Observation (CEACR) - adopted 2024, published 113rd ILC session (2025)

Venezuela (Bolivarian Republic of)

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) (Ratification: 1944)
Protection of Wages Convention, 1949 (No. 95) (Ratification: 1982)

In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on wages, the Committee considers it appropriate to examine Conventions Nos 26 (minimum wage) and 95 (protection of wages) together.

The Committee notes the observations concerning Conventions Nos 26 and 95 made jointly by the Federation of University Teachers’ Associations of Venezuela (FAPUV), the Confederation of Workers of Venezuela (CTV), the General Confederation of Labour (CGT), the National Union of Workers of Venezuela (UNETE), the United Federation of Workers of Venezuela (CUTV), the Confederation of Autonomous Trade Unions (CODESA) and the Independent Trade Union Alliance Confederation of Workers (CTASI), received on 31 August 2024. The Committee also notes the observations concerning Convention No. 26 made jointly by the CTV, the CGT and the CTASI, received on 18 October 2024.

Follow-up to the recommendations of the Commission of Inquiry (complaint made under article 26 of the Constitution of the ILO)

Minimum wage

Articles 1 and 3 of Convention No. 26. Establishment of minimum wage-fixing machinery. Exceptionally low wages. Consultation and participation of the social partners. With reference to its previous comment, the Committee notes the discussions at the 350th and 352nd Sessions (March and November 2024) of the Governing Body on the report concerning developments on the full implementation by the Government of the Bolivarian Republic of Venezuela of the agreed plan of action to give effect to the recommendations of the Commission of Inquiry in respect of Conventions Nos 26, 87 and 144, as well as the decisions adopted in this regard. In particular, the Committee notes that:

• between 1 and 2 February 2024, the fourth in-person session of the Social Dialogue Forum was held in Caracas, chaired by the Minister of Popular Power for the Social Process of Labour, with the participation of the following employers’ and workers’ organizations: the Federation of Chambers and Associations of Commerce and Production of Venezuela (FEDECAMARAS), the Venezuelan Federation of Craft, Micro, Small and Medium-Sized Business Associations (FEDEINDUSTRIA); the Bolivarian Socialist Confederation of Men and Women Workers in Urban and Rural Areas and Fishing of Venezuela (CBST-CCP); the CTASI; the CTV; and the CGT. The fourth session of the Forum was provided with technical assistance by the ILO Special Adviser on Social Dialogue and ILO officials at headquarters and in the field. During the two-day Forum, the tripartite constituents reviewed developments that took place during 2023 and in early 2024 in relation to the plan of action agreed at the previous Forum and adopted the follow-up to and updating of the aforementioned plan of action established to give effect to the recommendations of the Commission of Inquiry concerning Conventions Nos 26, 87 and 144;
• under the updated plan it was agreed, in relation to Convention No. 26, to hold tripartite technical meetings and plenary meetings of the world of work on 21 June and 25 September 2024 and on 8 May and 23 October 2024, respectively. These meetings were attended by representatives of the Ministry of People’s Power for the Social Process of Labour (MPPPST), on behalf of the Government, and representatives of FEDECAMARAS, FEDEINDUSTRIA, CTASI, CGT, CTV and CBST, on behalf of employers and workers, and were attended remotely, as observers, by the ILO Special Adviser on Social Dialogue and officials from the International Labour Standards Department at headquarters and in the field.

The Committee observes that the Governing Body will again consider developments related to compliance with the recommendations of the Commission of Inquiry at its next session in March 2025.

With respect to its previous comments on this matter, the Committee also notes the Government’s indication in its report that: (i) on 15 January 2024, the advisory group met and formally established the consultation process on the minimum wage-fixing machinery and created a technical group composed of four government representatives, four employers’ representatives and four workers’ representatives, which met on 25 and 29 January 2024 in the presence of the ILO Special Adviser on Social Dialogue; (ii) in addition to the aforementioned tripartite meetings, two bipartite meetings were held involving the Government and the employers’ and workers’ representatives; (iii) at the end of the process, all reports, documents and minutes relating to the consultation were circulated to participants; and (iv) this material was submitted to the executive authority, which will take it into account when it takes decisions on the matter in due course. On this basis, the Government considers that the minimum wage-fixing machinery has been developed, approved and implemented.

The Committee also notes that in their joint observations, the FAPUV, the CTV, the CGT, the UNETE, the CUTV, the CODESA and the CTASI indicate that: (i) during the tripartite meetings to determine the minimum wage-fixing machinery, held in the first months of 2024, the social partners presented the relevant economic and social indicators but this did not lead to a comparative discussion of the indicators concerned; (ii) the indicators presented by the Government were not up to date and were insufficient, including in terms of the active working population in the public administration, financial revenues from oil and taxation matters; and (iii) a few minutes before the end of the last consultative meeting of the technical group on minimum wage-fixing machinery, the representatives of FEDECAMARAS put forward a minimum wage proposal that could not be discussed due to lack of time; although an extraordinary meeting was requested, the Government did not accept, indicating that further discussions were not necessary because the dissent was valid and would be reflected in the report that would be submitted to the executive authority.

In this respect, the aforementioned workers’ organizations indicate that the tripartite meetings to determine the minimum wage-fixing machinery, held in January 2024, did not constitute effective consultations on determining the minimum wage-fixing machinery or its application, as evidenced by the fact that since 15 March 2022, there has been no increase in the minimum wage, which is currently 130 bolivars per month, equivalent to US$3.50 per month or US$0.11 (11 cents) per day; according to these organizations, this amount corresponds to less than 10 per cent of the extreme poverty daily wage (international calculation).

The CTASI, the CTV and the CGT indicate in their joint observations that: (i) the minimum wage has been frozen for more than two years and the wage bonus policy remains in place, all of which represents a step backwards with regard to wages; (ii) the minimum wage-fixing machinery agreed by the Social Dialogue Forum is not being applied and the proposal made by these workers’ organizations for a monthly wage equivalent to US$200 has not received a reply from the Government; (iii) the Government launched consultations on the Anti-Blockade Act for the Working Class through a questionnaire sent to employers’ and workers’ organizations and the establishment of technical roundtables in parallel to the Social Dialogue Forum agreements; and (iv) there is no effective consultation or discussion of proposals that would bring the actors closer to a consensus on wages, with the technical assistance of the ILO.

The Committee notes the Government’s indications on the activities and bipartite and tripartite meetings held during 2024, on the minimum wage-fixing method and its application. In this respect, the Committee recalls that the Convention requires both consultation before the machinery is applied, in order to determine the minimum wage-fixing method itself, and the participation of employers’ and workers’ organizations during the effective application of the minimum wage-fixing machinery, in order to define the amount or amounts of the minimum wage (Article 3(2)(1) and (2)). The Committee wishes to emphasize that neither the consultations nor the participation are purely formal processes. Precisely, the Committee has stressed that: (i) participation implies a greater role on the part of organizations of employers and workers or of their representatives in decision-making than does consultation; it means direct collaboration with the responsible authorities in the application of the minimum wage-fixing machinery; (ii) social partners need to be exhaustively consulted, all available documentation that has to be considered in determining or adjusting minimum wages needs to be provided, and the proposals of the social partners have to be thoroughly studied; and (iii) the consultation and participation referred to in the Convention imply that employers and workers, their representatives or those of their organizations be able to have a real influence on the decisions to be taken (1992 Survey on minimum wages, paragraphs 192, 193, 195 and 264).

The Committee also recalls once again that: (i) while Convention No. 26 does not provide an explicit definition of minimum wage, Article 1 thereof indicates that the purpose of its establishment is to protect workers in sectors in which wages are exceptionally low; and (ii) the determination and maintenance, by the ratifying States, of the minimum wage-fixing machinery is not, strictly speaking, sufficient to comply with the requirements of the Convention, which additionally require the effective fixing of those wages.

In this respect, the Committee notes with concern that, as indicated by the workers’ organizations that sent observations on the application of the Convention, the current minimum wage in the country is exceptionally low and has not been increased for more than two years. The Committee notes with regret that according to the information available to it, the tripartite meetings were not sufficiently informed, given the Government’s failure to present adequate indicators and refusal to discuss the indicators presented by the social partners. The Committee deeply regrets that the consultation process that took place through the meetings of the advisory group on the minimum wage and the other related tripartite and bipartite meetings did not yield substantial results, in particular by fixing a minimum wage that takes into account the different positions and proposals of the social partners, as well as the economic and social situation of the country.

While regretting that since the Commission of Inquiry made its recommendations no substantial progress has been made in the application of the Convention, the Committee firmly urges the Government to take the necessary measures as a matter of urgency to fix the minimum wage or wages, in accordance with the method or methods agreed at the technical roundtables established for this purpose in the context of the Social Dialogue Forum, having taken due account of the proposals made by the workers’ and employers’ organizations during the consultation process held in that context. The Committee requests the Government to report on any developments in this regard.

Protection of wages

Articles 1 and 4 of Convention No. 95. Protection of all elements of remuneration. Payment in kind. Further to its previous comments, the Committee notes the Government’s indication in its report that: (i) Presidential Decree No. 4805 of 1 May 2023 expressly indicates the monthly amount in bolivars fixed by the National Executive for the Socialist Cestaticket; (ii) the term “in kind” is not mentioned in any article of the Decree; and (iii) when workplace inspections are carried out, it is verified that the workplace makes payments in legal tender to the worker’s bank account.

The Committee also notes that, in their joint observations, the FAPUV, the CTV, the CGT, the UNETE, the CUTV, the CODESA and the CTASI indicate that: (i) the Government has converted many elements of workers’ remuneration into bonuses and payments of all kinds (food benefit, bonus against the economic war and so on), which constitute what the Government terms “comprehensive minimum income”; (ii) this minimum income is not wage-based, in that it has no impact on social benefits, wage premiums, leave, Christmas bonuses and other additional benefits, and remains outside the scope of application of the Convention and its protection; and (iii) most of the remuneration consists of these non-wage-based elements, which leads to a process of gradual “desalarization”.

On the basis of the above information, provided both by the Government and by the social partners, the Committee notes with concern that the larger part of workers’ incomes consists of bonuses paid in cash or in kind, but that these are in not in any way wage-based. The Committee notes with deep regret that no progress has been achieved in the resolution of this issue and that, on the contrary, it appears to have become more pronounced. While referring back once again to the analysis it has made in previous years on this matter (see in particular the observation adopted in 2017), the Committee again requests the Government to take without delay the necessary measures to find, through dialogue with representative employers’ and workers’ organizations, appropriate solutions that allow the full application of these Articles of the Convention. The Committee suggests that the Government establish a forum for dialogue with the above-mentioned organizations in order to find solutions for this issue that are applicable over the long term. The Committee requests the Government to provide information in this regard.

Articles 5 and 14. Electronic payment of wages. Information on constituent elements of wages. The Committee notes the Government’s indication, in response to its previous comments, that: (i) section 106 of the Organic Act on Labour, Men and Women Workers (LOTTT) requires the employer to issue wage slips, under penalty of sanctions; (ii) many workplaces, public and private, have digitalized their wage slips, thereby allowing the worker access to this information by any electronic means at any time required; and (iii) in cases where it is difficult for workers to have access, the employer is required to provide wage slips in tangible form.

In their joint observations, the FAPUV, the CTV, the CGT, the UNETE, the CUTV, the CODESA and the CTASI indicate that: (i) the electronic payment of wages continues to pose the same challenges indicated in previous years; (ii) the payment of wages in the public administration through the “sistema patria” continues to create problems, as the system does not recognize retroactive pay or errors in pay and it is not possible to file a claim for the resulting discrepancies to the detriment of the workers; (iii) with regard to the bonuses paid by this means, some workers receive them and others do not; and (iv) wages and various forms of unearned income are paid by bank transfer to workers’ accounts, but it is only possible to access this income in big cities to make purchases in shops with digital platforms; in small villages or medium-sized towns, digital platforms are highly unstable due to lack of light and/or internet, with the result that many workers are unable to access their wages and non-wage bonuses without going to the nearest bank branch, often located more than 50 kilometres from their place of residence or work. The Committee regrets to note once again that no progress has been achieved in the resolution of this issue. The Committee once again requests the Government, in consultation with the employers’ and workers’ organizations concerned, to take effective measures to address the question of electronic payment of wages so that all workers, in any part of the country, can access their wages directly, in conformity with the Convention.

Article 12. Delayed payment of wages. The Committee notes that the Government’s report does not contain any reply to its previous comment in relation to the observations submitted in 2023 by the CODESA, the CTV, the FAPUV, the CTASI, the UNETE, the CUTV and the CGT on delays in the payment of wages in the health sector. The Committee notes that the aforementioned organizations reiterate their previous observations in their joint observations submitted in 2024. In particular, they indicate that: (i) delays in and reductions in the amount of wage payments have continued to occur; (ii) leave and end-of-year bonuses are always paid in an untimely manner, and sometimes in instalments; and (iii) this situation has spread to the university education sector. The Committee notes with regret that there has been no progress in the resolution of this issue. The Committee requests the Government to take without delay the necessary measures, in consultation with the employers’ and workers’ organizations concerned, to ensure that all workers receive payment of their wages at regular intervals.

[The Government is asked to reply in full to the present comments in 2025.]