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The Committee notes the information supplied by the Government in its report.

It notes in particular that section 16 of the new Act on Confederation Employees, in its third paragraph, states that when labour relations are regulated by a collective labour agreement pursuant to section 38, the collective agreement shall regulate compensation for cost of living increases. If the parties fail to reach agreement on the amount of such compensation, the amount shall be set by the arbitration court. Furthermore, under section 38(3), the collective agreement shall provide for referral to arbitration, with the court of arbitration deciding the matter when the parties fail to agree on the amount of the compensation or on social coverage. The Committee asks the Government in its next report to explain whether the parties may decline to take the matter to the court of arbitration and resort directly to industrial action, or whether they must submit the dispute regarding cost of living increases to arbitration and are bound by that decision.

The Committee noted in an earlier report sent by the Government the statement that the various departments were being consulted about the draft ordinance on federal employees which was to allow employees of the federal administration to strike, with the exception of those employees in positions of authority or essential services. The Committee asks the Government to report on the status of the above consultations and to provide a copy of the ordinance as soon as it is adopted.