Individual Case (CAS) - Discussion: 2023, Publication: 111st ILC session (2023)

Employment Policy Convention, 1964 (No. 122) - Armenia (Ratification: 1994)

Written information provided by the Government

Article 1

Currently active work is being done on the development of the draft National Employment Strategy, which is considered as the main direct result of the second priority direction of the Decent Work Country Programme (DWCP). The main objective of the draft is to promote employment through the creation of a competitive and employable workforce and the expansion of highly productive work opportunities. The draft is intended to greatly contribute to the strengthening of the education–labour market connection in the coming years. Based on the strategy, as a result of the in-depth analysis of the labour market, working-age citizens of the communities including in the regional cities of Armenia, non-studying, non-working youth aged 18–29 years, middle-aged (30–40 years) non-working women, without family and social benefits are planned to be as the target group of the strategy, the employable beneficiaries to whom the state employment policy will mainly be directed in the coming years.

One of the strategic goals envisaged by the draft is the transformation of the state policy system in the field of employment, aimed at the development of human capital (labour market supply), the growth of high-productivity jobs (labour market demand), and the reduction of discrepancies between labour supply and demand. In the draft National Employment Strategy, such regulation topics as: labour rights, ensuring inclusion and equal opportunities (persons with disabilities, gender equality, migrants, displaced persons, national minorities, etc.) have found their place. Within the framework of the development of the strategic document, the possibilities of introducing the unemployment insurance system are also being studied. While developing the draft between 25 November and 6 December 2022, six focus group discussions were held among employers in prospective sectors of the economy in order to find out the changing trends of the employment structure, labour productivity and labour demand in Armenia, as well as to identify the problems of the target groups of the strategy to be involved in the labour force, and the ways of their possible solution. The recommendations made as a result of the discussions found their place in the draft strategic document.

The draft National Employment Strategy’s vision, primary objectives, programmes to achieve these objectives and implementation strategies are currently developed. The draft is currently in the stage of discussion and coordination with the relevant government bodies. At the beginning of next month, a meeting for discussions with representatives of the confederation of trade unions and various employers’ associations is also planned, the results of which will also be taken into account in the process of improving the draft National Employment Strategy.

In addition to the development of the draft National Employment Strategy, it should also be noted that the DWCP has greatly contributed to the development of the capacities of employees of both the Ministry and the Unified Social Service (USS) in the field of employment, as within the framework of the latter, large-scale capacity-building initiatives were implemented, and consultation and training materials were translated and provided.

ILO representatives actively participated in the strategic session to discuss the analytical part, vision, goals and programmes of the draft National Employment Strategy. They also carried out an in-depth review of the related materials and provided detailed comments, which have been very useful in revising the document.

According to the Armstat data, in 2022 the preliminary index of the unemployment rate in Armenia was 13.0 per cent, which decreased by 2.5 percentage points compared to the previous year. At the same time, the preliminary index of the employment level was 51.1 per cent, which increased by 2.2 percentage points compared to the previous year. The preliminary index of the number of employed people in 2022 was 1,139,100 persons, which is 4.7 per cent more than last year.

At the same time, the number of unemployed amounted to 170,100 persons, which decreased by 14.5 per cent compared to last year. The tables below present the main indicators of employment and unemployment in Armenia, which are published by Armstat.

As of the end of December 2021, the number of jobseekers registered in the territorial centres of the USS of the Ministry of Labour and Social Affairs (MLSA) was 86,396 persons, which decreased by 1.8 per cent compared to the previous year. During 2021, 10,117 persons were employed, which was increased by 0.08 per cent compared to the previous year.

The number of unemployed registered in the territorial centres of the USS as at the end of December 2021 was 58,153 persons, which decreased by 5.1 per cent compared to the previous year. At the end of December 2021, the share of unemployed women in the total number of unemployed was 64.2 per cent or 37,336 persons, which decreased by 0.5 per cent points compared to the previous year’s indicator. A total of 4.3 per cent of the registered unemployed, or 2,517 persons, were persons with disabilities.

As of the end of December 2022, the number of jobseekers registered in the territorial centres of the USS was 70,544 persons, which decreased by 18.3 per cent compared to the same period of the previous year. In 2022 since the beginning of the year, 10,362 persons were employed, which was increased by 2.4 per cent compared to the previous year.

The number of unemployed as of the end of December 2022 was 48,561, which decreased by 16.5 per cent compared to the previous year. As of the end of December 2022, the share of unemployed women in the total number of unemployed was 62.8 per cent or 30,543 persons, which decreased by 1.4 percentage points compared to the previous year’s index (64.2 per cent as of the end of December 2021). A total of 4.4 per cent of the unemployed or 2,140 persons were persons with disabilities (as of the end of December 2021 4.3 per cent of the unemployed).

In order to ensure the employment of the population, in 2021 by the USS measures of vocational training, partial compensation to the employer for the salary paid to a person with disabilities, acquisition of work experience, seasonal employment, as well as support for animal husbandry activities were carried out. Measures were also implemented to support the organization of professional training for mothers who are uncompetitive in the labour market and do not have a profession and organization of childcare for working persons alongside work.

In particular, the number of persons included in the vocational training programme was 487, of whom 377 were women, and 58 were persons with disabilities, 353 unemployed persons were included in the work experience acquisition programme, and 322 of them were young persons, 301 were women, and 9 were persons with disabilities, 106 persons were included in the programme of vocational training for mothers without a profession, of whom 34 were young people. In general, in 2021, around 3,958 persons were included in state employment programmes, including 2,600 women, 1,185 young people and 314 persons with disabilities.

At the same time in 2021–22, measures aimed at ensuring the employment of the unemployed citizens of Artsakh (Nagorno-Karabakh), who were displaced as a result of the war unleashed by Azerbaijan on 27 September 2020 and were actually in Armenia, continued to be implemented. In particular, as a result of the support measure for gaining work experience, in 2021–22, around 703 citizens of Artsakh (Nagorno-Karabakh), gained work experience and became employed, and 93 citizens of Artsakh (Nagorno-Karabakh) became temporarily employed within the framework of the organization of paid public works.

During 2022, around 1,800 persons, including 596 women, 345 young people and 200 persons with disabilities, were included in the state programmes for ensuring employment.

In 2022, by the USS the following measures were implemented, which are planned to be implemented also in 2023:

1. Organization of vocational training and provision of employment for unemployed persons who took part in the military operations unleashed by Azerbaijan in 2016 and 2020, within the framework of which, as a result of gaining work experience or being included in vocational training programmes or providing lump sum support to the employer, in 2022 around 276 citizens participating in the military operations became employed, including 224 young people and 30 persons with disabilities. In 2023 it is also planned to include around 500 unemployed persons in the measure.

2. Seasonal employment promotion measure, within the framework of which around 1,178 unemployed persons, including 321 women, 14 young persons, and 157 persons with disabilities, received the opportunity to carry out agricultural work and become temporarily employed. In 2023, it is planned to include about 2,300 unemployed persons in the measure.

3. As a result of providing lump sum support to the employer within the framework of the measure “ensuring the employment of the unemployed”, 23 unemployed persons became employed, including 10 unemployed persons from beneficiary families. In 2023 it is planned to include another 177 unemployed people in the measure.

At the same time, in February 2023, the Government approved a new employment promotion measure, within the framework of which, in the case of hiring an unemployed person, compensation for the expenses incurred by the employer in terms of income tax calculated from the latter’s salary is provided. In addition, the amounts and terms of the compensation are different depending on the fact of being from a beneficiary family, age, having a child and having a disability. In the scope of the measure, compensation to the employer for adapting the workplace of a person with disabilities is also planned.

In 2023 it is planned to ensure the employment of around 206 people within the framework of the measure. It is planned to provide support to the employer in the amount of 100 per cent of the income tax calculated and paid from the salary of the employed person for a period of 12 months, but not more than 50,000 Armenian drams (AMD) per month, in case of hiring an unemployed person aged 16–29 years from a family receiving family or social benefits, in the amount of 50 per cent of the income tax, for a period of three months, but not more than AMD15,000 per month, receiving family or social benefits in the case of unemployed family members aged 30–45 years, in the amount of 30 per cent of the income tax, for a period of six months, but not more than AMD12,000 per month, and in the case of a mother with a child under 5 years of age, an increase in the duration of support by another three months. The provision of assistance to the employer with the same measure is also intended for the employment of unemployed persons of other target groups.

Article 2

National legislation does not define state control mechanisms for the activities of private employment agencies, but discussions are currently under way on the possibilities of cooperation between state and private agencies. In particular, it is planned to take measures to ensure that private agencies become participants in the process of the implementation of state employment programmes.

Undeclared work

The Government will continue to provide updated disaggregated information on the impact of measures aimed at reducing the number of undeclared/unregistered employees and facilitating their integration into the formal economy.

Bringing the informally employed to the formal labour market can also be greatly facilitated by the implementation of the new employment promotion measure, which is mentioned in the information under Article 1. The Government will present information about the impact of the event.

Article 3

In order to implement any initiative in the field of employment, opinions of social partners were continuously taken into account while developing drafts. All drafts of legal acts developed in the field were submitted both to the Confederation of Trade Unions of Armenia (CTUA) and the Republican Union of Employers of Armenia (RUEA) for their opinions.

In addition, as the main strategic document of the sphere, the results of the above-mentioned focus group discussions with various employers were taken into account within the framework of the development of the draft National Employment Strategy.

Tables not reproduced (Unemployment rate disaggregated by gender, 2020–22; Employment rate disaggregated by gender, 2020–22; Labour underutilization levels, 2020–22; Employed persons by age (1,000 persons); Unemployed persons by age (1,000 persons); Number of jobseekers and employed persons registered in the Unified Social Service, by gender and age, by marzes (provinces) of Armenia and Yerevan, 2020–22)

Discussion by the Committee

Chairperson – I would like to open the discussion on the case of Armenia, which is a discussion on the application of the Employment Policy Convention, 1964 (No. 122). I would like to invite the Government representative of Armenia to speak, who will address the Committee remotely.

Government representative – I would like to start with expressing sincere gratitude to the ILO for the continuous collaboration and comprehensive support for the reforms, which the Government initiates to improve the labour environment in the country. Let me also thank the Committee for its contribution to develop more fair and equal labour relations in Armenia.

This year marks the 31st anniversary of our membership in the ILO. During these years, the ILO has been a trusted partner of Armenia in enhancing social justice, developing social dialogue, ensuring occupational safety and health, promoting gender equality in the world of work and many other areas.

The Government attaches special importance to the ILO membership and has implemented fundamental reforms in the protection and promotion of labour rights, sustainable employment and decent work. A number of measures, including legislative reforms, have been implemented in this direction in the course of the past years. Today, state policy is being adjusted and improved even further to bring it into full compliance with our international obligations and commitments to address the evolving challenges.

This is the reason why the Government was very much concerned to be shortlisted with regards to unconformity with the Convention.

Armenia ratified the Convention in 1994 and assumed important international obligations to ensure the employment of its population. Following its international obligations and domestic priorities, in 2013 Armenia adopted the Law on Employment, which established a new model of employment, directed towards implementation of active programmes to ensure stable employment of the unemployed, including those who are uncompetitive in the labour market.

The peaceful and democratic Velvet Revolution of 2018 in Armenia has set a new vision, priorities and action for the development of the country, including in the modernization of the labour environment.

Some of them, in particular, relate to the progress made with regard to the Convention.

Currently, active work is being done on the development of the draft National Employment Strategy, which is considered as the main direct result of the second priority direction of the DWCP. The main objective of the Strategy is to promote employment through creation of a competitive and employable workforce and the expansion of highly productive work opportunities. It is intended to comprehensively contribute to the strengthening of the school to work connection in the coming years.

Based on the in-depth analysis of the labour market of Armenia, first of all, the Strategy addresses and targets working-age citizens of the communities, including in the regional cities of Armenia, non-studying, non-working, non-training (NEET) youth aged 18–29 years, middle-aged (30–40 years) non-working women without family and social benefits beneficiaries, to whom the state employment policy will mainly be directed in the coming years. In addition to those groups, the Strategy envisages addressing the needs of all other groups, for instance, providing an active ageing policy.

One of the strategic goals envisaged by the draft Strategy is the transformation of the state policy system in the field of employment, aimed at the development of human capital (labour market supply), the growth of high-productivity jobs (labour market demand) and the reduction of discrepancies between labour supply and demand. In the draft Strategy, such regulation topics as labour rights, ensuring inclusion and equal opportunities have found their place. Within the framework of the development of the strategic document, the possibilities of introducing the unemployment insurance system are also being studied, which is seen by the Government as one of the key mechanisms to tackle unemployment and protect those who are unemployed.

While developing the draft Strategy between 25 November and 6 December 2022, six focus group discussions were held among employers in respective sectors of economy to reveal the changing trends of the employment structure, labour productivity and labour demand in Armenia, as well as to identify the problems of the target groups to be involved in the labour force, as well as the ways of their possible solution. The recommendations made as a result of the discussions found their place in the draft Strategy.

Currently, the draft Strategy is in the stage of discussion and coordination with the relevant government bodies. A meeting and discussions with the representatives of the CTUA and various employers’ associations is also planned to make the Strategy more multifaceted. In this regard, last Friday we held a meeting with representatives of employers.

ILO representatives actively participated in the strategic sessions to discuss the analytical part, vision, goals and programmes of the National Employment Strategy. They also carried out an in-depth review of the related materials and provided detailed comments, which have been very useful in revising the document.

Let me emphasize that the development of the Strategy is only one of the multiple pillars that Armenia is accomplishing in the framework of the DWCP for 2019–23. The Programme has significantly contributed to the development of the capacities of employees in the field of employment both at the MLSA of Armenia and the USS. It allowed implementing large-scale capacity-building initiatives. Additionally, consultancy and training materials were translated and distributed.

The Government is very much looking forward to the continuity of the Programme after 2023 to ensure further smooth and effective collaboration with the ILO in this area.

To continue with the issue of unemployment and to ensure the employment of the population in Armenia, in 2021 by the USS measures of vocational training, partial compensation to the employer for the salary paid to a person with disabilities, acquisition of work experience, seasonal employment, as well as support for animal husbandry activities were carried out. Measures were also implemented to support the organization of professional trainings for mothers who are uncompetitive in the labour market and do not have a profession, as well as for the organization of childcare for working persons alongside work.

Despite the fact that the Strategy is not adopted yet, many activities are being piloted. In particular in 2022, the number of persons included in the vocational training programmes was 487, out of whom 377 were women and 58 were persons with disabilities. A total of 353 unemployed persons were included in the work experience acquisition programme, of whom 322 were young persons, 301 were women and 9 were persons with disabilities. A total of 106 persons were included in the programme of vocational training for mothers without a profession, of whom 34 were young people. In general, in 2021, around 3,958 persons were included in state employment programmes, including 2,600 women, 1,185 young people and 314 persons with disabilities.

In 2021–22, measures aimed at ensuring the employment of the unemployed citizens of Nagorno-Karabakh, who were displaced to Armenia as a result of the war unleashed by Azerbaijan on 27 September 2020, continued to be implemented. The Government implemented not only employment programmes, but also social protection initiatives in general.

Additionally, during 2022 the Government piloted employment programmes for about 1,800 persons, including 596 women, 345 young people and 200 persons with disabilities. All the new programmes are being modelled on a result-based approach.

In the development of pilots, in 2022, by the USS the following measures are planned to implement.

Firstly, the organization of vocational training and the provision of employment for unemployed persons who took part in the military activities undertaken as a result of aggression unleashed by Azerbaijan in 2016 and 2020. In this framework, as a result of gaining work experience or being included in vocational training programmes or providing lump sum support to the employer, in 2022 around 276 citizens participating in the military operations became employed, including 224 young people and 30 persons with disabilities. In 2023, the Government is planning to extend this programme to cover all demobilized military personnel.

Secondly, seasonal employment promotion measures, within the framework of which around 1,178 unemployed persons. In 2023, it is planned to include about 2,300 unemployed persons in the measure. A number of other programmes are in the process of planning and implementation.

The Committee of Experts noted the Government’s indication that no control mechanisms are established under the national legislation to monitor the activities of private employment agencies.

In this regard, the legislation of Armenia does not define state control mechanisms for its activities of private employment agencies, but currently discussions are under way on the possibilities of cooperation between state and private agencies. In particular, it is planned to take measures to ensure that private agencies become participants in the process of implementation of state employment programmes. In this context, the Ministry, in cooperation with Democracy International, funded by the United States Agency for International Development (USAID), has already started designing a programme to initiate the above-mentioned measures. Additionally, there is a preliminary agreement with the United Nations Development Programme (UNDP) in Armenia to share costs in the implementation of employment programmes run by private agencies.

In order to implement any initiatives in the field of employment and beyond, the opinions of social partners were continuously taken into account while developing drafts. All drafts of legal acts developed in the field were submitted both to the CTUA and the RUEA for their opinions.

In addition, as the main strategic document of the sphere, the results of the above-mentioned focus group discussions with various employers were taken into account within the framework of the development of the draft Employment Strategy.

Let me briefly touch on some other initiatives, which aim to promote a better employment environment in Armenia.

In particular, in 2022 the Government and UNDP co-financed and piloted an innovation ecosystem-level support mechanism, Platform No. 5, to overcome compound challenges for women’s economic empowerment with a focus on employability and entrepreneurship. Following the success on the part of Platform No. 5, the Government has appealed to the ILO to join the ILO Women’s Entrepreneurship Development Programme to continue together supporting women in entrepreneurship and employment.

In Armenia, since 2012, career development support system reforms have been undertaken. On 2 June 2023, the career guidance national model of Armenia was presented at an OECD conference as a good practice.

In the meantime, the European Training Foundation recommendation is that the Armenian State regulations are unique in the Eastern Partnership countries.

The Government, giving high priority to the adoption and implementation of the ILO values and standards, has already initiated the ratification process of the Violence and Harassment Convention, 2019 (No. 190). Moreover, the current changes in Armenia’s Labour Code have already included some of the provisions from Convention No. 190.

In conclusion, I would like to stress that despite the COVID-19 pandemic and aggression of Azerbaijan against the people of Nagorno-Karabakh and sovereign territory of Armenia, after the peaceful and democratic Velvet Revolution in Spring 2018, the Government is implementing massive reforms and undertaking all possible measures and efforts to address the needs of its citizens and provide a better labour environment. To improve sustainability and more effective cooperation with the ILO, we suggest opening an ILO Country Office in Armenia, extending the DWCP for Armenia, which ends in 2023, as well as supporting Armenia to join the ILO Women’s Entrepreneurship Development Programme. Finally, ILO support for the initiatives envisaged by the National Employment Strategy of Armenia will create additional and comprehensive value in Armenia – ILO cooperation.

I am confident, that the above provides the Committee the necessary ground to remove Armenia from the short list, allowing and motivating all stakeholders to continue applying active reforms in the field of employment and labour rights. This will allow the ILO to play its role as a reliable partner to foster democratic development not only in Armenia, but globally.

Worker members – The Declaration of Philadelphia recognizes the ILO’s official obligation to support the implementation of programmes carried out by the various countries of the world aimed at achieving full employment and raising the standard of living. The Preamble of the ILO Constitution provides for the fight against unemployment and the guarantee of a wage that ensures decent living conditions.

Thus, it is incumbent upon the ILO to examine and consider the effects of economic and financial policies on employment policy, bearing in mind the fundamental objective that, “all human beings, irrespective of race, creed or sex, have the right to pursue both their material well-being and their spiritual development in conditions of freedom and dignity, of economic security and equal opportunity”. This Convention is the international labour standard that implements the objectives set forth in the founding texts of our Organization.

Today we are examining how Armenia is implementing the Convention. According to Article 1 of the Convention, Armenia shall declare and pursue an active policy designed to promote full, productive and freely chosen employment. This policy shall ensure that there is work for all who are available for and seeking work, that such work is as productive as possible, that there is freedom of choice of employment and that all workers have every opportunity to acquire qualifications for a suitable job.

According to the report of the Committee of Experts, more than 60,000 people are unemployed in Armenia, representing an unemployment rate of 13 per cent. Women make up the majority of the unemployed, accounting for almost 65 per cent. According to 2020 statistics available to the ILO Department of Statistics, the labour participation rate in Armenia was 66.5 per cent. These few statistics demonstrate the many challenges Armenia faces in establishing a national employment policy. Armenia also faces the impact on employment of the geopolitical context in which it finds itself. In particular, part of its territory has been the scene of armed conflict, which has led to the displacement of people to other regions, although they cannot find employment there. The Committee of Experts’ report also mentions the existence of disparities in these statistics at the regional level, suggesting the need to allow for these regional realities to be taken into account in employment policy. Furthermore, the Committee of Experts’ report highlights that, despite the large-scale reforms carried out in the field of employment in recent years, there are still urgent issues to be addressed. These include the mismatch between labour supply and demand, barriers to employment for newcomers to the labour market, vulnerable groups and skilled workers.

Numerous initiatives are under way in Armenia to work in these different areas. One example is the DWCP 2019–23, which sets out the country’s priorities and key deliverables that have been established in close consultation with the tripartite constituents. These priorities include the development of a new National Employment Strategy, which addresses these and other issues such as youth employment, rural employment and informality. The Government makes the promotion of employment and education a priority for the eradication of poverty in the country. An employment policy that complies with the Convention is inconceivable without paying special attention to vulnerable groups, one of which, unfortunately, continues to be women. In this regard, the United Nations Committee on the Elimination of Discrimination against Women (CEDAW) has noted with concern the limited access to stable and adequately remunerated employment for disadvantaged and marginalized groups of women, including those belonging to ethnic minorities, internally displaced women, women in refugee-like situations, migrant women and women with disabilities. The low numbers of persons with disabilities participating in employment regulation programmes are a cause for concern. The same applies to the participation of young people aged between 16 and 29 years. Therefore, in the development of employment policy in Armenia, special attention will need to be paid to vulnerable groups in the labour market, particularly women, persons with disabilities and young persons.

In many countries, private employment agencies are one of the instruments used in the framework of employment policies. This is also the case in Armenia. However, it is essential that these private employment agencies are subject to supervisory mechanisms. In the written information provided by the Government, it is stated that discussions are under way to encourage collaboration between public and private employment agencies. While such collaboration is desirable, it does not resolve the issue of supervisory mechanisms for private employment agencies. Armenia’s ratification of the Labour Inspection Convention, 1947 (No. 81) could be an opportunity to break new ground in this area.

The fight against undeclared work must also be an integral part of employment policy. The report of the Committee of Experts indicates that measures have been taken, including tax measures, to increase the number of declared workers. We can only encourage the Government to continue its efforts in this direction and to take further measures.

Finally, let me recall one of the fundamental principles also contained in the Convention, namely that of consultation with the social partners on employment policy. We can only encourage the Government to remain fully committed to the tripartite implementation of an employment policy that will enable the workers of Armenia to pursue their material well-being and their spiritual development in conditions of freedom and dignity, of economic security and equal opportunity.

Employer members – I deeply regret that it was not possible for the Armenian Employers’ delegate to participate in and contribute to this discussion in person, as his credentials for the Conference were withdrawn by the Government. The Armenian Employers’ delegate has lodged an objection to this action with the Credentials Committee.

With regard to the Convention, we are grateful to the Government for sending updated information on this case. The Convention was ratified by Armenia in 1994 and today is the first time that the Committee is discussing the application of this Convention. The Committee of Experts has commented on the application of this Convention on three occasions in 2015, 2018 and 2022.

With respect to its 2022 observations, the Committee of Experts identified three main issues in relation to this case. The first issue relates to employment trends and the implementation of an active employment policy in conformity with Article 1 of the Convention. We note Armenia’s efforts in the field of employment with the implementation of reforms such as the DWCP to promote employment through the creation of a competitive and employable workforce and the expansion of productive work opportunities. In addition, according to the information provided in 2022 the Government developed comprehensive programmes to facilitate the labour inclusion of the unemployed persons who took part in the military operations triggered by Azerbaijan in 2016 and 2020. Tax policies were also adopted that have facilitated the formalization of businesses and are expected to improve employment indicators as a result.

For several years, we have observed a positive trend in labour market indicators in Armenia, such as a reduction in the unemployment rate, which in 2022 fell by 2.5 percentage points compared to 2021.

However, there are still pressing issues to be addressed, such as the gap between labour supply and demand and the barriers to finding a job, both for new entrants to the labour market and for vulnerable groups, in particular women, young people and persons with disabilities.

According to the Government, it is currently engaged in a new employment strategy which it plans to discuss with representatives of the trade union confederation and various employers’ associations in the near future. The Employer members consider it essential that the Government implement this strategy and all necessary measures as soon as possible to address labour market deficits. But we consider it imperative that it does so after a process of real and effective social dialogue with the most representative social partners.

The second issue relates to the implementation of active labour market measures in line with Article 2 of the Convention. We note that, according to the information provided by the Government, the national legislation does not define state supervisory mechanisms for the activities of private employment agencies, but discussions are being held on the possibility of cooperation between private and state agencies. This foresight of the Government to take measures to ensure that private agencies are involved in the process of establishing state employment programmes could contribute positively to improving the labour market integration of unemployed persons. We also note that, with regard to undeclared work, the Government is taking measures to reduce the number of undeclared workers and to facilitate their integration into the formal economy. However, it should provide information on the impact of these measures to assess their effectiveness.

The third issue relates to consultation with the social partners in line with Article 3 of the Convention. We note the Government’s confirmation that employment policies and programmes are submitted to the CTUA and the RUEA for their opinions. Nevertheless, the Employer members align ourselves with the Committee of Experts in requesting more concrete information on these consultation processes with the social partners for further assurance. Especially given that a recently published study by the RUEA and the research published by the United States Department of Labor indicate that tripartite social dialogue in Armenia is in its infancy and does indeed have serious problems related to legislation on association, and constituents and their representativeness.

Worker member, Armenia – The CTUA would like to share with you our approach on the implementation of the Convention.

On the way of implementation of the Convention, the Government developed a draft of the new Employment Strategy as the Government representative said, which was also consulted with the CTUA. The CTUA provided comments and suggestions, but still the discussions will continue in the upcoming Republican Tripartite Commission. This year the CTUA is coordinating the Republican Tripartite Commission.

We should emphasise that Armenia has been at war for almost 30 years and since September 2020, there were active military actions in Nagorno-Karabakh and Armenia was faced with active war for 44 days. Thousands of people from Nagorno-Karabakh became refugees in Armenia, without living conditions and jobs. These people replenish the unemployment circle, which created new challenges for the Government and for the social partners. A few programmes were developed for the above-mentioned refugees to make their lives less difficult.

Another big challenge faced by Armenia are the people who come from the Russian Federation to escape the mobilization. These people also have an influence on the labour market of Armenia. Of course, except those who work in the information technology sector, who have remote work and have no influence on the labour market.

The Government does its best to improve lives in the employment sector. There are gaps in the employment sector of Armenia regarding the lack of unemployment insurance and absence of unemployment benefits, even though this is written and provided for in the Constitution of Armenia. Anyway, the Government has some employment programmes through which people can be retrained and start their own business with the support of these programmes.

The National Employment Strategy includes also women’s rights and people with disabilities and youth, especially in the rural areas where finding jobs is also very difficult. However, I should emphasize that we have good cooperation with the ILO Bureau for Workers’ Activities (ACTRAV) on the DWCP. The CTUA now also sees an opportunity to improve the situation regarding the implementation of the Convention, also with the technical support of the ILO, concerning social partnership and implementation of the strategy which will be adopted after a few discussions. We are going to discuss it again and again in the social partnership framework and in the Republican Tripartite Commission.

Worker member, Germany – The current situation in Armenia is marked by many different kinds of crisis. In September 2020, the armed conflict in Nagorno-Karabakh flared up again. This led to many internally displaced persons. The situation puts great strain on the Armenian labour market and this has been exacerbated by a recent increase in migration from Russia. We therefore welcome all the efforts made by the Government, in terms of labour legislation, protection of vulnerable groups, formalization of employment relationships and last, but not least, the creation of a National Employment Strategy.

For any country in the world, any one of these reforms would represent a major effort. Armenia is not only tackling all of these reforms simultaneously but also within the framework of social dialogue. We commend this approach and we are pleased to see greater trade union representation in the process. At the beginning of May, the Armenian Labour Code was fundamentally overhauled. A total of 122 out of 296 articles were amended. There are improvements in the specific provisions on the employment of minors, on maternity leave and leave periods. For instance, workers can now carry over unused leave from one year to the following year. Access to training programmes has also been made easier. As well as that, the legislation includes a section on the prohibition of sexual violence in the workplace, and it paves the way for ratification of Convention No. 190. Indeed, we have just seen that ratified in my country and we very much hope that the necessary ratification will be endorsed this week. We have also noted that ratification of the Private Employment Agencies Convention, 1997 (No. 181), might be possible and we might be able to consider some kind of partnership. When it comes to the National Employment Strategy, so far, we have some very promising signs, including proposals for unemployment insurance and better inclusion of disadvantaged groups. In view of the disproportionately higher unemployment level of women, the announced focus on gender equality seems to us to be imperative. These changes also took place with the advice of the ILO within the framework of the DWCP. We support the Government’s initiative to extend this Programme further. All of these reforms are very promising but we need more to be done. We have questions, for instance, about the effectiveness of labour law reform, given the continuing large informal sector in Armenia. Aside from that, the sustainability of the proposed unemployment insurance is of limited nature.

In accordance with the Committee of Experts we recommend further efforts to formalize employment relationships in particular. The integration of informal works into the labour market is an indispensable step forward towards the consolidation of an Armenian welfare state. The CTUA has a new Chairperson and she is campaigning for an increase in the minimum wage and an extension of the right to strike. Tripartite structures and processes must be strengthened. We must bridge the gap between agreements on paper and actual implementation. The tense economic situation results in a large imbalance of power in favour of employers. There are few broad-based collective agreements and the unions are not sufficiently involved in many negotiations.

Observer, International Organisation of Employers (IOE) – I would like to introduce the observations of the RUEA regarding the Convention.

First of all, I would like to give thanks for this opportunity to participate in the Committee’s session and to voice our concerns regarding the current stage of social partnership and of the application of the Convention in Armenia. I would like to thank the IOE for enabling me to speak at the meeting today. Our union delegate wanted to attend the Conference but then the Government withdrew the credentials without valid justification and in violation of the ILO Constitution. Such actions prevented our union delegate from taking part in the Conference. Of course, despite many positive changes, Armenia still faces social and economic challenges, which remain unsolved and social partnerships are at a weak level. There is a significant gap between the level for supply and demand. There are obstructions for first-time labour market entrants. To support the Government in its commitments with regard to overcoming those obstructions and improving the employment policy, our union has submitted its research results, solutions for improvement and recommendations to the Government since 2016.

Our union has not received a draft of the National Employment Strategy and no consultations were carried out with our union for the development of the document. Of course, we understand that there were some meetings with some of the employers in the framework of several focus groups, but our union was not informed of these meetings, we did not participate in them and did not receive any draft strategy. The Government also did not share observations of the report from the Committee of Experts and we received it only from the ILO. It was difficult to participate when the Government is not consulting our union and keeps withholding crucial information.

Regarding the cooperation with private employment agencies, which is also in the observation of the Committee of Experts, we would be happy to strengthen our cooperation with the Minister of Labour and Social Affairs, in the scope of collaboration with private employment agencies and monitoring their activities and ratification of Convention No. 181.

The social partnership is at a weak level. The Ministry has carried out one meeting of the National Report Commission instead of the eight initially planned. The Ministry has not undertaken concrete and significant measures for the organization of meetings and discussions with mutual acquaintances between the partners in presenting social partners’ viewpoints to the Government, etc.

We have expressed our concern to the Government about the low efficiency of the social partnership and our union sent a letter to the Government, last August 2022, which has remained unanswered to date.

We have tried to improve the situation and had a meeting with the Minister of Labour and Social Affairs. However, that also did not take place. To date, as President, I have never met the Minister in the two years since he became Minister. Our union remains committed to work with the social partners and the ILO in overcoming the current challenges in the implementation of the Convention. However, this will be difficult if the Government continues the current practice of withholding crucial information from the employers and conducting consultations by bypassing employers’ organizations and denying employers’ rights to participate in the process, including participation at this Conference.

In conclusion, I would like to mention that as an employer organization with high representation in the country, our union is eager to support the Government for the development of a national employment strategy and full implementation of the Convention. With this participation, we hope to help effective social partnership in Armenia. Without proper social dialogue, the progress on implementation of essential labour standards cannot be made, neither in Armenia, nor in any other country.

Observer, IndustriALL Global Union – I am making this statement on behalf of IndustriALL Global Union with the support of the International Union of Food, Agricultural, Hotel, Restaurant, Catering, Tobacco and Allied Workers’ Associations (IUF).

My organization has affiliated trade unions in mining, metallurgical energy and manufacturing sectors in Armenia and we closely follow developments in the country. Together with our affiliates, we welcome the Government’s commitment to fulfil the requirements of international standards as well as the European Social Charter.

We have heard that, on 3 May 2023, a law providing extensive amendments to the Labour Code of Armenia with specific target on social partnership was adopted. We also note that amendments to the law on trade unions as well as employers’ associations are in the process of being finalized and we hope this will provide a solid foundation for the development of social dialogue at all levels.

We also observe that the Government implements the DWCP covering the period of 2019–23 and recently has applied for a prolongation of the programme.

We strongly encourage the ILO to continue with the existing technical assistance programmes and to support Armenia’s application for continuous support under the DWCP. Our affiliates report that the Government has finalized the draft National Employment Strategy that provides a credible vision towards the modernization of the employment environment in the country. This strategy addresses the issue of labour rights, envisaging the introduction of the unemployment insurance system. We hope all these initiatives will be implemented in the nearest future.

It is worth noting that the social dialogue between the Government and the CTUA has increased over the last past six months, which we consider as a positive step.

We do hope the employers will also get involved, in a unified way, in the work of the tripartite bodies of the country. It needs to be noted that because of this, neither a general agreement, nor sectoral agreements have been concluded in Armenia. This is critically important because in the world of work in Armenia there are serious problems affecting workers. When workers attempt to exercise their freedom of association, they face difficulties. When workers want to get the protection of a negotiated collective bargaining agreement, they are confronted with the resistance of employers. When workers want to exercise the right to strike or peaceful assembly, they are exposed to pressure. So, there are serious health, safety and particularly security problems inside the country which must be addressed seriously through general social dialogue and assistance from the ILO.

The country is also facing high levels of unemployment and extremely low social standards of living among refugees from either Nagorno-Karabakh or neighbouring countries, particularly the Russian Federation.

We have difficulties understanding why Armenia has been shortlisted over the Convention, as there are many other serious problems in the world of work in the country which need to be addressed urgently.

We call on the Government to accelerate the legislative processes so that employers have the right to protect their interests in line with international standards. We call on employers to be constructive and return to social dialogue to find solutions for many social and labour matters including the coordination of the National Employment Strategy, developed by the Government in consultation with the CTUA.

We also call on the ILO to continue to give support to the Government, workers, and employers in Armenia, to encourage social dialogue and to strengthen mechanisms to ensure workers fully exercise their fundamental rights at work.

Government representative – I wish to thank all partners for sharing their observations. As I said during my first intervention, the Government is undertaking massive and comprehensive reforms, including in the field of employment and labour relations. The goal is to address all the challenging issues and, inter alia, meet the obligations of the ILO Constitution and ratified Conventions. In the meantime, let me briefly respond to the main issues raised during this session. Firstly, the issue of proportionality between demand and supply on the labour market is a major issue which is the focus of the Government. The new strategy will address the issue to provide comprehensive and multifunctional solutions. Secondly, the Government further implements its active labour programme. The strategy envisages multiple strategies to provide for other developments in the whole labour market, but it particularly focuses on vulnerable groups including youth and so on. However, despite the facts, the strategy is not yet adopted. The Government has already adopted main employment programmes to include the rights and equal opportunities on the labour market.

For instance, in 2022, the Government and UNDP co-financed and piloted a recent eco-system-level support programme. As a leader in technology and gender equality, Armenia embarked on an ambitious journey to develop bold transformative action for women’s economic power in high labour productivity sectors.

Following this success story, the Government asks the ILO to continue supporting the Government’s efforts for women’s entrepreneurship.

Finally, let me quickly address the observation made by the Chairperson of the RUEA. We appreciate this readiness to develop cooperation with the Government. However, we were surprised to receive the letter, especially in the Committee. Therefore, in anticipation of the above-mentioned letter of the RUEA regarding the suspension of cooperation, participation of the Employers’ side in the session of the Conference was not confirmed.

All those measures are called to develop social justice in Armenia, which requires even more attention and support in times of global uncertainty and turbulence.

Concluding, let me reiterate the readiness and willingness of the Government to continue to deepen and develop cooperation with the ILO to promote social justice in Armenia and around the world. I am confident that the Committee will take into account all those measures, which the Committee of Experts recognized as positive and progressive.

Employer members – The Employer members thank the various speakers who have taken the floor, and particularly the Government, for their interventions and the information provided.

In our closing remarks we would like to once again stress that the Convention provides for the declaration and pursuit of an active policy designed to promote full, productive and freely chosen employment. This policy shall aim at ensuring that there is productive work for all who are seeking work and freedom of choice of employment, and at reducing the skills mismatch in the labour market.

We call on the Government to take into account that productive and sustainable employment is the basis for decent work, wealth creation and social justice. While we take good note of the steps forward taken by the Government, we cannot ignore that more effort is needed at the national level to address labour market deficits in Armenia, where barriers to entry into employment persist, in particular for vulnerable groups and skilled workers. In addition, disadvantaged and marginalized groups of women have limited access to employment and are not adequately remunerated. Given that employment gaps still persist in Armenia, long-term solutions are required. The Employer members therefore call for the most representative social partners to receive key information and for their active participation in the design and implementation of employment policies in accordance with the Convention, which requires consultation with the social partners.

In line with the recommendations of the Committee of Experts, the Employer members would like to request the Government to continue to work on the development and further implementation of the measures of the National Employment Strategy, and, in particular, to do so in the context of social dialogue with the most representative social partners, to ensure that the measures are effective and lasting; and also to continue to encourage the decline of the informal economy and to provide information on the impact of the measures. We trust that the Government will take these recommendations into account for the full implementation of the Convention.

Worker members – We would like to thank the Government representative for the information provided to the Committee. As we have heard during our discussion, there are many challenges facing the promotion of employment in Armenia. We have no doubt that the Government is willing and able to face these challenges and to take all the necessary measures to promote decent employment for all working people in Armenia.

It seems to us that, in order to meet this objective, the Government will have to:

- continue to develop, in consultation with the social partners, an employment policy that also has a focus on vulnerable groups, including young persons, women and persons with disabilities;

- continue to provide updated and detailed information on the nature, scope and impact of measures taken to promote full and productive employment, including those taken under the DWCP 2019–23;

- provide a detailed update on progress made in the development and adoption of the National Employment Strategy;

- transmit a copy of the Strategy once it has been adopted;

- continue to provide updated and detailed information, including statistical data disaggregated by sex and age, on employment trends in the country, in particular on employment, unemployment and underemployment;

- continue to provide updated and detailed information, including statistical data disaggregated by sex, age and region, on the nature, extent and impact of measures and programmes undertaken to promote the employment of groups vulnerable to decent work deficits, in particular women, young persons, persons with disabilities and persons vulnerable to intersectional discrimination;

- provide information on the nature, scope and impact of measures taken in the field of vocational education and training in relation to improving the employability of young people;

- provide detailed information on any measures taken or envisaged, in consultation with the social partners, to regulate the activities of private employment agencies operating on the Armenian territory;

- establish mechanisms for monitoring private employment agencies and consider ratifying Convention No. 181, as the most up-to-date instrument in this area;

- continue to provide updated and disaggregated information on the impact of the measures taken to reduce the number of undeclared workers and to facilitate their integration into the formal economy; and

- finally, provide concrete examples of how the views of the social partners are taken into account in the design, implementation and review of employment policies and programmes.

To implement all these recommendations, we request the Government to seek technical assistance from the ILO.

Conclusions of the Committee

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

The Committee noted the steps taken by the Government to reduce informality and promote employment among women and young persons, persons with disabilities and other marginalized groups.

The Committee also noted that further steps need to be undertaken, in consultation with social partners, in these areas as well as on vocational education and training and activities of private employment agencies to ensure the implementation of the Convention both in law and in practice.

Taking into account the discussion, the Committee requests the Government in consultation with social partners, to:

- continue to develop an employment policy to address both in law and practice the remaining issues, notably the existing barriers to employment for disadvantaged groups, including women, young persons, persons with disabilities and persons vulnerable to intersectional discrimination;

- take steps to improve the employability of young persons, notably through vocational education and training programmes;

- take steps towards establishing control mechanisms under the national legislation to monitor the activities of private employment agencies, including considering the possibility of ratifying the Private Employment Agencies Convention, 1997 (No. 181);

- ensure cooperation with the social partners on existing labour market issues, annual employment programs as well as on their implementation and provide concrete examples of the manner in which social partners are included in the development, implementation and review of employment policies and programmes and their views duly considered.

The Committee requests the Government to provide the Committee of Experts with detailed updated information by 1 September 2023 on:

- measures taken to promote full productive employment, including those adopted in the framework of the Decent Work Country Programme (DWCP) 2019–23;

- the development and adoption of the National Employment Strategy (NES) and to provide a copy once adopted;

- statistical data disaggregated by sex and age, on employment trends in the country, particularly on employment, unemployment and underemployment;

- statistical data disaggregated by sex, age and region, on the nature, scope and impact of the measures and programmes implemented to promote the employment of groups vulnerable to decent work deficits, including women, young persons, persons with disabilities and persons vulnerable to intersectional discrimination;

- the impact of the measures taken to reduce the number of undeclared workers and facilitate their integration into the formal economy.

Government representative – I would like to thank the Committee for the hard work and tripartite cooperation, in particular over this recent period of time with regards to the individual case of Armenia regarding Convention No. 122. The Government of Armenia attaches special importance to the ILO membership and has been implementing fundamental reforms in protection and promotion of labour rights, sustainable employment and decent work. A number of measures including executive reforms have been implemented in these directions in the course of the past years. To date, state policy is being adjusted and improved even further to bring it into full compliance with our international obligations and commitments to address the evolving challenges.

I am glad that the Committee has decided to take into consideration information on all the progress and efforts which the Government of Armenia has being undertaking to improve the employment and labour environment in the country. The Government will continue the reforms, inter alia, based on the recommendations made by the Committee. Let me conclude by reiterating the readiness and the willingness of the Government to continue deepening and developing cooperation with the ILO and social partners to foster social justice in Armenia and around the world.