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1. Participation of the social partners in the formulation and application of policies. The Committee notes with interest the information provided in the Government’s report, received in August 2003, on the progress made in the framework of the Tripartite Employment Generation Subcommittee. In the context of the work of the Subcommittee, the Guatemala Social Security Institute (IGSS) provided statistical data on the formal labour market for the period 1997-2001. In the formal economy, there are only 928,000 workers registered with the IGSS, whereas the informal economy accounts for 2,300,000 rural workers and 1,600,000 own-account workers. With the assistance of the ILO, the Subcommittee decided upon themes and held tripartite workshops on employment policy approaches for the poverty reduction strategy in Guatemala. According to Government data, six out of every ten citizens are poor, seven out of every ten are in rural areas and three indigenous persons out of every four are poor or extremely poor. The employment generation proposals made by the Government envisage ILO technical assistance and financing from the Inter-American Development Bank for the training of the poor rural labour force, the strengthening of employment services and the implementation of a system of labour statistics. The Committee asks the Government to include in its next report information on the measures adopted for the implementation of an active employment policy within the meaning of the Convention as a result of the technical assistance provided by the ILO.

2. The Committee notes the comments made in August 2003 by the Trade Union Confederation of Guatemala (UNSITRAGUA) concerning the application of Convention No. 122, which were transmitted to the Government in October 2003. UNSITRAGUA expressed concern at the rise in both unemployment and the size of the informal economy. It maintains that the available work does not provide a real guarantee for workers, due to the fact that the level of wages is well below the level needed to meet the basic needs of workers and their families. The workers available are prepared to work under conditions which are much lower than the minimum levels established by national legislation.

3. The Committee recalls that Article 3 of the Convention requires the holding of consultations with representatives of all the persons affected, and particularly with representatives of employers and workers, for the formulation and adoption of employment policies. The Committee considers that it is the joint responsibility of governments and the representative organizations of employers and workers to ensure that representatives of the most vulnerable and marginalized groups of the active population are associated as closely as possible with the formulation and implementation of measures of which they should be the prime beneficiaries (paragraph 493 of the General Survey of 2004 on promoting employment). In this connection, the Committee would be grateful to be informed of the employment generation proposals made by the employer and worker representatives, and the measures implemented by the Government as a result of the agreements reached. In general, the Committee trusts that the Government will continue providing information on the consultations held with a view to the formulation and implementation of measures to achieve the objectives of full and productive employment set out in the Convention, including consultations with representatives of other categories of persons affected, such as those working in the rural sector, the informal economy and the export processing sector.

4. In a direct request, the Committee continues its examination of the application of the Convention in relation to: the formulation of economic and social policy; the coordination of education and training policies with prospective employment opportunities; the creation of employment in the export processing sector; and the impact on the local labour market of temporary or permanent international movements of migrant workers.