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Article 2 of the Convention. Inclusion of labour clauses in public contracts. The Committee notes the information sent by the Government in reply to its previous comment, particularly concerning the connection between Executive Decree No. 11430-TSS of 30 April 1980 and Executive Directive No. 34 of 8 February 2002. It notes the Government’s indications that the latter does not depart from the terms of Executive Decree No. 11430-TSS but actually complements it. The Committee observes that, under the terms of the Executive Decree, public contracts must contain clauses explicitly requiring the bidder to comply with legal or “conventional” provisions regarding wages, hours of work, occupational health and safety and, more generally, conditions of employment which are not less favourable than those established for work of the same character in the same sector of activity and the same geographical area. It notes the report sent to the Ministry of Labour and Social Security by the legal service of the Office of the Comptroller-General of the Republic on 2 June 2010, which confirms that the expression “conventional provisions” means collective agreements.
The Committee recalls, however, that its previous comments referred to Executive Directive No. 34, which merely requires the inclusion in public contracts of a clause establishing the obligation of contractors to comply strictly with labour and social security obligations. While noting the Government’s indications that this Directive does not restrict the scope of Executive Decree No. 11430-TSS of 30 April 1980, the Committee considers that, in order to avoid any possible misunderstanding, to guarantee legal certainty and to ensure the full application of the Convention, the wording of the Directive should be aligned to that of the aforementioned Executive Decree. The Committee therefore hopes that the Government will take steps towards this end in the very near future and requests it to keep the Office informed of any developments in this respect.
The Committee further notes that, according to the abovementioned report of the legal service of the Office of the Comptroller-General of the Republic, it is rare for labour clauses to be included in public contracts in practice, even though there are no obstacles to their inclusion, but the omission of these clauses from public contracts makes no difference to the obligation of contractors to comply with the rights established by the social legislation. In this respect, the Committee has examined, by way of example, a public contract awarded in March 2009 by the National Insurance Institute, which contained clauses regarding the responsibility of the contractor to respect the obligations incumbent on him with regard to the social rights of his workers, in conformity with Executive Decree No. 11430-TSS. These clauses, however, did not contain any further details of the legal or “conventional” provisions which had to be observed with regard to wages and other conditions of work. As the Committee emphasized in its 2008 General Survey on labour clauses in public contracts (paragraph 128), the labour clause must be included as an integral part of the public contract signed by the selected contractor. The Committee therefore urges the Government to take the necessary steps to ensure the actual inclusion in all public contracts to which the Convention applies of clauses ensuring conditions of work to the workers involved in the execution thereof which are not less favourable than those established by national laws or regulations, collective agreement or, if applicable, arbitration awards for work of the same character in the same branch of activity, in conformity with Article 2(1) of the Convention. Furthermore, the terms of these labour clauses and any variations thereof must be determined by the competent national authority after consultation with the employers’ and workers’ organizations concerned, in accordance with Article 2(3) of the Convention.
Article 2, paragraph 1, of the Convention. Inclusion of labour clauses in public contracts. Further to its previous comments, the Committee notes with regret that the Government makes no reference to any progress made with regard to bringing its legislation into line with the provisions of the Convention. It regrets this in particular because in 2006 it supplied the additional explanations which the Government had requested with regard to Executive Directive No. 34 of 8 February 2002, as well as specific information on a possible formulation which would be in conformity with the Convention based on the draft Decree of 1980 drawn up following an ILO direct contacts mission that year. Noting that the situation remains practically unchanged since then, the Committee reiterates that clauses in public contracts which merely recall the applicability and binding nature of the national legislation, particularly with regard to wages, hours of work and other working conditions, are not sufficient to ensure conformity with the provisions of the Convention. The Committee refers to paragraph 44 of the General Survey of 2008 on labour clauses in public contracts, in which it emphasizes that the Convention seeks to ensure that public contracts are executed under conditions of labour which are not less favourable than those established by collective agreement, arbitration award or national laws or regulations for work of the same character in the trade or industry concerned in the region where the work is carried out. This obliges the contractor to apply the most advantageous pay rates, including overtime pay, and other working conditions, such as work hour limits and holiday entitlement, established in the industrial sector and geographical region in question.
The Committee attaches a copy of the Practical Guide prepared by the Office in September 2008, based principally on the conclusions of the abovementioned General Survey, which contains an analysis of national law and practice in this field and also legislative examples giving full effect to the requirements of the Convention. The Committee hopes that the Government will be able to draw on the information contained in both the General Survey and the Practical Guide and that it will soon be in a position to report on progress made in this area.
Finally, with regard to the comments of 17 May 2008 made by the Union of Workers of the Ministry of Finance and the National Customs Service (SITRAHSAN) – previously called the Union of Customs Workers – the Committee requests the Government to refer to its comments under the Protection of Wages Convention, 1949 (No. 95).
[The Government is asked to reply in detail to the present comments in 2010.]
The Committee notes the Government’s indication in its report that it wishes to be provided with further explanations on the reasons why Executive Directive No. 34 of 8 February 2002 is contrary to the Convention.
The Committee observes that, under the terms of Article 2 of the Convention, the public contracts to which the Convention applies shall include clauses ensuring to the workers concerned wages, hours of work and other conditions of labour which are not less favourable than the most favourable conditions established in accordance with one of the three formulae envisaged by the Convention, that is by collective agreement, by arbitration award or by national laws or regulations. The mere fact that the labour and social security legislation is applicable to workers engaged in the context of public contracts is not sufficient to give effect to the Convention. Accordingly, as the Committee already emphasized in its previous comment, Executive Directive No. 34 of 8 February 2002, the first paragraph of which is confined to requiring the inclusion of a clause establishing the obligation of the contracting enterprises to comply strictly with labour and social security obligations but does not provide that wages, etc. must be not less favourable than the most favourable conditions established in the three specified manners, is not in conformity with Article 2 of the Convention.
The inclusion of the clauses envisaged by the Convention ensures the protection of workers in cases in which the legislation only establishes minimum terms and conditions of employment but which minimum may be exceeded by general or sectoral collective agreements. Indeed, the fundamental objective of the Convention is to prevent social dumping resulting from the intense competition prevailing in the field of public tenders.
In its report, the Government also requests technical assistance for the formulation of provisions that are in accordance with the Convention. In this respect, the Committee recalls that the Government has already adopted a text on this subject, namely Decree No. 11430-TSS of 30 April 1980, following a direct contacts mission undertaken by a representative of the ILO Director-General. This Decree, which refers explicitly to the Convention and the adoption of which was noted with satisfaction by the Committee in an observation in 1981, provides that clauses should be included in public contracts explicitly requiring compliance by the tenderer with the legal provisions or those contained in collective agreements relating to wages, hours of work, occupational safety and health and, more generally, terms and conditions of employment which are not less favourable than those envisaged for work of the same nature performed in the same sector and the same geographical area. Following the adoption of this Decree, the Committee requested the Government, in a direct request in 1981, to indicate the manner in which the above terms and conditions of employment had been determined. In its report in 1982, the Government announced the establishment of a committee responsible for formulating the terms of labour clauses in collaboration with the employers’ and workers’ organizations concerned. However, since then, the Government has provided no further information on this subject and the Committee has therefore been bound to reiterate its request for information on numerous occasions.
The Committee therefore once again requests the Government to provide information on the labour clauses included in public contracts under the terms of Decree No. 11430-TSS of 30 April 1980, and to provide copies of public contracts containing such clauses. The Government is also requested to indicate whether the terms of these clauses were formulated after consultation of the employers’ and workers’ organizations concerned.
The Committee observes that the Government may once again avail itself of the assistance of the Office for appropriate technical assistance.
The Committee notes the information contained in the Government’s report in reply to its previous comments and the adoption of the General Act (No. 7762, of 2 April 1998) respecting the award of public works and public services contracts. The Committee notes Executive Directive No. 34, of 8 February 2002, and observes that it is not in conformity with Article 2 of the Convention, as its first paragraph only requires the entity issuing the contract to include a clause establishing the absolute obligation of contracting enterprises to comply strictly with labour and social security obligations, thereby distancing itself from the provisions of section 2 of Decree No. 11430-TSS, of 30 April 1980.
The Committee regrets to note that the Government has not provided any information on the clauses currently included in public contracts, nor has it provided a relevant sample of a public contract including such clauses. Moreover, it has not indicated whether the terms of the clauses were determined upon prior consultation with the organizations of employers and workers concerned. The Committee notes that it has been making requests to the Government for over 20 years in practically identical terms without ever having been provided with concrete and precise replies on the points raised. The Committee therefore urges the Government to provide the requested information and, as soon as possible, to take the necessary measures to bring national law and practice into full conformity with the provisions of the Convention.
The Committee also requests the Government to provide, in accordance with Article 6 and Part V of the report form, any information available on the application of the Convention in practice, including, for example, the measures adopted or envisaged to ensure the application of the Convention to subcontractors or assignees of contracts, possible exceptions to the application of the Convention, official reports or statistics on enforcement mechanisms (violations reported, sanctions imposed, etc.) and any other information concerning compliance with the conditions set out in the Convention.
The Committee notes that the Government’s report contains no reply to previous comments. It hopes that the next report will include full information on the matters raised in its previous direct request, which read as follows:
The Committee notes the detailed explanations of the protection of labour conditions in Costa Rica, provided in reply to its previous comments concerning the application of Article 2 of the Convention. The Committee recalls that the essential purpose of the Convention is to eliminate negative consequences of tendering for a public contract on the workers concerned by ensuring that, through the insertion of appropriate labour clauses in public contracts, the workers employed by a contractor enjoy wages and other conditions of labour which are not less favourable than those of other workers doing similar work. The Committee further recalls that, by virtue of sections 1 and 2 of Decree No. 11430-TSS of 30 April 1980, clauses should be included in all public contracts covered by this Convention and that such clauses should refer in an express manner the tenderer’s compliance with the legal and contractual standards relating to wages and other employment conditions, not less favourable than those established for work of the same nature. The Committee therefore asked the Government in its earlier comments whether the terms of clauses to be included in public contracts had been determined after consultation with the organizations of employers and workers concerned (Article 2(3)), and whether measures were taken to ensure that persons tendering for contracts are aware of such terms of clauses (Article 2(4)). The Committee notes that the Government’s report does not include information on these points, and indicates simply that the provisions of Decree No. 11430-TSS are complemented by the other labour legislation. The Committee asks the Government to supply information on the clauses actually included in public contracts by virtue of the provisions of the said Decree and to provide a specimen copy of the relevant part of a public contract including such clauses. It also asks the Government to indicate measures taken to make the requirements under this Decree known to persons tendering for public contracts.
The Committee notes the detailed explanations of the protection of labour conditions in Costa Rica, provided in reply to its previous comments concerning the application of Article 2 of the Convention.
The Committee recalls that the essential purpose of the Convention is to eliminate negative consequences of tendering for a public contract on the workers concerned by ensuring that, through the insertion of appropriate labour clauses in public contracts, the workers employed by a contractor enjoy wages and other conditions of labour which are not less favourable than those of other workers doing similar work.
The Committee further recalls that, by virtue of sections 1 and 2 of Decree No. 11430-TSS of 30 April 1980, clauses should be included in all public contracts covered by this Convention and that such clauses should refer in an express manner the tenderer’s compliance with the legal and contractual standards relating to wages and other employment conditions, not less favourable than those established for work of the same nature. The Committee therefore asked the Government in its earlier comments whether the terms of clauses to be included in public contracts had been determined after consultation with the organizations of employers and workers concerned (Article 2(3)), and whether measures were taken to ensure that persons tendering for contracts are aware of such terms of clauses (Article 2(4)).
The Committee notes that the Government’s report does not include information on these points, and indicates simply that the provisions of Decree No. 11430-TSS are complemented by the other labour legislation. The Committee asks the Government to supply information on the clauses actually included in public contracts by virtue of the provisions of the said Decree and to provide a specimen copy of the relevant part of a public contract including such clauses. It also asks the Government to indicate measures taken to make the requirements under this Decree known to persons tendering for public contracts.
The Committee notes that the Government’s report has not been received. It must therefore repeat its previous observation which read as follows:
The Committee notes the comments made by the Association of Customs Officers (ASEPA) in a communication dated 12 October 1995. It notes that, although the ASEPA mentions Convention No. 94 among others, there is no information in the communication that would allow the Committee to judge whether there has been any infringement of the provisions of the Convention. The Committee recalls that the Convention applies to public contracts which involve the employment of workers by the party other than the public authority (Article 1(1)(b)(ii) of the Convention), and that the employment contracts between a public authority and its employees are outside the scope of this Convention.
The Committee hopes the Government will make every effort to take the necessary action in the very near future.
The Committee notes that the Government’s report contains no reply to previous comments. It hopes that the next report will include full information on the matters raised in its previous direct request, which reads as follows:
The Committee notes that the Government’s report contains no reply to previous comments. It must therefore repeat its previous observation which reads as follows:
The Committee notes the comments made by Association of Customs Officers (ASEPA) in a communication dated 12 October 1995. It notes that, although the ASEPA mentions Convention No. 94 among others, there is no information in the communications that would allow the Committee to judge whether there has been any infringement of the provisions of the Convention. The Committee recalls that the Convention applies to public contracts which involve the employment of workers by the party other than the public authority (Article 1(1)(b)(ii) of the Convention), and that the employment contracts between a public authority and its employees are outside the scope of this Convention.
The Committee further recalls that, by virtue of sections 1 and 2 of Decree No. 11430-TSS of 30 April 1980, clauses should be included in all public contracts covered by this Convention and that such clauses should refer in an express manner the tenderer's compliance with the legal and contractual standards relating to wages and other employment conditions, not less favourable than those established for work of the same nature. The Committee therefore asked the Government in its earlier comments whether the terms of clauses to be included in public contracts had been determined after consultation with the organizations of employers and workers concerned (Article 2(3)), and whether measures were taken to ensure that persons tendering for contracts are aware of such terms of clauses (Article 2(4)).
The Committee notes that the Government's report does not include information on these points, and indicates simply that the provisions of Decree No. 11430-TSS are complemented by the other labour legislation. The Committee asks the Government to supply information on the clauses actually included in public contracts by virtue of the provisions of the said Decree and to provide a specimen copy of the relevant part of a public contract including such clauses. It also asks the Government to indicate measures taken to make the requirements under this Decree known to persons tendering for public contracts.
With reference to its previous comments, the Committee notes the explanations provided by the Government concerning the application of Article 2 of the Convention.
The Committee wishes to point out that by virtue of section 2 of Decree No. 11430-TSS, of 30 April 1980, clauses should be included in all public contracts covered by this Convention which ensure conditions of labour, including wages, which are not less favourable than those established for work of the same character in the trade or industry concerned in the same zone. The Committee requested the Government in 1981 to indicate in what manner the established conditions of employment which have to be complied with according to section 2 of the Decree and the terms of the clauses to be included in public contracts are determined, in what manner the organisations of employers and workers are consulted and how the terms of the clauses are made known to those responsible for complying with them.
The Committee wishes to point out once again that Article 2 of the Convention, and in consequence section 2 of the Decree, cannot be considered to be applied merely because they are in the same terms as the provisions of section 24 of the Labour Code, which sets out the clauses to be contained in individual contracts, nor because they are widely disseminated and applied in practice, nor because employers and workers are left free to establish by collective agreement the labour clauses that correspond to their interests.
The Committee therefore hopes that the Government will be able to inform it in the near future of the measures that have been adopted or are contemplated to give full effect to Article 2, paragraphs 2 and 3, of the Convention, taking into account the Committee's previous comments. In this connection, the Committee suggests that the Government might consider requesting technical assistance from the ILO in order to find an appropriate solution to the questions that are pending.
The Committee notes from the Government's latest report that the committee which was to have determined the terms of clauses to be included in contracts concluded by the public authorities, reached no final agreement. The Committee hopes that the Government will take all the necessary steps to give full effect to Article 2, paragraphs 3 and 4 of the Convention, which provide, respectively, that the terms of clauses to be included in public contracts shall be determined after consultation with the organisations of employers and workers concerned and that measures shall be taken to ensure that persons tendering for contracts are aware of the terms of the clauses.