Observation (CEACR) - adopted 1996, published 85th ILC session (1997)

The Committee notes the detailed discussion which took place in the Conference Committee in 1996. It must express its regret that it has not received a detailed report from the Government, as requested in its previous observation and in consequence of the Conference Committee's conclusions. It must therefore repeat its previous observation on the following points:

The Committee notes the conclusions and recommendations of the tripartite committee set up to examine the representation made by the Latin American Central of Workers (CLAT), which were approved by the Governing Body of the ILO at its 264th Session (November 1995). Article 3, paragraph 2(2) and (3), of the Convention (in relation with point V of the report form). The Committee recalls that in its representation the CLAT states that the enterprise EXIMPORA SA has not complied with national minimum wages standards, which tantamounts, by implication, to non-compliance with the provisions of Article 3, paragraph 2(3), of the Convention, which guarantees the right to receive the minimum rates of wages, as fixed nationally, and at the same time excludes the possibility that these rates may be subject to abatement by individual agreement. The Committee also recalls the Government's statement in its communication that the Labour Code, in Chapter II, establishes and regulates the minimum wage, as well as determining the machinery for fixing it and the cases in which it may be modified as a function of the economic situation and variations in the cost of living. The Government indicates that section 252 of the Labour Code envisages the establishment of a tripartite body, the National Minimum Wage Council, which it has not yet been possible to establish due to the fact that the Workers' Central Organization (CUT) and the Latin American Central of Workers (CLAT) have not appointed their representatives. However, the Government adds that, in accordance with section 256 of the Labour Code, Decree No. 4598, adopted on 11 July 1994, raises minimum wages in order to take into account the increase in the cost of living and the decline in the purchasing power of the population. Nevertheless, the Committee notes that according to the various studies carried out under the auspices of the ILO on labour relations in Paraguay, the situation denounced by the CLAT is only one example among many of the generalized non-compliance with the obligations deriving from the Convention. The Committee requests the Government to indicate the measures which have been taken or are envisaged to ensure the application of the national legislation so as to guarantee: (i) the participation of representatives of workers and employers in minimum wage fixing machinery, in accordance with Article 3, paragraph 2(2); and (ii) the right to receive the minimum rates of wages which have been fixed, which may not be subject to abatement by individual agreement, in accordance with Article 3, paragraph 2(3). Article 4 (in conjunction with point V of the report form). The Committee notes that section 259 of the Labour Code provides that "any worker who has received a wage lower than the established minimum is entitled to reclaim from his employer the amount remaining due. The labour administration shall establish a time period for the recovery of this amount, which may not exceed 30 days." The Committee also notes that, without prejudice to the other measures contained in the Code (section 384), section 390 provides that "employers who pay their workers wages lower than the minimum legal amount or the amount established by collective agreement shall be punishable by a fine amounting to a minimum of 30 days' wages for each worker concerned and double that amount for any repetition of the offence". The Committee also notes that the responsibility for ensuring the application of the requirements set out in labour laws and regulations and compliance with the obligations contained in the Labour Code is entrusted to the labour inspection services, by virtue of Decree No. 3286 of 4 March 1964, which empowers those services to carry out the necessary inquiries to identify violations and refer them to the labour administration (Directorate of Labour). The Committee requests the Government to indicate the measures which have been taken or are envisaged to ensure the application of the national legislation with a view to: (i) making possible the operation of the national bodies which are responsible for supervising the application of the standards respecting minimum wages; and (ii) guaranteeing, through the labour administration authority, the recovery of any further wages due to workers who have received wages lower than the applicable minimum wage. Point V of the report form. The Committee would be grateful if the Government would supply information on the effect given in practice to the Convention: (i) by supplying the available statistical data on the number and various categories of workers covered by the minimum wage regulations; and (ii) by indicating, for example, the results of the inspections carried out, the violations reported and the sanctions imposed.

The Committee hopes that the Government will make every effort to take the necessary action in the very near future.