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1. The Committee notes the Government's report for the period ending June 1994, which contains detailed information in reply to its previous observation and transmits the observations made by the Confederation of Turkish Trade Unions (TURK-IS) and the Turkish Confederation of Employers' Associations (TISK). The Committee notes that the period of rapid economic growth between 1992 and 1993 did not suffice to create enough jobs to absorb the growth in the active population and contain the rise in the unemployment rate which, according to the OECD, rose from 7.9 per cent in 1992 to 8.7 per cent in 1993. Furthermore, the beginning of the economic recession which, commencing at the end of 1993, resulted in a brutal fall in employment of around 4 per cent in 1994, with the OECD's standardized unemployment rate reaching 10.9 per cent and the rate of underemployment being estimated at 9.3 per cent. The Government further emphasizes in its report the particular significance of urban unemployment and the unemployment of young graduates. The Committee notes that the employment situation, which was already a cause for concern, worsened substantially over the reference period.

2. The Government states that, following a serious monetary crisis due to the worsening of the public deficit, it has been implementing a stabilization programme since April 1994 to reduce the deficit and introduce structural reforms with the view to promoting the medium-term growth of the economy based on free market principles. However, it recognizes that this programme is likely to have the effect at first of causing a recession in economic activity, but considers that the employment promotion policy is dependent on the effectiveness of the economy as a whole. The TISK also emphasizes that it is indispensable to establish, as planned under the Government's programme, a macroeconomic and institutional framework that is conducive to the development of the private sector, which creates employment. The Committee notes that the deterioration in the employment situation worsened during the first months of the implementation of the restrictive measures and requests the Government to indicate in its next report the manner in which, in its opinion, the implementation of stabilization and structural reform measures contributes, "in the framework of a coordinated economic and social policy", to the promotion "as a major goal" of full, productive and freely chosen employment, in accordance with Articles 1 and 2 of the Convention. It requests the Government to indicate the employment objectives that it has established in this context, as well as in the framework of the preparation of the next five-year development plan. Furthermore, the Committee would be grateful if the Government would indicate the expected impact on employment of the coming into force in the near future of the customs union with the European Union.

3. TURK-IS considers that the Government is ignoring the objectives set out in the Convention by pursuing a policy of privatization, which is resulting in massive redundancies. In reply to the Committee's previous request on this matter, the Government states that the Privatization Act provides for a separate indemnity for workers made redundant by public enterprises, who also benefit from priority access to employment and vocational training services, and that the Government is endeavouring to find the necessary resources for the creation of new employment opportunities for workers who are to be made redundant as a result of privatization. Noting this information, the Committee hopes that the Government's next report will contain more detailed information on the measures actually implemented for this purpose, as well as details on the number of beneficiaries of such measures. It recalls in this respect that it is essential for redundancies in the public sector to be accompanied by effective measures to promote the employment in the private sector of the workers made redundant as a result of privatization.

4. The Committee notes the information concerning the restructuring and modernization of the employment services. It requests the Government to continue to supply detailed information on the progress achieved in this respect. More generally, the Committee notes the emphasis placed by the Government on the need to train a skilled labour force by strengthening vocational training both within the school system and outside it. The Committee also notes the statement that the Employment Security Bill has been prepared in accordance with the provisions of the Termination of Employment Convention, 1982 (No. 158), which Turkey ratified recently. The Committee has no doubt that the Government will provide full information on this matter in its first report on the application of the above Convention.

5. With regard to the effect given to Article 3 of the Convention, the Government reports its plan to establish an Economic and Social Council, which will be of an advisory nature and enable the social partners to make known their opinion on matters such as productivity, employment, unemployment and wages. It also refers to the consultation committees envisaged under the 1946 Act establishing the Turkish Employment Office, and states that they have not been fully operational up to the present time. The Committee is bound to note the lack of information on the manner in which, in practice, the representatives of the persons affected, and in particular representatives of employers and workers, are currently consulted concerning employment policies. It is bound once again to emphasize the particular importance that attaches to such consultations being held in the context of the current structural reforms. It trusts that the Government will take the necessary measures in the very near future to give full effect to this fundamental provision of the Convention.