Observation (CEACR) - adopted 2022, published 111st ILC session (2023)

Madagascar

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) (Ratification: 1960)
Protection of Wages Convention, 1949 (No. 95) (Ratification: 1960)

In order to provide an overview of matters relating to the application of the ratified Conventions on wages, the Committee considers it appropriate to examine the application of Conventions Nos 26 (minimum wages) and 95 (protection of wages) in a single comment.

The Committee notes the observations of the Trade Union Confederation of Malagasy Revolutionary Workers (FISEMARE) and the General Confederation of Workers’ Unions of Madagascar (FISEMA), received on 1 September 2022.

Minimum wages

Article 3 of Convention No. 26. Minimum wage-fixing machinery and consultation of the social partners. Further to its previous comments, the Committee notes the information provided by the Government in its report on the adoption of Decree No. 2022-626 of 4 May 2022 setting the minimum starting wage in the private sector, for which the implementing order is still being prepared. The Government adds that the new minimum starting wage was set taking into account the protocol containing the outcome of wage bargaining, submitted to the National Labour Council (CNT) for its views on 5 April 2022, and that it includes a supplement covered by the State. In this regard, the Committee notes the observations of the FISEMA and the FISEMARE, which indicate that: (i) the minimum wage-fixing machinery no longer takes into account the real situation and the minimum subsistence level for workers; and (ii) there is a significant period of time between the declaration of the new minimum starting wage and the publication of the corresponding order, which accentuates the difficulties faced by workers in meeting their living expenses, particularly in light of price rises. The Committee also notes the Government’s indication that, within the context of the operationalization of the CNT, standing committees have been established to ensure the sound functioning of the CNT, including the purchasing power and wages committee. In this connection, it notes the observations of the FISEMA concerning the dysfunctionality of the CNT and that the purchasing power and wages committee has been created but is not yet operational. It also notes the emphasis by the FISEMARE that, despite the existence of regular dialogue between employers and workers on wage increases, in the last resort, the rates of minimum wages are set by employers. The Committee requests the Government to intensify its efforts to make the CNT operational, and to provide information on this subject, including on the establishment of the purchasing power and wages committee, its work and achievements. The Committee also requests the Government to take the necessary measures to adopt, as soon as possible, the implementing order of Decree No. 2022-626 of 4 May 2022, and to provide information on the progress made in this regard.

Article 4. System of supervision and sanctions. Further to its previous comments, the Committee notes the Government’s indication that, since 2019, the labour inspection services, together with the National Social Insurance Fund, have established a task force responsible for monitoring regularly the application of the Decree on the minimum starting wage, and that: (i) in the event of failure to apply the minimum starting wage, the labour administration makes time-bound recommendations with a view to ensuring effective compliance with the Decree on the minimum starting wage; and (ii) if these recommendations are not given effect, labour inspectors indicate the offences in a report referred to the Office of the Prosecutor-General of the Republic. The Committee requests the Government to continue providing information on the activities of the task force, including statistics on cases of failure to apply the minimum starting wage, and the measures adopted to resolve the issue.

Protection of wages

Article 8 of Convention No. 95. Deductions from wages. The Committee notes that, in reply to its previous comment, the Government indicates in its report that: (i) no deduction from wages may be made without the consent of the worker; and (ii) labour inspectors organize information sessions and training for public institutions and the social partners with a view to preventing risks of abuse in this field. However, the Committee notes that the Government does not indicate the manner in which the deductions authorized in sections 69 and 71 of the Labour Code are limited. The Committee recalls that, in accordance with Article 8(1) of the Convention, deductions from wages shall be permitted only under conditions and to the extent prescribed by national laws or regulations, or fixed by collective agreement or arbitration award. The Committee therefore requests the Government to indicate the measures adopted or envisaged that are necessary to establish precise and overall limits on the deductions from wages authorized in sections 69 and 71 of the Labour Code. It requests the Government to provide information on this subject.

Article 12. Regular payment of wages and final settlement of all wages upon the termination of the contract. Further to its previous comment, the Committee notes that the Government has not provided information on delays in the payment of wages and of social security contributions, as well as cases of the non-payment of the remaining amounts due to workers on the termination of the employment relationship. It also notes that the FISEMA denounces the existence of several months of wage arrears, including social security contributions, in the public sector and considers that the labour inspection services have no authority in relation to this situation. The Committee once again requests the Government to take all the necessary measures, including action by the labour inspection services and the imposition of effective penalties in the event of non-compliance, to resolve these difficulties and to provide information on this subject.