Direct Request (CEACR) - adopted 2003, published 92nd ILC session (2004)

The Committee notes the Government’s detailed report and the comments made by the Trade Union of Workers of Guatemala (UNSITRAGUA), the Trade Union Federation of Public Employees of Guatemala (FENASTEG) and the Guatemalan Union of Workers (UGT).

Article 1, paragraphs 2 and 3, of the Convention. The Committee notes that the Government’s report replies in part to its previous request with regard to the situation of domestic workers and apprentices. In this connection, while recognizing the practical difficulties of establishing minimum wages for these groups of workers, the Committee recalls that the minimum wage system seeks in particular to protect the most vulnerable categories of workers and, in this respect, the necessary measures should be taken to extend the protection of minimum wages to the above categories. The Committee once again requests the Government to provide additional information on domestic workers and apprentices, and particularly statistics on the levels of their wages in comparison with minimum wages.

The Committee notes the allegations of UNSITRAGUA that private initiative has introduced various mechanisms to undermine the employment relationship, the most frequent instances being professional service contracts, piecework contracts and temporary service contracts. It adds that the common feature of these contracts is the denial of the employment relationship and the status as a worker of the person who is hired, resulting in the failure to apply labour legislation, particularly with regard to minimum wages. The Committee requests the Government to provide information on this matter and in particular on the measures adopted or envisaged to ensure that minimum wage provisions are applied in practice.

Article 2, paragraph 1. The Committee notes the observations of UNSITRAGUA that in the agricultural sector, and principally in the production of bananas, there are cases in which enterprises set production targets for their workers for the payment of the minimum wage. According to the organization, the workers have to work longer than normal hours of work to achieve this target and thereby obtain the minimum wage, and when they do not achieve the target (because they have worked at a normal rhythm for the eight-hour day applicable to them), they are only paid for what is produced, with the wage received being lower than the statutory minimum rate. UNSITRAGUA also alleges that the Ministry of Labour and Social Insurance has approved collective agreements relating to conditions of work establishing that work paid on a piecework basis and which is performed outside the ordinary working hours does not have to be paid at overtime rates. In such cases, according to the organization, the rates set for piecework imply that the minimum wage is not paid.

The Committee recalls that when a minimum wage system is based essentially on piecework, it should be ensured that, under normal conditions, a worker can earn a sufficient amount to achieve a decent standard of living (and in any case an amount that is at least comparable to the minimum wage) and that earnings should not be unduly restricted by conditions which are beyond the worker’s control. The Committee notes in this respect that section 103 of the Labour Code provides that the fixing of minimum wages shall be carried out adopting the necessary measures to ensure that workers whose earnings are based on piecework, the task or a set price are not prejudiced. The Committee requests the Government to provide information on these observations.

Article 3. The Committee notes the comments of UNSITRAGUA that minimum wages are not sufficient to cover even 50 per cent of the cost of the basket of essential goods. The UGT alleges that the cost of the basket of essential goods is not taken into account by employers or the Government, despite the fact that the information is provided by the National Statistical Institute. It adds that workers are currently paid the equivalent of 3.75 dollars a day for non-agricultural work and 3.43 dollars for agricultural work and that these wages do not cover the subsistence food needs of a family of five members. The Committee recalls that one of the fundamental objectives of minimum wages is to ensure that workers have an income which secures them a decent standard of living and that it should be able to cover the essential needs of food, clothing, housing, education and leisure, both for workers and their families. While emphasizing that the minimum wage loses its significance when it bears no relation to the economic and social realities of the country, the Committee requests the Government to indicate the impact of the current minimum wage on the purchasing power of workers for the basic basket of goods.

Article 5 and Part V of the report form. The Committee notes the statements by UNSITRAGUA that each increase in minimum wages has been followed by massive redundancies, illegal suspensions of workers and by failure to comply with the minimum wage, and that the Government has not been able to protect workers from these reactions by employers. The UGT alleges that minimum wages are not paid in practice, particularly in rural areas, in view of the vulnerability of rural workers, a high percentage of whom are indigenous and illiterate. The Committee requests the Government to provide information on these allegations and to indicate in its next report the measures adopted or envisaged to ensure that the wages that are paid in practice are not lower than the minimum wage rates.

The Committee notes with interest the Labour Statistics Bulletin of 2000, published by the Ministry of Labour and Social Insurance, and the information contained therein, particularly with regard to labour inspections. The Committee also notes Government Agreement No. 459-2002 of 28 November 2002, establishing the levels of minimum wage rates for the agricultural and non-agricultural sectors, as from 1 January 2003. The Committee trusts that the Government will continue to provide information of a general nature on the application of the Convention in practice, for example the available statistics on the number and various categories of workers covered by the minimum wage regulations, the results of the inspections carried out (cases of violations reported, penalties imposed, etc.), and any other information on the application of the minimum wage provisions.