Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Dominican Republic (Ratification: 1956)

Direct Request (CEACR) - adopted 2018, published 108th ILC session (2019)

The Committee notes the observations of the National Confederation of Trade Union Unity (CNUS), the Autonomous Confederation of Workers’ Unions (CASC) and the National Confederation of Dominican Workers (CNTD), received in 2016, on the application of Convention, No. 26 (minimum wage), and Convention No. 95 (protection of wages), and the Government’s response to the observations on Convention No. 26. 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 Convention No. 26 and Convention No. 95 together.

Minimum wages

Article 3(1) and (2)(1) and (2) of Convention No. 26. Operation of the minimum wage-fixing machinery. The Committee notes that: (i) in their observations, the CNUS, the CASC and the CNTD reiterate their previous observations regarding the operation of the National Wages Commission (CNS), the tripartite body mandated to fix minimum wages; and (ii) in its response, the Government indicates that: (a) the CNS operates as a tripartite body with an equivalent number of workers’, employers’ and government representatives; (b) although its decisions are taken by a simple majority, in practice the CNS seeks the approval of the workers’ and employers’ representatives; and (c) the Government is committed to providing a forum for dialogue between the parties. Lastly, the Committee notes the adoption of several resolutions by the CNS in 2017, adjusting the level of the minimum wage applicable to various groups of workers.

Protection of wages

Articles 5, 6 and 7 of Convention No. 95. Payment of wages via bank transfer. The Committee notes that: (i) in their observations, the CNUS, the CASC and the CNTD indicate that, in practice, the vast majority of businesses pay their workers via bank transfer and the employer decides in which bank the wages will be deposited; and (ii) the Government has not provided its comments on this matter. The Committee recalls that the payment of wages by bank transfer with the agreement of the worker concerned does not pose problems with regard to the application of Article 5 (2003 General Survey on protection of wages, paragraph 166). However, the fact that the employer chooses the bank in which the wages are deposited could give rise to issues regarding the application of this Article, as well as Article 6, under which employers shall be prohibited from limiting in any manner the freedom of workers to dispose of their wages, and Article 7, under which, where services are operated in connection with an undertaking, the workers concerned shall be freed from any coercion to make use of such services. In this context, and with a view to giving full effect to the Convention, the Committee requests the Government to take the necessary measures to guarantee that workers may, if they so wish, choose the banking institution in which employers deposit their wages. The Committee requests the Government to provide information in this regard.

Article 8. Deductions from wages. Limits. With respect to its previous comments, the Committee notes that the Labour Code permits deductions on various grounds (section 201), but does not fix a maximum limit in the case of deductions on multiple grounds. While noting the Government’s reference in its report to article 62(9) of the Constitution of the Dominican Republic and Principle XII of the Labour Code, which recognize the right of the worker to fair and adequate wages, the Committee requests the Government to take the necessary measures to establish a maximum limit in the case of deductions on multiple grounds and to provide information in this respect. With regard to deductions related to the repayment of bank loans, the Committee notes that the CNUS, the CASC and the CNTD reiterate their previous observations asserting that banks can deduct certain debts from the wages deposited in the bank without the worker’s authorization and that they also deduct percentages for the transactions effected. The Committee notes in this regard that the Government refers to section 201(4) of the Labour Code, which provides that a worker may be subject to deductions related to loans granted by banks with the recommendation and guarantee of the employer, on the condition that no more than one sixth of the monthly wage earned by the worker is deducted.

Article 12. Payment of wages at regular intervals. Final settlement of all wages due. In its previous comments, the Committee requested the Government to provide its comments on the observations of the CNUS, the CASC and the CNTD regarding several cases of delays in the payment of wages. The Committee notes the Government’s indication that it has taken action, including an awareness-raising campaign on workers’ rights in the sector concerned, and that the payment of the wages of the workers involved was regularized. In their most recent observations, the CNUS, the CASC and the CNTD reiterate that many employers delay the payment of wages and assert that increasing numbers of businesses in export processing zones are ceasing operations without fulfilling their obligation to settle the wages due. Noting that the Government has not sent its comments on this subject, the Committee recalls that, under Article 12, wages shall be paid regularly and, upon the termination of a contract of employment, a final settlement of all wages due shall be effected, within a reasonable period of time. The Committee recalls that the rational underlying Article 12 is to discourage long-wage payment intervals, to minimize the likelihood of indebtedness among workers and to allow them to organize their everyday life with a reasonable degree of certainty and security. Inversely, the delayed payment of wages or the accumulation of wage debts clearly contravene the letter and the spirit of the Convention and render the application of most of its other provisions meaningless (2003 General Survey, Protection of wages, paragraph 355). Moreover, the Committee considers that the application of Article 12 comprises three essential elements: (i) efficient control; (ii) appropriate sanction to prevent and punish infringements; and (iii) the means to redress the injury caused, including not only the full payment of the amounts due, but also fair compensation for the losses incurred by the delayed payment (2003 General Survey, Protection of wages, paragraph 368). The Committee requests the Government to take the necessary measures to guarantee compliance with Article 12 and to provide information on this subject.

Article 14(b). Information to be provided to the worker at the time of each payment of wages. Observing that the Labour Code does not include the obligation to inform workers of the particulars of their wages at the time of each payment of wages, the Committee recalls that, under Article 14(b), where necessary, effective measures shall be taken to ensure that workers are informed, in an appropriate and easily understandable manner at the time of each payment of wages, of the particulars of their wages for the pay period concerned, in so far as such particulars may be subject to change. The Committee requests the Government to indicate the manner in which effect is given to Article 14(b).

Direct Request (CEACR) - adopted 2012, published 102nd ILC session (2013)

Articles 1 and 3 of the Convention. Minimum wage fixing machinery. Further to its previous comment, the Committee notes the Government’s reference to article 62 of the Constitution promulgated on 26 January 2010 which provides that all workers have the right to fair and adequate remuneration that allows them to live decently and cover basic material, social and cultural needs. The Government also refers to the latest resolutions adopted by the National Wages Commission in 2011, which establish minimum wage levels for various categories of workers, including construction workers and agricultural workers. According to the information provided in the Government’s report, monthly minimum wages vary between 4,554 Dominican pesos (DOP) (approximately US$114) in small enterprises in the tourism sector, DOP6,320 (approximately $158) in export processing zones (EPZs), DOP5,000 (approximately $125) in the sugar industry and DOP8,356 (approximately $209) in security services. Moreover, the Government refers to a bilateral agreement of May 2011 fixing minimum wages for the hotel sector. As regards the operation of the National Wages Commission, the Government indicates that its decisions are not unanimous but put to a simple majority vote after open and democratic debate in the presence of all three parties. In reviewing minimum wage rates, the members of the National Wages Commission take into consideration indicators such as the inflation, productivity, the purchasing power of the family basket (canasta familiar) and the financial situation of enterprises concerned.

In this connection, the Committee notes the comments of the Autonomous Confederation of Workers’ Union (CASC), the National Confederation of Trade Union Unity (CNUS) and the National Confederation of Dominican Workers (CNTD), which were received on 8 October 2012 and transmitted to the Government on 31 October 2012. According to the three confederations, the manner in which minimum wages are determined does not guarantee the right to fair and adequate wages enshrined in the Constitution as not only may the decisions of the National Wages Commission be taken with the votes of two of the three parties, but there are no clearly defined criteria for minimum wage fixing. The workers’ unions also indicate that minimum wages do not ensure a decent living for the workers and their families. In fact, the current multiplicity of minimum wage rates based on factors, such as the type and size of the enterprise, or the geographical location, shows that very little consideration is given to the workers’ needs. As a result, the minimum wage rates applicable in EPZs, the tourism sector and the sugar industry can hardly cover 50 per cent of the value of the family basket based on figures published by the central bank in February 2011. In the view of the three confederations, a legislative change is needed to set up a genuine minimum wage system, as part of a policy for social protection and poverty reduction, capable of providing socially acceptable income to all workers and their families. The Committee requests the Government to provide any comments it may wish to make in response to the observations of the CASC, CNUS and CNTD.

Article 5 of the Convention and Part V of the report form. Application in practice. The Committee requests the Government to provide in its next report updated information on the application of the Convention in practice, including, for instance, statistics on the number of workers remunerated at the minimum wage rate, the evolution of minimum wage rates compared to the evolution of economic indicators such as the inflation rate, and extracts from reports of the inspection services detailing violations of the minimum wage legislation reported and the penalties imposed.

Direct Request (CEACR) - adopted 2011, published 101st ILC session (2012)

The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

Repetition

Article 5 of the Convention. Minimum wages. The Committee notes that the minimum wage rates established by the National Wage Commission vary depending on the activity of the enterprise, its social capital and its geographical location. Whilst noting that, following its most recent readjustment, the minimum wage stood, by way of example, at 4,100 pesos (approximately US$125) per month in free zones, 3,100 pesos (approximately US$95) in the sugar industry and 3,550 pesos (approximately US$108) in medium-sized enterprises in the hotel sector, the Committee would like to receive further information on the criteria used as the basis for fixing minimum wage rates and on the ability of such rates to guarantee workers and their families a decent standard of living.

The Committee would be grateful if the Government would continue providing, in accordance with Article 5 of the Convention and Part V of the report form, information on the application of the Convention in practice, including, for instance, statistics on the number of workers remunerated at the minimum wage rate; copies of studies or other official documents on the functioning of the minimum wage system; statistics on recent changes in minimum wage rates in relation to fluctuations in economic indicators, such as the rate of inflation, during the same period; and extracts from inspection service reports detailing the violations reported and the penalties imposed.

Direct Request (CEACR) - adopted 2006, published 96th ILC session (2007)

The Committee notes the information provided in the Government’s report, and the documents attached. It also notes the most recent resolutions, adopted in 2006, which readjust the national minimum wage for certain categories of construction workers. The Committee notes that the minimum wage rates established by the National Wage Commission vary depending on the activity of the enterprise, its social capital and its geographical location. Whilst noting that, following its most recent readjustment, the minimum wage stood, by way of example, at 4,100 pesos (approximately US$125) per month in free zones, 3,100 pesos (approximately US$95) in the sugar industry and 3,550 pesos (approximately US$108) in medium-sized enterprises in the hotel sector, the Committee would like to receive further information on the criteria used as the basis for fixing minimum wage rates and on the ability of such rates to guarantee workers and their families a decent standard of living.

The Committee would be grateful if the Government would continue providing, in accordance with Article 5 of the Convention and Part V of the report form, information on the application of the Convention in practice, including, for instance, statistics on the number of workers remunerated at the minimum wage rate; copies of studies or other official documents on the functioning of the minimum wage system; statistics on recent changes in minimum wage rates in relation to fluctuations in economic indicators, such as the rate of inflation, during the same period; and extracts from inspection service reports detailing the violations reported and the penalties imposed. In this regard, the Committee wishes to refer to its last observation concerning the application of the Labour Inspection Convention, 1947 (No. 81), in which it mentioned the need to ensure that financial penalties for violations of legal provisions are established, taking into account the dissuasive purpose that they are to fulfil, despite any monetary fluctuations, and that these penalties are effectively enforced.

Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

The Committee notes the Government’s detailed report and the attached documents, in particular the publication by the Secretariat of Labour of April 2002 containing the resolutions of the National Wage Commission fixing the minimum wages for the various branches of activity. The Committee also notes Decree No. 77-97 of 14 February 1997, which fixes the minimum wage for the public sector. The Committee notes that, in accordance with section 456 of the Labour Code, minimum wage rates for each branch of economic activity shall be automatically reviewed by the National Wage Commission at least once every two years. The Committee requests the Government to provide information on the application of this provision in practice, particularly in the sugar industry, footwear sector and the public sector.

Regarding the methods of enforcement of minimum wages and the sanctions imposed, the Committee notes with interest the copy of the judicial decision of 6 April 2000 attached in the Government’s report, as well as the model form for reporting violations used by the Labour Inspection Service. The Committee requests the Government to continue supplying information on the operation of the minimum wage fixing machinery, both in law and in practice, including reports on the activities of the National Wage Commission, official studies of socio-economic aspects of minimum wages, statistical data on the number of workers covered by the various minimum wage categories, etc.

Direct Request (CEACR) - adopted 1998, published 87th ILC session (1999)

The Committee notes the detailed information provided by the Government in reply to its previous comments. It notes the Government's statement to the effect that members of the employers' and workers' organizations concerned are always represented in equal numbers and take part in the process of fixing the minimum wage on an equal basis (in terms of speaking and voting rights). It also notes the information provided by the Government concerning persons working at home and disabled persons, as well as the survey and various other data on national minimum wages.

The Committee requests the Government, in accordance with Article 5 of the Convention and point V of the report form, to continue to provide general information on the effect given to the Convention in practice, for example: (i) minimum rates of wages in force, including those in the public sector; (ii) available statistics on the number and various categories of workers covered by the minimum wage regulations; and (iii) the results of any inspections carried out (for example, cases of violations, sanctions imposed, etc.).

Direct Request (CEACR) - adopted 1995, published 82nd ILC session (1995)

The Committee notes the adoption of Act No. 16-92 to promulgate the Labour Code of 29 May 1992, which maintains the system for minimum wage fixation by the National Wages Commission. It notes that under section 193 of the above Code, the amount of the wage may on no account be lower than the minimum wage established by law.

The Committee asks the Government to provide a copy of the regulations issued under section 275 of the above-mentioned Code concerning the conditions and methods for the application of the other provisions of the Code to home work, and a copy of the decree or regulations issued under section 316 concerning persons with disabilities.

The Committee notes that under section 452(1).1, the National Wages Commission consists of a director-general and two representatives appointed by the Executive. It asks the Government to explain the procedure whereby the two representatives are appointed and the methods whereby employers and workers are consulted with a view to such appointment.

Direct Request (CEACR) - adopted 1995, published 83rd ILC session (1996)

The Committee requests the Government to supply a copy of the regulations issued under section 275 of the Labour Code of 29 May 1992 respecting the conditions and methods for the application to home work of the other provisions of the Code and a copy of the decree or regulations issued under section 316 concerning persons with disabilities.

The Committee notes that, under section 452(1), item (1), the National Wages Commission consists of a director-general and two representatives appointed by the Executive. It once again requests the Government to explain the procedure whereby the two representatives are appointed and the methods whereby employers and workers are consulted on such appointment.

Observation (CEACR) - adopted 1995, published 82nd ILC session (1995)

The Committee notes the observations of the Employers' Confederation of the Dominican Republic on the application of the Convention and the Government's comments on them.

Referring to a Bill to lead to an overall increase of 30 per cent in wages in the public sector and in the private sector, the above Confederation alleges: (i) that the minimum wage fixing machinery contained in the national legislation, in accordance with the Convention, was not applied; and (ii) that employers were not consulted in fixing minimum wages, as required by the Convention. The above Confederation has informed the President of the Senate of this breach of the law and has asked that the Senate Finance Committee reject the Bill.

By a letter of 23 January 1994 the Government pointed out that: (i) the Bill was presented by a senator from the opposition; (ii) the Bill has not yet been examined although it has been endorsed by the Senate Labour Committee; (iii) in accordance with the Constitution, the Executive is empowered to make observations on any law enacted by Congress if it deems it to be inconsistent with the Constitution or ratified treaties. The Government therefore considers that the comments of the Employers' Confederation of the Dominican Republic to be premature.

The Committee takes note of this information. It notes that the Bill, which originated in Parliament, has not been adopted and that, consequently, the Government may still present it to the employers and workers concerned with a view to consulting them, amongst other things to ascertain whether or not the Bill will contribute to securing an effective system for fixing minimum wages. It recalls that the minimum wage fixing machinery provided for in the Convention is of a subsidiary nature to the extent that it is mandatory only where "no arrangements exist for the effective regulation of wages by collective agreement or otherwise".

The Committee also recalls that tripartism and tripartite consultations on matters of common interest are fundamental principles of the ILO and that governments of member States have the obligation, as need be, to enter into tripartite consultations.

The Committee asks the Government to indicate the action taken by Congress on the above Bill and the measures taken to ensure that employers' and workers' organizations are consulted with regard to minimum wage fixing in accordance with the Convention.

Observation (CEACR) - adopted 1995, published 83rd ILC session (1996)

The Committee refers to its previous observation concerning the comments made by the Employers' Confederation of the Dominican Republic on the application of the Convention, in which it requested the Government to indicate the action taken by Congress on a Bill designed to lead to an overall increase of 30 per cent in wages and the measures taken to ensure that employers' and workers' organizations are consulted with regard to minimum wage-fixing in accordance with the Convention.

The Committee notes from the Government's report that Congress has not taken a decision on the above Bill, but has accorded a general increase in remuneration in the public service. With regard to the private sector, the National Wages Commission, a tripartite body composed of government representatives and representatives of employers and workers appointed by their respective organizations, decided upon an increase in the statutory minimum wage of 20 per cent.

The Committee requests the Government to continue supplying information on the measures which have been taken or are envisaged to ensure the fixing of minimum wages. A request relating to other points is being addressed directly to the Government.

Direct Request (CEACR) - adopted 1993, published 80th ILC session (1993)

The Committee notes with interest the adoption of Act No. 16-92 promulgating the Labour Code on 29 May 1992 which maintains the system of minimum wage fixing by the National Wages Committee. It notes that, under section 193 of the Labour Code, the amount of the wage shall in no case be less than the minimum wage established by law.

The Committee requests the Government to communicate a copy of the regulations made under section 275 of the Code concerning the conditions and manner in which the other provisions of the Code should be applicable to work at home, and of the decree or regulation made under section 316 concerning disabled persons.

The Committee notes that the National Wages Committee consists of a Director-General and two representatives nominated by the Executive under section 452, paragraph 1, item 1. It requests the Government to specify the procedure in which the two representatives are nominated and the manner in which the employers and workers are consulted in view of their nomination.