Interim Report - Report No 326, November 2001

Case No 2095 (Argentina) - Complaint date: 16-AUG-00 - Closed

Allegations: Breach of a collective agreement; obligation to renegotiate collective agreements

1. 181. The complaints are contained in communications by the General Confederation of Labour (CGT) and by the National Civil Servants’ Union (UPCN) dated 16 August 2000 and October 2000 and by the Asociación del Personal Técnico Aeronáutico de la Republica Argentina (APTA), dated 26 March 2001.
2. 182. The Government transmitted observations in communications of 20 July and 15 October 2001.
3. 183. Argentina has ratified the Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87), the Right to Organise and Collective Bargaining Convention, 1949 (No. 98), the Labour Relations (Public Service) Convention, 1978 (No. 151), and the Collective Bargaining Convention, 1981 (No. 154).

A. The complainants’ allegations

1. 184. In its communications of 16 August and October 2000, the General Confederation of Labour (CGT) and the National Civil Servants’ Union (UPCN) state their opposition to Decree 430/00 issued by the National Executive which imposes a wage reduction on national civil service employees, decentralized bodies, state limited liability companies, national banks and other bodies under the auspices of the national State, thus constituting a breach of the applicable labour regimes, regardless of whether the employment relationship is governed by duly approved public sector collective agreements, by legislation governing employment contracts or by collective labour agreements signed under the normative framework of Act 14250 and its amendments.
2. 185. Article 1 of Decree 430/00 provides that:
   • A reduction is hereby introduced in the gross, total, monthly, normal, regular and permanent remuneration, and complementary annual wage, excluding family benefits, for national civil service employees included in article 8, paragraphs (a) and (b) of Act 24156, including official banking entities and the armed and security forces and the federal police and national legislature, regardless of the labour regime applicable to such employees …
   • Article 2 provides that:
   • The reduction in remuneration provided for in the previous article shall apply to the total of components of such remuneration, in accordance with the following scale:
   • Under 1,000 pesos 0 per cent reduction
   • Over 1,000 and under 6,500 12 per cent reduction
   • Over 6,500 15 per cent reduction
3. 186. The CGT and UPCN further allege that the State signed the first collective agreement for the national civil service in January 1999, which provides that the Government undertakes to guarantee stability of position and function of civil servants, including, among other rights, normal, regular and permanent remuneration corresponding to the grade in question. The agreement provides moreover for the establishment of the Standing Commission for Application and Labour Relations, to carry out mediation and dispute settlement. This agreement is currently in force. The complainants further state that the First Sectoral Negotiating Commission agreed on a wage increase for level F of the SINAPA (Sistema Nacional de la Profesión Administrativa), ratified by resolution 99/99 of the National Ministry of Labour.
4. 187. The CGT and UPCN allege moreover that the Government issues an emergency decree to reduce earnings by a significant percentage (the Decree provides for a reduction of 12 per cent for the lowest wage brackets and of 15 per cent for the higher brackets), and failed to activate the consultation mechanisms provided for in the collective agreement.
5. 188. In its communication of 26 March 2001, the Asociación del Personal Técnico Aeronáutico de la República Argentina (APTA) alleges that the Ministry of Labour, Employment and Human Resource Training, under resolution ST 30/3001, ordered the association to renegotiate collective agreements with the companies Aerolíneas Argentinas S.A. and Austral Líneas Aéreas-Cielos del Sur S.A. in regard to the following matters: (a) an administrative programme to preclude unemployment in the sector; (b) the impact of production restructuring on conditions of work and of employment; and (c) vocational retraining and reintegration of affected employees.

B. The Government’s reply

1. 189. In its communication dated 20 July 2001, the Government states that contested Decree 430/00 was revoked by Decree 896 of 11 July 2001. It adds that Decree 430/00 was adopted for reasons of economic emergency and fiscal pressure necessitating prompt and effective action to alleviate the negative effects of Argentina’s extremely difficult financial and budgetary situation. The Government adds that Decree 430/00 introduced wage reductions exclusively for the upper echelons of the administration (salaries over 1,000 pesos) whose remuneration was not fixed by collective agreement. The Government further states that agreement in regard to level F was respected and did not fall within the bracket affected by Decree 430/00.
2. 190. In a communication dated 15 October 2001, the Government forwarded complementary observations concerning the APTA’s complaint.

C. The Committee's conclusions

1. 191. The Committee notes that the complainant organizations, CGT and UPCN challenge Decree 430/00 issued by the Executive Power, providing for a reduction in the wages of national public administration employees, and allege that the Decree breaches the provisions of the first collective agreement for the national civil service sector concluded between the UPCN and the Government in January 1999 and that the consultation mechanisms established under that agreement were not respected.
2. 192. In regard to Decree 430/00 contested by the complainants and the alleged breach of the collective agreement concluded between the UPCN and the State, the Government states that: (1) the Decree in question has been revoked; (2) the Decree was originally adopted for reasons of financial emergency and fiscal pressure; (3) the Decree provided for reductions affecting only the upper echelons of the administration (over 1,000 pesos) and that such remuneration fell outside the agreement which is alleged to have been breached; and (4) level F of SINAPA was not affected by the Decree.
3. 193. In this regard, the Committee notes the emergency situation referred to by the Government leading to the issue of Decree 430/00, and that the remuneration subject to reduction had not been fixed by collective agreement. Nonetheless, the Committee points out that “it is essential that the introduction of draft legislation affecting collective bargaining or conditions of employment should be preceded by full and detailed consultations with the appropriate organizations of workers and employers,” [see Digest of decisions and principles of the Freedom of Association Committee, 4th edition, 1996, para. 931]. Consequently, the Committee requests the Government to take the necessary measures to ensure that whenever it intends to adopt new decrees or provisions affecting the interests of workers, consultations be carried out with the most representative worker organizations of the sector in question.
4. 194. As regards the allegations submitted by the APTA on the obligation to renegotiate particular provisions of collective agreements with the companies Aerolíneas Argentinas S.A. and Austral Líneas Aéreas-Cielos del Sur S.A., imposed by the Ministry of Labour, Employment and Human Resources Training under resolution ST 30/2001, the Committee notes that the Government has communicated its observations in a recent communication dated 15 October 2001. Therefore, the Committee decides that it will examine these observations at its next session.

The Committee's recommendations

1. 195. In the light of its foregoing interim conclusions, the Committee invites the Governing Body to approve the following recommendations:
   • (a) The Committee requests the Government to take the necessary measures to ensure that whenever it intends to adopt new decrees or provisions affecting the interests of workers, consultations be carried out with the most representative worker organizations of the sector in question.
   • (b) As regards the allegations submitted by the APTA on the obligation to renegotiate particular provisions of collective agreements with the companies Aerolíneas Argentinas S.A. and Austral Líneas Aéreas-Cielos del Sur S.A., the Committee notes that the Government recently communicated its observations and therefore proposes to examine these allegations in detail at its next session.