Report in which the committee requests to be kept informed of development - Report No 346, June 2007

Case No 2372 (Panama) - Complaint date: 21-JUL-04 - Closed

Allegations: The complainant organization objects to Decree No. 8 of 1998 which regulates work at sea and on waterways and which, in the opinion of the organization, denies it the right to collective bargaining and to strike; it also alleges that the General Secretary of the Panamanian Trade Union of Maritime Tugging, Barges and Related Services (SITRASERMAP) was dismissed from the enterprise Smit Harbour Towage Panama in April 2002

1260. The Committee examined this case at its June 2006 meeting and submitted an interim report to the Governing Body [see 342nd Report, paras 879-891, approved by the Governing Body at its 296th Session (June 2006)].

1. 1261. The Government sent new observations in a communication dated 30 November 2006.
2. 1262. Panama has ratified the Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87), and the Right to Organise and Collective Bargaining Convention, 1949 (No. 98).

A. Previous examination of the case

1. 1263. At its June 2006 meeting, the Committee made the following recommendations concerning the questions that were still pending [see 342nd Report, para. 891]:
2. (a) With regard to the contested Decree No. 8, which regulates work at sea and on waterways, noting that the Government does not deny the allegation that this Decree obstructs the right to collective bargaining and the right to strike, the Committee requests the Government to take the necessary measures to amend section 75 of the Decree and to promote the full development and use of machinery for voluntary negotiation between employers or employers’ and workers’ organizations of the sector, with a view to the regulation of terms and conditions of employment through collective agreements. The Committee requests the Government to hold proper consultations with the most representative employers’ and workers’ organizations in this regard. The Committee also requests the Government to keep it informed of any ruling handed down by the Supreme Court on the unconstitutionality of various sections of Decree No. 8, as well as on any new bill on the maritime sector presented to the Legislative Assembly.
3. (b) As to the dismissal in April 2002 of the General Secretary of the Panamanian Trade Union of Maritime Tugging, Barges and Related Services (SITRASERMAP), Mr. Luis Fruto, at the enterprise Smit Harbour Towage Panama, the Committee regrets the long time that has lapsed since the beginning of the court case (April 2002) relating to the dismissal, trusts that the Supreme Court of Justice will soon hand down a ruling on the matter, taking into account the fact that the Ministry of Labour had ordered the reinstatement of this trade union leader in his post, the Committee requests the Government, if it is confirmed that the dismissal of this union official was due to his trade union activities, to take the necessary measures to ensure that he is reinstated in his post without delay with the payment of the wages owed to him and any other legal entitlements. The Committee requests the Government to keep it informed of the ruling of the Supreme Court of Justice.
4. B. The Government’s reply
5. 1264. In its communication dated 30 November 2006, the Government states that, by a ruling of 2 October 2006, the Supreme Court of Justice gave a decision regarding the claim of unconstitutionality made against Decree No. 8 of 1998, which regulates work at sea and on waterways. In this ruling, the Supreme Court stated that a number of provisions in the Decree, including section 75 (which had been called into question by the complainant organization, which believed that the section denied it the right to collective bargaining and to strike), were unconstitutional. The Government has provided the text of the ruling in question.
6. 1265. In the light of this ruling and the recommendations issued by the Committee on Freedom of Association regarding this case, the Government states that it will take the appropriate measures to promote the full development and use of machinery for voluntary negotiation between seafarers’ employers or employers’ and workers’ organizations, with a view to the regulation, through collective agreements, of terms and conditions of employment.
7. 1266. The Government adds that this will also be taken into account in the development of the draft bill to revise this Decree, since it expects to ratify the ILO Maritime Labour Convention, 2006, in 2007 for which national legislation and practice will have to be brought into line with the new international maritime labour standard.
8. 1267. With regard to the dismissal of Mr Luis Fruto from the enterprise Smit Harbour Towage Panama in April 2002, the Government reports that it is awaiting the ruling of the Supreme Court of Justice on the appeal submitted by Mr Luis Fruto.

C. The Committee’s conclusions

1. 1268. The Committee notes with satisfaction that, by its ruling of 2 October 2006, the Supreme Court of Justice declared unconstitutional section 75 of Decree No. 8 of 1998, which regulates work at sea and on waterways and which the Committee had asked to be revised (in the ruling forwarded by the Government, the Supreme Court indicates that “section 75 of Decree No. 8 of 1998 does indeed violate articles 64 and 65 of the Political Constitution”), and which according to the allegations, denied the right to collective bargaining and to strike. In this respect, the Committee also takes due note of the Government’s statement that it will take appropriate measures to promote collective bargaining in the maritime sector.
2. 1269. The Committee further notes the Government’s statement that it is awaiting the ruling to be handed down by the Supreme Court of Justice regarding the dismissal of the maritime sector trade union leader Mr Luis Fruto, and expects that the ruling will be handed down in the very near future. The Committee once again regrets the length of time that has elapsed since the beginning of the court case, and requests the Government to keep it informed on this matter and to communicate to it the content of the ruling as soon as it is handed down.

The Committee's recommendations

1. 1270. In the light of its foregoing conclusions, the Committee invites the Governing Body to approve the following recommendation:
   • Regretting once again the length of time that has elapsed since the beginning of the court case, the Committee requests the Government to keep it informed with regard to the appeal to the Supreme Court of Justice against the dismissal of the maritime sector trade union leader, Mr Luis Fruto, and to communicate the content of the ruling as soon as it is handed down; it also expects that the ruling will be handed down in the very near future.