Observation (CEACR) - adopted 2023, published 112nd ILC session (2024)

Venezuela (Bolivarian Republic of)

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) (Ratification: 1944)
Protection of Wages Convention, 1949 (No. 95) (Ratification: 1982)

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In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on wages, the Committee considers it appropriate to examine Conventions Nos 26 (minimum wage) and 95 (protection of wages) together.

The Committee notes the observations concerning Convention No. 26 made by the Federation of Chambers and Associations of Commerce and Production of Venezuela (FEDECAMARAS), received on 1 September 2023. The Committee also notes the observations made by the Confederation of Autonomous Trade Unions (CODESA), the Confederation of Workers of Venezuela (CTV), the Federation of University Teachers’ Associations of Venezuela (FAPUV), the Independent Trade Union Alliance Confederation of Workers (CTASI), the National Union of Workers of Venezuela (UNETE), the United Federation of Workers of Venezuela (CUTV) and the General Confederation of Labour (CGT) regarding Conventions Nos 26 and 95, received on 30 August 2023.

Follow-up to the recommendations of the Commission of Inquiry (complaint made under article 26 of the Constitution of the ILO)

A. Minimum wage

Article 3 of Convention No. 26. Participation of the social partners in minimum wage fixing. With regard to its previous comment, the Committee notes the discussions at the 347th and 349th Sessions (March and November 2023) of the Governing Body on the follow-up report on further developments concerning the Social Dialogue Forum and the implementation by the Government of the Bolivarian Republic of Venezuela of the agreed plan of action to give effect to the recommendations of the Commission of Inquiry, as well as the corresponding decisions adopted. In particular, the Committee notes that: (i) the third session of the social dialogue forum was held between 30 January and 1 February 2023 with ILO technical assistance, chaired by the Minister of Popular Power for the Social Process of Labour, with the participation of the following employers’ and workers’ organizations: FEDECAMARAS, the Venezuelan Federation of Craft, Micro, Small and Medium-Sized Business Associations (FEDEINDUSTRIA); the Bolivarian Socialist Confederation of Men and Women Workers in Urban and Rural Areas and Fishing of Venezuela (CBST-CCP), the CTASI, the CTV, and the CGT; during this meeting, the follow-up to and updating of the agreed plan of action to give effect to the recommendations of the Commission of Inquiry in respect of Conventions Nos 26, 87 and 144 was adopted; (ii) between 16 February and 24 August 2023, 13 tripartite meetings were held, with the support of the ILO, to address the question of determining methods for fixing minimum wages; (iii) from 3 to 7 October an ILO mission to the Bolivarian Republic of Venezuela took place, with a view to participating in the fourth session of the forum, and to promote dialogue but, due to a series of communications sent by various employers’ and workers’ organizations to the Government, the latter considered that conditions were not conducive to the holding of the session; both the ILO delegation and the Minister held, each in turn, bilateral meetings with the employers’ and workers’ organizations; (iv) on 6 October, a private tripartite meeting was held at the headquarters of the Ministry of the People’s Power for the Social Process of Labour and attended by the employers’ and workers’ organizations cited above. The meeting agreed that the fourth session of the forum would be held at the beginning of February 2024.

The Committee notes that at the 349th Session of the Governing Body, the Government indicated that, with the firm intention of formulating a consensual proposal on the method of fixing the minimum wage, a meeting was held on 19 October 2023 with the participation of FEDCAMARAS, FEDEINDUSTRIA, the CBST-CCP, the CTASI, the CTV and the CGT, and explanations of the proposal were given. The Government states that the main issue elucidated at the meeting was the selection of the spokespersons for the employers and workers, whose organizations, based on their autonomy, would develop the necessary agreements, and share information to complement the method. The Government also indicates that it provided these organizations with the final text and concept note of the method and that, to date, no comments thereon have been received, which will allow further progress in consolidating this important method.

The Committee notes that the Governing Body is to return to the consideration of progress made by the Government to give effect to the recommendations of the Commission of Inquiry at its 350th Session (March 2024).

Furthermore, pursuant to its previous comments on this subject, the Committee notes that the Government, in its report: (i) indicates that it has been complying with each of the agreed activities in the action plan, as updated in February 2023, with the participation of the different organizations of employers and workers; (ii) indicates that a tripartite technical body was constituted to draw up the proposed method of consultation to fix the minimum wage. That body finished its work at its thirteenth meeting, thus completing the task of formulating the proposal, which would be taken up at the highest level; and (iii) reiterates its commitment to continue to progress with the agreements adopted in the social dialogue forum, and to continue working with the timetable of activities, which so far have allowed significant progress to be made between the parties, given the serious impact that the unilateral coercive measures had on workers’ wages.

The Committee observes that the updated plan of action adopted by the social dialogue forum in February 2023 includes: (i) the establishment of a technical body on the wage-fixing machinery and on effective consultation procedures; and (ii) the determination by the technical body of the dynamic method for fixing the minimum wage (taking account of the relevant economic and social and labour indicators and variables and the external factors already referred to in the text of the statement).

The Committee notes that FEDECAMARAS, in its observations, indicates: (i) at two tripartite meetings with remote ILO technical assistance, held on 15 and 24 August 2023, the document sent by the Ministry entitled “method for fixing the national minimum wage”, including the Ministry’s observations on the proposed methodology for consideration in the final document, was discussed and revised; and (ii) the final document, containing the definitive ministerial proposal which was to have been submitted on 25 and 28 August 2023 for final review and adoption, has not been received. FEDECAMARAS indicates that although a proposal formulated by the Ministry already exists, but is yet to be approved, the dialogue process needs to be more effective and structured, and requires permanent follow-up, since the technical body has now been functioning for seven months, yet the official economic and social and labour indicators including external factors, have still not been presented, although they were included in the social dialogue forum’s plan of action and are fundamental to speeding up the social dialogue process for fixing the minimum wage.

The Committee also notes, from the joint observations submitted by the CODESA, the CTV, the FAPUV, the CTASI, the UNETE, the CUTV and the CGT, that those organizations agree that outside the formal sessions of the forum, the activities to which the Government refers, which were intended to provide a greater understanding of the consultation method for fixing a minimum wage, were carried out and did reach agreement. In this regard, those organizations regret that: (i) in 2023, the hoped-for increase in the minimum wage did not materialize, a fact made more painful by the daily fall in its value resulting from the continuous devaluation of the bolívar and that (ii) on 1 May 2023 there was an increase in the “socialist cestaticket” benefit, and the approval of a “bonus against the economic war”, with no consultation of the social partners, as these were non-wage payments; and (iii) the Government has not delivered the economic, social and labour indicators called for by all the confederations and which are essential to progress towards the objectives identified by the technical body required for determining the method of fixing the minimum wage.

While duly noting the statements from the Government, as well as the activities and tripartite meetings held throughout the year, with ILO assistance, which addressed the question of establishing the method for fixing the national minimum wage, the Committee notes with concern that it has still not been possible to establish this method. In this context, the Committee regrets that 2023 did not see a wage increase, preceded by a consultation process. Finally, the Committee regrets the rescheduling of the fourth session of the social dialogue forum, while dully noting the continued agreement of the Government and the social partners to participate in social dialogue and that the fourth session of the forum will take place in early 2024.

The Committee firmly hopes that, in the framework of the opportunities opened up by the process set in motion with the establishment and follow-up of the social dialogue forum, that all the measures envisaged in the plan of action updated in February 2023, as well as the timetable of activities presented by the Government will be implemented and that the fourth session of the social dialogue forum will take place as planned. It also hopes that those measures will yield tangible progress in the development and application of methods for fixing the minimum wage, as required by the Convention and as follow-up to the recommendations of the Commission of Inquiry. In particular, the Committee requests the Government, at the next increase of the minimum wage in the country, to take the necessary measures to ensure that the increase is preceded by a thorough consultation process, conducted sufficiently in advance, within a framework of structured, informed and effective discussions, in which due account is taken of the proposals made on this matter by the employers’ and workers’ organizations. The Committee requests the Government to report on all developments in this regard.

B. Protection of wages

Article 4 of the Convention No. 95. Payment in kind. “Socialist cestaticket”. With regard to its previous comments, the Committee notes the Government’s indication that: (i) the value of the “Socialist Cestaticket” was increased as of 1 May 2023, and will be adjusted each month, on the basis of the exchange rate published by the Banco Central de Venezuela; (ii) roundtables have been set up for collective bargaining with the active participation of employers’ and workers’ organizations, and these have reached agreements regarding these benefits and further benefits, such as canteens, the provision of food for the basic food basket and other allowances.

The Committee also notes that the CODESA, the CTV, the FAPUV, the CTASI, the UNETE, the CUTV, and the CGT indicate in their joint observations that: (i) payment of wages with bonuses of various sorts, or provision of food, is common in the public and private sector, which makes it hard for workers to determine the exact amount of their real wage, and also to keep the wage constant; (ii) the Government refuses to refer to wages, but uses the term “comprehensive minimum income”, which includes the minimum wage and the socialist cestaticket; (iii) many workers do not receive the cestaticket in cash, as do the public administration workers, while some enterprises have adopted the measure of providing one meal a day to comply with the food allowance; and (iv) the organizations are unaware of the bargaining to which the Government refers, indicating that, in the public sector, the State suspended collective bargaining on the promulgation of Memorandum No. 2792 of 11 October 2018. In this regard, the Committee once again regrets that on the basis of the information presented by the Government, and the observations of the abovementioned workers’ organizations, it cannot be concluded that progress has been made in resolving this issue. While referring back to the analysis it has made in previous years on this matter (see in particular the observation adopted in 2017), the Committee once again requests the Government to take the necessary measures without delay, through dialogue with the representative organizations of the employers and workers, to find solutions that allow the full application of Article 4 of the Convention.

Articles 5 and 14. Electronic payment of wages. Information on constituent elements of wages. The Committee notes that, in response to its previous comment, the Government indicates that: (i) unilateral coercive measures affected the flow of bolivars, obliging the Government to develop technological platforms to ensure that workers were able to access their wages, but that this situation is now resolved; (ii) many public and private enterprises have digitalized their wage slips, enabling workers to access this information by any electronic means at any time; and (iii) in cases where it is difficult for workers to have access to their wage slips, employers were under an obligation to provide such information in tangible form, under penalty of sanctions, as provided by section 106 of the Basic Act concerning labour and male and female workers. The Committee also notes that the CODESA, the CTV, the FAPUV, the CTASI, the UNETE, the CUTV and the CGT indicate that: (i) the electronic payment of wages has made difficulties for workers receiving their wages in localities without banking facilities or which are not covered by internet, and these difficulties are compounded by frequent interruptions in digital banking services; (ii) it has become complicated for workers to obtain detailed and precise information on their wages and their composite elements; (iii) payroll management through the “istema patria”, a platform used by the Government to pay its employees, but which was created and used for purposes other than wage payment, presents difficulties in respect of the calculation and proof of payment of wages, and makes it impossible to claim for discrepancies or omissions at the moment of payment; the Government should explain the legal regime and scope of the istema patria and provide a copy of its regulatory texts. The Committee once more regrets that no progress has been made regarding this issue. The Committee again requests the Government, in consultation with the social partners, to take effective measures to address both the question of electronic payment of wages, and that of providing information to workers concerning the constituent elements of their wages, in conformity with the Convention, and to provide information in this respect.

Article 12. Delayed payment of wages. The Committee notes that the CODESA, the CTV, the FAPUV, the CTASI, the UNETE, the CUTV and the CGT indicate with regard to the health sector, that there have on various occasions been: (i) delays in the payment of wages, which have been explained by the human resources department, as arising from weaknesses in the “istema patria” and (ii) repeated non-payment of certain elements, such as night work, holidays and Sundays worked, among others. Recalling the importance of the payment of wages at regular intervals, the Committee requests the Government to communicate its comments in this regard.

[ T he Government is asked to reply in full to the present comments in 2024.]