Individual Case (CAS) - Discussion: 2011, Publication: 100th ILC session (2011)

The Government provided the following written information.

Articles 1 and 2 of Convention No. 122. Active policy designed to promote full, productive and freely chosen employment. The Committee of Experts requested the Government to provide information on the results achieved in the creation of productive employment in the context of the Decent Work Country Programme. The Committee of Experts requested up-to-date information be included on the size and distribution of the workforce and on the nature and extent of unemployment, as an essential component of the implementation of an active employment policy within the meaning of the Convention. The Government informs the Committee on the Application of Standards that consultations are being held with the ILO and the social partners with a view to the revision of the Decent Work Country Programme, which was approved in May 2007. At the present time, the authorities are engaged in the implementation of the Country Vision 2010–2038 and the National Plan 2010–2022, as long-term planning instruments setting out the objective of generating opportunities and decent employment in accordance with Convention No. 122. The Multi-purpose Continuous Household Survey carried out by the National Institute for Statistics allows analysis of trends in the principal labour market variables by economic activity for the years 2009 and 2010. Up-to-date data on employment for 2010 will be supplied in the near future to the Committee of Experts in time for its session in November–December 2010. The statistical table contained in Appendix IV of the present report shows the trends in the various labour market variables. Invisible underemployment fell by 5.9 per cent in 2010. The effects of the national and international crisis had an impact on the employment generated by the various economic activities, resulting from low levels of investment among other factors. Emphasis should also be placed on the clear recovery in activities such as agriculture, trade and services, as the principal employment-generating activities, in addition to construction.

Article 3 of Convention No. 122. Participation of the social partners. Measures for alleviating the impact of the crisis. The Committee of Experts requested the Government to supply information on the consultations held with a view to formulating and implementing an active employment policy enabling the negative impact of the global crisis to be overcome. The Committee of Experts also requested the Government to supply information on the consultations held with representatives “of the persons affected by the measures to be taken” from other sectors of the economically active population, such as those working in the rural sector and the informal economy. The Government informs the Committee on the Application of Standards that the tripartite consultations held in the framework of the formulation of active employment policies take place in special commissions which include delegations of the National Congress. These dialogue and socialization bodies dispel doubts and analyse the opinions, recommendations and divergent views put forward by the representatives of workers and of employers. In the case of the National Programme on Hourly Employment, within the framework of the National Programme for the Generation of Anti-crisis Employment, the document prepared by the International Labour Standards Department of the ILO on the impact of the emergency programme in relation to labour rights was presented to all the parties involved. All the sectors involved agreed on the need to generate decent employment at times of crisis through active employment policies, in accordance with the Constitution of the Republic, the Labour Code and other labour laws, as well as ratified Conventions. With regard to the consultations held with the various sectors of the economically active population, such as rural workers and those in the informal economy, the National Congress establishes commissions for the social analysis of laws with the representatives of productive associations, coordinating councils of associations from the towns and departments of the country, as well as with representatives of rural workers, manual workers, employers, dynamic sectors and development organizations. An illustration of consultations with representatives of the agricultural sector and the informal economy was provided by the approval of the Act on Rural And Urban Marginal Employment, which was supported by the Coordinating Council of Rural Organizations of Honduras (COCOCH) and the Association of Municipal Authorities of Honduras (AHMON), among other social bodies.

The Committee of Experts requested the Government to indicate the manner in which account has been taken of the opinions and experience of the representatives of employers’ and workers’ organizations in the formulation and implementation of the National Solidarity Plan for Anti-crisis Employment. The Committee of Experts requested information on the supervision and monitoring of the Programme, the extent to which the beneficiaries have succeeded in obtaining productive employment and details of the age, sex, place of residence, training received and any other data enabling a quantitative and qualitative examination to be made of the employment created. For discussion with the various organized social sectors in the country of the National Solidarity Plan for Anti-crisis Employment, the National Congress established a special commission to hear the various points of view and recommendations on the draft legislative text. The representative of the National Congress was accompanied by the leaders of the five political parties to discuss the draft legislation with the representatives of the social and economic sectors (rural workers, manual workers, employers, religious groups, employers’ leaders, dynamic sectors and representatives of development organizations) in the main cities of the country. The observations made by the ILO and the parties concerned, principally related to the guarantees set out in legal and international provisions respecting freedom of association and other relevant legal standards, were taken into consideration. The Committee on the Application of Standards may also note that the Economic and Social Council (CES), a tripartite dialogue body, in June 2010 discussed the contents of the National Programme for Hourly Employment, bringing together tripartite representatives so that they could indicate their opinions and their proposals for employment creation could be taken into account. In this context, it is emphasized that the President of the National Congress and the Ministry of Labour and Social Security concluded a framework inter-institutional cooperation agreement with a view to facilitating the recruitment of hourly workers through the employment generation legislation approved by the Chamber of Deputies (the text of the agreement was sent to the ILO in May 2010). Among the agreements concluded between the Government and the legislature, it was decided to strengthen the Labour Market Observatory (OML) as a necessary body for the generation of information on the labour market with a view to the implementation of new employment policies, as well as the prompt implementation of the National Employment Service as an instrument for the application and coordination of all employment programmes in the country.

To resume the situation as of April 2011, the following progress has been made in collaboration with the General Directorate of Employment and the General Labour Inspectorate:

– the Regulations of the National Programme for Hourly Employment were approved and published in the Gaceta on 7 February 2011 (a copy of the Regulations was forwarded directly to the ILO);

– 72 enterprises indicate that they have made use of the National Programme for Hourly Employment, of which 35 enterprises are registered;

– 193 labour contracts have been registered, covering 73 women and 120 men;

– the registered enterprises are located in Tegucigalpa, San Pedro Sula, Comayagua, Choluteca and Intibucá and are engaged in the following economic activities: financial establishments, insurance and property, services, agriculture, trade, manufacturing and construction;

– the workers are engaged in the cities of Tegucigalpa, San Pedro Sula, Comayagua, Choluteca and La Esperanza, most of them under two-month contracts with working days of four hours: the duration of the contracts varies between five days and 30 months;

– the largest number of workers are engaged in communal and social services;

– the STSS has provided guidance to 2,223 enterprises on the Programme, of which 71 have individually visited the General Directorate of Employment to obtain more in-depth knowledge.

Policy coordination. The Committee of Experts requested the Government to provide information on the steps taken to coordinate occupational education and training policies with prospective employment opportunities and to improve the competitiveness of the economy. In 2009, with the support of the five legally registered political parties and their Presidential candidates, and through processes of consultation which took into account the visions and expectations of representative associations, individuals, regions, municipal authorities and communities in the country, the basis was created for the development of long-term planning instruments: the Country Vision 2010–2038, a planning framework for seven periods of governments, which sets out four national objectives and 22 national priority goals; a National Plan 2010–2022, covering the first phase of the Country Vision, and a matrix of 58 indicators. Objective 1 indicates that by 2038, Honduras will have reduced levels of inequality in income and created the means for equal access to quality services in education and vocational training. Objective 3 provides for a Honduras which is productive, generating opportunities and decent employment, consolidating regional development plans as its model of management for economic and social growth. In accordance with Executive Decree No. PCM–008–97 under the Regulations on the organization, functioning and competences of the executive authorities, it is the responsibility of the Secretariat for Education, among other functions, to formulate, coordinate, execute and evaluate policies relating to the various levels of the formal education system, with emphasis on basic education. Institutions have been created which coordinate and implement education and vocational training policies: the National Centre for Labour Education (CENET), of which objective 1 is to implement educational programmes for labour which integrate adult education with vocational training in support of the medium and long-term development of the three sectors of the national economy, all in close coordination with the branch institutions; the National Vocational Training Institute (INFOP), with the objective of: “Contributing to increasing national productivity and the economic and social development of the country, through the establishment of a rational system of vocational training for all sectors of the economy and for all levels of employment, in accordance with national economic and social development plans and the real needs of the country. Accordingly, it is the responsibility of INFOP to direct, monitor, supervise and evaluate activities intended for vocational training at the national level”.

Impact of trade agreements. In view of the importance of exports for sustaining productive employment in the country’s economy, the Committee of Experts requested the Government to provide information on the impact of trade agreements on the generation of productive employment. The principal destination of exports from Honduras is the United States, which in 2009 accounted for 39.8 per cent of total exports, followed by the Central American region and Europe. The countries of the Dominican Republic–Central America–United States Free Trade Agreement (CAFTA–DR), including Honduras, benefit in the United States from preferential treatment in trade and from zero tariffs for certain products, such as fresh fruit and vegetables, cheese and other dairy products, and the agricultural sector is the largest provider of employment at the national level, in addition to the textile sector. In the context of the CAFTA–DR trade agreement between Central America, the Dominican Republic and the United States, upon its entry into force in 2006, the United States accounted for 36.8 per cent in terms of investment according to the source of capital in the industrial activity of goods for transformation and related activities, with a total of 110 enterprises. According to studies undertaken in the sector, the emergence of the maquila industry in Honduras has contributed to standards of efficiency and quality in the production of manufacturing goods in the country. This has undeniably added prestige the work of individuals and, moreover, the national geographical situation has allowed astute exploitation of the development of trade. The maquila sector as a source of employment has contributed to reducing pressure on the labour market without investment in this respect. In addition, the concentration of the population in the major cities generates various trends related to demand for products and services. The greater availability of income has given rise to rapid growth of the informal economy in such areas as the sale of food, snacks, street traders of articles for individual use, etc. For example, a number of maquila enterprises provide training programmes in various areas on productivity and continuous improvement, occupational safety and health, administration and human resources, legislation and social obligations, through the Programme for Integrated Training for the Textile Industry (PROCINCO).

Export processing zones. The Committee of Experts requested the Government to continue to supply information on the contribution of the export processing zones to the creation of lasting, high-quality employment. The largest number of workers engaged in export processing zones are concentrated in the textile industry, clothing and leather-working, followed by other activities, including the processing and conservation of fruit, plastic products, paper and cardboard, other manufacturing, etc., and finally electronic components and motor vehicle parts. According to data gathered by the Central Bank of Honduras, in 2008 a total of 122,881 persons were employed in the maquila sector, composed of 66,279 women (53.9 per cent) and 56,602 men (46.1 per cent). The figures for 2009 were a total of 106,695 workers, of whom 55,428 were women (52 per cent) and 51,267 men (48 per cent). The estimated number of workers employed in the maquila sector in 2010 was 117,898.

Micro-, small and medium-sized enterprises (MSMEs). The Committee of Experts requested the Government to supply information on the impact of the new legal framework relating to MSMEs on the creation of employment and the reduction of poverty. The Act for the promotion and development of competitiveness in micro-, small and medium-sized enterprises was published in January 2009. Action was commenced for the establishment of an initial fund for the promotion of MSMEs. Nevertheless, progress was interrupted by the political events of June 2009, which halted the process. Efforts are currently continuing to develop regulations under the Act and to train entrepreneurs in MSMEs to address their financial needs. Progress has been made in the training of MSMEs so that they can have access to purchases by the State for up to 30 per cent of total purchases. MSMEs receive support for participating in national and international exhibitions.

Migrant workers. The Committee of Experts requested the Government to supply information on the manner in which programmes for the sound investment of remittances sent by migrant workers have contributed to the creation of productive employment. Remittances are an important source of currency for the economy of Honduras. In 2010, they represented approximately 16.4 per cent of the Gross Domestic Product (GDP) in current dollars. Of the Central American countries, Honduras is the third largest receiving country of family remittances, which amounted to US$2,525.7 million in 2010, representing a rise of 5.1 per cent in relation to 2009. According to a study by the Central Bank of Honduras, the remittances sent by migrant workers have become, in the same way as at the global level, an important source of financial resources which are used to fund economic development, and have become a subject of great interest, not only for analysts and policy-makers, but also for high-level political decision-makers. The Six-monthly Survey Report “Family remittances sent by Honduran nationals resident abroad and expenditure in the country during their visits”, of January 2011, produced by the Central Bank of Honduras, indicates that, in accordance with the views of those consulted, the majority (69.1 per cent) of income from family remittances is used for the consumption of subsistence goods and services. School expenses are the item that comes second, with 11.3 per cent, followed by medical expenses at 9.6 per cent. Remittances have a positive macroeconomic effect by promoting economic growth. An analysis undertaken by the Central Bank of Honduras emphasizes the importance of remittances on various macroeconomic factors, which contribute to promoting initiatives for employment generation.

Youth employment. The Committee of Experts urged the Government to continue to focus on the need to integrate young persons in the labour market. The Committee of Experts requested the Government to provide information on the results achieved by the National Youth Policy and the Plan of Action for Youth Employment 2009–2011. Following processes of consultation with various sectors, including organizations of young persons at the national level, the National Youth Policy, for which the National Youth Institute (INJ) is responsible, was approved in 2010, and was subsequently launched in the Presidential Palace, when the position of Executive Secretary was raised in rank to Secretary of State in the Youth Office. The Secretariat of Labour and Social Security (STSS), through the General Directorate of Employment, Institutions and Bodies, is currently in the process of refining the Plan of Action for Youth Employment (PAEJ), which will then be submitted to the Economic and Social Council (CES) for further consultation with the various sectors before its approval. The PAEJ contains strategies and orientations addressing fundamental areas of youth problems on the labour market. Issue 2 of the PAEJ addresses social dialogue and its impact, proposing to stimulate and promote mechanisms for effective and proactive participation so that young persons can give voice to their demands and aspirations in relation to employability and employment, set out their needs, propose alternative solutions and conclude concerted agreements providing for tangible and feasible solutions, in the context of institutional dialogue with all the actors involved. In accordance with its constant practice, in light of the contributions from the tripartite examination in the Committee on the Application of Standards, the Government of Honduras expresses its readiness to provide a report to the Committee of Experts containing updated information on labour market trends and information on the progress achieved in the application of the Convention.

In addition, before the Committee a Government representative indicated that the Government Plan 2010–14 was designed to create active employment strategies and was promoting the establishment of a National Employment Service, which demonstrated the Government’s commitment towards the Convention. He recalled that Honduras had one of the weakest economies in Latin America and growth in GDP for 2011 had been estimated at 3 to 4 per cent, thereby maintaining the upward trend in relation to the previous year. He indicated that owing to the country’s efforts regarding fiscal consolidation and stabilization of the economy, Honduras had concluded an agreement with the International Monetary Fund (IMF) which gave it greater access to international financial markets, while also creating a better climate for trade. He stressed his Government’s commitment to the creation of productive employment, in the context of an economic and social policy that promoted national development, improving levels of productivity and general living conditions. He recalled that those commitments formed part of the Country Vision 2010–38, the National Plan 2010–22 and the Government Plan 2010–14. He indicated that the biggest challenge for the Honduran economy was not open unemployment, which stood at about 3.9 per cent, but underemployment, which affected 40.3 per cent of the economically active population. His Government considered it a priority to boost competitiveness and formulate and implement programmes for dissemination of technological innovation, worker training, new management practices, company organization and development of an enterprise culture. He asserted that comprehensive educational reform was needed as soon as possible so that intermediate and higher education would meet labour market needs. At present, only 40 per cent of those enrolled completed basic education, of whom only 34 per cent went on to secondary education. Of the 34 per cent only 5 per cent went on to university. He explained that the Government was creating aggressive investment programmes and passing laws based on novel concepts of implementation. In its next report it would submit information to the Committee of Experts on the new legislation promoting active employment policies, which included the following: the National Plan and Country Vision Act, the National Programme on Hourly Employment, the Public–Private Partnership Act, the Investment Promotion and Protection Act, the Special Development Region Act, the Marginal Rural and Urban Employment Act, and the Foreign Employment Act. He concluded by recalling that the Government had a “roadmap” for achieving positive results leading to an improved standard of living for the population and that it was receptive towards making adjustments to find solutions together with the social partners. He was interested in the social partners being actively and positively involved in the process within the Economic and Social Council and also in the initiatives taken to promote a frank and open discussion of the challenges faced by the country in achieving decent and productive employment.

The Employer members recalled that this case was last discussed in 1997, at a time when Honduras was facing numerous challenges: significant problems of foreign debt, budgetary deficits and a rapidly growing population. Unemployment was high, but the Government had recognized that the essential solution was higher economic growth. Since then, the world had increasingly globalized, which made it harder for smaller nations to be in a position to control their own employment policies. Additional challenges included rapid technological change and increasingly cheap transportation costs. The written submission provided by the Government contained a large amount of information. However, the Government needed to provide a supplementary report in a timely manner explaining its policies and the legislation that it intended to put in place, since it was presently impossible for this Committee to evaluate the information provided. One of the principal objectives of the Convention was that each Member should declare and pursue an active policy designed to promote full, productive and freely chosen employment within a framework of a coordinated economic and social policy with tripartite consensus on its impact. Based on the written information, this Committee could at best determine what the Government intended to do, but the details were lacking. The Government had not provided details regarding the consultations with workers’ and employers’ organizations and other organizations that were affected. The Convention established a framework in which those who sought work should be able to find work which was as productive as possible. The information presented did not indicate what economic and employment policies were in place to ensure that work was available. The unemployment figures that were communicated seemed relatively good in the current economic crisis, but it was unclear how such figures were calculated. In the Employer members’ view, employment policies should generate productive and sustainable employment, raise standards of living with policies leading to better jobs, improve income distribution in a better economy, provide appropriate employment incentives, and focus on private investment and international assistance in the most productive areas. They hoped that the Government would provide additional information in its next report in time to allow for a proper assessment of employment promotion policies.

The Worker members recalled the enormous challenges facing Honduras: poverty, with 59.2 per cent of poor households in 2009 and 36 per cent of households in extreme poverty; underemployment affecting 30 per cent of the population; a large young active population, only 5 per cent of whom were unemployed, but 82 per cent of whom did not benefit from social protection, while many young persons with qualifications had difficulties in finding employment; and a large number of migrant workers estimated at 5 per cent of the population. That was compounded by an unfavourable economic and financial context, and a sustained debt reduction programme, the effects of the global financial crisis, in the form of a fall in growth, investment and employment, including in export processing zones, where 12,000 jobs had been lost since 2008. To address such problems, according to the observation made by the Committee of Experts, the country seemed to have adopted ambitious measures, in the form of anti-crisis plans, programmes and measures, accompanied by a national competitiveness strategy which aimed to promote productive work in the maquila, agri-food, forestry and tourism sectors. It was impossible to assess the results obtained through the adoption of such measures, as the Government had not provided any information in this regard. It was only in May 2011 that the Government had provided a first reply to the ILO, and then at the present session of the Conference, it provided written information. The Worker members regretted such late replies which made it impossible to undertake a serious evaluation of the situation.

The Employer member of Honduras recalled that Honduras had suffered one of the most serious socio-political problems in its history which, added to the international financial crisis, had had a negative impact on economic and social development. The Government had fostered a public–private partnership in developing investment and had promoted various policies and adopted acts encouraging investment as an essential contribution to poverty eradication. He mentioned several initiatives that the Government had taken, including the National Plan and Country Vision, Legislative Decree No. 230/2010, the National Solidarity Plan for Anti-Crisis employment, the Public–Private Partnership Act, the Investment Promotion and Protection Act and the Marginal Rural and Urban Employment Act, and reaffirmed the employers’ support for the Government’s policies. In their view, the measures taken violated neither Conventions nor the rights of workers and employers. He said that the various legislative reforms were awaiting approval from Congress formed an integral part of policies to ensure judicial certainty and generate employment. He said that, from the employers’ perspective, the new legislation aimed to guarantee employment for citizens throughout the country, and that Honduras had not failed to comply with its obligations under the Convention. Public policies were being formulated that would promote a climate favourable to investment, thereby facilitating growth and economic development.

A Worker member of Honduras expressed concern at the socio-economic situation in Honduras and the informal and precarious nature of employment. He pointed out that the systematic violation of rights in the country hampered the creation of favourable conditions for the generation of decent employment. He indicated that the Decent Work Country Programme had not had a significant impact on the population and recalled the statistics relating to poverty and extreme poverty included in the comments of the Committee of Experts. He also emphasized the impossibility of maintaining social dialogue in a climate of fear and mistrust with restrictions on public freedoms, dismissals of trade union executive committees, limits on collective bargaining and murders of trade union leaders. He underlined the importance of creating high quality, stable and decent employment. He indicated that both the Decent Work Country Programme and the National Solidarity Plan for Anti-Crisis Employment were ineffective in terms of the jobs created. He asserted that ILO technical assistance was needed to create policies on a tripartite basis for full employment with decent wages.

Another Worker member of Honduras stated that it was necessary to create jobs, but they should be decent jobs with fair wages. He did not support the National Solidarity Plan for Anti-Crisis Employment because it created temporary, precarious work and promoted flexibility in employment. The unstable nature of temporary work had negative consequences in various spheres and also posed problems for freedom of association and collective bargaining. He said that the Congress had adopted the Plan against the wishes of the trade unions. He recalled the difficult situation that the country had experienced and said that poverty and corruption had increased following the coup d’état, which had undermined social peace and made it difficult to create decent jobs.

The Government member of Brazil, speaking on behalf of the Government members of the Committee, which were members of the Group of Latin American and Caribbean countries (GRULAC), emphasized that the Government’s participation demonstrated the efforts it was making to apply the Convention. The measures taken by the Government would necessitate the continued involvement of the social partners, the international community, the ILO and the Conference Committee. The ILO should support Honduras in its efforts to meet its commitments arising from ratification, and his Government encouraged the Government of Honduras to continue to work towards full application of the Convention.

The Worker member of Germany expressed the serious concern of the German Confederation of Trade Unions (DGB) for the trade union situation in Honduras. She regretted that the Government spent most of the time reading out statistical figures instead of presenting concrete measures aimed at reducing unemployment. Sound employment policy presupposed a real dialogue with the social partners being treated as equals. When poverty remained at nearly 60 per cent, absolute poverty at 36 per cent and unemployment and underemployment approximately 35 per cent, real dialogue was urgently needed. In a climate of violence, trade unions and unionists received little assistance from the State or the judiciary, and there was little possibility of actively becoming involved in issues of collective bargaining and trade negotiation. As shown in the Committee of Experts’ report, there were 250 companies operating in export processing zones employing about 119,000 workers. Trade unions existed only to a limited degree and tripartite negotiations were largely impossible. Honduras needed genuine trade union activity and real dialogue in order to obtain an effective employment policy. While reference had been made to the need to deal with the economic crisis, it was necessary to put an end to violence against trade unions and impunity. She hoped that the Government would take advantage of the technical assistance that the ILO offered.

The Worker member of the Bolivarian Republic of Venezuela stated that democratic instability resulting from the coup d’état against the democratically elected Government had been detrimental to employment. He drew attention to the figures included in the observation by the Committee of Experts on the state of poverty in the country. ILO technical assistance was fundamental to improving the situation in the country. He highlighted the connection between the right to employment and respect for physical, psychological and moral integrity. It was vital to end repression, acts of violence and murder and to re-establish the rights of the Honduran people, which had been trampled, so that cases like those of Roger Vallejo and Ervin Acobo Euceda, who were assassinated, could not occur in the future.

The Worker member of Spain indicated that although the information supplied by the Government gave details of different policy documents and legislative instruments relating to employment creation, it did not include statistical data that would enable the real impact on employment to be measured. He pointed out that the Decent Work County Programme had ended in 2009 and therefore it would be possible to communicate the results achieved through its implementation; failure to supply them would suggest a lack of political will to do so. He declared that decent work called for a serious ongoing dialogue with workers’ and employers’ organizations, and proposals from the social partners needed to be taken into account in the formulation of employment policies. He indicated that the National Solidarity Plan for Anti-Crisis Employment was a further step in the deregulation and deterioration of conditions of work and the trade union federations had rejected it. He asked the Government to ensure that its next report included fewer intentions and more statistics.

The Government representative stated that the Government hoped to consolidate constructive, inclusive and commitment-based dialogue under a government of national unity and reconciliation, founded on respect for and promotion of labour rights and consolidating democracy and internal stability, so as to achieve sustainable social and economic development. He recalled that written information had been submitted to the Committee on the tripartite consultations held within the framework of formulating active policies on employment and on the functioning of special committees, which included delegations from the National Congress. He stressed that all parties involved had had access to information on the impact of the National Programme on Hourly Employment. He recalled that a national tripartite commission on follow-up and monitoring had been established within the Economic and Social Council. It had met on 6 June 2011, chaired by the Minister of Labour, and had considered concerns raised by employers and workers. Furthermore, a technical team from the social security institution would submit guidelines with the basic aim of ensuring that workers employed under the National Programme on Hourly Employment would enjoy social security coverage. The Government representative said that awareness-raising days had been held to avoid possible infringements of the law, and that additional funds had been requested to strengthen labour inspection. He reiterated that the Government would provide detailed statistics in its next report on the labour market situation and on the various initiatives taken. He welcomed the declaration of support made by GRULAC and reaffirmed the Government’s will to achieve full employment with social justice and decent work.

The Worker members underlined that faced with poverty, informal work and youth unemployment, Honduras needed an energetic and coherent employment policy supported by workers’ and employers’ organizations and by the population as a whole. In the absence of statistical data, it was impossible to assess the scope and extent of the various plans and programmes adopted, the results obtained, or the way in which the social partners had been involved. Before the next session of the Committee of Experts, therefore, the Government should provide detailed information on those issues and on the economically active population, employment and unemployment, and the various forms of employment that existed. The Worker members concluded by stressing the importance of a frank and serious social dialogue.

The Employer members observed that Honduras seemed to be in a better condition than it had been in 1997. Globalization and the economic crisis presented significant challenges to the country, but it did so for all countries. They needed a more transparent picture of Honduras’ economic and employment policies, the day-to-day practice and the consequences of those practices on productive and sustainable employment. The only way this could occur was if the Government communicated a timely report to the Committee of Experts for its next session.

Conclusions

The Committee took note of the written detailed information provided by the Government on the issues raised by the Committee of Experts in its most recent observation on the application of the Convention, as well as the oral statements made by the Government representative and the discussion that followed.

The Committee noted that the Government reiterated its commitment to the generation of productive employment in the framework of its plans and programmes designed to overcome the difficult situation of underemployment which represents over 40 per cent of the economically active population. The Government also expressed its intention to reform its education and training system to ensure decent job opportunities for young people. It referred to the consultations held with the social partners in the Economic and Social Council and the National Congress to enlist their support with regard to the implementation of the National Solidarity Plan for Anti-crisis Employment.

The Committee noted the serious concerns expressed on the possibility for the National Solidarity Plan to create productive job opportunities and decent working conditions in view of the apparent instability of employment. It also noted that the Government was faced with a significant problem of foreign debt, budgetary deficits, a rapidly growing population and the need to pursue an active employment policy, as a major goal, in the framework of a coordinated economic and social policy.

The Committee recalled, as required by Article 3 of the Convention, that consultation with the social partners was essential both at the earliest stages of policy formulation and during the implementation process as this enabled governments to take fully into account their experience and views. The Committee urged the Government to intensify its efforts to engage in genuine tripartite consultation on the points raised by the Committee of Experts in its observation.

The Committee invited the Government to report in detail for the next session of the Committee of Experts with an update of the information provided on new measures and their objectives and on the size and distribution of the workforce, as well as specific information on the effectiveness of the measures implemented in reducing underemployment and achieving the objectives of the Convention. The Committee also requested the Government to provide detailed information on how tripartite mechanisms had contributed 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.

Individual Case (CAS) - Discussion: 1997, Publication: 85th ILC session (1997)

A Government representative indicated that a new report had been submitted which contained all the details requested in the observation of the Committee of Experts. The Institute of Vocational Training (INFOP) was active in strengthening the financial and administrative management of the cooperative rural enterprises promoting participation of women; it also sought to coordinate the training of the forestry officials under the Corporation for Forestry Development of Honduras. Her Government was trying to facilitate the integration of young people, members of the ethnic minorities and disabled people into the different training activities. Programmes of enterprise development were oriented towards the creation of micro, small and medium enterprises.

The Government has adopted policies to rationalize the public service by reducing employment in the governmental sector. These measures were required by the conditions to obtain credits imposed by the international financial institutions on the governments of the developing countries. The speaker urged the Committee of Experts to take note of these realities in examining the application of the Convention.

Her Government was also promoting employment in the modern sector of the economy by increasing the production of export goods, particularly in zones of industrial development and through the diversification of agricultural production. Productive employment generated in the export zones amounted to 75,000 jobs. In the export enterprises women workers predominated and it was necessary to increase wages in the export processing zones.

With respect to the consultation of representatives of the sectors involved in the employment policy, the tripartite Council of Social Consultation was created to improve the national economy through consultations with all sectors of the society. The Government requested the Office to better support the development of programmes aimed at increasing the capacity of small and medium enterprises to hire unemployed workers.

The Workers' members made it clear that since this discussion would be the only case concerning the application of Convention No. 122 this year, their comments would only reflect considerations on the application of this important Convention which had been more thoroughly discussed during the general discussion. The Committee of Experts noted in its observation that the Government referred to structural adjustment and foreign debt constraints, to the budgetary situation as well as demographic growth as factors which were influencing its employment policy. The Government stated that despite the measures it had adopted to solve the problem of unemployment, the objective of full employment was still impossible to achieve because of the serious structural problems that the country was experiencing. At the same time, the Government stated that it had adopted measures to reduce public expenditure and encourage foreign investment, particularly in export zones. This purely economic approach where politics only seemed to follow macroeconomic criteria imposed by international financial institutions raised great concerns. Employment and the social situation were only considered in terms of cost or as the consequence of economic growth. On the basis of this logic, economic growth could have some positive effects on employment if these benefits were absorbed by financial markets or profited by a minority. On the other hand, the Convention stipulated that the economy was not a value in itself and that an active social and economic policy should have full employment as its objective. The request of the Committee of Experts for the Government to state clearly the consequences on employment of the various economic measures, including in the export zones, had to be fully supported. It was necessary to know the mechanisms put in place by the Government to ensure the coordination between the policial, economic and social policies. The observation of the Committee of Experts with respect to the conception and implementation of policies and programmes was essential, and the conclusions adopted during the Copenhagen Social Summit relating to the relations between the Bretton Woods institutions, other international institutions for development and the ILO had to be recalled. It would be useful if the Government could benefit from the ILO's technical assistance during its forthcoming negotiations with international financial institutions. Concerning the application of Article 3 of the Convention, the Workers' members stressed the necessity to extend the consensus on the employment policy to all sectors concerned, including the informal sector, and this should be done at all stages of social and economic decision making. It could not be emphasized enough that the obligations of the Convention be at the centre of social and economic policies. As requested by the Committee of Experts supplementary information on the practice, as well as on the intention of the Government regarding this question, should be provided.

The Employers' members were well aware of the economic difficulties encountered in Honduras. It faced significant problems of foreign debt, budgetary deficits and a rapidly growing population. A substantial portion of the workforce were unemployed. A critical condition for reversing the deterioration of employment conditions was to restore higher stable rates of growth. Only high economic growth and financial stability had provided preconditions for sufficiently high rates of growth of productive employment. This would include putting in place appropriate mechanisms, with follow-up, for financing in the informal sector and micro-enterprises in order to facilitate their gradual integration with the formal sector.

The Government had attempted to do this in part, by providing a support programme in the informal sector that had been set-up with ILO technical cooperation. The Government also had a rural development programme. These and other measures were needed to cope with the high rate of labour force growth as well as to reduce the existing pool of unemployed and underemployed. The process of job creation in Honduras would be more successful if its economy was more open and market oriented. Moreover, since success could be achieved where there was a high degree of social consensus, the Government should consult with the social partners as provided for under Article 3 of the Convention. The Government appeared to have draft legislation in this respect. The Employers' members were puzzled by the request from the Committee of Experts for information on the measures associated with the reduction of public expenditure to guarantee employment for those affected. In their view, employment could not be guaranteed and the Convention contained no such requirement. Finally, a greater effort was needed to develop access to education especially at the primary level, rural infrastructure, especially transportation and communication, credit schemes as well as public works programmes. Finally, job growth in export processing zones, as mentioned by the Government representative, was a good strategy for producing jobs.

The Workers' member of Honduras stated that structural adjustment of the economy required the reduction of the state apparatus which had resulted in the loss of employment for many workers. The principal sectors of employment creation, besides the public sector, were enterprises in the agricultural sector and more recently those in the free export zones. The international quotas imposed on the production of bananas and coffee had led to the closure of enterprises and brought great damage to the workers of Honduras. The jobs created in the export zones were not sufficient to compensate for this damage. The Government should deploy more efforts together with the private sector to create new employment and to create conditions to advance the application of the Convention. The speaker raised the possibility of the ILO assisting the Government to establish a tripartite committee to monitor and supervise ratified Conventions. At the same time he expressed his satisfaction with the progress of the tripartite dialogue in Honduras, particularly in the area of human rights. The assistance of the Office was very much appreciated.

The Government representative, referring to the previous interventions, gave an assurance that the recommendations made would be transmitted to her Government which would avail itself of the technical assistance of the Office, where it could be necessary.

The Committee took note of the information provided by the Government representative as well as the declarations made by other speakers during the discussion. It noted that the Government indicated that it had supplied a report to the Office, containing indications in response to the comments of the Committee of Experts, in particular concerning the creation of productive employment and the manner in which account was being taken of the relations between the objectives of the employment policy and other goals of the coordinated political, economic and social policies. The Committee trusted that the representatives of all interested sectors would be consulted fully to ensure that the measures taken by the Government were implemented and oriented towards the fundamental objective of full, productive and freely chosen employment, as required by the Convention. The Committee hoped that the Committee of Experts would examine this new report at its next session in December this year. The Committee took note of the request made by the Government representative that the Office support programmes of strengthening small and medium enterprises and expressed its confidence that this request would be satisfied as soon as possible.

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

Direct Request (CEACR) - adopted 2017, published 107th ILC session (2018)

Direct Request (CEACR) - adopted 2013, published 103rd ILC session (2014)

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

Observation (CEACR) - adopted 2010, published 100th ILC session (2011)

Articles 1 and 2 of the Convention. Active policy designed to promote full, productive and freely chosen employment. The Committee notes the detailed report and the full documentation received in September 2009. The Government lists the measures intended to promote economic growth, increase income and reduce the fiscal deficit and tax burden. The Government’s objective is to create high-quality employment; carry out investment in economic and social infrastructure in order to promote productivity, investment and decent work; and strengthen investment in education, training, research and technological development. In the 2010 General Survey concerning employment instruments, the Committee emphasized that Executive Decree No. PCM-05-2007 of 2007 integrates the “National Plan for the Creation of Decent Employment” into the country’s poverty reduction strategy and gives it the status of state policy (2010 General Survey, paragraph 57). The Government points out that in its report since 2008 the country is no longer in the category of “heavily indebted poor country”, having moved into the category of “lower middle income country”. According to the National Institute for Statistics, the percentage of households living in poverty in 2009 was 59.2 per cent and 36 per cent of households were classified as living in extreme poverty. In 2009 the rate of open unemployment was 2.9 per cent and the rate of invisible underemployment was 29.8 per cent. With the implementation of the National Decent Work Programme (PNTD), the Government is seeking to generate some 425,000 jobs during 2006–09 and some 650,000 jobs in the following six years. The PNTD seeks to promote decent work with the emphasis on young people, the development of micro-, small and medium-sized enterprises, reduction of informal work and underemployment, and the improvement of services relating to employment, vocational training and labour market information. The Government also states that monitoring instruments for evaluating the management of comprehensive employment policies are being applied in order to be able to measure their results. The Committee requests the Government to supply information in its next report on the results achieved in the creation of productive employment in the context of the PNDP. The Committee requests that up-to-date information be included on the size and distribution of the workforce and on the nature and extent of unemployment, as an essential component of the implementation of an active employment policy within the meaning of the Convention.

Article 3. Participation of the social partners. Measures for alleviating the impact of the crisis. The Committee observes the negative impact of the international financial crisis on public finance, growth in GDP and private, national and foreign investment, causing a drop in income and employment. The Government indicates in its report that efforts are being made to ensure macroeconomic stability and stimulate the creation of productive employment, as well as boosting training of the workforce in priority population groups and sectors of production. The Committee also notes the tripartite commission set up to construct a space for dialogue, coordination, negotiation and consultation with special emphasis on the “National Plan for the Creation of Decent Employment” and the “Support policy for supporting the competitiveness of micro-, small and medium-sized enterprises”. In the 2010 General Survey concerning employment instruments, the Committee underlines the importance of ongoing, genuine tripartite consultations for tackling and alleviating the consequences of the global economic crisis (2010 General Survey, paragraph 788). The Committee requests the Government to supply information in its next report on the consultations held with a view to formulating and implementing an active employment policy enabling the negative impact of the global crisis to be overcome. The Committee also requests the Government to supply information on the consultations held with representatives of the persons affected by the measures to be taken from other sectors of the economically active population, such as those working in the rural sector and the informal economy.

The Committee notes Decree No. 230-2010 of November 2010 establishing the National Solidarity Plan for anti-crisis employment which includes the National Programme on Hourly Employment. The Committee notes the opposition expressed by the General Federation of Workers (CGT), the Workers’ Confederation of Honduras (CTH) and the Single Confederation of Workers of Honduras (CUTH) towards the draft National Solidarity Plan in a communication sent to the Government in October 2010. The Committee requests the Government to indicate in its next report the manner in which account has been taken of the opinions and experience of the representatives of employers’ and workers’ organizations in the formulation and implementation of the aforementioned Plan. The Committee requests the Government to provide information on the supervision and monitoring of the Programme, the extent to which the beneficiaries have succeeded in obtaining productive employment and details of age, sex, place of residence, training received and any other data enabling a quantitative and qualitative examination to be made of the employment created.

Coordination of policies. The Government states that it is joining forces to improve the employability and competitiveness of the workforce by means of a National Vocational Training Programme which is integrated with the creation of productive work. The Committee also notes that the National Competitiveness Strategy identifies as motors of development the service-oriented maquila (export processing) sector, the full development of agri-food potential, promotion of the forestry sector and the full development of tourism. The Committee requests the Government to include information in its next report on the steps taken to coordinate occupational education and training policies with prospective employment opportunities and to improve the competitiveness of the economy.

Impact of trade agreements. In its previous comments the Committee referred to the entry into force of the Dominican Republic–Central America–United States Free Trade Agreement (CAFTA–DR). In view of the importance of exports for sustaining productive employment in the country’s economy, the Committee again requests the Government to include information in its next report on the impact of trade agreements on the generation of productive employment.

Export processing zones. The Committee notes that, according to the Honduran Association of Maquila Enterprises, in January 2009 there were 250 enterprises working in the export processing (maquila) sector employing nearly 119,000 workers. More than 12,000 jobs have been lost in this sector since 2008. The highest levels of activity remain in textiles, clothing and vehicle parts. The Committee requests the Government to continue to supply information on the contribution of the export processing zones towards the creation of lasting, high-quality employment.

Micro-, small and medium-sized enterprises (MSMEs). According to the Ministry of Industry and Trade, the 280,000 MSMEs in the country generate approximately 25 per cent of GDP and more than 700,000 jobs. In October 2008 Decree No. 135 approving the Act for the promotion and development of competitiveness of MSMEs was adopted. The Act seeks to promote a favourable environment in which urban and rural MSMEs can develop their competitiveness and establish an enterprise culture, facilitate access to financing, create conditions for the establishment and consolidation of production lines and draw up strategic plans for ensuring the full development of the sector. Funds of 1,000 million lempiras were assigned to the development of the MSMEs. The Committee requests the Government to supply information on the impact of the new legal framework relating to MSMEs on the creation of employment and the reduction of poverty.

Migrant workers. The Committee notes that migrants account for more than 5 per cent of the population. The destination of 81.1 per cent of migrants is North America. Remittances from the United States to Honduras amount to some US$2,600,000 annually. The Government states that procedures are being implemented to organize the flow of labour-related remittances and investment and to reduce their utilization in the consumer sphere, ensuring that they are undertaken within proposed plans for the reduction of unemployment and underemployment. The Committee requests the Government to supply information on the manner in which programmes for sound investment of remittances sent by migrant workers have contributed to the creation of productive employment.

Youth employment. According to the National Youth Forum, the unemployment rate for economically active young persons stands at 5.2 per cent and is even higher in urban areas, especially the city of Tegucigalpa (10.8 per cent), while rural unemployment stands at 2.9 per cent. The rate of open unemployment for young persons who have completed secondary or higher education is 8.6 per cent and 8 per cent respectively. The Committee observes that young persons who have received training face particular problems in finding employment. The Government indicates that it is necessary to eliminate the social problems that represent a real risk for the youth population, including violence, poor access to health care and education, and also exclusion from political, social and economic opportunities. The Committee notes that the National Youth Policy and its Strategic Plan have been approved. The Plan of Action for Youth Employment 2009–11 has been adopted in order to promote the employability of young people by means of access to technical and vocational training. The strategic components of the Plan of Action include promoting the development of young entrepreneurs and increasing access to productive assets to discourage the migration of young persons between 15 and 29 years of age who form a vulnerable section of the population. The Committee also observes that there is a growing problem of unemployment among educated workers, particularly young university graduates, who are unable to find secure employment commensurate with their skill level. This is now an issue for both advanced market economies and developing countries. Not only are their skills underutilized but this pattern of casual jobs can prove detrimental to their lifetime career progression (2010 General Survey, paragraph 800). The Committee urges the Government to continue to focus on the need to integrate young persons in the labour market. The Committee requests the Government to include information in its next report on the results achieved by the National Youth Policy and the Plan of Action for Youth Employment 2009–11.

Direct Request (CEACR) - adopted 2008, published 98th ILC session (2009)

1. Articles 1 and 2 of the Convention. Implementation of an active employment policy. The Committee notes once again with interest the detailed information included in the report received in August 2007. The report contains the information requested in the report form and in the response to the direct request of 2006. During the period covered by the report, the Dominican Republic – Central America – United States Free Trade Agreement (CAFTA-DR) had entered into force and the reduction of the external debt service had continued under the Multilateral Debt Relief Initiative. Furthermore, in February 2007, the programme supported by the Poverty Reduction and Growth Facility of the International Monetary Fund had concluded, with the negotiation of a new agreement with the multilateral financial institutions. Although the official unemployment rate of urban areas had decreased (down from 4.9 per cent in 2006 to 4.1 per cent in May 2007), one third of the active population was unemployed. The Committee hopes that the next report will include an assessment of the impact of the trade agreements and the new measures adopted to reduce and alleviate the external debt service, reduce poverty and create productive employment. The report should also make it possible to assess the impact of the programmes mentioned by the Government in its report to improve the employment opportunities of women and men seeking productive employment.

2. Part V of the report form. ILO technical assistance. The Government indicates in its report that the National Plan for the Generation of Decent Employment had been made into a State policy, as a strategic planning instrument to be used in the strategy to reduce poverty. The Committee asks the Government to provide in its next report a list of the results achieved by the National Plan for the Generation of Decent Employment, as well as for the other programmes that had received the technical assistance of the ILO, in particular those intended to promote employment for young persons and to promote the Convention’s goal of creating productive employment.

3. Employment for young persons. In response to the previous request, the Government reports that there are approximately 8,000 unemployed or underemployed young persons aged 18 to 29 years who are seeking work and have at least three years of schooling. It also states that 436 young persons were selected as beneficiaries for training under the “My first job” programme. The training centres (CECAP) had been invited to participate in training activities. According to data published by the ILO in Labour Overview 2007, approximately seven of every ten employed young persons in Latin America in 2006 were employed in occupations that had no health coverage or retirement benefits, and this proportion for Honduras and Nicaragua was over 82 per cent. In its previous reports, the Government made reference to initiatives to promote the employment of young persons with a component entitled “first job for youth at risk” intended to achieve the placement of approximately 6,000 poor young persons from urban areas. The Committee reiterates its interest in examining the information on the manner in which the programmes intended to reduce violence and insecurity have contributed to an increase in productive employment of young persons. The Committee once again invites the Government to provide information on the measures taken by the National Institute of Vocational Training and the National Centre for Technical Education for Work intended to improve the opportunities for professional and vocational training and promote the creation of new enterprises and business opportunities.

4. Export processing zones. The Committee notes the detailed information provided on employment in the maquila sector. Some 5,882 new jobs had been created in the maquila sector in 2005. The reduction in the participation of women was the result of the diversification of economic activities which currently includes the manufacture of vehicle parts, wooden furniture, electronic accessories and trade. The Committee asks the Government to continue to provide information on the contribution of export processing zones to the creation of lasting and quality employment.

5. Article 3. Participation of the social partners. In its report the Government indicates that spaces for dialogue have been re-established where all manner of policies, measures and actions intended to promote the sustainable and progressive development of the country were jointly discussed, analysed and approved with representatives of the three social partners. The Committee refers to its previous comments and requests the Government to provide more detailed information on the consultations held in the Social and Economic Council with regard to employment policies. The report should also include information on the consultations held with representatives of the rural sector, informal economy and maquila sector on the matters covered by the Convention.

Direct Request (CEACR) - adopted 2006, published 96th ILC session (2007)

1. Implementation of an active employment policy. The Committee notes with interest the full information included in a report received in August 2005, which contains the information requested in the report form and in the 2004 observation. The Committee would be grateful if the Government would provide information in its next report on the manner in which the employment promotion objectives have been achieved which were set out in the Government Plan 2002‑06, the National Competitiveness Programme and the Poverty Reduction Strategy. In 2004, of an economically active population of over 2.5 million people, only 1,170,000 had found wage employment and 750,000 poor households were identified. The Committee would like to continue examining statistical data which focus on whether the employment prospects of women and men wishing to find productive employment have improved in light of the many programmes enumerated by the Government in its report. The Committee would also be interested in being informed of the measures adopted for the development of infrastructure and their impact on job creation, as well as the manner in which the trade agreements that have been negotiated have affected the labour market (Articles 1 and 2 of the Convention).

2. ILO technical cooperation. The Committee requests the Government to indicate the results achieved by the programme “New jobs for the people”, which was discussed in the Economic and Social Council, and the measures adopted as a result of the studies conducted on decent work and poverty in Honduras and on gender equality in employment policy, to which the Government referred in its report. In this respect, the Committee notes the “Tripartite Declaration for the promotion of employment and decent work in Central America and the Dominican Republic”, concluded by the ministers of labour and representatives of employers’ and workers’ organizations in Tegucigalpa in June 2005. It was agreed in the Tripartite Declaration, among other significant policies, to include the objective of creating worthwhile, lasting and high-quality jobs, in accordance with ILO parameters, as a central aim of macroeconomic policy, with efforts being focused not only on controlling inflation and the fiscal deficit, but also and with equal priority on the promotion of investment and equitable growth. The Committee would be grateful if the Government would provide information in its next report on the initiatives taken with ILO support to promote, at both the national and subregional levels, the objectives of the creation of productive employment as set out in the Convention (Part V of the report form).

3. Promotion of youth employment. The Government refers to initiatives to promote youth employment, including a component on “first jobs for youths at risk”: the objective is the labour market integration of around 6,000 poor urban youths who have dropped out of the conventional education system and who are not engaged in work or only work occasionally in informal activities. Furthermore, with the support of the Inter-American Development Bank, vocational training, the employment service (SIL) and the modernization of the labour administration (MAT) are being promoted. The Committee asks the Government to provide information in its next report on the manner in which these programmes have contributed to reducing youth unemployment and facilitating the entry of young persons into the formal labour market. The Committee once again requests the Government to provide information on the action taken by the National Institute of Vocational Training and the National Technical Vocational Education Centre to improve the supply of vocational and technical training and promote new enterprises and business opportunities.

4. The Committee notes that the export processing sector has been affected by the suspension of contracts and the closure of enterprises. In 2002, the jobs generated by the export processing industry reached 105,557 (114,237 in 2003). Over half of the workers employed in the sector continue to be women. The textile industry continues to be the one generating the highest volume of activity. The Government indicates that the “full package” scheme allows firms to provide a variety of services, which will result in greater added value and the success of the export processing industry. The Committee requests the Government to continue providing information on the contribution of the export processing sector in terms of the generation of productive employment.

5. Participation of the social partners. The Government provides information on the participation of the social partners in the process of updating the Poverty Reduction Strategy. The Government also refers to the consultations held in the context of the Economic and Social Council. The Committee emphasizes that it is the joint responsibility of governments and the representative organizations of employers and workers to ensure that representatives of the most vulnerable and marginalized groups of the economically active population are associated as closely as possible with the formulation and implementation of measures of which they should be the prime beneficiaries (see paragraph 493 of the 2004 General Survey on promoting employment). The Committee trusts that the Government will continue to provide information on the consultations held on the matters covered by the Convention with the representatives of employers’ and workers’ organizations, also including representatives of the rural sector, the informal economy and the export processing sector.

Observation (CEACR) - adopted 2004, published 93rd ILC session (2005)

1. Implementation of an active employment policy. In a report received in August 2003, the Government briefly describes a number of employment creation measures (support for the rural economy, creation of road maintenance micro-enterprises) and the new approaches that have been followed since September 2003 in basic education and training. Reference is also made to a project for services to help in finding jobs. The Committee notes that a number of these measures were already in the proposals made by the Social and Economic Council, with ILO assistance, to promote the employment-related aspects of the Poverty Reduction Strategy. The Committee requests the Government to include information in its next report on the measures adopted to implement an active employment policy within the meaning of the Convention as a result of the technical assistance provided by the ILO.

2. The Committee notes that difficulties have been encountered in meeting the eligibility conditions of the debt reduction initiative for Highly Indebted Poor Countries (HIPC). In this respect, the Committee trusts that the Government will endeavour to ensure that employment is given central importance in macroeconomic and social policies in the formulation and implementation of the national poverty reduction strategy. The Committee considers that it is essential from the outset for employment objectives to be included "as a major goal" in the formulation of economic and social policy if these objectives are truly to be an integral part of the policies that are adopted (paragraph 490 of the General Survey of 2004 on promoting employment). The Committee hopes that, as in the past, the Government will provide a detailed report enabling the Committee to examine the manner in which employment promotion has been considered as a central objective of all the available macroeconomic policy measures, and particularly of monetary, budgetary, trade and development policies (Articles 1 and 2 of the Convention).

3. The Government states that the data from the National Statistical Institute, in September 2002, showed satisfactory trends with the reduction in open unemployment of 2.8 per cent. According to the data analysed by ECLAC, underemployment rose from 24 per cent in 2001 to 26.6 per cent in 2002, which tends to indicate that new entrants onto the labour market are mostly in the informal economy. Although the unemployment rate fell at the national level, it increased in the cities of Tegucigalpa and San Pedro Sula. The Committee trusts that the Government’s next report will include up-to-date statistical data on the results of the measures adopted to create employment for young persons and women, improve the supply of vocational and technical training and promote new enterprises and trade opportunities.

4. The Committee recalls its interest to have at its disposal information on the employment impact resulting from the action taken by the National Institute of Vocational Training, the National Technical Vocational Education Centre and the measures adopted under the project for the productive integration of young persons who are poor and at risk of social exclusion.

5. The Committee notes that, according to the data from the Honduran Association of Maquila Enterprises contained in the Government’s report, it is planned that 237 maquila enterprises will be operating in 2004, providing employment for around 130,000 persons. The Committee asks the Government to provide data in its next report on employment trends in the maquila sector and the measures which have been adopted to provide labour market guidance for workers affected by the closure of maquila enterprises.

6. Social partners’ participation. The Committee recalls that Article 3 of the Convention requires consultations with representatives of all the persons affected, and in particular representatives of employers and workers, for the formulation and adoption of employment policies. The Committee considers that it is the joint responsibility of governments and the representative organizations of employers and workers to ensure that representatives of the most vulnerable and marginalized groups of the active population are associated as closely as possible with the formulation and implementation of measures of which they should be the prime beneficiaries (paragraph 493 of the General Survey, op. cit.). The Committee trusts that the Government will provide information in its next report on the consultations held on the subjects covered by the Convention with the representatives of employers’ and workers’ organizations, as well as representatives of rural workers, the informal economy and the maquila sector.

Observation (CEACR) - adopted 2002, published 91st ILC session (2003)

1. The Committee notes a new detailed report from the Government, received in August 2002, which contains full particulars on the matters raised in the report form. The Committee notes with interest the establishment, by virtue of Executive Decree No. PCM-016-2001 of 31 October 2001, of the Economic and Social Council, the principal objective of which is to serve as a forum for social dialogue and consultation for the analysis and approval of proposals related to the dimension, continuity and form of wage and employment policies with a view to promoting and increasing the competitiveness of enterprises at the global level, as well as training and improving the quality of working life of men and women. The Committee also notes with interest that the Office’s Multidisciplinary Advisory Team has responded to a request from the Government for the inclusion of the labour dimension into the Poverty Reduction Strategy (PRS). Following tripartite consultations, the ILO submitted recommendations to the Economic and Social Council to provide guidance for the measures adopted within the framework of the PRS. These recommendations included the following: undertaking a permanent analysis of the impact on employment of the various policies and programmes adopted in the economic and social fields; promoting public labour-intensive investment programmes; decentralizing resources to support small and micro-enterprises; ensuring that basic education is free of charge in practice; making progress towards a more relevant and effective vocational training policy adapted to the needs of the market and promoting equity for the most marginalized labour force, which is in the informal sector and the rural economy; and pursuing a policy of the modernization, integration and decentralization of employment services. The Committee hopes that in its next report the Government will refer to the action taken as a result of these recommendations, which will make a significant contribution to the full application of Articles 1, 2 and 3 of the Convention.

2. The Committee notes that the open unemployment rate in San Pedro Sula (the economic centre of Honduras) rose to 7.4 per cent in 2001 (compared with 6.9 per cent in 1999), which is the highest level of unemployment in the past 14 years. The Committee notes the various measures which have been taken to promote employment including, for example, the establishment of agricultural export zones (Decree No. 233-2001), as well as the measures intended to promote sustainable rural and local development. The Committee would be grateful if the Government would continue to provide information on the jobs created as a result of the various measures referred to in its report. In particular, please indicate the manner in which the action taken by the National Vocational Training Institute, the National Vocational Technical Education Centre and the measures adopted under the Framework Act for integrated youth development have given rise to an improvement in the coordination of education and training policies with prospective employment opportunities.

3. The Committee notes that in 2001 a total of 36 enterprises related to export processing zones closed, resulting in the loss of 25,591 jobs. In view of the high number of women workers who have been affected by the recession in the export processing sector, the Committee would be grateful if the Government would provide information in its next report on employment trends in the sector and the measures that have been adopted for the reintegration in the labour market of the men and women workers affected.

Observation (CEACR) - adopted 2001, published 90th ILC session (2002)

1. The Committee notes the Government’s full and detailed report for the period ending July 2000. The Government recalls the damage caused in October 1998 by Hurricane Mitch and refers to the implementation of the Master Plan for National Reconstruction and Transformation, the strategic objectives of which include economic recovery with employment creation. Economic growth, boosted by food exports and manufacturing activities, has resulted in an increase in GDP, a reduction in inflation and a recovery in employment levels (the open unemployment rate was 3.7 per cent in 1999). Export processing enterprises created over 6,000 new jobs (according to ECLAC). The Committee notes that a Poverty Reduction Strategy was adopted in the context of the Heavily Indebted Poor Countries (HIPC) Initiative. In July 2000, the World Bank and the International Monetary Fund agreed to support measures for the reduction of the financial debt, which include commitments concerning a participative strategy against corruption, social security reform, the strengthening of the financial sector, improvements in the quality of education, the provision of health-care services for the poor and the efficiency of social protection systems. In this respect, the Committee trusts that the Government will continue to give priority in its plans and programmes to the objectives of full employment, and that it will include information in its next report on the extent to which it has been possible to meet the employment objectives established in the Master Plan and the Poverty Reduction Strategy (Articles 1 and 2 of the Convention).

2. The Government indicates in its report that the Honduran Social Investment Fund (FHIS) spurred temporary employment generation projects based on the construction of small economic and social infrastructure works. The Committee refers to its observation of 1998 and would be grateful if the Government would continue to provide information in its report on the results of the measures adopted by the FHIS in terms of productive employment, particularly for the informal sector. Please also include information on the measures adopted by the National Vocational Training Institute (INFOP) to coordinate education and training policies with prospective employment opportunities.

3. Article 3. The Government states that the participation of civil society in relation to the employment policy occurs through the National Convergence Forum (FONAC), the strengthening of non-governmental organizations and the decentralization process, which seeks to support the role of local governments and communities. The Committee notes the above and would be grateful if the Government would provide examples in its next report of the manner in which representatives of employers’ and workers’ organizations (including representatives of those working in the rural sector and the informal sector) have been consulted concerning the employment policy measures adopted in the implementation of employment generation programmes, particularly in the context of the Master Plan and the Poverty Reduction Strategy.

Observation (CEACR) - adopted 1998, published 87th ILC session (1999)

1. The Committee notes the detailed report provided by the Government for the period ending June 1998. In its report, the Government provides information on the operational plan of the General Directorate of Employment for 1999, as well as detailed statistics on the situation of employment, unemployment and underemployment in the country. In September 1997, the national rate of open unemployment was 3.2 per cent, with underemployment affecting 23.4 per cent of the population. The Honduran Social Investment Fund (FHIS), defined as a mechanism for the payment of the social debt, promotes employment through the construction of productive or social infrastructure, a support programme for the informal sector and other programmes of action designed to meet the basic needs of the population. The operational plan of the National Institute of Vocational Training (INFOP) was also included in the report. The Committee would be grateful if the Government would indicate in its next report the programmes implemented by the FHIS and the INFOP to promote the creation of productive employment. The Committee is aware that the hurricane which affected the whole Honduran territory in November 1998 resulted in massive human, economic, social and environmental losses. The Committee hopes that the Government will retain the objectives of full, productive and freely chosen employment, as set out in Article 1 of the Convention, among its priorities for national reconstruction and that the assistance of the international community will also be directed at sustaining programmes for the creation of employment, particularly for the population most affected by the hurricane. The Committee trusts that the Government will take into account the need to comply with the provisions of the Convention when designing and implementing new employment programmes and that, in its next report, it will be able to indicate the extent to which it has been able to overcome the difficulties encountered in attaining the objectives of the Convention.

2. The Committee considers it appropriate to recall once again that, in accordance with Article 3 of the Convention, representatives of the persons affected by the measures to be taken shall be consulted concerning employment policies, both during their formulation and their implementation. In view of the circumstances, the Committee is bound to request the Government to provide information in its next report on the manner in which consultations with the representatives of employers and workers have been ensured in practice, particularly for those sectors affected by the hurricane, including the rural sector and the informal sector.

3. Finally, the Committee hopes that the competent departments of the ILO can make a contribution to the achievement of the objectives of the Convention and that the Government will be able to indicate in its next report the action taken as a result of any activities undertaken by the ILO.

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

1. The Committee notes the Government's report for the period ending June 1996 and the information in reply to its previous comments. The Government describes developments in the economy and employment since the beginning of the implementation of the structural adjustment programme in 1990 and emphasizes that foreign debt, the budgetary deficit and the rapid growth of the economically active population are all obstacles to the achievement of the objective of full employment envisaged in Article 1 of the Convention. According to government estimates, the open unemployment rate was around 4.2 per cent in 1995 (6.6 per cent in urban areas), while 25 per cent of the economically active population (over 33 per cent in the rural sector) were affected by underemployment.

2. The Committee notes the information concerning the action programmes undertaken by the Honduran Social Investment Fund (FHIS) designed to improve the living conditions of underprivileged social groups by increasing their levels of employment and income. It notes that the support programme for the informal sector benefits from ILO technical cooperation. The Government also reports measures for the promotion of rural employment and new provisions adopted for the employment of workers with disabilities. The Committee notes that measures financed by the FHIS have led to the creation of 32,044 jobs lasting on average three or four months between 1990 and 1994, and it would be grateful if the Government would provide as much detailed information as possible on the contribution made by the various measures that it describes to the effective and lasting integration of the persons concerned into employment. The Committee requests the Government to continue describing the measures taken by the National Vocational Training Institute (INFOP) with a view to improving the coordination of education and training policies with prospective employment opportunities.

3. The Government states that, despite the policies pursued to address the employment problems, the objective of full employment remains unattainable due to the economic and structural problems experienced by the country. The Committee notes the emphasis placed by the Government on the reduction of public expenditure and the promotion of foreign investment through means such as the establishment of export processing zones. It would be grateful if the Government would: (i) provide detailed information on the incidence on employment of the measures adopted under Decree No. 135-94 to rationalize the administration and the public sector, with an indication of the accompanying measures that are envisaged to guarantee employment for the workers affected; (ii) provide information on the contribution of export processing zones to the creation of productive employment; and (iii) indicate the manner in which the employment policy takes into account "the mutual relationships between employment objectives and other economic and social objectives" (Article 1, paragraph 3, of the Convention) and is pursued "within the framework of a coordinated economic and social policy" (Article 2). The Government could, for example, envisage the adoption of mechanisms to ensure that the objectives and obligations of the Convention are duly taken into account in the design and implementation of the corresponding policies and programmes, as well as in any negotiations with the international financial institutions.

4. The Committee notes the indication that the adoption of legislation to promote employment gives rise to consultation with the organizations of employers and workers concerned. It recalls that, in accordance with Article 3 of the Convention, representatives of all the persons affected by the measures to be taken must be consulted concerning employment policies, both at the time of their formulation and for their implementation. With reference to its previous comments, it trusts that the Government will indicate in its next report the manner in which consultation (with the representatives of the persons affected) is assured in practice and that they include representatives of persons working in the rural sector and the informal sector.

5. The Committee notes that the report refers to ILO technical cooperation and advisory activities and requests the Government to indicate any action taken as a result of these activities (point V of the report form).

Direct Request (CEACR) - adopted 1995, published 82nd ILC session (1995)

With reference to its observation, the Committee requests the Government to supply information in its report on the following points:

- the activities of the FHIS, and particularly the impact on employment of the projects undertaken in cooperation with PREALC to create jobs;

- the activities of the Informal Sector Support Programme (PASI), particularly with regard to the factors which have prevented or delayed the implementation of the recommendations contained in the quadripartite evaluation of project HON/90/002, "Assistance to the support programme for micro-enterprises";

- the work of the INFOP with regard to the coordination of education and vocational training policies with prospective employment opportunities;

- measures in favour of rural workers affected by the new provisions to modernize and develop the agricultural sector, including the programmes undertaken by the National Agrarian Institute;

- initiatives relating to the modernization of the State which are likely to affect the level of employment of workers in the public sector.

Observation (CEACR) - adopted 1995, published 82nd ILC session (1995)

1. The Committee notes the Government's brief report on the application of several Conventions for the period ending June 1994. The Government considers that the various comments made by the Committee have emphasized the need to reform the legislation and states that a draft Labour Code, prepared in the context of the programme to modernize and strengthen the State, has now been submitted to the competent authorities. However, the Committee is bound to urge the Government to supply a detailed report on the employment policy measures adopted under the Convention and to supply the information requested on previous occasions on the following points:

(a) the situation, level and trends of employment, unemployment and under-employment and the impact of the measures adopted to assist particular categories of workers who frequently encounter difficulties in finding long-term employment. More generally, the Committee requests the Government to describe the principal policies adopted to promote productive employment, with an indication of the extent to which the employment objectives included in development plans and programmes have been or are being attained (please refer in this respect to the questions contained in the report form under Article 1 of the Convention, and the question on the promotion of employment for persons with disabilities raised by the Committee in paragraph 5 of its previous observation);

(b) the procedures adopted to ensure that the measures taken to promote economic development or other economic and social objectives contribute to the attainment of employment objectives, in accordance with Article 2;

(c) the manner in which account is taken, in the formulation and application of employment policy, of the experience and views of representatives of employers and workers. Please also indicate whether procedures have been established or are envisaged for the consultation of representatives of other sectors of the active population, such as workers in the rural and informal sectors, with a view to giving full effect to the fundamental provisions of Article 3 of the Convention.

2. In the direct request which it is repeating, the Committee asks the Government to supply additional information on the action taken as a result of the technical cooperation activities of the ILO and on other aspects related to the application of the Convention (the activities of the National Vocational Training Institute, employment in the rural sector and public sector).

Direct Request (CEACR) - adopted 1994, published 81st ILC session (1994)

With reference to its observation, the Committee requests the Government to supply information in its next report on the following points:

- the activities of the FHIS, and particularly the impact on employment of the projects undertaken in cooperation with PREALC to create jobs;

- the activities of the Informal Sector Support Programme (PASI), particularly with regard to the factors which have prevented or delayed the implementation of the recommendations contained in the quadripartite evaluation of project HON/90/002, "Assistance to the support programme for micro-enterprises";

- the work of the INFOP with regard to the coordination of education and vocational training policies with prospective employment opportunities;

- measures in favour of rural workers affected by the new provisions to modernize and develop the agricultural sector, including the programmes undertaken by the National Agrarian Institute;

- initiatives relating to the modernization of the State which are likely to affect the level of employment of workers in the public sector.

Observation (CEACR) - adopted 1994, published 81st ILC session (1994)

1. The Committee notes the Government's report for the period ending June 1992. In its report, the Government states that the gross domestic product recorded a growth of 2 per cent in 1991, which permitted an increase in private savings and investment, as well as the renegotiation and reduction of the external debt. Prices were totally freed in order to allow them to find their real level and therefore stimulate production, particularly in the agricultural sector. According to the Government, the transfer of resources to this latter sector resulted in an increase in the level of employment. Furthermore, loans were provided for small and medium-sized enterprises with a view to increasing production and productivity and promoting the creation of jobs in family enterprises. The Government also refers to the new legislation on investment which it hopes will lead to the direct creation of 70,000 jobs and to the indirect creation of 200,000 other jobs during the period 1993-97. The data available to the ILO, together with the growth in GDP, point to the maintenance of a particularly high rate of inflation (estimated at 32 per cent for 1991) and a substantial budgetary deficit, while the prices of basic food increased substantially and the structural adjustment measures which have been implemented since 1990 have had a high social cost in terms of increased unemployment and poverty.

2. The Committee recalls that in its 1992 observation it expressed concern that account should be taken, in the context of the financial stabilization and adjustment programme, of the need to encourage an equitable distribution of the social costs and benefits of structural adjustment. It notes in this respect the information concerning the activities of the Honduran Social Investment Fund (FHIS), which was established in cooperation with PREALC, with a view in particular to the formulation of labour-intensive projects. The funds from the various donors have covered the financing of over 400 small-scale projects. The Government states in its report that around 480,000 people have benefited from the projects implemented by the FHIS. The Committee trusts that the Government will supply more detailed information in its next report on the situation, level and trends of employment, unemployment and underemployment and will report the results achieved by the measures undertaken to encourage the productive employment of categories of workers who frequently experience difficulties in obtaining lasting employment. More generally, the Committee also requests the Government to describe the principal policies pursued with a view to promoting full and productive employment, with an indication of the extent to which the employment objectives set out in development plans and programmes have been or are being achieved (please refer in this respect to the questions in the report form under Article 1 of the Convention).

3. In reply to the comments made in the observation of 1992, the Government states that the level of employment depends on macroeconomic policy and the rate at which production grows. It adds that, in the case of Honduras, the question of employment has to be seen in the perspective of the changing structure of employment resulting from the increase in productivity. With reference to Article 2 of the Convention and to the obligation to "decide on and keep under review, within the framework of a coordinated economic and social policy", the measures to be adopted to attain the objectives of full, productive and freely chosen employment, the Committee requests the Government to describe in its next report the procedures which have been taken to guarantee that the measures which are taken with a view to promoting economic development and other economic and social objectives contribute to the attainment of employment objectives in the sense set out in the Convention.

4. With regard to the consultations required under Article 3, the Government states that the Ministry of Labour and Social Insurance consults the workers on their expectations in the field of employment policy and that both the impact of the changing conditions of production on the capacity to absorb labour and the salary fluctuations are analysed jointly. The Committee would be grateful if the Government would supply information in its next report on the manner in which, in relation to employment policy, the experience and views expressed by employers' and workers' organizations are taken into account. Please also indicate whether formal or informal procedures have been established, or are envisaged, in order to hold the consultations required by this fundamental provision of the Convention with the representatives of other sectors of the active population, such as those working in the rural sector and the informal sector.

5. The Committee notes with interest the adoption in March 1991 of the Act respecting employment promotion for persons with disabilities, which makes it compulsory for the public administration and private enterprises to recruit a prescribed number of workers with disabilities, and also provides for the establishment and development of special sheltered employment centres, cooperatives, micro-enterprises and other employment opportunities for persons with disabilities. The Committee would be grateful if the Government would supply information in its next report on the results achieved by the various measures which have been adopted to respond to the needs of persons with disabilities (point 2 of the report form under Article 1). The Government could also find it helpful to refer to the ILO's 1983 instruments on vocational rehabilitation and the employment of persons with disabilities (Convention No. 159 and Recommendation No. 168).

6. In a direct request, the Committee requests the Government to supply additional information on the action taken as a result of the technical cooperation activities of the ILO and PREALC, and on other aspects related to the application of the Convention (the activities of the National Vocational Training Institute, employment in the rural sector and the public sector).

Direct Request (CEACR) - adopted 1992, published 79th ILC session (1992)

The Committee refers to its observation and requests the Government to supply information in its next report on the following points:

1. The Committee notes that the employment generation programme agreed upon between the Ministry of Finance and the Agency for International Development of the United States (USAID) has been integrated into the Honduran Social Investment Fund (FHIS). The FHIS is carrying out five programmes of activities: social and/or productive infrastructure works; massive emergency employment measures; support for production; basic needs; and strengthening the institutional support for programme managers. The Committee would be grateful if the Government would supply information on the employment generated under each of these programmes, indicating the categories and number of workers that have benefited. The Government may deem it useful to consult the provisions of Part III of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169), in which reference is made to responding to the needs of categories of persons who frequently have difficulties in finding lasting employment.

2. Please describe the characteristics and operation in practice of the "food for work" project, carried out by the German-Honduran Cooperation Project, and indicate the impact of the above Project on the generation of productive and freely chosen employment.

3. The Committee would be grateful if the Government would supply information on the rural employment programmes carried out by the National Agrarian Institute.

4. The Committee notes with interest the information supplied on the activities of the National Institute of Vocational Training (INFOP). It would be grateful if the Government would continue to supply information on the activities of the INFOP, the integration into the labour market of those who have benefited from INFOP courses, and other measures of a public or private nature that have been adopted in order to coordinate education and vocational training policies with prospective employment opportunities. The Committee suggests that the Government refer to the 1975 instruments on human resources development (Convention No. 142 and Recommendation No. 150) and its 1991 General Survey on these questions.

5. Part V of the report form. The Government refers to various technical assistance projects carried out by the Office and by PREALC. The Committee would be particularly grateful if the Government would supply information on the action taken as a result of these projects, and the impact of such action on the labour market.

Observation (CEACR) - adopted 1992, published 79th ILC session (1992)

1. The Committee notes the Government's report in which it states that, in the same way as many developing countries, it is still affected by a significant weakening of its growth rate. The economy has not been able to create new employment in sufficient quantities to absorb those entering the labour force, which has given rise to underemployment, particularly in the rural sector. In order to deal with the situation, the Government has embarked upon a broad programme of financial stabilisation and structural adjustment of the productive system. The principal elements of the programme are intended to increase government income and reduce expenditure. The Committee trusts that, in this context, account will be taken of the need to emphasise the equitable distribution of the social costs and benefits of structural adjustment. The Committee requests the Government to indicate in its next report the extent to which the difficulties encountered have been overcome in achieving the objectives of full, productive and freely chosen employment, as set out in the development plans and programmes that have been established and which are being implemented (Article 1 of the Convention). Please describe the procedures adopted to ensure that, at both the planning and implementation stages, the effects on employment of measures taken in the context of the financial stabilisation and structural adjustment programme receive due consideration (Article 2).

2. In its previous comments, the Committee recalled the importance of consultations with representatives of the persons affected by the employment policy measures to be taken. These consultations should have the objective of taking into account their experience and views and enlisting support for such measures. The Committee noted that, within the context of the programme to strengthen institutional support for programme managers (FIE), efforts are being made to strengthen the capacity to promote projects through the intermediary bodies of the Honduran Social Investment Fund. It also noted the consultations with the population in the community which will implement a project within the framework of the "food for work" programme. The Committee trusts that the Government will supply information in its next report on the consultations required under Article 3 of the Convention, which should include representatives of employers' and workers' organisations as well as representatives of other persons affected, such as those who work in the rural and informal sectors.

3. In a direct request, the Committee is raising other questions relating to the application of the Convention (measures for certain categories of workers, the impact of certain special employment programmes, rural employment, the activities of the National Institute of Vocational Training, and the technical assistance provided by the ILO).

Direct Request (CEACR) - adopted 1990, published 77th ILC session (1990)

1. The Committee notes the Government's report and the detailed documentation that was attached relating to a number of points raised in its 1988 direct request. According to the data supplied by the Government, or that is available to the Office, the rate of open unemployment was around 12-13 per cent (between 1986 and 1988) and it is estimated that over 48 per cent of the labour force at the national level is underemployed. Within the framework of the employment generation programme agreed upon between the Ministry of Finance and the Agency for International Development of the Government of the United States of America (USAID), projects have been undertaken mainly to achieve improvements in respect to water shortages, the degradation of national resources and the deterioration of infrastructures, which have made it possible to generate more than 2,100 jobs per year until the end of 1987.

The Committee would be grateful if the Government would include information in its next report on the measures adopted within the framework of the employment generation programmes which ensure that these programmes contribute to promoting full, productive and freely chosen employment (Article 1 of the Convention). Please also indicate the extent to which the employment objectives set out in the 1987-1990 National Plan have or are being attained and describe the principal policies pursued and the measures adopted to meet all employment needs, with particular reference to overall and sectoral development policies (and in particular the measures adopted in such fields as investment policy; fiscal and monetary policies; trade policy; prices, incomes and wages policies).

2. Article 2. The Committee notes with interest the survey forms on households and the labour force, and the other material supplied in the Government's report from the General Directorate of Statistics and Census. The Government states that in order to promote development and employment a plan is being carried out to privatise various enterprises that failed when operated under the direction of the State. The Committee requests the Government to supply information in its next report on the impact of the privatisation plan on the labour market and to describe the procedures adopted to ensure that the effects on employment of measures taken to promote economic development or other economic and social objectives receive due consideration, at both the planning and implementation stages.

3. Article 3. For the third time in succession the Committee notes the lack of information in the Government's report permitting it to assess the extent to which the representatives of persons affected by the employment policy are consulted. The Committee recalls the importance of consultations with representatives of persons affected by the measures to be taken and that these consultations should have the objective of taking into account their experience and views and enlisting their support for such policies. The Committee trusts that in its next report the Government will not fail to supply the information called for in the report form on the consultations held with representatives of employers' and workers' organisations and of the persons affected, such as those working in the rural sector and the informal sector.

4. The Committee notes with interest that the production of coffee has absorbed increased numbers of the rural labour force. The Government also refers to a project for the rural sector consisting of the provision of food for agricultural workers in exchange for work performed through co-operatives. The Government may find it useful in this connection to consult paragraph 27 of the Employment Policy Recommendation, 1964 (No. 122) and it trusts that the Government will supply information in its next report on the above project and on other measures that are intended to create productive employment opportunities in the rural sector.

5. The Committee notes with interest the 1986-89 Plan of Activities of the National Institute of Vocational Training and also requests the Government to include information in its next report on the results achieved by the measures adopted to co-ordinate education and vocational training policies with prospective employment opportunities.

6. Part V of the report form. Please indicate the action taken as a result of the various technical co-operation projects undertaken by the PREALC and the competent departments of the Office in areas related to an active employment policy.

7. Finally, the Committee notes the document "Diagnostic. Operative Annual Plan for 1989" prepared by the General Directorate of Employment, that was supplied by the Government with its report. It trusts that in its next report the Government will indicate the manner in which the conclusions and recommendations contained in the above document have been put into effect.