Minimum Wage Fixing Convention, 1970 (No. 131) - Chile (Ratification: 1999)

Replies received to the issues raised in a direct request which do not give rise to further comments (CEACR) - adopted 2018, published 108th ILC session (2019)

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 2011, published 101st ILC session (2012)

Article 1(3) of the Convention. Categories of wage earners excluded from minimum wage coverage. The Committee notes the adoption of Act No. 20.524 fixing as from 1 July 2011 the national minimum wage (IMM) at 172,000 Chilean pesos (CLP) (approximately US$345) a month for workers aged between 18 and 65 years of age and CLP128,402 (approximately US$260) a month for workers under 18 or over 65 years of age. In addition, the Committee notes with interest the Government’s statement that, as from 1 March 2011, the IMM applies to domestic workers. The Committee recalls, in this respect, the recently adopted Domestic Workers Convention, 2011 (No. 189), in particular Article 11, which requires member States to take measures to ensure that domestic workers enjoy minimum wage coverage.

Article 2(1). Differentiated minimum wage based on age. The Committee notes the Government’s indication that the lower minimum wage rates applicable to young workers under 18 years of age and senior workers above 65 years of age are seeking to give an incentive and therefore promote the employment of these categories of workers. The Committee also notes, however, that in its final report published in June 2010 (p. 59), the Advisory Committee on Labour and the Minimum Wage expressed doubts as to the effectiveness of the policy of differentiated minimum wages on the basis of age. The Committee is bound to recall, in this respect, that although the Convention does not prohibit the fixing of lower minimum wage rates for workers on the basis of their age or disability, protective clauses should be adopted to guarantee them equal remuneration to that of other workers, provided that they perform work of a similar nature and meet the same requirements as to quantity and quality of work. The Committee therefore requests the Government to provide information on the measures taken or envisaged in order to ensure that the principle of equal remuneration for work of equal value is fully respected.

Article 3. Criteria for determining the level of the minimum wage. The Committee notes the Government’s indication that there are no legal provisions specifying the elements to be taken into consideration in establishing or readjusting minimum wage levels. The Committee notes also the recommendations of the Advisory Committee on Labour and the Minimum Wage according to which there is need to better evaluate indicators such as inflation, productivity, employment and poverty with a view to defining an appropriate minimum wage policy. In addition, the Advisory Committee suggests specific modifications to the existing minimum wage-fixing process. Furthermore, the Advisory Committee points at the insufficiency of the minimum wage to cover the basic needs of a representative household of 4.5 persons. Recalling that the Convention requires not only the basic needs of the workers but also those of their families to be taken into consideration as far as possible and appropriate in relation to national practice and conditions, the Committee requests the Government to provide information on any further developments following up on the recommendations of the Advisory Committee on Labour and the Minimum Wage.

Article 4. Consultations with social partners. Further to its previous comment, the Committee notes the Government’s indication that on the occasion of the annual review of the national minimum wage a Tripartite Committee is convened with the direct participation of the most representative employers’ and workers’ organizations. The Committee requests the Government to provide full particulars on the composition and mandate of the Tripartite Committee, and to transmit a copy of the legal text regulating its operation.

Part V of the report form. Practical application. The Committee notes the statistical information provided by the Government concerning the number of infringements of the minimum wage legislation recorded in the period 2007–11 and the sanctions imposed. The Committee would be grateful if the Government would continue to provide up-to-date information on the manner in which the Convention is applied in practice, including the approximate number of workers remunerated at the minimum wage rate, inspection results and copies of official publications on issues related to minimum wage policy.

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

The Committee notes the information provided in the Government’s report and would like to be provided with additional information on the following points.

Article 1, paragraphs 1 and 3, of the Convention. Methods of fixing and adjusting minimum wages. The Committee notes the adoption of Act No. 20039 of 30 June 2005 fixing, as from 1 July 2006, the national minimum wage (IMM) at 135,000 pesos (around US$250) a month for workers aged between 18 and 65 years and 101,491 pesos (around US$189) a month for workers under 18 years and over 65 years of age. The Committee requests the Government to keep it informed of any developments relating to the fixing of minimum wage rates for groups of workers who are currently excluded from the scope of the national minimum wage, such as domestic workers, and the effect that it is proposed to give to the Convention with regard to these groups.

Article 2, paragraph 1. Different minimum wage rates based on age. Further to its previous comments on this point, the Committee recalls that the reasons which led to the adoption of lower minimum wage rates for groups of workers as a function of their age should be the subject of periodic examination in the light of the principle of equal remuneration for work of equal value. The Committee therefore requests the Government to provide additional information on the reasons which would justify the maintenance of different rates for workers under 18 years of age and over 65 years, the results of this policy and the manner in which the Government ensures that the principle of “equal remuneration for work of equal value” is fully respected.

Article 3. Elements to be taken into consideration in determining the level of minimum wages. The Committee notes that the Government has not provided any new information on this subject. It once again requests the Government to indicate in its next report the laws or regulations enumerating the elements that are to be taken into account for the determination of the minimum wage.

Article 4. Consultation of the social partners. The Committee notes the Government’s statement that it consults organizations of employers and workers separately. The Committee understands that the IMM was previously determined in a tripartite commission, which then had to stop functioning due to differences which emerged between its members. While noting that the Government convenes the organizations of workers and employers to inform them of the periodic adjustment of the minimum wage, the Committee wishes to emphasize once again the fundamental nature of the principle of full consultation of the social partners at all stages of the procedure of minimum wage fixing. In accordance with the spirit and the letter of the Convention, the process of consultation should be undertaken prior to any decision and must be effective, that is, it must provide the social partners with a real possibility of expressing their opinions and affecting decisions relating to the matters covered by the consultation. Although a distinction needs to be made between “consultation”, “codetermination” and mere “information”, the Committee considers that the Government is under the obligation to establish and maintain conditions permitting full consultation and direct participation of the representative organizations of employers and workers in all circumstances. It therefore requests the Government to take appropriate measures to ensure that effect is given to the requirement of meaningful consultations, as set out in this Article of the Convention, preferably in a manner that is well structured, generally approved and, where possible, institutionalized.

Article 5 and Part V of the report form. The Committee notes the statistical data provided by the Government on the number of fines imposed by the inspection services for failure to pay the minimum wage. The Committee requests the Government to continue providing general information on the application of the Convention including, for instance, statistics on the number of workers paid at the minimum wage rate, where possible disaggregated by sex, age and sector, official studies by the Department of Studies on the minimum wage system, extracts of the reports of the labour inspection services indicating the number and nature of infringements reported, and the sanctions applied, etc.

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

The Committee notes with interest the Government’s first two reports and the attached documentation.

Article 1, paragraph 3, of the Convention. The Committee notes the various categories of workers who are excluded from the minimum wage system (workers covered by apprenticeship contracts, workers in private houses and workers with disabilities and mental deficiencies). While recalling its previous comments on this point in relation to Convention No. 26, the Committee is bound to emphasize that, although the Conventions on minimum wages do not prohibit the fixing of lower minimum wage rates for workers on the basis of their age or disability, protective clauses should be adopted to guarantee them equal remuneration to that of other workers, provided that they perform work of a similar nature and meet the same requirements as to quantity and quality of work, in accordance with the principle of "equal wages for work of equal value". The Committee requests the Government to keep it informed of developments in the situation with regard to these groups of workers and to provide additional information on the reasons for the exclusion of workers in private houses and apprentices from the minimum wage system.

Article 2, paragraph 2. The Committee notes the Government’s indication that the remuneration of workers is determined in accordance with individual or collective agreements with employers, always in compliance with the minimum wage rate, which is a limit or floor for remuneration. In this respect, the Committee requests the Government to provide information on the number and categories of workers whose wages are determined by collective bargaining, with an indication where appropriate of the extent to which they comprise workers who are also covered by the minimum wage system.

Article 3. The Committee notes the Government’s information on the elements taken into consideration to determine the level of minimum wages, including variations in the consumer price index, the satisfaction of the basic needs of workers and their families, the maintenance of the level of employment, the offsetting of the purchasing power lost through inflation, etc. The Committee requests the Government to indicate the legal instrument enumerating the elements that are to be taken into account for the determination of the minimum wage.

Article 4. The Committee notes the Government’s statements that the procedure of prior negotiation between employers, workers and the Government establishes the basis for determining the amount of the minimum wage and the percentage of its adjustments. The Government adds that, during the discussion of the minimum wage for the period from 1 June 2001 to 31 May 2002, account was taken of the views of the representative organizations of employers and workers, organizations of small and medium-sized enterprises, parliamentarians (deputies and senators) and government authorities (Ministry of Finance, Ministry of the Economy and Ministry of Labour). The Committee recalls that, in accordance with the Convention, provision must be made in the minimum wage fixing machinery for effective consultation and direct participation of the social partners concerned and that it would therefore be desirable to establish a permanent body to fulfil this function. The Committee requests the Government to provide additional information on the manner in which the organizations of employers and workers are consulted in practice and on any legal provision governing the process of consultation and the revision of the minimum wage.

Article 5 and Part V of the report form. The Committee notes the information provided by the Government on the inspection system and the penalties established by the law to secure compliance with the minimum wage provisions, as well as the statistics on changes in wage rates over the period 1999-2002. In this respect, the Committee requests the Government to continue providing detailed information on the application of the Convention in practice, and particularly statistics on the results of the inspections carried out (violations reported, sanctions imposed, etc.), the approximate number of workers covered by minimum wage rates, the minimum wage rates in force and any other information relating to the application of minimum wage provisions.