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The Committee notes that the Confederation of Workers of Ecuador (CTE) and the World Federation of Trade Unions (WFTU) sent comments on the application of the Convention by letters of 17 December 2003 and 14 January 2004, objecting to section 8 of Executive Decree No. 44 of 30 January 2003 prohibiting an increase in wages and remuneration in the budgets of public sector entities for the financial year 2003. They also refer to a decision of the National Remuneration Council (No. 197) prohibiting wage increases in 2004 and 2005. The Committee notes with regret that the Government’s communication dated 17 August 2004 does not provide a reply to the Committee’s comments. The Committee requests the Government to provide its observations in its next report. In any case, the Committee recalls that in its previous observation it referred to the Decree in question and reiterates what it said on that occasion, namely that:

… all workers in the public administration who are not engaged in the administration of the State must be able to enjoy the guarantees laid down in the Convention and, consequently, negotiate collectively their conditions of employment, including wages, and that if, under an economic stabilization or structural adjustment policy, i.e. for imperative reasons of national economic interest, wage rates cannot be fixed freely by means of collective bargaining, these restrictions should be applied as an exceptional measure and only to the extent necessary, should not exceed a reasonable period and should be accompanied by adequate safeguards to effectively protect the standard of living of the workers concerned, in particular those who are likely to be the most affected (see General Survey on freedom of association and collective bargaining, 1994, paragraphs 262 and 260).

The Committee also notes that the CTE objects to the Civil Service and Administrative Careers and Unification and Standardization of Public Sector Remuneration Act of 6 October 2003, which, in its opinion, infringes Conventions Nos. 87 and 98 (the CTE states that it requested the Constitutional Court to declare certain sections of the Act unconstitutional), as well as to a draft amendment to the abovementioned Act presented to the National Congress on 16 December 2003. The Committee requests the Government to send the ruling handed down by the Constitutional Court. The Committee also hopes that the draft in question will be in conformity with the Conventions on freedom of association and collective bargaining. The Committee requests the Government to send it a copy of the draft and reminds it that it may avail itself of the technical assistance of the Office if it so wishes.

The Committee intends to examine the remaining issues concerning the application of the Convention in the context of its regular reporting cycle (see 2003 observation and direct request, 74th Session).