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1. Articles 1 and 2 of the Convention. Coordination of employment policy with poverty reduction. The Committee notes the detailed information sent by the Government in August 2007 and the attached explanations provided in relation to the observation of 2006. The Government states that the employment component corresponds to one of the fundamental objectives of the “Economic and social revival programme”. In the context of the programme, job creation is boosted through the promotion of key sectors such as tourism, agriculture, forestry and manufacturing. Efforts are also being made to create a better climate for investment. The overall management of public sector actions to reduce poverty and achieve the Millennium Development Goals forms part of the “Guate Solidaria Rural” (Guatemalan rural solidarity) programme, according to the Planning and Programming Secretariat of the Presidency. The Government also mentions the support received from the United States Agency for International Development (USAID) for formulating public policies in favour of workers in the informal economy and migrant workers in Guatemala. In the preliminary proposal (May 2007) of the Decent Work Country Programme (DWCP), provision is made for the tripartite adoption and execution of a “National Plan for decent work and employment”. The Committee requests the Government to provide information in its next report on progress achieved by the implementation of the National Plan for decent work and employment in order to ensure that employment plays a central role in macroeconomic and social policies.

2. Article 2. Collection and use of information on employment. The Committee notes the detailed information collected by the Department of Employment and the National Institute of Statistics. The available data indicate that the employment situation remained stable since 2004. The Committee requests the Government, taking account of the results of its most recent surveys on employment and unemployment, to include information in its next report on the situation, level and trends of the labour market. The Committee hopes that the data collected will enable new measures to be determined which foster employment of those in the most vulnerable sectors (women, young persons, older workers, rural workers and workers in the informal economy).

3. Coordination of education and training policy with employment opportunities. The Committee notes with interest the information sent by the Technical Institute for Training and Productivity (INTECAP), whose strategic plan for 2006–10 considers aspects such as skill certification, strengthening of initial vocational training, support for administrative and quality processes in organizations, catering for vulnerable groups and strengthening human resources and institutional infrastructure. The Ministry of Education has provided a detailed report on the measures taken to improve the national curriculum, educational coverage, support for competitiveness, and other measures designed to improve schools and training for teachers. The Committee requests the Government to continue to supply information on the impact on the beneficiaries of plans and programmes of the Ministry of Education and INTECAP so that persons who have acquired the necessary training are able to gain access to decent jobs.

4. Export processing zones and impact of trade agreements. In reply to the observation of 2006, the Government has supplied detailed information through the Industrial Policy Directorate of the Ministry of Economic Affairs on employment generated in the export processing zones. Some 200 clothing factories occupy 90,335 workers. The Government also indicates that, in order to estimate the impact of employment generated by the United States and Central America Free Trade Agreement (CAFTA), the elasticity between growth in GDP and formal employment is being measured. The growth–employment elasticity of the agricultural and industrial sectors provides the estimate that a 1 per cent increase in GDP in those sectors would entail a 0.86 per cent reduction in employment in the agricultural sector and an increase of 2.19 per cent in the industrial sector. Some 700 formal jobs have been lost in the agricultural sector and around 4,400 additional jobs have been generated in the industrial sector in the first nine months that the CAFTA agreement has been in force. Observations from the Movement of Trade Unions, Indigenous Peoples and Peasant Farmers of Guatemala in defence of workers’ rights, which were sent to the Government in 2007, state that CAFTA has caused the loss of some 60,000 jobs in the first year that it has been in force. The trade union also refers to the resurgence of unemployment through the loss of jobs due to the destruction of national agriculture and of small and medium-sized enterprises. The Committee requests the Government to supply further information on the measures adopted for infrastructure development and its impact on job creation, and also on the contribution of export processing zones to the creation of lasting, high-quality employment and the impact of trade agreements on the labour market.

5. Article 3. Participation of the social partners. The Government reports on the work of the Tripartite Subcommittee on Employment Generation. Furthermore, in the preliminary document of the DWCP, the second priority is to strengthen the Government and the employers’ and workers’ organizations in the development of their capacities for the adoption and implementation of a National Plan for decent employment and work and to improve the quality and coverage of the services offered. The Committee emphasizes the fact that Article 3 of the Convention states that representatives of persons affected by the measures to be taken – and in particular representatives of employers and workers – shall be consulted with regard to 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 (see paragraph 493 of the General Survey of 2004 on employment promotion). In this regard, the Committee hopes that the next report will include more detailed information on the measures taken as a result of the tripartite consensus reached with regard to employment policy. The Committee trusts that the report will also include information on consultations held with respect to the formulation and implementation of measures to achieve the objectives of full productive employment established by the Convention, including information on consultations with all sectors concerned, such as representatives of the rural sector, the informal economy and the export processing sector.