Observation (CEACR) - adopted 2022, published 111st ILC session (2023)

Employment Policy Convention, 1964 (No. 122) - Guatemala (Ratification: 1988)

The Committee notes the observations of the Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations (CACIF), supported by the International Organisation of Employers (IOE), received on 1 October 2020, and the Government’s reply, received on 14 November 2020. The Committee also notes the observations of the Autonomous Popular Trade Union Movement, Global Unions of Guatemala, received on 16 October 2020. The Committee requests the Government to provide its comments in this regard.

Articles 1 and 3 of the Convention. Implementation of a national employment policy. Consultations with the social partners. The Committee notes with interestthe efforts made by the Government to achieve the objectives of the Convention within the framework of a coordinated economic and social policy. In this connection, the Committee notes the launching in February 2017 of the National Decent Employment Policy (PNED) 2017-32, which is articulated with the National K’atún Development Plan 2032. The PNED was developed with the technical support of the ILO and the participation of a broad range of actors at the national and regional levels, including representatives of workers’ and employers’ organizations, and of women, indigenous peoples and youth. The PNED envisages the adoption of measures in four thematic areas: employment generation, human capital development, a conducive environment for enterprise development and formalization. The PNED includes priority measures for: persons with disabilities, returning migrants, older persons, the indigenous population, the LGBTI community, young persons with a criminal record and refugees. The Committee also notes that the Government reports the establishment of the National Decent Employment Commission (CONED) as the body responsible for the implementation of the actions envisaged in each of the four thematic areas of the PNED through a Technical Institutional Round Table composed of four subcommittees which include representatives of employers’ and workers’ organizations. The thematic priority of employment generation includes among its priority actions the implementation of: (i) the National Plan for the Generation of Decent Employment, which envisages the adoption of measures with a view to the generation of decent jobs in sectors that make a greater contribution to the economic growth and competitiveness of the country; (ii) the National Programme of Migration for Development, which has the objective of putting to good use the knowledge acquired abroad by Guatemalan migrants which are applicable to national development; and (iii) the Programme for the Reinforcement of the Public Employment Service, which envisages the adoption of measures to improve the functioning of the National Network of Employment Services. The Committee also notes the information provided by the Government on the measures implemented within the context of the reinforcement of public employment services, such as the organization of employment fairs and kiosks, the establishment of a window for returning migrants and the conclusion of agreements with organizations focussing on migrants. Finally, the Committee notes the statistical data provided by the Government on the number of persons in vulnerable groups who received guidance and were helped by public employment services to enter the labour market in 2019 and 2020.

However, the Committee notes that the Trade Union Movement, in its observations, considers that there is no effective national employment policy promoting decent work so that citizens have the opportunity to choose work in accordance with their capacities and experience. The Trade Union Movement indicates that, as a consequence, work in the informal economy is growing disproportionately and part-time work is increasing in the formal economy, which is resulting in a reduction in workers’ rights, such as the right to social security and to receive the minimum wage. Moreover, the rise in unemployment and migration to departmental and local capitals is increasing further. The Committee requests the Government to continue providing detailed and updated information on the nature, scope and impact of the measures adopted to promote full, productive and freely chosen employment, including those adopted within the framework of the National Decent Employment Policy (PNED) 2017-32. It also requests the Government to provide information, including specific examples, on the manner in which consultations have been held, and their views taken into consideration, with employers’ and workers’ organizations and representatives of other groups affected (such as women, young persons, indigenous peoples and workers in the informal economy) with a view to the development and implementation of employment policies and programmes, as well as the nature, scope and outcome of the consultations.

Education and training. The Committee observes that the thematic area of the PNED covering the development of human capital includes, among other priority action, the implementation of the National Youth Training Programme in Transversal and Specific Skills with the objective of promoting training for work. The Government indicates that, within this context, Ministerial Decision No. 3386-2018 was approved institutionalizing the National Labour Training System (SINAFOL) as the structure which manages and articulates the government institutions, the productive sector and the social partners with a view to determining and implementing technical education and training policies and strategies in the country. The objectives of the SINAFOL include the improvement of technical labour and vocational training, the reduction in the gap between the supply of training and productive demand, the design of training supply associated with occupational groups and vocational qualifications. The Government also refers to the creation of the National Vocational Training Commission with the objective of promoting the articulation and coordination of Government institutions, the productive sector and the social partners with a view to implementing and revising every five years the model of technical vocational training. In 2018, the Skills Certification System (SCC) was developed and its implementation was launched with the objective of recognizing and certifying the skills, knowledge, capacities, abilities and competences of persons engaged in trades and occupations learned over a lifetime. In this respect, the Government reports the establishment of various sectoral round tables for the development of national catalogues of families of occupations, vocational skills and training modules. The Government indicates that representatives of the productive sector and training related to each occupational family participated in these round tables. The Committee also notes the Government’s reference to the implementation of various vocational education and training programmes, including the implementation of the Guatemala Vocational Training Threshold Programme, with the support of the United States of America, which provides for the adoption of reforms in the education sector and the mobilization of resources with a view to improving the quality and pertinence of middle-level education; and the Labour Skills Certification Programme, which promotes the certification of the competences of citizens who have knowledge or skills. With reference to the latter Programme, the CACIF proposes to seek opportunities through other approaches, such as dual education. The Committee also notes the information contained in the Government’s report on the number of participants in the Technical Capacity-building for Employment Programme, through which capacity-building opportunities are provided to vulnerable groups (such as young persons who are neither studying nor working, the unemployed and underemployed, persons with disabilities and returning migrants) with a view to strengthening their skills and competences through the provision of a technical background and vocational training with a view to their appropriate labour market integration. The Committee requests the Government to continue providing updated information on the nature and impact, including statistical data disaggregated by sex and age, of the measures implemented in the field of vocational education and training in relation to potential employment opportunities. It also requests the Government to provide information on the measures adopted to ensure the effective coordination of vocational education and training policies and programmes with employment policies and programmes.

Labour market information. The Committee observes that, according to the data of the National Statistical Institute (INE), during the second half of 2019, the participation rate was 59.1 per cent (83.1 per cent for men and only 38.7 per cent for women) and the gross occupation rate was 58 per cent (81.7 per cent for men compared with 37.7 per cent for women). The Government adds that the open unemployment rate was 2 per cent (1.7 per cent for men and 2.5 per cent for women), while the visible underemployment rate was 6.5 per cent (6.2 per cent for men and 7.1 per cent for women). The Committee also notes that the PNED envisages the establishment of a National Labour Information System (SNIL) with a view to implementing an evaluation and monitoring system of the PNED and making available to labour market institutions, employers and the population in general all the available labour market information. Noting that the employment rate of men is more than twice that of women, the Committee request the Government to provide information on the measures taken or envisaged to promote productive, sustainable and decent work for women, as well as on the impact of these measures on women’s employment. It also requests the Government to continue providing updated statistical data, disaggregated by sex and age, on labour market trends, including employment, unemployment and underemployment (visible and invisible) and informality rates, disaggregated by sex, age and rural and urban areas. The Committee further requests the Government to provide statistical data on the labour market situation and trends as a basis for identifying the impact of the measures adopted to promote the employment of specific categories of workers, such as women, young persons, older persons, migrant workers, persons with disabilities, indigenous peoples, and workers in the rural sector and the informal economy. The Committee also requests the Government to provide information on the progress made in the establishment of the National Labour Information System (SNIL).

Youth employment. The Committee observes, based on the National Employment and Income Survey (ENEI), that in 2019 the youth unemployment rate was 4.6 per cent (4 per cent for men and 5.7 per cent for women) and the rate of young persons who neither study nor work was 28.2 per cent (9.5 per cent for men and 45.8 per cent for women). The Committee notes the information provided by the Government on the implementation of various programmes to promote youth employment. The Government refers, among other measures, to the implementation of the Strategic Institutional Plan 2016-21 of the Technical Capacity-building and Productivity Institute (INTECAP), the objectives of which include the extension of the coverage of initial certifiable training, with emphasis on vocational training for youth. The Government indicates that 145,496 men and 88,983 women benefited from the INTECAP in 2018. The Committee also notes the information provided by the Government on the labour market integration of young persons following the certifiable training provided by the INTECAP. The Government adds that, through the Artisanal Social Grant Programme, conditional cash transfers are provided with a view to strengthening skills for the manufacture of artisanal products. The Government indicates that around 3,000 persons in 51 municipal areas have benefited from such grants, of whom 98 per cent were poor or extremely poor women. The Government also refers to the implementation of the National Workshop Schools Programme, which seeks to contribute to poverty reduction among young persons through training for employment, as well as the First Job Social Grant Programme, which has the objective of facilitating the formal labour market integration of unemployed young persons between 18 and 25 years of age living in poverty or extreme poverty through their temporary recruitment by enterprises as apprentices. Finally, the Committee notes the detailed information provided by the Government on the measures implemented by the National Employment Service to promote youth employment (such as employment guidance and mediation services, the organization of employment fairs, vocational training and capacity-building) and on the impact of these measures. The Committee requests the Government to provide updated information on the nature and impact of the measures implemented to promote youth employment, particularly for the most underprivileged categories of young persons. It also requests the Government to continue providing updated statistical data, disaggregated by age and sex, on youth employment trends.

Persons with disabilities. The Committee notes the information provided by the Government on the number of persons with disabilities who found employment, and the numbers of enterprises and persons in the public and private sectors who received training on the subject of disability within the framework of the Social Inclusion Programme (Empléate Inclusivo), which promotes the access of persons with disabilities to decent work through the improvement of their employability. The Government also refers to the holding of consultation workshops on the proposed legislative initiative for the promotion of work, employment and entrepreneurship for persons with disabilities. Nevertheless, the Government indicates that statistical data is not available on the labour market situation of persons with disabilities as the employment surveys carried out by the INE do not cover the subject of disability. The Committee requests the Government to continue providing detailed and updated information on the measures adopted with a view to promoting the access of persons with disabilities to the open labour market. In this respect, the Government is requested to make every effort to compile, analyse and then communicate statistical data on the labour market situation of persons with disabilities so as to enable the assessment of the impact of the measures taken to increase access to the open labour market for persons with disabilities. It also requests the Government to provide information on the situation with regard to the proposed legislative initiative on the promotion of work, employment and entrepreneurship by persons with disabilities, and to provide a copy once it has been adopted.

Informal economy. The Committee notes that, according to the data of the Labour Market Observatory (OML), during the second half of 2019, 65.3 per cent of the occupied population in the country were working in the informal economy (63.8 per cent of men and 68 per cent of women). The Committee observes that the PNED includes among its thematic areas the facilitation of the transition to formality of economic units and workers in the informal economy. In this connection, the Government indicates that in 2019, with the technical assistance of the ILO and the support of EUROSOCIAL, the National Formalization Strategy was designed and that it provides for the adoption of measures to increase the coverage of social protection, the facilitation of administrative procedures, the simplification of the tax system, vocational training and action to improve productivity. The Government also reports the establishment of the Subcommission for the Transition to Formality, which is composed of various national institutions, including the Guatemalan Social Security Institute (IGSS), the CACIF and workers’ organizations. The Committee also notes the information provided by the Government on a series of measures adopted to promote the transition from informality to formality, including: the introduction of reforms to the Code of Commerce to facilitate and simplify the establishment of formal enterprises; the development of the “Asi se hace” (“This is how it is done”) portal as a tool for carrying out administrative procedures for the registration of enterprises; and campaigns to promote formalization. In this regard, the CACIF emphasizes the need to take preventive action in relation to inspection with a view to reducing current deficiencies. In its response, the Government refers to the development of a strategic plan for the reinforcement of the General Labour Inspectorate with a view to improving the enforcement of labour legislation. The Committee also notes the Government’s indication that action has been taken since 2017, with ILO technical assistance, with a view to determining a National Wage Policy based on tripartite social dialogue and ensuring effective compliance with the minimum wage in both the formal and informal economies. However, the Committee observes the indication by the CACIF in its observations that there has been no progress in the development of the National Wage Policy. In this regard, the Government indicates that there is currently a proposed Bill and that a road map has been developed with a view to its adoption.

The Committee also notes that in December 2018 a paper was presented on the statistical definition of the informal sector and informal employment in Guatemala, with a view to establishing a concept of the informal economy in the country, in accordance with the most recent recommendations of the ILO International Conference of Labour Statisticians (ICLS). The Government also reports the implementation of a pilot plan for formalization involving traders in the informal economy in the municipalities of Tecpán and Chimaltenango. Finally, the Committee notes the measure taken for the provision of assistance to informal economy workers in the context of the COVID-19 pandemic. The Committee requests the Government to continue providing detailed and updated information on the scope of the informal economy and on the nature and impact of the measures adopted under the PNED to facilitate the transition to the formal economy, particularly in rural areas of the country, including those adopted within the context of the National Formalization Strategy.

Rural employment. The Committee notes that, according to the ENEI, in the first quarter of 2019, 31.9 per cent of the economically active population were engaged in activities in the agricultural, stock-raising and forestry sector, and the open underemployment rate in the sector was 36.2 per cent. The Committee observes that the priority action set out in PNED includes the preparation of the “Rural Development Plan, An Agricultural and Stock-raising Revolution”, with a view to promoting decent work in rural areas with the participation of producers’ associations through the implementation of productive investment plans for rural areas and technological packages. The Committee also notes the information provided by the Government on the findings of the diagnosis of decent rural youth employment undertaken by the OML with the cooperation of the United Nations Food and Agriculture Organization (FAO). The objective of the diagnosis was to identify opportunities for the generation of employment and self-employment in rural areas, identify occupational trends and training needs and design proposals for interventions through active employment policies focussing on rural youth employment. The Government adds that progress has also been made in the accessibility of employment guidance and placement services in rural areas, as there is at least one employment manager in each of the 22 departments of the country. Moreover, a rural focus has been adopted for the Municipal Employment Single Windows (VUMES) located in municipal areas with a scarce network of enterprises with the objective of providing support to persons living in rural areas and engaged in agricultural activities. The CACIF considers that it is necessary to establish annual targets for the VUMES as a means of measuring their outreach and impact with a view to developing strategies to promote and generate formal employment in rural areas. In this regard, the Government indicates that the intervention strategy of the VUMES includes quality standards and follow-up and measurement indicators, as well as annual targets for the number of beneficiaries to be provided with support in relation to the needs of each area. The Government also refers to the implementation of the Rural Education Project V (PROEDUCV) with the support of the Development Bank of the Federal Republic of Germany (KfW). The objective of the project is to improve the supply of technical education with a view to promoting the access of young persons with few resources, and particularly rural and indigenous young persons, to training for quality employment adapted to the needs of the labour market. The Committee notes that the Trade Union Movement in its observations denounces the precarious conditions of workers in the agricultural sector. It also denounces the existence of child labour in the sector, including in palm oil enterprises, and irregularities in their investigation. The Committee requests the Government to continue providing information on the nature, scope and impact of the measures adopted to promote rural employment, including updated statistics disaggregated by sex, age, socio-occupational category, economic sector and region. With regard to the concerns expressed by the Trade Union Movement in relation to the precarious working conditions and existence of cases of child labour in plantations, the Committee refers the Government to its 2021 comments on the Plantations Convention, 1958 (No. 110), and requests the Government to provide detailed and updated information on the inspections carried out in plantations, including the violations of labour standards reported.