Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Papua New Guinea (Ratification: 1976)

Replies received to the issues raised in a direct request which do not give rise to further comments (CEACR) - adopted 2019, published 109th ILC session (2021)

The Committee notes the information provided by the Government, which answers the points raised in its previous direct request and has no further matters to raise in this regard.

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

The Committee notes with regret that the Government’s report has not been received. It hopesthat the next report will contain full information on the matters raised in its previous comments initially made in 2012.

Repetition

Articles 1 and 3(2) of the Convention. Minimum wage fixing machinery. Further to its previous comment, the Committee notes the Government’s indications concerning the reactivation of the Minimum Wages Board and the adoption of Determination No. 1 of 2008, by virtue of which the national minimum wage was raised to 2.29 Papua New Guinean kinas (PGK) (approximately US$1.1) per hour and PGK100.08 (approximately $48.6) per week. The Committee understands that the previous lower youth wage for new entrants into the labour force between ages 16–21 has now been abolished. The Committee requests the Government to communicate the text of Minimum Wages Board Determination No. 1 of 2008 and to keep the Office informed as regards the forthcoming establishment of the Minimum Wages Board 2012 and any eventual readjustment of the statutory minimum wage.

In addition, the Committee notes that under section 42 of the Industrial Relations Act of 1962, the Head of State may disallow a minimum wage determination at any time, including those published in the National Gazette, if he/she considers that the determination is contrary to public policy or is not in accordance with the best interests of the country. The Committee also notes that under section 10 of the same Act, the participation of employers’ and workers’ representatives in the composition of the Minimum Wages Board seems to be conditional on whether the Head of State, who appoints the board members, considers that the Board should include such representatives for the purposes of the matter referred to it. Recalling the importance it attaches to the principle of full consultation and direct participation of social partners at all stages of the minimum wage fixing process, the Committee requests the Government to provide additional explanations on how these two provisions may be deemed consistent with the requirements of the Convention.

Article 4 and Part V of the report form. Enforcement measures –Application in practice. The Committee notes the Government’s statement that it intends to ratify Minimum Wage Fixing Convention, 1970 (No. 131), and that a proposal to this effect has been submitted to the National Tripartite Consultative Council for its consideration. The Committee requests the Government to keep the Office informed of any decision taken in this regard. It also requests the Government to provide up-to-date information on the manner in which this Convention is applied in practice, including statistics on the number of workers remunerated at the minimum wage rate, labour inspection results indicating the number and nature of any violations reported and the sanctions applied, as well as copies of reports or surveys prepared by, or submitted to, the Minimum Wages Board.

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

Articles 1 and 3(2) of the Convention. Minimum wage fixing machinery. Further to its previous comment, the Committee notes the Government’s indications concerning the reactivation of the Minimum Wages Board and the adoption of Determination No. 1 of 2008, by virtue of which the national minimum wage was raised to 2.29 Papua New Guinean kinas (PGK) (approximately US$1.1) per hour and PGK100.08 (approximately $48.6) per week. The Committee understands that the previous lower youth wage for new entrants into the labour force between ages 16–21 has now been abolished. The Committee requests the Government to communicate the text of Minimum Wages Board Determination No. 1 of 2008 and to keep the Office informed as regards the forthcoming establishment of the Minimum Wages Board 2012 and any eventual readjustment of the statutory minimum wage.

In addition, the Committee notes that under section 42 of the Industrial Relations Act of 1962, the Head of State may disallow a minimum wage determination at any time, including those published in the National Gazette, if he/she considers that the determination is contrary to public policy or is not in accordance with the best interests of the country. The Committee also notes that under section 10 of the same Act, the participation of employers’ and workers’ representatives in the composition of the Minimum Wages Board seems to be conditional on whether the Head of State, who appoints the board members, considers that the Board should include such representatives for the purposes of the matter referred to it. Recalling the importance it attaches to the principle of full consultation and direct participation of social partners at all stages of the minimum wage fixing process, the Committee requests the Government to provide additional explanations on how these two provisions may be deemed consistent with the requirements of the Convention.

Article 4 and Part V of the report form. Enforcement measures –Application in practice. The Committee notes the Government’s statement that it intends to ratify Minimum Wage Fixing Convention, 1970 (No. 131), and that a proposal to this effect has been submitted to the National Tripartite Consultative Council for its consideration. The Committee requests the Government to keep the Office informed of any decision taken in this regard. It also requests the Government to provide up-to-date information on the manner in which this Convention is applied in practice, including statistics on the number of workers remunerated at the minimum wage rate, labour inspection results indicating the number and nature of any violations reported and the sanctions applied, as well as copies of reports or surveys prepared by, or submitted to, the Minimum Wages Board.

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

The Committee notes the information contained in the Government’s report and wishes to draw attention to the following points.

Articles 1 and 3, paragraph 2(2), of the Convention. Minimum wage fixing machinery and participation of employers’ and workers’ organizations. Further to its previous comment on the lack of progress regarding the reactivation of tripartite consultations with a view to readjusting the national minimum wage rate, the Committee notes the Government’s statement that the Minimum Wages Board has not yet established a new minimum wage determination and therefore the national minimum pay rate remains unchanged since 1992. Recalling that minimum wage fixing may serve a meaningful purpose for poverty reduction and social protection only if it is perceived as a continuous process of social dialogue eventually leading to the review of the minimum wage floor in the light of the prevailing social and economic conditions in the country, the Committee requests the Government to supply detailed particulars on the role and functioning of the National Tripartite Consultative Council (NTCC) in the last five years and the practical manner in which the representative organizations of employers and workers concerned are expected to be associated in the establishment of the forthcoming minimum wage determination.

Article 3, paragraph 2(3). Differentiated minimum wage on the basis of age. In the absence of reply to its last comment on this point, the Committee reiterates its request for additional information concerning the possible reconsideration of the National Youth Wage Policy in the light of the principle of equal remuneration for work of equal value, and also bearing in mind that according to the Government’s indications the national youth rate does not apply in practice.

Article 5 and Part V of the report form. The Committee notes that for over 20 years no information of a general nature concerning the practical application of the Convention has been provided to the Office. It therefore requests the Government to supply in its next report up to date information including, for instance, the categories and approximate number of workers who are remunerated at the minimum wage rate, statistics on labour inspection results showing the number of infringements of the minimum wage legislation observed and sanctions imposed, copies of official reports or studies (e.g. national surveys of economic conditions, cost-of-living index) bearing on minimum wage policy, etc.

Finally, the Committee notes the Government’s statement that it is envisaging denouncing the Convention and looking at recently adopted Conventions that might be more practical and applicable to the overall labour situation in the country for adoption. In this connection, the Committee wishes to draw the Government’s attention to the conclusions of the ILO Governing Body on the continued relevance of the Convention based on the recommendations of the Working Party on Policy regarding the Revision of Standards (GB.283/LILS/WP/PRS/1/2, paragraphs 19 and 40). In fact, the Governing Body has decided that Conventions Nos 26 and 99 are among those instruments which may no longer be fully up to date but remain relevant in certain respects. The Committee therefore suggests that the Government should consider the possibility of ratifying the Minimum Wage Fixing Convention, 1970 (No. 131) which marks certain advances compared to older instruments on minimum wage fixing, for instance, as regards its broader scope of application, the requirement for a comprehensive minimum wage system, and the enumeration of the criteria for the determination of minimum wage levels. Recalling that as per established practice, Conventions Nos 26 and 99 will next be open to denunciation for a one-year period as from 14 June 2010 and 23 August 2013 respectively, the Committee requests the Government to keep the Office informed of any decision taken or envisaged in this regard.

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

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

Articles 1 and 3, paragraph 2(2), of the Convention. The Committee notes the explanations provided by the Government in its last report concerning the policy shift towards deregulation of the minimum wage, which was decided by the Minimum Wages Board in 1992, and subsequent developments. It also notes that the situation is currently at an impasse, because the National Tripartite Consultative Council (NTCC), which took over the question of the variation of the national minimum wage after the disallowance of the 2000 Minimum Wages Board Determination, is not able to agree on an interim minimum wage quantum. Under the circumstances, the Committee considers it appropriate to recall that the Convention is not an instrument of wage policy but rather an affirmation of the basic principles to be followed irrespective of the form or type of the minimum wage fixing machinery, which means that: (i) minimum wages must have force of law; (ii) they may not be subject to abatement; (iii) failure to apply them must be appropriately penalized; and (iv) the social partners must be fully consulted at all stages of the minimum wage-fixing process. Also recalling that minimum wage protection is relevant as a tool of social policy only if minimum wage rates are regularly adjusted in the light of the social and economic realities of the country, in order to ensure a decent standard of living to low-paid workers and their families, the Committee hopes that the Government will take all necessary steps to review existing minimum wage rates and reactivate tripartite consultations in accordance with the principles set out in the Convention.

Article 3, paragraph 2(3). The Committee notes that the national youth wage rate is 75 per cent of the national minimum wage and that this rate applies to young workers between 16 and 24 years of age. The Committee recalls in this respect that, although the Convention does not prohibit the fixing of different minimum wage rates on the basis of criteria such as age, wage levels should be determined primarily by reference to objective factors such as the quality and quantity of work in accordance with the principle of “equal remuneration for work of equal value”. Noting the Government’s statement in its last report that in practice youths are paid at almost the same wage rate as those workers on the national minimum wage rates, the Committee requests the Government to indicate the measures taken or envisaged to ensure that the national legislation is brought into line with national practice in this regard.

Article 5 and Part V of the report form. The Committee notes the Government’s indication in its last report that the national minimum wage rate remains unchanged, as fixed by the 1992 Minimum Wages Board Determination and increased by the Common Rule of 1999, or PGK24.68 per week (approximately US$7.5). The Committee also notes that according to inspection reports no worker is paid at the minimum wage rate and that even workers in the informal sector receive wages that are far higher than the minimum wage. The Committee requests the Government to continue to provide all available information on the manner in which the Convention is applied in practice, including statistical data on the number and categories of workers covered by relevant legislation, the evolution of minimum wage rates in relation to the evolution of economic indicators, the application of enforcement measures and the results obtained and any other particulars bearing on the method of determining and revising minimum wage rates.

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

The Committee notes the information supplied by the Government in reply to its previous comments.

Articles 1 and 3, paragraph 2(2), of the Convention. The Committee notes the Government’s explanations concerning the policy shift towards deregulation of the minimum wage, which was decided by the Minimum Wages Board in 1992, and subsequent developments. It also notes that the situation is currently at an impasse, because the National Tripartite Consultative Council (NTCC), which took over the question of the variation of the national minimum wage after the disallowance of the 2000 Minimum Wages Board Determination, is not able to agree on an interim minimum wage quantum. Under the circumstances, the Committee considers it appropriate to recall that the Convention is not an instrument of wage policy but rather an affirmation of the basic principles to be followed irrespective of the form or type of the minimum wage fixing machinery, which means that: (i) minimum wages must have force of law; (ii) they may not be subject to abatement; (iii) failure to apply them must be appropriately penalized; and (iv) the social partners must be fully consulted at all stages of the minimum wage-fixing process. Also recalling that minimum wage protection is relevant as a tool of social policy only if minimum wage rates are regularly adjusted in the light of the social and economic realities of the country, in order to ensure a decent standard of living to low-paid workers and their families, the Committee hopes that the Government will take all necessary steps to review existing minimum wage rates and reactivate tripartite consultations in accordance with the principles set out in the Convention.

Article 3, paragraph 2(3). The Committee notes that the national youth wage rate is 75 per cent of the national minimum wage and that this rate applies to young workers between 16 and 24 years of age. The Committee recalls in this respect that, although the Convention does not prohibit the fixing of different minimum wage rates on the basis of criteria such as age, wage levels should be determined primarily by reference to objective factors such as the quality and quantity of work in accordance with the principle of "equal remuneration for work of equal value". Noting the Government’s statement that in practice youths are paid at almost the same wage rate as those workers on the national minimum wage rates, the Committee requests the Government to indicate the measures taken or envisaged to ensure that the national legislation is brought into line with national practice in this regard.

Article 5 and Part V of the report form. The Committee notes the Government’s indication that the national minimum wage rate remains unchanged, as fixed by the 1992 Minimum Wages Board Determination and increased by the Common Rule of 1999, or PGK24.68 per week (approximately US$7.5). The Committee also notes that according to inspection reports no worker is paid at the minimum wage rate and that even workers in the informal sector receive wages that are far higher than the minimum wage. The Committee requests the Government to continue to provide all available information on the manner in which the Convention is applied in practice, including statistical data on the number and categories of workers covered by relevant legislation, the evolution of minimum wage rates in relation to the evolution of economic indicators, the application of enforcement measures and the results obtained and any other particulars bearing on the method of determining and revising minimum wage rates.

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

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

Article 1 of the Convention. The Committee notes that, although no time-limits were provided for in the national law, the Minimum Wages Board, as part of its function, sets the period for determining wage rates. Prior to 1992, the review period was three years. The Committee understands that the Minimum Wages Board has not been convened since 1993. However, the terms of reference for determining minimum wages have been drafted and the relevant instruments for convening the Board in 1996 have been issued.

The Committee requests the Government to indicate whether the Minimum Wages Board has been convened and, if so, to supply information on the results of this meeting. Alternatively, the Government is requested to specify which measures have been taken or are contemplated to ensure the meeting of the Minimum Wages Board.

Article 4, in conjunction with Part V of the report form. The Committee would be grateful if the Government would provide information on the effects given in practice to the Convention, for instance: (i) the minimum wage rates in force; (ii) the results of inspection; and (iii) any other data on minimum wages, such as statistics available on the number and categories of workers covered, violations and sanctions imposed.

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

The Committee notes the information supplied by the Government in its report.

Article 1 of the Convention. The Committee notes that, although no time-limits were provided for in the national law, the Minimum Wages Board, as part of its function, sets the period for determining wage rates. Prior to 1992, the review period was three years. The Committee understands that the Minimum Wages Board has not been convened since 1993. However, the terms of reference for determining minimum wages have been drafted and the relevant instruments for convening the Board in 1996 have been issued.

The Committee requests the Government to indicate whether the Minimum Wages Board has been convened and, if so, to supply information on the results of this meeting. Alternatively, the Government is requested to specify which measures have been taken or are contemplated to ensure the meeting of the Minimum Wages Board.

Article 4, in conjunction with point V of the report form. The Committee would be grateful if the Government would provide information on the effects given in practice to the Convention, for instance: (i) the minimum wage rates in force; (ii) the results of inspection; and (iii) any other data on minimum wages, such as statistics available on the number and categories of workers covered, violations and sanctions imposed.