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Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Paraguay (RATIFICATION: 1964)

Other comments on C026

Observation

Direct Request

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Articles 1 and 3 of the Convention. Minimum wage-fixing machinery. The Committee notes that under Executive Decree No. 6472 of 20 April 2011, the minimum wage for workers of the private sector was raised by 10 per cent in various sectors and occupations. The Committee recalls that under sections 255 and 256 of the Labour Code, the rate of the minimum wage remains in force for two years, unless a significant deterioration is observed in the conditions of a particular area or industry due to economic or financial factors or a fluctuation in the cost of living by more than 10 per cent, in which case the National Minimum Wage Council (CONASAM) meets and considers the need to readjust the minimum wage level. The Committee understands that, in practice, the clause on the 10 per cent fluctuation of the inflation rate has been frequently used, resulting in a variable periodicity of minimum wage adjustments. The Committee also understands that since 2009, the Social Dialogue Roundtable on the Minimum Wage, composed of representatives of the Government, the social partners and other concerned stakeholders, aims at reforming the current minimum wage policy, for instance, by establishing the annual revision of the minimum wage rate and by identifying relevant criteria for such revision, such as inflation, economic activity and unemployment. The proposed reform is also meant to re-establish the key functions of the minimum wage as a means to protect vulnerable workers such as young persons, promote the formalization of labour relationships, and support collective bargaining. The Committee requests the Government to provide additional information on the ongoing reform process and any results achieved so far.

With respect to its previous comment regarding discriminatory pay practices against domestic workers, the Committee notes the Government’s indication that an office for assistance to domestic workers has been created by Resolution No. 124/2010, for the purpose of receiving individual claims and promoting awareness-raising activities to eradicate discriminatory practices against domestic workers. The Government also indicates that the Office for Assistance to Domestic Workers has prepared a draft bill recommending that the minimum wage for domestic workers be fixed at 60 per cent of the minimum wage rate for miscellaneous activities in the private sector. The Committee requests the Government to keep the Office informed of any progress concerning the establishment of the minimum wage rate for domestic workers. It also requests the Government to provide additional information on the activities of the Office for Assistance to Domestic Workers and practical results achieved so far.

Article 5 and Part V of the report form. Application in practice. The Committee notes with concern that, according to the statistical information provided by the Government, non-compliance with applicable minimum wage rates in the period 2009–11 remained particularly high with up to 60 per cent of private sector employees and almost 19 per cent of public sector employees earning less than the minimum wage. The Committee recalls, in this respect, that as it was pointed out by the ILO Governing Body in 1995, in the context of the representation made under article 24 of the ILO Constitution by the Latin American Central of Workers (CLAT) alleging non-observance by Paraguay of Convention No. 26, this is not a problem of legal provisions, or an incompatibility between national legislation and the provisions of the Convention, but instead it involves a failure to comply in practice with the provisions of the Convention. In its conclusions, the Governing Body had noted that the legal minimum wage appeared to be a desired goal rather than an actual right, and had urged the Government to take rapidly the necessary measures to ensure compliance with prescribed obligations. In addition, the Committee recalls that in 1996 in examining the application of Convention No. 26 by Paraguay, the Conference Committee on Application of Standards concluded that there still existed serious problems with respect to the practical application of the Convention and the Government should take all necessary measures to achieve concrete and substantial progress in the near future. In light of the preceding observations, the Committee requests the Government to indicate how it intends to redress the persistently high rate of non-compliance with the statutory minimum wage rates. It also requests the Government to continue to provide up-to-date information on the effect given to the Convention in practice, in particular inspection results showing the number of visits carried out, infringements of the minimum wage legislation observed and sanctions imposed.