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

Employment Policy Convention, 1964 (No. 122) - Costa Rica (Ratification: 1966)

Written information provided by the Government

The Government has given priority to the public policy to promote an appropriate ecosystem to facilitate the labour market integration of vulnerable persons (including women, young persons and persons with disabilities) and develop a better matching of occupational demand and the vocational and technical training of workers through the current National Development and Public Investment Plan (2023–26). The Government considers it essential to indicate that, for some years, Costa Rica has been developing a series of strategies and active labour market programmes with a view to having a positive impact. These efforts have resulted not only in specific programmes and legislative reforms, which have changed procedures for labour mediation, but have strengthened the relations that existed between labour market needs and the supply of institutional programmes.

In this regard, it would be baseless to claim that the Government has not made significant efforts in this field. Employment is one of the priority themes of the current Government and is part of the strategic agenda of the Ministry of Labour and Social Security (MTSS) and the National Training Institute (INA), among other public institutions, of which the ILO is one of the principal partners.

It should be noted that the ILO itself advised the Government to begin with the development of one of the central planks of its general policy, in order to build bridges and develop trust in participatory tripartite processes with a view to achieving more fluid progress in future years. In this respect, it should be noted that the Government is currently benefiting from technical assistance from the ILO Office for Central America, Haiti and the Dominican Republic, as recommended by the Committee of Experts in its 2023 report, for the design and development of the National Strategy of Employability and Human Skills.

It is noteworthy that Costa Rica has been included in the preliminary list of 40 cases before the Committee, even though the Committee of Experts has noted with interest the measures and action taken by Costa Rica within the framework of other Conventions, as indicated in the 2023 annual report. In this respect, attention should be drawn to the fact that the Committee of Experts has noted with interest the information and measures reported by the Government in relation to the Employment Service Convention, 1948 (No. 88). More specifically, the Committee of Experts noted with interest the adoption of the executive decree establishing the National Employment System (SNE) “to respond both to the dynamics of the labour market and to the needs of jobseekers or persons already in employment in order to retain their work or improve their conditions of work, giving priority to those in conditions of vulnerability”.

Aspects directly related to the Government’s strategic action in the field of employment

1. National Strategy of Employability and Human Skills: with the support of the ILO, this is being developed through a process of participation and consultation with the social partners, as it has been submitted to the Employment Council, which is of tripartite composition (the Executive, the private sector and trade unions) The purpose of the National Strategy of Employability and Human Skills is also to strengthen the governance of the SNE and the National Employment Agency (ANE), a platform which is an important landmark, as it has been built up from zero based on the Government’s conviction of the added value that will be provided to the public employment system not only by reinforcing the employment service, but also by improving the employability of those who are already in work.

2. Consolidation of the SNE: this is built on a model that corresponds to the vision of the public employment system, by not only dealing with employment placement, but by converting it into a more robust system that provides more services and is broader in scope. And it is the outcome of an articulated, inter-institutional and participatory process responding to the need to align education with labour market requirements. The approach adopted allows the SNE to provide more focused services and facilitate the access of persons in any part of the country. Its establishment was based on social dialogue through a process involving the Executive, the private sector and the unions, which are members of the Employment Council, which is the body with the highest authority in the system. In operational terms, reference should be made to the ANE and employment units. The ANE is a technical and operational body, which is national in scope, public and free-of-charge, which organizes employment services, the network of employment units, the electronic information platform and other means of serving people and enterprises, and which harmonizes administration, processes, procedures and protocols in a single window. The ANE operates 24 hours a day through contact centres, which are a free public tool and connect people and enterprises with employment services, in accordance with the policies established by the Employment Council. As of May 2023, the ANE had concluded 45 cooperation agreements to improve the capacities of the offices and branches of the network of employment units with various municipal authorities and private bodies to facilitate the access of the population to the services provided through the SNE. These units not only register persons, but also activate the coordination of the programmatic supply of employment services so that services are provided to improve employability, as well as employment placement. Up to now, there are around 5,114 active enterprises registered, over 128,000 people have been placed in employment since the tool was established and over 19,000 jobseekers are registered.

3. Inclusion of the system of financing by results of the Labour Market Observatory and the coverage of migrant workers by employment services.

4. The Dual Education and Training Act: the Advisory Commission for the Promotion of Dual Technical and Vocational Education and Training (EFTP-Dual), in the Ministry of Public Education, is operational and brings together the various social partners involved in this new mode of education, namely: the MTSS, the INA, the Costa Rican Federation of Chambers and Associations of Private Enterprise (UCCAEP), the Association of Enterprises in Export Processing Zones of Costa Rica (Azofras), and unions in the education, cooperative and solidarist sectors. It is also important to indicate that, in April 2020, the General Regulations were published of Act No. 9728 on dual vocational and technical education and training, which specify even further the rules for participation in dual-training processes. Moreover, emphasis should be given to the EFTP-Dual in Costa Rica, which has various similarities with dual-training systems in other parts of the world, including the principle of alternance, training in enterprises, shared financing and social dialogue. However, one significant difference from other countries lies in the nature of the relationship between those engaged in training (in Costa Rica they are not called apprentices), educational centres and enterprises.

5. National Skills Framework: a nationally recognized structure, which sets standards for qualifications and the associated skills on the basis of a series of technical criteria set out in descriptors with a view to guiding training, classifying occupations and jobs and facilitating the mobility of people at the various levels, all in relation to labour market dynamics. Some of the benefits of the articulation between training and labour market needs promoted by the National Skills Framework for Technical and Vocational Education and Training in Costa Rica (MNC-EFTP-CR) include:

- facilitating and clarifying the articulation of the education system, by setting qualification levels and establishment links between them;

- making it possible to create spaces for cooperation between the social partners in relation to technical and vocational education and training (TVET), namely: employers, training centres, public and private bodies and civil society;

- establishing parameters for training and the assessment of skills in relation to levels of qualification;

- providing employers with clarity on the competences associated with qualification levels, as provided by training centres;

- facilitating access to TVET by the population in terms of the skills they will acquire, the route to be followed to have access to training and employment opportunities;

- ensuring that the participation of enterprises and organizations in the development of qualification standards is representative at the sectoral level.

6. Implementation of the Act respecting export processing zones outside the Greater Metropolitan Area (GAM), No. 10234 of 2022, under which at least 11 initiatives have been developed so that enterprises can see opportunities for investment outside the GAM, such as: the inclusion of new categories for export processing zones (human health services, inputs and sustainable adventure parks); the strengthening of the single investment window to facilitate transactions; rules which urge the INA to promote programmes that correspond to the technical and occupational needs of enterprises; and the strengthening of formal employment. The generation of new jobs is key to the recovery of the labour market. The Act seeks to contribute to the generation of favourable conditions to increase investment that has a direct impact on competitivity throughout the territory, economic growth and the generation of employment outside the GAM through reforms and certain additions to specific laws adapted to the real situation in these areas of the country. This series of reforms and additions will have a direct impact on the decisions taken by national and foreign enterprises which, in compliance with certain conditions pre-established by the regime for export processing zones, can invest in zones outside the GAM. All of the above is in line with the indications provided, and shows not only the existence of political will and multiple good practices at the national level that are deserving of recognition, but also that the Government of Costa Rica retains the conviction to continue taking action to ensure the well-being and quality of life of workers in Costa Rica, within the framework of participatory processes and dialogue with partners, without which it would not be possible to implement these Government efforts. The commitment of this Government includes the prioritization of strategic interventions in relation to economic, social, environmental and citizens’ security challenges, which give rise to priorities such as the modernization of State institutions, economic recovery and a reduction in the cost of living, unemployment, poverty, inequality and regional differences, among others. Through an integrated and modern approach to public policies, these will be able to have a real impact on areas that lie within the scope of State governance with a view to stimulating action on these challenges, thereby achieving the well-being of the population of Costa Rica.

Discussion by the Committee

Chairperson – The first case on our agenda is Costa Rica on the Employment Policy Convention, 1964 (No. 122). I would like you to know that we have more than 17 delegates inscribed to take the floor and, consequently the reduction of time from 5 to 3 minutes will apply to the delegates. I now invite the Government representative of Costa Rica, the Vice-Minister of Labour, to take the floor.

Government representative – My first words will be to offer you fraternal greetings from the Minister of Labour, Andrés Romero Rodríguez. For reasons beyond his control, he has not been able to accept this invitation, but expresses his wishes for success to the Director-General for the launch of the Global Coalition for Social Justice initiative and for the productive work of our Committee.

On the basis of one of the principles that inspired the ILO Constitution, that is dialogue, Costa Rica succeeded in establishing the guarantees of social protection in its Political Charter over 80 years ago. As a result of this historical landmark, which regrettably continues to be no more than an aspiration for many peoples, the citizens of Costa Rica sealed a fundamental social pact setting out the highest values of solidarity and respect for the dignity of all persons. The country is globally recognized for this and other achievements, as well as its vocation of safeguarding human rights and being in the vanguard or their promotion.

Emulating the democratic tradition and honouring our international commitments, we are appearing in person on this occasion before the Committee to show in this forum the strategic action adopted by the State of Costa Rica in compliance with the Convention.

It is important to recall that, during the 2020s and up to the beginning of 2022, Costa Rica faced up to, with more than just diligence, the health crisis of the COVID-19 pandemic. Appropriate responses in the field of public health and the protection of life, as well as robust interventions in the field of social protection, enabled our law-abiding State to meet the challenge. We faced a challenge and democracy emerged with credit.

Nevertheless, within the context of the crisis of global dimensions as recognized by everyone, Costa Rica was not immune to the economic impact, which resulted in a significant loss of jobs, and more specifically the pandemic shock in the months of May, June and July in 2020, when the unemployment rate reached 24.4 per cent, with 557,000 unemployed persons. The process of the recomposition of the labour market has been showing a trend for employment recovery. Data from the Continuous Employment Survey of the National Statistics and Census Institute (INEC) show the recent trends on the labour market in Costa Rica.

In the first place, it is important to note the trend for unemployment to fall, with a decrease since the third quarter of 2020, reaching 9.7 per cent in the months of February, March and April in 2023, at 2.8 percentage points below the pre-pandemic level. Emphasis should be placed on the decrease in the number of unemployed persons at the national level, with 90,142 persons fewer, a figure that is lower than the same quarter prior to the pandemic. There has been a reduction in the percentage of persons in underemployment, for both men and women. Although the number of persons engaged in informal employment is under the levels prior to the pandemic, this unfortunately affects 40.7 per cent of the population.

Before the pandemic, the economy of Costa Rica was encountering difficulties in generating sufficient opportunities for the labour force. These were associated with the fact that the processes of economic, social and technological change have resulted in important transformations on the internal labour market. The State was therefore confronted by the urgent challenge of providing workers with the skills and knowledge required for the fourth industrial revolution and of avoiding at all costs that our young population, and particularly women, are faced with the ignominy of exclusion from the labour market.

In the national context, as described, we draw the attention of the honourable members of the Committee to the manner in which the country has been taking progressive steps towards full compliance with the Convention through the adoption of specific measures with a view to the formulation and approval by the Higher Labour Council (CST) of an employment policy. This is our aspiration and our commitment.

Accordingly, it can be seen in the National Development and Public Investment Plan 2023–26 that employment is an urgent aspect of economic and social development, such that the reduction in unemployment, as indicated by a lower number of unemployed persons in respect of the total number of workers, is a national objective for this four-year period. The Committee should note that this provides evidence of the Government’s commitment to including employment in strategic planning during this constitutional period, which is also part of the priority agenda of the MTSS, the INA and the other competent institutions, in which our strategic allies are undoubtedly employers’ and workers’ representatives, as well as the ILO Regional Office, which has its headquarters in San José in Costa Rica.

In the context of this progressive compliance, and as preparatory steps towards this objective, it should be noted that, in accordance with a recommendation made by the Committee of Experts in its 2023 report, ILO technical assistance is currently being received for the implementation of the National Strategy for Employment and Human Skills, which was unanimously approved by the National Employment Council, which is tripartite in composition, and adopted as one of its priorities. This shows that tripartite dialogue in democracies gives effect to the real objective for which we are meeting here today, that is the well-being of society as a whole.

This is how Costa Rica is making progress in the implementation of the National Strategy for Employment and Human Skills with its comprehensive perspective, basing its decisions on intersectoral alliances, outlining results with the focus on innovation and sustainability with a view to consolidating an active labour market policy which facilitates the links between supply and demand, thereby offering a response to the challenges referred to earlier.

Adopting a coherent approach, in this effort to ensure compliance with the Convention, the National Employment Programme was reformed by executive decree with a view to ensuring that interventions, through financial transfers, succeeded in achieving greater impact at the regional level and among beneficiaries, as an effective and appropriate response to the requirements of the productive sector. A new system of transfers was introduced which will help future workers in the process of integration, which is known as “active job search”, which consists of a cash transfer to support the beneficiary with the costs involved in integration into the labour market, as well as through training financed by the State.

With a view to ensuring more dynamic employment services within the framework of the SNE, a start has also been made in drawing up a work plan establishing action, time schedules, responsibilities, deliverables and potential resources to be invested, both by the MTSS and the INA, including the integration of the Empléate programme and its information system with the www.ane.cr platform, which I invite you to visit.

The SNE not only demonstrates the determined culture of the State of Costa Rica to give effect to its commitments, but also responds to a development in the vision of the public employment system, under which it is not confined to employment placement, but is converted into a robust system with diversified services and greater coverage. Its creation has been based on social dialogue through a process involving the executive authorities, the private sector and trade unions, which the Government welcomes. The Employment Council gave tripartite approval to the Management Model and Guidance Manual within the context of the SNE, in which differentiated routes are set out for vulnerable population groups. Similarly, I wish to describe to this honourable Committee the recently adopted reforms to the laws and regulations of Costa Rica with a view to stimulating employability and creating new jobs, among which emphasis should be placed on: the reform of the Basic Act of the National Learning Institute, bringing it into line with the principles set out in the Human Resources Development Recommendation, 2005 (No. 195); the Act on Dual Technical Training and Education, which is an important landmark, as it was developed and consolidated with the active participation of the social partners, with both laws offering legal security to employers and promoting conditions for the development of human talent based on a market logic; the National Skills Framework, which includes technical careers through skills standards; and the Act respecting export processing zones outside the GAM, which promotes a climate for investment with an impact on competitivity throughout the country, economic growth and employment generation in the areas where they are most needed. These measures are duly supported by their financing: for dual training grants, there is a budget of over 1,200 million Costa Rican Colones (CRC), which is equivalent to US$2.2 million; similarly, with reference to the services of the ANE and the regional units, there is a budget of over CRC5,600 million, equivalent to over US$10 million; with regard to vocational training and skills services, there is a budget of over CRC11,460, equivalent to US$21million; and for the National Employment Programme, in its various forms, the budget is over CRC19,000 million, equivalent to over US$35 million. We can convincingly assert that Costa Rica has taken firm and determined steps to offer more opportunities for labour market integration through the improvement of public services by providing them with financing. This is accompanied by macroeconomic policies to control inflation, which is today the lowest of all the countries of the OECD, and the implementation of policies to support entrepreneurship and to attract investment for the creation of decent quality employment, of which we are also informing the Committee.

These efforts made by Costa Rica have been recognized by the Committee of Experts, which has noted with interest the measures and action adopted within the framework of other Conventions, as indicated in its 2023 annual report, such as the Employment Service Convention, 1948 (No. 88), the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), and the Vocational Rehabilitation and Employment (Disabled Persons) Convention, 1983 (No. 159). We recognize that there are undoubtedly opportunities for improvement, and the present administration has the will and is ready to continue developing public policy initiatives in consultation, through dialogue and in agreement with the social partners. By way of conclusion concerning the progress made in giving effect to Convention No. 122, it is important for this honourable Committee to note the consistency of the State of Costa Rica in creating conditions through legal and administrative measures and public investment to raise the employability profile of our population, thereby promoting their labour market integration in an environment of peace and prosperity for everyone.

Employer members – We thank the Government for the oral and written information provided, of which we have taken full note. The Employer members place emphasis on the importance of States giving effect to the Convention. It is one of the four priority governance Conventions of the ILO and was ratified by Costa Rica on 27 January 1966. By way of background, the Committee of Experts has made observations on the application of the Convention on four occasions, that is in 2013, 2104, 2018 and 2022. However, this is the first time that the case has been discussed by this Committee.

The Committee of Experts has commented on compliance with the Convention by the Government in relation to the following issues: first, information is not available on the impact of the measures adopted to achieve the objective of the Convention, including those adopted within the context of the National Strategy for Employment and Productive Development, in relation to which it reminded the Government that it could request ILO technical assistance. Second, consultations were not held with the social partners and the CST was not convened to engage in tripartite consultations on employment policies and programmes. Third, the labour market is characterized by low levels of employment and limited access to job opportunities for women and young persons, and it is also necessary to match education to labour market requirements.

It also noted that the Confederation of Workers Rerum Novarum (CTRN) had observed that existing employment problems had been aggravated by the COVID-19 pandemic, giving rise to an increase in unemployment and underemployment, and in poverty levels from 21 per cent in 2019 to 30.4 per cent in 2020 and in levels of extreme poverty from 5.8 to 11 per cent.

What is the statistical context of employment in the country, according to the available data?

The Employer members observe that the Committee of Experts noted the 2021 Yearbook of Statistics of the MTSS, which contains various types of data for between 2018 and 2021 on levels of open unemployment, youth employment through the so-called Empléate programme, and the labour market integration results through the SNE.

However, the Government, in the report of 24 May 2023 provided to the Committee of Experts, while updating various statistics, indicates, among other matters, that: first, the national formal employment percentage in 2022 was 56.7 per cent (as indicated, 2 percentage points below the established objective); and that, in the same year, the national economy grew by 4.2 per cent as a result of external demand associated with the recovery of tourism and exports of services; second, the active population in formal employment is tending to increase, as shown by the increase of around 23 per cent between the third quarter of 2020 and the third quarter of 2022; and third, the open unemployment rate in Costa Rica in 2022 was 12.2 per cent on average, according to the Continuous Employment Survey of the INEC. Finally, in relation to education during the 2019–22 period, the objective exceeded initial expectations with the provision of 4,241 grants, equivalent to 176.7 per cent of the initial objective.

What is the legal and regulatory context for employment in Costa Rica?

With a view to identifying the reasons for the social context affecting employment, it is important to also take into consideration the regulations that have been adopted recently, and in this regard, according to the information provided by the UCCAEP, since 2017, in Costa Rica work has been carried out on various texts, policies, guides and decrees to reduce unemployment, while endeavouring to narrow vocational training gaps, as shown by:

(a) In 2017, a tripartite committee was established to review the adoption of the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204).

(b) On 3 December 2018, Act No. 9635 on the strengthening of public finances was adopted, adjusting the salaries and benefits of public officials, in a provision which went beyond the comments that had been made, and which is a provision that was subject to four hearings in the Constitutional Chamber of Costa Rica, which did not find any violations by the Act of any ILO Conventions.

(c) In 2019, action was taken to regulate dual technical education and training in Costa Rica, which makes it possible to develop skilled resources, promote the labour market integration of vulnerable persons and groups, retain young persons in the education system for continued studies, while the EFTP-Dual was created in the Ministry of Public Education as an advisory body.

(d) Moreover, in the CST, which is a tripartite body, and with ILO support, prior to the COVID-19 pandemic, work was being carried out on a tripartite agreement for the generation of decent employment in Costa Rica, which is awaiting approval.

(e) Act No. 9738 was adopted regulating telework.

(f) Through Decree No. 41776, the SNE, the Employment Council and the CST, which is tripartite, were also created.

(g) The National Strategy on Employability and Human Skills was promoted with the technical support of the ILO.

(h) Various bodies exist in education on the subjects of training, education and labour.

(i) The National Technical and Vocational Education and Training System was created and transformed in 2022 by Decree No. 43481.

(j) Act No. 9931 was adopted on the strengthening of vocation training for employability, social inclusion and productivity in light of the fourth industrial revolution and future employment.

In light of the above, the Employer members consider that, over and above the issues that may arise in relation to the scope of the various measures adopted, Costa Rica has an employment policy that is reflected in the legal provisions adopted, and in the data and indicators seeking a reduction in unemployment.

In any case, we must not forget that adequate dialogue on these types of policies is subject to the provisions of Article 3 of the Convention, which promotes the active participation of representatives of the persons affected, and of workers’ and employers’ representatives, so that, through their experience and views, they can contribute to structuring public employment policies through social dialogue.

We know that these processes of consultation and dialogue are not easy. They require the establishment of appropriate means of information for the organizations as a basis for the development of the exchange of information and views in order to achieve the best results, taking into account the positions of the social partners, before a final decision is adopted.

We are certain and convinced that the conditions exist for this purpose in Costa Rica as a means of ensuring the continued development of public employment policies within the framework of dialogue, and that there is a pre-disposition by employers through their chambers as the most representative organizations of employers in the country. By way of illustration, they promoted a reduction in the minimum basis for social security contributions with a view to achieving greater formality of employment in the country.

Within the framework of the situation as described, the Employer members consider it important for the national authorities of the Government to intensify their efforts to explore alternatives to improve dialogue and the exchange of information for all the partners, in relation to initiatives that it is already developing, and those that may by promoted in future in relation to employment policies and programmes, the inclusion of young persons in the labour market and gender equality in terms of opportunities for access to sources of employment, by seeking their adaptation and modernization in the context of the real labour situation of the country. Moreover, there is the real possibility of benefiting from ILO technical assistance in this respect.

Worker members - We thank the Government for the information provided. This is the first time for many years that we have examined a case concerning Costa Rica in this Committee. What has led us to do so is the need to assess the action taken by the Government, or rather the lack of action, for the proper application of the Convention in law and practice.

We must also recognize the significant numbers of workers trapped in the informal economy, and the manner in which the Government’s failure to take action is aggravating their difficult situation. Costa Rica continues to suffer from alarming levels of poverty and unemployment. Despite economic growth and development, a considerable part of the active population continues to be marginalized and deprived of opportunities for stable employment and decent living conditions. At the centre of this problem is the omnipresence of unstable and insecure forms of employment and the informal economy, a cradle for the development of exploitation, vulnerability and lack of protection. In Costa Rica, an alarming number of people are forced to work in the informal sector, in jobs that lack legal protection and social security benefits. These workers suffer from very low and scarce wages, precarious or non-existing job security, and a deep-rooted lack of access to essential health and social protection. This situation was exacerbated by the COVID-19 pandemic. The data used by the MTSS in its recent report need to be relativized against the background of the relationship between employment creation and poverty.

Although the Government is claiming increases in employability, the inactivity rate rose from 39.7 to 41.7 per cent, compounded by the increase in extreme poverty. This means that the level of jobs is not higher, but in contrast the number of men and women workers has increased who are no longer seeking work and who are not therefore taken into account in these statistics. Over 1 million women are outside the labour market in the country, which is around double the number of men. According to the Committee of Experts, the Government has admitted that it does not have information on the impact of the measures adopted to achieve the objective of the Convention. In this context, the lack of action and the inertia of Costa Rica in addressing the problem of poverty and unemployment are in our view very clear and a matter of concern. It is clear that the authorities have not formulated or applied comprehensive policies that really address the deep-rooted causes of this socio-economic crisis. The lack of robust initiatives to formalize the informal economy, provide support structures and incentives for the transition to the formal sector, as set out in Recommendation No. 204, bear witness to the apathy of the Government towards its own citizens.

The Convention provides a crucial framework for guiding efforts to combat poverty and unemployment, particularly in relation to the informal economy. This Convention places emphasis on the vital importance of promoting full and productive employment, giving priority to decent work for all and encouraging employment creation. Regrettably, Government action has been inadequate in aligning its policies and practices with the principles set out in the Convention. It has shown a flagrant lack of concern for the well-being and subsistence of its citizens, ignoring the urgent need for comprehensive employment policies.

In its comments on the Convention, the Committee of Experts refers to Act No. 9635 on strengthening public finances, which entered into force on 3 December 2018. The application of this Act imposed significant restrictions on collective bargaining in the public sector, by limiting in practice the budgets of State institutions. This made it necessary to reduce the funding for workers’ wages and benefits in the public sector, which has led to cases in which collective agreements have been abolished or not applied. Wages in public bodies have been frozen indefinitely, thereby worsening an already serious situation. Moreover, in March 2023, the Framework Act on public employment entered into force, which impedes the possibility of increasing the wages of the various groups of public employees, irrespective of annual inflation rates. Wage negotiations through collective bargaining are specifically prohibited. Both laws have very significant implications for workers’ rights, stable and secure jobs and the general well-being of society. By placing severe limitations on collective bargaining and eroding labour rights, the laws are undermining the Government’s ability to reactivate the economy, create decent jobs and give effect to the principles set out in the Convention.

Finally, the Government admits that it did not consult the social partners on employment policies and programmes during the period covered by the report, which presupposes a violation of Article 3 of the Convention. In conclusion, we cannot ignore the gravity of the current situation. The lack of action by the Government to address poverty and unemployment in Costa Rica is a series failure in its duties and a violation of the Convention.

Employer member, Costa Rica – As the representative of the employers of Costa Rica, I wish to indicate that the Federation of Chambers, as the umbrella organization, will focus solely and exclusively on the specific points covered by the Convention for which the country was convened before this honourable Committee, that is Convention No. 122.

As a sector that is respectful of our national legislation and the treaties and Conventions ratified by the country, we cannot and will not refer to matters that have not been raised by the Committee of Experts. We are bound to point out that there are instruments and the corresponding channels through which the arguments touched upon relating to the context of our country can be addressed at the appropriate time. Allowing the examination of situations that are not strictly related to the Convention gives room for the polarization of the discussion of this instrument and, in any case, creates an unhealthy precedent for future discussions. We cannot allow confusion between the standards under examination and the underlying political issues of each country.

In the first place, I would like to indicate that employers in Costa Rica are a positive and active sector, which seeks by all means to ensure that the policies which we promote have positive and overall impacts on our society. Legal certainty and respect for existing institutions are what we seek at all times as part of our commitment to democracy, with its system of checks and balances.

In view of the above, and taking into consideration the observations made by the Committee of Experts, I wish to point out the following. The Articles of the Convention on which the Committee of Experts has commented are the first and the third. The first provides that each Member shall declare and pursue, as a major goal, an active policy designed to promote full, productive and freely chosen employment. And the third provides that representatives of the persons affected by the measures to be taken in relation to the employment policy shall be consulted, and in particular representatives of employers and workers, with a view to taking fully into account their experience and views.

It should be noted that, in the case of Costa Rica, action has been taken for many years in relation to these themes of employment and employability, and it is a characteristic of our country that most subjects are worked on in a tripartite manner, through social dialogue, which is constantly promoted by the ILO. On this basis, employers have been proactive in the various types of national action that have been taken in relation to employment-related subjects which, in most cases, and in accordance with the customs of our country, are undertaken in a tripartite manner in accordance with Article 3 of the Convention.

It is noteworthy that, among the comments of the Committee of Experts, the Government is requested to indicate whether, in the consultations in the country on the application of ILO Recommendation No. 204, there were representatives of rural areas and of the informal economy. In this regard, Costa Rica was the first country in the world to work on the application of that Recommendation through tripartite social dialogue, in recognition that informality functions according to a logic of the denial of fundamental rights at work, that it was undermining the basis of our system of social protection and that it facilitates unfair competition. Moreover, through a simple search, including on the ILO’s own web page, there is a list of the trade union confederations of Costa Rica, the great majority of which have branches for workers in the rural areas of the country, and our federation, as the employers’ organization that is most representative of employers at the national level, also ensures the representation of rural areas. Accordingly, we do not understand this comment. From the viewpoint of employers in Costa Rica, represented by the Federation of Chambers, we are able to refer to national efforts on the subjects of employment and employability including, following ten years of discussions, the adoption in 2019 of the Act on Dual Technical Training and Education, on which the consultation process included tripartite dialogue at the legislative level.

Dual education became a public policy tool for access to a model of education which can generate the necessary experience to find decent employment, for which reason it forms part of a series of measures to achieve quality education, training principally focused on work for young people, and a successful transition to the world of work. The same year, the Act on teleworking and its regulations were adopted which, as they had been approved prior to the COVID-19 pandemic, made it possible to maintain many decent jobs during the pandemic and to cope with the lockdowns, as it was essential to have regulations that were capable of responding to the situation at that time. The CST and the Occupational Health Council, both of which are tripartite bodies, developed guidance for the implementation of teleworking in enterprises and the Guide on occupational health and the prevention of risks in relation to teleworking.

In 2019, the Decree on the development of the SNE was adopted with the objective of defining and establishing a logical system of governance for employment services in the country. In addition, the system includes an Employment Council, which is tripartite in composition and is the public policy body which articulates the services associated with the system.

During the period of the COVID-19 pandemic, various types of action were taken in support of employment, such as regulations on the suspension of labour contracts, which was already permitted by the labour legislation, the adoption of the Act on the reduction of the working day with a view to avoiding the need to dismiss workers, and the establishment of health protocols to protect the health of workers, among other measures.

In 2021, the Act was adopted on the strengthening of vocational training for employability, social inclusion and productivity to address the fourth industrial revolution and future employment trends, which reformed the Basic Act of the INA. The Act approved key conditions for the improvement of the training and skills improvement services provided by the INA and the National Training System. In 2022 and 2023, the current Government took the initiative of working in a tripartite context on a National Strategy for Employment and Human Skills, with the cooperation and support of the ILO.

In relation to education, which has a direct effect on employment issues, our country has various dialogue bodies, including the National Council of Technical and Vocational Education and Training, the Interinstitutional Commission of the Implementation of the National Skills Framework, and the Board of Direction of the INA, which is also a tripartite body.

Finally, I would like to indicate that efforts are being made by employers to participate in the processes for the development of a new comprehensive migration policy by the Directorate for Migration and Foreign Nationals, with the support of the International Organization for Migration (IOM) .

I do not wish to finish my intervention without first making a comment that concerns all of us who are present here today. It was only two months ago that the end of the COVID-19 pandemic was declared at the international level. And we cannot ignore the fact that today many countries are suffering from the consequences of the pandemic, including our own. During the pandemic, there were many serious effects at the economic level, many enterprises had to close, people lost their jobs and had no source of income, which resulted in significant increases in levels of unemployment and poverty in Costa Rica and throughout the world. The employers requested the Government on many occasions to take measures to promote economic recovery and, through social dialogue, various initiatives were taken to maintain jobs for as long as possible, clearly taking into account the health of workers. As a country that is still suffering from the onslaught of the COVID-19 pandemic, Costa Rica has made significant efforts in relation to employment and employability, seeking the well-being of the working population and the productivity and competitivity of private enterprises, which are made up of 97 per cent of micro-, small and medium-sized enterprises, which generate 87 per cent of the employment in my country.

For these reasons, the Federation of Chambers considers that our country is in compliance with the provisions of the Convention under examination and that the State, under various administrations and through social dialogue, has worked on multiple initiatives and national efforts to improve the employment situation. Moreover, in its 2023 annual report, the Committee of Experts has noted with interest the action taken by the country in relation to various Conventions, such as Conventions Nos 88, 111 and 159, all of which are related to employment. And yet, for reasons that we do not understand, it is this case that has been taken up here.

Let me conclude by indicating that the Federation of Chambers has social dialogue in its DNA. We are aware of the dictum that, to go further, we need to go forward together. To the Worker representatives, as we have traditionally done, we hold out our hand to continue building together a country that is more prosperous and inclusive. And we make a final call to the Government of the Republic, as has always been the case in life in Costa Rica, to continue promoting and strengthening spaces for social dialogue through the necessary policies so that in Costa Rica no one is left behind and so that, through decent work, we can create inclusion and equity for our society.

Worker member, Costa Rica – On behalf of the women and men workers of Costa Rica, I am addressing this honourable Committee to give our views on compliance with the Convention in our country, in accordance with the comments made by the Committee of Experts. We totally disagree with the arguments put forward by the Government on compliance with the comments of the Committee of Experts. According to the prestigious academic report on the state of the nation (2022), which is highly respected in Costa Rica, it has been many years since there was a national employment policy focusing on gender, youth and the unskilled. In its last report on the Convention, the Government did not provide data on compliance, and now that it has been placed on the short list, it sent the Committee a few days before the Conference, on 24 May, a document providing updated information on action to give effect to the comments of the Committee of Experts. We were not aware of this last-minute document and, as a result, we were not able to provide a relevant contribution from the trade unions, which reflects the Government’s lack of consideration and disdain for consultation and tripartite machinery, and we are not able here to say everything we would like on the subject. The document provides indicators of progress, based on indicators of unemployment, poverty, the increase in the GDP and other data, which do not in practice prove the implementation and development of an employment policy in accordance with Article 1 of the Convention, but tend more to show up patent shortcomings in its implementation.

There is no national employment policy or plan formulated through tripartite consultation or that is in the process of being implemented. Moreover, since the end of last year, production trends have been returning to their characteristic behaviour in the pre-pandemic years, that is a dual economy, with moderate growth and the generation of few opportunities for formal work. For this reason, the data used by the Ministry in its recent report needs to be seen in strongly relative terms with regard to the relation between employment creation and poverty. While the Government claims that there has been an increase in employability, the inactivity rate rose from 39.7 to 41.7 per cent, in addition to the increase in extreme poverty.

According to a report analysing the labour market and poverty in Costa Rice, prepared in 2022 and 2023 by the Economic Investigation Institute of the University of Costa Rice, the country is confronted by an increase in extreme poverty, which has increased from 6 per cent in 2022 to 8 per cent in February 2023. It is calculated that 265,528 workers are living in total poverty, according to the data published by the INEC for International Workers’ Day 2023. Some 20.9 per cent of employees work more than 48 hours a week and 15.1 per cent do not earn the minimum wage. Of these, 50.8 per cent are not paid for overtime hours and 27.7 per cent are not insured against employment risks, according to the Continuous Employment Survey for the fourth quarter of 2022. In the agricultural sector, 12,000 jobs have been lost for agricultural and skilled agricultural workers. According to the INEC Continuous Employment Survey, undertaken between February and April 2023, a total of 586,000 workers are not covered by social security, which is equivalent to over one quarter of employed persons in the country, or 28.4 per cent. Although in April the unemployment rate fell from 11 to 10.6 per cent, that is related to the significant number of persons who have stopped seeking employment, as in the first quarter of 2023 there were 2.10 million active persons, whereas the figure was 2.20 million in October 2022. Women make up the majority of those who have left the labour force over the past year (114,000 of the 196,000 persons who ceased to seek work), when comparing the data from the Continuous Employment Survey for the three-month period from February to April 2023 with the same period in 2022. Over a million women are outside the labour market in the country (1,167,547), which is around twice the number of men (664,547), and makes a total of 1,832,094 persons out of a population of 5,180,000.

Combined with poverty and the lack of work opportunities, one of the principal problems of the country is the growing income inequality and social inequality, and there have been no public policy responses to reverse this situation. Over the space of one generation, Costa Rica went from being one of the most equitable societies in Latin America to one of the most inequitable and unequal countries in the world. The Government’s report appears to ignore the fact that working conditions, wage policies and employment relations are inherent to and interlinked with employment and income policies, or should be. The National Productive Employment Strategy is a theoretical plan to the formulation of which the ILO Office in San José contributed with the previous Government, and it is now used as a point of reference in discussions, but no specific action is being taken and it is not being implemented. Several of the programmes described in bureaucratic terms by the Government are old, have not produced significant changes and do not form part of a national employment plan. There is no correlation whatsoever between employment policies and formalization policies, which have not been implemented either. In export processing zones, there are no unions or collective agreements, and therefore there is no sectoral tripartism. The Government is putting forward a Bill to intensify working hours, with precarious working time arrangements of 12 hours a day over 4 days, without overtime pay, thereby making the labour force as cheap as possible. The argument is being used that in practice in export processing zones there are 12-hour working days without overtime pay, which is not legal and it is therefore necessary to regularize and legalize them through the Bill, which is contrary to the Hours of Work (Industry) Convention, 1919 (No.1). According to the ILO resolution concerning the third recurrent discussion on employment (June 2022): “Social dialogue, including collective bargaining and tripartite cooperation, contributes to the creation of decent jobs”. It is therefore noteworthy that the Government is ignoring or overlooking the link between collective bargaining and employment policy and working conditions, as well as industrial relations deriving from the legal framework of employment policy.

With reference to the observation by the Committee of Experts, there are two laws which severely restrict the possibility of collective bargaining, and practically eliminate it, as well as trade union rights: the Act on strengthening public finances, which has restricted collective bargaining in the public sector, limiting the budget of State institutions and making it necessary to lower and remove wage components and bonuses, eliminating collective agreements or leaving them without effect, as well as freezing wages in the public sector indefinitely; and the Framework Act on public employment, which runs counter to the ILO resolution referred to above, which sets out the principle of supporting “the role of the public sector as a significant employer and provider of quality public services.” This Act is closely related to the former and endangers the exercise of trade union rights and collective bargaining through restrictions that are contrary to the Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87) and the Right to Organise and Collective Bargaining Convention, 1949 (No. 98), as well as preventing wage increases for public sector workers by consolidating the indefinite wage freeze. Wage negotiations are explicitly prohibited, among other aspects of the employment relationship, thereby voiding collective bargaining of its content.

With regard to tripartite consultation, effect has not been given to the comment relating to Article 3 of the Convention, nor has participation by trade unions been offered in any of the stages of action on policies relating to employment and the labour market. The existing tripartite bodies at the national level are stalled and are absolutely ineffective. The Decent Work Country Programme has not been renewed or taken on board by the Government, even though one of its priorities is the promotion of employment and decent work. The major deficit in the world of work in Costa Rica is the absence of social dialogue and tripartism. According to the prestigious report on the state of the nation (2022), the current social and political situation in the country is characterized by the normalization of measures that are contrary to human development following the progressive abandonment of the social contract in Costa Rica. Unilateralism is becoming consolidated in an alarming manner in Cost Rica. For this reason, we need strong action by the ILO and its supervisory bodies.

Government member, Colombia – I am speaking on behalf of a significant majority of Latin American and Caribbean countries, which wish to refer to the inclusion of Costa Rica in the list of countries to be examined by the Committee.

We welcome the information provided by the Government representative, which has provided information to the delegates and the Committee, from which it may be noted that: Costa Rica has been developing for some years a series of active labour market strategies and programmes with the objective of having a positive effect on the working population, with particular emphasis on the vulnerable population, including women and young persons, through the creation of active labour market programmes, as well as a change of focus in the form of the provision of employment mediation with a view to strengthening the links that are required between the needs of the market and the supply of institutional programmes.

We are aware that the country has given priority to the integration into the labour market of vulnerable categories or persons and the promotion of the matching of labour demand and technical and vocational training for workers. In this regard, the country has been making efforts in the area covered by the Convention. Examples of these efforts indicated by the Government include the consolidation of the SNE, based on social dialogue, the creation of the ANE, which is a public instrument that matches workers and enterprises, and the Act on dual training.

Finally, the Government’s indication should be emphasized that it is currently receiving technical assistance from the ILO Office for Central America, Haiti and the Dominican Republic, as recommended by the Committee of Experts in its 2023 report, for the formulation and development of the National Strategy for Employability and Human Skills.

We trust that the Government will continue taking action to ensure well-being and quality of life through social dialogue with the social partners.

Finally, we urge the ILO to continue providing technical cooperation to Costa Rica.

Employer member, Guatemala – The Convention provides that Member States shall declare and pursue an active policy designed to promote full, productive and freely chosen employment with a view to stimulating economic growth and development, raising levels of living, meeting labour requirements and overcoming unemployment and underemployment.

As we have already heard from the Government, I note in this particular case that national efforts have been made to improve the national employment situation and the current Government is only just commencing its work in relation to employment, which is being carried out through the means and corresponding bodies, with the promotion of appropriate reforms and provisions.

It is important to point out that the Government has given priority to the public policy designed to promote an appropriate ecosystem to facilitate the labour market integration of vulnerable persons and the technical and vocational training of workers, through the current National Development and Public Investment Plan.

In addition to the efforts that the country has been making since 2019, work has progressed with the social partners on a series of instruments, policies, guides and decrees with a view to helping to reduce the levels of national unemployment, overcome gaps in vocational training and reduce informality.

Among these efforts, reference may be made to an Act which regulates dual technical education and training, which is necessary to adapt to the needs of the labour market, which requires labour focused on technical skills and in the forefront of technological development, thereby offering labour market integration for persons and groups that are vulnerable or at social risk. It is a public policy tool for access to an educational model that can generate the necessary experience for subsequent integration into formal employment.

The Act on teleworking was also adopted and helped to retain many jobs during the COVID-19 pandemic.

For all these reasons, it appears to us that today’s examination of this case by this supervisory body is not related to a failure to comply with the Convention, but is more a case of progress by the State of Costa Rica.

Worker member, Singapore – Let me start by saying that it is very disheartening to observe that the Government has yet to develop concrete policies that effectively tackle the lack of jobs and bridge the gap between economic growth and employment generation.

Costa Rica’s failure to establish a national policy aimed at generating more and higher quality jobs is a cause for concern, necessitating a comprehensive range of policy interventions. In addition, the Government’s omission of tripartite consultations for the formulation and implementation of employment policies is disappointing.

A critical aspect to consider is the connection between employment policies and formalization strategies, which ensure investment in expanding basic social protection. Recommendation No. 204 serves as a foundation for progressive formalization, leading to sustainable and equitable growth. Regrettably, the Government appears to have taken no action to comply with this Recommendation.

While the Government’s report alludes to programmes for micro- and small enterprises, benefiting about 200 SMEs, the impact of these initiatives on the overall universe of existing SMEs is negligible. Significantly, the Government has failed to mention the exact numbers of jobs created through all these programmes.

On the contrary, the Government’s proposal to increase taxes on SMEs by up to 30 per cent would likely result in the exodus of a vast majority of small companies, consequently exacerbating informality and unemployment.

Moreover, the Government’s support for the dual education modality is flawed and exploitative, as apprentices lack social security, rights and fair wages. It is concerning that the Advisory Commission for Dual Education consists of 11 members, with only 1 representing workers.

Lastly, I would like to draw your attention to a recent report by the UN Special Rapporteur on contemporary forms of slavery, which highlights serious cases of modern slavery in Costa Rica. These cases include the banana and pineapple sectors, the security sector, the retail sector, domestic service, construction, and even State activities, which run counter to the provisions of the Convention.

The United Nations Special Rapporteur offers important recommendations to the Government, emphasizing the need to improve labour inspection through the allocation of sufficient resources, both human and financial, as well as granting additional powers, such as on-the-spot sanctions.

In conclusion, I urge the Government to address all these shortcomings promptly, taking into account the urgency of implementing effective employment policies and rectifying all the prevailing issues.

Employer member, Argentina – The Republic of Costa Rica has been included on the list of cases submitted for examination by this Committee for alleged failures of implementation or violations of Articles 1 and 3 of the Convention. The Government has indicated that it duly implemented the so-called Bicentennial National Plan for Development and Public Investment. This programme envisages the adoption of measures to strengthen the productive capacity of the country and promote employment. We recall that the Committee of Experts has noted that the current challenges include the need to align education with labour market requirements since, although the efforts made by the Government are recognized, the 2018 National Enterprise Survey showed that there were a high number of vacancies due to the lack of the required skills among job applicants. The study provided by the Government also shows women and young people still have lower activity rates and have limited access to employment opportunities due to their lack of experience and training in non-traditional branches (such as science, technology and engineering). This is a very important issue for employers, as it is not possible to strengthen the productive capacity of a country without improving the employability and vocational training of workers. The Government has indicated that a public policy has been developed with a view to giving priority to the labour market integration of vulnerable persons (women, youth, persons with disabilities) and that priority has been given to technical and vocational training through the National Plan for the Development of Public Investment which, according to the Government’s report, has been a priority issue. Indeed, the ILO provided technical assistance, as suggested by the Committee of Experts.

When reviewing Articles 1 and 3 of the Convention, it can be seen that the first Article indicates that each Member shall declare and pursue, as a major goal, an active policy designed to promote full, productive and freely chosen employment. The objective of the Convention is to stimulate economic growth and development, with a view to raising the levels of living of workers, meeting the labour requirements of enterprises and endeavouring to resolve the problems of unemployment and underemployment. However, the active policy has to be drawn up in consultation with the representatives of workers’ and employers’ organizations, which are those affected by the measures to be taken, and such policies have to be subject to tripartite consultation. Despite the fact that the measures developed can always be improved, it is not clear that the Government has not made significant efforts in this regard. On this subject, it is worth recalling that it is the ILO that has supported the Government in developing practical policies and measures to build bridges and trust in the participatory and tripartite process. We believe that the Government has shown that there is the political will to continue promoting employment policies and action to improve employability.

Worker member, Argentina – We are examining the case of Costa Rica in relation to the failure to give effect to the Convention which, as we know, has been identified by the Governing Body as one of the four priority Conventions in view of its importance for the operation of the system of international labour standards. It is a governance Convention, as indicated in the ILO Declaration on Social Justice for a Fair Globalization, and its provisions are of the greatest relevance to the creation of decent work, the priority goal of this Organization.

As indicated in the report of the Committee of Experts, the achievement of these objectives is limited in Costa Rica, as the report indicates that, without prejudice to the economic plans referred to by the Government to remedy the situation, there are no indicators or data showing that any results have been achieved.

Although the lack of compliance with the Convention relates to the absence of policies for the creation of genuine quality employment, the report makes special reference to the situation with regard to public employment. In this regard, the Committee of Experts notes the adoption of Act No. 9635 to strengthen public finances, which provides for the adjustment of the wages and benefits of public employees, in violation, as indicated by the Workers, of Conventions Nos 87 and 98, as it provides that issues that have an impact on the national budget, such as wages, cannot be the subject of negotiations. There is accordingly no collective bargaining in the public sector, wages are frozen by the Act on public finances and, at the same time, the Framework Act on public employment explicitly prohibits collective bargaining on wages.

The Committee of Experts had made comments previously in this regard, in its 2020 observation, as indicated in the report, and emphasized that workers in the public sector “shall enjoy the right to collective bargaining, including with respect to wages, and that […] there are mechanisms through which compliance with budgetary limitations can be reconciled with the recognition of the right to collective bargaining.”

The fact that it is impossible to engage in collective bargaining in the public sector inevitably affects compliance with the Convention, as social dialogue between the parties to determine fair wages and adequate conditions of work is a fundamental tool that contributes to the creation of decent and quality employment. It is for this purpose that compliance with the Convention requires the promotion of active employment policies and the consequential subjective right of workers in the country to obtain decent work, which is essential for the reduction of poverty and inequality.

As this is not reflected in the current situation, it must be addressed in light of the seriousness of the case.

Employer member, Colombia – According to the information provided by the Government, Costa Rica has made noteworthy efforts to provide an effective response, with the respective tripartite consultation, to employment requirements.

It is important to emphasize that in Costa Rica there are two bodies covering the world of work which operate in a tripartite manner. I am referring to the CST and the Employment Council. Both, in relation to labour, have given priority to the adoption of measures that we consider appropriate. For the Government, it is of great importance for these bodies to benefit from the participation of the most representative employers’ and workers’ organizations. And accordingly, I would like to focus on certain measures on which emphasis should be placed and in relation to which Costa Rica is making progress.

On the one hand, with ILO technical assistance, Costa Rica is making progress in its National Strategy for Employability and Human Skills. Under this Strategy, the social partners participate in the design and implementation of solutions to improve conditions of employment. Similarly, the SNE, for which strategic direction is provided by the tripartite Employment Council, has operational bodies to promote positive dynamics in the labour market. The Government has allocated resources to consolidate the Labour Market Observatory as a tool that is necessary for the understanding and transformation of the structural causes of employment problems. Based on acceptance that one of these causes is related to the skills required in Costa Rica, there is an Advisory Commission to Promote Dual Technical and Vocational Education and Training, which has the purpose of evaluating the relevance of the skills demanded on the labour market. This is only a small sample of some of the measures that are being taken forward in the right direction by tripartism in Costa Rica.

On the other hand, I would like to emphasize that, in relation to unemployment and informality in Costa Rice, although their levels are a matter of concern, with figures of 11 and 43 per cent, respectively, in the first quarter of 2023, it is clear that many positive steps are being taken. The informality rate in Costa Rica, which is 42.9 per cent, is below the regional average, which is around 50 per cent. The unemployment rate has fallen by 2.3 percentage points in comparison with the same period last year, leading to the recuperation of over 240,000 jobs. It is also worth underlining with regard to the composition of employment in Costa Rica that 75 per cent of workers are employees, which is an atypically positive indicator in comparison with other countries in the region.

Finally, it is clear that the best employment policies are policies that improve productivity, industrialization and economic growth. It is also clear that the structural problems of unemployment and informality in Costa Rica, as in most of Latin America, require long-term solutions, and we cannot therefore expect short-term solutions in such a complex context.

Worker member, Uruguay – As has been said, it is necessary to relativize some of the date used by the Ministry of Labour in its late report, for which no consultations were held, which was sent to the Committee of Experts. It should also be noted that the Government refers to the link between employment creation and poverty, even though extreme poverty has increased. It is not therefore fanciful to address the subject of poverty in this discussion, nor does it remove the focus from the central issue that we are here to examine.

Although the economy has returned to levels of production that prevailed prior to the pandemic, it has done so with a lower demand for employment. The insufficient level of job opportunities has meant that income poverty has remained at historically high levels. In July 2020, 26.2 per cent of households were below the poverty line and 7 per cent were in extreme poverty, therefore giving an indicator of 23 per cent in 2021, with official estimates for 2022 which place it at 23 per cent, although with 15,934 new households in this situation.

Reports prepared by the University of Costa Rica indicate that the country is facing an increase in extreme poverty. As already noted, today 8 out of every 100 citizens of Costa Rica are in this socio-economic category and are not able to meet their basic food needs. This increase has meant that 32,000 households and 103,000 people have been added to the population suffering from poverty in the country.

In view of this situation, we urge the Government to launch genuine social dialogue for the development of an employment policy with decent work that contributes, among other aspects, to reversing this serious situation of poverty experienced by the country.

Employer member, Chile – With reference to the case of Costa Rica, it is surprising that it has been selected among the cases to be examined by the Committee. However, as it is under examination, it is important to emphasize that it is a case of progress in view of the many initiatives for the active promotion of formal and protected employment.

In particular, since 2019, Costa Rica has been working on a series of measures, policies, guides and decrees to reduce unemployment, close gaps in vocational training and reduce informality. And the only remaining shortcoming on which the country needs to keep making progress, as indicated by the Committee of Experts, is to have more and better statistical information as a basis for assessing the impact of the employment creation measures that have been adopted. But this cannot obscure the enormous efforts made by the Government through various measures to improve employability in Costa Rica, many of which have benefited from ILO assistance.

In recent months, the MTSS has been working on a National Strategy for Employability and Human Skills in Costa Rica with ILO technical support, which has been submitted to the partners in the Employment Council, a body with tripartite representation. This Strategy must also be approved by the CST, which is another tripartite body with decision-making powers.

Time is short in this intervention to enumerate and provide details of the many public efforts with tripartite participation that have been undertaken to promote formal and protected employment. But this is a very good opportunity to recognize the many efforts made and to outline Costa Rica as a case of progress that should be taken into account as an example.

Worker member, Spain – The Committee of Experts notes in its report the observations made by the trade unions on the Convention in 2017 and 2021. That coincided with the period during which Costa Rica experienced an enormous deterioration at the socio-economic, political and also democratic levels.

As indicated by reports, such as the report on the state of the nation, the country has lacked for many years a general national employment policy. Even the reports provided by the Government to the Committee of Experts reveal serious problems in relation to access to employment, with special emphasis on the difficulties faced by women and young persons.

With reference to the situation of women workers, women account for the majority of those who have been excluded from the labour force over the past year. Over 1 million women are outside the labour market, which is around double the number of men. The net labour force participation rate of women is 26 percentage points lower than that of men, and they account for 54 per cent of the unemployed, even though they represent less than 40 per cent of employment. This picture of clear segregation of women workers bears witness to the absence of and need for an employment policy without discrimination of any type, as required by Articles 1 and 2 of the Convention.

Employment policy is rightly a key instrument and, in addition to complying with Convention No. 122, it also has to be in line with other ILO Conventions, some of which are fundamental. We therefore consider that the Committee must take into consideration the issues raised by the workers of Costa Rica to the effect that one of the basic initiatives with an impact on employment, the Act of 2019 on the strengthening of public finances, was adopted despite the fact that it is contrary to various ILO Conventions, including Conventions Nos 87 and 98. This important statement is supported, as indicated by the Committee of Experts, by a technical memorandum prepared by the ILO.

Moreover, the Committee of Experts itself refers to its 2020 observation on the application of Convention No. 98, in which it trusts that the guarantees of Convention No. 98 will be taken fully into account in the Bill on public employment.

The Government endeavours to justify the implementation of the National Strategy for Employment and the Development of Production, in the same way as its employment policy, but has not even provided the Committee with information on its results, just as it has not provided information on the impact of other initiatives that are supposedly in favour of employment.

I will conclude by saying that the situation in Costa Rica demonstrates the urgent need for the Government to develop an employment policy in accordance with the Convention. That is, an employment policy based on consultation with workers’ representatives, with their cooperation in its formulation and counting on their support for its implementation.

Employer member, Mexico – In the first place, we wish to place emphasis on the effort made by the Government to give effect to the Convention, Article 1 of which provides that, with a view to overcoming unemployment and underemployment, an active policy designed to promote full, productive and freely chosen employment shall be pursued as a major goal.

Under the so-called Plan Rescate 2014–18, one of the three pillars for recovery in Costa Rica was economic growth and the creation of more and better jobs, including through the reduction of poverty and inequality. On 27 May 2014, the Council of the Government of Costa Rica took the decision to establish the employment policy as a strategic institutional objective of the State of Costa Rica to combat poverty and inequality, and entrusted the MTSS with drawing up the policy.

In view of the above, we consider that there are insufficient reasons for placing the Republic of Costa Rica on the list of cases to be examined by the Committee.

It is also noteworthy in this case that the Committee of Experts has included comments on Conventions Nos 87 and 98, even though the issues are totally separate from employment promotion.

In this light, there is clearly no basis for extending the alleged violation of one Convention to other Conventions, particularly since, if there were issues relating to freedom of association, the right to organize and collective bargaining, they would merit special treatment, which has not been done in the present case.

As a result of the COVID-19 pandemic, which was experienced at the global level, it is evident that all countries in the world felt the impact on their economies, and consequently all countries are in the recovery phase. Nevertheless, we are sure that, in view of the efforts made by Costa Rica to give effect to the Convention, the unemployment curve will begin to diminish, to the benefit of the population.

Employer member, Honduras – The objective of this Convention is to ensure that Member States declare and pursue policies to promote decent employment with a view to meeting the needs of the labour force, in order to overcome the problems of unemployment and underemployment. Accordingly, in accordance with the requirements of the Convention, the Government has given priority to a public policy intended to develop an adequate ecosystem to facilitate the labour market integration of vulnerable people, based on a better matching of the demand for labour and the technical and vocational training of workers through the National Plan for Development and Public investment (2023–26).

It is very noteworthy that the Government has been found not to be in compliance with the Convention, when it has repeatedly provided full details in its reports of the efforts made and the various types of action that have been taken through the creation of instruments, policies, decrees and guides, among other measures, with priority being given to reducing the incidence of unemployment at the national level, remedying the gaps in vocational training and reducing informality. We therefore consider that the comments made by the Committee of Experts in its report lack coherence in their interpretation, as the Government and the constituents have demonstrated the political will to take action for the adoption of appropriate reforms and standards in the SNE.

In light of the above, we are confident of the commitments and progress that has been prioritized by the Government in labour matters, and we therefore consider that, instead of being brought before the Committee, there should be recognition of the progress achieved by the Government within the context of the Convention. We remain firmly convinced that it will continue to take action to ensure the well-being and living standards of workers in Costa Rica, within the framework of the participatory processes and tripartite dialogue in the country.

Observer, Confederation of University Workers of the Americans (CONTUA) – It is not often that we deal with the case of Costa Rica in this Committee, as it is a country that has historically been in compliance with international labour standards, and in our region it has always been a reference in relation to the promotion of human rights. And yet, despite its history, in recent years there has been an enormous reversal of social protection in Costa Rica, and since the present Government took office, regressive measures have been adopted which are severely affecting workers. The most severe attack has been on public sector workers, who are to be covered by a new Act on public employment, which removes the benefits of all the collective labour agreements that have been concluded in the various State bodies, unifies administrative careers in a single scale managed unilaterally by the Ministry of Planning and freezes salaries in a single scale known as the global wage, which reduces the salaries of workers whose rates are above those set out in the central scale.

Years of collective bargaining and the development of professional careers, for example in the health and education sectors, have been removed at a stroke. This is no accident, as unionization in Costa Rica is essentially concentrated in the public services, and the Government is undertaking a strong campaign against trade unions and union members, which started with the absolute prohibition in certain cases, and abusive restrictions in others, of the exercise of the right to strike in public services, and is now continuing with the denial of collective bargaining. What is coming is frightening, with draft legislation to intensify the working day up to 12 hours, greater precarity of employment and the reduction in the cost of labour as much as possible. The projects and programmes announced here by the Government are isolated measures which are not getting through to the people. Dual education is precarious, without rights, wages or social security. Interventionism in collective industrial relations is seen clearly in the public universities. The Government is refusing to approve collective agreements. The Framework Act on public employment, combined with the Act on fiscal matters, is in violation of the independence of universities, a historic achievement by the people of Costa Rica and an essential bulwark in the defence of the social rule of law in the country.

Urgent action is needed by the ILO in Costa Rica to collaborate in good faith with employers and workers, who are desirous of defending decent work in all its dimensions, combined with respect for human, social, economic and cultural rights. We need to slow down the retrogression and work to recover the path of social dialogue and the principles set out in the Convention.

Government representative – It is important to reiterate in this second intervention in this session that, over the past five years, Costa Rica has made progress in the implementation of policies and programmes that seek to contribute to inclusive economic growth and the well-being of everyone, based on a human rights approach.

The reduction of economic, social, regional, gender and other gaps has been the objective of our active labour market policies, social protection policies and differentiated strategies for specific population groups. Their implementation and results have been influenced and conditioned by a context, as I indicated earlier, of the improvement of public finances and the COVID-19 pandemic.

I also wish to place special emphasis on the fact that the Committee of Experts has noted with interest the measures adopted by Costa Rica within the framework of other Conventions, including Convention No. 88, in relation to which it noted: “The Committee notes with interest the adoption of Decree No. 41776 […] establishing the National Employment System (SNE) […] to respond both to the dynamics of the labour market and to the needs of jobseekers or persons already in employment in order to retain their work or improve their conditions of work, giving priority to those in conditions of vulnerability.”

The Committee of Experts has also noted with interest the information provided by the Government in relation to Convention No. 111, emphasizing that “discrimination on the grounds of health status has been prohibited with the adoption of […] the overall reform of the General Act on HIV/AIDS, which amends section 404 of the Labour Code”, as well as “affirmative action in support of persons of African descent, which establishes measures to promote access for the population of African descent to employment and education”.

Finally, it noted with interest “the numerous measures implemented with a view to facilitating the labour market integration of persons with disabilities” within the framework of action to give effect to Convention No. 159.

With reference to persons with disabilities, it should be noted that Executive Decree No. 41761 of 2019 created the National Commission for the Employability and Work of Persons with Disabilities (CNETPcD) as a body to influence national employability and entrepreneurship processes, through the adoption of technical and political strategies for the effective inclusion and retention of persons with disabilities in the public and private sectors.

The Commission is of tripartite composition, with representation of the Government, the productive sector and civil society, through organizations for persons with disabilities. During a sitting held on 30 May, the Biennial Work Plan of the Commission on labour market integration was unanimously approved. And now I also have to make reference to Act No. 8862, which reserves at least 5 per cent of vacancies in the centralized and decentralized public sector, as well as in public non-State bodies and public autonomous enterprises.

The MTSS, as the institution responsible for the constant and explicit follow-up of the Act, has deployed a strategic plan to accelerate action so that public institutions comply with the employment integration commitment in accordance with the procedures set out by law. At present, there are around 882 persons with disabilities who have entered the ranks of the public sector in Costa Rica through the reserved 5 per cent quota.

My colleagues in the Department for Equality of Opportunities for Persons with Disabilities (DIOPCD) of the National Social Security Department of the MTSS are leading at the institutional and interinstitutional levels the formulation of public policies for equal treatment and equality of opportunities for persons with disabilities in social and labour matters with a view to promoting their labour market inclusion, protecting their labour and human rights and promoting decent quality work for them.

I should refer to the support of the National Support Programme for Poverty and Social Mobility (PRONAMYPE), which from its origins was established as an executive arm for public policies to combat unemployment, which is one of the main sources of inequality in the world of work. The Social Solidarity Economy Department of the MTSS manages this programme, which is an instrument to support individual and collaborative associative enterprises.

Its contribution to society is directed towards promoting social mobility through alternative sources of income for persons and their families through the creation of opportunities for the generation of self-employment through productive projects, also known as micro-initiatives.

I cannot fail to refer to other specific measures to ensure the elimination of discrimination in relation to women and employment, which it is essential to include in this review: (1) the special emphasis placed by the National Labour Inspection Department (DNI) on the subject of women’s rights through the programme of inspections focusing on gender, which has led to the identification of different treatment and inequalities between women and men in the field of work in such areas as remuneration, sexual harassment, labour harassment, the segregation of occupations on the basis of traditional gender roles; (2) the increase in demand for the Empléate programme through its Strategic Alliance for Bilingualism, which has in most cases assisted women; and (3) the results achieved through the provision of the temporary unconditional subsidy in response to employment assignments as a result of the restrictions and the crisis caused by COVID-19, known as the Bono Proteger (protection voucher), of which 52.4 per cent of beneficiaries were women.

We are also working on the implementation in practice of the national agenda for paid domestic work, which will be an essential tool to combat informality and will particularly benefit migrant women, who are those who basically work in the domestic sector in Costa Rica. This is a requirement that we are currently addressing with ILO assistance.

All of the above is in harmony with the information provided previously and shows not only the existence of the political will and many good practices, which can all be improved, of course, but also that the Government retains the conviction to continue taking action to ensure the well-being and quality of life of workers in Costa Rica, within the framework of participatory process and dialogue with the social partners, without which it would undoubtedly not be possible to give effect to this Government action.

It is important for the Committee to understand the consistency and will of the State of Costa Rica to create the legal, administrative and investment conditions to raise the employability profile of the population, which has been and will continue to be our constant endeavour.

Similarly, the Government is determined and committed to creating the macroeconomic conditions, as I indicated previously, for national and international investment capital to find the best environment possible in a region that is constantly becoming more competitive and in an environment with very serious migration challenges.

In this regard, we welcome the opportunity to explain in this Committee some of the action that we are taking and that Costa Rica is desirous of extending and harmonizing relations with all parties with a view to continuing the tradition in Costa Rica of sincere tripartite dialogue with the objective of achieving better living standards for our population.

Chairperson – Thank you Vice-Minister and your delegation for participating in the work of the Committee, and of course we take note of the commitment of the Government in staying engaged with the Committee, as well as the social partners.

Worker members – We thank the Government for its comments, and we also thank all the other speakers for their interventions.

We wish to recall, in the first place, that the list of cases examined by this Committee is a result of consensus between Employers and Workers, and that Costa Rica has therefore correctly been included in the list of cases to be examined by the Committee. As we indicated in our first intervention, Costa Rica continues to suffer from very high levels of poverty and unemployment. Despite the arguments made in favour of economic growth and development, as in many countries in our region, we find that in Costa Rica a considerable proportion of the population continues to be marginalized and denied opportunities for stable employment. For this reason, this is not a case of progress.

In light of these considerations, Costa Rica must review its policies and programmes with a view to promoting investment in the creation of decent, stable and lasting employment and in reducing poverty. Moreover, taking into account the characteristics and composition of employment in the country, it is clear that specific measures need to be adopted to open up channels for the formalization of the informal economy, in accordance with Convention No. 122 and Recommendation No. 204. In the context of the post-pandemic recovery, employment policies must address in particular the needs of workers who were or are still severely affected by the pandemic and its consequences. Employment policies must be comprehensive, as isolated programmes and measures that do not reach people are ineffective and insufficient. Employment policies need to address the major inequalities on the labour market which have a major effect on women, as we have explained in detail. Greater efforts are needed to achieve greater equality of opportunity in terms of access to employment, as well as equality of treatment in conditions of work. All of these measures will have to be supported by a robust system for the collection and analysis of statistical data, especially on the situation and current trends of the active population, employment, unemployment and underemployment throughout the country. The Government must repeal the Act to strengthen public finances and the Framework Act on public employment, as neither of them are in compliance with the requirements of Convention No. 122, nor with those of Conventions Nos 87 and 98. Costa Rica needs to re-establish, at the basic level, all the social dialogue procedures and embark upon effective and genuine consultations with the social partners, particularly to discuss any legislation that has an impact on employment generation. Tripartite processes must be activated at the national level. In view of the above, for all the reasons given by the Worker members, Costa Rica is not a case of progress. Finally, we call on the Government to accept a direct contacts mission.

Employer members – We thank the Government for the further information and clarifications provided, as well as for the contributions from all those who took part in the discussion. As Employer members, it is for us to recall that, in definitive, as a consequence of the effects of the COVID-19 pandemic, we are all faced with the task, governments, employers, workers, each from their position and in accordance with their views, of seeking the adoption of policies and strategies for the recovery of the economies of each country, and as a consequence, the sources of employment that have been substantially affected throughout the world.

The concern that we have outlined must not only respond to the needs and real situation in each country, but must also take into consideration aspects that are also essential, such as: the formalization of employment; the inclusion of young persons in sources of work; gender equity in the application of these policies; the generation of channels and alternatives for technical and vocational skills; the reduction of wage gaps; non-discrimination; the labour market integration of persons with disabilities; and the promotion, insofar as possible, of what in this Organization are described as green jobs. These are all objectives that are not easy to achieve, but they must provide the motivation for all of us; they are aspects that have been considered by all the partners in Costa Rica, and on which there is full predisposition among employers in the country. While we have heard the concerns of the Workers regarding the manner in which other Conventions are applied, it is important to focus our efforts and to limit the discussion to the Convention that is under examination here, that is Convention No. 122, in respect of which it has been seen that there has been significant progress in Costa Rica through the many programmes that have been developed and which, as with everything, can of course be improved and updated as a function of the social situation in the country. Within this framework, with a view to avoiding unnecessary susceptibilities, and so that the progress made in terms of laws and regulations, and the reasons for the action taken, which have also been described today, it is of vital importance for there to be adequate discussion with all the partners on employment plans and policies. Appropriate information must be provided to both workers’ and employers’ organizations so that, through social dialogue, everyone can contribute to this effort through their experience, views and interests, in accordance with Article 3 of the Convention, which precisely seeks a dynamic of collaboration.

In light of the above, having noted the explanations provided by the Government during this meeting and, as indicated and reiterated, recalling that it has employment policies, the Employer members recommend the Government: first, to intensify efforts to improve the process of dialogue and information for all actors on the employment policies and programmes that are being developed and those that may be developed in future, all within the framework of the Convention, ensuring the continuity of tripartite social dialogue, which has been undertaken as the principal means of resolving the employment problems of the country; and, second, to avail itself of the technical support that it is already receiving from the ILO, which is nothing new for Costa Rica, for certain programmes, with a view to improving the process described above, and to update information on the results achieved through the implementation of its employment plans and programmes.

The Committee’s conclusions

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

The Committee regretted that the Government had failed to establish and implement a comprehensive national policy designed to promote full, productive and freely chosen employment in full consultation with the social partners.

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

- adopt a comprehensive national employment policy to promote the creation of full, productive and freely chosen employment opportunities in line with the Convention;

- intensify efforts to strengthen social dialogue and include the social partners on the initiatives already developed as well as those that may be implemented in the future, notably on employment policies and programmes, incorporation of young people in the labour market as well as promotion of gender equality and equal opportunities in access to employment;

- provide information on the impact of the measures adopted to achieve the objectives of the Convention, including those adopted under the National Strategy for Employment and Productive Development (ENDEP) and the Bicentennial National Development and Public Investment Plan (PNDIP) 2019–22;

- take measures to ensure that the Act on strengthening public finances fully complies with the Convention and does not infringe on fundamental principles and rights at work;

- indicate the manner in which representatives of workers’ and employers’ organizations have been consulted, as well as representatives of the parties involved in the design, development, implementation, monitoring and revision of the active labour market measures adopted, including the Act on strengthening public finances;

- ensure tripartite consultation on the development of employment policies and programmes by creating a national tripartite council.

The Committee requests the Government to provide the Committee of Experts with full and complete information on the above issues before 1 September 2023.

Government representative – The conclusions read out today in this room for the case of Costa Rica tarnish the work of this Committee. It is a matter of concern that they demonstrate a lack of objective and rigorous analysis of the full information provided.

The conclusions request information on old employment initiatives, from five years ago. With this inexplicable slippage in time, they disregard and ignore the current situation on the labour market, as well as all of the action duly reported to this Committee and described in this room.

What is missing is a technical examination based on in-depth reflection into the essence of the provisions of Convention No. 122, but which has gone beyond that scope by including aspects such as the Act on the strengthening of public finances. As a consequence, and this Committee should note, there is a danger of legal insecurity, which is a risk for an effective culture of compliance.

Nevertheless, Costa Rica wishes to confirm once again its firm and determined commitment to taking all available public policy action for employment for all persons, and particularly to promote national development through constructive and good faith dialogue guided by democratic principles.