Observation (CEACR) - adopted 2005, published 95th ILC session (2006)

The Committee notes the discussion that took place in the Committee on the Application of Standards at the 93rd Session of the International Labour Conference (June 2005). It notes, in particular, the Government’s explanations regarding the problems of unemployment, low productivity and insufficient private investment that have led to a crisis in the textile industry and to the bankruptcy or restructuring of a large number of enterprises. It also notes the Government’s wish to remedy the situation and to receive technical assistance for this purpose from the ILO. The Committee understands that a technical assistance mission has already been planned in consultation with the Government and is to address not only the non-payment of wages but also the issues of productivity and competitiveness in enterprises. Lastly, the Committee notes that the Conference Committee on the Application of Standards asked the Government to provide a detailed report for the present session of the Committee of Experts containing specific information on the sectors, types of establishment and number of workers concerned, the total amount of wage arrears, the average delay in payment of wages, the number of inspection visits conducted, the infringements reported and the penalties imposed, complaints by workers that have succeeded and failed, the timetable for the settlement of unrecovered wage debts and a detailed description of the means of redress available under the Labour Code.

In its report received on 28 September 2005, the Government indicates that over the last decade a large number of enterprises have had to cope with an acute financial crisis as a result of globalization and, more particularly, low productivity in local industries. According to the information supplied by the Government, the textile industry has been the hardest hit, with 120 factories being affected by restructuring and some 35,000 workers having lost their jobs. Other sectors, such as building materials, food industries, metal industries, wood and paper industries, and electrical appliance industries, are also affected by the need for renovation, restructuring and downsizing. The Government gives a detailed account of the measures taken to boost certain sectors of the national economy, inter alia, by means of low-interest rate credit loans. As to wage arrears, the Government states that dispute settlement boards have so far resolved 90 per cent of disputes countrywide but that a number of claims are still pending, largely pertaining to fringe benefits.

While noting the Government’s explanations, the Committee would appreciate more detailed information on the total amount of wage arrears, the number of workers concerned and the average delay in payment. It would also appreciate information on any measures taken or envisaged by the Government to strengthen the inspection services, on the results obtained and on legislative amendments to improve enforcement of the provisions of the Convention concerning regular payment of wages. It asks the Government in particular to provide details on the practice of purchasing the services of some 15,000 workers in the textile industry on the basis of three months’ salary per year.

The Committee takes note of the comments of 31 August 2005 sent by the International Confederation of Free Trade Unions (ICFTU) on the application of the Convention. According to the ICFTU, the non-payment of wages continues to be a recurrent problem in both the private and the public sectors. The problem is to be found in many sectors, such as textiles, communications, agriculture, mining and the medical sector. Factories producing steel, plastics, refrigerators, plaster, bricks, footwear and records have also been affected. In the ICFTU’s view, the failure of many state-owned companies to pay wages shows that the Government should comply with its own laws and its international obligations. The ICFTU further indicates that when companies shut down, in many cases workers’ back pay is not settled. Furthermore, workers have no recourse to effective machinery for compensation for late payment of wages and financial losses caused by such delays.

The Committee takes this opportunity to recall that as it is stated in paragraph 355 of its General Survey of 2003 on the protection of wages, the quintessence of wage protection is the assurance of periodic payment allowing the worker to organize his everyday life with a reasonable degree of certainty and security. Inversely, the delayed payment of wages or the accumulation of wage debts clearly contravene the letter and the spirit of the Convention and render the application of most of its other provisions simply meaningless.

The Committee hopes that the Government will not fail to step up its efforts and use all available means to contain and gradually eliminate the non-payment or delayed payment of wages before the problem becomes more serious. It also invites the Government to provide a detailed reply to the ICFTU’s latest comments.