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The Committee notes the Government's report.

The Committee recalls its previous comments concerning the limit on the amount of annual wage supplements (AWS) in new enterprises stipulated in section 48(3) of the Employment Act as amended in 1988.

In this regard, the Government reiterates that it has never been its intention to restrict the areas for wage bargaining. The amendment to the Employment Act to limit the payment of the AWS to a one-month's wage was the result of a social contract made between the unions and employers as part of the tripartite consensus to introduce a more flexible wage system which would benefit companies, workers and the economy.

The Committee would ask the Government to reassure it that the variable bonus provided for in section 48(3) does not hinder the workers' organizations from the possibility to bargain annually the basic wages.