Direct Request (CEACR) - adopted 2021, published 110th ILC session (2022)

Employment Policy Convention, 1964 (No. 122) - Nicaragua (Ratification: 1981)

Other comments on C122

Observation

Direct Request

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The Committee notes that the Government’s report does not respond to the questions raised in the direct request of 2019.

COVID-19 pandemic. Socio-economic impact. Response and recovery measures. The Committee invites the Government to provide up-to-date information in its next report on the impact of the COVID-19 global pandemic on employment and the measures taken, in consultation with the social partners, to address this impact when implementing programmes and measures designed to achieve the objectives of the Convention, and also on the results of such programmes and measures.

Articles 1 to 3 of the Convention. Adoption and implementation of an active employment policy in the context of a coordinated economic and social policy. Participation of the social partners. The Committee recalls that since 2011 it has been asking the Government to provide information on the measures taken to formulate a national employment policy designed to promote full, productive and freely chosen employment. The Committee notes that the Government has still not supplied any information in this respect. The Committee also notes that on 1 July 2021 the Government published the National Plan for Poverty Reduction and Human Development 2022–26, which contains various public policies such as the monetary and financial policy and the public investment policy, as well as a series of strategies and actions. The National Plan contains 12 strategic guidelines whose objectives include achieving sustained, sustainable, inclusive and equitable economic growth conducive to increased employment and decent work for all, and also the development of human talents. In this regard, the Plan provides for the adoption of measures such as promoting and facilitating the establishment of new productive and private investment and export-oriented services, both national and foreign, with an estimated investment gain of USD 336.0 million, and the creation of 10,651 decent jobs contributing to poverty reduction. In addition, the National Plan provides for continuing to ensure the establishment and consolidation of mechanisms for coordination, cooperation and inter-institutional linkage with the various economic sectors of the country and with technical and higher training institutions, in order to provide vocational guidance and job placement services, as well as the compilation, processing and analysis of labour market indicators for jobs and wages. To this end, efforts will be made to integrate workers and place them in jobs, through the public employment services, and the Mi primer empleo (My first job) National Programme will be designed and implemented. With regard to labour market trends, according to statistical information from the National Institute of Development Information of Nicaragua (INIDE), in the first quarter of 2021, the national labour participation rate was 69.5 per cent (80.7 per cent of men and 59.4 per cent of women). The labour participation rate was 67 per cent in urban areas, while it was 72.5 per cent in rural areas. On the other hand, the national open unemployment rate was 4.9 per cent (5.2 per cent for men and 4.6 per cent for women), while the national underemployment rate was 44.6 per cent (47.7 per cent for men and 40.8 per cent for women). The Committee notes that the United Nations Committee on Economic, Social and Cultural Rights (CESCR), in its concluding observations of 15 October 2021, expressed concern at the high levels of unemployment in the country, and at the significant number of persons working in the informal economy, particularly women, indigenous persons and Afro-Nicaraguans. It also expressed concern at reports of discrimination on the basis of political opinion affecting persons opposed to and critical of the Government with regard to the exercise and enjoyment of their economic, social and cultural rights, such as the right to work (E/C.12/NIC/CO/5, paras 17 and 21). The Committee therefore once again requests the Government to provide detailed, up-to-date information on: (i) the measures taken to formulate, in consultation with the social partners, an active policy designed to promote full, productive and freely chosen employment; (ii) the various programmes and measures implemented to create employment, including the National Plan for Poverty Reduction and Human Development 2022–26, and also the impact thereof (especially on specific groups such as women, young persons, persons with disabilities, small-scale producers and indigenous and Afro-Nicaraguan communities in rural areas); (iii) the measures taken to promote the transition of workers from the informal to the formal economy, and the impact thereof; (iv) up-to-date statistics, disaggregated by sex, age and region, on the size and distribution of the labour force, and the nature and extent of unemployment.

Youth employment. In its previous comments, the Committee noted the adoption of a series of programmes aimed at promoting youth employment, and asked the Government to send information on the results achieved. However, the Committee notes that the Government’s report does not contain any information in this regard. The Committee once again requests the Government to provide detailed, up-to-date information on the measures taken or envisaged to promote employment for young people, especially those in situations of vulnerability. It further requests the Government once again to send up-to-date statistics, disaggregated by sex, age and region, on the impact of these measures in terms of sustainable youth employment.

Export processing zones. The Committee notes the adoption of the Tripartite Agreement on Export Processing Zones (EPZs), which aims to address the impact of the crisis caused by the COVID-19 pandemic in EPZs. The tripartite agreement includes recommendations aimed at the enterprises concerned so that they implement occupational safety and health measures, and grant employment leave with pro rata wage payments and temporary contract suspensions, prior to the collective temporary suspension of contracts. It also provides for paid breaks from employment for persons in situations of vulnerability (persons over the age of 60 years, pregnant women, and other persons potentially at a high level of risk) and for vacations taken in advance in export processing enterprises. The Committee once again requests the Government to provide up-to-date information, disaggregated by sex and age, on the contribution of export processing zones and the impact of the above-mentioned Tripartite Agreement on Export Processing Zones on the creation of lasting, high-quality employment compatible with the requirements of decent work.

Small and medium-sized enterprises (SMEs). In its previous comments, the Committee asked the Government to send an evaluation of the implementation of the Micro, Small and Medium-Sized Enterprises Development Programme Action Plan (PROMIPYME) and the reactivation of the National Council for Micro, Small and Medium-Sized Enterprises (CONAMIPYME), including information on their impact on areas with the largest concentrations of people living in extreme poverty. However, the Committee notes that the Government has not provided any information in this respect. On the other hand, it notes that the National Plan for Poverty Reduction and Human Development 2022–26 provides for the adoption of measures to promote the growth potential of SMEs, in terms of both their production and their creation of jobs. To achieve this objective, it is planned to adopt measures such as the implementation of 108 plans for the promotion of business projects and SMEs, and to provide training for 1,846 SMEs in the development of business model growth strategies. The Committee once again requests the Government to provide detailed, up-to-date information, including statistics, disaggregated by age and sex, on the impact of the measures adopted by the Government on the development of SMEs and their creation of jobs. The Committee also requests the Government to indicate the results of these measures in relation to reducing the rate of informality.

Article 3. Participation of the social partners in the formulation and implementation of policies. In its previous comments, the Committee asked the Government to provide information on the activities implemented in the context of the National Labour Council for designing employment policies and programmes for the creation of decent work. The Committee notes that the Government has not provided any information in this respect. The Committee once again recalls that Article 3 of the Convention provides that “representatives of the persons affected by the measures to be taken, and in particular representatives of employers and workers, shall be consulted concerning employment policies, with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support for such policies”. Underlining the importance of the consultations required by the Convention, the Committee once again requests the Government to provide detailed, up-to-date information on the consultations held with the social partners and the representatives of persons affected by employment policies and programmes.