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The Committee notes with interest the Government’s report and the information it contains, especially with regard to the increases in the inter-occupational minimum wage (SMI) which have occurred in recent years. It notes that the SMI, which was 451 euros (€) in 2003, increased by 2 per cent during the first half of 2004 and that a second (6.6 per cent) increase was then made to offset the loss of purchasing power which occurred between 1996 and 2003. The Committee notes that the increase in the SMI was 4.5 per cent in 2005, 5.4 per cent in 2006 and 5.5 per cent in 2007, these increases being greater than those of the consumer price index. Accordingly, the SMI was €570 per month in 2007, or 621 PPS (purchasing power standard). Finally, the Committee notes that the Government intends to increase the minimum wage to €600 in 2008 and to €800 during the next legislative session.
The Committee notes with interest the adoption of Royal Legislative Decree No. 3/2004 of 24 June 2004, the preamble to which explicitly mentions the Government’s objective of enhancing the status of the SMI by bringing it closer to the threshold considered acceptable by the European Committee on Social Rights, namely 60 per cent of the average national wage. It notes that, according to data published by Eurostat, the SMI represented 35.56 per cent of average monthly earnings in industry and services in 2003; 36.5 per cent in 2004; 40.44 per cent in 2005; and 41.39 per cent in 2006. The Committee also notes that, under the terms of section 1 of the above mentioned Royal Legislative Decree, the SMI no longer serves as a basis for calculating certain social benefits. In this respect, it notes that this dual role previously played by the minimum wage constituted the main obstacle to increasing it, because of its direct impact on public finances.
Moreover, the Committee notes that, according to data published by Eurostat, in 2005 Spain was the European Union Member State with the lowest percentage (0.8 per cent) of full-time workers being paid the minimum wage. The Committee also notes the indications in the Government’s report to the effect that between 80 and 85 per cent of workers are covered by a collective agreement and are paid a wage greater than the SMI.
Finally, the Committee understands that the Government, in the context of negotiations conducted in 2004 and 2005, intended to maintain purchasing power for recipients of the SMI by prescribing that increases in the minimum wage should not be less than the rate of inflation. The Committee requests the Government to indicate whether measures have been taken to this end and, if so, to send copies of the texts which are applicable in this regard.
The Committee also requests the Government to continue providing information on changes in the legal minimum wage and on the application of the Convention in practice. In particular, the Government is requested to supply information on trends in the relationship between the minimum wage and the average national wage and on the percentage of workers being paid the minimum wage in the main branches of economic activity (particularly in agriculture, the hotel industry and construction). The Committee also invites the Government to supply information on the results of labour inspection visits with regard to observance of the legal provisions concerning the inter-occupational minimum wage.
The Committee notes the Government’s report and its reply to the comments of the General Workers’ Union (UGT), which were examined in its previous observation.
Articles 2 and 3 of the Convention. In connection with the comments of the UGT on the factors taken into consideration in determining the interoccupational minimum wage (SMI), the Committee notes the Government’s statement that the four elements referred to under section 27.1 of the Workers’ Charter are taken into consideration, that is the consumer price index, the average national productivity, the increase in the share of labour in national income and the general economic situation. The Government adds that the determination of the SMI is not automatically decided upon from the addition of specific factors, but is the result of an economic policy decision which takes into account the main macroeconomic factors, the economic and social objectives of the Government and the consultations with the social partners.
The Committee notes the Government’s indication concerning the difference between the average wage and statutory minimum wage, according to which the two concepts should not be related, as the first is an economic and statistical calculation based on data, while the latter is a legal concept based on hypothetical criteria. According to the Government, a simple mathematical comparison of the two cannot be used to determine whether the statutory minimum wage is sufficient to cover workers’ basic needs, since workers paid the minimum wage benefit from legal protection through fiscal and other social benefits, including housing, allowances, education grants, and assistance benefits, which other workers paid average wages do not receive or receive to a lesser extent.
Furthermore, the Government, referring to the specificities of the Spanish system, indicates that the SMI has a dual effect: on the one hand, it guarantees workers the minimum wage necessary to cover their basic needs by limiting the freedom of the parties to determine the remuneration for work; on the other hand, it serves to identify the income level entitling workers to certain benefits (education grants, legal assistance free of charge, unemployment assistance, etc.) and acts as a reference point for quantifying certain social benefits and contributions. According to the Government this implies that an increase in the SMI has a direct impact on public expenditure, and therefore has to be fully consistent with its economic policy objectives.
The Committee requests the Government to indicate the manner in which it ensures that the annual adjustment of minimum wages reflects the basic needs of workers and their families, for example by guaranteeing the maintenance of their purchasing power in relation to a certain basket of basic products. The Committee also requests the Government to provide statistical information on changes in the minimum wage rates in relation to fluctuations in the inflation rate and the consumer price index over recent years.
Article 5 and Part V of the report form. The Committee notes Royal Decree No. 1466/2001 of 27 December 2001 which establishes the SMI for 2002 at 14.74 euros a day or 442,20 euros a month. The Committee requests the Government to continue to provide general information on the application of the Convention in practice, in particular: (i) statistical information on the results of inspections carried out relating to minimum wages (violations reported, sanctions imposed, etc.); (ii) the approximate number of workers covered by minimum wage rates in force; (iii) the minimum wage rates; and (iv) copies of studies or recent official reports on the minimum wage system and any other information relating to the application of the provisions of the Convention.
The Committee notes the observations made by the General Confederation of Workers (UGT), which were forwarded to the Government on 14 February 2000, although the latter’s comments have not yet been received. The Committee also notes the observations of the Democratic Confederation of Labour (CDT) of Morocco and the Government’s reply to these observations.
1. With reference to the observations made by the UGT, the Committee notes that, according to the UGT, when determining the inter-occupational minimum wage (SMI), the Government only takes into consideration the consumer price index, without taking into account a series of other factors, such as average national productivity, the increased share of labour in the national income and the general economic situation, as established in Article 3, paragraph (b), of the Convention. The Committee also notes that, according to the UGT, the European Committee on Social Rights, the body responsible for the application of the European Social Charter, considered in 1996 that the SMI determined by the Government was once again unjust and inadequate, since it only amounted to 36 per cent of the average gross wage and was approximately 24 points below the level considered appropriate in the Charter (60 per cent of the average net wage).
The Committee notes that, taking into account these indications, the UGT and another workers’ organization requested the Government to increase the SMI in 2000. Nevertheless, the Government did not grant the request and increased the SMI by a percentage that was different from the level proposed by the above organizations.
The Committee recalls that, as it pointed out in its 1992 General Surveyon minimum wages, it has always emphasized the respect which is required for the fundamental principle of consultation and the participation of employers’ and workers’ organizations in the application of minimum wage-fixing machinery. The Committee however recognizes that consultation is only one stage in the decision-making process, as it indicated in its 2000 General Surveyon tripartite consultation.
The Committee hopes that the Government will provide its comments as rapidly as possible on the UGT’s allegations.
2. With reference to the observations made by the CDT of Morocco concerning events in El Ejido (Almeria), the Committee notes that according to this organization, the Spanish Government should undertake to establish a system of minimum wages applicable to all groups of employees whose terms and conditions of employment are such that they require the safeguard of such protection.
The Committee notes the Government’s statements that, in terms of wages, Moroccan workers are covered in the same way as other workers by the corresponding collective agreement and that all workers who are not covered by a collective agreement are covered by the inter-occupational minimum wage which, in 2000, is set at 76,680 pesetas a month (equivalent to 4,258 dirhams), and that all Moroccan workers for any complaint respecting wages or general conditions of work can have recourse to the labour courts which are competent in such matters under the same conditions as Spanish workers.
The Committee hopes that the Government will continue to provide information on any developments in this respect.
Article 1, paragraph 3, of the Convention. The Committee notes with satisfaction the adoption of Royal Decree No. 2015/97, establishing a minimum wage without distinction based on age and for equality of wages between those over and under 18 years.
Article 3. The Committee notes the adoption of Royal Decrees Nos. 2015/97 and 2817/98 which respectively determine inter-occupational minimum wages for 1998 and 1999. The Committee also takes note of the Government's indication that, when determining the inter-occupational minimum wage (SMI), it will take the following into account: the consumer price index; national average productivity; the increase in contribution of the labour force to national income and the general economic situation, as established by section 27.1 of the Workers Statute. The Committee trusts that the Government, in determining minimum wages or the frequency of revisions thereof, will take care to ensure to workers a minimum wage that will provide a satisfactory standard of living for them and their families, in conformity with subparagraph (a) of this provision of the Convention.
Article 4, paragraph 2. The Committee notes the indication of the Government in its report that the SMI is not fixed by an automatic decision based on a calculation of certain factors, but entails an economic policy decision, and it is precisely for this reason that consultations with the social partners take place, as provided for by section 27.1 of the Workers Statute. In this connection the Committee would like to recall that, as stated by the tripartite committee established to examine the representation made by the Trade Union Confederation of Workers' Committees in its report submitted to the 243rd meeting of the Governing Body (GB.243/6/22), the consultations with the social partners referred to in this provision of the Convention are not a simple formality; their purpose is to enable account to be taken of the opinion of the social partners at the time of taking the decision. As the Committee pointed out in the General Survey on tripartite consultation, the term "consultation" has a different connotation both from mere "information" and from "codetermination", and it should enable influence to be exerted in decision taking. The Committee hopes that the Government will supply more detailed information in its next report on consultations with the social partners, including for example the existence of discussions of the replies provided by the latter, or other procedures the aim of which is to ensure "full" consultations as required by this provision of the Convention.
1. The Committee notes the observations made by the General Union of Workers (UGT) concerning the application of the Convention in the country. Although these observations were communicated to the Government in March 1998, up to now no response or comment has been received from the Government.
2. The UGT points out in its observations, first, that the Interprofessional Minimum Wage (SMI) in Spain is fixed each year by the Government after a non-binding consultation with the social partners, which generally ends up as an information session on the Government's intention, without taking account of the trade unions' proposals. According to the UGT, the SMI directly affects the fixing of wages for a large number of workers, constitutes a point of reference for determining many basic benefits in the system of social protection (subsidies and benefits for unemployment, minimum pensions, social wages, wages guaranteed in the case of the employer's insolvency, etc.) and provides conditions of access to other benefits and rights (scholarships, officially protected housing, etc.).
3. The UGT observes that the fixing of the SMI has been constantly criticized on two main grounds, viz. (i) because its amount and periodical revisions do not comply with the national legislation or the accepted international criteria, and (ii) because it establishes a clear discrimination against workers under 18 years of age, for whom lower wages are fixed. Regarding the latter point, the UGT notes that the SMI fixed for 1998 will be applied to all workers, as the SMI for those under 18 years of age has disappeared.
4. The UGT states that the SMI has lost 2.5 points of purchasing power in the last decade, and continues to worsen further with the latest decision to fix the amount of SMI at 68,040 pesetas for 1998. The UGT recalls that section 27.1 of the Workers' Statute makes it obligatory to fix the SMI taking account of the consumer price index, the average national productivity attained, the increase of the labour participation in the national income and the general economic conjuncture. According to the UGT, the Executive applied only the first of these criteria (consumer price index) raising the previous amount by 2.1 per cent. The UGT considers that such a decision was also an infringement of Convention No. 131.
5. The Committee recalls again that it requested, in its observation of 1997, the Government to provide information on the measures taken to ensure effective consultation with employers' and workers' organizations concerned before the fixing of the SMI, in accordance with the provision of Article 4 of the Convention.
6. The Committee hopes that the Government will communicate detailed information in its next report regarding the observations made by the UGT and on the outstanding questions relating to the consultation with the organizations concerned.
[The Government is asked to report in detail in 1999.]
The Committee notes the detailed information supplied by the Government in its report.
Periodic adjustment of minimum wages
In its previous comments relating to the observations submitted by the General Union of Workers (UGT), the Committee requested the Government to indicate the procedure followed, under section 27(1) of the Workers' Statute which provides for the half-yearly revision of the interoccupational minimum wage (SMI) in the event that the price index forecasts prove inaccurate, in order to verify the correctness of the forecast and to determine whether the SMI should be revised, and to indicate whether the employers' and workers' organizations are consulted in this regard.
The Government indicates that during the reference period there have been no half-yearly revisions of the SMI in application of section 27(1) of the consolidated Workers' Statute. The Government recalls, however, that following the amendment of the regulations on the legal wages system by Royal Decree No. 170/1990 of 9 February 1990, loss of purchasing power is considered as a factor to be taken into account in revising wages when inflation proves to be higher than forecast and adopted for determining the minimum wage. Possible differences between the rate of inflation forecast and the actual rate may be known at the moment of determining the amount of minimum wage which will be in force the following year, by applying this minimum wage correction factor, namely the loss of purchasing power, in accordance with the revision clause provided in collective labour agreements or those applicable to civil servants and retirees.
The Committee notes these indications and requests the Government to indicate whether employers' and workers' organizations were consulted before the provisions relating to half-yearly re-examination of the SMI were used.
Application of the principle of equal remuneration for work of equal value for young workers receiving interoccupational minimum wage
In previous comments, the Committee noted the Government's statement to the effect that since 1990 the SMI has been fixed for workers of 18 years and over and for those under 18, while previously a distinction was made between workers up to 16 years old, those 17 years old and those 18 and over. It also noted point 10 of part II (Legal grounds), of the constitutional court decision dated 7 March 1984 (BOE of 3 April 1984) in which it was confirmed that the principle of equal wages for the same work or work of equal value applies to workers of all ages. The Committee requested the Government to indicate the measures taken or contemplated to ensure that workers under 18 years old can, as stated in the report, receive wages equal to those of older workers for the same work or work of equal value.
The Committee notes with satisfaction the indication supplied by the Government in its report that, in addition to abolishing the wage differential for 16-year old workers, Royal Decree No. 2199/95 fixing the interoccupational minimum wage for 1996 initiates a process of closing the gap in minimum wages for adults and workers younger than 18 years of age, with the aim of aligning them definitively within three years. Hence, for 1996, the wage for young workers amounted to 77.4 per cent of that for adult workers whereas the percentage in 1995 was only 66.1 per cent. Similarly, Royal Decree No. 2656/96 fixing the interoccupational minimum wage for 1997, increases the minimum salary for minors under 18 years old by 17.73 per cent, as in the previous year, while the wage for adults over 18 years old increases by only 2.6 per cent.
The Committee requests the Government to continue to supply information on the convergence of interoccupational minimum wages for adult workers and minors.
Minimum wages for apprentices
In previous comments, the Committee, referring to the UGT's comments noted that the Workers' Statute provides in section 11(2) for the possibility of an apprenticeship contract for workers over 16 and under 25 years old and that the maximum age-limit does not apply to disabled workers. At that time, the Committee requested the Government to supply information on the application in practice of these provisions, particularly in regard to measures taken or envisaged to prevent the abatement of the minimum wage.
The Government indicates in its report that there have been various changes in the minimum wage for workers under a contract of training. A new section 11(2), which amends the old section 11(2) of the Consolidated Act on Workers' Status, replaces the training contract by an apprenticeship contract, and gives it a meaning that has a particular legal status. By this meaning, the purpose of the apprenticeship contract is to enable the apprentice to acquire the theoretical and practical training needed for performing a job or occupying a post of skilled work. It may be concluded with workers aged over 16 and under 25 years who do not possess the qualifications required for concluding a traineeship contract. The maximum age-limit does not apply to disabled workers. The theoretical training periods must alternate with practical work, comply with the provisions of the relevant collective agreement or, failing this, the labour contract, provided that the total time devoted to training is not less than 15 per cent of the maximum working day provided in the collective agreement. The theoretical part of the training is deemed to be complete when the apprentice confirms by means of a certificate issued by the competent public authorities that an occupational training course has been followed appropriate for the office or post in which the apprenticeship is undertaken. In this case, the worker's remuneration will increase in proportion to the work time not devoted to training. Enterprises which do not comply with their theory training obligations must compensate the worker by paying a sum equal to the difference between the wage received (bearing in mind the training time provided in the contract), and the interoccupational minimum wage or that provided under the collective agreement, without prejudice to the sanction incurred. The apprentice's remuneration is fixed by the collective agreement but, where there is no agreement, it may not be less than 70, 80 or 90 per cent of the interoccupational minimum wage during the first, second and third years of the contract respectively. In addition, the remuneration of apprentices aged under 18 years may not be lower than 85 per cent of the interoccupational minimum wage corresponding to his age.
According to the Government, the reduction in the interoccupational minimum wage corresponds to the occupational training which the worker receives in the enterprise.
The Committee notes these indications with interest. It requests the Government to continue to supply information on the impact of applying these measures to apprentices' minimum wages.
The Committee notes the information supplied with the Government's report, and in particular, the observations made by the General Union of Workers (UGT).
The UGT points out (1) that the consultation before fixing the Interprofessional Minimum Wage (SMI) is confined to only one meeting per year with the workers' organizations, which is not enough for a detailed analysis of different elements, and which therefore results in the loss of purchasing power of the SMI; (2) that the differentiation of the minimum wage rates for the workers of 18 years and over and for those of less than 18 years is resulting in discrimination since neither the work performed nor the working hours are different; (3) that under the contract for training ("Contrato para la formación" under section 11(2) of the Workers' Statute (Act No. 8 of 10 March 1980, as amended by Act No. 32 of 2 August 1984), many young workers (261,916 contracts of this type in 1991) receive wages at less than the minimum rate because the employers can reduce the wages up to a half in relation to the time spent for teaching; and (4) that the provision of section 27(1) of the Workers' Statute concerning half-yearly revision of the SMI has not been implemented.
Regarding points (1) and (4) above, the Government indicates that the SMI has been revised annually after consultation with the representative organizations of the employers and the workers. It states that for the purpose of such consultation, the Government sends sufficient informative documentation and organizes meetings, and that workers' organizations often send back their proposal in writing, in which case the Government holds a last meeting to give the reply before the decision on the new SMI. The Government also indicates that the annual increase rates of the SMI were 6.0 per cent in 1989, 7.1 per cent in 1990 and 6.5 per cent in 1991, while the Consumer Price Index (CPI) in the real term increased 6.9 per cent, 6.5 per cent and 5.5 per cent respectively in the same period.
The Committee notes these indications. Regarding the periodicity of the adjustment, the Committee recalls that the tripartite committee set up to examine the representation made by the Trade Union Confederation of Workers' Committees (CC.OO.) under article 24 of the ILO Constitution concerning the application of section 27 indicated that "taking account of the information available, the Government has not failed to comply with the provisions of Article 4, paragraph 1, of the Convention in maintaining machinery whereby 'minimum wages can be adjusted from time to time'" (GB.243/6/22, Geneva, June 1989). The Committee further recalls that the Convention does not specify the frequency of wage adjustment. A given frequency of the minimum wage adjustment is in accordance with the provisions of the Convention insofar as it responds to the principal objective of the Convention, i.e. to ensure to workers a minimum wage that will provide a satisfactory standard of living for them and their families (paragraph 428 of the General Survey of 1992 on the Minimum Wages). In this connection, the Committee requests the Government to indicate the procedure followed under section 27(1) of the Workers' Statute which, however, provides for the half-yearly revision of the SMI in the case where the CPI forecasts did not prove correct, in order to verify the correctness of the CPI forecast and to determine whether the half-yearly revision of the SMI is necessary. It asks the Government to state whether the employers' and workers' organizations are consulted in this regard.
As to point (2) of the UGT's comments, the Committee notes the Government's indication that since 1990, the SMI has been fixed for the workers of 18 years of age or older and for those of less than 18, while previously there were three categories, i.e. up to 16 years, 17 years of age and 18 years and over. It also notes the court decision dated 7 March 1984 (BOE 3 of April 1984), in particular, point 10 of II. Legal Grounds, in which it was confirmed that the principle of equal wage for equal work also applies to the workers of different age. The Committee requests the Government to indicate concrete measures taken or contemplated to ensure that workers of less than 18 years can, as stated in the Government's report, receive equal wages if they perform work equal to that of the adults.
The Committee notes, regarding point (3) of the UGT's comments, that the Workers' Statute provides in section 11(2) for the possibility of a training work contract for workers of more than 16 and less than 20 years of age and, without the upper age limit, for disabled workers. The Committee requests the Government to supply information on the application in practice of these provisions, and, in particular, on measures taken or contemplated to prevent the abatement of the minimum wages.
The Committee takes note of the report of the committee set up to examine the representation made by the Trade Union Confederation of Workers' Commissions (CC.OO.) under article 24 of the ILO Constitution, alleging non-observance by Spain of this Convention (GB.243/6/22, Geneva, June 1989). It also takes note of the statement made by the representative of the Government of Spain at the 243rd meeting of the Governing Body, and the Government's communication of 16 May 1989 in which reference is made to the Committee's comments.
Articles 3(a) and (b) and 4, paragraph 1, of the Convention. In its observation, the CC.OO. indicated that the minimum wage is not being automatically adjusted to the Consumer Price Index (IPC), and it also pointed out that when the inter-occupational minimum wage is fixed, the needs of workers and their families are not taken into account, as the average rate of increase of the wages of workers covered by collective agreements is considerably higher than the wage of the workers covered by the inter-occupational minimum wage. It also pointed out that no account is taken of economic growth, since, according to the CC.OO., the rate of economic growth attained (from 5 to 6 per cent for 1988) has led to an increase in productivity which, in turn, should justify the minimum wage being increased to a level higher than the one granted by the Government. According to the CC.OO., the foregoing situations are contrary to the provisions of Articles 3(a) and (b) and 4(1) of the Convention.
The Committee recalls that the committee that examined the representation made by the CC.OO. indicated that "taking account of the information available, the Government has not failed to comply with the provisions of Article 4, paragraph 1, of the Convention in maintaining machinery whereby 'minimum wages can be adjusted from time to time'". In this connection, the Committee also indicated that "the methods for the fixing and adjustment of minimum wages are in accordance with the provisions of the Convention in so far as they respond to the principal objective of the Convention", which, moreover, does not specify the frequency of wage adjustments.
However, in view of the provisions of Article 3 of the Convention, in determining the level of the inter-occupational minimum wage, the Government should take into account the needs of workers and their families and the economic factors including the level of minimum wages fixed by collective agreements and of the Consumer Price Index, which, as the Government itself recognises, is higher than the percentage increase of the inter-occupational minimum wage. As a result, the growth of the latter over the period 1979 to 1988 has been less than the increase in the Consumer Price Index.
Article 4, paragraph 2. With reference to the statement made by the representative of the Government of Spain before the Governing Body, to which the Government refers in its report, the Committee notes that, according to that statement, when fixing the minimum wage for 1989, the Ministry of Labour and Social Security sent extensive documentation on the matter to the social partners, who submitted their respective replies which were discussed in meetings held on 27 December 1988 and 5 January 1989. The Committee hopes that the Government will continue to consult the social partners so that they can hold exhaustive discussions before the inter-occupational minimum wage is fixed, in conformity with the provisions of Article 4, paragraph 2, of the Convention.
The Committee asks the Government to continue to provide information concerning the procedures for fixing the inter-occupational minimum wage and particularly on the consultations held with the representatives of the workers' and employers' organisations, and on the elements taken into consideration in determining the inter-occupational minimum wage.