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1. The Committee has taken note of the Government's report for the period July 1988 to June 1990. The report includes a detailed analysis prepared by the Ministry of Planning and Cooperation concerning employment and employment policies. In addition the Committee has received comments from the Regional Employment Programme for Latin America and the Caribbean (PREALC), which agree in pointing out that the changes in employment and wages taking place over the period concerned were favourable.

2. Following a trend that began early in the decade (when adjusted unemployment reached 28 per cent in 1982-83), employment increased rapidly until mid-1989. By 1990 the growth rate of employment had diminished considerably as a result of the policy of adjustment that had to be adopted in order to counter inflationary pressure. In 1988-90 employment increased by some 7.4 per cent, bringing down the open unemployment rate from 9.1 per cent to 6.5 per cent. The Government states that the core of the problem has shifted from open unemployment to job informality and to the low wages earned by a large proportion of the population. Poverty is said to be the main social problem, and the employment problem the chief cause of poverty. The Government's labour policy aims at maintaining a low rate of open unemployment, improving the quality of existing jobs and changing the rules that govern relations between the social partners. To those ends, several amendment Acts to the Labour Code of 1987 have been approved, with particular reference to termination of the contract of employment and job stability; to trade union federations; and to trade union organisations and collective bargaining. The Committee trusts that the Government will include in its next report information about the relationships that have come into being between the objectives of an "active" employment policy as required by the provisions of Articles 1 and 2 of the Convention and the Government's other economic and social objectives.

3. The Government states that, among the measures designed to ensure the matching of labour supply and demand at the national level, a free public system of placement offices is in operation. The existing municipal placement offices have been restructured and a pilot plan is being carried out which emphasises vocational guidance activities addressed to young persons. A programme has been devised to make it possible to train young persons in undertakings by combining training with periods of work at establishments. In this connection the Committee ventures to mention the attention paid in its 1991 General Survey to international labour instruments relating to human resource development, and trusts that the Government will continue to supply information about the effect of the measures adopted to coordinate education and training policies with prospective employment opportunities.

4. The Committee would be grateful if the Government would also include information about measures designed to meet the needs of particular categories of workers, such as those promoted by the National Service for Women and for migrant workers by the National Returnees' Office. Please include also information about the measures adopted or planned on behalf of older workers, disabled workers and indigenous populations.

5. Article 3. The Government states in its report that efforts are aimed at two objectives: flexibility, so that entrepreneurs may adapt their undertakings to market changes, together with greater stability in employment, more trade union organisation and greater bargaining power for the workers in order to ensure proper distribution of the benefits of development. The process of reforming labour legislation began with an enabling agreement between the Confederation of Production and Trade, the Unitary Central Organisation of Workers and the Government authorities. The Government also reports that committees composed of representatives of workers and employers have been set up in various parts of the country. The Committee would be grateful if the Government would supply in its next report information about the scope of the consultations, bearing in mind that on that subject the Convention provides that the representatives of those concerned shall be consulted "concerning employment policies, with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support for such policies". Please also specify whether consultations have been held with representatives of other sectors of the economically active population such as those working in the rural sector and the urban informal sector.

6. Part V of the report form. The Committee has noted with interest that PREALC is cooperating with the Ministry of Finance in preparing the young people's training programme; with the Ministry of Labour and Social Security in evaluating the effects of the increase in the minimum wage; with the Ministry of Planning and Cooperation in determining the social effects of micro-economic policy; and with the Solidarity and Social Investment Fund in evaluating the credit machinery for micro-undertakings. The Committee trusts that in its next report the Government will be good enough to supply information about the action undertaken as a result of the advice received from PREALC.