Observation (CEACR) - adopted 2011, published 101st ILC session (2012)

Employment Policy Convention, 1964 (No. 122) - Honduras (Ratification: 1980)

Other comments on C122

Observation

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Follow-up to the conclusions of the Conference Committee on the Application of Standards (International Labour Conference, 100th Session, June 2011)

The Committee notes the discussion that took place in June 2011. At the conclusion of the tripartite discussions, the Conference Committee invited the Government to update the information provided on new employment policy programmes, recent data on the size and distribution of the workforce, and specific information on the effectiveness of the measures implemented in reducing unemployment and achieving the objectives of the Convention. In particular, the Conference Committee requested detailed information on how tripartite mechanisms contribute to the formulation of employment programmes and to the monitoring and implementation of active labour market measures in order to overcome the current crisis and to ensure a sustainable recovery. The Committee also takes note of the observations made by the Unitary Confederation of Honduran Workers (CUTH), the General Confederation of Workers and the Honduran Workers’ Confederation, in March 2011 and September 2011, as well as a communication submitted by the CUTH in September 2011. The Committee takes note of a new and very informative report from the Government received in September 2011, as well as supplementary data provided in November 2011.

Articles 1, 2 and 3 of the Convention. Labour market trends. The Committee notes the trends in labour market indicators between 2008 and 2010. In 2010, unemployment affected 158,813 workers (nearly 90,000 men and 70,000 women), and 45 per cent of the population was unemployed. The Committee notes that “Vision of the Country 2010–48” includes employment objectives. Goals to be achieved by 2013 include reducing the number of households living in extreme poverty from 36 to 32 per cent, reducing underemployment to 30 per cent and affiliating 23 per cent of wage earners to the social welfare systems. The Government also indicates in its report that it signed an agreement with the International Monetary Fund for the financial year 2010–11, the main aim of which is to restore macroeconomic stability, improve public finances and support the creation of conditions for sustainable economic growth and public investment. The Committee observes that studies by the Central Bank of Honduras confirm the importance of remittance flows (which in 2010 accounted for 16.4 per cent of the country’s gross domestic product) to encouraging initiatives for job creation. The amount of remittances in 2010 showed an increase of 5 per cent over 2009. The Committee invites the Government to continue to provide information allowing it to ascertain the manner in which the employment objectives in government programmes have been reached. It also asks the Government to include data on the size and distribution of the workforce, and the nature and extent of unemployment and underemployment. Please also continue to provide information on the manner in which remittances from migrant workers contributed to generating productive employment.

Participation of social partners. In their communication of March 2011 the trade union organizations reported that they were not consulted in November 2010 when the National Congress approved the National Hourly Employment Programme. According to the organizations, the programme proposes to deregulate the labour market, which will deepen precarious employment. The labour market is saturated with temporary and contract workers, and the organizations make the point that abusive employers have no need of a specific programme in order to hire temporary workers. The CUTH indicates that there is no State employment policy for the creation of meaningful and decent jobs. The Committee notes the detailed documentation submitted by the Government to the Conference Committee and the additional information in the reports received in September and November 2011 on the consultations held in the National Congress for discussion and approval of the programme. The President of the National Congress and the Secretary of State for Labour signed a framework agreement on inter-institutional cooperation to facilitate exchanges on measures adopted. The Government plans to strengthen the Labour Market Observatory and in the future to set up a National Employment Service to implement and coordinate all the country’s employment programmes. The Government confirms that the National Hourly Employment Programme registered only 193 work contracts (73 women and 120 men) in Tegucigalpa, San Pedro Sula, Comayagua, Choluteca and La Esperanza. Most of the contracts were for two months with four-hour working days. Some of them were up to 30 months in length. Seventy-one enterprises have applied to the authorities for further information on the programme. In November 2011, the Government reported that 311 firms were registered as users of the programme at the national level. The Committee invites the Government to continue to send information on efforts made to hold consultations with the social partners in order to design and implement an active employment policy. The Committee stresses that it is important to take account of the social partners’ views and obtain their support in order to ascertain that the programmes implemented have generated decent jobs. The Committee would like to continue to examine up-to-date information on the supervision and follow-up of the National Hourly Employment Programme and the extent to which its beneficiaries have found productive employment, including details on their age, sex, residence, training and other particulars allowing a quantitative and qualitative assessment of the employment generated.

Coordination of policies. The Committee refers the Government to its observation of 2010 and asks in its next report to provide information on the programmes implemented by the National Education for Work Centre and the National Vocational Training Institute with a view of aligning the workforce and the labour market. The Committee would appreciate receiving more detailed information on measures actually adopted to coordinate education and vocational training policies with prospective employment opportunities and to improve the country’s competitiveness.

Impact of trade agreements. Export processing zones. The Government indicates that the main destination for exports is the United States (39.8 per cent in 2009). The United States is also the largest investor in terms of source of capital. The Government also indicates that the maquila industry (manufacturers established in the export processing zones) helped to reduce pressure on the labour market. The Government suggests in its report that most of the income earned by maquila workers appears to be spent in the informal economy. The Committee notes that some maquila enterprises run training programmes. The Committee invites the Government to include information on the results obtained in improving employment opportunities for workers under the Comprehensive Training Programme for the Garment and Textile Industry. It also asks the Government to provide particulars of any effects trade agreements have had on the generation of productive employment.

Micro, small and medium-sized enterprises (Micro and SMEs). The Government points out that an Micro and SMEs development fund is being created to meet the sector’s financial needs. The Committee notes that efforts are still under way to produce enabling regulations for the legislation adopted in 2008 to develop Micro and SMEs. It invites the Government in its next report to provide updated information on the impact of the new legal framework for Micro and SMEs on employment creation and poverty reduction, together with data on the running of the fund planned for Micro and SMEs.

Youth employment. The Committee notes that in 2010 the National Youth Policy was launched. The Government intends to submit to the Economic and Social Council an Action Plan for Youth Employment, based on strategic objectives that include social dialogue, technical education for employability and the promotion of business development. The Committee again urges the Government to step up its efforts to ensure that young people are integrated in the labour market and have the opportunity to find decent jobs. The Committee again underlines the importance of enlisting the support of the social partners and representatives of the persons concerned to the successful implementation of employment policy measures. It again invites the Government in its next report to include information on concrete results obtained by the National Youth Policy and the Action Plan for Youth Employment 2009–11.