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Employment Policy Convention, 1964 (No. 122) - Costa Rica (RATIFICATION: 1966)

Other comments on C122

Observation

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The Committee notes the observations of the Costa Rican Federation of Chambers and Associations of Private Enterprise (UCCAEP), sent by the Government in its report. It also notes the observations of the Rerum Novarum Workers’ Confederation (CTRN), the Costa Rican Confederation of Democratic Workers (CCTD), the Costa Rican Workers’ Movement Confederation (CMTC), the General Confederation of Workers (CGT), and the United Confederation of Workers (CUT), as well as the observations of the International Trade Union Confederation (ITUC), received on 1 September 2023. The Committee requests the Government to provide its comments in this respect.

Article 1 of the Convention.Micro, small and medium-sized enterprises (MSMEs). Informal economy. The Government indicates that, according to data from the Central Bank of Costa Rica (BCCR), in 2019 small and medium-sized enterprises (SMEs) accounted for 97.4 per cent of businesses. The Government adds that they contribute 34 per cent to gross domestic product (GDP) and that 33 out of every 100 jobs are created by SMEs. The Government therefore highlights the importance of these enterprises for expanding the economy, increasing formal employment and ensuring a fairer distribution of income and wealth. However, the Government indicates that 80 per cent of the enterprises are microenterprises, with various weaknesses and defects in terms of business management. In this regard, the Government in its report reiterates the information on the various initiatives implemented to promote the growth of MSMEs and improve the competitiveness of business ventures, including the implementation of the National Entrepreneurship Policy (PNE) and different programmes by the Directorate-General for Small and Medium-Sized Enterprises (DIGEPYME). Lastly, the Committee notes that, on the basis of the Costa Rican Business Information System (SIEC), the number of registered SMEs continued to grow, increasing from 20,127 to 27,870 in 2019–20. The Committee emphasizes that, as recognized by the Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998 (No. 189), the creation of an environment conducive to the growth and development of sustainable micro, small and medium-sized enterprises is a means of creating decent and productive work and is a key component in ensuring the effectiveness of formalization strategies. The Committee requests the Government to continue providing detailed, up-to-date information, including statistical information disaggregated by age and sex, on the impact of the policies adopted by the Government in favour of MSMEs and cooperatives on the creation of employment. The Committee also requests the Government to continue sending detailed, up-to-date information on the results of the said programmes in terms of reducing the rate of informality.

Coordination of education and vocational training policy with employment opportunities. The Committee notes the information provided by the Government on the measures, programmes and policies implemented to promote training and skills acquisition in order to enhance employability in the context of a changing labour environment. The Government refers, inter alia, to the implementation of the National Qualifications Framework (MNC), which standardizes qualifications and the associated skills on the basis of various technical criteria with a view to directing training and classifying occupations and employment, in accordance with the dynamics of the labour market. The Government indicates that enterprises participate in the formulation of qualification standards to ensure that they respond to the needs of the sectors. It also enables cooperation between the various social actors connected with vocational education and training, employers, training centres and civil society. The Government also indicates that the Dual Education and Technical Training Act (Act No. 9728 of 2019) was adopted after six years of social dialogue and searching for consensus among various stakeholders. The Committee notes the actions taken with a view to applying the above-mentioned Act, such as the formulation and monitoring of institutional dual training strategies, and also the organization of forums on dual training with the participation of enterprises and information campaigns to disseminate their results. The Committee notes that the CTRN, CMTC, CGT, CCTD and CUT assert in their observations that Act No. 9728 was adopted unilaterally by the Government and employers’ organizations, outside the Higher Labour Council and the tripartite committee established in 2017 with ILO technical support to guide the preparation of the new law. They indicate that the Act implements a model which creates precarious conditions for apprentices, who have no social security, rights or proportional wage. In addition, in its governance structure there is an advisory review committee, composed of 11 persons, only one of whom comes from the unions.

The Committee also notes the measures implemented to coordinate training possibilities with the requirements of the labour market, such as the signing of cooperation agreements between the Chamber of Industries of Costa Rica (CICR) and the National Training Institute (INA). Lastly, the Government indicates that a social dialogue forum held with the participation of numerous actors, including representatives of the social partners, was followed by the adoption of Act No. 9931 of 2021 entitled “Reinforcing vocational training for employability, social inclusion and productivity with an eye to Industry 4.0 and future employment”. This Act incorporates employability as one of the substantive areas of action of the INA. However, the Committee notes that the Government does not provide any information on the impact of the measures implemented. The Committee therefore once again requests the Government to send detailed, up-to-date information, including statistical information disaggregated by age and sex, on the impact of the measures taken to promote dual education in terms of participants’ entry into the job market. The Committee also requests the Government to provide statistical information, disaggregated by age and sex, on the nature and impact of the measures taken or envisaged to coordinate vocational education and training policy with employment opportunities.

Youth employment and women’s employment. The Committee notes the Government’s indication that in 2022 a reform was undertaken of the National Employment Programme (PRONAE) in order to give priority in actions taken to young persons, women and other population groups most affected by unemployment, in order to boost employability. The Government indicates that in February 2023 assistance was received from the Inter-American Development Bank (IDB) to establish strategic and operational instruments to measure the impact of the Empléate programme in PRONAE. In addition, a new service was set up within PRONAE called Búsqueda Activa de Empleo (active jobseeking), for granting conditional monetary transfers to young persons and women actively seeking jobs. With regard to women’s employment, the Government indicates in general terms that the gender gap decreased between 2019 and 2022 as a result, inter alia, of training activities on gender equality, the improvement of economic conditions and advances in women’s political rights. However, the Committee notes that the Government does not provide any information on the outcome of the measures taken to promote employment for young persons and women. The Committee once again requests the Government to send detailed, up-to-date information on the impact of measures to promote youth employment and of those designed to promote women’s employment, including statistical information disaggregated by age and sex. The Committee also once again requests the Government to send information on the specific measures adopted to reduce gender-based horizontal and vertical occupational segregation and on the results achieved in this respect.

Persons with disabilities. The Committee notes the information in the Government’s report on the measures implemented to promote employment for persons with disabilities, such as the formulation of a strategic plan to accelerate the implementation of the 5 per cent recruitment quota for persons with disabilities in the public sector. Moreover, in 2019 the National Committee on Employability and Work for Persons with Disabilities, which monitors and supports the implementation of inclusive public policies concerning employability, employment and work for persons with disabilities, was established. The Committee notes that representatives of the social partners and persons with disabilities participate in this National Committee. Lastly, the Government indicates that 348 persons with disabilities entered the labour market thanks to business sector job placement or strategies promoted by the Ministry of Labour and Social Security (MTSS), exceeding the target established in the National Development and Public Investment Plan (PNDIP) 2019–22. The Committee requests the Government to provide detailed, up-to-date information, disaggregated by sex and age, on the impact of the employment measures, including reasonable adjustment measures and measures to implement the 5 per cent quota in the public sector, which have been adopted to help persons with disabilities to find sustainable and decent jobs in the regular employment market, and to remain in or return to employment.