Observation (CEACR) - adopted 1999, published 88th ILC session (2000)

The Committee notes that the Government's report has not been received. It must therefore repeat its previous observation on the following matters:

1. The Committee takes note of the Government's report, as well as the statement made by a Government representative to the Conference Committee on the Application of Standards in 1998 and the discussions which took place on that occasion. Consideration of the needs of workers and their families in determining minimum wages 2. In its previous comments, the Committee requested the Government to indicate to what extent and in what manner the needs of workers and their families are taken into consideration in determining the level of minimum wages, in accordance with Article 3 of the Convention. 3. The Committee observes that, with regard to minimum wage fixing, the Government's report cites a number of provisions of Act No. 10449 which only ensures "a standard of living for the worker sufficient to meet his physical, intellectual and moral needs". The Committee wishes to point out that this provision makes no reference to the needs of workers and their families, as required by Article 3 of the Convention. Furthermore, the Government does not explain the specific manner in which the needs of workers and their families are taken into consideration in practice for the purpose of fixing minimum wages; for example, is the minimum wage calculated on the basis of a basket of essential goods? Is the minimum cost of education, health care and housing taken into account? The Committee strongly hopes that the Government will be able to indicate in its next report the measures taken to ensure that the needs of workers and their families are taken into consideration for the purpose of minimum wage fixing, as well as indicating how in practice those needs are estimated. Lack of consultation of the employers' and workers' representatives concerned in the determination of minimum wages 4. In its previous comments, the Committee - having noted the overall persistence, over many years, of the practice of unilateral determination by the Government of the inter-occupational minimum wage and the minimum wages of rural and domestic workers - expressed the hope that the Government would soon be able to indicate the measures taken to ensure full consultation with the representative organizations of employers and workers concerned in fixing the national minimum wage and the minimum wages of rural and domestic workers, in accordance with the provisions of Article 4, paragraph 2, of the Convention. 5. In reply to these comments, the Government indicates that the national minimum wage is not applied in practice to determine the minimum payment for work, since it is in reality simply a reference value for the calculation of certain social security benefits. According to the Government, this was confirmed by the statement in 1997 of the Inter-Union Assembly of Workers - National Convention of Workers (PIT-CNT), that "... the minimum wage is only a political concept, devoid of substance, which serves basically to regulate a number of social security measures (including the amount of family allowances and retirement pensions)". This feature of the national minimum wage in Uruguay means, according to the Government, that "the wage should not be analysed from the viewpoint of the Convention". 6. The Committee, noting the Government's detailed reply, recalls that, under Article 4, paragraph 2, of the Convention, provision must be made by the ratifying State, in connection with the establishment, operation and modification of wage-fixing machinery, for full consultation with the representative organizations of employers and workers concerned, or, where no such organizations exist, representatives of employers and workers concerned. These provisions do not impose an obligation to negotiate, but do impose an obligation to consult. In the absence of representative organizations of employers and workers, the Government has an obligation to consult representatives of employers and workers concerned. The Committee expresses the firm hope that the Government will adopt the necessary measures in the near future to consult representatives of employers and workers concerned for the purpose of establishing, applying and adjusting minimum wages.

The Committee hopes that the Government will make every effort to take the necessary action in the very near future to give effect to the provisions of the Convention.