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

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Guinea-Bissau (Ratification: 1977)

Discussion by the Committee

Chairperson – Let us start our discussion with the case of Guinea-Bissau on the application of the Minimum Wage-Fixing Machinery Convention, 1928 (No. 26). I invite the Government representative of Guinea-Bissau, the Director-General of Labour, to take the floor.

Interpretation from Portuguese: Government representative – It is a great honour for me to speak to you as the representative of the Government of Guinea-Bissau. Thank you for giving me the opportunity to express Guinea-Bissau’s gratitude to the ILO.

One of the objectives of the United Nations (UN) 2030 Agenda for Sustainable Development which Guinea-Bissau endorses is sustainable economic growth, with full, productive and decent employment for all. To achieve sustainable development, economic growth must go hand in hand with the promotion of decent work. Unfortunately, all over the world, there are cases of forced labour, in particular child labour, as well as situations of precarious work, in particular for immigrants.

Employment is not always stable or decent, quite the contrary. Employment often takes place in poverty. Decent work presupposes the creation of equal opportunities for men, women, young persons and persons living with disabilities. So that they can fulfil themselves in productive work with fair pay, with the possibility for them and their families to be protected, and to have prospects for personal development, they must have the freedom to express their concerns and aspirations. Today, it is true that we cannot promote strong, durable and inclusive economic growth if we do not work on improving the labour situation and the living conditions of our workers, and if we do not provide them with subsistence guarantees, in particular when they lack resources or are unable to work.

The Government of Guinea-Bissau is fully committed to promoting decent work. We are one of the signatory States of the Cotonou Agreement on trade and labour standards for productive, secure, high-quality and inclusive employment in order to create conducive conditions for better economic growth in the country. From this perspective we have implemented a large number of projects. We are implementing the economic and social policies adopted by our Government, which aim to create equal, dignified opportunities for the whole active population in order to combat child labour and create fair conditions of pay. Moreover, the country is focusing on a whole set of measures to be adopted.

With regard to international labour standards, the ratification of the Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87), is one of the milestones that we have recorded. We are also planning to ratify other Conventions.

A new Labour Code was adopted in 2021 and promulgated by the President of the Republic in 2022, with ILO support. All reports for Guinea-Bissau for 2021–22 have been submitted. They were presented within the deadlines and we also caught up where there had been delays. Furthermore, we recently held a tripartite workshop in which we addressed the subject of international labour standards.

With regard to the minimum wage, in 2021 we set up a multidisciplinary commission composed of trade union representatives with the particular mandate to identify issues relating to inflation and the minimum wage. This commission has been unable to meet, but we have taken a number of measures through the reform of the Labour Code in the context of which we have established rules for fixing the minimum wage. This is a priority for the Government of Guinea-Bissau. It is about fixing a minimum wage for the private sector, a minimum wage which has not been updated since 1988 and which was fixed in the old currency. We are talking about a wage of about one euro at that time. And now Guinea-Bissau is asking the ILO to provide the necessary technical assistance to determine a minimum wage in conformity with the Convention. This is one of our Government’s priorities. It is true that we have technical and financial limitations because, in order to fix a minimum wage, a study has to be conducted. Moreover, a multidisciplinary working group needs to be set up again, composed of representatives of the Government, the employers, the workers and civil society, in which all issues relating to the minimum wage can be discussed. Guinea-Bissau has established a council on social cooperation in which, precisely, this kind of subject can be discussed. The Standing Council on Social Cooperation is chaired by the Prime Minister. Other ministers who have social portfolios also form part of the Council, as do representatives of the employers and workers. Civil society is also represented. Indeed, it might be the appropriate forum for discussing the minimum wage since the fact that we have not yet fixed any minimum wage creates precarious conditions and divergences, meaning that the employer has some room to manoeuvre in evaluating the performance and value of employees’ work. We are aware of these problems. We are also aware that we cannot get there on our own. The Government of Guinea-Bissau therefore requests ILO support once again. The ILO should identify Guinea-Bissau as a priority country, or a country of prime need, if you like, so that we can fix a minimum wage, as we have done in the context of other projects supported by the ILO. In this regard, the Decent Work Country Programme (DWCP) is being undermined because we lack resources. We lack possibilities to preserve the dignity of the workers, even though that is something that means a lot to us.

In Guinea-Bissau, we fully endorse the values of the ILO. We have a work agenda which comprises a number of activities on which we wish to make progress, for the protection of workers, in particular wage protection in both the public and private sectors. Regarding the public sector, we have fixed a minimum wage of 50,000 CFA francs. So a minimum wage does exist in the public service since there are indicators which enable us to determine it.

But we still need support from the ILO, especially with regard to training and the acquisition of skills for the trade unions and the representatives of the employers. In fact, we need a reliable analysis of the value of the work done by the workers of Guinea-Bissau. We also need to draw up indicators, and in this way we will also be able to fix a minimum wage for the private sector.

With regard to supporting the acquisition and development of skills, I repeat that we need help. We have conducted a study, or rather we need to conduct a study, to have a clear understanding of the economic environment of our country and a better understanding of how to fix wages so as to guarantee decent work and decent wages for our workers.

Employer members – The Employer members thank the Government of Guinea-Bissau for the information provided. This case involves the application in law and practice of the Minimum Wage-Fixing Machinery Convention, 1928 (No. 26), in Guinea-Bissau. The Convention is a technical Convention, adopted in 1928 with an interim status. The Convention remains one of the most widely ratified ILO Conventions, with 105 ratifications. Guinea-Bissau has ratified 32 Conventions, including seven out of the ten ILO fundamental Conventions. In particular, this Convention was ratified by Guinea-Bissau after the State gained its independence. Ratification dates to February 1977. On the contrary, Guinea-Bissau has not ratified the Minimum Wage Fixing Convention, 1970 (No. 131), which has a more extensive scope of application.

This is the first time the case is discussed by the Committee. However, we note that the Committee of Experts has delivered observations on Guinea-Bissau’s implementation of the Convention in 2019, repeated in 2020, 2021 and 2022.

The main obligation under the Convention is to establish and maintain machinery for fixing minimum wages for workers employed in certain trades or parts of trades in which no arrangements exist for the effective regulation of wages and wages are exceptionally low. According to Article 2, Members which have ratified this Convention shall be free to decide in which trades or parts of trades the minimum wage fixing machinery referred to in Article 1 shall be applied. According to Article 3(2)(1), representatives of the employers and workers concerned, including representatives of their respective organizations, if any, shall be consulted before the minimum wage fixing machinery is applied in a sector or part of a sector. Under Article 3(2)(2), the employers and workers concerned shall be associated in the operation of the minimum wage fixing machinery. Under Article 3(2)(3), minimum rates of wages which have been fixed shall be binding on the employers and workers concerned.

We note that the Committee of Experts’ basis for its observation on Guinea-Bissau and the Convention is that, despite repeated observations, Guinea-Bissau has not provided any information on the operation of the minimum wage fixing machinery. Based on the information presented to the Committee of Experts, the minimum wage in the private sector is fixed by Decree No. 17/88 of 4 April 1988. The legal basis for the 1988 Decree is the General Labour Act of Guinea-Bissau, Act. No. 2 of 1986. The Labour Code of 1986, sections 110 and 114, provide a legal basis for fixing a minimum wage by decree.

From the information provided by the Government, the Employer members take note that the 2011 report indicated that a study on setting national minimum wages was being finalized. The Employer members also take note of the information provided by the Government regarding the new Labour Code adopted by the Peoples’ National Assembly in July 2021. Under the new Labour Code, sections 153 and 154, the minimum wage shall be payable to all workers, including rural workers, without distinction based on sex or any other grounds, in an amount fixed annually by the Government, after consultation with the social partners.

The Employer members note that the Government of Guinea-Bissau – despite the observations from the Committee of Experts over the years – has not provided any information as to when machinery for fixing minimum wages in accordance with Articles 2 and 3 of the Convention will be in place. Publicly available sources indicate that the country has a fixed minimum wage for employees operating in the civil service. However, the most recent Decree fixing minimum wages for the private sector is now more than 30 years old and seems clearly outdated.

The Employer members take note of the new Labour Code adopted by Parliament in 2021 and promulgated in July 2022. Following the Government’s request for ILO technical assistance to raise awareness of the content of the new Labour Code, a one-week tripartite workshop was organized in November 2022 for this purpose. ILO technical assistance has also been provided in 2023, and a joint mission by the ILO and the Economic Community of West African States is set to take place in the second half of 2023. The Employer members are confident that these various means of assistance will contribute positively to addressing the issues in this case.

The Employer members are well aware of the instability in Guinea-Bissau in recent years but would also stress the impact caused by food prices being driven up. The Employer members take note of the proposal of 2021 on a multidisciplinary commission, set up after consultation with the workers’ and employers’ representative organizations. The Employer members refer to the Committee of Expert’s invitation to the Government to provide information, in particular on the commission’s composition and functioning.

To conclude, the Employer members invite the Government to consider the following. Firstly, the Employer members ask the Government to continue working with the most representative employers’ and workers’ organizations, as well as the ILO through its technical assistance, to ensure that the minimum wage fixing machinery is in accordance with Articles 2 and 3 of the Convention. Secondly, the Employer members ask the Government to provide information, in line with Article 5 of the Convention, on the trades or parts of trades in which the minimum wage fixing machinery has been applied, indicating the methods as well as the results of the application of the machinery, and on the approximate numbers of workers covered

Worker members – This is the first time that the Committee examines the application of Convention No. 26, by the Government of Guinea-Bissau. We note that Guinea-Bissau ratified the Convention in 1977 and that the Committee of Experts has issued four consecutive observations since 2019 showing increasing concern at the stagnation of minimum wages in the country and the failure of the Government to remedy the situation. The main concerns raised by the Committee of Experts pertain to the long overdue readjustment of the minimum wage in the private sector and the failure of the Government to properly operate minimum wage fixing machinery in consultation with the representative organizations of employers and workers.

In Guinea-Bissau, the latest decree fixing the minimum wage was adopted in 1988. For the past 35 years, the minimum wage for the private sector has stagnated at 29,000 CFA francs, which is US$48 per month. For reference, the cost of a basic food basket is around 14,000 CFA francs, and that is US$23. In the public sector, the minimum wage was last raised in 2018 to 50,000 CFA francs (US$82). However, significant implementation gaps persist as the Government and public authorities have accrued wage arrears of up to nine months and still have not made good on their many commitments to clear the debt and pay outstanding wages. The situation is simply untenable for workers as they face rising costs of living and inflation. Nearly 70 per cent of the population of the country live below the poverty line and on 28 January 2021 the Government further aggravated the cost-of-living situation by increasing taxes on goods and services by more than 100 per cent. The price of most basic commodities sharply rose to unaffordable levels.

Despite the repeated calls of the Committee of Experts since 1989 to date, the Government of Guinea-Bissau has not conducted the promised study on the readjustment of the national minimum wage in the private sector. In its 2021 report, the Government referred to a Prime Minister’s Ordinance of 9 June 2021, which established a multidisciplinary commission including trade union representatives to conduct an analysis of the current level of inflation and to propose a national minimum wage. In 2022, the Government failed to report any new information in this regard. We are bound to note that two years after the setting up of this commission, the Government has yet to take any steps to seek its recommendations and to finally raise the minimum wages in the country. We express our deep concern at the failure of the Government to comply with the requirements of the Convention and to set up effective machinery for minimum wage fixing, and at the lack of political willingness to ensure adequate living wages for workers.

We recall that pursuant to Article 1 of the Convention, Member States undertake to create or maintain machinery whereby minimum rates of wages can be fixed. The Government’s persistent failure to readjust wages has serious implications for the private sector workers in Guinea-Bissau. Even during the COVID–19 pandemic, workers of Guinea-Bissau received no financial assistance from the Government to mitigate the economic hardships caused by the pandemic. At the time, the National Union of Workers of Guinea-Bissau (UNTG–CS) tried to engage the Government but faced refusal from the Government to negotiate. In response, the union called for strikes demanding a living wage. The Government responded by resorting to violence, beatings of demonstrators and issuing of death threats. We deplore that the Government of Guinea-Bissau has shown only disregard for social dialogue and tripartite consultations and lately has engaged in outright interference with workers’ genuine representation, contrary to the spirit and purpose of Article 2 of the Convention.

Freedom of association and protection for genuine workers’ and employers’ organizations are fundamental to meet obligations under the Convention. Regrettably, we report to this Committee that, on 4 May 2023, the offices of the UNTG–CS were attacked and forcibly taken over by individuals under the control and direction of the Government with the goal of replacing the democratically elected union leadership, including Júlio António Mendonça, with pro-government leadership. The perpetrators of this takeover hoped to then clone the union, in order to engage in cosmetic negotiations with the Government in a self-serving manner. This undermines genuine representation of workers’ interests and removes all meaning from the obligation to consult with workers’ and employers’ organizations under the Convention. There can be no genuine consultation with representatives who have not been freely chosen by workers and employers respectively.

We are deeply concerned by the recent hostility and attacks of the Government against the independent umbrella trade union organization of the country, especially given the Government’s stated intention to ratify the Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87), shortly. We recall that, under Article 3(2)(1) of Convention No. 26, the employers and workers concerned shall be associated in the operation of the minimum wage fixing machinery. Since 1988, the minimum wage has not been reviewed and when workers pressed by the increasing cost of living and inflation exercised their right to strike to demand a change, the Government decided to basically take over the leadership of the union. In view of the time elapsed since the last review of the minimum wage, the discrepancy between the rising cost of living and the low levels of the minimum wage and the attacks on the genuine trade union leadership of the most representative umbrella trade union organization, we call on the Government of Guinea-Bissau to take the necessary measures to readjust the minimum wage for the private and public sectors without any further delay, in consultation with the genuine leadership of the UNTG–CS. To that end, the Government must immediately cease its attacks against the UNTG–CS and ensure that the union’s offices are returned to the leadership and that they can operate in their offices in safety

Worker member, Botswana – Please note that the Commonwealth Trade Union Group (CTUG) and the Southern Africa Trade Union Coordination Council (SATUCC) align themselves with this statement. The Committee of Experts has recalled that the last time the Government of Guinea-Bissau fixed an updated minimum wage for the private sector was in 1988, some 35 years ago. This has continued in violation of applicable laws and despite the proposals put forth by the President of the Republic in 2021 during his Ordinance. The Committee of Experts has repeatedly requested information from the Government to no avail.

We reiterate our recognition of the fact that “[m]inimum wage fixing should constitute one element in a policy designed to overcome poverty and to ensure the satisfaction of the needs of all workers and their families.” This means that the setting of a minimum wage by a country, though not effective as a stand-alone, is an important component necessary for ensuring that workers receive equal wages for work of equal value which accords them dignity and safeguards their welfare and well-being. Evidently, failure to design and implement robust minimum wages machinery puts workers at risk, undermines effective implementation and encourages informality.

It is important that we keep recognizing the adverse effects of insufficient implementation of the agreed minimum wages on workers, their families and their jobs since there is an established link between wages and mental health. I repeat, there is an established link between wages and mental health.

During the past three years, the triple crisis adversely triggered and exacerbated inflation with dire consequences for wage earners. It is periods such as this that one expects responsible and responsive governments to consider economic and social protection measures and adoption of suitable minimum wages, among other measures.

To close, achievement of a just and equitable distribution of the fruits of progress to all is possible in Guinea-Bissau. However, this is dependent on regular, consistent review and fixing of minimum wages to ensure achievement of equal pay for work of equal value, and it also depends on protection of labour rights. This will also reduce inequality within and among African countries as espoused by the Sustainable Development Goals (SDGs). We call on the Government of Guinea-Bissau to effectively deploy the tripartite structures in line with the Committee of Experts’ request, and fix an updated minimum wage for the private sector.

Worker member, Uruguay – Firstly, we note with deep regret that the authorities of Guinea-Bissau have not taken account of what the Committee of Experts has requested. It is an extremely serious matter that the minimum wage in the private sector has not been adjusted since 1988 and that also, as has been said here, there are other problems, particularly in the public sector and in education, which go beyond the discussion that we are having in the Conference Committee today. Just as serious is the fact that there are ILO Member States which, having ratified the Convention which obliges them to establish or maintain machinery for fixing wages for men and women workers, they are subsequently unwilling to comply with the standards of this Organization. The Declaration of Philadelphia incorporated the guarantee of an adequate living wage and considered that this is one of the relevant elements when ensuring a just share of the fruits of progress to all workers. Thus, the purpose of a minimum living wage, by definition, is to provide wage protection to guarantee income enabling workers to live with dignity and to meet their living needs through the sale of their labour.

It is essential that the Government adopts the necessary measures that make it possible to establish updated minimum wages for the private sector as part of its policies to combat inequality and poverty, as well as gender gaps, through the promotion of collective bargaining and full compliance with the Convention. We welcome the proposals put forward by the Government in this Committee and also what has been shared by the Employers. Indeed, we would like the machinery, the forms and the construction of agreements and consensus to be found which will make it possible not only to comply with the provisions of the Convention but also to contribute towards changing a situation which is having a harsh impact on men and women workers in Guinea-Bissau.

Interpretation from Portuguese: Worker member, Portugal – The Workers’ Commissions of Spain (CCOO) align themselves with this statement. The Committee of Experts confirms that it has been many years since there has been any improvement in the minimum wage. The representative organizations presented proposals for an increase and in 2019 a Memorandum of Understanding on increasing the minimum wage in a commission was abolished by the Government.

We know that the situation of the workers in Guinea-Bissau is getting worse every day, with very low wages and no fixing of minimum wages – a vital element for a fair distribution of wealth and for eradicating poverty.

The increase in the cost of basic goods and the cost of living in general means that the workers’ proposals are being ignored and there is a lack of dialogue. The UNTG is promoting protests, demonstrations and strikes with the purpose of having their claims for an increase in the minimum wage taken into consideration.

As a result, there are attacks against demonstrators, they are beaten up, union premises are invaded, and the activity of the trade union leaders is prohibited. However, we know that the trade union leaders must be able to freely choose their activities and their officers, and enjoy freedom of action and activity in defence of their interests. Even so, these rights to freedom of association are under attack. Apart from the fact that no minimum wage has been fixed, the right to strike and the right to freedom of association are being challenged. We therefore appeal for freedom of association and the right to strike to be guaranteed for the UNTG, led by Júlio Mendonça, so that they can address the problems of the Guinean workers.

Interpretation from Portuguese: Another Worker member, Portugal – In my statement on behalf of the Confederation of Trade Unions of the Portuguese-Speaking Countries (CSPLP), I would like to draw attention to the importance of data and reports. The Labour Statistics Convention, 1985 (No. 160), underlines the importance of the quality of the production of statistics in order to make informed policy decisions, emphasizing the need for countries to be able to study and implement robust statistical systems that cover a whole spectrum of information on the world of work, including employment levels, unemployment rates, wages and conditions of work, among others. These are data which enable policymakers to monitor progress, identify disparities and design action to be taken in relation to the labour market on the basis of empirical evidence.

How can claims be made to support the UN 2030 Agenda for Sustainable Development if there is no recourse to quality statistical data? How can the social partners perform their role if they do not have updated, reliable statistics?

We understand that the process of data collection, its analysis and dissemination can entail difficulties, but it is extremely important to involve the social partners in the decision-making process, while it is also important that there is respect for the autonomy of the social partners, who on no account can be influenced in their activity.

We urge the Government to draw up quality statistical information and to present reports regularly so that public policies and programmes can be designed and implemented to promote productive employment for all with equal opportunities, thereby creating the conditions for fairer, more inclusive economic development which leaves nobody behind.

Worker member, Nigeria – I represent the Trade Union Congress of Nigeria and the ITUC. I wish to state that Article 1 of the Convention is explicit that a national minimum wage be put in place where no arrangement exists for the effective regulation of wages by collective agreement or otherwise and wages are exceptionally low. The notion contained in this Article applies to the current situation in Guinea- Bissau, with a very high informal economy and private sector workers without a regulated minimum wage. We all know that a minimum wage is a wage anchor to help prevent salaries from falling below a certain level. It can also serve as a voice for union workers and seek to protect vulnerable workers.

Equally important is Article 2 of the Convention, which talks about consultation with the workers’ and employers’ organizations in the development and conclusion of the minimum wage. The Convention also prescribes that the consultation must be done under conducive arrangements. Sadly, in Guinea-Bissau the Government is openly facilitating and supervising the disruption and forceful takeover of the UNTG-CS, the country’s only national trade union centre. In May, a group of faceless people were supported by the police to take over the office premises of the UNTG-CS in a coup-like manner. To further confirm, the executive actively supported this illegal and criminal action. The President received the leaders of this faceless group in an official photo session at the President’s office.

It is therefore impossible to have a sincere and fruitful consultation under such conditions. We have it on firm and credible authority, such as that of ITUC-Africa, that the legitimate and recognized leadership of the UNTG-CS is the one led by comrade Júlio António Mendonça as Secretary-General.

ITUC-Africa, which visited Guinea-Bissau from 17 to 19 May 2023, can confirm that the duly elected and legitimate group is led by comrade Mendonça, which was also confirmed by the employers’ federation of that country, which they also visited. Therefore, this Committee must call on the Government of Guinea-Bissau to do the needful by ensuring that the legitimate and democratic leadership of the UNTG-CS led by Júlio António Mendonça is recognized, and work with the process of setting up national minimum wage fixing machinery without further delay.

Article 4(1) of this Convention also prescribes that, with regard to the minimum wage fixing machinery to be established, each Member State must take the necessary measures, by way of a system of supervision and sanctions, to ensure that the employers and workers concerned are informed of the minimum wage rates in force and that wages are not paid at less than these rates in cases where they are applicable.

We note that Guinea-Bissau currently needs supervision and sanction provisions in the national minimum-wage development process. The non-existence of these provisions partly accounts for the reasons behind the prevalence of non-compliance with the existing minimum wage, which needs to be reviewed upward immediately. Where there are no supervision and sanctions, impunity and disregard for human dignity prevails. Sanctions must be swift, smart and decisive to enhance compliance. Sanctions must not be seen as a slap on the wrist and a light-weight prescription.

Finally, Article 5 prescribes the annual reporting of the application of this Convention to the ILO. The ILO Constitution and the Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144) corroborate that reporting to the ILO must be done in full and genuine consultation with social partners, as a product of social dialogue. In a situation where a government is openly compromising and undermining this process, through interference with the administration and the officials of the organization of social partners, such a government would be most unlikely to include social partners in the reporting process.

We ask this honourable Committee to walk with Guinea-Bissau through the provisions of the necessary support to improve the viability of the national minimum wage fixing machinery.

Interpretation from Portuguese: Worker member, Brazil – In recent years we have noted the information from the Committee of Experts regarding Guinea-Bissau and the Convention. What is striking is the Committee of Experts’ indication that since Decree No. 17/88 fixed the value of the minimum wage, it has never been updated, which is an unprecedented situation.

Sections 153 and 154 of the new Labour Code provide that the minimum wage must cover all workers – including rural workers, without any distinction on the basis of sex or any other grounds – and that the Government must fix this increase after holding consultations with the social partners. This, precisely, has not been happening for most workers in Guinea-Bissau since 1988, with the exception of those in the public administration. The Committee of Experts, in its 2021 report, indicates that between 2012 and 2017 the minimum wage did increase in the public sector as a result of the Government’s measures. However, this implies that for all other workers the minimum wage remains unchanged.

In its current report, the Committee of Experts notes with regret that the Government does not provide information on adjusting the minimum wage. If we reflect for a moment that, according to the Minimum Wage Fixing Convention, 1970 (No. 131), the fixing of minimum wages, especially in developing countries, means that States must take account of the needs of workers and their families, what can we say about the living and working conditions of those who have not had that wage adjustment for 35 years? Recently, the authentic trade unions were evicted from their premises, resulting in major difficulties in negotiating wages, and this is creating worse conditions of work and obstructing the union leadership’s freedom of association and freedom to conduct its activities.

It therefore seems obvious to emphasize that we cannot speak of dignified and decent work in the country and that this case is extremely serious. Hence we urge the Government to provide information on wage conditions in relation to living conditions and to rectify this situation as a matter of urgency, and to guarantee full freedom of association in the country.

Worker member, New Zealand – I note in the Committee of Experts’ report that minimum wages in Guinea-Bissau for the private sector were last reviewed in 1988, some 35 years ago. I am really alarmed by the Government’s failure to periodically review its workers’ minimum wages.

I would like to share with you some measures taken by my Government and its social partners to improve New Zealand’s minimum wages. New Zealand introduced fair pay agreement legislation last October and this applies to all or any industry or occupational group. This law was the product of tripartite negotiations between the social partners in a working party that ultimately led to this new law. The bargaining brings together nominated representatives of employers and unions and, under certain circumstances, a determination may fix the terms of the agreement. At the conclusion of bargaining, the fair pay agreement becomes secondary legislation, and enforceable as such. The fair pay agreement is an additional set of rules that does not detract from the individual or collective agreements that apply to workers and their employers in enterprises but addresses the needs of occupations or industries by the businesses and workers engaged in those occupations or industries.

While in its early stages, this Law has generated a number of initiations to bargain by unions and three of these have been validated and approved by our Government agency for bargaining to begin.

I want to refer to one of these, which has been initiated and approved to cover security guards in an occupation-based fair pay agreement. This has the support of not only the 1,200 guards who signed up to initiate the fair pay agreement but also the primary body representing employers, the New Zealand Security Association.

The two key bargaining parties, E tū Union and the New Zealand Security Association, have agreed that pay rates, training, and health and safety are the three priorities for a new occupation-based collective agreement. This reflects the common interest of both parties to see an industry standard in security that supports quality jobs, stability of the workforce, and a better environment for business. Businesses benefit because fair pay agreements stop the race to the bottom inherent in the contracting for services. That drives down terms and conditions of employment for workers and ultimately benefits no one.

This new step of introducing fair pay agreements to improve collective bargaining and labour standards for occupations and industries was not without controversy, but it is clear as seen in the security example, that the new Law has employers and unions collaborating for the benefit of the industry as a whole. This has the potential to create a new, progressive and collaborative era of industrial relations in a country where this has not been the norm.

I would encourage the Government of Guinea-Bissau to see New Zealand as an example of a new and positive model of tripartism in employment relations where setting standards through statutory minimum wage rates, supplemented by regulated industry bargaining, such as our secondary legislation of fair pay agreements, is an option that benefits all the social partners, businesses and the economy.

Interpretation from Portuguese: Observer, International Trade Union Confederation (ITUC) – I would like to thank the African Regional Organisation of the International Trade Union Confederation (ITUC–Africa), the ITUC as a whole, the ILO management and specifically the Bureau for Workers’ Activities (ACTRAV) for all they have done for the workers in Guinea-Bissau. Today is a special day for my trade union organization, the UNTG, and especially for the workers who were martyrs for the homeland of Amílcar Cabral and great combatants for its freedom.

The subject that I have the pleasure to address is the situation regarding the application of the Convention, which provides for the national minimum wage and was ratified in 1977, three years after our independence. In 1988, the authorities established the national minimum wage, via Decree No. 17/88 of 4 April 1988, at 15,000 Guinean pesos, about 230 CFA francs.

It is important to emphasize that the minimum wage has not been updated for workers in the private sector. It is also important to note that unionization in the private sector is very low, even now, especially because of the severe crackdown on the exercise of freedom of association and the practice of collective bargaining.

In 1997, our country joined the West African Economic and Monetary Union (WAEMU) and adopted the CFA franc as its currency, nine years after adopting the minimum wage of GAF15,000 Guinean pesos. This has remained unchanged, and workers in the private sector still feel abandoned in the face of rampant inflation and the cost of living.

In 2016, our organization, the UNTG-CS, began to reform its leadership and in December 2017 the “transformation of the union paradigm” took place in the leadership of our federation. We elected new leaders, we began a campaign to gain labour rights and defend the legitimate interests of the workers with various demands. Our federation managed to convince the Government of that time to adjust wages in the public service so that public sector officials would receive a minimum wage of 50,000 CFA francs, compared to the previous 29,000 CFA francs. Various governments promised to determine a new national minimum wage and hence to promote a review of Decree No. 17/88, which was already obsolete, and thereby reduce the suffering of private sector workers, but the Government never kept its promise. We are concerned and sad at the suffering and difficulties faced by the workers of Guinea-Bissau. As legitimate representatives empowered by the votes given to us by the workers, we feel obliged to take action with them in the strategic sphere and increase the pressure on successive Governments so that the obligation to determine the national minimum wage is fulfilled and the undertaking made by the State as a result of ratifying the Convention in 1977 is taken into account.

When a Government passes legislation to fix a monthly allowance for the President of the Republic of 50,000,000 CFA francs and a daily entitlement to 650,000 CFA francs for foreign travel, what really strikes us is that the Government does not think of the suffering of the workers or of the people. Today, a 50-kilo sack of rice, a basic foodstuff, costs 50 per cent of the public service minimum wage. Worst of all, the Government approves all kinds of benefits, subsidies and advantages for its representatives, but it is more difficult for the workers and for the people.

During the COVID-19 pandemic, everybody faced a financial crisis, especially the workers and the enterprises. This resulted in the loss of thousands of jobs, and the Government, instead of giving support and subsidies to the enterprises affected, imposed additional taxes, introduced a democratic tax, and increased prices for subsistence products for the population. Today there is an urgent need to restructure the national minimum wage in view of the serious socio-economic situation faced by the communities and the workers. Clearly it is necessary to establish minimum wage fixing machinery and we ask this Committee to put pressure on the Government to ensure the effective application of the Convention.

Interpretation from Portuguese: Government representative – I would like to reiterate that although Guinea-Bissau has ratified Convention No. 26, we have not yet been able to update the minimum wage because of political and institutional issues facing the country.

With regard to social dialogue, Guinea-Bissau has made a lot of progress. The Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87), has just been ratified. The ratification process for this Convention had been going on for 30 years. Finally we have been able to move forward and deposit the instrument of ratification with the ILO. This shows the Government’s commitment, and the fact that we want to breathe fresh life into our relations with the workers and the enterprises, and also enhance dignity for the workers.

Guinea-Bissau is a responsible State. From the time that we ratify a Convention, we feel the responsibility for implementing the Convention in question. We are aware of this and we are taking measures through social dialogue.

With regard to fixing the national minimum wage, this is a subject of frequent active discussion within the Government, and we also discuss it with the social partners through consultations. As Director-General of Labour, I myself have convened meetings with representatives of the unions, in particular the UNTG. We met each other and we indicated that the Government wished to move forward with regard to (the)application of the Convention.

We have begun to define a path towards fixing a minimum wage. Meetings have also taken place with representatives of the employers. All these meetings have made it possible to define activities which will enable us to take measures with ILO technical assistance. Perhaps we will also be able to count on other ILO Member States for financial support, because we need financial resources to carry out this reform.

Guinea-Bissau is a developing country. It is a country which has to face many limitations and restrictions which hold us back in our work. We have listened carefully to the social partners, we have listened carefully to the unions. We take them seriously and we know that, if we do not listen to our social partners, we will be unable to take any decisions since it is they who convey the workers’ situation. We will not be able to meet the needs of the workers if we do not listen to them.

With regard to determining the minimum wage, meetings have taken place. We showed that we wished to continue moving forward. It is true that the minimum wage as currently defined dates back to 1988. But a political and social analysis of the country is needed to understand clearly why this whole process has stagnated. Even so, in the last three years we have taken measures and shown the Government’s commitment. One example of that is the reform of the Labour Code. We had a general labour law which went back 30 years and which need(s) to be updated to better reflect what is happening in the world of work. The Government took the initiative and worked for the adoption of the new Labour Code. This is clear evidence of our commitment and investment. We care about our workers, since the Government itself is composed of workers.

We have plans to ratify other Conventions. We wish to establish dignified and decent work, in particular through the ratification of Conventions and through fixing the minimum wage, which clearly constitutes a guarantee for the workers. We reiterate once again that we would like Guinea-Bissau to have priority status for obtaining technical assistance from the ILO, so that we can move forward and achieve conformity with the Convention.

I would like to say to you that Guinea-Bissau is a small country. Our population is not large and most workers are in the public sector. The State is the biggest employer in Guinea-Bissau and that is why we have focused on workers in that sector. We need to understand better how the enterprises operate before fixing a minimum wage in the private sector. There is a need to understand our situation clearly. Fixing the minimum wage in Guinea-Bissau presupposes a rigorous study. It is not enough for the Government to fix the amount of the minimum wage for the private sector. There is a need for general consultations which are open and comprehensive, as was the case when we discussed the Labour Code. It was a very inclusive discussion. The ILO provided support at the time we were drawing up our Labour Code. And at that time we gave thought to the minimum wage, since a section of the Labour Code stipulates the manner in which the minimum wage should be fixed. This work must be done now for determining the minimum wage in the private sector. The Government of Guinea-Bissau is fully committed to this, and the workers and employers of Guinea-Bissau must help us too. But we need technical and financial assistance.

We are fully open to any kinds of assistance that you might be able to offer us to enable us to come into line with the Convention because the fact that there is no minimum wage in the private sector also creates obstacles in other areas, such as social security. It creates problems in that workers live increasingly in precarious conditions. The employers are now relatively free to fix their wages, which also increases the risk of precarious situations. So a study would be needed to fix the minimum wage in the private sector and perhaps the minimum wage in the public service should be used as a reference point.

As regards tripartite social dialogue, this is in our interests, and we have shown this clearly since we have established the Standing Council on Social Cooperation. This demonstrates clearly that we are fully invested in social dialogue. Meetings are convened according to needs that emerge in our country. There are many challenges, but we have a lot of willpower, and the determination of the Government of Guinea-Bissau is unwavering.

We thank the ILO for its solidarity with our country. The ILO has already seen that we are worthy of confidence since we have adopted measures. Our approach is one of total commitment, and our interests are at stake. We have made progress with our legislation, we have engaged more fully with the ILO by fulfilling our reporting obligations, by implementing activities for combating child labour, by developing the DWCP. This commitment is also reflected in our wish to ratify the fundamental Conventions on occupational safety and health. These elements all show that the welfare of the workers in Guinea-Bissau is very important to us because if we failed to attach value to work, we would be going nowhere.

Chairperson – Thank you very much to you and your delegation for participating in the work of this Committee, and for sharing detailed information and your perspective.

Worker members – We thank the Government of Guinea-Bissau for the information it provided. We reiterate our concern regarding the persistent failure of the Government to comply with the requirements of the Convention to set up effective machinery for minimum wage fixing and to readjust the minimum wage levels so as to ensure an adequate living wage for its population. In a(the) context of rising costs of living and inflation, minimum wage levels have remained shockingly low in Guinea-Bissau and do not allow workers to provide for their needs and the needs of their families.

We recall the importance of regularly readjusting minimum wage rates so as to guarantee workers a decent standard of living. If rates are not adjusted, the minimum wage fixing system will be reduced to a mere formality and will no longer be effective at all as a means of combating poverty or as a means of social protection.

Concrete Government action is long overdue. The Government of Guinea-Bissau must demonstrate its commitment to the principles and processes set out in the Convention. To that end, the Government must set up and maintain a proper mechanism to fix, regularly review and readjust minimum wages. In accordance with Article 3 of the Convention, workers’ and employers’ representatives must be consulted before the machinery is applied and shall be associated with the operation of the machinery. Genuine and freely chosen representation of workers must be ensured in this process.

We regret to note that workers’ interests are not genuinely represented in Guinea-Bissau and at this Conference. We inform this Committee that the Worker members have submitted a claim to the Credentials Committee against the Government of Guinea-Bissau for interference in the nomination of genuine Workers’ delegates to the Conference.

We further took note of the Government’s intention to convene a multidisciplinary commission composed of the Prime Minister and other ministers, and representatives of employers, workers and civil society. We must insist on the tripartite character of the minimum wage fixing machinery, as envisaged in the Convention. Civil society organizations have no place in the process, and we urge the Government to refrain from such interference in tripartite social dialogue.

We urge the Government to immediately cease its attacks against the UNTG-CS, and to ensure its full participation and consultation in the operation of the minimum wage fixing mechanism. We also urge the Government of Guinea-Bissau to seek ILO technical assistance to address these major failings in their application of the Convention. Given the failure of the Government to address the comments of the Committee of Experts since 2019, we urge the Government to accept a direct contacts mission.

Employer members – The Employer members thank the various speakers who took the floor and most notably the oral information provided by the Government of Guinea-Bissau.

Once again, the Employer members emphasize the importance of progress and momentum in Guinea-Bissau’s efforts to obtain a machinery to fix minimum wages in the private sector under sections 153 and 154 of the new Labour Code, in line with the Convention. The Employers reiterate the Committee of Experts’ call for a timely response on the observations put forward since 2019. The Employer members note that the new Labour Code has been adopted by Parliament and that promulgation has taken place. The Employer members invite the Government to continue working with its social partners when harmonizing national laws with the Convention.

After considering the discussion, we request the Government to, first, take the necessary measures to bring the machinery for fixing minimum wages in line with Articles 2 and 3 of the Convention; and secondly, communicate in line with Article 5 of the Convention on the trades or parts of trades in which the minimum wage- fixing machinery has been applied, indicating the methods as well as the results of the application of the machinery, and the approximate number of workers covered.

Conclusions of the Committee

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

Despite some steps taken to adjust the national minimum wage, the Committee regretted that it has still not been fixed and that the minimum wage has not been revised since 1988.

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

- review the minimum wage for the public and private sectors without delay in accordance with the Convention; and

- establish the minimum wage fixing machinery in consultation with the social partners with a view to fixing and updating the minimum wage on a regular basis in accordance with the Convention.

- The Committee also requests the Government to:

- strengthen social dialogue, including the machinery for consultations with workers’ and employers’ organizations, by ensuring their independence and autonomy in law and practice; and

- provide to the Committee of Experts a copy of the promulgated and published version of the new Labour Code.

The Committee requests the Government to avail itself of ILO technical assistance in close cooperation with freely established and independent workers’ and employers’ organizations to ensure full compliance with the Convention and to transmit a report on progress made to the Committee of Experts by 1 September 2023.

Interpretation from Portuguese: Government representative – We listened attentively in this ILO forum to the various observations made yesterday on the application of the Minimum Wage-Fixing Machinery Convention, 1928 (No. 26), by Guinea-Bissau in the private sector.

It is true that Decree No. 17/88 of 4 April 1988 has been in force for 35 years, not 35 months, 35 days or 35 seconds, and that is justification for updating it. This is why, as the head of the Government delegation of Guinea-Bissau has explained, the Government of my country is working on updating it with the involvement of the social partners so that nobody is excluded. Despite the obsolete nature of this Decree, no employer applies the wage level established in the(this) legislation. Even though the legislative text has not been updated, the labour inspectorate, in its enterprise inspections, has assumed an important role in informing and guiding the employers so that they apply minimum wages in enterprises which are well placed in terms of payment of wages.

We have duly taken account of the recommendations of the Committee of Experts regarding the updating of wages and, as indicated yesterday by the head of the delegation, we request ILO technical assistance in the area of fixing the minimum wage.