Observation (CEACR) - adopted 2016, published 106th ILC session (2017)

Minimum Wage Fixing Convention, 1970 (No. 131) - Guatemala (Ratification: 1988)

The Committee notes the observations of the International Trade Union Confederation (ITUC) received on 31 August 2016 alleging that the purpose of fixing minimum wages for the maquila industry is to reduce the production costs of enterprises in this sector. The ITUC also alleges that, according to the National Institute of Statistics, in 2015 the basket of essential goods (CBV) cost around 6,242 Guatemalan quetzals (GTQ), while the minimum wage for a woman worker employed in a maquila was GTQ2,450.95. In the opinion of the ITUC, the National Wage Commission, which is the tripartite body responsible for the concerted fixing of the minimum wage, does not promote agreements, which is why the determination of the minimum wage remains in the hands of the executive authorities in accordance with section 113 of the Labour Code. Furthermore, according to the ITUC, the situation is made worse by the high incidence of non-compliance with the labour legislation in relation to remuneration. The ITUC also alleges that the General Labour Inspectorate of Guatemala has neither the power to impose penalties nor any real possibility to carry out its inspection activities, especially in the agricultural sector. The Committee requests the Government to send its comments on this matter.

The Committee also notes the observations of the Guatemalan Union, Indigenous and Peasant Movement (MSICG), received on 5 September 2016, which reiterate the claims made in 2011.

Articles 3(1)(a) and 4(2) of the Convention. Criteria for determining the minimum wage. Consultation with representative organizations of employers and workers. In its previous comment, the Committee noted the observations made in 2011 by the MSICG, which allege systematic non-compliance with the requirements of the Convention through the widening of the gap between the minimum wage and the CBV, especially in the maquila sector, and the participation of organizations that are not representative organizations of workers in the National Wage Commission (CNS). While noting that the Government has not replied to these observations, the Committee recalls that, in accordance with Article 3(1)(a) of the Convention, in determining the level of minimum wages, account must be taken of, among other elements, the needs of workers and their families and the cost of living. The Committee also recalls that, under Article 4(2) of the Convention, representative organizations of employers and workers must be fully consulted in the establishment, operation and amendment of machinery whereby minimum wages can be fixed and adjusted from time to time. The Committee requests the Government to ensure compliance with these provisions of the Convention and to provide information on this subject.

Article 5. Adequate inspection. In previous comments, the Committee requested the Government to provide information on the measures aimed at strengthening the labour inspection services and ensuring the effective application of the relevant legislation, particularly with regard to indigenous and agricultural workers. The Committee notes the Government’s indication that in 2015 the General Labour Inspectorate carried out inspections in 88 apparel and textile enterprises certified by Decree No. 29-89: Act on the promotion and development of exports and maquila, in order to ascertain the payment of the minimum wage. According to the Government, these inspections found that 88.4 per cent of enterprises were in compliance with the minimum wage.