Observation (CEACR) - adopted 2017, published 107th ILC session (2018)

Labour Clauses (Public Contracts) Convention, 1949 (No. 94) - Panama (Ratification: 1971)

Article 2 of the Convention. Insertion of labour clauses in public contracts. In its previous comments, the Committee noted that it has been drawing the Government’s attention for a number of years to the need to take appropriate action to bring effect to the core requirement of the Convention concerning the insertion of the labour clauses in public contracts called for by Article 2 of the Convention. Acknowledging that its national procurement legislation is not in conformity with the Convention, the Government indicated its intention to rectify the situation. The Committee expressed the hope that the Government would therefore take all appropriate measures very shortly to bring its national legislation into conformity with the Convention. The Committee notes, however, that while the Government once again acknowledges that its public procurement legislation in not in conformity with the provisions of the Convention, the situation remains unchanged. It further notes the Government’s indication that, through the Ministry of Work and Labour Development (MITRADEL), it has held two meetings with the Directorate-General of Public Procurement (DGCP) to discuss the measures to be taken to ensure the effective implementation of the Convention. The Committee notes that the DGCP, in a communication of 28 June 2017 to MITRADEL (DGCP-SG-031-2017) submitted together with the Government’s report, points out that a pending Bill to reform the national public procurement legislation (Bill No. 305) does not include any provisions implementing the labour clauses of the Convention. The DGCP indicates that it is nevertheless working on a draft Standardization of Public Procurement Documents, and proposes to collaborate with MITRADEL to draft provisions that could be added to the model contract forms used by all public entities, which would be aligned with the requirements of Article 2. The DGCP refers to its prior communication of 28 January 2013 (DGCP-DG-DJ018-2013), in which it requested MITRADEL to provide it with guidelines regarding the labour-related elements that it should include in the bidding documents. The Committee further notes that the Government requested the technical assistance of the Office by letter dated 2 August 2017. The Committee hopes that the Office will soon be able to provide the technical assistance requested. It urges the Government to take all appropriate measures without further delay in order to bring its legislation into full conformity with the requirements of the Convention and requests that it provide updated information on progress achieved in this respect.