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A Government representative recalled that the Convention had been ratified in 1944 and it had only been 35 years later that the minimum salary had been fixed for the first time, without any governments being invited during that period to the Committee on the Application of Standards. He indicated that the 1991 Labour Act had established a tripartite committee, with the legal mandate to adjust the minimum wage annually, consisting solely of the Confederation of Workers of Venezuela (CTV) and the Federation of Chambers and Associations of Commerce and Production of Venezuela (FEDECAMARAS). He noted that in the committee, the employers’ position had prevailed and the minimum wage had been adjusted only on four occasions. He added that the latest of those adjustments had been in 1997, in exchange for eliminating the system of calculation of social benefits and compensation for unfair dismissal. Therefore, in 1998, an increase had been decided outside the framework of the committee, since it had not taken any decisions itself. The process of drafting a new Constitution had begun in 1999 and had entailed 17,346 assemblies, bringing together over 5 million workers. In over 90 per cent of those assemblies the request had been put forward for a mandatory annual adjustment of the minimum wage and the abolition of the tripartite committee. The Constitution established the obligation to guarantee workers a minimum living wage which had to be revised and adjusted each year. Within five years, the minimum wage had been standardized at the national level, removing differences in regions and activities, and extending coverage to the informal economy. All the above appeared in the General Survey on minimum wage systems. He added that there were collective agreements that included provisions to adjust the agreed salary scale once the minimum wage had been adjusted. Over 15 years of the application of the constitutional obligation in question, 26 adjustments had been made, with an average year-on-year growth rate of the minimum wage of 26.4 per cent, which was 3.5 percentage points above inflation for that period. In addition, the unemployment rate had fallen from 15.2 to 7.2 per cent and the gross domestic product had continued to grow at a steady rate. He observed that the current system of minimum wage fixing surpassed the requirements set out in Convention No. 26, making it strange that now that an effective and efficient system was in place the Government had been called before the Committee on the Application of Standards. He firmly rejected the repeated observations which amounted to alleging that in the Bolivarian Republic of Venezuela there was an absence of social dialogue on the fixing of the minimum wage. He indicated that for the purpose of minimum wage fixing, technical and not political criteria were taken into account, such as the cost of a basic basket of goods. Additionally, he mentioned the intrinsic connection between the minimum living wage and the amount of pensions, the adjustment of which benefited over 2.5 million people.
Every 1 May the trade union with the largest worker representation, which was currently the Bolivarian Socialist Workers’ Confederation, and the workers’ federations of the principal economic sectors were consulted. That consultation was sent in written form to other trade unions, despite their scant representativity, in order to express their opinion in that regard. In respect of the employers’ organizations, consultations were held with the Venezuelan Federation of Small, Medium and Artisanal Industries (FEDEINDUSTRIA), an organization which grouped the sectors most affected by minimum wage fixing, and the Farmers’ Confederation (CONFAGAN). The same report was sent, without fail, to FEDECAMARAS so that it could express its opinion. He emphasized that the consultation on the minimum wage had always been conducted in equal conditions, of which there was proof. With reference to the comments of the Committee of Experts, he stated that there was no mention of non-compliance, but rather of a request for information on methods of consultation. In his view the Committee on the Application of Standards should not be politized. He noted that in the past it had been FEDECAMARAS which had been absent from the dialogue, as it had shown little interest in the minimum wage. He recalled that when, in the framework of the reform of the Basic Labour Act, the methods of consultation on the fixing of minimum wages were revised in the National Assembly, not only did FEDECAMARAS not participate, but it also promoted a national strike and an oil boycott to demand the stepping down of President Chávez. Only recently had the current leaders of FEDECAMARAS expressed interest and requested that consultations on the minimum wage should take place with more advance notice. He stated that there were standing working groups with many employers’ chambers in which representatives of FEDECAMARAS were included, and concluded that the above organization should decide if it would continue to engage in dialogue or would prefer to nurture such inconsistency.
The Employer members recalled that the list of cases adopted in the Committee on the Application of Standards was initially the subject of bipartite negotiations, with subsequent tripartite approval from all the ILO’s constituents. It was on this basis that they were commenting on the non-compliance of the Bolivarian Republic of Venezuela with Convention No. 26, which was the result of a lack of tripartite consultation on fixing the minimum wage. They observed that, since 2008, five observations of the Committee of Experts had dealt with application of the abovementioned Convention by the Bolivarian Republic of Venezuela. A new Labour Act, promulgated in May 2012, had abolished the tripartite committee comprising representatives of the Government, the employers and the workers, and had replaced it with “broad consultation of social organizations and institutions in socio-economic matters”. The reform had given even more discretionary powers to the Government to choose the parties consulted, without expressly providing for the inclusion of the most representative employers’ and workers’ organizations in the broad consultation. In 2014, the minimum wage had been increased twice, on 6 January and 29 April, respectively, without due or effective consultation of the most representative employers’ organization in the country, which included some 300 chambers representing the 14 main economic sectors. They referred to the call made by the Committee of Experts in its 2014 report to carry out real and effective consultation of employers’ and workers’ organizations, with their participation in equal numbers and on equal terms. They recalled that the Committee on the Application of Standards had already indicated the fundamental importance that it attached to real consultations in good faith with the social partners in minimum wage fixing, and they emphasized that “consultation” had a different connotation from mere “information”, as well as from “co-determination”.
They also recalled that the fixing of increases in the minimum wage without due consultation had been considered in the report of the high-level mission which had visited the country at the end of January 2014. The report, which had subsequently been approved by the Governing Body at its 320th Session (March 2014), recommended that dialogue with the participation of the tripartite bodies should be restored. That was fully consistent with the broad consultation required by Venezuelan law. Despite this, with respect to the increase in the minimum wage carried out in April 2014, the Government had sent a communication to FEDECAMARAS requesting that it adopt a position within 15 days. That communication had been received on 21 April 2014, at the end of the Easter week, leaving only six working days until the deadline. In spite of the very limited time, FEDECAMARAS had replied to the communication on the final day of the allotted period. That day, on 21 April 2014, before the expiry of the deadline, the Government had announced a 30 per cent increase in the minimum wage, published in the Official Gazette on that date. They understood that real and effective tripartite consultations with the most representative employers’ and workers’ organizations were essential for the application of both Convention No. 26 and the Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144). They therefore proposed that the Committee should urge the Government to give full effect to the tripartite consultations prescribed by Convention No. 26 and take steps to secure full observance of the obligation to consult employers’ and workers’ organizations on an equal footing in decision-making on minimum wages.
The Worker members considered that the involvement of all the social partners, in the form of a consultation, was a vital component of minimum wage fixing, the adjustment of minimum wages and their enforcement. The discussion on the Minimum Wage Fixing Convention, 1970 (No. 131), in the context of the General Survey, had demonstrated that the participation of the social partners was also an important issue in the context of that Convention. They therefore reminded the Government that consultation, or the offer of participation to the social partners, was not to be confused with mere information, or with negotiation. Neither did the concept of full consultation necessarily imply that an agreement would be reached. The country had not ratified Convention No. 131, but the wage-fixing machinery had been guaranteed by the Constitution since 2000. According to the explanations given by the Government, it intended, by means of the mechanism it had put in place, to resolve one of the issues brought up by the Worker members in their intervention on the General Survey when they had referred to the Declaration of Philadelphia. The minimum wage did not represent a balancing price between the supply and demand for labour; but it was the level of income that allowed a person to live in dignity in a specific country. They added that, in view of the fact that the rules for minimum wage fixing in the Bolivarian Republic of Venezuela were in line with the most important principles of ILO standards, the Worker members considered that the Government should ensure widespread consultations on wages, their rates and adjustments on equal terms with all the social partners without exception. Indeed, this specific issue, in relation to the minimum wage, had been raised during the tripartite high-level mission to the Bolivarian Republic of Venezuela, which had visited Caracas from 27 to 31 January 2014. While it had emerged following the mission that the concept of an inclusive consultation should only be understood in this respect if FEDECAMARAS was granted a right to be consulted every time the interests of its members were at stake, and they emphasized that this should also apply to trade union organizations and other existing independent employers’ organizations. The Worker members said that the Government could easily establish the conditions for broad and inclusive consultation procedures. Finally, they reminded the Government that it had undertaken to find a solution to the 30 cases of violations of workers’ rights submitted by the unions to the high-level mission.
The Employer member of the Bolivarian Republic of Venezuela recalled that the Act adopted in 2012 provided for broad consultations with social organizations and socio-economic institutions, but did not expressly include the most representative organizations of workers and employers. The Government was creating an alternative mechanism which did not comply with the Convention. The lack of social dialogue had been emphasized by the high-level tripartite mission that had visited the country in January 2014. Nevertheless, the Government had once again failed to send consultation letters at the appropriate time, and the organizations had not had the effective opportunity to give their opinions. The Government had consulted the Bolivarian Socialist Workers’ Federation, FEDEINDUSTRIA and CONFAGAN, but had not properly consulted FEDECAMARAS, because it had adopted the decision on the new minimum wage and published it in the official gazette prior to the expiry of the deadline for responding. Consultation on minimum wages was carried out in a discretionary manner. In 15 years, FEDECAMARAS had not been convened to discussions on the issue of minimum wages. The current difficult economic situation in the country meant that discussion on minimum wages was even more necessary. FEDECAMARAS had raised several questions with the Government, but had not been heeded. The high inflation rate (59 per cent annually), the exponential rise in consumer basics (more than four minimum wages) and the increase in the poverty index (27.3 per cent) showed that the purchasing power of the Venezuelan people had been seriously affected. FEDECAMARAS had also indicated to the Government the need to adopt measures to adjust economic and monetary policies so that the minimum wage would provide a basis for establishing fair remuneration. Sincere, in-depth, effective and constructive dialogue was necessary to find solutions. Without appropriate government policies, employment and businesses were at risk.
The Worker member of the Bolivarian Republic of Venezuela recalled that since 1999 the minimum wage had been increased on 26 occasions and collective bargaining had been widely promoted in various sectors. The minimum wage also covered workers in the informal sector and in agriculture. He expressed his surprise at the discussion of non-observance of the Convention by his country and at the methods used for the selection of cases. Since the adoption of the national Constitution in 1999, consultation and social dialogue had had constitutional status. With respect to the preparation of the Basic Labour Act (LOTTT), the workers had held 2,500 assemblies. The minimum wage had been adopted taking account of the cost of the basic consumer basket, the consumer price index and inflation. Since 1999 there had been broad social dialogue in the country with the participation of all sections of society, resulting in improved tripartite dialogue. Owing to the participation of the workers, the social wage had been complemented with, among other things, the monthly food bonus, the food purchase subsidy, the provision of books and computers for students, workers’ housing, low-cost recreation facilities and free health care. He condemned the violent assaults on workers, as a result of which 42 persons had died, and also the attack on public and educational institutions. He called the Committee to give its views on that subject.
The Government member of Costa Rica, speaking on behalf of the Group of Latin American and Caribbean Countries (GRULAC), referred to the information provided by the Government on the development of the minimum wage in the country and actions it had carried out in accordance with the Constitution. He also noted the labour law provisions regarding the obligation of the executive authorities to revise and annually adjust the national minimum wage, following broad consultation and the gathering of opinions from different social and institutional organizations on socio-economic matters. Noting also the 2014 General Survey of the Committee of Experts which reported the positive progress made by the country on this issue, he expressed GRULAC’s hope that the Government would continue to fulfil the requirements of Convention No. 26, which granted States parties the freedom to decide the nature and form of the minimum wage fixing machinery, and the methods to be followed for its application.
The Employer member of Colombia, speaking also in his capacity as a member of the Committee on Freedom of Association, expressed the concern of the Employer members at the Government’s disregard for social dialogue, which was the heart of the tripartite system. Social dialogue should be encouraged by workers, employers and governments. The Bolivarian Republic of Venezuela was a member of the ILO and as such should respect its obligations. The LOTTT had modified the consultative mechanism and excluded FEDECAMARAS from social dialogue, even though it was the most representative employers’ organization. The high-level tripartite mission, which had taken place in January 2014, had recognized the most representative nature of FEDECAMARAS. However that organization could not participate in the Labour Advisory Council. The issue was also examined by the Committee on Freedom of Association in Case No. 2254. The Committee on Freedom of Association, in its Digest of decisions and principles, emphasized that the process of consultation on legislation and minimum wages helped to give laws, programmes or measures adopted or applied by public authorities a firmer justification and helped to ensure that they were well respected and successfully applied.
The Government member of Brazil recalled the experience of his country with regard to minimum wage fixing. As a result of the efforts of the labour movement and social pressures for the revaluation of the minimum wage, a public policy was developed after 2000 for the regular and progressive increase of the minimum wage. This policy contributed to increasing domestic consumption and helped the country recover from the recession. This positive result was not due only to the Government, but to the joint work of the social partners, and reinforced the importance of Convention No. 26. The creation of fixation methods for the minimum wage was the responsibility of governments, pursuant to Article 1 of the Convention. Article 91 of the Constitution established the procedure to fix the minimum wage, in line with Article 1 of the Convention. Article 3 of the Convention provides that Members are free to decide the nature and form of the minimum wage fixing machinery in consultation with the workers’ and employers’ organizations. However, it still had not been demonstrated that such consultations had not taken place. During the discussion, there had been only rhetorical assertions that the Government was not complying with the Convention as by setting the minimum wage unilaterally, with no facts demonstrating this to be the case. Without such facts, it was difficult for this Committee to effectively examine breaches of the Convention, unless it was the intention of the Employer members to stress the utility of minimum wages or of setting a higher minimum wage through the selection of this case. Should that not be the case, the Government, employers and workers of the Bolivarian Republic of Venezuela should strengthen social dialogue in order to find a solution.
The Government member of Algeria noted with interest the statement made by the Government representative. Since 2000, the Government of the Bolivarian Republic of Venezuela had been committed to genuine consultations with the social partners in good faith regarding the issue of setting the minimum wage. Referring to paragraph 202 of the 2014 General Survey of the Committee of Experts, he recalled that the consultation required under the Convention was not negotiation to reach an agreement, but a process to assist the competent authority in taking a decision. On the basis of the information provided by the Government, it was evident that it had been acting in conformity with the Convention, guided by a willingness to provide decent jobs to the workers in the country. The conclusions of the Committee should therefore only refer to issues relating to the Convention.
The Employer member of Mexico emphasized the importance of the discussion, which dealt not only with the violation of a Convention, but also with the ILO standards system as a whole. The Government recognized that it had not complied with the Convention with regard to the obligation of consultation. That also implied a violation of the Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144), which had been ratified by the Bolivarian Republic of Venezuela in 1983. The Committee should not merely request explanations on the way in which compliance was ensured with the obligation to consult workers’ and employers’ organizations regarding minimum wage fixing, but it should demand full compliance with that obligation. The tripartite system was at stake. In its observation of 2012, the Committee of Experts had already referred to existing deficiencies in social dialogue on the part of the Government and to the lack of consultation, particularly with regard to the adoption of labour and social legislation. That demonstrated the Government’s constant lack of compliance with the provisions of the Convention, which prescribed consultation of the representative organizations of workers and employers. In conclusion, the speaker called for the seriousness of the circumstances to be reflected in the Committee’s conclusions.
The Worker member of Uruguay stated that it was undeniable that social dialogue existed in the Bolivarian Republic of Venezuela. Each country had the right to establish the system of social dialogue that best suited it. The Government had increased the minimum wage on 26 occasions since 1999, taking account of the consumer price index and inflation. Discussion of the present case went beyond compliance with the Convention. The Employer members who were calling for compliance with this Convention, were the same who were jeopardizing the whole ILO standards system.
The Government member of the Plurinational State of Bolivia stated that his country endorsed the statement made on behalf of the GRULAC countries and that the measures taken by the Government with a view to increasing the minimum wage should be duly noted, each country being free to determine its own minimum wage fixing methods. The efforts made by the Government in favour of tripartite dialogue, despite the divergent interests of the social partners, should also be noted.
The Employer member of Guatemala observed that there were two aspects to the case: the lack of legal conformity and problems of implementation in practice. The lack of legal conformity had been highlighted through the enactment of the 2012 Act, the wording of which referred to social and institutional organizations dealing with socio-economic matters, instead of the most representative organizations of employers and workers. This wording confirmed the Government’s lack of interest in dialogue. It had not sought the opinion of the most representative employers’ organization in the country (FEDECAMARAS), and had only consulted it only formally after the decision had been taken to increase the amount of wages. He emphasized that the concern of the employers’ was for the absence of effective social dialogue in the country, which was one of the pillars of democracy. The ILO supervisory bodies therefore needed to ensure that the ILO’s fundamental principles, and particularly social dialogue, as guaranteed by Convention No. 144, were fully respected in the country.
The Worker member of Cuba indicated that the discussion had allowed him to understand the real situation faced by Venezuelan workers. In a context of crisis and its adverse impact on the workers, it would be strange to criticize a Government for taking protection measures in line with the Convention in response to the demands of the workers. It was rare to see so many measures taken in favour of workers. The regrouping of different existing minimum wages and extending the minimum wage level to the minimum pension had made for greater equality among the workers and had benefited approximately 2.5 million retirees. Since 2000, the periodic revision of the minimum wage had been driven by the objective of social justice, and had resulted in the replacement of a situation where 65 per cent of workers had not received the minimum wage to one of total coverage in 2014. In addition, extensive tripartite social dialogue demonstrated the Government’s commitment to finding solutions and strengthening social cohesion and the rule of law, in accordance with international labour standards. The selection of political cases would damage the Committee’s credibility.
The Government member of the Islamic Republic of Iran thanked the Government for the information indicating how it intended to secure the full observance of the obligation to consult workers’ and employers’ organizations on an equal footing with regard to minimum wage fixing. Since 2000, the minimum wage had been reviewed and fixed annually on the basis of recommendations made by the social and economic organizations, as well as workers’ and employers’ organizations, without affecting the other rights of workers. This revision demonstrated a willingness to engage in constructive consultations on minimum wage fixing with the social partners. It was positive that the Government was enhancing consultations with workers’ and employers’ organizations, after which it would fix a minimum wage that could cover the basic needs of workers. He called the Government to continue its efforts.
The Worker member of Nicaragua regretted that FEDECAMARAS did not want to accept the social, economic and political changes which had taken place in the country. The employers of the country did not have arguments to counter the Government’s efforts to distribute wealth. The Government had increased minimum wages to reverse the delay in the evolution of wages. Those same employers, who called for compliance with the Convention, viewed workers as “collaborators” so as not to pay them, evaded payment of social benefits by outsourcing and threatened to reinterpret international labour standards with new rules. The statistics and the policies carried out by the Government and the development of social dialogue demonstrated that the Government was in compliance with the Convention.
The Government member of Cuba indicated that the information provided by the Government reflected its continuous concern to ensure the social protection of workers and their families, and the particular attention given to the minimum wage fixing policy. For over 14 years, the Government had steadily increased the minimum wage to benefit workers and guarantee decent levels of remuneration that adequately covered basic needs. The General Survey reflected progress achieved by various Latin American countries regarding minimum wage fixing, and the Bolivarian Republic of Venezuela had been mentioned several times as a positive example in areas such as the protection and equal minimum wages for migrant workers, domestic workers, apprentices and persons with disabilities, the policies on periodic revision of minimum wages, and the system of penalties for cases of non-compliance. The level of minimum wage protection in the country had still not been reached by many developing countries. He concluded by expressing support for the statement made by GRULAC.
The Government member of the Russian Federation observed that the issues on which the Government had to reply were simple: how would consultations with the workers’ and employers’ organizations proceed and how would the latter participate on equal terms in determining the minimum wage? The Government had provided detailed information on the manner in which it fulfilled its obligations under the Convention. The discussion should therefore not be used as an opportunity to level additional accusations that were not related to the case under discussion and there should be no interference in the details of existing procedures in the country and the time frames for consultations. The Government had the capacity to resolve such matters itself.
An observer speaking on behalf of the World Federation of Trade Unions (WFTU) emphasized the importance of the minimum wage in the redistribution of wealth, the increase in consumption, the promotion of development and recovery from crises. The Bolivarian Republic of Venezuela was the leader in Latin America in terms of social, economic and democratic attainments, but its employers were trying to sabotage the country’s revolutionary process by engaging in violent attacks that had caused 42 deaths and wounded 800 people. In the country social dialogue existed and had the support of most of the governments and workers’ federations in Latin America. She paid tribute to the efforts of the Bolivarian Socialist Confederation.
The Government member of Myanmar commended the efforts made by the Government to resolve the issue, particularly the fact that annual consultations were held with the employers’ and workers’ organizations, in accordance with the Convention. He further praised the Government for the measures taken to provide workers with a sufficient minimum wage, which enabled them to live with dignity and to cover their social, intellectual and material needs and those of their families. The efforts made by the Government should be recognized by the Conference Committee. In conclusion, he indicated that the case should not have been brought before the Conference Committee and expected that it would be resolved sooner rather than later.
The Government member of Nicaragua endorsed in full GRULAC’s statement on this issue. His Government was concerned at the fact that the Bolivarian Republic of Venezuela had unjustifiably and for political reasons once again been brought before the Conference Committee. He drew attention to the Venezuelan Government’s cooperation, dialogue and commitment in its dealing with the ILO, and its efforts to review and fix a minimum wage in line with the recommendations of social and economic organizations and of workers’ and employers’ organizations, without undermining their rights in any way. In an appeal to countries that had shown their willingness to speak up in defence of the rights of their citizens, he reiterated his Government’s support for the Venezuelan Government in the hope that the Conference Committee would cease its age-old practice of politicizing the debate.
An observer representing the International Trade Union Confederation (ITUC), speaking on behalf of the workers’ organizations affiliated to the Trade Union Action Unit of Venezuela, regretted that the Government of the Bolivarian Republic of Venezuela was failing to comply with Articles 1 and 3 of the Convention, which emphasized consultation of the social partners. Wages and salaries included all gross remuneration including bonuses, holidays and sick leave. Consultation should be broad and participative. Wages and salaries in the Bolivarian Republic of Venezuela currently met none of those criteria and was imposed unilaterally. The minimum wage should at least cover the cost of a basic basket of goods, as required by article 91 of the Constitution. Despite the conclusions of the report of the high-level tripartite mission that took place in January 2014, there was no social dialogue in the country. He was prepared to enter into a dialogue on a vital adjustable minimum wage that was sufficient to meet the cost of food, housing, transport, health and leisure. Inflation in January 2014 was running at 59.24 per cent and it was expected to reach 73 per cent for 2014 as a whole. What was needed was for the country’s production system to be strengthened and for the workers and their organizations, on an equal footing with the employers and the Government, to be guaranteed full participation in any decisions taken with regard to the minimum wage.
The Government member of Uzbekistan believed that the Government of the Bolivarian Republic of Venezuela was fulfilling its obligations under the Convention, in so far as there was a minimum wage fixing machinery in place, the minimum wage was being established in consultation with workers and employers and the workers’ interests were protected. The existing system allowed the Government, after consultation, to establish a minimum wage, notwithstanding inevitable disagreements on certain issues, such as inflation. He concluded that his Government would like to see the case successfully resolved.
The Government member of China welcomed the efforts made by the Government of the Bolivarian Republic of Venezuela since 2000 to establish a system for the consultation of the social partners on minimum wages. The Government of China hoped that cooperation between the Government of the Bolivarian Republic of Venezuela and the Office would be strengthened with a view to consolidating this system.
The Government member of Ecuador aligned himself with the statement by GRULAC and welcomed the explanations provided by the Venezuelan Government and the measures adopted. He indicated that, together with GRULAC, the Government of Ecuador trusted that the Bolivarian Republic of Venezuela would continue to comply with the Convention, and in particular with Article 3, which provided that representatives of the employers and workers concerned should be consulted, and that it would continue to take into account the opinions of the social stakeholders. He noted and encouraged the commitment of the Government to provide all workers with an adequate minimum wage to meet the basic needs of themselves and their families regarding health, work, housing and education, and to live a life in dignity.
The Government member of Argentina commended the attention given to a Convention with so much social significance and noted the interventions by the representatives of the social partners. She emphasized that the Convention required consultation, but did not specify the machinery to be adopted, leaving that to be determined by national legislation, provided that it ensured that the opinions of workers and employers were taken into account (Article 3). It was important to emphasize that minimum wage fixing had been incorporated into the Venezuelan Constitution and that, even during times of crisis, the rates had continued to be increased in line with the needs of workers. That had not been the case in other countries faced with economic problems. Based on the interventions of the social partners, it had to be concluded that the Government of the Bolivarian Republic of Venezuela promoted effectively the consultation machinery set out in the Convention. The main question concerned the opportunities granted to employers’ representatives who had nevertheless been able to express their views and agree with the increase that had been approved, according to the comments of FEDECAMARAS in the press. Her Government hoped that the intensification of social dialogue would guarantee the effective maintenance of the minimum living wage, which was fundamental for workers in all countries, and which was the objective of the Convention.
The Government representative said that he would restrict his comments to Convention No. 26, even though other speakers, in view of the lack of substance, had raised other issues. The Convention allowed total freedom in fixing the guaranteed minimum wage, which was guaranteed in his country, where over 52 per cent of the members of a workers’ confederation had been consulted. If the other workers consulted were included, over 80 per cent of the total workforce had been consulted. He acknowledged that, due to its roots, it was easier for his Government to talk to workers, but it was also restoring dialogue with employers. That was no easy matter in view of the attempted coups d’état. Indeed, the President of the employers had visited offices of the Government and the Ministry of Labour in 2014, something that had not happened since the attempted coup. Referring to the minimum wage, he indicated that there had initially been a 10 per cent increase in response to inflation and that FEDECAMARAS had considered it moderate and reasonable on the day it was announced, and the next day it had declared that consultations had been held sufficiently in advance. He therefore considered that what FEDECAMARAS said in the Bolivarian Republic of Venezuela was quite different from what was said by the Employer members in the Conference Committee. If the employers wanted to increase the minimum wage further, that could be considered. For the past 15 years, the minimum wage had increased every 1 May in the country. Knowing that, the employers should not have waited until April, but should have acted much earlier. The tripartite commission had ceased functioning in 1998, and the Constitution of 1999 had introduced the minimum wage system. He wondered what issue exactly was being raised, and whether the effectiveness of the minimum wage in the Bolivarian Republic of Venezuela was being challenged. The Convention provided that the minimum wage had to provide a decent remuneration that was as non-discriminatory as possible, and that was what his Government was doing. Turning to Articles 1 and 3 of Convention No. 26, he emphasized that, in accordance with Article 3, every Member ratifying the Convention was free to decide the nature and form of the minimum wage fixing machinery and that the representatives of the employers and workers concerned were to be consulted. He emphasized the word “concerned” and the need for them to have a direct interest in the fixing of the minimum wage. He read out a press release relating to the increase in the minimum wage on 1 May 2014 entitled “FEDECAMARAS considers the wage increase responsible”, and indicated that the President of FEDECAMARAS had said that this year they had been consulted sufficiently in advance and had sent a communication to the Ministry of Labour. The Government was working with FEDECAMARAS, with which it had no problem. It held weekly meetings with most of the chambers of employers, and he indicated that the week before he had left for Geneva, he had held a meeting with many of the chambers represented in FEDECAMARAS, at which the subject of the minimum wage had not even been raised. In other words, the employers spoke with one voice in the Conference Committee and another in the Bolivarian Republic of Venezuela. However, the Government was prepared to give them more time and to listen to them, just as it listened to everybody. He concluded that the Convention was fully implemented, and it was to be hoped that that would be reflected in the Conference Committee’s conclusions.
The Employer members deplored the unparliamentary language used in certain statements and thanked the Government of the Bolivarian Republic of Venezuela for the information provided. They reiterated that the shortlist of individual cases was negotiated by the Employer and Worker members, and was then adopted on a tripartite basis by the Conference Committee. Convention No. 26 was a technical Convention that had been ratified by the Bolivarian Republic of Venezuela in 1944, and this was the fifth observation that had been made in relation to it since 2008. They considered that it had been demonstrated that the Bolivarian Republic of Venezuela was not in full compliance with the Convention and had not held real and effective consultations, which required good faith and not mere information. The social partners should be given ample opportunity to express their views, which should be given in-depth consideration, even if the final decision-making power lay with the Government. There was a failure to give effect to Article 2 of the Convention, under which the Government could decide to whom the minimum wage would be applied and what method would be used to fix it, although that always had to be done in prior consultation of the social partners, which had not been the case. Article 3 established the freedom to fix the minimum wage, but also required consultation with the employers’ and workers’ organizations concerned. Article 5 required governments to communicate to the Office on an annual basis a list of the trades and parts of trades in which the minimum wage fixing machinery was applied, indicating the methods as well as the results of the application of the machinery. The Committee’s conclusions should call on the Government to comply with the terms of Article 5 and to send the required information to the Office. The Employer members recalled the 368th Report (June 2013) of the Committee on Freedom of Association (CFA), and particularly the conclusions of Case No. 2254 (paragraph 985(g)), in which the CFA stated that it expected that social dialogue would be held and once again requested the Government to convene the tripartite commission provided for in the Basic Labour Act. That conclusion was perfectly applicable to the present case. They also referred to paragraph 52 of the report of the high-level mission that had visited the country in January 2014, which had called for respect for freedom of association, efforts to find shared solutions and inclusive dialogue. In light of the above, the Employer members called for the Government to be urged to ensure full compliance with Convention No. 26, particularly with regard to real and effective consultation of employers’ and workers’ organizations; and for the Government to be requested to comply with Article 5 of the Convention by supplying annual reports to the Office on the methods adopted and consultation. To ensure closer follow up, they urged the parties to continue requesting specific technical assistance on the Convention and on consultation.
The Worker members thanked the Government and the other speakers for the valuable information they had provided. The report of the high-level tripartite mission that had visited the Bolivarian Republic of Venezuela had been submitted to the Governing Body in March 2014 and contained a series of conclusions constituting guidelines on ways to resolve the case. The aim must therefore be to implement these guidelines. Social dialogue included consultation with representative organizations, negotiations and, depending on the country concerned, the establishment of bodies to resolve disputes that might arise between the social partners. In the Bolivarian Republic of Venezuela, it was important to create the necessary conditions to be able to engage in the inclusive dialogue called for by its National Constitution, which should also be fully compatible with the existence of functional tripartite bodies. The Government should accept ILO technical assistance to establish effective social dialogue and a legal framework that defined the role of the respective parties through objective and democratic procedures. During the high-level mission, the Government had stated its willingness to have recourse to technical cooperation programmes. It should give effect to that as soon as possible.
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The Committee notes the adoption of Decree No. 6.660 of 30 March 2009, raising the level of the minimum wage as from 1 September 2009 to 959.08 bolívars (bolívares fuertes) (approximately US$447), amounting to an increase of 20 per cent, for all workers in urban and rural areas, the private and public sectors, as well as domestic workers, concierges and apprentices. The Committee notes this information with particular interest, especially in light of the Global Jobs Pact, adopted by the International Labour Conference in June 2009 to address the impact of the international financial and economic crisis. Indeed, the Global Jobs Pact calls on governments to consider options such as minimum wages that can reduce poverty and inequity, increase demand and contribute to economic stability (paragraph 23). It also emphasizes that, in order to avoid deflationary wage spirals, minimum wages should be regularly reviewed and adapted (paragraph 12).
Article 3(2) of the Convention. Consultations with employers’ and workers’ organizations. The Committee notes the Government’s reply to the observations made by the Venezuelan Federation of Chambers and Associations of Commerce and Production of Venezuela (FEDECAMARAS) and the Confederation of Workers of Venezuela (CTV). The Committee also takes note of new comments made by FEDECAMARAS and the Independent Trade Union Alliance (ASI), dated 31 August 2010 as well as the Government’s reply dated 19 November 2010. These organizations have indicated, in the same way as the International Organisation of Employers (IOE) in 2007, that the Government was not holding the consultations envisaged by law for the determination of the national minimum wage, namely convening the National Tripartite Commission responsible for making concerted recommendations on the adjustment of the minimum wage, in accordance with section 167 of the Basic Labour Act. The organizations emphasized that they were not able to give their views on the subject as the invitations to the consultations were sent out very late or even after the date of publication of the Decree to increase the minimum wage.
In its replies, the Government indicates that it holds consultations with the social partners concerned at the national, regional and even local levels concerning any comments that they may wish to make and the measures adopted by the Government in relation to the determination of minimum wages. It adds that section 172 of the Basic Labour Act authorizes the executive authorities to determine the amount of the minimum wage, after seeking the views of the most representative employers’ and workers’ organizations and other national bodies, so that they can make known their opinion on the determination of the national minimum wage, which demonstrates the Government’s will to establish, maintain and consolidate fair, inclusive and beneficial social dialogue, without exclusive rights or discrimination of any type based on former positions related to power or favouritism.
The Committee wishes to emphasize once again the fundamental importance of the consultation procedure under the Convention and recalls that, while each government may determine by national law or regulations the manner of consultation, such consultations must nevertheless be held prior to the adoption of decisions and they have to be effective, that is to say that they need to allow employers’ and workers’ organizations to be able to give their views in a useful manner on the matters under consultation, in this case minimum wages. The Committee also recalls, as indicated in paragraph 241 of its 1992 General Survey on minimum wages, that the participation of employers and workers, their organizations and representatives, must be direct, including the possibility that the parties concerned form part of the relevant bodies and that their participation is effective, that is to say that the opinions reached by the parties concerned should be duly taken into consideration, and that the participation should take place on an equal footing. While noting the efforts made by the Government to review minimum wage rates regularly, with a view to ensuring workers a satisfactory standard of living, the Committee requests the Government to provide detailed information on the exact procedures for consultation with employers’ and workers’ organizations for the fixing of the minimum wage and on the functioning of the National Tripartite Commission responsible for making recommendations on the adjustment of the minimum wage.
Finally, the Committee once again draws the Government’s attention to the decision by the ILO Governing Body to classify Convention No. 26 among those instruments which may no longer be fully up to date but which nevertheless remain relevant in certain respects (document GB.283/LILS/WP/PRS/1/2, paragraphs 19 and 40). The Committee therefore suggests that the Government might consider the possibility of ratifying the Minimum Wage Fixing Convention, 1970 (No. 131), which marks a certain progress in relation to older instruments on minimum wage fixing, for instance in terms of its broader scope of application, the requirement for a comprehensive minimum wage system and the obligation to determine criteria for fixing and adjusting minimum wage rates. The Committee requests the Government to keep the Office informed of any decision adopted or envisaged in this respect.
The Committee notes the information provided in the Government’s report, and particularly the adoption of Decree No. 6.052 of 29 April 2008, setting the level of the minimum wage as from 1 May 2008 at 799.23 bolivars (bolívares fuertes) (or around US$372) for all workers, urban or rural, in the private and public sectors, and domestic workers, and at 599.43 bolivars (or around US$279) for apprentices.
Article 3 of the Convention. Consultations with employers’ and workers’ organizations. The Committee notes the observations made by the Venezuelan Federation of Chambers and Associations of Commerce and Production (FEDECAMARAS), which were received on 27 August 2008 and 27 August 2009 and forwarded to the Government on 4 September 2008 and 7 September 2009, respectively, and the Confederation of Workers of Venezuela (CTV), received on 31 August 2009 and forwarded to the Government on 16 September 2009. These organizations indicate that the Government is not holding the consultations provided for by law for the determination of the minimum wage. More specifically, FEDECAMARAS denounces the fact that the Government has not convened the National Tripartite Commission responsible for making recommendations on the adjustment of the minimum wage for the past nine years and recalls that the minimum wage fixing machinery shall, in accordance with section 167 of the Basic Labour Act, be the outcome of tripartite dialogue between the Government and employers’ and workers’ organizations. FEDECAMARAS also indicates that wage increases have been determined by Presidential Decree without consultation, as invitations to the consultations were issued very late or even after the date of publication of the Decree. The Committee further notes that the International Organisation of Employers (IOE), to the observations of which there has, as yet, been no reply, had raised similar issues. In this respect, the Committee wishes once again to recall that Article 3 of the Convention requires the full and effective consultation of employers’ and workers’ organizations and their participation on an equal footing in the operation of minimum wage fixing machinery. As the Government’s reply was received on 8 December 2009, the Committee intends to examine in detail the matters raised in the above observations at its next session.
Finally, the Committee draws the Government’s attention to the conclusions adopted by the ILO Governing Body in relation to the relevance of the present Convention, based on the recommendations of the Working Party on Policy regarding the Revision of Standards (GB.283/LILS/WP/PRS/1/2, paragraphs 19 and 40). The Governing Body decided to classify Convention No. 26 among those instruments that may no longer be fully up to date but which nevertheless remain relevant in certain respects. The Committee therefore suggests that the Government might consider the possibility of ratifying the Minimum Wage Fixing Convention, 1970 (No. 131), which contains certain advances compared to older instruments on minimum wage fixing, for instance in terms of its broader scope of application, the requirement for a comprehensive minimum wage system and the obligation to determine criteria for fixing and adjusting minimum wage rates. The Committee requests the Government to keep the Office informed of any decision adopted or envisaged in this respect.
The Committee notes the information supplied by the Government in reply to its last comment. Specifically, the Committee notes with interest the adoption of Decree No. 4.446 of 28 April 2006, section 1 of which establishes the minimum wage applicable to all workers, whether urban or rural, including domestic workers, irrespective of the number of workers in the enterprise. It notes that the amount of the monthly minimum wage was 465,700 bolivars (US$217) from 1 May 2006 and 512,325 bolivars (US$239) from 1 September 2006. It also notes Decree No. 5.318 of 25 April 2007, which increased the amount of the minimum wage to 614,790 bolivars (US$286) from 1 May 2007, representing an increase of 20 per cent.
The Committee also notes the adoption of Decree No. 4.447 of 25 April 2006 issuing regulations to implement the Organic Labour Act. It notes with interest that this Decree no longer authorizes – in contrast to section 32 of the previously applicable regulations – the conclusion of apprenticeship contracts with a lower minimum wage for workers between 18 and 25 years of age. Moreover, it notes that the abovementioned Decrees Nos 4.446 and 5.318 provide for a lower minimum wage for apprentices under the age of majority, unless they perform their work in conditions identical to those of adult workers.
Moreover, the Committee notes the comments made by the International Organisation of Employers (IOE) on the application of the Convention, which were received on 27 September 2007 and forwarded to the Government on 15 October 2007. In particular, it notes the comments of the IOE concerning the lack of social dialogue in the country and the Government’s refusal, for more than eight years, to convene the national tripartite committee mandated, in accordance with section 167 of the Organic Labour Act, to make recommendations on the revision of the minimum wage. In this respect, it also notes section 61 of the abovementioned Decree No. 4.447, which authorizes minimum wage fixing machinery other than that provided for by section 167 of the Organic Labour Act. The Committee recalls that Article 3 of the Convention requires, as a fundamental principle of any system for the fixing of minimum wages, the full and effective consultation of employers’ and workers’ organizations, and their participation on an equal footing in the aforementioned minimum wage fixing machinery. Moreover, the Committee notes that the 2007 Enabling Act allows the President of the Republic to adopt, as from 1 February 2007 for a period of 18 months, decrees having the same validity as acts in a large number of spheres, including economic and social affairs. The Committee trusts that the Government will discharge its obligations under the Convention with regard to the participation of employers’ and workers’ organizations on an equal footing in the minimum wage fixing machinery. It requests the Government to forward its comments in reply to the comments made by the IOE on the application of the Convention.
While noting with interest the information supplied by the Government regarding the evolution of the minimum wage in absolute terms and in relation to the cost of the basic food basket, the Committee requests the Government to continue supplying information on the application of the Convention in practice, particularly information concerning changes in the minimum wage in relation to the rate of inflation.
[The Government is asked to reply in detail to the present comments in 2008.]
The Committee notes the information contained in the Government’s report and in particular Decree No. 1752 of 28 April 2002 which fixes minimum wage rates for certain categories of workers, including urban and agricultural workers, concierges, young persons and apprentices, and workers in enterprises with fewer than 20 employees. The Committee also notes that, under section 10 of the above Decree, domestic workers are not covered by minimum wages fixed in this manner. The Committee recalls that the Convention is intended to guarantee a decent level of remuneration for persons earning exceptionally low wages and who do not benefit from an effective system for fixing wages through collective agreement. The Committee requests the Government to specify the minimum wage applicable to domestic workers and to indicate the procedure by which their wages are determined in practice.
Moreover, recalling its previous comment, the Committee is bound to request once again general information relating to the application of the Convention in practice, in accordance with Article 5 and Part V of the report form, for example: (i) the evolution of minimum wage rates in recent years; (ii) available statistical data on the number and different categories of workers covered by minimum wage regulations; (iii) extracts from official reports on socio-economic aspects of minimum wages; and (iv) the results of the inspections carried out (violations reported, sanctions imposed, etc.).
The Committee notes the detailed information provided by the Government and, in particular, the amendment to the Organic Labour Act (LOT) of 1997, respecting the minimum wage-fixing machinery, which established a National Tripartite Committee on 8 January 1998 to fix and revise minimum wages in January of each year, taking into account such variables as the cost of the family shopping basket.
The Committee requests the Government to continue to provide information, in conformity with Article 5 of the Convention, read in conjunction with point V of the report form, in respect of the functioning of the National Tripartite Committee and other relevant data in respect of the practical application of the Convention, for example: (i) the development of minimum rates of wages in force; (ii) the available statistical data in respect of the number and different categories of workers subjected to the minimum rates of wages regulations; and (iii) the results of inspections carried out (for example, the violations observed, sanctions imposed, etc.).
The Committee notes the information supplied by the Government concerning the minimum wage rates that have been fixed over recent years, and concerning the Act setting up the National Commission for Costs, Prices and Wages. The Committee requests the Government to inform it in its next report of the operation of the National Commission in fixing minimum wages and the role it plays in this process, in accordance with the provisions of section 6(5) of the above Act. The Committee also hopes that the Government will supply information, in accordance with the provisions of Article 5 of the Convention, regarding the number of workers covered by the minimum wage system, on the new minimum wage rates and the consultations which took place with employers' and workers' organisations for this purpose.