Direct Request (CEACR) - adopted 2020, published 109th ILC session (2021)

Equal Remuneration Convention, 1951 (No. 100) - Latvia (Ratification: 1992)

Other comments on C100

Observation

Direct Request

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The Committee takes note of the Government’s report and the supplementary information provided in light of the decision adopted by the Governing Body at its 338th Session (June 2020).

The Committee notes the observations of the Free Trade Union Confederation of Latvia (FTUCL) communicated with the Government’s reports.

Article 2 of the Convention. Minimum wages. The Committee notes the Government’s statement in its report that the minimum monthly wage was increased several times between 2014 and 2018 (from EUR320 to EUR430). It notes however that in 2019 and 2020, the minimum wage remained at the same level. The Government adds that in 2018 and 2019, amendments were made to several regulations of the Cabinet of Ministers to increase the lowest monthly salary for workers in the health-care and education sectors, who are mostly women. The Committee welcomes this information. It notes the Government’s indication that on 28 March 2019, amendments were made to section 68 of the Labour Law regarding supplements for overtime work or work on a public holiday, which provide that in sectors where the minimum wage has been significantly increased by general agreement it will be possible to set a lower supplement for overtime work. In the Government’s view, the possibility to determine lower overtime pay will facilitate the conclusion of general agreements in sectors, while setting the minimum wage significantly higher than the national minimum wage. The Committee further notes that in its supplementary information the Government indicates that, since 1 June 2019, three general sectoral agreements have been concluded setting minimum monthly wages or hourly rates. In light of the concentration of women in low-paid economic activity, the Committee asks the Government to provide information on the measures taken to ensure that minimum wage rates for specific groups of employees or sectors are determined on the basis of objective criteria free from gender bias, and that work in sectors with a high proportion of women is not undervalued in comparison with sectors in which men are predominantly employed. It asks the Government to provide information on any assessment made of the amendments introduced to section 68 of the Labour Law in order to ensure that women are not disproportionally affected by lower supplements for overtime work, which may contribute to unequal pay between men and women. The Committee asks the Government to provide information on any increase in minimum wages, as well as statistical information on the percentage of women and men who are paid the statutory minimum wage.

Collective agreements. The Committee previously noted the FTUCL’s intention to introduce specific provisions on equal remuneration for work of equal value in collective agreements. It notes the Government’s statement that in 2017 the Gender Equality Council of the FTUCL published a roadmap on gender equality for trade unions which provides information on equal pay, the gender pay gap and work-life balance, thus encouraging trade unions to promote equal pay through collective bargaining. The Government indicates that currently, two sectoral collective agreements (in the railway and health-care sectors) require the employer and the trade union to agree in local level collective agreements on the remuneration system and principles that comply with the national legislation, including the principle of equal remuneration for equal work or work of equal value. In its supplementary information, the Government adds that the sectoral general agreements concluded in 2019 for the construction and fiberglass sectors guarantee fair remuneration. The Committee notes the Government’s indication that in December 2019 both the FTUCL and the Employer’s Confederation of Latvia (ECL) invited public authorities to support the development of collective agreements in Latvia, in particular at the sectoral level, which would further promote the inclusion of equal pay clauses in collective agreements. It notes the Government’s statement that, according to FTUCL statistics, only 24 per cent of workers are covered by collective agreements. The Committee further notes that, in its supplementary information, the Government indicates that, pursuant to the Law of 17 October 2019 ("Amendments to the Labour Law"), the penalties for administrative violations provided for in the Latvian Administrative Violations Code of 1984 have been incorporated with slight amendments into the Labour Law. It however notes that, in its observations, the FTUCL regrets that section 166 of the Administrative Violations Code, which provides for a fine in case of non-compliance with the provisions of a collective agreement, has not been reproduced in the Labour Law, which does not include a similar provision. In the view of the FTUCL, effective sanctions are important to ensure the effective implementation of collective agreements. The Committee notes the Government’s reply that the draft amendments to the Labour Law were discussed with the social partners. The Committee asks the Government to continue providing information on the number of collective agreements that have incorporated the principle of equal remuneration for work of equal value, as well as an extract of the relevant provisions. It also asks the Government to provide information on any measures taken as a follow-up to the invitation by FTUCL and ECL to further develop collective agreements, in particular at the sectoral level, and their impact in reducing the gender pay gap. The Committee asks the Government to provide information on the measures taken to ensure the efficient implementation of collective agreements, including on the number and outcome of cases of non-compliance with the equal pay provisions of collective agreements.

Article 3. Objective job evaluation. Public service. Referring to its previous comments, the Committee notes the Government’s statement that several amendments have been made to the Regulation of the Cabinet of Ministers No. 1075 of 30 November 2010 on the “Occupation Catalogue of State and Local Government Institutions” and that a full review of the remuneration system in the public administration is ongoing. With regard to the determination of remuneration, the Government states that for the public service the value of the post and the corresponding monthly salary group is determined on the basis of the qualification requirements (education and professional experience), the complexity of the work and the level of responsibility. Each authority in turn establishes its own remuneration policy, including how the monthly salary is determined for employees, taking into account their individual qualifications and skills. The Government states that the evaluation process draws attention to the fact that posts should be assessed as if they were vacant. It adds that such a system excludes the possibility of relying on personal qualities not related to the quality of work and professionalism in determining the remuneration of the employee. The Committee takes notes of this information. In light of the broad gender pay gap in the public sector, the Committee asks the Government to provide information on the specific measures taken to ensure that the job evaluation methods used in the public service for the review of the remuneration system are free from gender bias, and that the selection of factors for comparison, the weighting of such factors and the actual comparison carried out are not discriminatory, either directly or indirectly. It further asks the Government to provide information on the catalogues of occupational activities in the public service that have been established, including statistical data on the distribution of women and men in each occupational category and their remuneration levels.

Private sector. Referring to its previous comments, in which it requested the Government, in cooperation with workers’ and employers’ organizations, to develop, promote and implement practical approaches and methods for the objective evaluation of jobs in the private sector, the Committee notes that, in its additional information, the Government indicates that private companies conduct salary surveys or internal company audits to understand differences in salaries within the company and trends in the industry and the economy as a whole. Furthermore, statistical data is collected and analysed at the enterprise level to develop and improve the wage system. The Committee wishes to emphasize that the effective implementation of the principle of the Convention requires the use of a job evaluation method in order to measure and compare the relative value of the different jobs held by men and women through an examination of the respective tasks involved, undertaken on the basis of entirely objective and non-discriminatory criteria, such as skills and qualifications, effort, responsibilities and working conditions, to avoid the assessment being tainted by gender bias (2012 General survey on the fundamental Conventions, paragraph 695). The Committee asks the Government to provide information on the methods used by private companies to conduct salary surveys, specifying the factors used to assess the value of the different jobs in practice. In light of the increasing gender pay gap in the private sector, the Committee asks the Government to provide information on any measures taken to promote the use in the private sector of objective job evaluation methods and criteria that are free from gender bias, such as qualifications and skills, effort, responsibilities and conditions of work, including information on any cooperation with employers’ and workers’ organizations in this regard, for the purpose of giving effect to the provisions of the Convention.

Article 4. Cooperation with workers’ and employers’ organizations. The Committee previously noted that the Tripartite Sub-council on Labour Affairs has reviewed on several occasions the European Commission Recommendation 2014/124/EU of 7 March 2014 on strengthening the principle of equal pay between men and women through transparency with the aim of determining how it could be implemented. It noted that the FTUCL has identified a number of measures that should be adopted for this purpose and highlighted that particular difficulties exist in some sectors in gaining access to pay information. The Committee regrets the lack of information provided by the Government on the measures envisaged to ensure pay transparency or access to pay information in order to help reduce the gender pay gap. It notes however that, in its supplementary information, the Government indicates that the ECL has carried out awareness-raising activities among employers on the European Commission Recommendation on wage transparency and that employers are increasingly using tools to implement the principle of wage transparency. The Committee welcomes this information. It however notes that, as highlighted in the 2020 European Commission country report on gender equality, workers do not have at their disposal effective means of access to information on remuneration, which is usually confidential (Country report on gender equality, Latvia, 2020, p. 61). The Committee asks the Government to provide information on the nature of the tools used by employers to implement the principle of wage transparency, as well as any assessment made of the extent to which employers are using such tools and their impact on reducing the gender pay gap. In light of the absence of complaints or cases on unequal pay dealt with by the competent authorities in recent years, it asks the Government to continue providing information on any measures taken, particularly at the national level and in cooperation with the social partners, to promote access to pay information. The Committee further asks the Government to provide information on any other steps and action undertaken to promote the implementation of the principle of the Convention in cooperation with the social partners, and the results of such initiatives.

Enforcement. The Committee notes the Government’s indication that no case or complaint on unequal pay has been dealt with by the State Labour Inspectorate (SLI) or the Ombudsperson since 2016. It however notes that, in its supplementary information, the Government refers to a case in December 2019 in which the SLI detected violations of the principle of equal rights to work and working conditions, in which employees who held the same positions and performed the same work duties were paid different remuneration. The Committee also observes that the administrative sanction imposed by the SLI was a warning to the company. With regard to judicial decisions, the Committee notes the Government’s indication that no statistics are available as cases on unequal pay are not registered as such by the national courts. It however notes that, in its observations, the FTUCL considers that the strict time limit set in the Labour Law to bring a claim to court in cases of unequal pay – three months compared to a two-year limit in other cases of labour disputes (sections 60(3) and 95(5) of the Labour Law) - may be a deterrent for unequal pay claims, and refers in this regard to the strict interpretation made by the courts of the three-month time limit set in the Labour Law (Supreme Court, judgement SKC-79/2018). The FTUCL adds that in its experience employees rarely choose to engage in a dispute with their employers during the employment relationship, thus losing the opportunity to bring unequal pay claims, and it suggests extending the time limit to two years. Referring to its comments on the application of the Discrimination (Employment and Occupation) Convention, 1958 (No. 111), in which it notes that similar concerns were expressed regarding the time limit for bringing discrimination claims to court in employment cases, the Committee notes that, in its supplementary information, the Government states that the proposal of the FTUCL will be discussed with the social partners when the next amendments are prepared to the Labour Law. The Committee asks the Government to provide information on any measures taken or envisaged to amend section 60(3) of the Labour Law to extend the time limit to bring a claim to court for unequal pay in order to ensure appropriate access to justice and means of redress to workers. It further asks the Government to provide information on any activities undertaken to build the capacity of labour inspectors, judges and the staff of the Office of the Ombudsperson to enable them to detect unequal pay cases and impose dissuasive penalties. The Committee asks the Government to continue providing information on the number of cases of unequal pay detected or dealt with by the labour inspectorate, the Ombudsperson or the courts, as well as the sanctions imposed and remedies granted.