Protection of Wages Convention, 1949 (No. 95) - Argentina (Ratification: 1956)

Individual Case (CAS) - Discussion: 1996, Publication: 83rd ILC session (1996)

The Government supplied the following information:

Initially, it was important to note, as has often been the case concerning acts of the provincial governments (in this case that of Entre Ríos), that under the federal system of government the provinces had an autonomy of decision as regards the organization and legislation governing their administrations, without any interference from the national Government. Therefore the authorities of the Province of Entre Ríos had been informed of the communication from the Confederation of Educational Workers of the Argentine Republic (CTERA) and the present reply had been prepared on the basis of these inquiries.

In Argentina many provinces were currently experiencing a serious financial crisis which often affected their ability to fulfil their obligations. In this urgent context and given the impossibility of replying with necessary resources to these inquiries, the government of the Province of Entre Ríos had issued Decree No. 5863 of 3 October 1994, which was no longer in force because it had been superseded by Decree No. 411 of 29 February 1996.

In this regard Decree No. 5863, contrary to what had been stated by the complainant, tried to give priority - in the context of the circumstances mentioned - to the payment of wages of public servants by paying them prior to any other disbursement of the provincial government. For this the legislation in question authorized the Secretary of Finance to set up a payment programme imposing a maximum deadline for effective payment of all salaries in the public sector which could not extend beyond the 15th day of the month from the date when payment was due. Moreover, section 3 of the Decree was called into question based on the fact that it violated the right to strike. However, it must be taken into consideration that the above-mentioned section did not restrict this right to any extent: the situation was, in fact, a logical and legal consequence of the provisions contained in section 1. This signified that the deadline or legal due date for payment of wages was the 15th of each month and in no manner could there be considered a default in payment (with all the legal consequences that this entails) when wages were not paid prior to that date.

On 29 February 1996 provincial Decree No. 411 superseded Decree No. 5863 according to which the due date for payment of wages in the public sector was to be no later than the tenth of each month. This Decree did not contain a similar article to that of section 3 above mentioned.

In the light of what has been set forth, there was no violation of the applications of Conventions Nos. 87 and 95 given the fact that in the Province of Entre Ríos public sector wages were due monthly (in the case of workers whose remuneration is calculated on a monthly basis) and in a period which was quite reasonable (no later than the tenth of each month). Moreover, in provincial Decree No. 411 currently in force there was no provision concerning non-payment for cessation of service, as stated by the complainant. Without prejudice to what has just been set forth, the period in question is limited according to the urgent economic and financial situation of the province (in this regard it should be noted that the Decree in question is no longer in force), and thus complies with the criteria concerning necessity and emergency set forth by the Committee of Experts and the Committee on Freedom of Association as well as to the jurisprudence of the national Supreme Court of Justice, to which previous reference has been made in note A.I No. 65 of 29.3.1995.

Concerning the comments of the World Federation of Trade Unions on the application of Convention No. 95 in the Province of Córdoba, the Government was forwarding the comments of the Under-Secretary of Labour of the Province of Córdoba in which the application of provincial Law No. 8.472 was presented in detail and updated. Likewise, it was communicated that the above-mentioned Law would definitely remain in force until 31 December of this year without the possibility of extension.

The 1995 financial year had been from the outset atypical and complicated. The financial crisis which started in Mexico during the last days of December 1994 profoundly changed the nature of financial developments in national, provincial and municipal public sectors. The subsequent constriction affected both the entry into the country of foreign capital - which, since 1991, had fed a sluggish economy - and the internal financial system, and by a combination of means created a double problem for the fiscal accounts for the three levels of government: it reduced tax receipts by practically eliminating access to internal and external credit. Moreover, there were institutional consequences: those elected in December of the same year had to take up their functions in July 1995.

The pursuance of the budget at the end of the last month prior to the recomposition of the governmental administration on 30 June 1995 revealed that 43 per cent of the budget credits were committed but only 21 per cent were effectively paid; this being the equivalent of 50 per cent of the sums committed and paid. This resulted in a delay of two-and-a-half months of the 13th month payment as well as in the payment of sums due to active and retired employees of the provincial state. This also resulted in generalized delays in the payment of suppliers, contractors and in the payment of municipal subsidies.

Similar delays have affected municipal employees, thus causing serious problems beginning in December 1991 which, combined with a budget imbalance from previous years, created a high debt level of the general government of the Province of Córdoba, which reached $1,199,800 as of 30 June 1995, and $1,292,800 on 31 July 1995; on this date liabilities reaching $662 million in floating debt, $117.9 million in short-term debt, $441.7 million in public sector debt and $71.2 million in other debts. The floating debt included $406.6 million for personnel, $118.7 million for suppliers, $42.5 million for contractors and $82.4 million in transfers.

Faced with this situation, the Executive adopted a series of measures aimed at reducing expenses, to increase receipts as well as the payment of the accumulated debt. With regard to the former measures, it should be noted that the reduction of expenses on capital goods represented, during the second half of 1995, only 1 per cent of what had been invested during the same period in the preceding year. Operating expenses were reduced by 47 per cent during the same period, as well as the ceilings in the emoluments of highest civil servants and magistrates. The number of ministries was similarly reduced from eight to four with a consequent reduction of secretariats, under-secretariats, etc. Concerning the increase in receipts, a flexible payment scheme for taxes and provincial taxes was implemented and the corresponding parts concerning income taxes were revised while an emergency increase of 25 per cent on the automobile tax was applied.

Moreover, and taking into account the high level of floating debt with personnel, suppliers, contractors, the municipalities, the totally rigid character of access to internal and external financing and the impossibility of receiving funds from the national Government, the provincial government had to develop its own financial mechanism to solve its problems and regularize the situation of payments for the provincial state. Thus, through an emergency economic/financial law, the Executive was authorized to issue bonds (CECOR) covering the provincial debt of Córdoba up to $800 million for a term of 24 months with 12 per cent interest. The validity of these certificates cancelled obligations of any kind with the provincial state companies and state banks.

During 1995, there was an issue of CECOR series "A" for a total of $400 million which was transferred to the provincial treasury as follows: $171 million in August, $80 million in September, $100 million in October, $7.06 million in November and $41.94 million in December. As a result of these figures, on 31 December 1995 the total series of "A" certificates had been transferred to the provincial treasury. In addition, in January 1996 $200 million of series "B" CECOR bonds with a lower face value replaced the series "A" because in 1995 there were problems in paying state employees, pensioners, etc.

In practice, the use of the CECOR not only solved the short-term debt problem of the provincial state, in particular the payment of salaries and pensions, but also had a dynamic impact on economic transactions within the province by supplying liquidity to a global market affected by the scarcity of funds (the "tequila effect"). To reach these goals, the provincial government developed a prudent policy concerning introducing the CECOR into circulation on the market so as to avoid macroeconomic alterations in the financial, commercial and tax system. It can be confirmed today that the said objectives have been reached in large measure and, in particular, the full acceptance by the Córdobaise population of the certificate cancelling the provincial government's debts. This was also accepted by state employees and moreover by private enterprises for the acquisition of all kinds of goods and services.

The payment of wages has generally been prudent, since the use (of CECOR) was limited to low-level emoluments, attributing 70 per cent of the receipts from the provincial state to the category of salaries.

It was particularly taken into account by the Government that the average cash salary is $398 ($588 including social contributions and pension funds) thus demonstrating that the payment of this sum in CECOR bonds only concerns the part in excess of $400; in this way, it is only the higher level staff who are better paid (some 20 per cent of all employees) who perceive part of their salary in the form of CECOR. Better still, it can be noted that, of 63,000 employees (18,000 administrative, 30,000 teaching staff and 15,000 police), more than 50,000 are paid their full salary in currency while the others only receive CECOR bonds for the part in excess of $400.

All of this has enabled a reduction of the debt between June and December 1995 for personnel of $431.4 million to $150.8 million, this balance corresponding to contributions due to other state organs so as to normalize the amounts collected for the employees.

All this was made possible by an enormous effort in favour of the situation of workers, as was evident because the total accumulated debt by the general administration on 31 July 1995 reached $1,495 million, which was reduced in December of the same year to $430 million. In the framework of this reduction, $280.6 million represented personnel expenses so that more than 60 per cent was earmarked for payment of past due wages. At the end of the year, the debt remained limited to $150.8 million representing social contributions and pension funds to other state organs so that the emoluments in currency for each employee were regularized and the situation has not subsequently deteriorated.

In addition, a Government representative said that she would endeavour to contribute to a better understanding of the meaning and legal nature of the social benefits governed by Decrees Nos. 1477/89, 1478/89 and 333/93, which had been the subject of the comments made by the Congress of Argentinean Workers (CTA). The objective of establishing the social benefits had been to soften the effects of the economic adjustments decided on by the national Government in view of the emergency economic situation experienced by the country. It was therefore a necessary, urgent and unavoidable measure to improve the nutritional situation of workers and their families. The measure also made it possible for employers to provide essential products voluntarily to families, or coupons for their acquisition. The measure therefore consisted of a social benefit of a non-remunerative nature.

In order to ensure that employers complied fully with the measure, and to ensure the possibility of administrative inspection with a view to preventing evasion of the obligations concerned, it had been laid down that these benefits would not exceed either 20 or 10 per cent of remuneration, according to whether the workers were covered by collective agreements. The benefits were not of a remunerative nature and could in no case be provided in the form of cash. In this way, enterprises could contribute to the well-being of the workers by assuming a delegated social function based on a modern concept of social justice. The State had determined clear rules so that employers provided the above social benefits without the risk of the arrangement being distorted.

The National Directorate of Labour Inspection in the Ministry of Labour and Social Security, as well as the General Fiscal Directorate of the Ministry of the Economy, had found that the above Decrees had been fully applied. No problems had been reported in the interpretation or in the level of the non-remunerative benefits provided. Nor had abuses been reported which might suggest that their application in practice involved any evasion of social security contributions.

Under the labour legislation, food vouchers were considered to be social benefits. The most recent interpretation of labour legislation, as well as the rulings of two Plenaries of the National Chamber of Labour Appeals, confirmed the following differences between remuneration and social benefits:

- it was in all cases obligatory for the employer to determine and pay remuneration, while the social benefit was optional;

- remuneration was an agreed compensation for work, while the social benefit was an advantage for employees;

- employees could dispose freely of their remuneration, while they had to accept or refuse the social benefit as it was agreed;

- remuneration was due only to the worker, while the social benefit was intended for both the worker and his family;

- a minimum level of remuneration was determined by law or collective agreement, while the social benefit had no such characteristic;

- remuneration differed according to the various categories of workers (and within the same category), while the social benefit was similar for all the workers of an enterprise;

- remuneration could only be interrupted during an employment relationship as an exceptional measure, while the social benefit was governed by the conditions under which it was established;

- remuneration must be paid in cash while benefits could be paid in kind;

- remuneration met the needs and wishes of the worker, while the social benefit was intended to improve the quality of life; and

- the sum received in respect of remuneration was calculated to take into account holidays and the annual additional payment, while social benefits were not included in that calculation.

Taking into account these arguments, which the ILO supervisory bodies had not yet been able to examine, it could be concluded in the opinion of the speaker that the national law and practice did not affect the terms or the spirit of the Convention. Nor could it be stated in this respect that the fact that the benefits provided for in section 1 of Decree No. 1477/89 applied to dependent employees was a determining factor in considering them to be components of remuneration under the terms of Article 1 of the Convention. The rate or maximum level of the social benefit varied according to whether the worker was covered by a collective agreement. As explained in the introductory clauses to Decree No. 1477/89, the objective was to provide employees covered by collective agreements with a higher level of the social benefit on the grounds that they were the ones most affected by the social and economic situation. The workers not covered by collective agreements were higher level or managerial employees in enterprises who therefore enjoyed a better standard of living.

The principal objective of the social benefits under consideration was to give workers the possibility of having access to essential food products, whereas benefits for family responsibilities were established under Act No. 18017. It was for this reason that the provision of social benefits in cash had been prohibited and a maximum limit had been set for their value, irrespective of the personal or family situation of the worker.

The fact that the provisions laid down that the amounts that the employer could apply for the provision of food products or vouchers for their acquisition could not exceed 20 or 10 per cent of the gross remuneration of the worker did not in any way imply that the level of benefits was proportional to wages. These maximum percentages were designed merely to facilitate the work of the inspection services. The provisions on social benefits formed part of the regulations designed to protect wages in view of the fact that they curtailed fraud by ensuring that any benefit that exceeded the concept of the social benefit was still covered by the provisions governing workers' remuneration.

With reference to the second point of the Committee of Experts' observation, she explained that the provisions of Decree No. 1639/93 covered the wage arrears owed to workers in the public service. Decree No. 483/95 sought to simplify the procedure for liquidating the above debt. In particular, in the case of debts that were liquidated by judicial means, the previous procedures had been replaced by a single instruction from the court to the debtor body or enterprise setting a time-limit of ten days for the submission to the Secretariat of Finance of the forms requiring the payment of the consolidated debt, irrespective of the stage reached by the internal administrative processes. The Debt Consolidation Department of the above secretariat had stated that almost all the judicially liquidated credits in cases in which the procedures had been complied with had been fully covered by the delivery of public debt bonds, which could be redeemed on the stock market and whose value was constantly increasing.

With regard to comments of the Union of United Maritime Workers (SOMU), the Ministry of Labour and Social Security had acted in accordance with its competence and responsibilities. The claims of the SOMU and the Centre of Masters of River Boats had been dealt with by the Directorate of Individual Labour Relations, which had ordered the enterprises concerned to pay the wage arrears due immediately. The National Directorate of Labour Policy had also intervened to record violations and penalize the enterprises that had not discharged their obligations. The representatives of the above workers' organizations had participated in the sessions of these meetings of the Tripartite Consultation Committee to Promote the Application of International Labour Standards, chaired by the Secretary of Labour that had been held on 23 April and 14 May 1996. Among other matters, the Committee had examined the observations of the Committee of Experts on the application of maritime Conventions, and particularly the observation concerning Convention No. 95. The record of the above meetings had been made available to the International Labour Standards Department for transmission to the ILO supervisory bodies. The Secretary of Labour had stated that if an administrative solution were not found notwithstanding the action of the competent authorities, it would be reasonable for the workers to have recourse to the judiciary, although no such legal action had yet been brought.

With regard to the comments of the Confederation of Educational Workers (CTERA) concerning Decree No. 5863/94 adopted by the government of the province of Entre Rios, she stated that, in accordance with the federal system, provincial governments enjoyed total autonomy to issue legal provisions applying to their own administration. For this reason, and as indicated in point 5 of the observation by the Committee of Experts, the national Government had transmitted the Committee's comments to the provinces concerned and their replies were reproduced in the written information provided above. In conclusion, she emphasized that the case concerned emergency measures of limited duration adopted at the provincial level which did not affect a substantial proportion of employees. An initial late payment of wages had already been regularized.

The Workers' members noted that, although the case involved a series of complicated measures, their effect was very simple. Some very obscure arguments had been advanced to endeavour to show that benefits which were intended to improve the life of workers and their families through the provision of food products were not in fact remuneration. However, they constituted compensation for work and were derived from an employment relationship. The Committee of Experts had concluded that there was indeed a connection between the benefits and the work performed or service provided by virtue of a contract of employment. The benefits constituted components of remuneration in the sense of Article 1 of the Convention and the Government should therefore be called upon to comply with the provisions of the Convention. With regard to the case of the educational workers, the Committee of Experts had recalled the maximum interval for the payment of wages and had requested the Government to adopt measures in accordance with Article 12(1) of the Convention. It had also requested the Government to provide information concerning the application of Article 12(1) in the maritime sector. Furthermore, the Workers' members noted that the wages of state employees in Cordoba had been paid in local government bonds. They emphasized the need to pay wages in cash and they urged the Committee to call upon the Government to find a solution that ensured that workers received the full wages due to them for the work performed.

The Employers' members observed that the case concerned the non-payment, late payment and deferred payment of wages. It was debatable whether the social benefits referred to by the Government representative constituted wages under the terms of the Convention. However, the very fact of the existence of a relationship with an employer suggested that the benefits fell within the broad definition of remuneration set out in the Convention. With regard to the repayment of the considerable state debt, the question arose as to whether the Government could speed up the process. In this respect the Employers' members noted the Government representative's assurances that the process would indeed be accelerated. The case also involved the very important issue of the deferred payment of wages, particularly in one province. No one disputed the fact that the wages had not been paid, nor that maritime workers were also affected by a similar problem. Article 12 of the Convention called for the regular payment of wages and the Employers' members therefore supported the request by the Committee of Experts for the Government to supply full particulars. With regard to the payment of wages in local government bonds, the Employers' members noted the detailed information provided by the Government representative, as well as the written information provided. However, they were not in a position to assess the information at the present time and believed that the Government should submit all the details in writing to the Committee of Experts so that it could re-examine the case. The aim in this respect was to achieve compliance with the Convention so that workers were paid within reasonable time-limits, and were not paid in government bonds.

The Workers' member of Argentina stated that the Convention was considered to be one of those relating to human rights. He recalled the various measures imposed upon wages in the public and private sectors as a result of certain policies which had resulted in a lowering and deterioration of workers' remuneration. As the Committee of Experts had done in point 1 of its observation, a link had to be made between social benefits and the legislation protecting remuneration. Unfortunately, the often uncontrolled extension of the application of these types of benefits raised a great deal of concern. This was an obvious reduction of labour costs and it should not in any way be used to affect the needs or rights of workers as, for example, when real wages were replaced by the coupons referred to. He believed that all payments exceeding the legislatively set minimum wage rates should be considered as normal remuneration, which should be subject to social contributions and taken into account for compensation, overtime payments and redundancy payments.

With regard to point 2 of the observation, he emphasized that the procedure in question was still being used in cases of legal orders for the payment of wage arrears and compensation for industrial accidents. The bonds that had been issued were being redeemed at 50 per cent below their face value, which resulted in a lowering of the living standards of the workers. Point 3 of the observation referred to the failure to pay wages as a sanction for a strike by educational personnel. This was an intimidatory measure imposed in a sector in which wages were low and late. He had thought that the payment of wages in the form of bonds was a practice that Argentina had abandoned in 1945. Nevertheless, bonds had been used in the public sector in various provinces for the payment of over 500,000 workers. The national and municipal governments had adopted a directive permitting a wage reduction of 15 per cent for public employees whose normal wages exceeded a specified minimum level. The judicial system had not given satisfaction to the claims made by the workers concerned. Nevertheless, for political reasons, certain sectors of the administration had been excluded from these measures.

On behalf of the Argentinean Municipal Workers' Union, which was represented at the Conference and which was part of the delegation of the Latin American Federation of Municipal Workers, the speaker reiterated the particularly difficult situation and sufferings of wage-earners in many municipalities of the country. They had to suffer reductions in wage levels as a result of nominal reductions involving, for example, the elimination of bonuses, or the shortening of holidays or of working hours. There had also been other losses, as job stability had disappeared entirely or had been seriously restricted. The same had happened to a certain number of workers in the banking sector.

In the specific case of workers employed in the maritime sector, fishing and internal navigation, failures to comply with the Convention, as alleged by SOMU and indeed by the speaker himself at a previous Conference, had continued and indeed had increased in number and in scope as a result of the deterioration of the situation in the sector and the lack of a proper effective labour inspection system, which the Committee itself requested be put in place. This situation was exacerbated because workers did not really have the possibility of claiming from employers - in this case, shipowners - that they meet their demands, because Argentinean ships tended to fly flags of convenience of distant countries, such as Cyprus, Liberia, etc., and this made it possible for shipowners to avoid legal procedures concerning these serious instances of non-compliance with the regulations. This was tantamount to the abuse of a legal norm and culminated in labour fraud. The repeal of Decree No. 817/92 had suspended and in practice terminated 62 maritime collective agreements, without the competent authority being able to re-establish collective bargaining in the maritime sector.

In conclusion, he stated that references to the responsibilities of the provinces were designed to divert attention from the role of the national Government, which had taken the decision to ratify Convention No. 95 and whose responsibility it was to guarantee full compliance with it. The Government had given greater priority to the economic aspects of structural adjustment than to the rights of workers.

The Workers' member of Uruguay recalled, as pointed out in the report of the Committee of Experts, that in certain regions of Argentina the workers in some sectors were paid in government bonds which were difficult to cash or were cashed in at half their value. These workers were paid late thus suffering a prejudice which corresponded to the profit made by state or private enterprises. This situation was aggravated by the non-observance of collective agreements since this sort of problem had been settled in several cases through the introduction of decrees, as was the case for example, with Decree No. 5863/94 of the province of Entre Rios. If circumstances were difficult, trade unions should have been consulted to reach an agreed-upon solution. Tripartite consultation which was the very basis of ILO procedures had thus been ignored. This situation in Argentina was all the more serious when it was the federal Government violating this fundamental principle of consultation.

The payment of wages in bonds or in kind also undermined the institution of social security since it resulted in a reduction of contributions. The elements mentioned in the report of the Committee of Experts were not the only ones since it was known that other complaints had been presented with respect to, for example, the unilateral reduction of wages of some workers in the banking sector.

The Committee should ask the Government to rectify these economic matters which reflected the most basic lack of respect for workers and indeed of trade union organizations.

The Workers' member of Pakistan expressed his concern at the non-payment of lawful wages in time. He stressed that it was the obligation of the Government to pay wages in accordance with principles agreed upon and not in terms of a bond which reduced real wages. Moreover, with regard to the distinction between the payment of benefits and wages, benefits were part of that remuneration and had to be paid regularly. This had not been done in this case.

The Workers' member of Argentina stated that this situation, which was common in the maritime and port sectors, had started five years ago when deregulation was imposed by Decrees Nos. 1772/91 and 817, 1264 and 1493 of 1992. This resulted in a serious violation of the fundamental rights of these workers. For more than five years the organization that the speaker represented had taken steps at all levels (of which two tripartite meetings one month ago had resulted in failure) against multiple pressures and injustices.

The failure to pay wages or the deferred payment of wages had been exacerbated by the fact that crew members, when claiming that their wages should be paid, were exposed to the threat of dismissal, in several cases without compensation or with a compensation less than what the law provided for; or if they initiated legal proceedings, the matter lasted three to four years. Moreover, they risked appearing on a blacklist as troublesome workers which caused them enormous problems when trying to find another job. Similarly, when their organization granted them assistance in the case of failure to pay wages, then those workers were progressively marginalized by most enterprises.

The speaker considered that immediate action should be envisaged to establish a mechanism which would guarantee justice and the respect of fundamental rights enshrined in Convention No. 95 to put an end to the situation of semi-slavery as a result of the establishment of such a system by Argentinian employers in the maritime sector despite the enormous profits they were making. Thus, the situation of the maritime worker was often reduced to that of a temporary worker with serious consequences resulting therefrom in the area of social security, notably with respect to obtaining a retirement benefit at the end of the worker's working life.

The Argentinian authorities should better control the situation and ensure that national legislation and international Conventions were complied with so that employers in the maritime sector respected the fundamental rights of maritime workers.

The Employers' member of Argentina stated that the discussion of Convention No. 95 involved three essential aspects: the question of social benefits paid with coupons, the deferment in the payment of wages in the maritime sector, and the way in which certain provincial governments have dealt with the problem of monetary debt and the wages of workers. The employers in the private sector were not concerned by this last aspect.

The system of coupons was conceived originally for nutritional purposes. While not wishing to address in detail the legal concept of remuneration, he pointed out that social benefits often did not have a direct relationship with the labour provided nor with the coupons handed out. The Employers considered that there was a dual system of control exercised by the labour inspection system and by the authorities. This kind of benefit had a negative effect on the system of social protection, which one hoped was transitory: it was an additional source of income for workers which did not entail an increase in labour costs.

The Government representative wished to recall that Convention No. 95 was not one of the core Conventions. This was not to say that this instrument was not applied for the protection of workers and to ensure compliance with international labour standards. The speaker deplored the fact that during their interventions, the Workers' members of Argentina had not mentioned the efforts made by the Government to remedy the situation in the provinces. As regards the payment of social benefits, these did not presuppose a reduction in remuneration. As for the payment of wages in bonds in the provinces, while this was not the ideal situation these bonds were nevertheless an instrument which could be used by workers as if it were cash. In conclusion, the speaker added that social benefits as well as the payment of wages in bonds were measures taken for reasons of economic urgency and were not in any way intended to affect the rights of workers.

The Workers' member of Greece recalled the principle that all work deserved remuneration. He stated that workers could certainly understand the problems encountered by many third world countries which were heavily in debt. However these problems could not be used as a pretext not to pay a wage for a service rendered. While he welcomed the fact that Argentina now had a democratic regime, he recalled that real democracy could not be conceived without democracy on the social and economic levels.

The speaker hoped that the Committee would address an urgent appeal to the Government in its conclusions so that workers in this country could in effect receive the wages to which they were entitled.

The Workers' members considered that there were two things that the Committee should insist upon. Since the Government had acknowledged that there were problems in terms of the whole compensation issue, the Committee's conclusions should recommend that these practices be ended immediately. Moreover, the Government should be asked to respond to the Experts' request for information on all points, because absence of that information meant that the Committee of Experts could not come to a conclusion. Finally, while Convention No. 95 was not a core Convention, it was none the less an important one which the Committee had addressed in virtually all of its sessions.

The Committee noted the detailed written and oral explanations from the representative of the Government, and took note of the ensuing discussion. With regard to benefits to improve the nutrition of workers and their families, under Decrees Nos. 1477 and 1478 of 1989, and Decree No. 333 of 1993, the Committee requested the Government to provide detailed information in its next report on all measures which it had taken or envisaged, in order to ensure that there was full compliance between the Convention and the law and practice in Argentina with regard to this type of benefit. With regard to the consolidation of the monetary debts of the State up to 1 April 1991, under the terms of Act No. 23982, the Committee requested that in its next report the Government comment on the question as to whether the said debts also affected wage arrears owed to workers in the public sector. The Committee further took note of the fact that several organizations of workers had referred to the application of this Convention, alleging late payment of wages or non-payment of wages in different provinces, and also with respect to the payment of wages in local government bonds by local government authorities. The Committee stressed that the application of the Convention must be ensured throughout the national territory. In view of the importance of the need to ensure wage payment for all workers, the Committee urged the Government to adopt all necessary measures to ensure that payment of wages was brought into conformity with the provisions of the Convention and further requested the Government to report on any progress made. The Committee took note of the information on legislative measures supplied by the Government which concerned the punctuality of payment of wages and the problem of payment of wages in local government bonds in the province of Cordoba and voiced the hope that the Committee of Experts would investigate this matter very carefully at its next meeting. Lastly, the Committee hoped that the Government would supply detailed information in its next report on the application of this Convention to the maritime sector. The Committee was concerned by the situation and hoped that the Government would take all necessary measures as soon as possible to ensure observance of the Convention in law and in practice.

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

The Committee notes the observations of the General Confederation of Labour of the Argentine Republic (CGT RA) and the Confederation of Workers of Argentina (CTA Workers), received in 2016.

Article 1 of the Convention. Components of remuneration. In its previous comments, the Committee noted the repeal of section 103 bis(b) and (c) of Act No. 20.744 on labour contracts (LCT), which defined food vouchers and food baskets as “non-remunerative” social benefits, and requested the Government to provide information on the ongoing legislative process of recognizing that the “non-remunerative” allowances provided for in section 103 bis of the LCT form part of wages. The Committee notes that the Government’s report refers to the ruling of the Supreme Court in Diaz, Paulo Vicente vs Cerveceria y Malteria Quilmes S.A., of 4 June 2013, to which the CGT RA and CTA Workers also refer in their observations. In this decision, the Court reiterated its previous position on the unconstitutionality of section 103 bis(c), and decided, with specific reference to Article 1 of the Convention, that the conclusion of unconstitutionality applied to a clause in an agreement that qualified as “non-remunerative” certain benefits granted by employers to workers covered by the collective agreement concerned. In its observations, the CTA Workers also indicates that the draft legislation submitted on this issue was not adopted. The Committee recalls that, under Article 1, all components of the remuneration of workers, however designated or calculated, are protected by the Convention (see 2003 General Survey on protection of wages, paragraph 47). Given that the social benefits provided for in section 103 bis of the LCT are granted to workers by employers for their services, the Committee considers that, for the purposes of the Convention, these benefits are a component of the remuneration of workers. Therefore, although the national legislation provides that such benefits are of a non-wage nature, they must be protected by the Convention. The Committee requests the Government to indicate the manner in which the protection established in the Convention is applicable to the benefits listed in section 103 bis of the LCT, for example with regard to their regular payment (Article 12).

The Committee also notes that the Government’s report refers to the proposed establishment of a committee to address issues arising in the ILO supervisory system. The Committee expresses the hope that, within this framework, constituents will find a suitable means of addressing the issues raised with regard to the application of the Convention. The Committee requests the Government to provide information on any progress in this respect.

Article 3. Payment of wages in legal tender. In its previous comments, the Committee noted the establishment of a monetary unification programme in 2003 to bring an end to the payment of workers’ wages in vouchers in provinces, and requested the Government to provide information on the results of this programme. The Committee notes the Government’s indication that, at present, the practice of the payment of wages in the form of vouchers no longer exists, and that there are no records of complaints in this regard.

Article 12(1). Regular payment of wages. In its previous comments, the Committee requested the Government to provide information on any ongoing difficulties regarding the regular payment of wages. The Committee notes the Government’s indication that there have been isolated cases of delays in the payment of wages and that such cases are in process of regularization.

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

Article 1 of the Convention. Definition of the term “wages”. Following up on its previous comments, the Committee notes the Government’s statement that the Bill which recognizes the wage nature of all “non-remunerative” allowances in the private sector is currently being reviewed by the Commission on Labour Legislation of the Chamber of Deputies. The Committee hopes that the new legislation – for which the General Confederation of Labour (CGT-RA) has expressed support – will soon be enacted and requests the Government to transmit a copy of the new legislative text as soon as it is adopted. In addition, the Committee would appreciate receiving up-to-date information on other points raised in past comments, including: (i) the situation with regard to the Bill to amend sections 120 and 147 of the Act on labour contracts on the elements of wages which cannot be attached; (ii) any developments in the situation concerning the payment of wages in the form of locally issued vouchers; and (iii) any persisting difficulties in the regular payment of wages in the public or private sectors.

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

Article 1 of the Convention. Definition of the term “wages”. The Committee notes that a Bill establishing the progressive elimination of “non remunerative” allowances in the private sector and their incorporation into the wages within a period of six months was recently approved by the Senate and is now pending discussion before the House of Deputies. Moreover, the Committee notes the communication of the General Confederation of Labour (CGT RA), dated 31 August 2011, in which the Confederation expresses its support for the aforementioned Bill. The Committee requests the Government to keep the Office informed of further developments in this regard and to provide a copy of the new legislation as soon as it is adopted. Furthermore, the Committee notes the CGT’s indication that recent jurisprudence has confirmed that all payments to a worker in exchange of his/her work – irrespective of their designation or attributed characteristics – form part of the wage.

However, the Committee notes that the Government once again fails to address the other points raised in its previous observation, namely: (i) the progress made in the negotiations to resolve the dispute between the Ministry of Health of the Government of Buenos Aires and the Federation of Professional Employees of the Government of the autonomous city of Buenos Aires; (ii) the situation with regard to the Bill to amend sections 120 and 147 of the Act on labour contracts on the elements of wages which cannot be attached; (iii) any changes in the situation concerning the payment of wages in the form of locally issued vouchers; and (iv) the current situation regarding wage arrears and other difficulties in the regular payment of wages which may persist in certain sectors or provinces. The Committee is therefore bound to renew its request for detailed information on these points.

Observation (CEACR) - adopted 2010, published 100th ILC session (2011)

Articles 1 and 12 of the Convention. Definition of the term “wages” and regular payment of wages. The Committee notes the Government’s reply to the comments of the Confederation of Workers of Argentina (CTA), dated 21 October 2009, concerning section 103bis of Act No. 20.477 on labour contracts and Decree No. 1347/03 of 12 December 2003. The CTA, and the Federation of Professionals of the Government of the Autonomous City of Buenos Aires, indicated that under section 103bis, referred to above, certain benefits in kind, classified as “social benefits”, are not considered to form part of the wage. Furthermore, Decree No. 1347/03 provides for a wage rise which is not classified as remuneration.

With regard to section 103bis of Act No. 20/477, the Committee notes that clauses (b) and (c) were repealed by Act No. 26.341 of 12 December 2007 and that, under section 3 of the latter Act, certain benefits enumerated in section 103bis have acquired the nature of remuneration. It further notes the Government’s indication that the benefits enumerated in the current version of section 103bis, although they are paid in the context of a professional relationship, are not related to the work performed or the service provided by the worker and are considered to be social security benefits intended to improve the living standards of workers and their dependants. The Committee also notes the ruling of the Supreme Court of Justice of 1 September 2009 which, based among other factors on the comments made by the Committee for many years, indicated that: (i) section 103bis(c), repealed during the course of the procedure, is unconstitutional; and (ii) that food vouchers are part of wages.

With regard to Decree No. 1347/03, the Committee notes the adoption of Decree No. 2005/2004 of 29 December 2004 which provides: (i) that the wage increase envisaged by Decree No. 1347/03 has acquired the nature of remuneration (section 6); and (ii) a new wage increase which is not classified as remuneration (section 1).

The Committee takes this opportunity to recall that, as indicated by the ILO Governing Body in 1997 when examining a representation on the “desalarization” policy pursued by a member State, the fact that a wage benefit, however it is termed, does not enter into the definition of wages contained in the national legislation, does not ipso facto constitute a violation of the Convention, provided that the remuneration or earnings due, payable under a contract of employment by an employer to a worker, whatever term is used, are covered by the provisions of Articles 3 to 15 of the Convention. With reference to paragraph 47 of its General Survey of 2003 on the protection of wages, the Committee therefore requests the Government to indicate the measures taken to ensure that any allowance which is of a non-wage nature under the national legislation is, in application of the Convention, covered by the protection afforded by national laws and regulations concerning wages.

Finally, the Committee notes that the Government has not provided any further information on the other points raised in its previous comments, namely: (i) the progress made in the negotiations to resolve the dispute between the Ministry of Health of the Government of Buenos Aires and the Federation of Professional Employees of the Government of the autonomous city of Buenos Aires; (ii) the situation with regard to the Bill to amend sections 120 and 147 of the Act on labour contracts on the elements of wages which cannot be attached; (iii) any changes in the situation concerning the payment of wages in the form of locally issued vouchers; and (iv) the current situation regarding wage arrears and other difficulties in the regular payment of wages which may persist in certain sectors or provinces. The Committee therefore requests the Government to provide detailed information on these points.

Observation (CEACR) - adopted 2008, published 98th ILC session (2009)

Articles 1 and 12 of the Convention. Definition of the term “wages” and regular payment of wages. The Committee notes that, in its reply to the observations made by the Federation of Professionals of the Government of the Autonomous City of Buenos Aires, the Government merely provides some information on the legal status of the federation but does not respond to the complaints concerning the bonuses which are not classified as wages. The Committee notes that a similar question was raised by the Confederation of Argentinian Workers (CTA), whose latest observations have so far received no reply. Specifically, the question relates to section 103bis of the Act on labour contracts, which does not consider certain benefits as wages and has already given rise to contradictory court rulings. The Committee therefore requests the Government once again to respond to the observations made by the Federation of Professionals of the Government of the Autonomous City of Buenos Aires and by the CTA, to send copies of any relevant court decisions and to keep the Office informed of the adoption of any draft legislation to partially repeal section 103bis of the Act on labour contracts.

Furthermore, the Committee would like to receive more detailed information on the other points raised in its previous comment, namely: (i) any changes in the situation concerning the payment of wages in the form of locally issued vouchers; (ii) the current situation regarding wage arrears or other difficulties in the regular payment of wages which would persist in certain sectors or provinces; (iii) the application of the Convention in practice, including, for example, official reports of the labour inspection services containing statistics on the number and nature of infringements reported with regard to wage protection.

Observation (CEACR) - adopted 2007, published 97th ILC session (2008)

The Committee notes the observations made by the Congress of Argentine Workers (CTA) on the application of the Convention, which were received on 12 September 2007 and transmitted to the Government on 21 September 2007. In particular, it notes the CTA’s comments relating to section 103bis of the Act on labour contracts, under the terms of which certain benefits in kind, classified as “social benefits”, are not considered as forming part of the wage. It also notes the CTA’s reference to the adoption of decrees and the conclusion of collective agreements providing for wage increases which are not considered as remuneration. The Committee further notes the CTA’s reference to a recent ruling by the labour chamber of the National Court of Appeal, which is reported to have found to be unconstitutional, as they are contrary to ILO Convention No. 95, the first paragraph and subsection (e) of section 103bis referred to above. The Committee further understands that the case law on this issue is not uniform. The Committee requests the Government to provide its comments in reply to the observations made by the CTA and to supply copies of any relevant court rulings handed down on this subject.

In this connection, the Committee refers to paragraph 64 of the General Survey of 2003 on the protection of wages, in which it emphasized that:

… Article 1 of the Convention is not intended to establish a binding “model” definition of the term “wages”, but to ensure that the real earnings of workers, however termed or reckoned, are fully protected under national laws in respect of the matters dealt with in Articles 3 to 15 of the Convention. As recent experience has shown, especially with regard to the “desalarization” policies practised in certain countries, the obligations deriving from the Convention with respect to the protection of workers’ wages cannot be bypassed by mere terminological subterfuges, but require the extended and bona fide coverage by national legislation of labour remuneration whatever form it takes.

The Committee also notes that a Bill to partially repeal section 103bis of the Act on labour contracts is currently being discussed by the Parliament. It requests the Government to provide full relevant information concerning the adoption of this text.

The Committee also notes the observations made by the Federation of Professional Employees of the Government of the Autonomous City of Buenos Aires in relation to the application of the Convention, which were received on 11 June 2007 and forwarded to the Government on 20 August 2007. It notes that this organization reports a collective labour dispute involving 4,600 workers in the health sector and the Ministry of Health of the Government of the City of Buenos Aires, which is reported to be refusing the claims made for a wage increase. The Committee further notes that the above organization is also claiming the conversion into wages of a number of bonuses which are not recognized as remuneration. The Committee notes that the issues raised in these observations are related to those referred to in the CTA’s observations concerning social benefits. The Committee requests the Government to provide its comments in reply to the observations made by the Federation of Professional Employees of the Government of the Autonomous City of Buenos Aires.

Furthermore, the Committee notes that a Bill to amend sections 120 and 147 of the Act on labour contracts in relation to the proportion of the wage which cannot be attached is under examination by the Parliament. It requests the Government to keep it informed of the progress made regarding the adoption of this text.

The Committee also requests the Government to reply to the following questions which were raised in its previous comment.

First, concerning the payment of wages in the form of locally issued vouchers, the Committee notes the indications in the Government’s last report that the issuing of vouchers, serving as wages in certain provinces in the country, has been interrupted. Moreover, a programme of currency unification has been established by Decrees Nos 743/2003 of 28 March 2003 and 266/2003 of 9 April 2003 so as to guarantee the circulation of a single national currency that is legal tender and to redeem the vouchers issued between 2001 and 2002 at the provincial level. The Committee requests the Government to keep it informed of any developments in this field and to indicate the proportion of vouchers that are still in circulation and the period envisaged for their redemption.

Secondly, as regards the deferred payment of wages, the Committee notes the information contained in the Government’s report in 2006 on the adjustment of the minimum wage and the rise in average wages over the past three years, which hint at a gradual return to normal in the payment of wages. The Committee requests the Government to specify whether all wage arrears have now been settled or whether certain sectors, branches or provinces continue to experience difficulties in paying wages regularly and, if so, to provide specific information on the number of workers concerned and the average delay in the payment of wage arrears.

Finally, the Committee notes the Government’s indications concerning the organization of the labour inspection services and the number of inspections carried out in 2005. The Committee requests the Government to continue providing general information on the application of the Convention including, for instance, extracts of official reports of the labour inspection services showing the number and nature of the infringements reported, copies of official studies relating to wage protection, information on the difficulties encountered in implementing the Convention, or any other information enabling the Committee to assess how the Convention is applied in practice.

[The Government is asked to reply in detail to the present comments in 2008.]

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

The Committee notes the information in the Government’s detailed report. It would nonetheless be grateful if the Government would elaborate on the following matters.

Article 3 of the Convention. Payment of wages in the form of locally issued vouchers. The Committee notes that, according to the Government, payment of wages in the form of vouchers issued in certain provinces has been stopped and a “monetary unification” programme has been set up by Decrees Nos. 743/2003 of 28 March 2003 and 266/2003 of 9 April 2003, to put into circulation a single national currency with legal tender and to take the vouchers issued in the provinces between 2001 and 2002 out of circulation. The Committee requests the Government to keep it informed of any developments in this matter and to indicate what proportion of the vouchers are still in circulation and the deadline for their collection. The Committee also notes the information supplied by the Government on the social benefits paid to improve the diets of workers and their families.

Article 12, paragraph 1. Deferred payment of wages. While noting the information on the minimum wage adjustment and trends in the average wage in the past three years, which hint at a gradual return to normal in the payment of wages, the Committee requests the Government to state whether wage arrears have now all been settled or whether certain sectors, branches or provinces continue to have difficulties in paying wages regularly and, if applicable, to provide specific information on the number of workers concerned and the average delay in the payment of wage arrears.

Part V of the report form. The Committee notes the information supplied by the Government on the organization of the labour inspection services and the number of inspections carried out in 2005. The Committee requests the Government to continue to provide general information on the application of the Convention including, for instance, extracts of official reports by the labour inspection services showing the number and nature of the infringements reported, copies of official studies relating to wage protection, information on the difficulties encountered in implementing the Convention, or any other information enabling the Committee to assess how the Convention is applied in practice.

Observation (CEACR) - adopted 2002, published 91st ILC session (2003)

With reference to its observation, the Committee notes the information supplied by the Government.

I.  Deferred payment of wages

1. The Committee recalls that in its previous comments it referred to non-compliance with Article 12(1) of the Convention which provides that wages must be paid at regular intervals. It pointed out in particular that in some provinces regular payment of the wages of public employees was subject to considerable delay. It took note of the efforts made by the Government to remedy the situation.

2. The Committee notes that, according to the most recent information sent by the Government, the country is undergoing a serious economic and financial crisis, reflected in the lack of external and internal credit, paralysis of banking activity and growth in unemployment. It also notes that to tackle the consequences of the crisis, one of which is payment of wages in instalments, a "Crisis Prevention Procedure" has been implemented which involves compulsory registration of enterprises intending to reduce or suspend staff. The aim of the procedure is to bring to light the real situation of enterprises and to embark on a dialogue with the unions with the Government taking part. According to the Government, complaints of delayed wage payments have been filed by unions in the aeronautical and transport sectors and public employees’ associations in the provinces. The Government indicates that as well as inspections, other ways and means have been sought to secure proper payment of wages by enterprises. They include the signing of agreements with passenger transport companies granting enterprises a special price for fuel provided they ensure job stability; the adoption of a decree extending deadlines for the payment of taxes by small and medium-sized enterprises if they buy inputs essential to production; the creation of a "universal subsidy" for heads of households (men and women) subject to prior registration of the employer in the programme, and of a wage subsidy or supplement to be borne by the employer in order to make up the wage fixed in the corresponding sectoral agreement.

3. The Committee is aware of the grave problems caused by the current economic and financial crisis in the country, which is causing many workers and their families severe hardship. In this context, the Committee notes of the information supplied by the Government’s report on initiatives to protect the wages of workers so that they can receive their wages at regular intervals. The Committee urges the Government to continue taking measures of this type and to provide information on any developments in the situation in its next report.

II.  Payment of wages in the form of legal tender issued locally

4. In the information sent to the Office, the Government expresses its concern that workers’ wages are being paid in the form of local legal tender which is valid only in the province issuing it. The Government indicates that the vouchers are to be withdrawn from circulation, in accordance with agreements concluded between the nation and the provinces, once agreements with the international credit institutions have been concluded.

5. The Committee hopes that in the very near future the economic and financial situation will make it possible for the Government to take the necessary steps to ensure that workers in provinces where wages are paid with local legal tender receive their wages in legal tender and not in substitutes therefor, thereby ensuring that full effect is given to Article 3, paragraph 1, of the Convention.

III.  Benefits to improve the nutrition of workers and their families

6. The Committee recalls that in its previous comments it referred to the problem of benefits granted to workers to improve their nutrition and that of their families. Since the Government does not refer to the matter in the latest information sent to the Office, the Committee is bound to request the Government to provide detailed information on this matter in the light of the comments it made in 2001, including information on whether employers pay social contributions in respect of these benefits.

Observation (CEACR) - adopted 2001, published 90th ILC session (2002)

The Committee takes due note of the information supplied by the Government in its report.

Deferred payment of wages. Further to its earlier observations regarding the persistent situation of wage arrears, the Committee notes the Government’s statement that wage debts have only been reported for local public employees in the province of Jujuy, and municipal workers of the city of Villa Mercedes in the province of San Luis. The Committee also notes the Government’s indication that, in other provinces such as Corrientes, where considerable delays in the payment of wages were previously observed, the situation has returned to normal and salaries are now being paid regularly. In several provinces, such as Chaco, a new arrangement for the payment of wages has been agreed upon whereby wage payments are spaced out over the first 15 or 20 days of each month so that low-pay workers are paid first while high-ranking civil servants and the governor are the last to receive their remuneration. While noting that progress is made as regards the settlement of wage arrears owed to workers in the public service, the Committee is bound to recall that the violation of the requirements of the Convention under Article 12(1) shall persist for as long as the Government has not taken effective measures for the outright elimination of the problem of wage arrears and the rapid settlement of any outstanding wage dues. It requests, therefore, the Government to continue to supply detailed information on the situation of wage payment in the provinces and the results achieved by indicating concrete and specific measures taken in this regard.

Benefits to improve the nutrition of workers and their families. The Committee has been requesting the Government for some years to reconsider its legislation so that the coverage of wage protection be extended to "social benefits" of "non-remunerative" character, as described under Act No. 24,700 of 25 September 1996, such as the benefits to improve the nutrition of the worker and his/her family. The Committee notes that, in its report of 29 June 2000, the Coordination of International Affairs of the Ministry of Labour and Social Security has referred to the incompatibility of the said Act with the Convention and has considered it necessary to suggest that the Congress should repeal the 1996 Act in order to bring national legislation into conformity with the provisions of the Convention. However, the Government offers no indication as to whether it intends to take any concrete action to this effect. The Committee stresses once again that under the terms of the Convention wage protection should cover all forms of remuneration or earnings, as defined in Article 1 of the Convention, thus including food coupons and other benefits aimed at improving the quality of life of the worker and his/her family. It reiterates the hope that the Government will take all necessary steps in the very near future to ensure full compliance with the requirements of the Convention.

The Committee would appreciate receiving up-to-date information on the application of the Convention in practice and the measures by which effect is given to its provisions in accordance with Article 16 of the Convention.

Observation (CEACR) - adopted 1999, published 88th ILC session (2000)

Further to its previous observation, the Committee notes the Government's report in particular on the following points and asks the Government to supply further information as required.

1. Regarding the question of the practical application of the Convention in the maritime sector, raised in the comments made by the Union of United Maritime Workers (SOMU), the Committee notes the Government's reference to collective agreement No. 307/99 applicable among others to the employees in question.

2. Settlement of the debts of the State. The Committee notes the Government's indication that the wage arrears owed to workers in the public service of the State, which were consolidated under Act No. 23982, had been all settled by means of payment by the coupon (BOCON).

3. Deferred payment of wages. In its earlier observations, the Committee noted the comments made by the Confederation of Educational Workers (CTERA) and the Union of Educational Workers of Rio Negro, concerning the deferred payment of wages which are due. The Committee notes the Government's statement that the wage payment to the local public employees is practically normal in the majority of cases, while delays have been found in the provinces of Jujuy, Corrientes and Tierra del Fuego, due to the local financial difficulty requiring the assistance of the national Government. The situation is improving slowly, and so is the situation in the province of Rio Negro, where however, no delay of wage payment is registered. The Committee requests the Government to continue to supply information on the situation of wage payment in the provinces, and any measures taken to ensure the regular payment of wages in accordance with Article 12(1) of the Convention.

4. The Committee notes that, in reply to the comments made by the Association of the Teachers of Santa Cruz (ADSC), regarding the system of allowance connected with attendance at work (bonificación por presentismo), the Government indicates that the situation has been normalized and no new complaint has been registered.

5. As to the observation made by the Union of Press Workers of Buenos Aires (UTPBA) regarding the Government's plan to repeal special legislation on journalists, the Committee notes the Government's statement that, even in the case of the abolition of the special rule, which is an issue for the future and remains therefore uncertain, the individual relations would continue to be protected under the Act on Labour Contract (No. 20744) which includes the protection of wages and is applicable to all workers. The Committee recalls that the UTPBA referred also to the situations which workers are unduly assimilated to autonomous entrepreneurs and thus excluded from the protection of wages under labour law. It requests the Government to bear in mind such concern over the situations where work may be allegedly carried out outside of contracts of labour, in future reporting on the application of Article 2 of the Convention concerning the scope of the Convention.

6. Benefits to improve the nutrition of workers and their families. The Committee earlier noted that the Decree concerning benefits to improve the nutrition of the worker and his family, on which the Committee had commented pointing out the need to protect such benefits as a part of wages, was repealed by Decree No. 773/96. Subsequently, Act No. 24700 of 1996 repealed this Decree and, by amending section 103bis of the Act on Labour Contract, re-established a concept of "social benefits" of "non-remunerative" character with a view to improving the quality of life of the employee and the family, which includes the food coupons and food baskets. The Committee notes the Government's repeated explanation that the remunerative character of these benefits under the repealed Decree No. 773/96 was criticized by both employers and workers because of the increase of employers' contributions and thus the labour cost resulting in the withdrawal of such benefits. According to the Government, the only way to reverse the situation is the adoption of another law by the Congress, which has not succeeded.

The Committee once again draws the Government's attention to the distinction between the protection that the Convention affords as regards wages and the question of calculating social security or other contributions. As regards the latter, the Committee reiterates that the definition or scope of wage as the basis for calculation of social contributions is outside the scope of this Convention. It requests the Government to re-examine the matter and to take all necessary measures to protect the payment of all components of remuneration as defined by Article 1, including benefits in the form of food or related coupons, as set out in Articles 4, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15 and 16 of the Convention.

7. Application in practice. The Committee hopes that the Government will continue to provide information on the application of the Convention in practice and measures taken to ensure it, in accordance with Article 16 of the Convention, including information on any difficulties encountered.

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

1. The Committee notes that, during its current session, some information, sent by fax, was received from the Government in reply to its previous observation. This was in addition to the information earlier supplied by the Government in reply to the question of the practical application of the Convention in the maritime sector, raised in the comments made by the Union of United Maritime Workers (SOMU), concerning a fishing and deep-freezing company. The Committee notes the Government's indication that, following the conclusion of a collective agreement, in the majority of the enterprises in the said sector, the problems of payment of wages have been resolved. The Government also states that the payment of a part of wages is still made only after finishing each catch (marea) as the definitive calculation is not possible before the end of the operation. The Committee requests the Government to continue to include information on the maritime sector and in particular the fishing subsector, when providing information on the practical application of the Convention.

2. Settlement of the debts of the State. The Committee noted in an earlier observation, Decree No. 1639/93 of 4 August 1993, which was intended to speed up the procedures for the settlement of debts of the State, including wage arrears owed to workers in the public service, up to 1 April 1991 which were consolidated under the terms of Act No. 23982 and recognized by the courts. It noted the indication of the Government that the application of this Decree had been accelerated and that the market value of the coupon (BOCON), which is used also for settling wage arrears, is higher than the nominal value. The Committee notes that, according to the Government, the situation has become normal and that there remains only some procedures to settle the debts caused by miscalculations. Once the procedures have been finished and when the debts are recognized, they are paid by BOCON. The Committee requests the Government to continue to supply information on the progress made in this matter as regards the settlement of the wage arrears owed to workers in the public service.

3. Deferred payment of wages. In its earlier observations, the Committee noted the comments made by the Confederation of Educational Workers (CTERA) and the Union of Educational Workers of Rio Negro, concerning the deferred payment of wages which are due. The Committee noted the Government's statement that in a large part of the provinces, the situation of wage payment in the public sector was slowly normalizing, as a consequence of measures taken by local administration to improve its financial situation, that in general the situations of deferred payment had been decreasing and that no new complaints in this regard had been registered.

The Committee notes the information supplied by the Government at the last minute, according to which the situation of wage payment by local public administration has become normal except for some delays noticed in the province of Jujuy. It requests the Government to continue to supply information on the situation of wage payment in the provinces, and any measures taken to ensure the regular payment of wages in accordance with Article 12(1) of the Convention.

4. The Committee notes that, since its previous session, certain workers' organizations have sent in new observations concerning the application of the Convention, viz.: (i) the Association of the Teachers of Santa Cruz (ADSC), in their communication dated 2 April 1998, mentions the system of allowance connected with attendance ("bonificación por presentismo"); (ii) the Union of Press Workers of Buenos Aires (UTPBA) refers to Convention No. 95 among others in their communication dated 16 June 1998 regarding the Government's plan to repeal special legislation on journalists. The Committee notes the UTPBA's reference to clandestine labour and the assimilation to autonomous entrepreneur, and requests the Government to refer to Article 2 of the Convention on the scope of the Convention. The Committee notes that the Government is preparing its comments on the observations made by these organizations. It hopes that they will be communicated in due course so as to be examined at its next session.

5. In the absence of information from the Government in reply to the following questions raised in the previous observation, the Committee is obliged to repeat it as follows:

Benefits to improve the nutrition of workers and their families. The Committee earlier noted Decrees Nos. 1477/89 and 1478/89 respecting benefits to improve the nutrition of the worker and his family, as well as Decree No. 333/93 enumerating the benefits that do not have the character of remuneration. It pointed out that these "benefits", however they are termed (bonuses, supplementary benefits, etc.), constituted components of remuneration in the sense of Article 1 of the Convention, and requested the Government to ensure that these benefits should be subject to the measures set out in Articles 4, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15 and 16 of the Convention. In the previous observation, the Committee noted that Decree No. 1477/89 was repealed by virtue of Decree No. 773/96 of 15 July 1996, which refers in the preambular part to the comments by the ILO supervisory bodies. The Committee notes from the information supplied by the Government, that by virtue of section 6 of Act No. 24,700 of 25 September 1996, the above-mentioned Decree No. 773/96 was repealed and that section 103bis of the Act on Labour Contract, as amended by the same Act, establishes a concept of "social benefits" of "non-remunerative" character with a view to improving the quality of life of the employee and the family, which includes the food coupons and food baskets up to the value of 20 per cent of the gross remuneration for workers covered by collective agreements and 10 per cent for others. The Committee notes with regret that this new legislation brings the situation back to that of discrepancy with the requirements of the Convention mentioned at the beginning. It notes the Government's explanation that the repealed Decree No. 773/96 was causing disadvantages to workers because employers stopped to grant such benefits as soon as they were considered part of wages, as this resulted in the increase of employer's contributions and thus the labour cost. The Committee draws the Government's attention to the distinction between the protection that the Convention affords as regards wages and the question of calculating social security or other contributions. As regards the latter, the Committee points out that the definition or scope of wage as the basis for calculation of social contributions is outside the scope of this Convention. It requests the Government to re-examine the matter and to take all necessary measures to protect the payment of all components of remuneration as defined by Article 1, including benefits in the form of food or related coupons, as set out in Articles 4, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15 and 16 of the Convention. Application in practice. The Committee hopes that the Government will continue to provide information on the application of the Convention in practice and measures taken to ensure it, in accordance with Article 16 of the Convention, including information on any difficulties encountered.

The Committee hopes that the Government will make every effort to take the necessary action in the very near future and communicate the relevant information in due time.

[The Government is asked to report in detail in 1999.]

Observation (CEACR) - adopted 1997, published 86th ILC session (1998)

Benefits to improve the nutrition of workers and their families. The Committee earlier noted Decrees Nos. 1477/89 and 1478/89 respecting benefits to improve the nutrition of the worker and his family, as well as Decree No. 333/93 enumerating the benefits that do not have the character of remuneration. It pointed out that these "benefits", however they are termed (bonuses, supplementary benefits, etc.), constituted components of remuneration in the sense of Article 1 of the Convention, and requested the Government to ensure that these benefits should be subject to the measures set out in Articles 4, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15 and 16 of the Convention. In the previous observation, the Committee noted that Decree No. 1477/89 was repealed by virtue of Decree No. 773/96 of 15 July 1996, which refers in the preambular part to the comments by the ILO supervisory bodies.

The Committee notes from the information supplied by the Government, that by virtue of section 6 of Act No. 24,700 of 25 September 1996, the above-mentioned Decree No. 773/96 was repealed and that section 103bis of the Act on Labour Contract, as amended by the same Act, establishes a concept of "social benefits" of "non-remunerative" character with a view to improving the quality of life of the employee and the family, which includes the food coupons and food baskets up to the value of 20 per cent of the gross remuneration for workers covered by collective agreements and 10 per cent for others.

The Committee notes with regret that this new legislation brings the situation back to that of discrepancy with the requirements of the Convention mentioned at the beginning. It notes the Government's explanation that the repealed Decree No. 773/96 was causing disadvantages to workers because employers stopped to grant such benefits as soon as they were considered part of wages, as this resulted in the increase of employer's contributions and thus the labour cost. The Committee draws the Government's attention to the distinction between the protection that the Convention affords as regards wages and the question of calculating social security or other contributions. As regards the latter, the Committee points out that the definition or scope of wage as the basis for calculation of social contributions is outside the scope of this Convention. It requests the Government to re-examine the matter and to take all necessary measures to protect the payment of all components of remuneration as defined by Article 1, including benefits in the form of food or related coupons, as set out in Articles 4, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15 and 16 of the Convention.

Settlement of the debts of the State. The Committee also noted in the earlier observation, Decree No. 1639/93 of 4 August 1993, which was intended to speed up the procedures for the settlement of debts of the State, including wage arrears owed to workers in the public service, up to 1 April 1991 which were consolidated under the terms of Act No. 23982 and recognized by the courts. It notes the indication in the Government's report that the application of this Decree has been accelerated and that the market value of the coupon (BOCON), which is used also for settling wage arrears, is higher than the nominal value. The Committee requests the Government to continue to supply information on the progress made in this matter as regards the settlement of the wage arrears owed to workers in the public service.

Deferred payment of wages. In its earlier observations, the Committee noted the comments made by the Confederation of Educational Workers (CTERA) and the Union of Educational Workers of Rio Negro, concerning the deferred payment of wages which are due. The Committee notes the Government's statement that in a large part of the provinces, the situation of wage payment in the public sector is slowly normalizing, as a consequence of measures taken by local administration to improve its financial situation, that in general the situations of deferred payment have been decreasing and that no new complaints in this regard have been registered.

The Committee notes that a further comment concerning several Conventions including this one was received in March 1997 from the Union of Educational Workers of Rio Negro. The said organization refers to the reduction of wages, which the Committee considers outside the scope of the Convention. A point is also raised about sums lacking the character of remuneration, paid monthly to compensate for the insufficiency of wages. The organization calls for their inclusion in the basis for calculations as regards social security. As mentioned above, the Committee considers that the question does not fall within the scope of the Convention.

Although noting that the Union of Educational Workers of Rio Negro does not mention the deferred payment of wages in the latter comment, the Committee requests the Government to continue to supply information on the situation of wage payment in the provinces, and any measures taken to ensure the regular payment of wages in accordance with Article 12(1) of the Convention.

Payment in local government bonds. The Committee also noted earlier the observations from the World Federation of Trade Unions, regarding state employees in Cordoba, on the non-payment of wages and the decision of the provincial government of Cordoba to pay their wages in local government bonds.

The Committee notes the Government's indication that, from January 1997, the threshold for payment of wages in CECOR (Certificates of Cancelation of Obligations of the Province of Cordoba) is raised from $400 to $2,000, which corresponds to the wage level of extremely high-level officials, and therefore teachers in the public sector no longer receive their wages in the form of these bonds.

Maritime sector. In reply to the earlier comments made by the Union of United Maritime Workers (SOMU), the Government states that it asked the SOMU to submit separate complaints so that relevant procedures could be followed, and a copy of the complaint made by SOMU to the Ministry of Labour and Social Security is attached to the Government's report. The Committee notes that the points raised in this document by the SOMU concerning a fishing and deep-freezing company, include one on the payment of wages, which is made only after finishing each catch (marea), therefore at the interval of 45 to 60 days. The Committee requests the Government to provide detailed information on measures taken to ensure the practical application of the Convention in the maritime sector (in particular Article 12(1) in the fishing sector) and on any difficulties encountered, including, for instance, extracts from official inspection reports and information on any infringements observed and sanctions applied with regard to the payment of wages.

Application in practice. The Committee hopes that the Government will continue to provide information on the application of the Convention in practice and measures taken to ensure it, in accordance with Article 16 of the Convention, including information on any difficulties encountered.

[The Government is asked to report in detail in 1998.]

Observation (CEACR) - adopted 1996, published 85th ILC session (1997)

The Committee notes the information supplied by the Government in reply to the comments made by several organizations of workers, as well as the statement made by the Government representative at the Conference Committee in June 1996 and the discussion which took place thereafter.

Benefits to improve the nutrition of workers and their families

The Committee previously noted Decrees Nos. 1477/89 and 1478/89 respecting benefits to improve the nutrition of the worker and his family, as well as Decree No. 333/93 enumerating the benefits that do not have the character of remuneration. It pointed out that these "benefits", however they are termed (bonuses, supplementary benefits, etc.), constituted components of remuneration in the sense of Article 1 of the Convention, and requested the Government to ensure that these benefits should be subject to the measures set out in Articles 4, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15 and 16 of the Convention.

The Committee notes that Decree No. 1477/89 was repealed by virtue of Decree No. 773/96 of 15 July 1996, which refers in the preambular part to the comments by the ILO supervisory bodies. It requests the Government to ensure that, since the benefits under Decree No. 1477/89 no longer exist, so long as any allowances or benefits granted instead of them fall within the scope of the Convention, such new allowances or benefits are protected in accordance with the provisions of the Convention.

Settlement of the debts of the State

The Committee also noted in the previous observation, Decree No. 1639/93 of 4 August 1993, which was intended to speed up the procedures for the settlement of debts of the State up to 1 April 1991 which were consolidated under the terms of Act No. 23982 and recognized by the courts. It notes the explanation by the Government at the Conference Committee that the provisions of the above Decree covered the wage arrears owed to workers in the public service, and that Decree No. 483/95 sought further to simplify the procedure of liquidating the above debt. The Committee requests the Government to continue to supply information on the progress made in this matter as regards the settlement of the wage arrears owed to workers in the public service.

Deferred payment of wages

In its previous observations, the Committee noted the comments made by the Confederation of Educational Workers (CTERA) and the Union of Educational Workers of Rio Negro, concerning the deferred payment of wages which are due. The CTERA mentioned in particular Decree of the Province of Entre Rios No. 5863/94 concerning deferred payment according to a plan prepared by the Secretariat of Finance taking into account the available financial resources.

The Government states that many provinces in Argentina were currently experiencing a serious financial crisis which affected their ability to fulfil their obligations. It explained that the Provincial Decree No. 5863/94 was meant to give priority to the payment of public servants in relation with other debts of the provincial government, and that this Decree imposed a deadline for effective payment of public sector salaries at the 15th day of the month following the one in which payment became due. The Government added that in any case it has been superseded by Decree No. 411 of 29 February 1996, under which the due date for payment of wages in the public sector was to be no later than the 10th of the month.

The Committee takes due note of the above information and requests the Government to continue to supply information on the situation in the provinces referred to, and in particular on the application in practice of the above Decree, and any measures taken to ensure the regular payment of wages in accordance with Article 12(1) of the Convention.

Payment in local government bonds

The Committee further noted the observations from the World Federation of Trade Unions, which refers to widespread protests of state employees in Cordoba over the non-payment of wages and the decision of the provincial government of Cordoba to pay their wages in local government bonds.

In response, the Government also referred to the profound financial crisis from the beginning of 1995 in the region. In Cordoba, provincial Act No. 8.472 was adopted in July 1995 to declare economic and financial emergency in the public sector of the province, which resulted in a delay in payment of sums due to employees. Among various measures taken in the circumstances, it was made possible to pay wages up to $400 in cash and the rest in CECOR (Certificates of Cancelation of Obligations of the Province of Cordoba), which are accepted for its nominal value in all the shops in the Province and also usable to pay debts to the provincial state (such as tax). According to the Government, the CECOR are bonds for a term of 24 months with 12 per cent of annual interest. It also adds that, since the average cash salary is $398 ($588 including social contributions and pension funds), the payment of wages in the form of CECOR was limited to higher level staff who receive the bonds for the part in excess of $400, and that 50,000 employees out of 63,000 thus receive their full salary in cash.

The Committee notes the above, and in particular the Government's explanation of the emergency nature and the limited use of the bonds. It recalls however that the payment of wages in local bonds is a measure in violation of Article 3 (payment of wages in legal tender). It requests the Government to continue to report on the development of the matter also in the light of Article 12(1) (regular payment of wages).

Maritime sector

In reply to the previous comments made by the Union of United Maritime Workers (SOMU), including reference to deferred payment and non-payment of wages in the maritime sector, the Government mentions various measures taken: the claims of the SOMU and the Centre of Masters of River Boats had been dealt with by the Directorate of Individual Labour Relations, which ordered the enterprises concerned to pay immediately the wage arrears due; the National Directorate of Labour Inspection had also intervened to record and penalize violations; the tripartite consultation committee to promote the application of international labour standards, which include SOMU representatives, examined the observations of the Committee of Experts on Convention No.95 among others.

The Committee notes the above indications. It also notes that the SOMU communicated since its last session observations on the application of Convention No. 81 on labour inspection and that the attached documents include copies of several claims made against the ship owner about non-payment or delayed payment of wages. The Committee therefore requests the Government to continue to provide detailed information on measures taken to ensure the practical application of the Convention (in particular Article 12) in the maritime sector, and on any difficulties encountered, including, for instance, extracts from official inspection reports and information on any infringements observed and sanctions applied with regard to the payment of wages.

The Joint Technical Commission of Salto Grande

Since its previous session, the Committee has further received observations from the Coordinating Officers of the Workers of Salto Grande. This organization points out that the Joint Technical Commission of Salto Grande, an international organ created by an agreement between Argentina and Uruguay for utilization and exploitation of River Uruguay, unilaterally reduced the wages of its employees by 10 per cent. The Committee notes the Government's response that the Joint Technical Commission of Salto Grande is an inter-state public organization, which as such is not a party to the Convention, and which, by virtue of section 4 of its Headquarters Agreement, approved by Act No. 21.756, enjoys immunity from judicial or administrative procedures of Argentina. The Committee notes that the Government communicated the workers' comments to the Technical Commission. In this circumstance, the Committee has no further comments towards the Government of Argentina.

Application in practice

The Committee hopes that the Government will provide information on the application of the Convention in practice and measures taken to ensure it, in accordance with Article 16 of the Convention, including information on any difficulties encountered.

[The Government is asked to report in detail in 1997.]

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

1. The Committee noted in its previous comments the observations made by the Congress of Argentinian Workers (CTA) related to Decrees Nos. 1477/89 and 1478/89 respecting benefits to improve the nutrition of the worker and his family, as well as Decree No. 333/93 enumerating the benefits that do not have the character of remuneration.

The Government stated in its previous report that the above Decrees are intended to improve the living standards of workers and their family while maintaining their remuneration unchanged. The level of the benefit could have been determined as a function of any other parameter than a percentage of the wage. Remuneration and benefits are two legally separate items: benefits do not correspond to the service provided and are related to the family situation of the worker. Moreover, they are of a non-obligatory nature for employers.

The Committee noted these indications. It notes that by virtue of Decree No. 1477/89, employers are encouraged to establish this system of benefits in exchange for a reduction in the social contributions that they have to pay. It also notes that section 1 of both Decrees No. 1477/89 and No. 333/93 state that benefits intended to improve the nutrition of workers and their families do not constitute remuneration for the purposes of labour law, social security law "or for any other purpose". However, it notes that: (i) section 1 of Decree No. 1477 applies in cases of a relationship between an employer and the staff; (ii) the rate of benefit differs according to whether or not the worker is covered by a collective labour agreement; (iii) there is no reference in any of the provisions of the above texts to the family situation of the worker (single, married with or without children); and (iv) the amount of the benefit is indexed to the wage.

From the above, the Committee believes that it can be concluded that there is a connection between the benefits designed to improve the nutrition of workers and their families and the work performed or service provided by virtue of a contract of employment. These "benefits", however they are termed (bonuses, supplementary benefits, etc.), constitute components of remuneration in the sense of Article 1 of the Convention. They therefore have to be subject to the measures set out in Articles 4, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15 and 16 of the Convention. The Committee notes in this respect that the protection envisaged under Article 7 of the Convention is provided in law by Decree No. 1478 above.

In the absence of further information in this regard, the Committee requests the Government to indicate the measures which have been taken or are envisaged to ensure that the benefits provided by virtue of Decrees Nos. 1477/89 and 1478/89 are covered by the protection established in Chapter IV (Protection and payment of remuneration) of Title IV (Workers' remuneration) of the Consolidated text of the rules governing contracts of employment.

2. The Committee also noted earlier the CTA's allegations that, two years after the adoption of Act No. 23982 respecting the consolidation of the monetary debts of the State up to 1 April 1991 after administrative or judicial recognition, no certificate had been issued recognizing that the debt was owing. The Committee noted that the Government referred to Decree No. 1639/93 of 4 August 1993, which is intended to speed up the procedures for the settlement of consolidated debt recognized by the courts. It again requests the Government to indicate whether the debt to which it refers in the above Decree also includes the wage arrears owed to workers in the public sector.

3. In its previous observations, the Committee further noted the comments made by the Confederation of Educational Workers (CTERA) and the Union of Educational Workers of Rio Negro, concerning the deferred payment of wages which are due.

The Committee notes that the Government has provided, in response to the latter comments, the explanations made by the Provincial Council of Education (of Rio Negro) on the situation. The Committee notes that the said Council considers that the main allegation was about the non-payment of wages by the provincial government for the days on which the education workers refrained from working and develops justifications, based on provincial court cases, for such non-payment corresponding to the days not worked.

The Committee recalls however that both the CTERA and the Union of Educational Workers of Rio Negro referred in their comments to a generalized failure by the provincial governments (of Entre Rios and of Rio Negro, respectively) to pay the wages due in time. The CTERA mentioned in particular Decree of the Province of Entre Rios No. 5863/94 concerning deferred payment. The Committee notes that by virtue of section 2 of this Decree, wages of public employees are paid according to a plan prepared by the Secretariat of Finance in relation with the available financial resources, but not later than the fifteenth day of the month following the one in which they become due. The Committee recalls that, under Paragraph 4 of Recommendation No. 85, the maximum intervals for the payment of wages should ensure that wages are paid not less often than twice a month at intervals not exceeding 16 days in the case of workers whose wages are calculated by the hour, day or week; and not less often than once a month in the case of employed persons whose remuneration is fixed on a monthly or annual basis. It therefore requests the Government to supply detailed information on the situation in question, in particular the application in practice of the above Decree, and any measures taken to ensure the regular payment of wages in accordance with Article 12(1) of the Convention.

4. Furthermore, the Committee noted in the previous observation comments made by the Union of United Maritime Workers (SOMU), including reference to deferred payment and non-payment of wages in the maritime sector. The Government responded in a communication dated 19 July 1995 stating that the questions referred to are not well clarified. In the meantime, SOMU sent to the Office another communication dated 14 August 1995 referring to the same Decrees (Nos. 1772/92, 817/92 and 1493/92) as mentioned in the previous comments. The Committee notes that these comments cover various issues which may have bearing on the application of several Conventions. As far as the protection of wages under this Convention is concerned, the Committee notes that these comments include allegation of non-observance of Article 12(1) of the Convention concerning the regular payment of wages (for example, the SOMU refers to delayed payment of the entitlements in the letter to the Minister of Labour dated 5 July 1995), although no further details on particular cases are supplied. The Committee therefore requests the Government to provide a general account of the practical application of the Convention in the maritime sector, and information on any difficulties encountered, including, for instance, extracts from official inspection reports and information on any infringements observed and sanctions applied with regard to the payment of wages.

5. Since its previous session, the Committee has further received observations from the World Federation of Trade Unions, which refers to widespread protests of state employees in Cordoba over the non-payment of wages and the decision of the provincial government of Cordoba to pay their wages in local government bonds. As the Government has not provided its observations on this issue, the Committee invites it to do so in the light of Articles 3 (payment of wages in legal tender) and 12(1) (regular payment of wages).

[The Government is asked to supply full particulars to the Conference at its 83rd Session.)]

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

1. In its previous comments, the Committee noted the observations made by the Unique Workers' Central (CUT) of Brazil concerning the payment of wages to certain Brazilian workers engaged in civil construction in Argentina, in relation to the application of Article 12, paragraph 1, of the Convention (regular payment of wages). The Committee notes the detailed information supplied by the Government on this subject. It also notes that the CUT withdrew its observations in a communication to the ILO Brazil Office dated 30 May 1994 in view of the improvements in the conditions of employment in the civil construction sector resulting from the joint activities of the Brazilian and Argentinian trade unions and the Brazilian Ministry of Labour.

2. The Committee also noted in its previous comments the observations made by the Congress of Argentinian Workers (CTA) relating to Decrees Nos. 1477/89 and 1478/89 respecting benefits to improve the nutrition of the worker and his family, as well as Decree No. 333/93 enumerating the benefits that do not have the character of remuneration.

The Government states in its report that the above decrees are intended to improve the living standards of workers and their family while maintaining their remuneration unchanged. The level of the benefit could have been determined as a function of any other parameter than a percentage of the wage. Remuneration and benefits are two legally separate items: benefits do not correspond to the service provided and are related to the family situation of the worker. Moreover, they are of a non-obligatory nature for employers.

The Committee notes these indications. It notes that by virtue of Decree No. 1477/89, employers are encouraged to establish this system of benefits in exchange for a reduction in the social contributions that they have to pay. It also notes that section 1 of both Decrees No. 1477/89 and No. 333/93 state that benefits intended to improve the nutrition of workers and their families do not constitute remuneration for the purposes of labour law, social security law "or for any other purpose". However, it notes that: (i) section 1 of Decree No. 1477 applies in cases of a subordinate relationship between an employer and the staff; (ii) the rate of the benefit differs according to whether or not the worker is covered by a collective labour agreement; and (iii) there is no reference in any of the provisions of the above texts to the family situation of the worker (single, married with or without children) and that, in contrast, the amount of the benefit is indexed to the wage.

From the above, the Committee believes that it can be concluded that there is a connection between the benefits designed to improve the nutrition of workers and their families and the work performed or service provided by virtue of a contract of employment. These "benefits", however they are termed (bonuses, supplementary benefits, etc.), constitute components of remuneration in the sense of Article 1 of the Convention. They therefore have to be subject to the measures set out in Articles 4, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15 and 16 of the Convention. The Committee notes in this respect that the protection envisaged under Article 7 of the Convention is provided in law by Decree No. 1478 above.

The Committee requests the Government to indicate the measures which have been taken or are envisaged to ensure that the benefits provided by virtue of Decrees Nos. 1477/89 and 1478/89 are covered by the protection established in Chapter IV of Title IV of the conditions respecting the contract of employment.

3. The Committee also noted the CTA's allegations that, two years after the adoption of Act No. 23-982 respecting the consolidation of the monetary debts of the State up to 1 April 1991 after administrative or judicial recognition, no certificate has been issued recognizing that the debt was incurred. The Committee notes that the Government refers to Decree No. 1639/93 of 4 August 1993, which is intended to speed up the procedures for the settlement of consolidated debt recognized by the courts. It requests the Government to indicate whether the debt to which it refers in the above Decree also includes the wage arrears owed to workers in the public sector.

4. Since its last session, the Committee has further received observations from the Union of United Maritime Workers (SOMU), the Confederation of Educational Workers (CTERA) and the Union of Educational Workers of Rio Negro.

With regard to the SOMU's observations, the Government refers to its reply in Case No. 1684 submitted to the Committee on Freedom of Association, which relates, among other matters, to Decree No. 817/92 referred to by the SOMU. The Committee notes that Case No. 1684 concerns the legislative provisions adopted respecting the renegotiation of collective agreements which are in force. It notes that the SOMU's comments also refer to many other problems, including the deferred payment and non-payment of wages, which are not being examined by the Committee on Freedom of Association. The Committee requests the Government to provide information on the application in practice of the Convention in the maritime sector, particularly with regard to the payment of wages at regular intervals and cases of the non-payment of wages.

The observations of the two organizations of educational workers refer to the deferred payment of wages which are due. The Committee requests the Government to supply information on this point in the light of the provisions of Article 12, paragraph 1, of the Convention (regular payment of wages).

5. The Committee hopes that the Government will provide information on the application of the Convention, in accordance with Article 16 of the Convention, including information on any difficulties encountered.

Direct Request (CEACR) - adopted 1994, published 81st ILC session (1994)

The Committee notes that the Union of United Maritime Workers (SOMU) refers, in its observations on the application of several Conventions, to the non-fulfilment of wage payment. It would be grateful if the Government would include in future reports information on the application of the Convention in the maritime sector.

Observation (CEACR) - adopted 1994, published 81st ILC session (1994)

1. The Committee notes the observations made by the Unique Workers' Central (CUT) of Brazil and by the Union of United Maritime Workers (SOMU) of Argentina on the application of the Convention in Argentina. The Government has not communicated its comments on these observations.

The CUT alleges, among other things, that some Brazilian workers engaged in civil construction in Argentina received their wages only on their return to Brazil and expresses concern on the possibilities of such occurrences in the framework of the MERCOSUR (Southern Cone Common Market). The Committee invites the Government to comment on this point in the light of Article 12(1) of the Convention (regular payment of wages).

2. The Committee also notes the observations made by the Congress of Argentinian Workers (CTA) on the application of several Conventions, in which CTA refers to Decrees Nos. 1477 and 1478 of 1989 and No. 333 of 1993, and to Act No. 23.982 of 22 August 1991.

The Committee notes that Decrees Nos. 1477 and 1478 establish the social benefit (assistance to the family food basket and food vouchers) for the worker and his family. The amount of the basket or the voucher which the employer provides to the worker under these rules cannot exceed 20 per cent of the gross wage, and this benefit is not considered as a part of the remuneration, according to section 105bis of the rules governing employment contracts approved by Act No. 20744, as amended by section 1 of Decree No. 1477. Section 1 of Decree No. 333 of 1993 enumerates the benefits, including those under Decrees 1477 and 1478/1989, that do not have the character of remuneration. And it provides that these benefits cannot be provided as a substitute or an advance of remuneration. The Committee recalls that the definition of the term "wages" under Article 1 of the Convention covers remuneration or earnings, however designated or calculated, capable of being expressed in terms of money and fixed by mutual agreement, that Article 3 prohibits wage payment in the form of vouchers, and that Article 4 permits the partial payment of wages in kind only under certain conditions. It requests the Government to supply information on the application in practice of the above-mentioned Decrees in the light of these provisions of the Convention.

The Committee also notes the CTA's allegation that, two years after the enactment of Act No. 23.982 concerning the consolidation to the national State of monetary debts up to 1 April 1991 after administrative or judicial recognition, no certificate recognizing such a debt has been handed over. The Committee invites the Government to provide its comments on this question with particular reference to any debt owed to workers in the public sector as their wages.

3. The Committee is also addressing a direct request to the Government concerning the observations made by the Union of United Maritime Workers (SOMU).

[The Government is asked to report in detail for the period ending 30 June 1994.]

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

The Committee notes the observations submitted by the United Trade Union of Education Workers of Buenos Aires (SUTEBA) concerning Provincial Decree No. 2.202 of 3 August 1992 which establishes a monthly bonus and an hourly bonus for teachers in the province of La Plata, which is paid according to the punctuality and attendance of each teacher.

The Committee notes that according to section 2 of the above-mentioned Decree, the bonus is not part of the wage and cannot be taken into account in calculating other benefits and, consequently, is not subject to the deductions for social security provided for in the legislation or to trade union check-off, and shall not be used as a basis for any other type of calculation. The Committee recalls that the definition of the term "wages" in Article 1 of the Convention covers remuneration or earnings capable of being expressed in terms of money and fixed by national laws, which are payable for services rendered or to be rendered, however such remuneration may be designated or calculated. The bonuses established by the above-mentioned Provincial Decree therefore fall within the scope of the Convention.

The Committee notes that, in accordance with the provisions of Provincial Decree No. 2.202, except in the cases listed in section 3, the bonuses are not paid in the event of absences or lateness being recorded during the calendar month, which is the equivalent to a deduction from the wage. It notes that such deduction is permitted under conditions and to the extent prescribed by national laws in accordance with Article 8 of the Convention which, unlike Article 10 in respect of attachment or assignment, does not provide that wages must be protected against deductions to the extent deemed necessary for the maintenance of the worker and his family.