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Minimum Wage Fixing Convention, 1970 (No. 131) - Zambia (RATIFICATION: 1972)

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In order to provide a comprehensive view of the issues relating to the application of ratified Conventions on wages, the Committee considers it appropriate to examine Convention No. 131 (minimum wages), and Conventions Nos 95 and 173 (protection of wages) together. The Committee notes the observations of the International Trade Union Confederation (ITUC) on the application of Convention No. 131, received on 1 September 2019.

Legislative developments. The Committee notes the adoption of the Employment Code Act 2019, which repeals a number of pieces of legislation which previously gave effect to the Conventions on wages, including the Employment Act and the Minimum Wages and Conditions of Employment Act.

Minimum wage

Article 1(1) of Convention No. 131. Coverage of the minimum wage system. Further to its previous comments, the Committee notes the information provided by the Government in its report, including the adoption in 2018 of amendments to the statutory orders fixing the minimum wage rates. Moreover, the Committee previously noted the Government’s indication that workers in the informal economy were not covered by minimum wage protection; in view of the large proportion of workers in that sector, the Committee requested the Government to take the necessary measures to extend the protection to such workers. In this respect, the Committee notes that the Employment Code Act 2019, like the repealed Employment Act, is potentially broad enough to cover workers in the informal economy.

Articles 3 and 4. Criteria for the determination of minimum wages. Operation of the minimum wage fixing machinery. Further to its previous comments, the Committee notes that the Employment Code Act 2019 establishes a new system for fixing and adjusting minimum wage rates. It notes in particular that the Labour Advisory Committee has the mandate to: (i) inquire into the wages and conditions of employment in any undertaking or sector in order to recommend minimum wages and conditions of employment; and (ii) review at least every two years and make recommendations to the Minister on the minimum wages and conditions of employment for any group of employees. The Committee also notes that the Government reiterates that the consumer price index is taken into account for the determination of the minimum wage levels. The Committee notes that the ITUC considers that, despite their revision in 2018, minimum wages in Zambia remain widely inadequate to meet the needs of workers and their families. The Committee requests the Government to provide its comments on the ITUC observations. It further requests the Government to provide information regarding the work of the Labour Advisory Committee in the context of the next examination of the minimum wage rates, including on the criteria taken into account when making recommendations to the Minister on the minimum wage levels.

Article 5. Enforcement. Informal economy. The Committee previously noted the Government’s indication that workers in the informal sector are not covered by minimum wage protection, and requested the Government to take the necessary measures to extend that protection to workers in the informal economy. While noting that the Government refers in its reply to the provisions of Part X of the Employment Code Act 2019 on the labour inspectorate and those on sanctions and redress, the Committee observes that legislative measures do not suffice to guarantee protection and that their application in practice is essential in this regard. The Committee requests the Government to take the necessary measures to ensure the effective application of minimum wage orders, including in the informal economy, and to provide information in this regard, including on labour inspection activities and other enforcement measures.

Protection of wages

Article 2 of Convention No. 95. Protection of wages of all persons to whom wages are paid or payable. The Committee notes that the Employment Code Act 2019 is the main legislation implementing the Convention. section 2 of the Act excludes from its application various categories of workers, including the Defence Force, the Police and Correctional Services and the Security Intelligence Service. Moreover, it provides that additional exclusions may be made by statutory instrument, after consultation with the Tripartite Consultative Labour Council. The Committee recalls that the Convention applies to all persons to whom wages are paid or payable. The Committee requests the Government to indicate how effect is given to the Convention for the categories of workers excluded from the scope of the Employment Code Act 2019.

Article 7(2). Works stores. Further to its previous comments, the Committee notes the Government’s reference to section 70(2) of the Employment Code Act 2019, which provides that employers may establish a shop for the sale of provisions to employees and that an employee shall not be compelled to purchase provisions at that shop, thereby giving effect to Article 7(1). The Committee recalls, however, that Article 7(2) provides that, where works stores for the sale of commodities to the workers are established or services are operated in connection with an undertaking, and access to other stores or services is not possible, the competent authority shall take appropriate measures with the object of ensuring that goods are sold and services provided at fair and reasonable prices, or that stores established and services operated by the employer are not operated for the purpose of securing a profit but for the benefit of the workers concerned. The Committee is bound to reiterate its request to the Government to indicate the measures taken to ensure compliance with this provision of the Convention.

Article 8(1). Deductions from wages. Further to its previous request, the Committee notes the Government’s reference to section 68 of the Employment Code Act 2019, which sets out the types of deductions from wages that are permitted. The Committee observes, however, that the Employment Code Act 2019 does not set out limits to those deductions. Recalling that, according to Article 8(1), deductions from wages shall be permitted only under conditions and to the extent prescribed by national laws or regulations or fixed by collective agreement or arbitration award, the Committee requests the Government to take the necessary measures to establish limits to the amount of deductions authorized under section 68 of the Employment Code Act 2019.

Article 12. Regular payment of wages. The Committee has noted for many years recurrent difficulties with regard to wage arrears in the country, including but not limited to workers in the public sector. It requested the Government to provide detailed information regarding the amount of wage arrears, the number of workers affected, and the sectors of economic activity, if any, affected by irregular payment of wages. While noting the information provided by the Government on the relevant provisions of the Employment Code Act 2019, the Committee recalls that legislative conformity in itself does not guarantee compliance with the Convention. The Committee therefore requests the Government to provide information on the measures taken or envisaged to address situations of wage arrears in the country.

Article 14(b). Wage statements. Further to its previous request, the Committee notes that the Government refers to section 72 of the Employment Code Act 2019, which provides for the obligation of the employer to explain to the employee, before they commence employment or when changes in the nature of the employment take place, the rate of wages and conditions relating to the payment of the wages. The Committee requests the Government to indicate the measures taken to ensure that workers are also informed, in an appropriate and easily understandable manner, at the time of each payment of wages, of the particulars of their wages for the pay period concerned, in accordance with Article 14(b) of the Convention.

Protection of Workers’ Claims (Employer’s Insolvency)

Articles 5, 6 and 8 of Convention No. 173. Application to business rescue proceedings. With regard to business rescue proceedings under the Corporate Insolvency Act 2017, the Committee previously noted that the Act does not indicate whether wage claims prior to the commencement of the business rescue proceedings benefit from a privilege (Article 5), and that subsequently, the Act does not regulate the coverage (Article 6) and rank of such privilege (Article 8). In the absence of new information in response to its previous request in this regard, the Committee requests once again the Government to take the necessary measures to ensure that the protection of workers’ claims by means of a privilege is extended to business rescue proceedings. It requests the Government to provide information in this regard.

Article 8(1). Rank of privilege in situations of winding-up and receivership. The Committee notes that the Government does not respond to its previous comments concerning sections 8 and 127(2) of the Corporate Insolvency Act 2017, pursuant to which workers’ claims have a lower rank of privilege attached to them than state claims, in the context of winding-up and receivership. The Committee recalls that, in accordance with Article 8(1), national laws or regulations shall give workers’ claims a higher rank of privilege than most other privileged claims, and in particular those of the State and the social security system. The Committee therefore requests once again the Government to take the necessary measures in order to ensure full compliance with Article 8(1) and to provide information in this regard.

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Article 4(2) of the Convention. Consultation with employers’ and workers’ organizations in the operation of the minimum wage fixing machinery. For many years, the Committee has been referring to the need to revise section 3(1) of the Minimum Wages and Conditions of Employment Act (MWA) which only provided for consultations with trade unions in the process of determining the minimum wage. The Committee notes with satisfaction that with the adoption of the Employment Code Act 2019, which repealed the MWA, minimum wage rates may be fixed by statutory order after consultation with the tripartite Labour Advisory Committee (section 106 of the new Act). The Labour Advisory Committee has the mandate to inquire into wages and conditions of employment in order to make recommendations and to review minimum wage rates at least every two years (section 101 of the new Act).

The Committee is raising other matters on the application of ratified wages Conventions in a request addressed directly to the Government.

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In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on wages, the Committee considers it appropriate to examine Convention No. 131 (Minimum Wage Fixing) and Conventions No. 95 and No. 173 (Protection of Wages) in a single comment.

Minimum Wage Fixing Convention, 1970 (No. 131)

Article 1(1) of the Convention. Coverage of all groups of wage earners. The Committee notes that the Minimum Wages and Conditions of Employment (General) Order 2011, as amended in 2012, excludes from its scope of application employees of the Government and local authorities and employees in management positions. It notes in addition that the Minimum Wages and Conditions of Employment (Shop Workers) Order 2011, as amended in 2012, excludes from its application certain categories of workers (such as persons employed in the motor trade industry or the petroleum industry, in the running of coffee stores, in the sale of agricultural produce, in bread making, in the reception, storage and treatment of fish, meat, poultry, game, fruit and other perishable foodstuff, etc.). The Committee recalls that Article 1(1) undertakes to establish a system of minimum wage which covers all groups of wage earners whose terms of employment are such that coverage would be appropriate. The Committee therefore requests the Government to provide information regarding the application of the Convention to the categories of workers excluded from the application of the statutory instruments mentioned above.

Article 3. Criteria for determination of minimum wages. The Committee notes that the Government refers to the consumer price index as the criteria used for the determination of the level of the minimum wage. It also notes the Government’s reference to the ongoing reform of the labour legislation, and in particular that section 124(2) of the draft Labour Code 2017 provides that in making recommendations about the minimum wage to the Ministry of Labour and Social Welfare, the Labour Advisory Committee shall take into consideration both the needs of the workers and their families and economic factors. The Committee notes that these criteria would correspond to those set out in Article 3. The Committee therefore requests the Government to provide information on the progress made in the revision of the labour legislation.

Article 5. Enforcement. Informal economy. The Committee notes that the Government indicates that workers in the informal sector are not covered by minimum wage protection. It also notes that according to the Labour Force Survey of 2014 published by the Central Statistical Office of the Ministry of Labour and Social Security, the informal sector accounted for 83.9 per cent of the total employed population. The Committee wished to draw the Government’s attention to the Transition from the Informal to the Formal Economy Recommendation, 2015 (No. 204) which provides that through the transition to the formal economy, Members should progressively extend, in law and practice, to all workers in the informal economy, social security, maternity protection, decent working conditions and a minimum wage (paragraph 18). Noting that a substantial percentage of the workforce operates in the informal sector in Zambia, the Committee requests Government to take the necessary measures to extend the protection afforded by the national minimum wage system to workers in the informal economy.

Protection of Wages

Protection of Wages Convention, 1949 (No. 95)

Article 7(2) of the Convention. Works stores. The Committee notes that the Government’s report does not provide information on the application of Article 7(2) which provides that, where works stores for the sale of commodities to the workers are established or services are operated in connection with an undertaking, and access to other stores or services is not possible, the competent authority shall take appropriate measures with the object of ensuring that goods are sold and services provided at fair and reasonable prices, or that stores established and services operated by the employer are not operated for the purpose of securing a profit but for the benefit of the workers concerned. The Committee therefore requests the Government to indicate the measures taken to ensure compliance with this provision of the Convention.

Article 8(1). Deductions from wages. The Committee notes that section 45 of the Employment Act lists the authorized wage deductions. However, there appears to be no provision limiting the overall amount of deductions, whereas according to Article 8(1), the extent of authorized deductions from wages shall be prescribed by national laws or regulations or fixed by collective agreement or arbitration award. In this respect, the Committee wishes to draw the attention of the Government to paragraph 296 of its 2003 General Survey on the protection of wages. The Committee requests the Government to indicate the measures taken to ensure compliance with this provision of the Convention.

Article 14(b). Wage statements. The Committee notes that section 51 of the Employment Act establishes the obligation to provide the employee with information on wages at the commencement of the employment relationship or when changes in the nature of such employment take place. However, the Committee notes that the Employment Act does not contain provisions providing for the issuance of a wage statement to the worker at the time of each payment of wages. The Committee recalls that Article 14(b) establishes that effective measures must be taken, where necessary, to ensure that workers are informed in an appropriate and easily understandable manner at the time of each payment of wages, of the particulars of their wages for the period concerned, in so far as such particulars may be subject to change. The Committee requests the Government to specify how this provision is applied in law or in practice (for example, by means of payslips).

Protection of Workers’ Claims (Employers’ Insolvency Convention), 1992 (No. 173)

Articles 5, 6 and 8 of the Convention. Application to business rescue proceedings. The Committee notes the adoption of the Corporate Insolvency Act, No. 9 of 2017 and of the new Companies Act, No. 10 of 2017. It further notes that the Corporate Insolvency Act provides for the possibility of initiating business rescue proceeding which, according to section 2(1) of this Act, is the process of facilitating the rehabilitation of a company that is financially distressed. The Committee also notes that the legislation does not indicate whether wage claims prior to the commencement of the business rescue plan benefit from a privilege, and subsequently does not regulate the coverage and rank of such privilege. The Committee recalls that the Convention requires that workers’ claims arising out of their employment shall be protected by a privilege (Article 5), that such privilege shall cover wages due at least three months before the insolvency or termination of contract, claims for holiday pay, other types of paid absence and severance pay (Article 6) and that these claims shall have a higher rank of privilege than most other privilege claims, in particular those of the State and the social security system (Article 8). The Committee therefore requests the Government to take the necessary measures in order to ensure the application of these provisions of the Convention to business rescue proceedings.

Article 8(1). Rank of privilege in situations of winding-up and receivership. The Committee notes that section 127(2) of the Corporate Insolvency Act provides that amounts owed to an employee shall be paid after claims related to taxes and Government rent; this constitutes a downgrading of the rank of the privilege attached to employees’ claims in the event of winding up of a company vis-à-vis State’s claims, compared to previous legislation. Moreover, according to section 8 of the Insolvency Act, the same provision applies by extension to receivership. Recalling that Article 8(1) requires workers’ claims to have a higher rank of privilege than the claims of the State, the Committee notes that, as a consequence of the recent legislative change, national legislation is no longer in conformity with this Article. The Committee therefore requests the Government to adopt the necessary measures in order to restore compliance with this provision of the Convention.

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In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on wages, the Committee considers it appropriate to examine Convention No. 131 (minimum wage-fixing) and Convention No. 95 (protection of wages) in a single comment.

Minimum Wage Fixing Convention, 1970 (No. 131)

Article 4(2) and (3) of the Convention. Consultation with and direct participation of employers’ and workers’ organizations in the minimum wage fixing system. The Committee notes that, in reply to the issues previously raised by the Zambia Federation of Employers (ZFE) and the International Organisation of Employers (IOE) regarding the lack of consultations with employers’ organizations in the process of adjusting the minimum wage, the Government indicates in its report that consultations with representative organizations of employers and workers take place through the Tripartite Consultative Labour Council (TCLC) established under the Industrial and Labour Relations Act. The Government also indicates that the concerns previously raised by the Committee in relation to section 3(1) of the Minimum Wages and Conditions of Employment Act which only provides for consultations with trade unions in the process of determining the minimum wage will be addressed in the context of the ongoing labour law reform. In particular, the Government makes reference to the draft Labour Code which would revise and consolidate various Acts including the Minimum Wage and Conditions of Employment Act. The proposed Labour Code would establish a Labour Advisory Committee, as an ad hoc committee of the TCLC, with a mandate to enquire into the wages and conditions of employment in any sector and to make recommendations to the Minister of Labour and Social Security on minimum wages and conditions of employment. The Committee also notes the Government’s indication that the labour law reform is carried out in consultation with social partners. The Committee hopes that, in finalizing the draft legislation in full consultation with representative organizations of employers and workers, the Government will take into account its comments and requests it to provide information on any progress made in this respect. It also requests the Government to ensure full consultation with and, as appropriate, direct participation of employers’ and workers’ organizations in the next revision of the minimum wage rates.

Protection of Wages Convention, 1949 (No. 95)

Article 12 of the Convention. Regular payment of wages. With regard to its previous comments requesting a detailed account on the problems of non-payment or delayed payment of wages encountered in the country, the Committee notes the Government’s indication that no information on this matter was available at the time of the submission of its report. The Committee is therefore bound to reiterate its request that the Government provide detailed information regarding the amount of wage arrears and the number of workers affected and to indicate which sectors of economic activity, if any, are affected by irregular payment of wages.

The Committee is raising other matters relating to the application of the Conventions on wages in a request addressed directly to the Government.

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Articles 3 and 4 of the Convention. Minimum wage fixing machinery. Consultations with the social partners. The Committee notes that the Minimum Wages and Conditions of Employment (Amendment) Orders of 2012, Statutory Instruments Nos 45, 46 and 47, increased the minimum wage rates for different categories of workers, including shop workers and domestic workers. The Committee wishes to recall, however, that under section 3(1) of the Minimum Wages and Conditions of Employment Act (Cap. 276), the Minister of Labour and Social Security prescribes wage rates after consultation with the relevant trade unions only, while no provision is made for consultations with employers’ organizations. In this connection, the Committee notes the comments made by the Zambia Federation of Employers (ZFE) and the International Organisation of Employers (IOE), which were received on 4 July 2013 and transmitted to the Government on 11 September 2013. The ZFE and the IOE expressed their deep concern about the fact that the Government increased the minimum wage for general workers and domestic workers by over 50 per cent without consulting the stakeholders. They also indicated that the business community through the ZFE took the Government to court, which ruled that the Government needed to consult stakeholders and in particular employers before implementing the minimum wage. In its latest report, the Government indicates that the minimum wage legislation is under review and that, in order to set up a more inclusive and sustainable wage-fixing mechanism, the establishment of a sector-based minimum wage system is currently being considered. The Committee wishes to emphasize that holding genuine and effective consultations with both social partners at all stages of the minimum wage fixing process is a fundamental requirement of this Convention and goes to the very heart of its scope and purpose. The Committee accordingly asks the Government to ensure that representative organizations of employers and workers are fully consulted on the ongoing law reform process and that, once adopted, the new minimum wage legislation will make clear provision for full consultations with and the direct participation of, employers’ and workers’ organizations in the process of determination and periodical adjustment of minimum wage rates. The Committee also requests the Government to transmit any comments it may wish to make in reply to the observations of the ZFE and the IOE.

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The Committee notes that the Government’s report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request, which read as follows:

Repetition
Articles 1(1) and 2(2) of the Convention. Minimum wages fixed by statute or through collective bargaining. The Committee notes the adoption of the Minimum Wage and Conditions of Employment Orders, 2011, Statutory Instruments Nos 1, 2 and 3. The Committee would be grateful if the Government would provide additional information on the approximate number of workers whose wages are fixed through collective bargaining or, alternatively, by the statutory instruments referred to above.
Article 3. Criteria for fixing and adjusting minimum wages. The Committee notes the Government’s statement that, at the time the statutory instruments were issued, the minimum wage levels were adequate to provide a decent standard of living, but their value has eroded over time. In this connection, the Committee once again requests the Government to explain how the workers’ needs are taken into account, as required under this Article of the Convention, when the statutory minimum wages are revised.
Article 4(2) and (3). Consultations with the social partners. The Committee has been commenting for many years on the need to amend section 3(1) of the Minimum Wages and Conditions of Employment Act (Cap. 276), which requires consultation only with a trade union before an order could be prescribed. The Government has indicated in earlier reports that necessary action would be taken to bring the Minimum Wages and Conditions of Employment Act into line with the requirements of the Convention, i.e. full consultation not only with the workers’ unions but also the employers’ organizations. The Committee once more expresses the hope that the Government will take appropriate steps without further delay in order to align the national legislation with established practice and requests the Government to keep the Office informed of any progress made in this respect.
Article 5 and Part V of the report form. The Committee notes the Government’s indication that it is planning to undertake a comprehensive wages survey. It requests the Government to keep the Office informed of any progress made in this regard and to transmit a copy once the survey has been finalized. It also asks the Government to continue to provide up-to-date and documented information on the practical application of the Convention including, for instance, the estimated number of workers remunerated at the minimum wage level, extracts from reports of the labour inspection services showing the number and nature of contraventions of the relevant legislation and the sanctions imposed, copies of collective agreements, etc.

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Articles 1(1) and 2(2) of the Convention. Minimum wages fixed by statute or through collective bargaining. The Committee notes the information contained in the Government’s report and the attached documents, in particular the Minimum Wages and Conditions of Employment (General) Order, 2006 and the Minimum Wages and Conditions of Employment (Shop Workers) Order, 2006, which set minimum pay rates for non-unionized workers, as well as the copies of certain collective agreements establishing minimum wages at the branch or enterprise level. The Committee would be grateful if the Government would provide additional information on the categories and the approximate number of workers whose wages are fixed through collective bargaining or, alternatively, by the two statutory instruments referred to above.

Article 3. Criteria for fixing and adjusting minimum wages. The Committee notes the Government’s statement that, at the time the statutory instruments were issued, the minimum wage levels were adequate to provide a decent standard of living, but their value has eroded over time. In this connection, the Committee once again requests the Government to explain how the workers’ needs are taken into account, as required under this Article of the Convention, when the statutory minimum wages are revised.

Article 4(2), (3). Consultations with the social partners. The Committee has been commenting for many years on the need to amend section 3(1) of the Minimum Wages and Conditions of Employment Act (Cap. 276), which requires consultation only with a trade union before an order could be prescribed. The Government has indicated in earlier reports that necessary action would be taken to bring the Minimum Wages and Conditions of Employment Act into line with the requirements of the Convention, i.e. full consultation not only with the workers’ unions but also the employers’ organizations. The Committee once more expresses the hope that the Government will take appropriate steps without further delay in order to align the national legislation with established practice and requests the Government to keep the Office informed of any progress made in this respect.

Article 5 and Part V of the report form. The Committee notes the Government’s indication that it is planning to undertake a comprehensive wages survey. It requests the Government to keep the Office informed of any progress made in this regard and to transmit a copy once the survey has been finalized. It also asks the Government to continue to provide up to date and documented information on the practical application of the Convention including, for instance, the estimated number of workers remunerated at the minimum wage level, extracts from reports of the labour inspection services showing the number and nature of contraventions of the relevant legislation and the sanctions imposed, copies of collective agreements, etc.

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The Committee notes that the two statutory instruments fixing minimum wage rates, i.e. the Minimum Wages and Conditions of Employment (General) Order, 2002 and the Minimum Wages and Conditions of Employment (Shop Workers) Order, 2002 are being revised, especially in respect of redundancy and retirement benefits. The Committee would appreciate receiving copies of the revised instruments as soon as they are adopted.

Article 2, paragraph 2, of the Convention. The Committee notes that the minimum wage legislation applies to employees whose wages and conditions of employment are not regulated by collective agreement. The Committee would be grateful if the Government would supply more detailed information on the categories and number of workers whose wages are fixed through collective bargaining, as well as copies of any such collective agreements currently in effect.

Article 3. The Committee requests the Government to indicate how it is ensured in law and practice that social considerations such as the needs of workers and their families are sufficiently taken into account in reviewing and readjusting minimum wage levels from time to time, as required under this Article of the Convention.

Article 4, paragraphs 2 and 3. The Committee notes with regret that the Government is still not in position to report any progress concerning the amendment of the Minimum Wages and Conditions of Employment Act (Cap. 276) on which the Committee has been commenting for a number of years. The Government has given reassurances on many occasions that its legislation would be aligned with established practice so as to ensure the full consultation not only of workers’ unions but also of employers’ representative organizations in the process of minimum wage fixing. The Committee therefore asks the Government to take appropriate action without further delay and keep it informed of any concrete measures taken in this regard.

Article 5 and Part V of the report form. The Committee requests the Government to provide up-to-date information on the manner in which the Convention is applied in practice, including, for instance, extracts from inspection reports indicating the number of violations observed and the penalties imposed, the estimated number of workers earning the minimum wage, practical indications as to whether the minimum wage in force is adequate to provide workers and their families with a decent standard of living, etc.

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The Committee notes the information contained in the Government’s report. It notes in particular that the two statutory instruments fixing minimum wage rates, i.e. the Minimum Wages and Conditions of Employment (General) Order, 2002 and the Minimum Wages and Conditions of Employment (Shop Workers) Order, 2002 are being revised, especially in respect of redundancy and retirement benefits. The Committee would appreciate receiving copies of the revised instruments as soon as they are adopted.

Article 4, paragraphs 2 and 3. The Committee notes with regret that the Government is still not in position to report any progress concerning the amendment of the Minimum Wages and Conditions of Employment Act (Cap. 276) on which the Committee has been commenting for a number of years. The Government has given reassurances on many occasions that its legislation would be aligned with established practice so as to ensure the full consultation not only of workers’ unions but also of employers’ representative organizations in the process of minimum wage fixing. The Committee therefore asks the Government to take appropriate action without further delay and keep it informed of any concrete measures taken in this regard.

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The Committee notes the information contained in the Government’s report. It notes in particular the adoption of the Minimum Wages and Conditions of Employment (General) Order, 2002, and the Minimum Wages and Conditions of Employment (Shop Workers) Order, 2002, revising the hourly and monthly wage rates applicable to most shop workers and to all employees with the exception of domestic workers, government or municipal employees and employees whose wages and conditions of employment are regulated by collective agreement.

Article 4, paragraphs 2 and 3, of the Convention. For many years, the Committee has been drawing attention to the need to amend section 3(1) of the Minimum Wages and Conditions of Employment Act (Cap. 276) in order to make provision for full consultations not only with the workers’ unions but also the employers’ organizations. In its previous reports, the Government has often stated that appropriate legislative action would soon be taken even though, as a matter of practice, employers’ and workers’ representatives had always been equally involved in the determination of minimum wages. The Committee once again asks the Government to take the necessary action without further delay in order to align the national legislation with established practice, as described by the Government, and thus with the requirements of the Convention regarding the full consultation and direct participation of both employers’ and workers’ representative organizations in the process of minimum wage fixing. The Committee requests the Government to keep it informed of any new developments in this regard.

Article 5 and Part V of the report form. The Committee would appreciate if the Government could continue providing up-to-date and detailed information regarding the application of the Convention in practice, including for instance, statistics on the number of workers covered by relevant legislation, extracts from labour inspection reports indicating the number of violations of minimum wage provisions and the penalties imposed, the minimum wage rates applicable to workers excluded from the coverage of the two statutory instruments referred to above (e.g. domestic workers, persons employed in the petroleum industry, coffee stores, bakeries, milk or grocery shops, newspapers, etc.), available data on the evolution of minimum wage rates in recent years as compared to the evolution of indicators, such as the inflation rate, in the same period or of minimum rates of pay established through collective bargaining, as well as any other particulars bearing on the functioning of the minimum wage fixing machinery.

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The Committee notes the information provided in the Government’s report. It notes in particular the adoption of the Minimum Wages and Conditions of Employment (General) Order, 1997 (S.I. No. 119 of 1997), and the Minimum Wages and Conditions of Employment (Shop Workers) Order, 1997 (S.I. No. 120 of 1997), covering such employees whose wages and conditions of employment are not regulated by any collective agreements. The Committee also notes the Government’s statement to the effect that employers’ and workers’ representatives fully participated in the revision of the wage rates contained in the two orders and that similar consultations will be held in the process of further revising these two instruments.

Article 4, paragraphs 2 and 3, of the Convention. The Committee notes the Government’s statement that preparations are under way to amend section 3(1) of the Minimum Wages and Conditions of Employment Act in order to include employers’ representatives in the consultation process. While noting the Government’s indication that in practice employers are consulted before any statutory orders on minimum wages are prescribed, the Committee hopes that the Government will not fail to take the necessary steps in order to bring the legislation into conformity with the Convention on this point on which it has been commenting for many years. The Committee asks the Government to report on any positive developments in this regard.

Part V of the report form. The Committee requests the Government to continue to provide detailed and up-to-date information on the manner in which the Convention is applied in practice, including, for instance, the minimum wage rates in force, available data on the number and different categories of workers covered by minimum wage provisions, inspection reports indicating the number of violations observed and the penalties imposed, and any other particulars concerning the fulfilment of the practical conditions prescribed by the Convention.

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The Committee notes the information provided in the Government’s report. It notes in particular the adoption of the Minimum Wages and Conditions of Employment (General) Order, 1997 (S.I. No. 119 of 1997), and the Minimum Wages and Conditions of Employment (Shop Workers) Order, 1997 (S.I. No. 120 of 1997), covering such employees whose wages and conditions of employment are not regulated by any collective agreements. The Committee also notes the Government’s statement to the effect that employers’ and workers’ representatives fully participated in the revision of the wage rates contained in the two orders and that similar consultations will be held in the process of further revising these two instruments.

Article 4, paragraphs 2 and 3, of the Convention. The Committee notes the Government’s statement that preparations are under way to amend section 3(1) of the Minimum Wages and Conditions of Employment Act in order to include employers’ representatives in the consultation process. While noting the Government’s indication that in practice employers are consulted before any statutory orders on minimum wages are prescribed, the Committee hopes that the Government will not fail to take the necessary steps in order to bring the legislation into conformity with the Convention on this point on which it has been commenting for many years. The Committee asks the Government to report on any positive developments in this regard.

Part V of the report form. The Committee requests the Government to continue to provide detailed and up-to-date information on the manner in which the Convention is applied in practice, including, for instance, the minimum wage rates in force, available data on the number and different categories of workers covered by minimum wage provisions, inspection reports indicating the number of violations observed and the penalties imposed, and any other particulars concerning the fulfilment of the practical conditions prescribed by the Convention.

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The Committee notes the information provided in the Government's report in reply to its previous comments.

Article 1, paragraph 2, of the Convention, in conjunction with Article 4, paragraphs 2 and 3. The Committee notes the Government's indication to the effect that, notwithstanding the provisions in section 3(1) of the Minimum Wages and Conditions of Employment Act, which requires consultation only with a trade union before an order could be prescribed, recognition has been taken pursuant to the provisions of section 83 of the Industrial and Labour Relations Act to consult with both workers and employers representative bodies before the Minister can prescribe the minimum wages and conditions of employment. According to the Government, arrangements are on hand to specify employers' organization in the Act, to fortify policy and practice currently provided on the matter.

The Committee wishes to refer to paragraph 76 of its 1992 General Survey on minimum wages drawing attention to the provisions of the Convention that require ratifying States to determine the groups of wage-earners to be covered "in agreement or after full consultation" with the organizations concerned, where they exist. The obligation for ratifying States to consult extends also to the establishment, application and modification of minimum wage fixing machinery.

The Committee therefore requests the Government to provide further information as regards the full consultation of employers' and workers' organizations in the determination and revision of particular or general statutory orders on minimum wages and conditions of employment (e.g. the sectors of activity and groups of workers concerned, the employers' and workers' organizations that have been consulted, the consultation process, etc.). It hopes that the Government will: (i) take immediate action in order to bring section 3(1) of the Minimum Wages and Conditions of Employment Act into conformity with the provisions of the Convention, i.e. as concerns full consultation not only with the workers' unions, but also the employers' organizations; and (ii) provide a copy the new version of section 3(1) thereof as soon as it is adopted.

Article 2, paragraph 1, in conjunction with Article 5 and point V of the report form. The Committee requests the Government to continue to provide general information on the application of the Convention in practice, including: (i) the minimum wage rates in force; (ii) the available data on the number and different categories of workers covered by minimum wage provisions; and (iii) the results of inspections carried out (e.g. the number of violations of minimum wage provisions, the penalties imposed, etc.).

[The Government is asked to report in detail in 2000.]

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The Committee takes note of the information supplied by the Government in its report, and particularly of the Minimum Wages and Conditions of Employment (General) Order of 1992 and the Minimum Wages and Conditions of Employment (Shop Workers) Order, 1992.

Article 1, paragraph 2, and Article 4, paragraphs 2 and 3, of the Convention. The Committee notes the Government's statement that action will be taken to align section 3(1) of the Minimum Wages and Conditions of Employment Act (Act No. 25 of 1982) with the requirements of the Convention, i.e. full consultation not only with the workers' unions but also the employers' organizations. The Government also indicates that, in practice, both employers' and workers' representatives are already involved in the determination of minimim wages.

With regard to the role of the Prices and Incomes Commission in the determination of minimum wages, the Government indicates that Orders made under section 3 of the above-mentioned Act are made on the basis of recommendations of its wages committee, composed of representatives of the Government, employers and trade unions.

The Committee hopes that the provision of section 3(1) of the said Act will soon be brought into line with the practice as described above by the Government, and thus with the requirement of the Convention regarding the full consultation with both employers' and workers' representative organizations. It would also be grateful to the Government for supplying a copy of any statutory instrument regarding the establishment of the wage committee of the Prices and Incomes Commission.

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The Committee takes note of the information supplied by the Government in its report, and particularly of the Minimum Wages and Conditions of Employment (General) Order of 1985, and the Minimum Wages and Conditions of Employment (Shop Workers) Order of 1987.

Article 1, paragraph 2, and Article 4, paragraphs 2 and 3, of the Convention. The Committee notes that section 3(1) of the Minimum Wages and Conditions of Employment Act (No. 25) of 1982 provides that if the group of workers in respect of which a statutory order is to be made is represented by a trade union, no such order shall be made without first consulting such trade union.

The Committee notes the Government's statement to the effect that, as a matter of operational policy and practice, full consultation with the workers' and employers' representative organisations is always undertaken, although consultation with employers' organisations is not specifically required by the Minimum Wages and Conditions of Employment Act. Where, therefore, minimum wages and conditions of employment have to be fixed for any group of workers not covered by adequate provisions, workers' and employers' representative organisations are fully consulted and only when consensus has been reached can the Minister make an order. The Government indicates that neither the workers' organisations nor the employers' organisations have raised any dissatisfaction on the mode and procedure adopted. The Committee also notes from the Government's report that the Consultative Council on Prices and Incomes established by the Prices and Incomes Commission Act (No. 9) of 1981, deals with prices and incomes policy matters but is not directly engaged in minimum wage fixing.

The Committee recalls that section 3(1) of Act No. 25 of 1982 provides only for consultation with workers' trade unions and provided that the workers in respect of whom a statutory minimum wage order is to be made are represented by a trade union. The Committee notes, however, that, under section 10(1)(c) of Act No. 9 of 1981, the Consultative Council on Prices and Incomes is in fact empowered to recommend for the approval of the Government minimum and maximum wage levels, and to supervise the execution and implementation of the recommendations approved by the Government. It also notes that, while in practice employers' organisations are always represented, this is not required by law.

The Committee therefore asks the Government to take measures to align national legislation with the practice described by the Government in its report and with the Convention, by making explicit provision for consultation with employers' organisations in the establishment, operation and modification of the machinery for fixing minimum wages.