Employment Policy Convention, 1964 (No. 122) - Peru (Ratification: 1967)

Individual Case (CAS) - Discussion: 1998, Publication: 86th ILC session (1998)

The Government representative declared that the methods to promote productive and freely chosen employment should be adapted to the conditions in the country as provided for in Article 2 of the Convention. In this respect, studies had been carried out in Peru by the Minister of Labour which indicated that there were three main causes for the present employment situation: (1) Peru had been exposed to a demographic explosion in the seventies and the early eighties, but the demographic policies implemented by the Peruvian Government had recently been successful in curbing this development; (2) inappropriate policies had resulted in weak economic growth in the country and in a dramatic increase in poverty; and (3) the regulatory framework for wages was unsuitable and had not stimulated any growth of structured employment in the country for almost 20 years. Against this background, the Government had adopted a substantial package of economic policy measures which were aimed at promoting private investment in highly labour-intensive sectors and at increasing substantially the level of growth in the country. Accordingly, the Minister of Labour had implemented programmes to promote employment, in particular for the groups mostly affected by unemployment and underemployment such as young persons and women with limited means. Moreover, due to the devastating effects of the passage of "El Niño", the country was engaged in a reconstruction process to reactivate the economy through the creation of new employment. All these elements clearly demonstrated the weight that the Peruvian Government gave to the question of full employment in the context of its general policy. In addition, it should be noted that the new Minister of Economy in Peru, who had been appointed less than a week ago, had officially declared already at his first press conference that his Administration had set out, as a matter of priority, to resolve the fundamental problem of unemployment which could be contained due to the process of reconstruction of the national infrastructure damaged by the "El Niño" phenomenon.

In the past, a spokesperson for the Workers' members had recalled in this Committee that the objective of full employment should be part of economic and social policies and not only of labour market policies. An effective application of this principle was not clear-cut for countries which were confronted with obstacles such as structural adjustment, debt servicing and transition. This underscored the need for increased international cooperation and for the taking into account by international financial institutions of the social dimension. The Government shared these views and stressed the importance of the globalization of the economy in which all countries, rich or poor alike were taking part.

As regards the professional integration of young people, it should be emphasized that the agreements on vocational training were aimed at improving access to the structured labour market for young persons with limited means by way of a process combining training and professional practice. This process should, on the one hand, be responsive to the requirements of national production mechanisms, and on the other, contribute to raising the level of competence and efficiency of professional training. This was accomplished by a closer interaction between the training institutions and the needs of the production sectors which require labour. At issue was not to discover or invent anything new but to be responsive to the needs and to rely on the elements on which highly technically developed countries with comparatively lower levels of unemployment relied. The programmes for youth employment implemented in Peru were fundamentally different from those in other countries due to the adaptations required by the specificities of the country.

The Trade Union of Civil Construction Workers of Lima and Balnearios contended that the "flexibilization" of labour law carried out in Peru since 1991 had had a major effect of increasing insecurity and jeopardizing the rights of workers without leading to the creation of new jobs. The speaker clearly and unequivocally rejected these contentions. In Peru, as in other countries faced with serious problems of unemployment and underemployment, labour legislation and, more generally, the entire economic and social policy of the Government, was aimed basically at the creation of conditions required for the promotion of private investment. Thereby, and led by the private sector, new jobs could be created. Between 1991 and 1996, the modernization of the public service had resulted in a decrease of employment in the public sector from 865,000 to 645,000, while at the same time the general labour market had expanded by the creation of more than 900,000 jobs. Accordingly, the modernization of industrial relations required the adoption of a regulatory framework sufficiently flexible to favour a real expansion of the labour market. This permitted enterprises to increase their levels of production which would attract private investment and favour the creation of new jobs. One part of this policy consisted in legally providing for various types of contracts and different forms of mediation. This mechanism favoured both the insertion of workers into enterprises and the internal mobility required in this new economic context. However, the implementation of this new framework for employment in no way constituted a lack of recognition of the rights of the workers. Workers should be informed of their rights. Therefore, Peru has decided to provide advisory services to workers free of charge. The Minister of Labour was fully aware of the importance of reinforcing the services which controlled the application of labour standards. To the extent that it had become imperative to reinforce these services, he had subjected them to a new legislative framework characterized by an emphasis on prevention and advice rather than sanctions. As regards the reduction of the level of unemployment and underemployment, it should be noted that the structural reforms which had been implemented as of 1990, including the modernization of labour legislation, had yielded positive results. The level of unemployment had gone down from 9.6 per cent in 1992 to 8.4 per cent in 1997. Although this level remained too high, it was well within the regional average. Studies conducted by the ILO on this subject demonstrated that during the first semester of 1987, the average level of unemployment in Latin America was 10 per cent, while the weighted average in Peru was 7.6 per cent. This was explained by the fact that Peru generated jobs at an annual rate of 3.4 per cent. Thus, between 1991 and 1996, close to 1 million jobs had been created in the urban sector. The main beneficiaries were women as more than 60 per cent of these new posts had been filled by women. In the capital, where a substantial percentage of the economically active population lived, the number of persons fully employed had increased from 2,300,000 in 1990 to 2,800,000 in 1996.

In its report, the Committee of Experts stated that it was particularly concerned by the lack of consultation with the social partners on matters of employment policy. The view of the Government in this respect is clear. In the 1980s and the beginning of the 1990s, Peru had experienced a severe economic and social crisis which had created the unemployment situation and levels of poverty which already had been outlined. In 1990, the Government took a series of political, economic and social measures with a view to rectifying this difficult situation. In 1993, constitutional reforms were required in order to consolidate the progress made. The citizens were consulted on this subject by way of a referendum in which more than 90 per cent of the voters participated. A large majority of them approved the reforms. In 1995, a sweeping majority of Peruvians voted in favour of re-electing the current President and of continuing to apply the economic and social model which undoubtedly had been successful in pulling the country out of the serious crisis it was going through. The Government therefore considered that there was a social consensus in favour of the current economic programme. The Government representative emphasized that the country had suffered from the consequences of the economic and social crisis as well as its negative repercussions at the social and employment levels.

The Workers' members thanked the Government representative and recalled that the Committee had already discussed the application of this Convention by Peru in 1994. The Committee of Experts had formulated, this year, important observations on the basis of the information provided in the follow-up of the conclusions and recommendations of 1996 adopted by the tripartite committee of the Governing Body to examine the representation submitted by the trade union organizations (CUT) and (CLAT) under article 24 of the ILO Constitution. If this Committee decided to discuss this case once again, it was because the Government had not taken the measures requested in the Committee's conclusions of 1994 in order to put the legislation and practice in conformity with the Convention and to implement the recommendations adopted by the Governing Body. The situation in employment and the state of social dialogue in the country raised concerns and showed no improvement, according to the Committee of Experts' observation and other ILO sources. In its report, the Government referred to certain signs of improvement in employment which were however limited exclusively to the capital of Lima. The Committee of Experts also noted that the Government did not communicate the results of the national inquiry in employment undertaken in 1996. The statistics at the ILO's disposal showed that a large part of the active population continued to be engaged in the informal sector, the part of which in total non-agricultural employment rose by 6 per cent between 1990 and 1996 and attained 57.9 per cent in 1996. This increase was due to the proliferation of micro-enterprises characterized by low productivity and precarious conditions of employment.

As concerned the existing labour market policy programmes, particular attention had to be paid to the young people. The tripartite Committee of the Governing Body expressed its deep concern over the possible results of these programmes; according to the ILO data, the level of unemployment among young people increased from 4.9 per cent in 1991 to 19.1 per cent in 1996, showing that the programme of vocational training for the young people established by the law on the promotion of employment did not produce the desired effects. Indeed, this law was concerned mainly with diminishing the cost of labour by means of extending an apprentice wage to young workers aged 18 to 25 years (21 years previously). The maximum percentage of the apprentices in an enterprise was raised to 30 per cent which made it impossible to provide effective vocational training to each of them. At the same time, as highlighted by the tripartite Committee, the duration of training lasting up to 36 months could be justified for workers of such an advanced age only if they were receiving highly specialized skills. It was therefore necessary to insist, following the opinions of the tripartite Committee and the Committee of Experts, that the Government ensured that such training contracts were aimed at effective and durable insertion of workers into suitable employment and should not be misused, and that measures taken to this effect should be made known. As regards labour contracts in special enterprises and under special conditions, which were also foreseen by the legislation on the promotion of employment, the Government should be urgently asked to explain the measures taken to show that they permitted to create new employment, rather than redistribute the existing employment. Information had already been requested on this point and the Government was expected to reply. By making "flexibilization" of the labour law the principle instrument of its employment policy, in the situation where over one-third of workers in the formal sector were employed without labour contracts and in very precarious conditions, the Government threatened the necessary social cohesion indispensable to make the economy efficient. It failed to pay attention to the provision of Article 1, paragraph 3, of the Convention which emphasized the relation between the objective of full employment and other economic and social objectives, as well as to those of Article 2, which required that employment policy should be integrated into a coordinated economic and social policy.

The most important failure of the Government to fulfil its obligations under the Convention concerned total absence of social dialogue, whereas Article 3 required consultation of social partners on questions of employment policy. The Committee of Experts noted that the Government had made no progress in establishing consultative commissions in the employment service. This Committee had also noted that same absence of social dialogue in its conclusions of 1994, and could now but observe the absence of any signs of amelioration, which was particularly alarming at the time when a profound reform of labour law was undertaken in the pretended aim to promote employment. The Government had to adopt the necessary reforms so as to ensure true consultations, as required by the Convention. The Committee should repeat its preoccupation already expressed in its previous conclusions. The Government should be asked to provide all the information requested by the Committee of Experts on each of the points mentioned.

The Employers' members noted that, in its latest observation, the Committee of Experts reported a certain improvement of the employment situation in Peru. The labour market remained, however, seriously affected by structural problems, such as the share of the informal sector which, by its very nature, was difficult to assess. Employment in the informal sector could, however, have positive effects if it became a step towards economic independence for those concerned. The Committee of Experts recalled, quite rightly, that pursuant to the Convention, employment policies should not be carried out independently, but be integrated in a general policy. The Convention left it up to the member States to define such policies. That was why the Committee of Experts in their comments did not focus on conformity with the Convention, but rather on requests for supplementary information or on clarification regarding different aspects of these policies. The Committee had therefore requested information on the implementation of a programme for the promotion of small enterprises which apparently targeted towards the informal sectors and it inquired what results had been achieved by this programme. It was also interested in the various measures for the training and employment of young people requesting the Government to ensure that they contributed to increasing their possibility for a lasting integration into employment of the young people. This question should however be approached with a sense of realism in the context of a situation of structural underemployment: the young people who benefited from these contracts were no doubt in a situation which was comparatively more favourable than the situation of those who had not had this possibility for training and employment. The Committee noted that the adaptation of labour law was an important element of the employment policy; in this respect it referred to the "flexibility" which could result in a weakening of workers' rights without creating new jobs. Article 2 of the Convention provided in this respect that employment policy should be implemented "by such methods and to such extent as may be appropriate under national conditions". It was only in the context of the application of Article 3 that it was clear that the Government had not fulfilled its obligation to consult the representatives of the Employers and the Workers as regards the employment policy; in addition, it had not either set up the consultative committees to the employment services required by Convention No. 88. It was therefore appropriate yet again to remind the Government of its obligation to consult with the social partners.

The Worker member of Peru noted that a representation had been submitted against the Peruvian Government concerning Convention No. 122 on employment policy, which Peru had ratified in 1967. With reference thereto, he felt obliged to emphasize that the response by the Government did not correspond to the reality. It was not true that there was a significant increase in the proportion of regular employment in the total number of jobs, a decrease in the level of unemployment or underemployment, and an increase in real salaries. On the contrary, the employment policy of the Peruvian Government had increased unemployment and rendered more uncertain the few employment opportunities still remaining in the country. The 1991 Promotion of Employment Act (Act No. D.L.728) had resulted in a massive decrease in employment opportunities and had legalized arbitrary dismissals, a practice which was contrary to the Constitution. Thanks to that instrument, the employers could brandish the threat of dismissal and cause the workers to leave their jobs before being dismissed, which deprived them of the right to be reinstated. Several cases confirmed these facts. The case of the Empresa Telefónica del Perú was pathetic. Seven thousand workers were made to resign and those who refused were dismissed. The same was the case in the electrical, municipal and construction sectors. Having thus been freed of their employees, the employers took on these same workers under subcontracting agreements and had them carry out the same work for a third or a quarter of the salary previously paid. These workers did not have the right to join a union, nor to benefit from social security, nor to benefit from any of the labour rights that were recognized in Peru or by the parties to regular employment contracts. They were hired via the intermediary of cooperatives of workers or temporary employment agencies, under apprenticeship contracts for young people, or under professional training contracts. Enterprises could have up to 90 per cent of the total workforce employed under all sorts of subcontracting agreements. The speaker could therefore reaffirm that the Government did not contribute to the creation of new employment and that it had increased employment insecurity. For example, it had not authorized the creation of consultative committees which could contribute to the development of appropriate employment policies. The Government's absence of a democratic approach to these matters was also noted. In addition, workers were never consulted by the Government. There was no dialogue with the workers, nor any application of tripartism. The workers therefore supported the complaints mentioned above. They requested that the Peruvian Government be provided with the technical assistance necessary to modify its employment policy. In order to examine the complaints, the workers requested that a Commission of Inquiry be sent as soon as possible to Peru with a view to examining the serious violations of trade union rights resulting from the employment policy and the extreme employment flexibility that the Government had instituted.

The Government representative took note of the comments and views expressed during the discussion and undertook to transmit the request for information to his Government.

The Committee noted the oral information provided by the Government representative and the subsequent discussion. It recalled that the Committee of Experts had been commenting for several years on the impact of the provisions of the employment promotion legislation on the quantity and quality of jobs available to the various categories of the active population, as well as on the measures which should be taken to ensure the consultation of employment policy required by the Convention. Although fully aware of the particular constraints relating to the implementation of employment policy in the country, including the significant share of informal employment, the Committee recalled that under the terms of the Convention the measures to be taken to promote full, productive and freely chosen employment had to take into account other economic and social objectives, and be kept under review in the framework of a coordinated economic and social policy. The Committee considered that the effects of applying the employment promotion legislation should be carefully assessed with a view to making the necessary adaptations. In particular, the Committee emphasized that it was the responsibility of the Government to ensure that measures to promote the employment of young persons did not lose sight of their objective which was the effective and lasting integration of the persons concerned into suitable employment. With reference to its previous conclusions, in which it emphasized the fundamental importance that it attached to employers' and workers' organizations being fully associated with the formulation and implementation of employment policy, the Committee was bound to note with concern the absence of new initiatives to fulfil this essential requirement of the Convention. It expressed the firm hope that the Government would take without delay, appropriate legal and practical measures for the social partners to be consulted on the measures to be taken to promote employment. Finally, the Committee urged the Government to supply, in its next report, detailed information on all the questions raised by the Committee of Experts. The Committee firmly hopes to be in a position to note, in the very near future, a real progress.

Individual Case (CAS) - Discussion: 1994, Publication: 81st ILC session (1994)

The Government supplied the following information:

In its 1994 observation, the Committee of Experts on the Application of Conventions and Recommendations requested the following:

1. Detailed information on programmes implemented under the new legislation, and on the results obtained, particularly taking into account that, as the Government recognizes, these measures were limited for the time being because of the economic recession.

A. The youth labour training programme

The objective of this programme is to provide theoretical and practical knowledge of work to youths between the ages of 16-21, for the purpose of integrating them into economic activity in a specific occupation. In this way, enterprises or firms whose workers are in the private sector labour system are able to enter into Youth Labour Training agreements, which have a duration of no more than 18 months, and are not subject to the labour stability law; they also receive a financial subsidy of no less than the minimum living wage, and their numbers cannot exceed 15 per cent of the total personnel of the enterprise, including permanent employees or those under any type of contract.

The youth labour training agreement is in writing and contains the following information:

(a)name or name of firm of the individual or legal entity which sponsors the labour training;

(b)name, age and other personal information concerning the youth receiving the training;

(c)occupation that is the subject of the specific training;

(d)monthly financial subsidy amounting to no less than the minimum living wage;

(e)reasons for the amendment, suspension or termination of the agreement.

Youths that are subject to the labour training programme shall be registered in a special register, for which the enterprise is responsible, and authorized by the competent office of the Ministry of Labour and Social Development. Since its creation in October of 1990, there have been 3,596 such agreements.

B. Preoccupational internship programme

The purpose of this programme is to provide guidance and technical and occupational training to students and graduates of any age of universities and higher level institutes, either public or private, which provide specialized or higher level training in the areas corresponding to their academic training. Preoccupational internships are carried out under an occupational training agreement between the enterprise or firms whose workers are subject to the private sector labour system and the student, with the authorization of the teaching institution to which he or she belongs. The preoccupational internship agreement is in writing and made known to the competent office of the Ministry of Labour and Social Development, and the institution which is training the trainee. Similar to the youth labour training programme, the preoccupational internship programme does not establish an employment relationship, the subsidy which the enterprise grants to the trainee is not less than the minimum living wage, and as it is not remunerative in nature, it is not subject to deductions nor to any payment by the enterprise on behalf of the beneficiary for contributions to the Peruvian Social Security Institute, FONAVI, SENATI or any similar body. Since its creation in October of 1990, there have been 18,916 such agreements.

Metropolitan Lima: Youth labour training programme and

preoccupational intership programme, Octobre 1990-March 1994

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Programmes No. of No. of No. of

firms agreements agreements

registered received concluded

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Youth labour

training 85 3 596 1 967

Preoccupational

internships 502 18 916 1 635

Both agreements 276 - -

Total 863 22 512 3 602

Source: Ministry of Labour and Social Development, National

Employment and Youth Labour Training Administration.

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C. Independent employment and micro-enterprise programme "PRODAME"

Through this programme substantial and adequate support is granted to micro and small enterprises, as it is a sector that potentially can reactivate labour.

The objectives of the programme are:

- to stimulate the creation of sources of employment for people who are unemployed or underemployed through the formation of micro and small enterprises;

- to formalize and legalize micro and small enterprises so that they have access to economic and financial means of the formal system;

- to reduce the time for and cost of forming micro and small enterprises, by simplifying administrative procedures and the signing of Inter-Institutional Cooperation Agreements;

The following benefits are granted by the programme:

- legal advice for the formation of the micro or small enterprises;

- preparation of the constitutive document and lawyer's signature at no cost;

- 50 per cent discount of the notary's tariff, under an agreement with the College of Notaries;

- advice on obtaining its unified registration;

Since its creation in November 1990, PRODAME succeeded in forming 3,371 new economic entities, 41.2 per cent in the commercial sector, 33.6 per cent in the service sector and 25.2 per cent in industrial activities.

2. Information on measures taken to collect statistical data on not only the urban but also the rural and national labour markets, which are necessary, as Recommendation No. 122 recalls, as a basis for the general and specific measures to be taken in the framework of employment policy.

Statistical data on the labour market is obtained through inquiries carried out by the Minister of Labour and Social Development which include the following: domestic inquiry, wages and salaries inquiry, and monthly variation in employment inquiry.

Domestic inquiry

The objective of this inquiry is to gain information on developments and trends regarding the labour force through basic characteristics such as: levels of employment, income, occupational groups and categories, areas of economic activity, education, migration, principal characteristics of the urban informal sector, information on the structure of the economically active population by areas of residence, and other information referred to on the use of labour. This inquiry is carried out at the level of Metropolitan Lima in a sampling of approximately 2,000 homes, involving interviews with about 6,000 persons aged over 14. Geographic coverage includes the area of Metropolitan Lima, whose framework for sampling includes 48 districts constituting the Province of Lima and the Constitutional Province of Callao. The fulfilment of the domestic inquiry has been programmed for the national level, as the first phase has already been carried out at the level of the 13 principal cities of the country, comprising the "Updating of the Sampling Framework".

Monthly variation inquiry

The purpose of this inquiry is to determine trends in changes in the demand for labour in three sectors of the economy: industry, commerce, and services, and to determine the causes of increases or decreases in the number of workers as well as the effect of specific legal provisions relating to employment. This study comprises a survey of all enterprises employing more than 100 workers in the manufacturing, commercial and services sectors of Metropolitan Lima: it is carried out on a monthly basis by sending inquiry forms to the enterprises through the Postal Service.

Salaries and wages inquiry

This inquiry obtains information about trends in nominal and actual salaries and wages, to determine the purchasing power of remuneration, the trends and distribution in respect of occupational groups and categories, the extent to which workers are subject to collective bargaining, shift work and hours of work, as well as the characteristics of workers. This study is carried out on a bi-monthly basis and involves about 550 enterprises, with information collected from approximately 5,000 workers, including executives, employees and labourers. The coverage of the sampling framework for enterprises includes all private enterprises employing ten or more workers who annually submit their payrolls to the Ministry of Labour and Social Development, at the level of Metropolitan Lima.

3. Information on regional, social and economic plans and programmes to promote employment as well as on the situation, levels and trends in employment in the other departments of the Republic.

With regard to regional socio-economic plans and programmes for employment promotion, a "public employment service programme" has been prepared. This programme was prepared to decentralize intermediary labour market programmes at the level of the principal cities of the country, under programmes to increase employment and as part of the labour market regulation policy.

Some of the principal objectives are:

- to implement a quick computerized system for managing employment in the Regional Labour and Social Development Administrations, through the "Integrated Employment Management System of Peru";

- to establish an integrated system to act as an intermediary in the labour market at the national level, seeking to maximise the hiring of workers through interrelationships among the placement offices at the national level;

- to provide an intermediary service for offering and requesting employment in order to place the worker requiring a job suited to his aptitude, ability and knowledge with employers requiring such workers in order to fill given vacancies;

- to provide guidance to future and present workers in order to achieve the best use of their aptitudes and abilities in an occupation;

- to study the structures and characteristics of the labour market, for the purpose of using this information for the guidance and better employment of the labour force.

With reference to the circumstances, levels and trends in employment in the remaining departments of the Republic, it is to be noted that information on this matter will be obtained through the domestic inquiry at the national level in 1994, as this had not been carried out in previous years because of budgetary restrictions.

4. Information on how representatives of the persons affected, particularly representatives of employers and workers, are consulted on employment policy, indicating, in particular, whether such consultations are extended to representatives of other sectors of the economically active population, such as the rural and informal sectors.

Within the framework of employment policy, an evaluation is being carried out of programmes that have been developed, taking into account the opinions of the beneficiaries of the programmes, for the purpose of proposing necessary measures.

In addition, a Government representative stated that, for well-known reasons of terrorism and drug trafficking, which forced many farmers to move to safer areas, it had not been possible to compile more complete information on the rural sector, notwithstanding the fact that in October 1993 all the regions of the Republic were sent directives on promotion of employment and vocational education, as well as forms for the compilation of statistical data so that the central Government could centralize and analyse this information and subsequently take the most suitable decisions for each region. Some regional governments in their internal organizational structure in the labour and welfare sector had omitted to include offices of employment and vocational training, while in other regions, such as Loreto, they did not become operational. In March 1994 national restructuring and rationalization of the regional labour directorates was undertaken with special emphasis being placed on the creation and/or setting into operation of employment and vocational training offices, which covered until now the regions of Andrís Avelino Cacares, Grau, La Libertad, Chavin and Nor-Oriental del Maranon. In the current month such regions as Inka and Josí Carlos Mariategui also would be covered. In the restructured regions it was decided to establish Regional Commissions for Employment Promotion which should include representatives of employers' organizations, professional bodies, the Ministry of Labour and trade unions. So far such commissions had been set up in Grau and La Libertad, but no central trade union organization at the federal level had yet applied for membership; it would appear that they were either not represented or only very slightly represented at the regional level.

With regard to Article 3 of the Convention, he stated that the Government was complying with its requirements at the sectoral level. Given the difficult situation in his country, the problem of unemployment and underemployment had reached an alarming level. The relevant sectors of the central Government were continually meeting with the trade unions to coordinate policies which would suit their interests. The Ministry of Labour and Social Welfare in this connection played the role of coordinator between trade unions and other involved Ministries of the central Government. At the moment such meetings were organized between the Federation of Construction Workers and the Ministries of the Executive, Transport, Communications, Housing and Construction, as well as between the Federation of Bank Employees and the Ministry of Economy and Finance.

The Workers' members referred to the Government's report on the Convention, which was dealt with in the report of the Committee of Experts, and they appreciated the additional written information submitted by the Government representative. They considered that the situation concerning employment and social protection as well as the conditions of work and social dialogue were troubling. In previous years, the Committee of Experts formulated observations concerning this matter on the application of Convention No. 88. The Workers' members also based their considerations on an assessment of employment policy in Peru. It was worrisome that the Government did not recognize the role of social dialogue in this area. They considered tripartism to be a handicap, while the experts had emphasized for many years the value of a social dialogue that was as broad as possible, including consultations with representatives from the informal and rural sectors. It must be borne in mind that 75 per cent of the people were underemployed. The written information submitted by the Government was insufficient, as there was no concrete information concerning the labour market situation and the survey could not be considered a true organized social dialogue. Structural adjustment programmes should not be applied to the detriment only of the poorest people. The costs and social advantages of this process must be equitably distributed. Pursuing these objectives must be a priority not only for the Government but also for other international organizations such as the International Monetary Fund and the World Bank. The employment programmes were insufficient. The objectives of full employment and of social protection were not contradictory. The latter reinforced the social and economic fabric and permitted a stimulation of demand and therefore growth. It consolidated social stability and cohesion of the country. However, the Government only considered it to be a significant obstacle to its employment policy. Whatever the economic problems faced by the country, employment policies must not consider social protection to be a major obstacle. The costs of structural adjustment must be equitably distributed, and a social dialogue must be promoted.

The Employers' members stressed that, in examining the application of this Convention, this Committee must recognize that full employment did not exist in any country. The problems in Peru were serious, as indicated by the report of the Committee of Experts and the information provided by the Government representative. The Government representative admitted that underemployment and unemployment had now attained worrisome proportions and called attention to the Employment Promotion Law of 1990. The experts recognized that this Act had introduced a range of positive measures, in particular the promotion of vocational training, especially for young people. Employment programmes had been established but they could not be implemented due to a lack of funds. Like other countries, Peru had very few statistics. However, such information was important not only to assess the situation but also for the development of policies and programmes. With full awareness of the facts, according to the Government representative, these problems had arisen because until very recently individual provinces had a greater degree of administrative independence but, in the future, it should be easier to obtain good information, although probably not from the rural areas. The Government representative also mentioned the problem of terrorism in his country, which was only getting worse. The Employers' members considered that one could not have an isolated employment policy but rather an overall economic policy which took account of the many interactions in the economy. Employment policy could only be successful if overall economic policy was successful. Consultation with the various social partners was absolutely necessary. This was not just a requirement of the Convention, but it had always been considered a sensible and useful approach. Successful policies required that the Government reached a consensus with all parties concerned. Such consultations with the informal sector amounted to a significant problem. They had difficulty imagining how such consultation could be carried out with such workers. They felt that the Conference Committee should encourage the Government to make every effort to comply with the Convention in full and take all necessary measures to implement sound employment policy.

The Workers' member of Peru referred to the Government's statement that its youth training scheme was intended to provide theoretical and practical training for young people between 18 and 21 years of age. She stressed that, from the point of view of the Peruvian workers, the Employment Promotion Act had only served to increase unemployment and badly paid underemployment. In Peru the age of majority was 18 and the work done by the young people who participated in this programme mainly had permanent jobs pertaining to the principal activities of major companies. This Act made it possible for these companies to fill vacant posts without making contributions to social security, the housing fund and other benefits which the employers called "anti-technical", and left the workers hired under this system with no occupational accident benefits. She insisted that this system did not create employment, but allowed companies to hire workers cheaply to fill permanent posts without offering them any employment stability and leaving them totally unprotected. She added that this Act was passed only in consultation with the employers because tripartism did not function in her country. She concluded by requesting that the conclusions mention that the workers wished to be consulted on matters relating to employment policy in her country.

A Government representative of Germany wished to refer to a specific problem with the observation of the Committee of Experts: "with regard to the measures to make the labour market more flexible, which constitute a large section of the measures set out in the Employment Promotion Act (and which the CGTP criticizes in the above-mentioned communication), the Committee would like to draw the Government's attention to certain provisions of related international labour instruments that provide for the protection of workers against the use of contracts which aim to avoid the protection prescribed by the legislation (see Article 2, paragraph 3, of Convention No. 158 and Paragraph 3 of Recommendation No. 166, concerning termination of employment, 1982) - both of which are referred to in the 1991 presentation of the objectives of the Employment Promotion Act". The speaker said the situation was similar to that discussed by this Committee in connection with Spain under Convention No. 158. In dealing with this case, the Committee of Experts referred to Convention No. 122 when they were interpreting other Conventions. In the passage quoted above, they seemed to interpret Convention No. 122 on the basis of Convention No. 158. The problem was that Peru had not ratified Convention No. 158, which appeared to be an attempt to compel Peru to abide by the obligations of a Convention which it had not ratified. The speaker expressed serious reservations concerning this procedure.

The Government representative stated that he had taken due note of the comments made in different declarations and assured this Committee that the concerns expressed would be communicated to the authorities of his country, which could then provide, as soon as possible, the relevant responses to the ILO.

The Committee took note of the written and oral information provided by the Government representative and of the report of the Committee of Experts. The Committee noted, as did the Committee of Experts, that a certain number of legislative measures have been promulgated which should make it possible to ensure the application of the Convention. The Committee emphasized the crucial importance of consultations with the national organizations of employers and workers in order to counter economic and social problems as well as to formulate and to implement an active employment policy as a major goal in the framework of a coordinated economic and social policy. The Committee expressed the hope that the Government would take all the necessary steps in the near future in order to bring legislation, and above all practice, into conformity with the Convention, and that it would be able to provide complete and detailed information on the progress achieved.

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

The Committee notes the observations of the Autonomous Workers’ Confederation of Peru (CATP), received on 3 September 2018, and the Government’s replies to these observations, received on 30 October 2018.

Articles 1–3 of the Convention. Active employment policy. Participation of the social partners. The Committee notes the Government’s indication, in reply to its previous comments, that the Ministry of Labour and Employment Promotion (Ministry of Labour), in the context of the various employment strategies and programmes which have been implemented, has established various objectives, including the following: promoting formal jobs with access to labour rights and social security coverage, enhancing employability and promoting self employment for young persons, strengthening the tripartite National Labour Council, and also building skills and creating employment opportunities for persons in vulnerable situations (particularly women victims of gender violence and persons with disabilities) and unemployed or underemployed persons. The Government refers to the implementation of various programmes, including the Impulsa Perú national programme (for the creation of job opportunities), which promotes employment by enhancing skills and increasing the employability of unemployed and underemployed persons and persons at risk of losing their jobs. The Government also refers to the implementation of the Trabaja Perú programme (for the creation of inclusive social employment) with a view to creating durable quality employment for unemployed and underemployed persons in urban and rural areas living in poverty and extreme poverty, through the assignment of unskilled labour to public investment projects relating to basic social and economic infrastructure. The programme beneficiaries are women heads of household, young persons and persons with disabilities living in poverty or extreme poverty. Furthermore, the Government reports on the drawing up of a draft “National green employment plan”, whose objective is to promote the creation of decent jobs involving the sustainable use of natural resources and improvement of the environment, including socially vulnerable groups. Furthermore, employment centres provide personalized advisory and skill development services free of charge for jobseekers. As regards the measures taken to reduce the rate of informality in employment, the Government refers to the adoption of the “Sectoral strategy for occupational training 2018–21”, which includes the application of incentives to enable access to formalization and compliance with the legislation, awareness-raising regarding the benefits of formal employment and the establishment of the Formaliza Perú centre, which enables access to public and private services facilitating access to formalization. The CATP, for its part, states that such measures are insufficient, since formal sectors with high rates of informality already exist, such as road transport and urban transport in general (99 per cent of workers are not in official company registers). The CATP indicates that, since the Ministry of Labour does not have sufficient resources to monitor compliance with measures relating to formalization, there are many informal workers in formal enterprises who do not enjoy statutory social benefits or minimum wages. As regards labour market trends, the Government states that in 2017 there were 236,365 men and 177,915 women who were economically active in private enterprises employing between two and ten workers under formal employment conditions. The Government adds that the rate of formality was 13.4 per cent (11.9 per cent for men and 16 per cent for women). Lastly, the Committee notes the Government’s indication that the “National employment policy” was discontinued under Supreme Decree No. 032-2018-PCM23 of March 2018. The Government adds that the Government’s “General policy” up to 2021 was adopted, that includes among the general policy focus on the formulation of the “National employment policy”, with a particular focus on promoting the creation of formal, quality employment for young persons. The Committee notes that the CATP claims that the social partners have no participation in the formulation of employment policy and are not consulted on its essential components. The Committee requests the Government to continue providing detailed, up-to-date information on the measures taken or contemplated to achieve the objectives of the Convention, particularly on the manner in which these have enabled beneficiaries (in particular women, young persons and persons with disabilities) to secure full, productive and lasting employment. The Committee also requests the Government to continue providing information on the measures taken or contemplated to promote labour formalization, and also their impact. In addition, the Committee requests the Government to continue providing up to date statistical information on labour market trends, particularly figures for the active population and the employment and unemployment rates in both the formal and informal economies, disaggregated by sex and age and, if possible, by urban and rural areas. The Committee further requests the Government to provide detailed information on the consultations held with the social partners concerning the matters covered by the Convention.

Categories of workers in vulnerable situations. In its previous comments, the Committee asked the Government to provide information on measures adopted or envisaged to improve the employability of persons belonging to groups in vulnerable situations, including persons with disabilities, older workers and indigenous peoples. It also asked the Government to provide information on the impact of the project to improve the employability of pallaqueras (women who collect remnants of gold after it has been mined and sifted). The Committee notes that the Government refers to the formulation of a draft “National plan for productive self-employment”, which seeks to promote highly-productive self-employment and formality for the creation of decent work. In this context, a joint working group has been set up, in which the Ministry of Labour and the Single Confederation of Workers (CUT) participate to propose mechanisms for the promotion and formalization of productive self employment. The Committee also notes the CATP’s concerns regarding the small number of persons with disabilities working in the public sector and raises this issue in its observation on the Vocational Rehabilitation and Employment (Disabled Persons) Convention, 1983 (No. 159). Lastly, the Government reports on the adoption of the “Entrepreneurship-building action plan” for pallaqueras or their children in the provinces of San Antonio de Putina, Sandia and Carabaya (Puno), the objective of which is to enable such workers to engage in formal business without any environmental impact through the development of entrepreneurial capacities, advice and technical assistance regarding the development of business plans. However, the Government indicates that so far the action plan has not been implemented since no budget has yet been allocated to it. With regard to the promotion of employment for indigenous peoples, the CATP states that no measures have been adopted in this regard and that jungle deforestation and pollution of the rivers and lakes of indigenous communities are driving the population into illegal mining or deforestation in other areas. The Committee observes that the Government does not include any information in its report on measures taken or contemplated in order to improve the employability of older workers and indigenous persons. The Committee therefore once again requests the Government to provide detailed, up-to-date information on the measures taken or envisaged to improve the employability of persons in vulnerable situations, including older and indigenous workers, including the measures taken as part of the “National plan for productive self-employment”. The Committee also requests the Government to provide information on the impact of these measures. The Committee further requests the Government to send information on the status of implementation of the “Entrepreneurship building action plan” for pallaqueras or their children and the impact thereof. With regard to persons with disabilities, the Committee refers to its observation on Convention No. 159.

Youth employment. The Committee notes that the Government, in reply to its previous comments, provides statistical information to the effect that in 2017 there were 4,594,592 economically active young persons, of whom 1,219,492 were waged employees with formal status (43.4 per cent). The Government indicates that it is continuing to implement the Jóvenes Productivos national youth employment programme, the objectives of which include developing and strengthening the labour competencies of young persons living in poverty or extreme poverty, facilitating their access to the labour market and supporting youth entrepreneurship. The programme has two lines of action: skills development for both employment and self-employment. The Government indicates that 6,912 young men and 6,084 young women benefited from this programme between 2016 and June 2018. The Government indicates that it has drafted a “National youth employment plan”, whose purpose is to promote decent, productive employment for young persons, the employability of young women workers, the entrepreneurial capacities of young persons, and the social integration of groups of young persons facing poverty and social exclusion. The Government indicates that, in April 2016, it joined the “Youth action plan” of the Organisation for Economic Co-operation and Development (OECD) for tackling the crisis in youth employment and the transition of young persons to the labour market. The Government refers to the implementation since 2017 of the Fortalece Perú programme, which is valid for five years and whose objective is to improve and expand employment centre services for placing young persons from various urban areas in the country in formal employment. However, the Committee notes that the CATP claims that the measures implemented by the Government to promote youth employment only have a temporary impact. The CATP points to the high rate of informal employment and the lack of occupational training for young persons. In particular, the CATP indicates that young persons are more at risk of engaging in informal employment than adults and that over half of young professionals are working in occupations which do not correspond to their level of education. Lastly, the CATP points out that no account has been taken of the impact on the labour market of technological developments or of the labour migration of young persons. The Committee requests the Government to continue providing detailed, up-to-date information, disaggregated by sex and age, on the impact of the adopted measures on the creation of opportunities for productive and lasting employment for young persons, especially those promoting formal employment for young persons.

Coordination of education and technical and occupational training measures with employment policy. In its previous comments, the Committee asked the Government to provide information on the impact on job creation of measures to coordinate national employment policy and vocational training policy. The Committee notes that the Government refers to the signing of a new institutional cooperation agreement on 24 April 2017 between the Ministry of Labour, the Ministry of Education and the Peruvian Institute of Business Administration (IPAE) concerning ongoing work to strengthen the Ponte en Carrera education and employment observatory. The Government adds that since the launch of the observatory’s online platform in June 2016, a total of 855,617 users were recorded by August 2018. Moreover, the Vocational Guidance and Occupational Information Service (SOVIO) at the Ministry of Labour provided vocational and occupational guidance free of charge for 162,522 young persons in the 16–24 age group between January 2016 and June 2018. In this regard, the CATP alleges that the number of young persons for whom guidance was provided is insufficient, given that 400,000 young persons between 16 and 18 years of age complete their studies every year. The Committee also notes the CATP’s claim that a public policy is needed to generate a process of change in the linkages between education and work. The CATP denounces the fact that workers’ organizations have no participation in public vocational training institutions and that there is no social dialogue on vocational training. However, the Committee observes that the Government does not provide any information in its report on the impact on job creation of coordination measures between national employment policy and vocational training policy. The Committee requests the Government to send detailed, up-to-date information on the measures taken or contemplated, in cooperation with the social partners and the representatives of different sectors, for coordinating education and training policies with possible employment opportunities. The Committee also once again requests the Government to send statistical information, disaggregated by sex and age, on the impact on job creation of the application of the aforementioned measures.

Cooperatives. The Committee notes the information provided by the Government, in reply to its previous comments, concerning the measures taken to promote the creation of productive employment through cooperatives and to combat and eliminate the practices of “pseudo-cooperatives”. In this regard, the Government indicates that it is conducting an assessment regarding the adoption of a new General Cooperatives Act with a view to updating the regulations in force, since many of its aspects are out-of-date and cause confusion at the time of establishing a cooperative or determining taxation matters or the inspection system. The Government indicates that the new proposal unifies the regulations concerning cooperatives and that consensus was reached in its formulation with cooperative unions and public institutions that have competence in cooperative matters. Furthermore, the Cooperatives and Institutions Directorate within the Directorate-General for Business Development has pointed to the need to formulate and implement a public policy on cooperatives, defining strategic objectives and guidelines for the promotion and sustainable development of that sector. Moreover, the Government refers to the My.Coop Perú programme, which seeks to increase the competitiveness of agricultural cooperatives through the development of management capacities and the promotion of cooperative education with the aim of offering high-quality products and services. The Government indicates that between January 2012 and July 2018 training was provided for 1.25 million representatives (managers and workers) in 251 cooperatives in various departments of the country. The Committee observes that, according to the 2016 census of cooperatives, cooperatives exist in over 300 districts nationwide and have over 1.5 million members. The Committee notes that the CATP, in its observations, claims that there is no real development of cooperatives in the country. As regards measures taken to combat and eliminate the practices of “pseudo-cooperatives”, the Government refers to the drawing up of regulations for the supervision of cooperatives to ensure that savings and credit cooperatives are governed by a regulatory framework and are supervised. The aforementioned regulations also provide for the establishment of a “cooperative deposit insurance fund” with the involvement of the Ministry of Production. The Committee requests the Government to provide detailed, up-to-date information on the impact of the measures taken or contemplated to boost the creation and promotion of productive employment by cooperatives, including those adopted as part of the My.Coop Perú programme. The Committee also requests the Government to send information on progress made regarding the formulation and adoption of the new General Cooperatives Act, on a public policy for cooperatives and regulations for the supervision of cooperatives, and to provide a copy of the latter when they are adopted.

Micro, small and medium-sized enterprises. The Committee notes the Government’s reference to the adoption of various measures to boost micro, small and medium-sized enterprises (MSMEs), such as the adoption of the Tu Empresa national programme in 2017, with the aim of helping to increase productivity and sales for MSMEs, providing them with facilities for formalization, access to formal credit, digitization, and development of entrepreneurial capacity. In January 2017, Legislative Decree No. 1332 was adopted, optimizing processes for providing advice and technical assistance for the establishment of enterprises through business development centres, with a view to promoting business formalization. The Government also refers to the “MSME citizen support centres”, centralizing services relating to business start-up and development provided by public institutions, thereby enabling savings of time and costs. Furthermore, the Government indicates that a series of actions have been undertaken in the context of the Pacific Alliance (comprising Chile, Colombia, Mexico and Peru), which aims to form an area of integration for ensuring complete freedom in the movement of goods, services, capital and persons. In this regard, the Government indicates that it is planned to sign a Memorandum of Understanding with the objective of creating a Pacific Alliance network of business development centres to drive the growth and internationalization of MSMEs in the abovementioned countries. The Committee also notes that the CATP reports difficulties faced by MSMEs in gaining access to credit (annual interest rates on credit sometimes amount to over 50 per cent), which hampers formalization, so that they become enterprises which barely survive and are often guilty of social dumping towards their workers. The Committee requests the Government to continue providing detailed, up-to-date information on the steps taken or contemplated to facilitate the creation of micro, small and medium sized enterprises (MSMEs) in the country, especially those aimed at promoting formalization and access to credit. The Committee also requests the Government to provide statistical information on the number and type of enterprises established and the number of posts created by such enterprises.

Direct Request (CEACR) - adopted 2016, published 106th ILC session (2017)

The Committee notes the information in the Government’s report and the additional information provided in its communication received on 22 December 2015.

Articles 1–3 of the Convention. Active employment policy. Participation of the social partners. In its communication received on 22 December 2015, the Government indicated that national employment policies were in place in Peru which set forth coordinated, consistent and systematic actions to promote formal employment and create decent work throughout the country, differentiating the characteristics and needs of men and women, and particularly of vulnerable categories of the population. The Government indicates that the national employment policies were reviewed and approved by the social partners through the National Council for Labour and Employment Promotion (CNTPE). The Government encourages the participation of the social partners in the implementation of policies to promote independent employment and strategies to formalize work. The Government indicates that it is developing the Sectoral Strategy for the Formalization of Work to promote measures to address informality in the country by improving incentives to access formal employment. The Government adds that it has developed the proposal for the national plan for the promotion of productive employment in the framework of productive diversification (PNPEP), the objective of which is, inter alia, to increase medium- and long-term growth by generating a greater capacity for production and change to enable economic diversification and an increase in quality formal employment. The Committee notes the measures that have been adopted to promote entrepreneurship development with an eye to generating employment, including the enactment of Act No. 30056 to facilitate investment and boost productive development and growth of entrepreneurship. Within the framework of Act No. 30056, the Ministry of Labour and Employment Promotion (MTPE), in coordination with the Ministry of Production, are designing selection criteria to enable micro-, small and medium-sized enterprises to certify their training courses and thereby claim tax credit. The Committee also notes the publication in July 2014 of Act No. 30230, which established the fund for technological dissemination tools, entrepreneurial innovation, and supply chains and access to micro-, small and medium-sized enterprise markets. The Government adds that it is implementing measures to formalize the small-scale and artisanal mining activities in Puno. The Committee also notes the adoption of the “Trabaja Peru” programme through Supreme Decree No. 004-2012-TR, which aims to generate employment and promote sustainable quality employment for the unemployed and under-employed population in urban and rural areas. The Committee requests the Government to provide information on the impact of measures taken within the framework of the national employment policy, including information on the manner in which the measures adopted to promote the formalization of work and the development of micro-, small and medium-sized enterprises have contributed to job creation. Please also include statistical data on the labour market situation and trends, disaggregated by sex and age.

Vulnerable categories of workers. The Government indicates that, in 2015, 5,558 persons with disabilities were hired in enterprises. In May 2015, the MTPE approved the guidelines for setting up and providing employment services with a disability perspective, as well as an action plan to improve employability in eight regions of the country. The Committee notes that, also in May 2015, the MTPE adopted supplementary rules for the application and monitoring of compliance with the employment quota for persons with disabilities applicable to private sector employers, which were subject to prior consultation with the social partners and with organizations of persons with disabilities. The Government also indicates that it has prepared a draft text for the promotion of employment and vocational training to improve the employability of pallaqueras (women who collect remnants of gold after it has been mined and sifted) with the active participation of the inhabitants of the areas concerned. The Committee requests the Government to provide updated information on measures adopted or envisaged to improve the employability of persons belonging to vulnerable groups, including persons with disabilities, older workers and indigenous peoples, including information on the impact of the draft text to improve the employability of pallaqueras.

Youth employment. The Government indicates that its National Youth Employment Policy includes measures for young people to participate in productive networks and channels and in entrepreneurship training programmes. The National Youth Employment Programme Jóvenes Productivos is being implemented to develop and reinforce the professional skills of young people aged 15–29 years who are in extreme poverty, in both urban and rural areas. Between August 2011 and June 2015, the programme benefited a total of 81,990 young people. The Committee requests the Government to continue to provide information on the impact of the measures taken to integrate young people into the labour market, including statistical data disaggregated by sex.

Coordination of employment policies and vocational training. The Government indicates that 19 regions have regional vocational training policies in place and 12 of those have established vocational training plans. In 17 of the 19 regions, a positive average annual growth rate in employment has been reported, particularly in relation to persons with disabilities. The Government also indicates that, between September 2012 and May 2015, a total of 136,183 young persons received vocational training from the Vocational Guidance and Information Service. The Committee notes that the MTPE and the Ministry of Education are working jointly on the coordination of activities programmed under the vocational training policy and national employment policy. In this connection, both ministries established the Education and Employment Observatory to address the discrepancies between the training supply and labour demand. The Committee requests the Government to provide information on the impact on job creation of coordination measures between the national employment policy and the vocational training policy.

Cooperatives. The Government indicates that the national online directory of cooperatives in Peru is still in operation and that a capacity-building programme to improve the management of cooperatives is being carried out. In 2014, a total of 405 cooperative members and 92 cooperatives at the national level participated in this programme. The Committee requests the Government to provide information on the manner in which the cooperatives have contributed to the creation of productive employment. The Committee also requests the Government to provide information on the impact of the measures taken to combat and eradicate the practices of “pseudo-cooperatives”.

Direct Request (CEACR) - adopted 2013, published 103rd ILC session (2014)

Precarious employment and the informal economy. In its observation in 2011, the Committee requested the Government to provide information allowing it to examine whether, when promoting the creation of productive and sustainable jobs in smaller enterprises, it is also ensured that the rights contained in ratified Conventions are applied to the workers in these enterprises. The Government indicates in a report received in August 2012 that, according to the register of small and medium-sized enterprises (SMEs), between 2009 and the first quarter of 2012, a little over 76 per cent of workers in micro-enterprises were covered by health benefits. Moreover, 60 per cent of workers in micro-enterprises are covered by some type of pension scheme (almost 60 per cent are registered with the Pensions Standardization Office). The CATP reiterates that the legislation does not ensure an end to precarious employment and to the erosion of the social benefits affecting around 5 million workers in micro-enterprises. According to the CATP, SMEs can easily be closed down and the rights acquired by workers weakened, without monitoring bad employers who use the system to create new SMEs and to grow rich through the failure to pay workers’ social contributions. The Committee once again recalls that, in the Conclusions relating to the promotion of sustainable enterprises (96th Session, June 2007), the Conference urged all enterprises, regardless of their size, to apply workplace practices based on full respect for fundamental principles and rights at work and international labour standards. The Committee invites the Government to provide updated information in its next report allowing it to examine the progress made in the creation and formalization of micro- and small enterprises by facilitating their access to commercial information, advisory and other enterprise development and financial services which promote their expansion in a conducive environment, and the implementation of policies and programmes which contribute to improving their productivity and competitiveness.

Vulnerable categories of workers. Employment of persons with disabilities. The Government provides information on the number of beneficiaries of the employment programmes of the Ministry of labour, particularly for persons with disabilities, and the programme Trabaja Peru for women heads of households. The CATP indicates that the Government’s efforts are insufficient, as appropriate action has not been taken at the sectoral level, in the textile industry, in agro-industry and in other sectors in which women are particularly affected by informality in the labour market. The CATP indicates that there is a lack of political will to ensure compliance with the quota set out in the legislation for persons with disabilities. The Committee once again asks the Government to provide updated information in its next report on Convention No. 122 on the impact of the measures adopted to help the most vulnerable categories of workers obtain productive and quality employment. The Committee hopes that in the report that is to be submitted in 2014 on the Vocational Rehabilitation and Employment (Disabled Persons) Convention, 1983 (No. 159), updated information will be provided so that it can examine the effectiveness of the measures that are in force to promote the integration of persons with disabilities into the open labour market.

Youth employment. The Committee notes that, through the implementation of the Sectoral Action Plan for the Promotion of Youth Employment 2009–12, the key role has been recognized of measures to integrate young persons into the labour market. The Government proposes to formulate and implement a new sectoral youth employment plan for the period 2012–16. Furthermore, as a result of the “National Youth Dialogue” workshop held in March 2011, a youth dialogue forum has been established within the CNTPE with a view to analysing the problem of youth employment and developing initiatives for decent work, with the technical support of the ILO. The Committee notes with interest that the Youth Social Dialogue Forum for Decent Work has been selected, identified and evaluated as a “good practice” for the promotion of programmes and policies intended to encourage the role of young persons as players in the development of their own community. The Government adds that it is necessary to develop a strategy of sustainable businesses for young entrepreneurs through the provision of guidance and training to persons between 15 and 29 years of age. The Government indicates that it is currently implementing a pilot project on a culture of entrepreneurship. The CATP indicates that the projects are carried out in model colleges (colegios emblemáticos) in each area and it would appear to be a mistake for them not to benefit the poorest sectors of the population. According to the CATP, a public inter-ministerial policy should be adopted to promote the inclusion of young persons in decent, sustainable and adequate employment, as young persons are the principal beneficiaries of temporary programmes and precarious jobs. The Committee welcomes the tripartite approach followed with the participation of young persons for the promotion of youth employment. The Committee invites the Government to include information in its next report as a basis for examining the impact of the measures adopted to promote youth employment, vocational training and entrepreneurship development for young persons.

Coordination of training and employment policies. The Government indicates that it is hoped that an inter-institutional cooperation agreement will be concluded between the government departments responsible for labour and those responsible for education for the harmonious implementation of national and sectoral policies and plans in the field of vocational training. In 2011, studies were undertaken on vocational training needs in the region of La Libertad and Metropolitan Lima. The CATP reiterates its concern at the lack of the necessary technical teams and commitment by the social partners to ensure that the orientations of training policy receive the necessary validation. The CATP also emphasizes that the Vocational Guidance and Information Service (SOVIO), a service provided free of charge which seeks to provide guidance and facilitate the choice of a professional, technical or occupational career that could be followed by young persons when leaving school, should receive greater coverage in state communication media directed at the most vulnerable social groups. In its previous observation, the Committee understood that the National Vocational Training Policy Guidelines (LNPFP) were being implemented to create more effective links between vocational training and the requirements of the labour market. Vocational training policies had been established in 18 regions, while there were regional vocational training plans in six regions. The trade union confederations observed that the level of investment in education was abnormally low. The Committee asks the Government to indicate in its next report the impact of the regional policies and plans on improving the prospects for lasting employment of persons who have participated in vocational education and training programmes. Please also provide information on the coordination of education and vocational training policies with employment policies and, specifically, on how the supply of training is coordinated with the demand for knowledge and skills and the needs of the labour market.

Cooperatives. The Government indicates that 278 inspections were undertaken between 2010 and the first quarter of 2012 in labour and employment promotion cooperatives, involving 14,393 workers. Workers’ cooperatives created 9,222 jobs over the same period. Between 2009 and 2011, the number of worker members of labour cooperatives fell from 5,522 workers to 3,464. The Committee also notes that section 68 of the Occupational Safety and Health Act, No. 29783, promulgated and published in August 2012, makes the employer responsible for the safety and health conditions envisaged in the legislation in installations in which workers’ cooperatives carry out activities. The Committee reiterates the importance of ensuring the application of labour laws so as to avoid the emergence of “pseudo-cooperatives”, which are only intended to gain access to the benefits related to the status of cooperatives, while avoiding the application of labour legislation (General Survey concerning employment instruments, 2010, paragraph 465). The Committee invites the Government to provide updated information on the impact of the measures taken to combat and eradicate the practices of “pseudo-cooperatives”. The Committee also refers to the Promotion of Cooperatives Recommendation, 2002 (No. 193), and hopes to be able to examine updated information on the manner on which cooperatives have contributed to the promotion of productive employment.

Observation (CEACR) - adopted 2013, published 103rd ILC session (2014)

Formulation of an active employment policy. Participation of the social partners. With regard to the adoption of a national employment plan, referred to in previous comments, the Government indicates in the report for the period ending August 2012 that, in June 2011, through Supreme Decree No. 052 2011 PCM new orientations were approved for the national employment policy intended to promote the creation of decent employment with the characteristics and needs being differentiated of men and women, and particularly of vulnerable categories of the population. The Committee notes with interest that Supreme Decree No. 052-2011 refers to Article 1(1) of the Convention and to the Millennium Development Goals, in accordance with the provisions of the Political Constitution and the State Policy of the National Agreement on “Access to full, decent and productive employment”. The Government indicates that the national employment policies were submitted for review and analysis to the Plenary of the National Council for Labour and Employment Promotion (CNTPE) and received tripartite approval and consensus. The Government adds that, when formulating the national employment policies, it requested comments and suggestions from the various organizations of workers and employers concerning the proposal and that the contributions of the social partners were included in the final version. Three information sessions were held in the Technical Commission on Employment of the CNTPE. The Autonomous Workers’ Confederation of Peru (CATP) considers that the Government’s positions were pushed vertically through the CNTPE without social dialogue. The CATP adds that neither the necessary budget, nor qualified personnel have been envisaged for the implementation of the policies approved, and that it is difficult for the beneficiaries of the policies adopted to participate at the regional level. According to the CATP, it is very difficult to achieve the active participation of informal economy workers in the preparation of employment policies. The Committee invites the Government to continue providing information on the participation of the social partners in the review and evaluation of national employment policies and their effectiveness in achieving full employment (Articles 1 and 2 of the Convention). The Committee hopes that the information contained in the report will make it possible to identify the manner in which it is ensured that the views of the representatives of the social partners (including the representatives of workers in the rural sector and the informal economy) are taken fully into account when formulating employment policies and in securing the necessary support for their implementation (Article 3).

Labour market trends. Active measures to promote employment. The Committee notes the statistical data on the labour market provided by the Government in its report. According to the data published in Panorama Laboral 2012, it is expected that the Peruvian economy would grow by 6.2 per cent in 2012, achieving one of the most vigorous growth rates in the region. Unemployment rates fell for both men and women. Between January and September 2012, the average annual unemployment rate was 7.2 per cent in Metropolitan Lima (7.7 per cent in 2011). The Committee also notes the active labour market measures implemented by the National Employment Service. The One-Stop Shop for Employment Promotion, established by Supreme Decree No. 001-2012-TR in February 2012, is intended to articulate the various employment services at the national, regional and local levels. The Government also refers to the national programme for the generation of inclusive social employment Trabaja Peru, which provided temporary jobs to 227,372 persons between 2010 and 2012. The national programme for the promotion of employment opportunities Vamos Peru, benefited around 45,000 people during the same period. Furthermore, the Committee takes note of the comments in which the General Confederation of Workers of Peru (CGTP) voices the concern of the Single Trade Union of Workers of the National Food Aid Programme (PRONAA) at the termination of the programme on 31 December 2012 and the consequent dismissal of workers. The CGTP maintains that, when the PRONAA programme was closed down, the State should have guaranteed the workers continued employment in other programmes. The Committee takes note of the Government’s reply detailing the background to the decision to close the PRONAA programme down and stating that the workers concerned were paid all their entitlements. The Committee invites the Government to indicate in its next report the impact that the national programmes and other measures to create productive and sustainable employment have had, particularly for workers affected by administrative restructuring. The Committee also asks the Government to include data broken-down at the national, regional and local level on the situation, level and trend of employment, unemployment and underemployment in both urban and rural areas in Peru (Article 1).

The Committee is raising other points, including precarious employment and the informal sector, the employment situation of persons with disabilities and of other vulnerable categories of workers, youth unemployment, the coordination of training and employment policies and cooperatives, in a request addressed directly to the Government.

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

With reference to its observation of 2009, the Committee notes the information supplied by the Government in the report received in September 2010. The Committee also notes the joint comments from the General Confederation of Workers of Peru (CGTP), the Single Confederation of Workers of Peru (CUT), the Confederation of Workers of Peru (CTP) and the Autonomous Confederation of Workers of Peru (CATP) dated 27 August 2010, from the Lima Chamber of Commerce (CCL) dated 28 August 2010, and from the CGTP dated 31 August 2010.

Articles 1 and 2 of the Convention. Formulation of an active employment policy. The Government indicates that, in July 2009, by means of Ministerial Decision No. 160-2009-TR1, the “Guidelines on social and labour policy 2009–11” were approved. The Decision contains the foundations for the formulation and implementation of the “Sectoral plan of action for the promotion of youth employment 2009-II-2012-I”, the formulation of national employment policies, the setting up of the Directorate of Labour Migration and the National Employment Service, and also the establishment of the Revalora Peru programme, the restructuring of the “PROJOVEN” programme and the reinforcement of the Construyendo Peru programme. The trade unions again express their concern at the lack of a national employment plan, without which it is difficult to apply the guidelines adopted in July 2009 and achieve their objectives. Moreover, the trade unions consider that the policies formulated to promote employment do not contribute to an overall, integrated decent work strategy and tend to make conditions of work more precarious. The Committee notes the information provided by the Government in its report, reflecting a recovery in economic activity in the first quarter of 2010, which had a positive impact on labour indicators in comparison with those for the same period in 2009. According to data published by the ILO in the Labour Overview, Panorama Laboral 2010, the unemployment rate stood at 8.1 per cent and the underemployment rate owing to insufficient hours of work stood at nearly 16 per cent. The Government indicates that the impact of the international financial crisis was seen in a sharp drop in foreign demand during 2009. In order to alleviate its impact, measures were adopted to sustain domestic demand and from the third quarter of 2009 onwards economic activity began to recover. The Revalora Peru programme promotes employment and improves the employability of the unemployed and of workers who risk becoming unemployed owing to the global crisis or as a result of changes occurring in the country’s economic sectors. The programme also seeks to increase business competitiveness by means of training services, consultancy, technical assistance and links between enterprises. According to Government data, the programme had provided training for 28,474 persons up to April 2010, of which 39 per cent were women and 61 per cent were men. The CGTP points out that investment in infrastructure, colleges and health centres and investment in social expenditure could generate many temporary jobs in areas where mass unemployment occurred as a result of the crisis. The Committee recalls that the Convention invites member States to take steps to implement active labour market measures and to keep those measures under review, within a clearly defined and established framework. The Convention accordingly asks governments and the social partners to periodically review their labour market measures to evaluate their effectiveness in achieving full employment (2010 General Survey concerning employment instruments, paragraphs 785 and 786). The Committee requests the Government to indicate in its next report whether a national employment plan was adopted, and how it is ensured that the social partners participate in the review and evaluation of the measures adopted to achieve full employment. The Committee requests the Government to include information in the report on the situation, level and trends of employment, unemployment and underemployment in both urban and rural areas of the country.

Article 3. Participation of the social partners in the formulation and implementation of employment and vocational training policies. The Government indicates that the process of drawing up national employment policies has been public and participatory, with contributions and comments from the employers, the workers and the general public, with the goal of promoting the creation of decent work, especially identifying the different features and needs of men and women from vulnerable groups of the population. The trade unions state that the Government was unwilling to subject employment policies to the process of social dialogue and that the Technical Employment Committee of the National Council for Labour and Employment Promotion (CNTPE) has not met since October 2007. The Committee requests the Government to provide information in its next report on the manner in which it is ensured that the views of the representatives of the social partners (including representatives of workers in the rural sector and the informal economy) are taken fully into account in formulating employment policies and obtaining the necessary support for their implementation.

Precarious employment and the informal economy. The Committee observes that informal work continues to involve large sections of the population, with nearly seven in ten persons outside the agricultural sector engaging in some kind of informal employment. In the first half of 2010, a total of 4,426 enterprises and 17 formalization offices and information booths catering for micro- and small enterprises were established, providing assistance, advice and training in that sphere. The Ministry of Production, through the CRECEMYPE programme, provides users with brochures and publicity material to inform them of the procedures to follow to formalize their businesses and the profits made. Priority sectors are wood and carpentry, textiles, craftwork, tourism, catering, leather, footwear and agro-industry. The trade unions have repeatedly expressed concern, stating that measures to promote micro- and small enterprises may generate more precarious employment and have a negative impact on the rights of workers in micro-, small and medium-sized enterprises (2010 General Survey, paragraph 394). The trade unions repeat their concern in the observations received in August 2010 at the lack of consultation with regard to identifying and resolving the social problems that arise in micro-, small and medium-sized enterprises and in the informal economy. The CCL considers that the existing legislative machinery can facilitate the formalization of small and medium-sized enterprises. The Committee recalls that the Conference, in the conclusions relating to the promotion of sustainable enterprises (96th Session, June 2007), urged all enterprises, regardless of their size, to apply workplace practices based on full respect for fundamental principles and rights at work and international labour standards. The Committee requests the Government to include information in its next report which shows that while the creation of productive and sustainable employment in smaller enterprises is promoted, it is also ensured that the rights contained in ratified Conventions are applied to the workers in these enterprises.

Vulnerable categories of workers. The Government indicates that women, young persons, persons with disabilities and, in general, all groups with low skill levels tend to have a precarious footing in the labour market. The goal of the Construyendo Peru programme is to generate temporary employment and the development of skills for unemployed persons in situations of poverty and extreme poverty in urban and rural areas. The beneficiaries of the programme include significant numbers of women, young persons at risk, single mothers, persons with disabilities and older people. According to the information in the Government’s report, since July 2006 a total of 296,277 temporary jobs were created in 10,522 projects and 224,058 persons were trained to develop basic, technical and productive skills to improve their employability. The Committee requests the Government to include up-to-date information in its next report on the impact of the measures taken to ensure that the most vulnerable categories of workers obtain productive, high-quality employment.

Youth employment. The Government indicates that youth unemployment stands at 18.8 per cent. The Committee notes that the aim is to provide labour and social security incentives for employers in labour-intensive sectors with regard to placing young persons in jobs or training schemes. In addition, the aim is to strengthen the Vocational Guidance and Occupational Information Service vis-à-vis young persons, taking account of their needs and capacities and the requirements of the labour market. The Committee requests the Government to provide up-to-date information in its next report on the impact of the measures taken to stimulate youth employment, vocational training and the business development of young entrepreneurs. Furthermore, the Committee requests the Government to include information on the incorporation of the youth employment promotion policy in tripartite consultation bodies.

Coordination of training policies with employment. The Government indicates that the “National vocational training policy guidelines” (LNPFP) are being implemented to create more effective links between vocational training and the requirements of the labour market. Vocational training policies have been established in 18 regions, six of which have a regional vocational training plan. The Committee notes that the drawing up of various surveys on worker skills in different sectors served as the means for developing occupational profiles in the agro-industry and dock work and updating occupational profiles connected with tourism and the textile industry. Policies were also formulated to promote occupational, technical and vocational training, to increase access to high-quality technical training and various forms of retraining, and to enhance the development of entrepreneurial capacities in the workforce and the reinforcement of enterprises. The trade unions consider that the level of investment in education is abnormally low. The Committee requests the Government to provide information in its next report on the impact of regional policies and plans on promoting education and vocational training policies. It also requests the Government to include information on the coordination of education and vocational training policies with employment policies, especially how the supply of training is coordinated with the demand for knowledge and skills and the needs of the labour market.

Cooperatives. The Government recalls that the Ministry of Production is formulating policies and programmes to promote the creation of cooperatives, the formalization thereof and an increase in their competitiveness. The Committee notes that the “National plan for cooperative development” will lead in the medium term to a greater contribution by cooperatives to productive employment in the country. The IV National Economic Census of 2008 reveals that urban cooperatives have created 8,120 jobs but does not contain any information on rural service cooperatives. The trade unions reiterate their concern at Act No. 27626 regulating temporary work cooperatives, which they consider contributes towards evasion in the application of the labour legislation. The Committee again emphasizes the importance of ensuring the application of labour laws so as to avoid the emergence of “pseudo-cooperatives”, which are only intended to gain access to the benefits related to the status of cooperatives, such as tax advantages or social security benefits, while avoiding the application of labour legislation (2010 General Survey, paragraph 465). The Committee requests the Government to indicate in its next report the measures taken to combat and eliminate the practices of “pseudo-cooperatives”. The Committee refers to the Promotion of Cooperatives Recommendation, 2002 (No. 193), and requests the Government to include information on the manner in which cooperatives contribute to the promotion of productive employment.

Observation (CEACR) - adopted 2009, published 99th ILC session (2010)

Articles 1, 2 and 3 of the Convention. Formulation of an active employment policy. In reply to the observation of 2007, the Government states in its report for the period ending in May 2008 that, although no national employment plan is in force, the Ministry of Labour and Employment Promotion has developed Guidelines on Social and Labour Policy 2007–2011. The Guidelines are for management purposes and aim to improve the performance of the labour administration and the promotion of employment and micro- and small enterprises. According to the Guidelines, the Ministry’s role is to build capacity to direct the implementation of policies and programmes to generate productive employment and to encourage the creation and/or “formalization” of micro- and small enterprises, to facilitate access to business information and other business and financial development services, to contribute to improving employability and/or labour market integration, particularly among vulnerable sectors of the population and to contribute to improving the production, quality and dissemination of social and labour-related information. According to an opinion from the Autonomous Confederation of Peruvian Workers (CATP) which was included in the Government’s report, since there is no national employment plan, implementation of the Guidelines on Labour and Social Policy 2007–2011 is very difficult. The Committee refers the Government to Article 1(1), of the Convention, which requires an active policy to be declared and pursued in order to promote full, productive and freely chosen employment. Furthermore, according to Article 3 of the Convention, the full cooperation of the social partners must be enlisted in formulating the abovementioned policy and the necessary support obtained for its implementation. The Committee hopes that, in the Government’s next report, it will find information indicating the manner in which implementation of the Guidelines on Social and Labour Policy 2007–2011 has contributed to attainment of the Convention’s objectives. The Committee further hopes that the next report will include the texts in which, with the participation of the social partners, an active employment policy has been defined, as required by the provisions of the Convention.

Labour market trends. The Committee observes that in 2008 the persistently high growth rates boosted expansion of the demand for labour. Employment in urban areas registered an 8.7 percentage point improvement between January and October 2008 over the same period in 2007. Furthermore, the Household Survey of metropolitan Lima shows that the unemployment rate dropped from 8.8 per cent to 8.6 per cent in the first three quarters of 2007 and 2008, respectively, with a 0.4 percentage point reduction in the employment rate. According to the National Statistics Institute (data published in May 2008), poverty rates have dropped since 2004. According to the National Household Survey, in 2007, 39.3 per cent of the population were living in poverty, 64.6 per cent of whom were to be found in rural areas and 25.7 per cent in urban areas. The Committee notes with interest that these figures indicate a 5.2 percentage point drop in poverty rates as compared with the figures for 2008 and 2006. Furthermore, extreme poverty levels have likewise fallen. While in 2006, 16.1 per cent of the population lived in extreme poverty, in 2007 this figure dropped to 13.7 per cent. The Committee notes that one of the strategies set forth in the Guidelines on Labour and Social Policy 2007–2011 is to promote the development of employment-generating programmes for the most vulnerable population groups. According to the Government, the RED CIL Pro-Employment Programme has extended its coverage nationwide by strategic alliances with public and private institutions involved in employment promotion, both in urban and in rural areas. The Government also provides information on the work done to strengthen the strategies for rural action, with emphasis on self-employment, so as to enable rural inhabitants to improve their standards of living and join the labour market on an independent footing. In the CATP’s view, progress is insufficient in terms of job quality, as can be seen from the high rate of employment in the informal sector. The CATP states that there are gender and age-group differentials, young people being among the most vulnerable groups.

The Committee refers to the information received in September 2009 in the report on the Employment Service Convention, 1948 (No. 88). The Government states that in January 2009, 15 sets of guidelines agreed on in an Anti-Crisis Task Force were approved to counteract the effects of the international crisis in the economy, production and the labour market. The Committee notes with interest that the proposals agreed on include the implementation of a programme designed to retrain workers laid off as a result of the crisis and place them in new jobs. The Committee asks the Government to include information in its next report on the implementation of the proposals to counteract the effects of the international crisis in the labour market.

The Committee notes in this connection that work is being done to identify the information needs of vulnerable groups (older and disabled persons) and mechanisms for dissemination in order to provide relevant information so that they can render adequate decisions facilitating their access to the labour market. The RED CIL Pro-Employment Programme has developed and implemented measures for intermediation focused on the regions of Ica, La Libertad, Piura and Lambayeque to respond to the needs of the agro-industrial sector employing unskilled labour, organizing workshops to improve their employability and facilitate access to job offers. Work has been done to strengthen the strategies for rural action, with emphasis on self-employment, which will enable rural dwellers to improve their standards of living and join the labour market on an independent footing. However, according to the document attached to the report produced by the Technical Secretariat of the National Council for Labour and Employment Promotion (CNTPE), the Operational Plan for the Agricultural Sector has not been revised in a tripartite framework. The Committee requests the Government to provide information in its next report on the measures taken (and results achieved) to enable vulnerable groups to obtain productive employment, particularly in rural areas, where poverty rates are still very high. The report should provide information on the nature, extent and trends of employment, unemployment and underemployment in the urban as well as the rural areas of the country.

Training and employment promotion policies. The Government states that, since 52.7 per cent of the population is affected by underemployment, conditions must be created that are conducive to appropriate training for employment so that the demand for jobs can be met. The Committee observes that the strategies set out in the Guidelines on Social and Labour Policy 2007–2011 include improving levels of occupation adjustment so as to match skills supply and demand. The objective is to develop permanent monitoring machinery and disseminate information on occupational training needs. In July 2006, national policy guidelines for vocational training were approved which involved the design of regional policies for vocational training and approval of a regional vocational training plan for every region in the country. The Committee requests the Government to provide information in its next report on progress made in designing regional policies and plans to facilitate the coordination of education and vocational training policies and employment prospects. The Committee notes the proposals and diagnoses carried out by the Technical Committee on Vocational Training and the policy proposals for systematizing vocational training programmes prepared in conjunction with the CNTPE. The National Directorate for Employment has conducted studies on the quantitative and qualitative qualification of human resources in the textile, plastic, pharmaceutical, tourism, agro-industry and maritime and dock work sectors. In 2008, a study was launched on the manufacturing sector. The Committee hopes that the next report will contain information on coordination that has been set up to link the various initiatives mentioned above in order to meet the training needs identified to improve the skills of the workers in the sectors concerned. According to the CATP, employers do not provide training for their workers because it is not tax deductible, despite the submission of proposals to amend the tax law. The CATP also suggests that the State does not invest in improving the education of its citizens or prepare young persons for the world of work. The Committee hopes that the next report will also include information on support obtained in this area from the social partners. It refers in this connection to the Human Resources Development Recommendation, 2004 (No. 195), in which members are invited to “define, with the involvement of the social partners, a national strategy for education and training, as well as establish a guiding framework for training policies at national, regional, local and sectoral and enterprise levels” (Paragraph 5(a) of Recommendation No. 195).

Informal economy. The Committee notes from the ILO data published in Panorama Laboral 2008 that, between 2006 and 2007, Peru’s informal economy has shrunk  more than in other countries of the region. This is due to the growth of financial establishments and to the manufacturing industry, two sectors with a high number of registered workers. The Government states in its report that in June 2007 a special tripartite committee was set up to address the problems of the informal economy in Peru. The special committee established criteria for defining the economy and informal employment and analysed statistics allowing it to characterize informal workers. The studies carried out by the special committee show that due to the large proportion of informal jobs in micro-enterprises, the cost of joining the formal economy would be too high. Many of the informal micro-enterprises in rural areas have workers with little training and virtually no management capacity, and they see little point in paying taxes or contributions to services in the formal sector to which they have no access. Micro-enterprises in the urban sector likewise have a high proportion of informal jobs, as they opt not to join the formal sector because of the high costs involved. According to the Government, the 2006 National Household Survey shows that 53 per cent of the active population work in micro- and small enterprises and inadequate access to training and on-the-job training is one of the major problems currently affecting the sector, where 89 per cent of the workers have gone no further than secondary school. The Committee notes that the National Promotion and Formalization Plan for the Competitiveness and Development of Micro- and Small Enterprises 2005–2009 has been implemented only in part. The Committee requests the Government to provide information on the progress made in establishing and formalizing micro- and small enterprises, facilitating access to business information, advisory and other business and financial development services that foster the expansion of such enterprises in a favourable environment, and the implementation of policies and programmes that contribute to making them more productive.

Cooperatives. The Committee notes that in April 2008 a new general Cooperatives Act was drafted. The Committee refers to the Promotion of Cooperatives Recommendation, 2002 (No. 193), the provisions of which encourage governments to “introduce support measures, where appropriate, for the activities of cooperatives that meet specific social and public policy outcomes, such as employment promotion or the development of activities benefiting disadvantaged groups or regions”. The Committee hopes that the next report will include information on the manner in which cooperatives have contributed to the promotion of productive employment in Peru.

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

1. Articles 1 and 2 of the Convention. Coordination of employment policy with economic and social policy. The Committee notes the Government’s report, received in October 2006, which contains useful information in response to its direct request of 2004. Growth in employment in Metropolitan Lima reached 6.6 per cent, while the other 20 main cities reported an 8.0 per cent increase. According to the statistics published by the ILO in the 2006 Labour Overview, the rate of urban unemployment in Lima fell from 9.6 per cent in 2005 to 8.8 per cent in the third quarter of 2006, despite there being a substantial variation between men and women (10.3 per cent for women; 7.6 per cent for men). In 2006, the urban youth unemployment rate also fell (15.1 per cent) by one percentage point. The Committee requests the Government to include data in its next report on growth, employment, unemployment and underemployment in urban areas and rural areas.

2. In this connection, the Committee notes the information supplied by the Government with respect to the positive performance of the economic sectors, especially mining and quarrying, services, industry, commerce, transport and communications, and electricity, gas and water. The Government refers in its report to the diagnosis of the Technical Secretariat of the National Council for Labour and Employment Promotion (CNTPE), which indicates that, despite 7.2 per cent growth in the Peruvian economy, economic growth is insufficient to absorb the labour supply, and a set of preliminary strategies has been drawn up for implementing the general features of the National Employment Plan. The Committee would be grateful to receive information on the outlines and specific strategies approved by the plan with the aim of promoting full, productive and freely chosen employment.

3. Promotion of employment and vulnerable groups. The Committee notes the proposed policy designed to promote the integration of persons facing difficulties in returning to employment and the contingency plan for workers affected by the further economic liberalization, constant technological change and insufficient job creation. The Committee requests the Government to supply information in its next report on trends in this policy and its strategies, the results achieved and the vulnerable groups for whom these measures are intended.

4. Training policy and promotion of full employment. The Committee notes the promulgation of Act No. 28518 on labour training methods in May 2005. With respect to the gap in training coverage and the inadequate resources in vocational training, the Committee requests the Government to supply information concerning the activities of the Technical Committee on Vocational Training, the practical application of the new legislation and the progress achieved in equipping workers with the necessary skills and training for enhancing their employability.

5. The Committee notes the approval of the National Plan for Promoting and Formalizing Competitiveness and Development in Micro- and Small Enterprises (MYPE) (2005–09). The National Employment Plan for 2006 concentrates on the micro- and small enterprise sector, in which most of the country’s economically active population is to be found. According to the study on MYPE statistics published by the National Department for MYPE of the Ministry of Labour and Promotion of Employment (MTPE), the number of informal micro- and small enterprises is 1.8 million, compared with 648,147 enterprises in the formal sector. In general, poverty and employment in informal enterprises have a definite link, i.e. the greater the percentage of persons occupied in informal enterprises in an area, the greater the degree of poverty of its inhabitants. The Committee is aware that the informal economy constitutes a challenge for the creation of productive employment in the country – the informal economy represents 57.9 per cent of the economy in Peru, a percentage which is only exceeded in Bolivia (65.6 per cent). The Committee hopes that the Government’s policies will stimulate the growth of formal micro-enterprises and that incentives will spur the formalization of informal enterprises. The Committee asks that the Government to supply information on the measures taken to increase employment opportunities, improve the conditions of work in the informal sector and facilitate the progressive integration of this sector into the national economy. Please include data on the results of the strategic components of the National Plan for Promoting and Formalizing Competitiveness and Development in Micro- and Small Enterprises for 2005–09, and in practical terms on the manner in which promoting the formalization and quality of informal employment translates into the generation of productive employment. The Committee also asks the Government to continue to supply statistics on the structure of the economically active population occupied in micro- and small enterprises and the geographical distribution thereof in both urban and rural areas.

6. The Committee refers to the recommendations made by the ILO Subregional Office for the Andean Countries in the draft Decent Work Country Programme for 2004–06 of 18 December 2003, including the recommendation to strengthen and extend the public employment service which acts via the MTPE CIL-PROEMPLEO network programme. The Committee requests the Government to provide information on the measures taken in this context not only to generate more jobs but also to improve the quality of work.

7. The Committee notes the presentation of the operational plan for the agricultural and industrial sector drawn up by the National Employment Committee. The Committee would be grateful to receive information on the impact in economic and labour terms of the Agriculture Promotion Act which is being implemented by the Technical Secretariat of the CNTPE and on the sectoral policies for boosting job creation in the rural sector.

8. Article 3. Participation of the social partners. The Committee notes with interest the activities undertaken by the National Council for Labour and Promotion of Employment (CNTPE) and the progress made by setting up a body to revise and debate draft policies or legislation with respect to employment and vocational training. The Committee asks the Government to supply information on the activities of the CNTPE and repeats its interest in examining information on the measures adopted for consulting the representatives of the informal economy with regard to the policies to be adopted in order to improve their prospects of obtaining decent work.

Direct Request (CEACR) - adopted 2004, published 93rd ILC session (2005)

1. Coordination of employment policy with economic and social policy. The Committee takes notes of the Government’s report, received in September 2004, which contains useful information in response to its previous comments. The Government reports the adoption of new legislative measures to promote employment (the law and regulations to promote micro- and small enterprises and upgrade them into the formal economy, the register of private employment agencies, the creation of the vocational training programme CAPACITESE PERU). The Committee requests the Government in its next report to provide information on the impact of these measures in terms of occupational integration and the creation of productive employment.

2. The Committee observes in this connection that the economic recovery led to an expansion of formal employment in the urban sector of 2.3 per cent in 2002 and of 1.8 per cent in 2003. Private investment grew and in 2003 the exchange rate remained stable. Textile exports to the North American market increased. Budgetary austerity is being promoted. The Government indicates that the aims set out in its road map are to increase workers’ productivity; seek consensus in the National Labour Council and Congress to reform labour legislation; promote a social pact on employment, wages and productivity; and strengthen the programme to encourage micro- and small enterprises. The Committee hopes that the Government will be in a position to indicate in its next report that employment does have a central place in macroeconomic and social policies and in the design and implementation of the principal economic and social policies and measures (Articles 1 and 2 of the Convention). The Committee considers it essential for employment objectives to be included "as a major goal" from the outset in discussions of the formulation of economic and social policies so that these objectives are truly an integral part of policies that are adopted (paragraph 490 of the General Survey of 2004 on promoting employment).

3. The Committee notes with interest the detailed information on remuneration and the employment situation, broken down by sector and major urban centre. It notes with interest the results obtained by the work training for young people programme. According to data published by the ILO in its Labour Overview, 2003, the youth unemployment rate fell by 0.7 per cent and the overall unemployment rate, by 0.3 per cent between 2002 and 2003. The Committee hopes that the Government will continue to report on the situation, level and trends of employment, unemployment and underemployment, both in the aggregate and as they affect particular categories of workers (such as women, young people and workers in the informal economy and the rural sector), often the groups that have most difficulty in finding lasting employment. The Committee would be grateful if the Government would indicate how the statistical information compiled has served as a basis for deciding on economic and social policies that target the creation of productive employment as a priority. Please continue to provide information on the impact on productive employment generation of the various programmes being implemented.

4. Participation by the social partners in the formulation and application of policies. In reply to earlier comments, the Government indicates that the National Council for Labour and Employment Promotion, a tripartite body, has discussed and approved guidelines pertaining to vocational training and labour market policies. The Committee requests the Government to continue to report on the manner in which social dialogue contributes to the adoption and implementation of employment policies. It would also appreciate receiving detailed information on the work done by the National Council for Labour in connection with the consultations required by Article 3 of the Convention. Please provide information on measures taken to consult representatives of the informal economy about policies to improve prospects for obtaining decent work.

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

1. With reference to its previous comments, the Committee notes the detailed information sent by the Government in September 2002. In a persistently unfavourable context for job creation (with registered unemployment increasing from 8.5 to 9.3 per cent in 2001 and underemployment from 45.5 to 46.4 per cent in Metropolitan Lima), the Committee notes from the comprehensive information provided the various programmes being implemented by the Government including an evaluation of their impact. According to this information, the Action for Youth Programme has enabled more than 2,000 workers to be placed in jobs in the space of two years. In 2002, the Self-employment and Micro-enterprises Programme has generated 7,084 jobs. The Women’s Employment Consolidation Programme (PROFECE) which has brought together a total of 13,664 members of "labour supply groups" (GOOLS) and enterprises in search of employees with a view to assisting women with few resources to find jobs. These activities have allowed more than 28,000 temporary jobs to be created and has enabled women workers to be trained in technical courses on production and management. The urban work programme A trabajar urbano is intended to generate temporary jobs for the unemployed in urban areas, particularly people living in poverty or extreme poverty (more than 70,000 four-month temporary jobs are expected in 2002). A rural employment programme A trabajar rural has also been established with financing from the Compensation and Social Development Fund. The Committee notes with interest the information on the activities at municipal level to develop local economies. The Committee notes that the Government has received technical assistance from the Office in devising and implementing programmes for the creation of productive employment. The Committee recalls that the Convention requires that the Government declare and pursue, as a major goal, an active policy designed to promote full, productive and freely chosen employment. The policy must be decided on and kept under review in coordination with a social policy (Articles 1 and 2 of the Convention). Accordingly, the Committee asks the Government to indicate in its next report how account has been taken of the impact on employment of the measures taken to promote economic development (investment policy, budgetary and monetary policy, trade policy and prices, incomes and wages policy). The Committee would also be grateful to receive an evaluation of the results achieved by the various programmes, as this would assist in determining how to overcome difficulties in attaining the objectives of full and productive employment established in the Convention.

2. Since 1998, the Committee has been asking the Government to send information on the impact on employment of the privatization and restructuring of the telecommunications sector. The Committee notes in this connection the new observations received in July 2002 from the World Federation of Trade Unions (WFTU), which were sent to the Government in August 2002. The WFTU cites dismissals by a telephone company which have allegedly made the unemployment and social problems in Peru more acute. The Committee notes the information sent by the Government in its report suggesting that the privatization of the telecommunications sector has allowed employment to rise and that it is predicted that a considerable number of jobs will be created in the medium term. The Committee points out that where privatization that might lead to dismissals is undertaken, account should be taken of the instruments on termination of employment adopted by the Conference in 1982 which aim to achieve a balance between protection of the worker in the event of redundancy and the necessary flexibility of the labour market (see General Survey on protection against unjustified dismissal, 1995). Regarding Convention No. 122, the Committee has observed that a wider dialogue in civil society is one of the linchpins of sustainable economic growth in an era of globalization of markets. An essential element in successfully opening economies is the minimization of the risks that some economic policy measures may entail for certain categories of workers (see paragraphs 52 and 53, General Report, 2000). Accordingly, the Committee again draws attention to the importance of the consultations required by Article 3 of the Convention which requires consultations of the representatives of all persons affected by employment policy "with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support for such policies". The Committee trusts that the consultations on employment policy will lead to positive outcomes for the workers affected by the changes in the economy and that in its next report the Government will provide up-to-date information on the employment situation in the telecommunications sector.

3. The Committee recalls that in its previous comments it already pointed out that, with most of the economically active population being in the informal and rural sectors, the consultations on employment policy ought necessarily to include representatives from those sectors. The Committee requests that the Government provide specific information in its next report on the consultations held in connection with employment policy with representatives of both the formal and the informal sectors of the labour market.

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

The Committee notes the Government’s report, received in September 2000, which refers briefly to the questions raised in the observation of 1999.

1. Articles 1 and 2 of the Convention. The Committee notes that, in what was a particularly unstable period in political terms, metropolitan Lima maintained a registered unemployment rate of 9.2 per cent in 1999 (8.5 per cent in 2000) while the informal sector continued to account for 54 per cent of urban employment. Economic growth of 3.1 per cent in 2000 was not sufficient to improve the employment situation. In its report, the Government enumerates its employment programmes: the Women’s Employment Consolidation Programme (PROFECE), which has provided a total of 11,060 temporary jobs (between August 1999 and July 2000); the Self-Employment and Micro-enterprise Programme (PRODAME) to encourage the establishment of small and micro-enterprises with a view to their gaining access to the economic and financial resources of the formal sector; and the PROEMPLEO national network and CIL centres. The Committee reiterates the request it made to the Government in its observation of 1998 to provide, in its next report, information on the impact of measures taken under the various employment programmes, including particulars of the situation, level and trends of employment, unemployment and underemployment in the rural areas as well as the urban sectors. Please state in particular how the employment policy objectives are related to other economic and social objectives.

2. The Committee refers to point 4 of its observation of 1998. It would be grateful if the Government would explain how its programmes contribute effectively to the creation of sustainable new jobs, particularly for young people wishing to enter the labour market, while ensuring that measures for the vocational training of young people do not depart from the objective of the effective and lasting integration of those concerned in appropriate employment.

3. Article 3. The Government indicates in its report that the Committee for the Promotion of Private Investment (COPRI) has been asked to supply information on how account was taken of the implications for employment of the privatization and restructuring of the telecommunications sector. The Committee hopes to receive such information and emphasizes the importance of consulting the social partners on measures to be adopted for the promotion of employment. The Committee again highlights the importance of the consultations required by Article 3 of the Convention under which the representatives of all persons affected must be consulted regarding employment policy, "with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support for such policies". Since most of the economically active population is to be found in the informal and rural sectors, the consultations on employment policy should necessarily include representatives of those sectors. The Committee hopes that in its next report the Government will be in a position to provide information on the progress made regarding the consultations required by this provision of the Convention, as regards the informal sector as well as the formal sector of the labour market.

4. The Committee trusts that in 2002 the Government will submit a detailed report on the application of the Convention containing all the information required by the report form for each provision of the Convention, including information in response to the matters raised in this direct request and, in general, on how the Government has taken account of the need to promote decent work.

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

1. The Committee recalls that in its previous observation it noted the communication of the American Secretariat of the World Federation of Trade Unions (WFTU), conveying the concerns of the Peruvian Federation of Telephone Workers with regard to measures related to employment and the dismissals occurring as a consequence of privatization and restructuring of the telecommunications sector. The Committee notes the Government's comments, received in January 1999, listing the programmes which have been implemented in order to generate employment, such as PROEMPLEO - a national placement system, the Programme for the Promotion of Self-employment and Micro-enterprises (PRODAME), the Programme for the Consolidation of Women in Employment (PROFECE), and PROJoven. The Committee would be grateful if the Government would indicate in its next report, the manner in which the impact on employment was taken into consideration in the privatization and restructuring of the telecommunications sector. Please also state in what way the representatives of the interested persons were consulted with a view to ensuring their full cooperation and obtaining the necessary support for privatization, especially in respect of the restructuring of the telecommunications sector (Articles 2 and 3 of the Convention).

2. The Committee trusts that the next Government report due for the period ending 30 August 2000, will also include the information required under points 2 to 7 of the observation published in the Committee's previous report.

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

1. The Committee notes the Government's report for the period ending September 1998. The Committee also notes the discussion in the Conference Committee in June 1998.

2. In response to the Committee's request to be provided with the results of surveys that are being undertaken in the field of employment, the Government provided statistical tables on the level of urban employment: 50.5 per cent of the population was suitably employed, while 41.8 per cent were affected by underemployment and 7.7 per cent of the urban population were unemployed (the figures cover the third quarter of 1997). The Committee notes that, according to the statement by the Government representative to the Conference Committee, the Peruvian Government attaches primary importance to full employment within overall national policy. The Committee recalls that the Convention requires the declaration and pursuit, as a major goal, of an active policy designed to promote full, productive and freely chosen employment. This policy must be decided upon and kept under review within the framework of a coordinated economic and social policy (Articles 1 and 2 of the Convention). The Committee would therefore be grateful if the Government would indicate in its next report the manner in which account is taken of the effects on employment of measures designed to promote economic development or achieve economic and social objectives (investment policy; fiscal and monetary policies; trade policy; prices, incomes and wages policies). For the preparation of its report, in addition to the contribution made by the Ministry of Labour, the Government may consult other ministries concerned with economic matters in order to enable the Committee to undertake a better examination of the employment policy that is being implemented.

3. The Government's report contains detailed information on the various programmes implemented by the Ministry of Labour and Social Protection. The Committee once again notes the progress achieved by the Programme for the Promotion of Self-Employment and Micro-Enterprises (PRODAME), the objective of which is to promote the generation of productive employment through the development in the formal sector of micro- and small enterprises by reducing the cost and time required to establish such economic units. The Government provides information on the establishment of the Micro-Enterprise Bank S.A. (MIBANCO). The Committee notes that the micro- and small enterprise sector accounts for 98 per cent of the enterprises in the country, which generate 75 per cent of national productive employment and contribute 42 per cent of the gross domestic product. The Committee would therefore be grateful if the Government would continue providing information on the measures taken in the framework of PRODAME and MIBANCO to increase employment opportunities and improve conditions of work in the informal sector, and to facilitate its progressive integration into the national economy. The Government may consider it appropriate to refer to the relevant provisions of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169), and the Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998 (No. 189), which may provide guidance for its action. In this respect, it would also be useful to be provided with detailed information on the situation, level and trends of employment, unemployment and underemployment, not only in urban sectors, but also in rural areas of the country.

4. The Government provides information in its report on the various programmes to train young people between 16 and 25 years of age, and on vocational training and pre-employment work experience contracts. The Committee raised the issue in its previous comments of the employment of young persons and workers wishing to return to the labour market. The Committee recalls that it requested an evaluation of the results obtained by the measures which had been adopted or were envisaged to guarantee that the application of the Employment Promotion Act with respect to employment contracts subject to special conditions, the promotion of self-employment and special enterprises, contributes effectively to the creation of new jobs. In the context of a representation made under article 24 of the ILO Constitution, it expressed concern at the considerable extension of vocational training contracts for young people, in view of the increase in the age limit to 25 years, the extension of their duration to 36 months and the increase in the maximum level of personnel authorized per enterprise to 30 per cent. The Committee trusts that the Government will continue providing information on the results achieved by programmes to promote the employment of young people. As suggested in Paragraph 17 of Recommendation No. 169, the Committee hopes that the Government will "carefully monitor" the measures taken to ensure that they result in "beneficial effects on young people's employment" and that they are consistent with the "conditions of employment established under national law and practice". The Committee once again emphasizes that it is the responsibility of the Government to ensure that the measures adopted for the vocational training of young persons do not lose sight of their objective to insert, in an effective and lasting manner, those trained into suitable employment, and it requests the Government to describe the measures taken to this effect. Please also describe the manner in which the programmes which are implemented contribute effectively to the creation of new jobs, rather than to the redistribution of existing employment under more precarious conditions.

5. In its previous comments, the Committee referred to the fact that, as pointed out by the Governing Body, the Government has made the adjustment to the labour legislation a central component of its employment policy. The Committee notes that the Conference Committee considered that the effects of applying the employment promotion legislation should be carefully assessed with a view to making the necessary adaptations. The Committee also notes that a Government Representative stated that the modernization of industrial relations had involved the creation of a sufficiently flexible legal framework which promoted the efficient operation of the labour market and facilitated the achievement of higher levels of productivity by enterprises, thereby providing incentives for private investment and consequently for the creation of new jobs. The Committee refers to point 2 of this observation and considers it necessary in this context to recall once again that, in accordance with the Convention, the employment policy shall take due account of "the mutual relationships between employment objectives and other economic and social objectives" and that an employment policy, within the meaning of the Convention, should not have the effect of, directly or indirectly, prejudicing the rights protected by international labour standards. The Committee trusts that the Government will endeavour to ensure an equitable distribution of the social costs and benefits of its economic programme and that, in its next report, it will be in a position to provide information on the measures adopted to attenuate any negative effects on employment of the current economic reforms.

6. Article 3. The Conference Committee concluded by expressing the firm hope that the Government would take without delay appropriate legal and practical measures to ensure that the social partners are consulted on the measures to be taken to promote employment. In its report, the Government states that it is keeping open the possibility of participation of the social partners in respect of employment policies. Draft legislation is published in the Official Journal and a system of electronic mail has been established in the Congress of the Republic so that any organization or association can have access to the information in question. The Committee is bound to recall that the consultations required by this important provision must be held with the representatives of the persons affected by employment policy as a whole. The Committee urges the Government to establish effective, full and concrete social dialogue as a prerequisite for the success of its employment policies. The Committee is bound to emphasize the particular importance of this provision, which requires consultations with the representatives of the persons affected by employment policy "with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support for such policies". In view of the characteristics of the economically active population in Peru, the consultations required by this provision of the Convention should also involve representatives of persons who work in the rural sector and the informal sector. The Committee once again urges the Government to give effect to this fundamental provision of the Convention, both in the formal sector and in the informal sector of the labour market.

7. The Committee notes with interest the information provided by the Government on ILO technical advisory and technical cooperation activities in the field of employment promotion. It requests the Government to continue supplying this information, and to indicate the action that has been taken or is envisaged, as a result of the ILO's assistance, to improve the application of the Convention (Part V of the report form).

8. The Committee notes the communication of the American Secretariat of the World Federation of Trade Unions (WFTU), conveying the concerns of the Peruvian Federation of Telephone Workers with regard to measures related to employment and the dismissals occurring as a consequence of the privatization and restructuring of the telecommunications sector. The observations of the organizations of workers referred to above were transmitted by the Office in November 1998 to the Government. The Committee invites the Government in its next report to make its own comments on the matters raised by the WFTU and their consequences on employment policy.

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

1. The Committee took note of the Government's report relating to the period ending September 1997 which was supplied in reply to the Committee's previous observation. The Committee also notes a communication from the Trade Union of Civil Construction Workers of Lima and Balnearios on application of the Convention.

2. The Government states that in a context characterized by strong economic growth since 1993 and remarkable progress in the fight against inflation, the evolution of the labour market has been relatively favourable. It states, on the basis of statistics relating to the Lima metropolitan area, that there is a slight reduction in unemployment and underemployment rates as well as significant growth in suitable employment as a share of total employment. It indicates, furthermore, that real wage increases over the period are an indication of a more general improvement in the employment situation. The Government considers, however, that because of the extent and structural nature of labour market problems, a large proportion of the active population will continue to be engaged in the informal sector. In this regard, the Committee notes that national surveys on employment have been carried out since 1996 for the purpose of collecting the necessary information on the situation of employment, underemployment and unemployment in the country. It would be grateful if the Government would supply in its next report the data collected through these surveys and continue to supply information on any new measures taken with a view to improving knowledge of labour market trends. The Committee also requests the Government to supply more detailed information on the manner in which the measures taken concerning general economic policy contribute to promoting productive and freely chosen employment and are decided on and kept under review "in the framework of a coordinated economic and social policy", in accordance with Articles 1 and 2 of the Convention.

3. The Committee notes the information on the implementation of various labour market policy programmes supplied at its request. Noting particularly the importance of the Programme for the Promotion of Self-employment and Micro-enterprises (PRODAME), it requests the Government to continue to supply full information on the programmes implemented and their results. The Committee recalls, furthermore, that subsequent to the recommendations approved by the Governing Body at its 267th Session (November 1996) in regard to its tripartite examination of representations alleging non-observance of the Convention, it also requested the Government to provide full information on any available surveys on the results obtained by the youth training agreements and any measures taken or envisaged to ensure that the application of the legislative provisions with respect to employment contracts subject to special conditions, the promotion of self-employment and special enterprises contribute effectively to the creation of new jobs. In regard to measures for the integration of young people, the Committee notes the detailed statistics on the number and duration of vocational training agreements and pre-work traineeships concluded. It recalls, nevertheless, the concern expressed by the Governing Body Tripartite Committee regarding the considerable extension of the possibilities of working under youth vocational training agreements by raising the age limit to 25 years, extending its maximum duration to 36 months and raising the maximum number authorized by the enterprise to 30 per cent. The Committee hopes that the Government will take advantage of its good statistical information on the use of such contracts to proceed, as suggested in paragraph 17 of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169), by careful monitoring "to ensure that they result in beneficial effects on young people's employment" and that it is consistent "with the conditions of employment established under national law and practice". The Committee emphasizes that it is the Government's responsibility to ensure that this training arrangement does not lose sight of its objective to insert, in an effective and lasting way, those trained into suitable employment, and requests the Government to describe the measures taken to this effect. Similarly, the Committee notes the statistical data regarding employment contracts subject to special conditions, but regrets that the Government does not provide the information requested on the measures taken or envisaged to ensure that the application of the provisions concerning these contracts and enterprises contributes effectively to the creation of new jobs rather than to the redistribution, on less secure conditions, of existing jobs.

4. More generally, the Committee notes, following the Governing Body, that the Government has made adjustments to the labour legislation a vital component of its employment policy. It notes that, according to the Trade Union of Civil Construction Workers of Lima and Balnearios, the systematic "flexibilization" of labour law carried out since the adoption of the 1991 Promotion of Employment Act has had a major effect of increasing insecurity and jeopardizing the rights of workers without leading to the creation of new jobs. In this matter, the Committee recalls that under the Convention the employment policy shall take due account of "the mutual relationships between employment objectives and other economic and social objectives", and that a labour policy in keeping with the Convention should not result in jeopardizing, directly or indirectly, the rights protected by other international labour Conventions. It trusts that, with this in mind, the Government will take care to ensure an equitable distribution of the costs and social advantages of the reform under way among all the persons affected.

5. Article 3. The Government indicates that it has supplied the information requested on the consultations held to give effect to this provision of the Convention in its report on the application of the Employment Service Convention, 1948 (No. 88). As the Committee notes in its observation on that Convention, however, the Government has made no progress in establishing the advisory committees to the public employment service. In addition, the Committee recalls that the application of the provisions of Convention No. 88 providing for the cooperation of representatives of employers and workers in the organization and operation of the employment service and in the development of employment service policy does not itself give effect to the provisions of this Article of Convention No. 122, which provides that representatives of the persons affected by the measures shall be consulted concerning all employment policies, not only the public employment service policy. In the Committee's view, the absence of any consultation of the social partners on employment policies is of particular concern at a time when the Government is implementing wide-ranging reforms of labour law for the stated aim of promoting employment. In this respect, the Committee believes that the Government should consider establishing broad social dialogue as the necessary prerequisite for the success of its policy. The Committee is bound to emphasize once again the particular relevance of this provision which requires that representatives of all the persons affected should be consulted on employment policies "with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support for such policies". The Committee trusts that the Government will take the necessary measures to this effect without delay and that it will find proof of real progress in the next report.

6. Finally, the Committee was informed of the activities of ILO advice and technical cooperation in the field of promotion of employment. It would be grateful if the Government would supply information on the manner in which it feels these activities can contribute to better application of the Convention (Part V of the report form).

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

The Committee notes the Government's report. It notes, furthermore, that at its 267th Session (November 1996), the Governing Body approved the report of the Committee which it had instructed to examine the claims presented under article 24 of the ILO Constitution by the Latin American Central of Workers (CLAT) and the Single Confederation of Workers of Peru (CUT), alleging non-observance by Peru of Conventions Nos. 11, 87, 98, 100, 111 and 122. The Governing Body requested the Government to supply in its next report submitted under article 22 of the Constitution on the application of Convention No. 122 full information on:

(i) any available surveys on the results obtained by the youth training agreements (sections 8 to 16 of the Promotion of Employment Act), in which reference is made to the long-term integration of those concerned, and to the possible repercussions of these programmes on the employment of other age categories in the active population;

(ii) the measures taken or foreseen to ensure that the application of the provisions of the Promotion of Employment Act with respect to employment contracts subject to special conditions (sections 87-117), the promotion of self-employment (sections 137-144) and special enterprises (sections 165-174) contribute effectively to the creation of new jobs;

(iii) the effect given to the provisions of Article 3 of the Convention.

The Committee asks the Government to supply the information requested in order to allow it to resume examination of the application of the Convention at its next session.

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

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

1. The Committee notes the Government's report for the period ending June 1994 and the information provided in writing and orally by the Government to the Conference Committee on the Application of Standards at the June 1994 Session of the Conference, as well as the subsequent discussion. However, it notes that the report is mainly confined to repeating the information supplied to the Conference and that it does not provide the "relevant responses" promised by the Government representative.

2. The Government refers in its report to a statement by the Minister of Labour that the increased production capacity of the agricultural, mining and manufacturing sectors had resulted in the creation of 180,000 jobs during the first half of 1994 (the objective was 500,000 by end of 1994). According to the information available to the ILO, the jobs that have been created concern mainly unskilled workers in the informal sector. They offer fewer opportunities to skilled workers seeking to find work in the modern sectors of the economy and are generally in small enterprises in which social protection is limited (particularly with regard to trade union rights and social security). Measures to balance the budget and the privatizations carried out reduced the budget deficit to 1.4 per cent of GDP in 1993, compared with 4.5 per cent in 1990, and explain why all the jobs created in the modern sectors of the economy during the reporting period were in the private sector. However, despite the economic recovery, the urban unemployment rate has remained at around 10 per cent due to the difference between the changing rates of the supply and demand for labour. Moreover, it would appear to be the rapid growth of the informal sector (in which over 40 per cent of the active population works) that has made it possible to avoid a substantial increase in unemployment.

3. The Government also provided the Conference Committee with information on the various programmes undertaken to promote the vocational training of young persons, including through pre-vocational internship programmes, self-employment and microenterprises. The Government has endeavoured to implement a programme to develop public employment services and vocational training at the regional level, although it is still encountering difficulties in this respect. The Committee also notes the objections raised during the discussion in the Conference Committee against the measures which have been taken, particularly with regard to young persons, within the context of the Employment Promotion Act; it was emphasized that this system did not create jobs, but allowed enterprises to downgrade workers to subsidiary jobs, without employment stability, at a lower cost and without any protection.

4. The Committee notes that the achievement of the objectives of the Convention, namely the promotion of full, productive and freely chosen employment, continues to give rise to particular difficulties. With reference to its previous observation, it recalls the importance that it attaches to promoting a fair distribution of the social costs and benefits of structural adjustment in order to ensure the effectiveness of employment policy, and notes that this was also emphasized by the Conference Committee. It also stresses the idea expressed at the Conference that the objectives of full employment and social protection need not be contradictory. The Committee hopes that the next report will contain the information required under the report form on the results obtained in terms of employment by overall and sectoral development policies (investment policy; fiscal and monetary policies; trade policy; prices, incomes and wages policies). Furthermore, it trusts that the Government will be in a position to supply further information on the various employment promotion programmes undertaken, with an indication of the extent to which they have made it possible for the principal categories of workers concerned, such as women, young people seeking their first job and informal sector workers, to find lasting employment. Please also indicate whether the objectives of government plans to promote employment in metropolitan Lima and the other regions of the country have been or are being achieved.

5. The Committee notes the statement by the Minister of Labour transmitted with the Government's report relating to the establishment of a National Commission on Employment and Wage Statistics, which should receive the technical support of the ILO. Furthermore, measures were announced at the Conference to extend the geographical scope of household surveys. The Committee hopes that the Government will be able to provide more detailed information in future reports on the situation, level and trends of employment, unemployment and underemployment for the whole of the country and all sectors. It would also be grateful if the Government would indicate the action taken in relation to any ILO technical cooperation in these fields, especially with a view to facilitating the application of the Convention.

6. The Committee notes the Government's indication that the opinion of the persons concerned is sought when evaluating programmes undertaken in the context of employment policy and proposing necessary measures. As emphasized by the Conference Committee, the Committee of Experts wishes to recall the crucial importance of the consultation of national employers' and workers' organizations envisaged in Article 3 of the Convention in order to deal with economic and social problems, as well as for the declaration and application, "as a major goal", of an active employment policy, "within the framework of a coordinated economic and social policy". With reference to its previous comments and the concern expressed in this respect by several workers' organizations, as well as the Committee's observation this year on the Employment Service Convention, 1948 (No. 88), the Committee would be grateful if the Government would provide any relevant information on the consultations held with the representatives of all the persons affected, such as the representatives of employers' and workers' organizations and the representatives of workers in the rural and informal sectors, with a view to giving full effect to this essential provision of the Convention, with an indication of the manner in which their experience and views have been taken into account in order to obtain their full collaboration in formulating employment policy measures and securing support for these measures.

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

1. In its 1993 observation, the Committee said that it would postpone examination of the Government's report received in February 1993. The Committee notes the information, which is closely linked to employment policy, contained in the Government's reports on the application of the Unemployment Provision Convention, 1934 (No. 44) and of the Employment Service Convention, 1948 (No. 88) (see the observations of 1993 and 1994, respectively, on these Conventions).

2. In its report on the application of Convention No. 122, the Government refers to the adoption in November 1991 of the Employment Promotion Act to which the Committee had already referred (see point 2 of the 1992 observation) as being the principal aspect of structural reforms. The Government states that it has made employment an explicit objective of economic policy and stresses that it is concerned with the employment of the least-protected categories of the population. The Government recalls the economic circumstances in 1990-91 which led it to adopt a stabilization and structural adjustment programme which includes restrictive budgetary and monetary policy measures, the liberalization of international trade, and making the world of work more flexible. The Government states that the above circumstances affected employment in terms of the level of absorption and utilization of manpower. The Committee notes from the available statistics for Lima that only 15 per cent of the active population have suitable employment, and that 75 per cent are affected by underemployment, the remaining 10 per cent being unemployed. The situation is particularly worrying for women workers, young people in the 14 to 24 age group and older workers of over 45 years. The negative effects of structural adjustment on employment and incomes have already been commented on by the General Confederation of Peruvian Workers (CGTP) in its communication of 1992 referred to in the Committee's previous observation. The Committee refers to part IX of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169) and reminds the Government of the objective of promoting a fair distribution of the social costs and benefits of structural adjustment, in order to ensure the effectiveness of employment policy. With reference to its previous assessments and comments, the Committee is bound once again to express the hope that the Government will continue to make every effort to declare and pursue, "as an essential objective", an "active" employment policy within the framework of a coordinated economic and social policy (Articles 1 and 2 of the Convention). The Committee notes in this connection that the new political Constitution of Peru, promulgated in December 1993, establishes that "work is a duty and a right", and "the basis of social wellbeing and a means of personal fulfilment" (article 2), and that "the State shall promote conditions for social and economic progress, in particular, by means of policies to promote productive employment and education (article 23(2)). The Committee notes that the Act of November 1991 and its regulations (adopted in April 1993), contain a set of measures to promote employment and vocational training, particularly for young people, and would be grateful if the Government would provide detailed information with its next report on programmes implemented under the new legislation and the results obtained. The Government states that these programmes are limited for the time being because of the economic recession. With regard to the measures to make the labour market more flexible, which constitute a large section of the measures set out in the Employment Promotion Act (and which the CGTP criticizes in the above-mentioned communication), the Committee would like to draw the Government's attention to certain provisions of related international labour instruments that provide for the protection of workers against the use of contracts which aim to avoid the protection prescribed by the legislation (see Article 2, paragraph 3, of Convention No. 158 and Paragraph 3 of Recommendation No. 166, concerning termination of employment, 1982) - both of which are referred to in the 1991 presentation of the objectives of the Employment Promotion Act.

3. With its report, the Government provides data from the household survey conducted in Lima which accounts for 28.7 per cent of the population of the country. The Committee asks the Government to provide information in its next report on the measures taken to collect and analyse information and statistical data on not only the urban but also the rural and national labour markets, which are necessary, as Recommendation No. 122 recalls, as a basis for the general and specific measures to be taken within the framework of the employment policy. It hopes that the Government will be able to provide information in its next report on regional, social and economic plans and programmes to promote employment, and on the situation, level and trends in employment in the other departments of the country.

4. In its 1993 observation, the Committee noted the comments made by workers' organizations, expressing concern at the deterioration in the labour market, employment policies and the difficulties of social dialogue. With reference to the points already raised, the Committee would be grateful if in its next report, the Committee would provide information, in connection with Article 3 of the Convention, on how representatives of the persons affected, particularly representatives of employers and workers, are consulted on employment policy, indicating, in particular, whether such consultations are extended to representatives of other sectors of the active population such as the rural and informal sectors. With regard to the purpose of such consultations, the Committee recalls that the Convention provides that representatives of those affected "shall be consulted ...] with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support for such employment] policies".

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

1. The Committee notes the communications from the following workers' organizations: the Fishermen's Union of Chimbote, dated 9 September 1992; the Single Union of Workers at Minero Perú, S.A., dated 1 June 1992; the General Confederation of Workers of Peru, dated 6 June 1992, which comments, among other matters, on the impact of structural adjustment on employment and income; the Federation of Workers of the Tejidos la Unión Ltda. Factory, S.A. ("Fede Unión"), dated 22 June 1992; the Union of Workers of Public Registers, dated 22 June 1992, in which reference is made to the impact of the reorganization of the National Office of Public Registers; and the Union of Employees of Hierro Perú, dated 14 September 1992.

2. The Committee notes the Government's observations received in February 1993 in relation to the points raised by the Federation of Workers of the Tejidos la Unión Ltda., S.A. Factory ("Fede Unión") and by the Union of Workers of Public Registers. With reference to the comments made by the organization of workers of the National Office of Public Registers (ONARP), the Government states that it inherited a public administration which was too large and inefficient, resulting in more precarious jobs with low levels of productivity. According to the Government, it was necessary to undertake a reorganization of the ONARP. The workers affected will be relocated to other state bodies, since various measures have been adopted within the framework of the Act to promote employment (Legislative Decree No. 728) to provide jobs which offer an adequate living standard.

3. The Committee notes the Government's report received on 23 February 1993. The Government supplies detailed information on the application of the Convention and information in reply to the Committee's previous comments in 1992. The Committee proposes to postpone until its next session in March 1994 its examination of the information contained in the above report. The Committee hopes that in the meanwhile the Government will consider it appropriate to make its observations on the other comments by workers' organizations, which note their concern at the deterioration in the labour market.

Direct Request (CEACR) - adopted 1992, published 79th ILC session (1992)

The Committee refers to its observation and would be grateful if the Government would provide additional information on the following points in its next report:

1. In its previous comments, the Committee noted the information provided by the Government concerning the employment programmes implemented by the National Planning Institute (People's Cooperation) and the regional development corporations. The Committee notes that new special employment programmes are to be developed in the framework of the Employment Promotion Act. It hopes that the Government will be able to provide information on the generation of productive and lasting employment achieved by the above employment programmes.

2. Please indicate the procedures whereby the experience and views of the beneficiaries of the special employment programmes are taken into account in formulating and implementing employment policy. Please also indicate whether formal consultative procedures have been established for this purpose (Article 3).

3. The Committee refers to the Government's efforts to support the generation of productive employment in the urban informal sector (incentives for small and medium-sized enterprises, micro-enterprises, workers' cooperatives) through measures to promote and provide basic and specialised training. The Committee is aware of the particular problems of the informal sector and that it can make a substantial contribution to employment. It recalls that in its General Survey of 1991, Human resources development, it dealt in detail with the question of the importance of linking technical and occupational education and training with employment prospects. The Committee asks the Government, as it did in point 2 of its direct request of 1991, to provide information on the results of the measures adopted to coordinate education and training policies with prospective employment opportunities (see the report form under Article 1).

4. The Committee takes note of a communication dated 9 September 1991 from the fishermen's unions of Chimbote and Anexos on the situation of unemployed fishermen. It would be grateful if the Government would provide information or make any comments it deems appropriate on the questions raised.

5. Part V of the report form. Please indicate the action undertaken as a result of the advice provided, or the technical cooperation projects on employment executed, by the ILO.

Observation (CEACR) - adopted 1992, published 79th ILC session (1992)

1. According to the information supplied by the Government in its report (received in March 1991), the labour market situation is "fairly critical", with a high rate of underemployment which affects 75 per cent of the economically active population, and small and medium-sized enterprises supplying the domestic market are the sector most affected by the economic recession. The new national authorities have set five basic economic policy objectives: to close the budget deficit, to stop issuing money as a means of financing the public sector, to realign relative prices, to restructure wage levels and to revitalise certain sectors of the productive apparatus with a view to stimulating the other sectors. The Government hopes that these economic policy measures will step up job creation and will lead to the recovery of the purchasing power of the workforce. Social policy measures being implemented since August 1991 include an emergency programme to generate productive employment. The programme aims to provide occupational and pre-professional training for young people and to support small enterprises and micro-enterprises. The Government points out that young employees and women are the most affected by the employment problem. It also indicates that the State will promote the integration of these socially underprivileged groups by providing better job opportunities so that they can attain a higher standard of living.

2. The Committee notes that by virtue of Act No. 25327, of 14 June 1991, Congress had empowered the Executive to legislate on matters relating to employment promotion, amongst others. Legislation adopted includes the Employment Promotion Act (Legislative Decree No. 728, of 8 November of 1991). The Legislative Decree's objectives are to "promote large-scale access to productive employment as part of the overall economic policy and through special employment programmes". In addition, it introduces major innovations with a view to greater flexibility in employment. The Committee notes that the statement of the grounds for the adoption of the Legislative Decree mentions explicitly, amongst other reasons, the application of the criteria laid down in the Termination of Employment Convention, 1982 (No. 158), particularly those concerning procedures for the reduction of personnel. In the framework of the Employment Promotion Act, the Ministry of Labour and Social Development is to provide for special incentives in three areas: (i) programmes for women with family responsibilities, unemployed workers experiencing difficulties in finding employment and disabled workers; (ii) programmes for the reconversion of enterprises in the urban informal sector; (iii) programmes for the promotion of self-employment.

3. As it has for several years, the Committee can but encourage the Government to pursue its endeavours to increase employment and improve living standards for the most vulnerable categories of the population. It also reiterates its concern at developments in the economic situation, which is not conducive to the achievement of full and productive employment. The Committee notes that the Government has repeatedly referred to full and productive employment amongst the objectives of its labour and economic policy instruments. The Committee hopes that in its next report, the Government will indicate the extent to which its employment objectives have been attained, specifying how it has been possible to satisfy the needs of the specific categories of workers affected by structural adjustment measures

4. The Committee raises other, more specific points concerning the application of the Convention in a request addressed directly to the Goverment.

Direct Request (CEACR) - adopted 1991, published 78th ILC session (1991)

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

1. The Committee notes that the Government planned to submit an additional report containing information on the various employment programmes implemented by the National Planning Institute (People's Co-operation) and the regional development corporations. The Committee refers to its observation, and trusts that detailed information will be provided on the generation of productive and lasting employment achieved by the various programmes mentioned by the Government in its report. Please supply, in so far as they are available, copies or extracts of reports, studies and inquiries, statistical data, etc. concerning the achievements of such programmes in meeting the income and employment needs of the urban informal sector and the areas most affected by unemployment and underemployment (Part VI of the report form).

The Committee would also be grateful if the Government would include particulars of the way in which effective co-ordination is secured between the various government, national and regional services involved in the different official employment programmes. Please indicate also whether procedures have been set up for consultations with the beneficiaries of the programme (Article 3 of the Convention).

2. The Committee notes from the indications in the Government's report that there are three fundamental aspects involved in the matching of effective training of the labour force and dynamic production: redefining the country's technological options, human resource planning and training, and the restructuring of the education system. Please continue to refer to these three factors, and in particular to the measures adopted to co-ordinate education and vocational training policies with employment prospects and opportunities (see the report form under Article 1).

3. Please describe the procedures adopted to ensure that the effects on employment of measures taken to promote economic objectives receive due consideration, and that the principal measures of employment policy are decided on and kept under periodical review within the framework of a co-ordinated economic and social policy (Article 2).

4. Please continue to provide information on projects designed to meet the employment needs of particular categories of workers, particularly women, stating as far as possible the number of enterprises created and of persons who have benefited from the programmes for the promotion of women in economic activity.

5. Please provide information on the results achieved by the Project for Social Development and Employment in Urban and Rural Communities (PRODESE) and by the Institute for the Development of the Informal Sector (IDESI) in promoting productive employment in the informal sector. The Government may wish to consult the provisions concerning the informal sector contained in Part V of Recommendation No. 169.

6. Part V of the report form. Please indicate the action undertaken as a result of the technical co-operation projects on employment executed by the ILO.

Observation (CEACR) - adopted 1991, published 78th ILC session (1991)

The Committee notes that the Government's report has not been received. It must therefore repeat its previous observation which read as follows:

1. The Committee notes the detailed report supplied by the Government for the period ending 30 June 1988. The Government has been pursuing an economic policy since 1985 designed to promote the expansion of internal demand and the full exploitation of existing capacity to reactivate production, increase employment and improve wages and income distribution. In order to encourage the integration of the workforce into the labour market, the Government has carried out specific job-creation programmes, such as the Temporary Income Support Programme (PAIT), which is designed to increase the income from employment of the inhabitants of marginal urban areas, and the Emergency Employment Programme (PROEM), which is designed to facilitate the recruitment of new workers on a fixed-term basis. 2. The information supplied in the Government's report illustrates the positive results of this strategy during the years 1986-87. The rapid growth of the gross domestic product (8.3 per cent and 6.9 per cent in 1986 and 1987, respectively) resulted in higher levels of employment, while the rates of unemployment and underemployment decreased. In Metropolitan Lima, the unemployment rate was reduced to 5.4 per cent in 1986 and 4.8 per cent in 1987. From the second half of 1987, the pace of production began to decrease as a result of the progressive exhaustion of the existing capacity in a number of industrial sectors, the lower availability of the foreign exchange needed to provide the inputs for industry and the high dependence on foreign inputs, capital and technology. This gave rise to strong inflationary pressure due to excess demand. In 1988 the Government forecast a growth rate for the GDP of 2.9 per cent. Nevertheless, according to the National Planning Institute estimates referred to in the Government's report, it was forecast that there would be a fall in the GDP (of between 8 and 10 per cent in 1988 in relation with 1987) and a marked deterioration in the employment situation and in real incomes. The most recent data available to the Office, and particularly the information supplied by the Regional Employment Programme for Latin America and the Caribbean (PREALC), which the Committee notes, has confirmed these forecasts and trends for 1988. 3. As regards its medium-term policy, the Government supplies information concerning the objectives and strategy set out in the 1986-90 Plan. The creation of more than 1 million jobs has been envisaged, of which 500,000 temporary jobs are in the context of the PAIT. Indeed, considering the limitations of the productive sector to absorb the wide margin of unemployment that exists and the additional cohorts of workers on the labour market each year, the Government states that it has become indispensable to pursue the state programmes for the generation of employment and to support the informal and rural sectors during this period. The urban informal sector in particular, according to the Government, accounts for 40.9 per cent of the total economically active population and has an important role in the generation of income and jobs and has therefore been assigned particular priority in dealing with its problems. In this connection, the Government is implementing the Social and Job Development Project (PRODESE) to improve terms and conditions of employment, productivity and the incomes of those employed in the urban informal sector. Other important objectives for 1986-90 are public investment, with priority being given to labour-intensive projects, the realigning of technical options and human resource planning. 4. The Committee takes due note of the information supplied by the Government in its report and of its point-by-point reply to the comments made in its observation and direct request in 1988. Over recent years, particular efforts have been made to increase the employment and the living standards of the most vulnerable categories of the population. The Committee is nevertheless concerned at the development since 1988 of the economic situation, which is characterised by recession, inflationary pressure, the application of austerity measures and their effects on employment, low labour productivity and low levels of income, which are concentrated in the urban informal sector and in rural areas. In this difficult situation for the application of the Convention, the Committee trusts that the Government will continue to make every effort to declare and pursue, as a major goal, an active policy designed to promote full, productive and freely chosen employment. The Committee would be grateful if the Government would continue supplying information on the extent to which the employment objectives included in its development plans and programmes are being attained and on any particular difficulties that have been encountered and the principal policies that have been applied in the sense of Articles 1, 2 and 3 of the Convention. 5. Other more specific matters concerning the application of the Convention are raised in a request that is being addressed directly to the Government.

Direct Request (CEACR) - adopted 1990, published 77th ILC session (1990)

The Committee refers to its previous comments, and requests the Government to provide additional information on the following points in its next report.

1. The Committee refers to points 2 and 6 of the 1988 direct request and notes that the Government planned to submit an additional report containing information on the various employment programmes implemented by the National Planning Institute (People's Co-operation) and the regional development corporations. The Committee refers to its observation, and trusts that detailed information will be provided on the generation of productive and lasting employment achieved by the various programmes mentioned by the Government in its report. Please supply, in so far as they are available, copies or extracts of reports, studies and inquiries, statistical data, etc. concerning the achievements of such programmes in meeting the income and employment needs of the urban informal sector and the areas most affected by unemployment and underemployment (Part VI of the report form).

The Committee would also be grateful if the Government would include particulars of the way in which effective co-ordination is secured between the various government, national and regional services involved in the different official employment programmes. Please indicate also whether procedures have been set up for consultations with the beneficiaries of the programme (Article 3 of the Convention).

2. The Committee notes from the indications in the Government's report that there are three fundamental aspects involved in the matching of effective training of the labour force and dynamic production: redefining the country's technological options, human resource planning and training, and the restructuring of the education system. Please continue to refer to these three factors, and in particular to the measures adopted to co-ordinate education and vocational training policies with employment prospects and opportunities (see the report form under Article 1).

3. Please describe the procedures adopted to ensure that the effects on employment of measures taken to promote economic objectives receive due consideration, and that the principal measures of employment policy are decided on and kept under periodical review within the framework of a co-ordinated economic and social policy (Article 2).

4. Please continue to provide information on projects designed to meet the employment needs of particular categories of workers, particularly women, stating as far as possible the number of enterprises created and of persons who have benefited from the programmes for the promotion of women in economic activity.

5. Please provide information on the results achieved by the Project for Social Development and Employment in Urban and Rural Communities (PRODESE) and by the Institute for the Development of the Informal Sector (IDESI) in promoting productive employment in the informal sector. The Government may wish to consult the provisions concerning the informal sector contained in Part V of Recommendation No. 169.

6. Part V of the report form. Please indicate the action undertaken as a result of the technical co-operation projects on employment executed by the ILO.

Observation (CEACR) - adopted 1990, published 77th ILC session (1990)

1. The Committee notes the detailed report supplied by the Government for the period ending 30 June 1988. The Government has been pursuing an economic policy since 1985 designed to promote the expansion of internal demand and the full exploitation of existing capacity to reactivate production, increase employment and improve wages and income distribution. In order to encourage the integration of the workforce into the labour market, the Government has carried out specific job-creation programmes, such as the Temporary Income Support Programme (PAIT), which is designed to increase the income from employment of the inhabitants of marginal urban areas, and the Emergency Employment Programme (PROEM), which is designed to facilitate the recruitment of new workers on a fixed-term basis.

2. The information supplied in the Government's report illustrates the positive results of this strategy during the years 1986-87. The rapid growth of the gross domestic product (8.3 per cent and 6.9 per cent in 1986 and 1987, respectively) resulted in higher levels of employment, while the rates of unemployment and underemployment decreased. In Metropolitan Lima, the unemployment rate was reduced to 5.4 per cent in 1986 and 4.8 per cent in 1987. From the second half of 1987, the pace of production began to decrease as a result of the progressive exhaustion of the existing capacity in a number of industrial sectors, the lower availability of the foreign exchange needed to provide the inputs for industry and the high dependence on foreign inputs, capital and technology. This gave rise to strong inflationary pressure due to excess demand. In 1988 the Government forecast a growth rate for the GDP of 2.9 per cent. Nevertheless, according to the National Planning Institute estimates referred to in the Government's report, it was forecast that there would be a fall in the GDP (of between 8 and 10 per cent in 1988 in relation with 1987) and a marked deterioration in the employment situation and in real incomes. The most recent data available to the Office, and particularly the information supplied by the Regional Employment Programme for Latin America and the Caribbean (PREALC), which the Committee notes, has confirmed these forecasts and trends for 1988.

3. As regards its medium-term policy, the Government supplies information concerning the objectives and strategy set out in the 1986-90 Plan. The creation of more than 1 million jobs has been envisaged, of which 500,000 temporary jobs are in the context of the PAIT. Indeed, considering the limitations of the productive sector to absorb the wide margin of unemployment that exists and the additional cohorts of workers on the labour market each year, the Government states that it has become indispensable to pursue the state programmes for the generation of employment and to support the informal and rural sectors during this period. The urban informal sector in particular, according to the Government, accounts for 40.9 per cent of the total economically active population and has an important role in the generation of income and jobs and has therefore been assigned particular priority in dealing with its problems. In this connection, the Government is implementing the Social and Job Development Project (PRODESE) to improve terms and conditions of employment, productivity and the incomes of those employed in the urban informal sector. Other important objectives for 1986-90 are public investment, with priority being given to labour-intensive projects, the realigning of technical options and human resource planning.

4. The Committee takes due note of the information supplied by the Government in its report and of its point-by-point reply to the comments made in its observation and direct request in 1988. Over recent years, particular efforts have been made to increase the employment and the living standards of the most vulnerable categories of the population. The Committee is nevertheless concerned at the development since 1988 of the economic situation, which is characterised by recession, inflationary pressure, the application of austerity measures and their effects on employment, low labour productivity and low levels of income, which are concentrated in the urban informal sector and in rural areas. In this difficult situation for the application of the Convention, the Committee trusts that the Government will continue to make every effort to declare and pursue, as a major goal, an active policy designed to promote full, productive and freely chosen employment. The Committee would be grateful if the Government would continue supplying information on the extent to which the employment objectives included in its development plans and programmes are being attained and on any particular difficulties that have been encountered and the principal policies that have been applied in the sense of Articles 1, 2 and 3 of the Convention.

5. Other more specific matters concerning the application of the Convention are raised in a request that is being addressed directly to the Government.