Minimum Wage Fixing Convention, 1970 (No. 131) - Republic of Moldova (Ratification: 2000)

Replies received to the issues raised in a direct request which do not give rise to further comments (CEACR) - adopted 2021, published 110th ILC session (2022)

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 2019, published 109th ILC session (2021)

In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on wages, the Committee considers it appropriate to examine Convention No. 131 (minimum wages) and Convention No. 95 (protection of wages) together. The Committee takes note of the observations of the National Confederation of Trade Unions of Moldova (CNSM) on the application of Convention No. 131 and Convention No. 95, received in 2017.

Minimum wage

Articles 3 and 4(1) and (2) of Convention No. 131. Review and adjustment of the national minimum wage. Full consultation with representative organizations of employers and workers concerned. Further to its previous comments, the Committee notes that the Government indicates in its report that regular increases of the minimum wage level applicable in the private sector have been adopted following consultations with the representative organizations of employers and workers. It also notes the Government’s indication that the national minimum wage, which is the basis for remuneration in the public sector, was last revised in 2014 (Government Decision No. 550) and that, taking into account the evolution of macroeconomic indicators and the national public budget, no further increase had been possible since then. The Committee further notes that, according to the CNSM, the national minimum wage should be revised to take into account social and economic developments which have had negative repercussions on the standard of living and the purchasing power of employees. The Committee requests the Government to continue to examine the national minimum wage level in light of the evolution of the relevant socio-economic indicators and to provide information on the results of this process, including the possible adjustment of the national minimum wage level in full consultation with representative organizations of employers and workers concerned.

Article 5. Effective application. The Committee takes note of the information provided by the Government in reply to its previous request.

Protection of wages

Article 11 of Convention No. 95. Wages as privileged debts in bankruptcy proceedings. The Committee previously noted the Government’s indication that draft amendments to the Insolvency Act had been prepared, which provided that employees’ wage claims would be given a secured priority status among privileged debts. The Committee notes that the Government does not indicate whether these amendments have been adopted. It also notes that, according to the CNSM, in the event of insolvency, payment of secured debts such as loans have priority over wage claims and that consequently the wages of hundreds or even thousands of employees remain unpaid for years. The Committee requests the Government to provide its comments on the observations of the CNSM. Moreover, while noting that the Convention does not specify the rank to be attributed to wage claims among privileged debts, the Committee invites the Government to provide information on any developments in law and practice which may result in improved protection of wage claims in insolvency proceedings.

Article 12(1). Regular payment of wages. The Committee notes that the CNSM refers to statistical data showing important amounts of wage arrears for the period January–March 2017, with the largest debts registered in the railway transport, agriculture, trade and construction sectors, mostly in enterprises with majority state capital. The Committee requests the Government to provide its comments in this respect and to indicate the measures taken or envisaged to ensure the regular payment of wages in practice.

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

Article 4(2) and (3) of the Convention. Full consultation and direct participation of employers’ and workers’ representatives. Further to its previous comment, the Committee notes the Government’s reference to section 3(4) of Act No. 1432-XVI of 28 December 2000 on the establishment and readjustment of the minimum wage, which provides that the national minimum wage is determined by Government decision after consultations with trade unions and employers’ representatives, taking into account indicators such as the consumer price index, the average wage, the gross domestic product, labour productivity, and the minimum subsistence level.

The Government also refers to a new procedure for the annual review of the guaranteed minimum wage according to which, upon examining the evolution of the consumer price index and labour productivity, the National Bureau of Statistics, the Ministry of Economy and the Ministry of Labour, Social Protection and Family calculate the new minimum wage level and transmit a draft government decision on the revision of the minimum wage to the National Confederation of Trade Unions and the National Confederation of Employers for comments.

The Committee recalls, in this respect, that the Convention requires that the social partners must be given a genuine opportunity to express their views and influence the relevant government decisions, otherwise consultation or participation would risk to become a mere formality devoid of any real significance. The Committee therefore requests the Government to provide additional explanations as to whether the current practice of informing the social partners and inviting their comments after the Government has completed the process of revision of the minimum wage can be deemed consistent with the letter and the spirit of the Convention. The Committee also requests the Government to indicate whether any consideration has been given to the possibility of setting up a permanent tripartite consultative body for the purposes of, among others, fixing and revising the national minimum wage.

Article 5 and Part V of the report form. Enforcement measures. Application in practice. The Committee notes the Government’s reference to the new Contravention Code (Act No. 218-XVI of 24 October 2008), in particular section 55 which provides for monetary fines ranging from 1,000 to 9,600 lei (MDL) (approximately US$280 to $2,700) in case of infringement of the labour legislation in general, and section 57 which sets out specific fines for failure to comply with the terms of wages, pensions and allowances. The Committee also notes that by virtue of Government Decision No. 260 of 25 April 2012, the guaranteed minimum wage is fixed at MDL1,300 (approximately $365) per month. The Committee requests the Government to continue to provide all available information on the application of the Convention in practice, including the approximate number of workers covered by the Convention, copies of collective agreements establishing minimum wages for specific branches, statistics on the evolution of the minimum wages in recent years as compared to the evolution of economic indicators, such as the inflation rate, in the same period, inspection results showing the number of visits carried out, violations of the minimum wage legislation observed and sanctions imposed, and copies of official reports or studies addressing issues of minimum wage policy.

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

The Committee notes the information provided in the Government’s report, in particular the adoption of the new Labour Code (Act No. 154-XV of 28 March 2003).

Article 1 of the Convention. System of minimum wages. Further to its previous comments, the Committee notes the Government’s indication that Act No. 355-XVI of 23 December 2005 on the wage system in the budgetary sector prescribes the minimum monthly wage rate for category I of workers in the public sector at 400 lei (approximately US$35). It also notes that by virtue of the collective agreement (national level) No. 7 of 18 May 2007, the minimum wage rates are currently set at: 900 lei (approximately US$80) per month, or 5.33 lei (approximately US$0.47) per hour, for those in self-financing enterprises, with the exception of the agricultural and forestry sectors; 700 lei (approximately US$63) per month, or 4.15 lei (approximately US$0.37) per hour, for the agricultural and forestry sectors; and 550 lei per month (approximately US$49), or 3.26 lei (approximately US$0.29) per hour, for the auxiliary personnel in the agricultural sector.

Article 2(1). Appropriate penal or other sanctions. The Committee notes the information provided by the Government that by virtue of section 41 of the Code on Administrative Contraventions, as amended by Act No. 110-XVI of 2 June 2005, high-ranking officials are liable, in case of the violation of the labour legislation, to a fine ranging from 1,500 to 4,000 lei (from approximately US$133 to US$354). The Committee requests the Government to indicate the penal, monetary or other sanctions applicable in the event of infringement of the minimum wage legislation by persons other than high ranking officials.

Article 4(2) and (3). Full consultation and direct participation of employers’ and workers’ representatives. Further to its previous comment on this point, the Committee notes the Government’s indication that Title II of the new Labour Code provides for social partnership in the sphere of labour. In particular, it notes that under section 17 of the Labour Code, the basic principles of social partnership include, among others, equality of the parties and parity of representation of the parties. It further notes that under section 132 of the Labour Code, minimum monthly and hourly wage rates are established by the decision of the Government after consulting the employers’ and workers’ organizations. The Committee requests the Government to supply more concrete information on the manner in which the consultation process is carried out in practice.

Article 5 and Part V of the report form. The Committee would appreciate if the Government would supply up to date and documented information on the practical application of the Convention including, for instance, statistics on the number of workers remunerated at the minimum wage rate; copies of collective agreements establishing minimum wages for specific sectors of branches of economic activity; extracts from labour inspection reports showing the number of visits conducted, minimum wage-related contraventions observed and the sanctions imposed; copies of official studies or surveys addressing minimum wage issues, etc.

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

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

Article 1, paragraph 1, of the Convention. The Committee notes the Government’s indication that by Order No. 335 of 25 May 2001, the national minimum monthly wage rate was fixed as from 1 April 2001 at 100 lei, whereas the monthly wage rate for category I of workers in self-financing enterprises has been increased from 169 lei to 250 lei as from 1 July 2002. The Committee requests the Government to transmit a copy of all the texts establishing the minimum wage rates currently in force. In addition, the Committee notes that under section 39 of the Wages Act No. 847-XV of 14 February 2002, the Government was bound to submit to Parliament within the year 2002 a bill respecting the system for establishing the minimum wage in the public sector. The Committee asks therefore the Government to specify whether such a bill has in fact been submitted to Parliament and, if so, to communicate its text.

Article 2, paragraph 1. The Committee notes that no specific provisions on penal or other sanctions for failure to apply minimum wages are contained either in Act No. 1432-XIV of 28 December 2000 on the method of fixing and revising the minimum wage or in the Wages Act of 2002. The Committee requests therefore the Government to specify the penalties applicable in the event of infringement of the legislation relating to the minimum wages and to indicate the relevant legal provisions.

Article 4, paragraphs 2 and 3. The Committee notes that under section 3(1), (3), and (4) of the Minimum Wage Act of 2001 and section 11 of the Wages Act of 2002, the minimum monthly or hourly wage rate is established by the Government upon prior consultations with the employers’ and workers’ organizations. Recalling that the requirement for full consultation and direct participation of the employers and workers concerned in all stages of the minimum wage fixing process is best applied in a well-defined, commonly agreed and institutionalized form, the Committee would appreciate receiving additional information on the manner in which the consultations with the social partners are organized and conducted in practice.

Article 5 and Part V of the report form. While noting that under sections 1(2) and 4 of Act No. 140-XV of 10 May 2001 on labour inspection, the labour inspectorate is assigned the general responsibility for ensuring compliance with labour laws and regulations regarding wages, the Committee requests the Government to provide in its next report more detailed information on the application of enforcement measures, including labour inspection visits, and the results obtained with specific reference to minimum wages. The Committee would be particularly interested in receiving up-to-date information on the application of the Convention in practice, such as available statistics on the number of offences relating to minimum wages reported and sanctions imposed, the approximate number and different categories of workers covered by relevant legislation, the evolution of minimum wage rates as well as any other particulars bearing on the functioning of the minimum wage fixing machinery.