Direct Request (CEACR) - adopted 2019, published 109th ILC session (2021)

Social Policy (Basic Aims and Standards) Convention, 1962 (No. 117) - Panama (Ratification: 1971)

The Committee notes the observations of the National Confederation of United Independent Unions (CONUSI), received on 31 August 2018. The Committee requests the Government to provide its comments in this respect.

Parts I and II of the Convention. Improvement of standards of living. The Committee notes the information provided by the Government regarding the execution of the Government Strategic Plan (PEG) 2015–2019, the objective of which is to strengthen the links between economic growth, the consolidation of democracy, environmental sustainability and equity and social cohesion. The Committee observes that the PEG includes among its action lines the component entitled “Good life for all”, which provides for the adoption of measures to guarantee decent and healthy housing; accessible and efficient public health care; quality bilingual education and continuing training for innovation; and care for the elderly, and particularly vulnerable population groups. The Government adds that, in the context of the PEG, the Economic and Social Strategy 2015–2019 is being implemented, the areas of action of which include economic development, social inclusion and quality of life, and the strengthening of human capacities. The Government adds that social inclusion and competitiveness are the Government’s two main areas of action, and that over 80 per cent of the public investment envisaged in the PEG 2015–2019 is aimed at improving the quality of life of the Panamanian people. The Committee also notes the adoption on 30 March 2017 of the National Strategic Plan with the “Panama 2030” State Vision due to the participation of the social partners, among other stakeholders. This plan aligns the Sustainable Development Goals (SDGs) of the United Nations with the PEG 2015–2019 and the priorities of the National Development Dialogue (CND). Its strategic priorities include “Good life for all”, which sets out actions and targets for eradicating poverty, reducing hunger, increasing and improving health care coverage, equity, efficiency and quality; and establishing inclusive, relevant, equitable and quality education to promote lifelong learning opportunities for all. The Committee also notes the detailed information provided by the Government on the implementation of the various programmes and projects to combat poverty and on their impact. The Government refers to, among others, the cash transfer programmes “Economic Assistance Programme for Persons of 65 Years of Age and Older”, which benefited 127,230 people in 2017; the “Guardian Angel Programme”, which granted economic assistance of 80 Panamanian balboas (PAB) a month to 18,497 beneficiaries in 2017; and the “Housing Solidarity Fund”, which benefited 26,658 low-income Panamanian nationals in 2017. The Committee also refers to its 2018 direct request on the application of the Employment Policy Convention, 1964 (No. 122), in which it noted the implementation of the Programme to Strengthen Social Cohesion (COHESAL) and the Opportunity Network Programme and their impact in terms of improving the living conditions of vulnerable groups through income generation and of reducing extreme poverty through the provision of incentives to households. The Committee notes the impact of these programmes on the reduction of poverty rates. In this regard, the Government indicates that, according to the Multi-purpose Household Survey of the National Statistics and Census Institute (INEC), between March 2016 and March 2017, the percentage of the population in extreme poverty decreased from 9.9 per cent to 9.8 per cent. Similarly, the percentage of people in general poverty fell from 22.1 per cent to 20.7 per cent. The Government indicates that without the assistance or transfers of State social programmes, extreme poverty would have been 4.3 per cent higher in 2016. The Government indicates that public assistance was the second source of income for 22.9 per cent of households in general poverty and for 35.9 per cent of households in extreme poverty. However, the Committee notes the indication by CONUSI that the same methodology was not applied to measure poverty over the different periods and that the measurement is not continuous, and that it cannot therefore confirm that poverty levels in the country have fallen. With reference to labour market trends, the Committee refers to its 2018 observation on Convention No. 122, in which it noted that, according to the INEC study, between August 2016 and August 2017, the number of people in employment aged over 15 years increased from 1,770,711 to 1,785,849, while the unemployment rate increased from 5.5 per cent to 6.1 per cent. Regarding the measures adopted to ensure the maintenance of a minimum standard of living for wage earners (Article 5), the Government indicates that, between August 2016 and August 2017, wages increased by 5.2 per cent, which represents an increase in purchasing power of over 4.3 per cent. However, CONUSI maintains that the level of the minimum wage is insufficient, considering the level of inflation, the depreciation in the purchasing power of wages and the value of the basic food basket. CONUSI states that, according to statistical information of the Ministry of the Economy and Finance, the consumer price index increased by 0.8 per cent in September 2018, which was not compensated for by sufficient wage adjustments. Lastly, the Committee notes the information provided by the Government regarding the implementation of various programmes in the areas of health, education and access to social security and housing. The Committee requests the Government to provide detailed information, including statistics disaggregated by sex, age and region, on the measures adopted under the Government Strategic Plan (PEG) 2015–2019 and the National Strategic Plan with the “Panama 2030” State Vision, and on the results achieved. The Committee also requests the Government to provide detailed and updated information on any measures intended to ensure the improvement of the standards of living of the population of Panama (Article 2), particularly with regard to vulnerable groups, such as women, young persons, persons with disabilities, older persons and small-scale producers who practice subsistence agriculture. The Committee also requests the Government to provide updated information on the impact of these plans on “such essential family needs of the workers as food and its nutritive value, housing, clothing, medical care and education” (Article 5(2)), in both urban and rural areas.

Article 3(2)(d). Improvement of living conditions in rural areas. The Committee notes the information provided by the Government on the various measures adopted to improve living conditions in rural areas. The Government refers to, among other measures, the investment made by the Office of Rural Electrification in electrification projects between 2014 and 2019, with the aim of promoting and developing electrification in rural areas in an efficient, economic and sustainable manner. However, the Committee notes the indication by CONUSI in its observations emphasizing the negative impact of the low rate of formal employment in rural areas (14.5 per cent of active persons in August 2017) on the living conditions of the poor population in those areas. Regarding the living conditions of indigenous peoples, the Committee notes the Government’s indication that the highest proportion of people in multidimensional poverty is in indigenous areas. The Government indicates that, in 2017, the incidence of multidimensional poverty was 93.4 per cent in the Ngabe-Buglé area, 91.4 per cent in the Guna Yala area and 70.8 per cent in the Emberá area. The Committee notes that, in the context of the PEG, it is envisaged to expand health and education infrastructure in indigenous areas; develop a decent housing project in consultation with indigenous communities through the programme “Roofs of Hope”; and implement training programmes in indigenous areas to incentivize, among other activities, agricultural production. The Committee also notes the implementation of the project supporting the implementation of the National Plan for the Comprehensive Development of the Indigenous Peoples of Panama, which includes among its objectives the improvement of the living conditions of indigenous peoples through the implementation of specific programmes to increase the level of education, health, housing and infrastructure in the indigenous lands of Panama, in accordance with the development plans established in each traditional structure. The Committee requests the Government to continue providing detailed and updated information on any measures intended to ensure the improvement of the living conditions of the rural population, including indigenous communities (Article 2). The Committee also requests the Government to provide statistical information, disaggregated by sex, age and region, on the impact of these measures.

Part III. Migrant workers. The Committee notes the information provided by the Government on the migration regulation processes carried out between 2010 and 2018. It also notes the approval of Executive Decrees Nos 167 and 168 of 3 June 2016, which establish the General Migration Regularization Procedure and the Extraordinary Migration Regularization Procedure for nationals of the People’s Republic of China. The Government indicates that 34,956 work permits for foreign workers were processed between July 2017 and June 2018. The Committee requests the Government to continue providing detailed and updated information on the measures adopted to improve the living standards of migrant workers. It also requests the Government to provide updated statistical information, disaggregated by sex, on the number of migrant workers required to live away from their homes.

Part IV. Remuneration of workers. Advances on wages. Voluntary thrift. In reply to its previous comments, the Government refers to extracts from ten judgments of the Higher Labour Court of the First Judicial District relating to the application of section 161 of the Labour Code on the withholding of and deductions from wages, in accordance with Article 12 of the Convention. The Committee notes that the above-mentioned extracts are not included in the Government’s report and requests the Government to provide them to the Office. The Committee requests the Government to provide detailed and updated information on the measures adopted to encourage wage earners and independent producers to practice any of the voluntary forms of thrift set out in the Convention. It also requests the Government to indicate the measures adopted to protect them against usury, and in particular to specify the measures taken to reduce the interest rates on loans by controlling the operations of money lenders and improving facilities for borrowing money for appropriate purposes through co-operative credit organisations or through institutions which are under the control of the competent authority.

Part VI. Education and Training. The Committee refers to its 2018 direct request on the application of Convention No. 122, in which it noted the many measures adopted with the participation of the social partners and enterprises to adapt the supply of training to labour market demands. The Committee refers to its 2018 comments on the application of Convention No. 122, in which it requested the Government to continue providing detailed information on the impact of the measures taken to promote vocational education and training policies. The Committee also requests the Government to continue providing information on the coordination of education and vocational training policies and employment policies, and specifically on how the supply of training is coordinated with changes in the demand for knowledge and skills and with labour market needs.