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- 198. The complaints are contained in a joint communication from the General
- Confederation of Workers of Peru and the United Textile Front dated 28 March
- 1988. The Government replied in a communication dated 26 September 1988.
- 199. Peru 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. The complainants' allegations
A. The complainants' allegations- 200. The General Confederation of Workers of Peru (CGTP) and the United
- Textile Front allege in their communication of 28 March 1988 that certain
- provisions in the law seriously restrict collective bargaining between workers
- and employers in the textile industry. Section 7 of Supreme Decree No. 5 D.T.
- of 17 August 1956, for example, reads: "The negotiation of wage claims in the
- textile industry is henceforth suspended except in so far as they are
- justified by a fundamental change in the system of work". Supreme Decree No.
- 12 D.T. of 13 December 1960 subsequently added to that provision the following
- criteria governing the exception provided for therein, by virtue of which
- there are only three circumstances in which collective bargaining on wages is
- possible:
- a) when the place of work concerned has not concluded a collective
- agreement or has not settled a collective wage demand;
- b) when the workers are employed in places of work set up after 17 August
- 1956, in so far as the corresponding wage scales have not been determined by
- agreement or by judicial or administrative award;
- c) when after 17 August 1956 new machinery is installed, existing machinery
- is modernised or working conditions are introduced that make greater demands
- on the workers or give them more responsibility, without the corresponding
- wage scales being fixed. There is therefore no possibility of negotiating new
- collective agreements embodying wage increases other than in the above
- circumstances. In practice, the legislation in force requires trade unions to
- submit their demands to their employers before collective bargaining can
- begin, with a copy to the Ministry of Labour which then initiates the
- collective bargaining procedure so that the direct negotiations stage can
- start. In the case of collective bargaining for the textile industry, the
- labour authority has exceeded its powers and has engaged in undue interference
- in direct negotiations by concurring with the employers' view that
- negotiations should not be allowed to begin until it has been established that
- the demands conform to Supreme Decree No. 12 D.T. referred to above.
- 201. The complainant organisations cite a number of examples to illustrate
- the attitude adopted by the authorities for more than ten years:
- - Subdirectorial Ruling No. 162-75-911000 of 16 December 1975, concerning
- the collective bargaining engaged in by the "Remo" Textile Workers' Union,
- denies the possibility of negotiating either conditions of employment and work
- or wages on the grounds that such negotiations are "inappropriate in so far as
- they do not conform to any of the exceptions set out in Supreme Decree No. 12
- D.T. of 13 December 1960";
- - Divisional Decision No. 04-84-2DV-NEC of 20 January 1984, concerning the
- negotiations which the Union of Spinners and Weavers of Manufacturas Tres Ele
- S.A. were seeking to initiate, recalls that the presentation of wage claims in
- the textile industry is prohibited in so far as wages are automatically
- readjusted;
- - Subdirectorial Decision No. 116-87-2SD-NEC of 14 October 1987 declared a
- list of workers' demands to be irreceivable on the grounds that, although new
- machinery had indeed been installed and the demands therefore came within the
- terms of Supreme Decree No. 12 D.T., the machinery had been purchased and
- installed after the presentation of the demands; and the enterprise's refusal
- to negotiate the demands was therefore justified, though the claimants were
- entitled to submit a new list of demands with respect to the new machinery. In
- practice, this has meant that the trade union has wasted a year and has had to
- initiate proceedings again which, as in the previous instance, have been
- formally rejected by the enterprise.
- 202. The complainant organisations add that, in addition to the provisions
- referred to, the restrictions on wage claims are based on section 5 of the
- Supreme Decree of 29 March 1945 which stipulates that "no wage claims related
- to cost-of-living increases shall in future be admitted", following the
- introduction of a system of automatic readjustment of remuneration under an
- agreement which, as will be seen below, has been suspended unilaterally by the
- Government yet is still supposed to apply to collective demands.
- 203. According to the complainants, this restriction which initially
- concerned only conditions of remuneration was subsequently extended, in the
- case of works unions, to working conditions. Thus, at first the restriction
- was taken as referring solely to wages, and works committees were able to
- negotiate conditions of work and employment. Subsequently, when collective
- bargaining was introduced at the federal level, this right was reserved
- exclusively for the national federation and was denied to the works unions,
- which are the most active part of the country's trade union movement.
- Subdirectorial Decision No. 116-87-2SD-NEC accordingly states that, "by virtue
- of the constant and repeated rulings of the labour administration, ... demands
- relating to working conditions submitted by employees in the textile industry
- ... shall be negotiated at the level of the federal trade union". Conversely,
- the Textile Federation is recognised as being empowered to negotiate only
- working conditions and not wages. However, the complainants point out that
- Peruvian legislation contains no provision for denying such a right, which
- should be left entirely to the discretion of the social partners. Hence the
- paradoxical situation in which a large number of textile unions are unable to
- negotiate wage conditions because they do not meet the requirements of Supreme
- Decree No. 12 D.T. and are unable to negotiate working conditions because the
- labour authorities have decided that such negotiations are possible only at
- the sectoral level.
- 204. The complainants allege further that in 1976 the existing systems of
- automatic wage readjustment were suspended by Legislative Decree No. 21531
- (section 10) for a specified period of time which was successively extended.
- Previously, workers in the textile industry had benefited from an automatic
- wage readjustment by virtue of a collective agreement concluded on 21 March
- 1945 and legalised by the Supreme Decree of 29 March 1945. In 1981 the
- Peruvian Government endeavoured to correct the injustice by reintroducing an
- automatic wage readjustment scheme devised by the Ministry of Labour itself,
- although the new scheme is not the same as that of the 1945 collective
- agreement, which has been suspended indefinitely. The new readjustment scheme
- was implemented by means of the creation by Ministerial Ruling No. 079-81-TR
- of "standard scales" which were regularly updated and which have now been
- replaced by "conversion scales" introduced by Ministerial Ruling No.
- 100-87-TR. As indicated in its preamble, the latter originated in a decision
- to devise a wage system for the textile industry that would entail the
- disappearance of the standard scales so as to bring them in line with the
- scope and objectives of the Supreme Decree of 29 March 1945. However, none of
- the formulas devised so far by the Peruvian Government corresponds to what the
- workers and employers voluntarily agreed upon. Although the labour authority
- is quite aware that the indefinite suspension of the 1945 collective agreement
- - merely because it wishes to help employers in the textile industry by
- introducing a system that sets wages lower than they should be under the
- agreement - is completely arbitrary, it persists in doing so. It no longer has
- the excuse initially advanced that the country was going through an industrial
- recession, as this is now not the case in the textile industry. Nor is there
- any possible justification for prolonging indefinitely - in one way or another
- - a 12-year-old measure which by its very nature was supposed to be
- exceptional. In a communication to the Minister of Labour and Social
- Advancement dated 2 October 1987 the Peruvian Parliament itself informed the
- executive that the Chamber of Deputies had decided to draw its attention to
- this state of affairs "so that it might take the necessary steps to enforce
- the collective labour agreement of 21 March 1945, legalised by the Supreme
- Decree of 29 March of the same year, which provides for the automatic
- readjustment of remuneration in the textile sector, the latter being mandatory
- for the parties concerned in accordance with article 54 of the Constitution".
- This request was ignored by the Government which maintained its unilateral
- decision to suspend the agreement.
- 205. Finally, the complainant organisations state that all the claims
- presented by the Textile Federation since 1981 in its negotiations by branch
- of industry at the national level have been dealt with unilaterally by the
- Ministry of Labour itself, since the employers have not the slightest interest
- in reaching any kind of agreement as it is much easier for them to wait for
- the Ministry (where they have a powerful lobby) to come up with a solution
- which is bound to be in their favour. This, they allege, is a patently
- disloyal attitude that reflects the bad faith with which they approach
- negotiations in the sector.
- B. The Government's reply
- 206. In its communication dated 26 September 1988, the Government states
- that, in accordance with the collective agreement concluded on 21 March 1945
- and the provisions of the Supreme Decree of 29 March of the same year, all
- textile workers throughout the country benefit from the automatic monthly
- readjustment of their remuneration based on the cost of living. In other
- words, this is the option that has been chosen to readjust wages instead of
- periodically submitting a list of demands. Given the existence of this
- automatic adjustment scheme, Supreme Decree No. 5 D.T. of 17 August 1956
- announced the suspension of negotiations over wage demands in the textile
- industry except in so far as the system of work is changed. Supreme Decree No.
- 12 of 13 December 1960 subsequently amended section 7 of that Decree by adding
- that, without prejudice to the automatic readjustment of remuneration based on
- the cost of living, wage increases may be requested in the following specific
- cases:
- a) when the place of work concerned has not concluded a collective
- agreement or has not settled a collective wage demand;
- b) when the workers are employed in places of work set up after 17 August
- 1956, in so far as the corresponding wage scales have not been determined by
- agreement or by judicial or administrative award;
- c) when after 17 August 1956 new machinery is installed, existing machinery
- is modernised or working conditions are introduced that make greater demands
- on the workers or give them more responsibility, without the corresponding
- wage scale being fixed.
- 207. The Government adds that article 54 of the Constitution of Peru
- promulgated by the Constituent Assembly in 1979 provides that "collective
- labour agreements between workers and employers have force of law". Thus, in
- so far as a system of automatic readjustment of remuneration based on the cost
- of living was established for textile workers pursuant to the 1945 collective
- agreement, this is the system that has been chosen to maintain the level of
- real incomes and to avoid a decline in purchasing power. Consequently, the
- Government cannot accept the position of the complainant confederations that
- it should be possible at the same time to submit wage claims, since this would
- mean that there would simultaneously be two methods or channels for achieving
- the same objective, whereas they are mutually exclusive. As indicated in the
- previous paragraph, however, textile workers are entitled to negotiate wage
- increases collectively at the level of each workplace in the exceptional
- circumstances set out in Supreme Decree No. 12 D. T. of 13 December 1960, in
- which case the demands are taken up and discussed once the existence of such
- exceptional circumstances has been established by expert appraisal.
- 208. The Government concludes by stating that the State has not limited or
- restricted collective bargaining for textile workers since the parties
- concerned opted freely for the system in force, and that only they can decide
- to abandon the automatic readjustment of wages based on the cost of living
- and, instead, discuss wage increases on an annual basis. In any case, the two
- systems cannot exist side by side. At present, collective bargaining applies
- only to the exceptional circumstances set out in the Supreme Decree referred
- to above. The textile workers benefiting from the automatic readjustment of
- their remuneration are in fact in a privileged position compared to other
- workers, who regularly demand to be allowed to benefit from the same system as
- the textile workers. Since the latter are already in this advantageous
- position, they have the non-exclusive second option of having their wages
- increased by virtue of the exceptions to the legal norm already referred to.
- They are now claiming as a third option to be able to submit freely an annual
- list of demands to have their income readjusted.
- 209. As to the alleged unilateral imposition of the level at which
- negotiations can take place, the complainant organisations claim that the
- Government does not allow wage increases to be discussed at the level of the
- federation but only at the level of each workplace. The Government states
- that, as it has already pointed out, the existence of a system of automatic
- readjustment of remuneration based on the cost of living means that wage
- claims cannot as a general rule be submitted either by a trade union or by a
- federation as there would then be two systems of readjustment operating side
- by side. A special provision exists, however, whereby collective claims can be
- put forward in so far as they relate to the exceptional circumstances set out
- in Supreme Decree No. 12 D.T. of 13 December 1960. Since these exceptional
- circumstances arise in specific workplaces, then it is for the workers
- concerned in each case to request an increase in the wage scale and not for
- the higher-level trade union organisation, since the particular circumstances
- do not affect all the workers in the textile industry or national federation.
- The situation is quite different with grievances concerning conditions of work
- which do concern all textile workers at the national level, and these are
- submitted by the National Federation of Textile Workers of Peru. In other
- words, there has been no unilateral decision but merely the implementation of
- a system for which the workers and employers themselves opted.
- 210. As regards the alleged suspension of the collective agreements by the
- Government between 1976 and 1981 (it was during this period that the agreement
- of 21 March 1945 concerning the automatic readjustment of remuneration in
- accordance with the increase in the cost of living was suspended), the
- Government stresses that the suspensions occurred while the country was under
- military rule and during part of the presidency of Fernando Belaunde Terry and
- not under the Government of President Alan Garcéa Pérez. President Garcéa
- Pérez has not only fully enforced the system of automatic readjustment of
- remuneration but, in addition, has adopted the following concrete measures in
- favour of the textile workers:
- - Ministerial Ruling No. 451-86-TR of 17 September 1986 formally
- established that as from 1 May 1986 the standard scale for the cost of living
- in the textile industry would be updated each month on the basis of the
- general consumer price index for the Province of Lima. The Ruling also
- provided for the creation of a tripartite committee to look into the
- standardisation of the system of wages in the textile industry so as gradually
- to do away with the so-called "standard scales", which tended to distort the
- proper operation of the automatic readjustment system, and to bring that
- system into line with the scope and objectives of the 1945 agreement.
- - Ministerial Ruling No. 471-86-TR of 3 October 1986 determined that, while
- the tripartite technical committee was engaged in this task, the textile
- workers of the entire country should be granted a 6 per cent increase as from
- 1 May 1986 over and above the standard scale for the cost of living in the
- textile industry for the previous month, irrespective of the automatic monthly
- cost-of-living increase; in this way the Government not only applied the
- existing system but actually increased the real income of the workers
- concerned.
- - Ministerial Ruling No. 100-87-TR of 26 March 1987, which was issued after
- the tripartite technical committee had submitted its report, contained a
- number of important decisions, namely:
- a) the standard scales for the cost of living in the textile industry
- which had listed over 3,000 items up to 31 December 1986 ceased to exist as
- from 1 January 1987 (this decision thus went beyond the intention expressed in
- Ministerial Ruling No. 471-86-TR that their elimination should be "gradual");
- b) the wage rates expressed in "soles" at 1945 prices which were
- applicable on 31 December 1986, whether relating to fixed or to variable
- remuneration, were to be brought up to date as from 1 January 1987 and
- converted into "intis" units, based in each case on the cost of living in the
- textile industry corresponding to the basic wage for each post and job in each
- workplace;
- c) the amounts reached by the foregoing method of calculation were to be
- increased by a further 6 per cent, plus a fixed sum of I/.17 per day.
- 211. The Government observed that it is abundantly clear that it has adopted
- a series of decisions which, far from entailing the suspension of the system
- of automatic adjustment of wages for textile workers, are designed to enforce
- that system, to do away with features that distorted its proper application
- and, by making allowance for more than the rate of inflation and thereby
- improving on the system itself, to raise the real income of the workers by the
- payment of amounts over and above those corresponding to the automatic
- readjustment of their wages. The Government is somewhat surprised that, during
- the period when the system of automatic readjustment really was suspended, the
- General Confederation of Workers of Peru never lodged a complaint and that it
- should do so now when the system is once again fully operational and when very
- important decisions have been taken to improve it. The explanation is possibly
- that the CGTP has not examined the problem in sufficient detail, especially as
- it is a very complex matter and concerns a special system that calls for
- expert analysis.
C. The Committee's conclusions
C. The Committee's conclusions
- 212. The Committee observes that, in answer to the allegation that Decree
- No. 5 of 1956 and No. 12 of 1960 prohibit wage negotiations in the textile
- sector at the level of the branch of activity and permit such negotiation in
- textile enterprises only in three exceptional sets of circumstances whose
- common denominator is the non-fixing of the relevant wages, the Government
- states that the 1945 collective agreement, which is still applicable,
- established a system of automatic readjustment of remuneration for textile
- workers based on the cost of living which places these workers in a privileged
- position compared to all other workers, but excludes the possibility of their
- submitting any wage claims. Although the Committee notes that in the 1945
- collective agreement the signatories stipulated that "there shall in future be
- no wage claims with respect to increases in the cost of living", it wishes to
- point out that, although the clause specifically excludes wage claims "with
- respect to increases in the cost of living", it does not exclude the
- possibility of claims being submitted on other grounds such as the level of
- productivity and profits in the textile sector.
- 213. The Committee further considers that the legislative provisions
- prohibiting the negotiation of wage increases beyond the level of the increase
- in the cost of living are contrary to the principle of voluntary collective
- bargaining embodied in Convention No. 98. Such a limitation would be
- admissible only if it remained within the context of an economic stabilisation
- policy, and even then only as an exceptional measure restricted to what is
- absolutely necessary and limited to a reasonable period of time.
- 214. With regard to the alleged suspension of the provisions of the 1945
- collective agreement concerning the automatic readjustment of remuneration and
- their replacement initially by a system of "standard scales" and currently by
- a system of "conversion scales" pursuant to a ministerial ruling of 1987, the
- Committee notes the Government's claim not only that it is respecting the
- automatic readjustment system in full, but also that it has adopted a series
- of measures in favour of textile workers that go further than that system in
- terms of real income. Although it does not have sufficient facts at its
- disposal to determine which automatic readjustment system (that provided for
- in the 1945 collective agreement or that which currently applies) is more
- advantageous to the workers, the Committee must draw attention to the fact
- that the present system was introduced by ministerial rulings, that it does
- not correspond to what was agreed upon in the 1945 collective agreement and
- that it is objected to by the complainant organisations in this present case.
- The Committee therefore calls on the Government to take, as soon as possible,
- the necessary steps to ensure that the system of automatic readjustment of
- remuneration provided for in the 1945 collective agreement, which is still in
- force, is fully applied.
- 215. As to the allegation that, according to the case law of the
- administrative labour authority, the negotiation of working conditions other
- than wages is prohibited at the level of the enterprise in the textile
- industry, the Committee notes the Government's assertion that the National
- Federation of Textile Workers of Peru is able to submit claims concerning
- conditions of work - which cover all textile workers at the national level -
- not by virtue of a unilateral decision of the Government but because it is in
- keeping with a system for which the workers and employers themselves opted.
- 216. Drawing attention to the contradiction between the explanations given
- by the complainants and by the Government regarding the impossibility of
- negotiating working conditions other than wages at the level of the
- enterprise, the Committee emphasises that, according to the principle of free
- and voluntary collective bargaining embodied in Article 4 of Convention No.
- 98, the determination of the bargaining level is essentially a matter to be
- left to the discretion of the parties (see 202nd Report, Case No. 915 (Spain),
- para. 53) and that, consequently, the level of negotiation should not be
- imposed by law, by decision of the administrative authority or by the case law
- of the administrative labour authority.
- 217. Finally, the Committee observes that the Government has not replied to
- the allegation that since 1981 all claims presented at the national level by
- the Textile Federation have been settled unilaterally by the Ministry of
- Labour since the employers have not the slightest interest in reaching any
- kind of agreement through direct negotiations. In this connection, the
- Committee recalls that on another occasion (see 248th Report, Case No. 1367
- (Peru), para. 169) it reached the conclusion that section 13 of Supreme Decree
- No. 009-86-TR establishes unilaterally a system of compulsory arbitration by
- the administrative authority following the failure of the negotiation and
- conciliation stages, which in practice prevents the declaration or
- continuation of a strike. The Committee reiterates, as it did on that
- occasion, that provisions which establish that failing agreement between the
- parties the points at issue in collective bargaining must be settled by
- arbitration by the labour authorities do not conform to the principle of
- voluntary negotiation contained in Article 4 of Convention No. 98 (see 116th
- Report, Case No. 541 (Argentina), para. 72).
The Committee's recommendations
The Committee's recommendations
- 218. In the light of the foregoing conclusions, the Committee invites the
- Governing Body to approve the following recommendations:
- a) With reference to Decrees No. 5 of 1956 and No. 12 of 1960 which
- prohibit in principle the negotiation of wage increases in the textile sector
- beyond the level of the increase in the cost of living, the Committee recalls
- that such a limitation would be admissible only if it remained within the
- context of an economic stabilisation policy, and even then only as an
- exceptional measure restricted to what is absolutely necessary and limited to
- a reasonable period of time. The Committee calls on the Government to take, as
- soon as possible, the necessary steps to ensure that in the textile industry
- the system of automatic readjustment of remuneration provided for in the 1945
- collective agreement, which is still in force, is fully applied.
- b) The Committee stresses that the determination of the bargaining level is
- essentially a matter to be left to the discretion of the parties and that the
- level of negotiations should not be imposed by law, by administrative decision
- or by the case law of the administrative labour authority.
- c) Bearing in mind that the system of compulsory arbitration established
- unilaterally by Supreme Decree No. 009-86-TR does not conform to the principle
- of voluntary negotiation embodied in Article 4 of Convention No. 98, the
- Committee once again requests the Government to take steps to have the Decree
- amended.
- d) The Committee draws this case to the attention of the Committee of
- Experts on the Application of Conventions and Recommendations.