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The Committee notes the Government’s report and would appreciate receiving further information on the following points.

Articles 1, 2(2) and 4(2), of the Convention. The Committee notes the Government’s reference to the General Collective Agreement for 2004-05, a tripartite agreement concluded among the Cabinet of Ministers, the Azerbaijan Trade Union Confederation and the Azerbaijan Entrepreneurs’ Confederation, in which the parties committed to consecutive increases in the minimum wage in order to gradually bring it up to the minimum subsistence level. However, the Committee is bound to observe that in the light of section 155(6) of the Labour Code of 1999, no institutionalized machinery seems to exist whereby employers’ and workers’ representatives may be regularly consulted on an equal footing with a view to determining or adjusting the national minimum wage. The Committee therefore asks the Government to provide a copy of the General Collective Agreement 2004-05 which has not been received, and to specify the legal provisions giving effect to the requirements of the Convention for effective consultation and direct collaboration of the social partners in all stages of the minimum wage fixing process.

Article 3. The Committee notes the explanations provided by the Government on the minimum subsistence level, as set out in the Act on the minimum subsistence level of 2004 and the resolution of the Cabinet of Ministers No. 185 of 23 June 2005. The Committee understands that the minimum subsistence level represents in fact the poverty line to be calculated every three years on the basis of a minimum consumer basket. The minimum subsistence level is currently established at AZN56.9 (approximately US$63) or practically double the national minimum wage currently in force. The Government is thus fully aware that the minimum wage is far from guaranteeing a decent standard of living, and intends to progressively narrow the gap between the minimum subsistence level and the national minimum wage. In 2007, for instance, the national minimum wage is expected to represent 71.4 per cent of the minimum subsistence level. In this regard, the Committee expresses its hope that the Government will spare no effort in order to gradually raise the minimum wage above the poverty line, and that the social partners will be fully consulted in that process.

Article 5 and Part V of the report form. The Committee notes that the national minimum wage is to be raised from its current AZN30 (approximately US$33) rate to between AZN40-50 (approximately US$45-55) as of 1 January  2007. It would be grateful if the Government would continue to provide up to date information on the practical application of the Convention, such as the size and composition of the workforce subject to the minimum wage legislation, information on the evolution of the national minimum wage in past years as compared to the evolution of economic indicators such as the inflation rate in the same period, labour inspection results showing the number and nature of contraventions observed and sanctions imposed, copies of official reports or studies relating to the minimum subsistence level, etc.

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The Committee notes the Government’s report and wishes to draw attention to the following points.

Articles 1 and 4, paragraph 2, of the Convention. The Committee notes that under section 155(6) of the 1999 Labour Code the minimum wage is determined by presidential decree but no reference is made to the requirement for prior consultations with representative organizations of employers and workers concerned. Recalling that the Convention requires the full consultation and direct participation of the social partners at all stages of the wage-setting process, the Committee requests the Government to indicate the measures taken or envisaged to ensure that the employers’ and workers’ interests are equitably represented and duly considered while establishing or revising minimum wage levels.

Article 2, paragraph 2. The Committee notes the reference to the General Collective Agreement for 2001-02 which was signed between the Cabinet of Ministers, the Azerbaijan Trade Union Confederation and the National Confederation of Entrepreneurs’ Organizations and which provides for consecutive increases in the minimum wage so that it gradually reaches the minimum subsistence level. The Committee asks the Government to supply a copy of this agreement.

Article 3. The Committee notes the explanations of the Government concerning the economic factors, such as the inflation rate or the resources available in the state budget, which are determinant with regard to the periodic readjustment of the minimum wage rate. Noting that under section 155(2) of the Labour Code, the minimum wage is defined as a social norm which is based not only on economic but also on social conditions, the Committee requests the Government to indicate whether and how it is ensured that minimum wage increases adequately reflect the needs of workers and their families, for instance by maintaining their purchasing power in relation to a basic basket of essential consumer goods.

Article 5 and Part V of the report form. The Committee notes that according to the Government’s report the minimum wage rate was last raised in 2001 and is now set at 27,500 manat (US$5.7). It also notes the Government’s indication that this minimum wage is actually paid in the public sector and applies to less than 1 per cent of the workforce, while in the manufacturing sector the level of the minimum wage established by collective agreements is several times higher. The Committee understands that under a presidential decree issued earlier this year the minimum monthly wage was raised to 45,000 manat with a further increase to 60,000 manat to take effect as from 1 January 2004. The Committee requests the Government to continue to provide all available information concerning the practical application of the Convention, including for instance the evolution of the national minimum wage as compared to the evolution of the consumer price index in recent years, statistical data on the number of workers covered by relevant legislation, reports from inspection services concerning the number of minimum wage-related offences reported and the sanctions imposed, official surveys addressing minimum wage questions as well as any other particulars bearing on the functioning of the minimum wage fixing machinery.

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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:

Article 1 of the Convention in conjunction with Article 4, paragraph 3(a) The Committee notes the Government’s statement that the issues relating to the fixing of a minimum wage applicable to all categories of workers are dealt with in the 1997 General Agreement between the Government and the Azerbaijan Confederation of Trade Unions. The Committee requests the Government to provide a copy of this agreement and to indicate to what extent employers are involved in the minimum wage fixing machinery. It again requests the Government to specify how equality of participation of representatives of employers and workers is ensured.

Article 2, paragraph 1, in conjunction with Article 5 and Part V of the report form. The Committee notes that the current monthly minimum wage of 5,500 manats was established in February 1995 and that the General Agreement includes provisions to ensure that the minimum wage will be increased in stages in accordance with available resources to a level equivalent to 20 per cent of the minimum consumer budget. It also notes that a state labour inspectorate was set up and is being organized.

The Committee requests the Government to indicate the functions of the state labour inspectorate with respect to the supervision and enforcement of the minimum wage, including the results of inspections that have been carried out (e.g., the number of violations of minimum wage provisions, the penalties imposed, etc.). The Committee also asks the Government to provide other general information on the application of the Convention in practice, such as the minimum wage rate(s) in force, the available data on the number and different categories of workers covered by minimum wage provisions, etc.

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

Article 1 of the Convention in conjunction with Article 4, paragraph 3(a). The Committee notes the Government's statement that the issues relating to the fixing of a minimum wage applicable to all categories of workers are dealt with in the 1997 General Agreement between the Government and the Azerbaijan Confederation of Trade Unions. The Committee requests the Government to provide a copy of this agreement and to indicate to what extent employers are involved in the minimum wage fixing machinery. It again requests the Government to specify how equality of participation of representatives of employers and workers is ensured.

Article 2, paragraph 1, in conjunction with Article 5 and point V of the report form. The Committee notes that the current monthly minimum wage of 5,500 manats was established in February 1995 and that the General Agreement includes provisions to ensure that the minimum wage will be increased in stages in accordance with available resources to a level equivalent to 20 per cent of the minimum consumer budget. It also notes that a state labour inspectorate was set up and is being organized.

The Committee requests the Government to indicate the functions of the state labour inspectorate with respect to the supervision and enforcement of the minimum wage, including the results of inspections that have been carried out (e.g., the number of violations of minimum wage provisions, the penalties imposed, etc.). The Committee also asks the Government to provide other general information on the application of the Convention in practice, such as the minimum wage rate(s) in force, the available data on the number and different categories of workers covered by minimum wage provisions, etc.

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The Committee notes the Government's first report and requests it to supply further information on the following points:

Article 4, paragraph 3 of the Convention. The Committee requests the Government to indicate the measures taken or envisaged to allow, wherever appropriate, the direct participation of the categories of persons covered by the present proposals in the application of the minimum wage-fixing machinery. The Government is also asked to specify in regard to paragraph 3(a), how equality of participation by representatives of employers and workers is ensured.

Article 5, in conjunction with point V of the report form. The Committee notes that, according to the Government's report, section 261 of the Labour Code establishes the general principle of supervising application of laws, including those on minimum wages, by the Attorney General of the Republic. Trade unions are also responsible for supervision. Furthermore, the Government indicates that a corps of government inspectors is being constituted.

The Committee requests the Government to indicate the measures taken or envisaged in the framework of establishing the Government inspectors' corps and to supply, where appropriate, information about their functions, powers and activities in relation to minimum wages (including the number of infringements recorded, sanctions imposed, etc.).