each country. That is why Algeria considers that the Government of Bolivia has assumed its responsibility to guarantee that economic and social conditions are taken into account in the setting of minimum wages.

In conclusion, consultations with workers and employers and the commitment to give effect to the Convention can have the best impact in terms of the setting of minimum wages, but that has to happen within the framework of the work that is already under way.

Employer member, Honduras – Today once again we are protesting against the terrible lack of respect by the Government of the Plurinational State of Bolivia towards employers in the country. We regret that, despite the clear conclusions adopted by this Committee at the 107th Session of the International Labour Conference in 2018, the Government of the Plurinational State of Bolivia has not given effect to them, thereby showing its lack of respect for the ILO supervisory bodies.

It cannot be possible for the Plurinational State of Bolivia to continue setting minimum wages while disregarding technical criteria such as inflation and productivity indices, among others. It is even more serious and worrying that minimum wages are determined without engaging in full consultations with employers’ representatives, who have the commendable responsibility of generating decent jobs in this country. We wonder how decent jobs can be created if the entity that is responsible for protecting the rights set out in international labour standards is precisely the one that is failing to comply with their provisions. The Government of the Plurinational State of Bolivia has introduced disproportionate increases that are out of line with the economic situation in the country between 2006 and the present.

The increase in the national minimum wage has reached the accumulated rate of over 300 per cent, as the overall result of the increases made each year, which is giving rise to higher rates of informality in the country.

It is not only a question of the failure to comply with the requirement of consultation for the setting of minimum wages, in accordance with the Convention, nor the requirement derived from a technical provision of a Convention; it is a serious failure to respect the fundamental principles that inspired the creation of the ILO.

It is not possible for the Committee of Experts to regret in its report the follow-up to the conclusions of the Conference the previous year, and that the Government of the Plurinational State of Bolivia still has not replied to the request by the Committee to send a direct contacts mission.

The situation in the Plurinational State of Bolivia is very serious, and we therefore categorically call for it to be included in a special paragraph of the General Report to place emphasis on the worrying situation in Bolivia.

Worker member, Argentina – I am speaking on behalf of the General Confederation of Labour of the Argentine Republic (CGT-RA), the Confederation of Workers of Argentina (CTA Workers) and my confederation, the Confederation of Workers of Argentina (CTA Autonomous). The Committee of Experts noted that the Conference Committee urged the Government without delay to carry out full consultations in good faith, taking into account the needs of workers and economic factors, in accordance with Article 3 of the Convention, to avail itself of ILO technical assistance and to accept a direct contacts mission.

The Committee of Experts noted that the Government indicated in its report that the minimum wage had been increased and that socio-economic factors were taken into account, such as inflation, productivity and consumer price indices, and that informal consultations were held with both the CEPB and the COB. The Government also indicated that both parties maintained their positions, and the matter was therefore resolved accordingly.

In its conclusions, the Committee of Experts regretted the lack of authorization for a direct contacts mission. It is important to note that, in its analysis, the Committee of Experts only refers to formal matters as illustrations of the failure to comply with the conclusions. However, beyond formal matters, we believe that there has been significant progress in economic factors, as well as in the introduction of the minimum wage which, in our view, is a substantial part of the subject covered by the Convention.

Consultation can be informal, joint, individualized, regular, simultaneous and, in any case, in accordance with the customs and usages of each government. In this respect, Recommendation No. 113 does not establish any specific form for it to be carried out and, similarly, the Committee on Freedom of Association, in Case No. 1533, does not make any reference to a specific form of consultation. Consultation is not an institution referred to solely in Convention No. 131, but also in many international standards, including Conventions, Recommendations and Declarations, which refer to consultation as part of a system of tripartite relations. Consultation forms part of the system proposed by the ILO 100 years ago. It involves seeking common ground between parties whose interests are naturally opposed, but it is not, as maintained by the Employers, collective bargaining. Convention No. 98 is not applicable. It would be desirable for the Committee of Experts to engage in a more general analysis in its conclusions concerning Convention No. 131, taking into account the results achieved and examining whether they are in accordance with the institution of a minimum wage.

It would be necessary to determine whether this very important instrument has fulfilled its purpose and whether it is in accordance with the needs of workers. And I believe that if it fulfils these conditions, the means by which consultations are held, even though important, are of lesser significance. We believe that, in this respect, there has been significant progress in the setting of the minimum wage, that the objective has been met and that there has been a sustained increase in real wages.

The setting of the vital and mobile minimum wage is of fundamental importance in establishing the starting points for collective wage bargaining and, in accordance with the Convention, no worker may remain below that level. For this reason, the vital and mobile minimum wage has been, throughout the history of capitalism, a tool that States can use to confront crises. It is fundamental when applying anti-cyclical policies and we hope that the history of the last 100 years will include this institution and that the Convention will be included in the fundamental ILO Conventions.

Government member, Uruguay – Although Uruguay forms part of the significant majority of GRULAC countries which have made a previous intervention, it wishes to take the floor in its national capacity. Our Government places special value on certain of the indicators referred to in the report, such as the improvement in the Gini Coefficient, the increase in real wages and the reduction of extreme poverty, which shows that government decisions have been adopted with a view to improving wages, leading to a better quality of life for the population.

Moreover, we recognize the efforts made by the Bolivian Government to promote social dialogue and find a satisfactory solution for all the parties through collective bargaining, in accordance with the context and characteristics of the country.

It may be recalled that Article 3 of the Convention sets out criteria that have to be taken into consideration when determining minimum wages: the needs of workers and their families, taking into account the general level of wages in the country, the cost of living, social security benefits and the relative living standards of other social groups; as well as economic factors, including levels of productivity and the desirability of attaining and maintaining a high level of employment.

In this light, and taking into consideration the role of wages in subsistence, we understand that, in relation to the conclusions of the last session of the Conference, the Government of Bolivia has made significant efforts to promote agreements that encompass all workers, giving priority to the well-being of the population and the needs of workers who earn lower wages. They have resulted in important progress for Bolivian society.

We encourage the Government and the social partners to continue along the path of dialogue to find solutions that are satisfactory for everyone and to continue providing protection and ensuring benefits for Bolivian society.

Employer member, Brazil – This is a case that we know well in this Committee and for which we requested the Government of the Plurinational State of Bolivia to take the necessary measures to achieve conformity with the Convention. Employers in the Plurinational State of Bolivia have not had social dialogue as established by the principles of the Convention for the setting of minimum levels of wages for over ten years.

The Committee has repeatedly called on the Government of the Plurinational State of Bolivia to hold the necessary tripartite consultations, listening effectively to employers, as required by Article 1 of the Convention; to set minimum wage levels following full consultations with the social partners, but this has not happened, which has led this Committee to make recommendations along the same lines in recent years. On a total of eight occasions since 2006, the members of this Committee have called for a response in practice to the claims of the employers of the Plurinational State of Bolivia.

It is a matter of great concern for employers that, for many years, no tangible evidence has been provided of the full consultations held with the social partners, and particularly employers in the Plurinational State of Bolivia, as the conclusions of the Committee have been requesting for a long time.

Brazilian employers call urgently for the re-establishment of tripartite social dialogue in the Plurinational State of Bolivia so as to comply in practice with the Convention, in view of the risk of making the serious levels of informality in the country worse. We also urge the Government of the Plurinational State of Bolivia to give effect to the recommendations that this Committee made in 2018 with a view to achieving a definitive solution, complying with the requirements of the Convention and engaging in effective and full consultations with Bolivian employers.

Government member, Egypt – We would like to thank the representative of the Government of the Plurinational State of Bolivia for the information which has been given to the Committee relating to the mesures taken by the Government for the application of the provisions of the Convention. We have heard reports of consultation that has taken place with the social partners to consider all of the elements of establishing the minimum wage. If we consider what we have heard and recognize the importance of a minimum wage for social justice together with all of the social partners, we have to recognize the value of the measures taken by the Government of the Plurinational State of Bolivia to effectively implement the Convention and would urge them to continue their dialogue with all of the social partners when deciding at what level to set the minimum wage. We think that these factors should be taken into account when drafting the conclusions.

Employer member, Uruguay – The Government has referred to the economic growth in the Plurinational State of Bolivia, its political and social stability, the decrease in poverty and the improvement in social conditions in general, especially for the most vulnerable. Social improvements are a very important achievement for any country, particularly in our region of Latin America where the shortcomings are so great. We must emphasize and welcome any improvement in this respect. However, it bears no relation whatsoever to the observation made by the ILO and our Committee, and could even be omitted when drawing up the conclusions for this session.

Coming back to the facts, we see that it has not been possible to demonstrate the holding of “full” consultations with representatives of employers, as required by the Convention. On the contrary, we could say that the situation is more serious than when we examined this case last year. On 30 April this year, the Government concluded an agreement with the Bolivian Workers’ Confederation in which, in addition to negotiating the minimum wage, matters were addressed relating to labour standards, production and the economy. There was no dialogue. Employers’ representatives were not heard on any of these subjects. And the absence of dialogue for the establishment of a minimum wage is only an indicator that must act as an alert.

Based on the experience of the ILO, it is easy to anticipate what happens when, in one of our countries, over a long period of time, one of the social partners is ignored, excluded or rebuffed from the possibility of holding real dialogue. We hope that the ILO will provide specific support to the Plurinational State of Bolivia and that the Plurinational State of Bolivia will accept that support so that it can give effect to the Convention rapidly.

Government representative – At this stage, we have to clarify a number of aspects. First, we have indicated that during these 13 years of government we have managed to achieve economic stability for our country. This is reflected in such facts as, for example, the international crisis did not affect businesses in our country. Second, there has been absolute security for the financial system, which has grown considerably.

During the intervention by the Workers’ representative, an allusion was made to a reference indicating that the IMF considers that the economy will be seriously affected. We have another IMF source which agrees that the Plurinational State of Bolivia will have the highest growth in the region in 2019. We believe that we are acting with sufficient responsibility. The qualification of the economic stability of our country was not by us, but by others who see from close up how we are managing the country. In this respect, we have received very positive reviews from the World Bank itself and the Economic Commission for Latin America and the Caribbean (ECLAC), which place emphasis on the economic development and economic stability of our country.

The Employers’ representatives were clear in their indication that there were two meetings. Indeed, we also said at the outset that two meetings were held and that they touched upon the subject of wages. The Employers’ representative said that the subject of wages was not addressed, and yet the Employer member of the Plurinational State of Bolivia, Pablo Carrasco, reported the subjects covered in the meetings and said that in the Plurinational State of Bolivia reference is made to a minimum wage and a basic wage. This shows that the discussions in these meetings referred to the subject of wages, the minimum wage and the basic wage. However, in this respect, it is also necessary to take into account the manner in which the media in my country reported these meetings. One media channel indicated, quoting Luis Barberi, President of the CEPB: “it was a very positive meeting where the private business sector, that we are leading in the CEPB, was able to express concern and also our position of working for the Plurinational State of Bolivia.” More specifically, with regard to the subject of wages, another publication referred to Mr Barberi, and reported not only discussions of the minimum wage and the basic wage, but also of percentages. With respect to the percentage proposed by the employers and the percentage proposed by worker representatives, analysis was undertaken of the inflation rate, GDP growth and all the other factors. When the meeting ended, the President of the CEPB indicated, as reported in the media, that: “It seems to me a little higher than what we were thinking of, than what can be given, making efforts to be able to cover the erosion suffered by wages due to inflation, with us going from the 1.5 per cent inflation rate to 2 per cent, which was the proposal that we made.” It is clear that in these dialogue forums the subject of wages was discussed, which was their purpose.

We assume with sufficient responsibility compliance with the Convention. In addition, we must note another aspect. In one of the interventions, it was said that in the Plurinational State of Bolivia close contacts and the entry of employers into the Ministry of Labour is not allowed.

Meetings were held with the very representative of the employers of the country in an economic forum, and more specifically, a meeting with the National Chamber of Exporters of Bolivia in the Ministry of Employment, in the premises of the Ministry of Labour, Employment and Social Welfare of the Plurinational State of Bolivia. It is clear that we do not close our doors: indeed, we keep our doors open and we are always available for any type of dialogue on any subject, because that is our democratic vocation.

We are concerned at the economic situation of the country and the situation of employers. For this reason, alongside the meetings that are held to set the minimum wage, we are implementing employment plans and programmes. When we implement these employment plans and programmes, we help employers in various ways: as we understand that the provision of training to a worker to be integrated into the workforce can represent a cost, the State subsidizes the process of the training of the worker. Another example is that we assume the cost of coverage by the social security scheme in the short term in the context of support programmes for employment. These are some of the ways in which we take measures to support and strengthen employers in the country.

In this respect, as the Bolivian State, we reiterate and reaffirm our democratic vocation, with our deep respect for integration processes, and we take sufficiently seriously the role played by the International Labour Organization. For this reason, we come to the Conference with the most absolute truth concerning democratic practices in the Plurinational State of Bolivia. Clearly, under the terms of our Constitution, it is our duty to comply with international conventions and, as we said, with regard to this Convention, we are also committed to continuing to engage in full dialogue with the social partners with a view to setting a minimum wage that is balanced and adequate.

Employer members – We respect the interventions of Governments, Workers and our colleagues the Employers. For a correct analysis of the case, we need to keep to the facts. The Government of the Plurinational State of Bolivia has not engaged in full consultations with the most representative, free and independent employers’ organizations on the setting of minimum wages. That is a fact. The Government of the Plurinational State of Bolivia has a policy of not consulting employers’ organizations. That is a fact. The Government of the Plurinational State of Bolivia concluded an agreement on wage increases solely with workers’ organizations. That is a fact. The Government of the Plurinational State of Bolivia did not give effect to the call made by this Committee for the sending of a direct contacts mission. That is a fact. Some people in this room wish to minimize or simply deny these facts. That is also a fact.

The point at issue should not be whether or not the minimum wage must be raised in the Plurinational State of Bolivia. That needed to happen in the country through full consultations with the social partners, which did not happen. That is also a fact.

We are pleased, however, to note the similarities between the positions of the Workers’ group, the Employers’ group and many of the Governments which intervened in the discussion on the importance of social dialogue and full consultation with the social partners, as well as the fact that in practice the good faith of all the parties must prevail in social dialogue.

We hope that the Government will take good note of these views and will make use of social dialogue as a tool for the development of good relations with employers and workers, and with the legitimate purpose of collaboration between the social partners and governments with a view to the design and implementation of policies for the benefit of society. In this regard, we endorse the concepts set out in Recommendation No. 113, which invites us to take measures appropriate to national conditions to promote effective consultation and cooperation at the industrial and national levels between public authorities and employers’ and workers’ organizations, as well as between these organizations, with a view to developing the economy as a whole, improving conditions of work and raising standards of living. The Recommendation also clarifies that consultation should have the general objective of promoting mutual understanding and good relations between public authorities and employers’ and workers’ organizations.

We also respectfully suggest that the Plurinational State of Bolivia should consider the ratification of the Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144). So doing would offer a firm demonstration of the vocation of dialogue that the Government representative has claimed during the discussion.

At this stage of the discussion, it has become very clear that the present case is considered to be serious by the Employers. It should also be seen as such by Workers and Governments which consider that States are called upon to honour their international commitments and comply with their own legislation. We are faced with a case of serious failure to comply with standards which require the holding of full consultations in good faith. The situation is to the prejudice of employers, but could eventually also be to the prejudice of workers, for which reason we are all called upon to defend equally the principle that has been violated.

The case is serious in view of the subject addressed, as we know that social dialogue is a pillar of the ILO. But it is also serious because it is a case of a conscious and deliberate omission. This Committee must place emphasis on this seriousness, as failure to do so would irremediably affect the credibility of the ILO standards supervisory mechanisms.

In 2018, we clearly expressed our concern at the statement made by the Government representative, who made it clear that there would be no change in the conduct that is in violation of the Convention. This is what happened in practice, as clearly illustrated during the discussion.

For these reasons, we propose that in the conclusions to the present case emphasis is placed on the gravity of the situation and the Government of the Plurinational State of Bolivia is urged once again to immediately engage in full consultations with the social partners on the setting of minimum wages, to report on the action taken to the Committee of Experts in its next report prior to its 2019 session. We also propose that a request is made for it to accept without further ado a direct contacts mission and the technical assistance of the Office.

Finally, in view of the gravity of this matter, we call for the conclusions on this case to be included in a special paragraph of the report of this Committee.

Worker members – As indicated during the course of the discussion, the minimum wage has played a relevant role in the socio-economic changes in the Plurinational State of Bolivia.

In the context of Latin America, the Plurinational State of Bolivia has made notable progress. According to updated 2019 data, the minimum wage in this country is in sixth place in terms of United States dollars. According to ECLAC data, forecasts for progress in Latin America in 2019 place the Plurinational State of Bolivia in third place. The growth rate is 4.3 per cent, which is much higher than the average of 1.7 per cent for the region.

And yet, it is argued that minimum wages have been increased by more than the accumulated inflation rate, which is precisely one of the functions that have to be fulfilled by minimum wages. The Committee of Experts itself, in its 2014 General Survey, indicated that: “Although the Convention does not specify the types of needs that have to be met, it should be borne in mind that the Preamble to the ILO Constitution proclaims that an improvement of conditions of labour is urgently required, in particular the provision of an adequate living wage.” The Committee of Experts emphasized in Chapter I that the concept of living wage takes into account more than the satisfaction of food, housing and clothing needs, and includes the possibility of participating in the country’s social and cultural life.

It is precisely the growing participation in national income that is affording access to full participation, or the path towards full participation, in the social and cultural life of the Plurinational State of Bolivia. It must not be forgotten that the minimum wage has to take into account not only the needs of individual workers, but also those of their families. As indicated in the Meeting of Experts in 1967, we must never overlook the fact that when we are dealing with wages we are not dealing with an economic abstraction, but with the source of livelihood of millions of people.

As an illustration of the virtuous effects of an adequate level of minimum wages, the Plurinational State of Bolivia has experienced a fall by half in chronic child malnutrition in little more than a decade, according to reports also prepared by ECLAC. But social progress is not limited to wage earners, and includes the community as a whole. According to Oxford Economics, La Paz is among the cities in Latin America that will grow the most in 2019, preceding the large urban areas in the region. As an explanation for this situation, we cannot fail to take into consideration that the Plurinational State of Bolivia is the country that has increased the minimum wage the most over the past decade in Latin America, without affecting the most relevant macroeconomic variables and without inflationary consequences, such as those that have affected the economies of other countries.

The process of dialogue in the Plurinational State of Bolivia takes place within the context of a policy for the elimination of poverty, and its extension must certainly be associated with the notable progress achieved over the past 15 years.

As workers we reaffirm the importance of social dialogue and the necessary and effective consultations with the social partners prior to the setting of the minimum wage, as well as the importance for the Workers’ group of Convention No. 131. We note that there has been significant progress in this case. We therefore encourage the Government to accept the direct contacts mission recommended by the Committee in 2018, which would offer an opportunity to demonstrate the progress achieved.

We agree that effective consultations and the full participation of the representatives of employers’ and workers’ organizations are fundamental to guarantee solid, sustainable and widely accepted minimum wage-fixing machinery.

Conclusions of the Committee

The Committee took note of the information provided by the Government representative and the discussion that followed.

The Committee recalled the importance of full consultation with the most representative organizations of employers and workers, as well as the elements to be taken into consideration in determining the level of minimum wages as set forth in Article 3 of the Convention.

The Committee regretted that the Government has not responded to all of the Committee’s conclusions in 2018, specifically the failure to accept a direct contacts mission.

The Committee therefore, once again, urges the Government to:

- carry out full consultations in good faith with the most representative employers’ and workers’ organizations with regard to minimum wage setting;

- 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; and

- avail itself without delay of ILO technical assistance to ensure compliance with the Convention in law and practice.

The Committee requests the Government to elaborate in consultation with the most representative workers’ and employers’ organizations and submit a detailed report to the Committee of Experts by 1 September 2019 on the progress made in implementing these recommendations.

The Committee once again urges the Government to accept an ILO direct contacts mission before the 109th Session of the International Labour Conference.

Government representative: Firstly, the Government of the Plurinational State of Bolivia takes due note of the conclusions presented by the Committee and will undertake the appropriate analysis of the conclusions.

In addition, we are bound to regret the fact that the conclusions do not necessarily reflect the discussion within the Committee. They do not cover certain topics raised and highlighted by the speakers, such as the achievements and advances in the wage policy implemented by the Plurinational State of Bolivia, in relation to the purpose of minimum wage fixing established by the Convention itself.

In addition, the analysis conducted in the discussion did not focus on non-compliance; no views were expressed indicating that the Government of the Plurinational State of Bolivia has failed to comply with the recommendations.

We also notice that the conclusions do not cover aspects referred to by the various countries and others that made statements. The wage policy and economic policy that have enabled the fixing of the minimum wage in the Plurinational State of Bolivia for these last 14 years have been a success, and it was the actual speakers in the discussion who highlighted the fact that it is other organizations that recognize this progress.

So we reiterate that the purpose of the Convention is the fixing of the minimum wage in relation to the Convention itself with a view to establishing decent wages for workers in situations of inequality. Our policy will remain the same in relation to our democratic calling: to govern while listening to the people.