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A Government representative, Minister of Labour and Social Protection, reviewed the measures taken by the Government in the course of the last 12 months in order to resolve the problem of wages arrears, which had occurred chronically over many years. Recently, the Government and Parliament concluded, with the Confederation of Trade Unions of the Republic of Moldova, an agreement for the progressive elimination of these arrears. In May 2002, an Act was adopted on the compensation of wage earners victimized by this problem. Amendments have been made to the Labour Code to address this problem, in particular to redress arrears owed to civil servants and retired employees, and to put in place a labour inspection service. The total amount of the wage arrears decreased by 26.3 per cent, with a decrease in the average length of delay from four months to one month. As regards the payment of wages in kind, the Government stated that, in the country, the payment of wages in the form of alcoholic drinks, tobacco or narcotic substances was no longer in use.

The Employer members noted that this problem had been repeatedly raised over the last few years, and wondered why the Republic of Moldova had even ratified the instrument in 1996 when it had already been experiencing problems in payment of wages. They drew attention to the conclusions of the Governing Body report concerning a representation made by the General Federation of Trade Unions of the Republic of Moldova alleging non-observance by the Government of Convention No. 95. Those conclusions pointed to the need for a wide range of reforms, legal and administrative, in order to ensure the regular payment of wages. They stated that although the Government's report included figures indicating progress on the problem, such as a 14 per cent reduction in the overall amount of wage arrears, the question remained as to whether any reliable signs of positive development existed; on this point they noted the Committee of Experts' request calling for an improved supervisory structure and the establishment of a labour inspectorate. In regard to the problem of payment of wages in kind, such as in the form of alcohol and tobacco, they stated that this was a violation of Convention No. 95 in spite of the Government's indication that this was done upon the request of workers. This type of violation needed to be urgently combated by establishing the necessary framework for a market economy, one which would foster fair competition and provide appropriate rules and sanctions on the problem of in-kind payments. Expressing doubt as to whether the Government's statements on this problem would change, they stated that a solid basis for improved economic growth would be necessary in order to effectively ensure compliance with Convention No. 95.

The Worker members stated that they had a much more pessimistic interpretation of the observations of the Committee of Experts in this case than the Government. The Conference Committee was not in a position to evaluate the reliability of the Government's statistics, but they hoped that the Committee of Experts would test them against reality as much as possible. Protection of wages was a key right of workers. Therefore, they were deeply concerned over the worsening trend of non-payment of arrears, and payment in kind for a significant number of workers. The Government had stated that the situation of arrears was due to the economic situation. The amount of arrears had declined by 14 per cent, and certain measures had been taken including improvements in the public sector. Nonetheless, the amount of arrears remained very high, with an average delay in payment of two months. Furthermore, arrears were increasing in some sectors. For instance, in the agriculture and food production sector, which constituted 58 per cent of the economy, the average delay in payment had increased from three to four months. Although legislative provisions existed in this area, the prevalence of arrears indicated that application of the Convention was still weak in practice. They stressed that the Convention required application both in law and in practice. Not all possible effective measures had been taken to strengthen the application of the Convention in practice; in particular the Government had yet to establish an effective labour inspection service.

The Worker members also stressed that payment in kind was against the provisions of the Convention, although it was common in practice. The Government had stated that these cases were isolated and payment in kind was done at the request of the worker. The Worker members stated that nonetheless Article 4, paragraph 1, prohibited the practice of in-kind payments under all circumstances and the Government must end it. In conclusion, they urged the Government to assume its responsibilities under the Convention in full, and to provide detailed information in its next report.

The Worker member of Romania stated that, although it was a country in transition confronting serious difficulties, this did not constitute a sufficient excuse for non-application of Article 4, paragraph 1, and Article 12, paragraph 1, of Convention No. 95. The trade unions of the country had indicated that the Government tolerated the general practice consisting of substituting, in various enterprises, alcoholic drinks for money wages. According to the most recent information, these practices persisted. Moreover, the argument forwarded by the Government, that this form of remuneration was based upon a written request by the worker, did not stand up to reality. In any case, Article 4, paragraph 1, of the Convention prohibited such a practice in an absolute manner. On the basis of these considerations, the speaker immediately asked that the Government commit to end this widespread violation of the Convention and to do everything in its power to ensure that the partial payment of wages in kind, when authorized, met the strict requirements laid down in the Convention.

The Worker member of Hungary expressed her support for the Republic of Moldova's workers, noting that Hungarian workers had suffered through similar wage payment crises during their nation's structural adjustment phase. She emphasized that the regular payment of wages formed an essential element of decent work and even represented a matter of life or death in Moldova, where workers were generally their families' sole breadwinners and possessed little assets. Although the Government's report estimated the average length of delays in payment at two months, the General Federation of Trade Unions of Moldova placed the length of the delays at 6-12 months. This constituted a serious violation of Article 12 of Convention No. 95. Observing that the adoption of resolutions aimed at urging companies to pay wages on time had proven largely ineffective, she stated that the enactment of legislation alone would only scratch the surface of the problem. Only a more complex approach involving an analysis of the problem's social and economic background would produce an acceptable solution to it.

The Government representative stated that he had taken note of the observations formulated by the Committee of Experts, as well as those of the Conference Committee. He recalled that the information submitted encompassed all the measures taken in the course of the past year to give effect to Convention No. 95. He reiterated his Government's commitment to put in place all the means within its power to respond satisfactorily to the problems raised, in accordance with the recommendations of the Committee.

The Employer members took note of the Government's statements and referred to their previous comments. They hoped that the measures described would have an effect. They intended to keep an eye on developments in the case and hoped to see progress.

The Committee noted the oral explanations given by the Government representative and took note of the ensuing discussion. The Committee observed that the situation related to the practical application of the principles set out in Article 12, paragraph 1, and Article 4, paragraph 1, of the Convention dealing with the payment of wages at regular intervals and the prohibition of payment of wages in the form of liquor of high alcoholic content or of noxious drugs. The Committee took note of the information supplied by the Government concerning the legislative measures aimed at reducing the wage arrears, in particular the new Wage Act, which have allowed a reduction of outstanding wage debts by 26 per cent as of 1 May 2002. The Committee also noted that, according to the indications provided by the Government, the payment of wages in kind represented only 2.8 per cent of the wage bill and that the new Wage Act provided for a general prohibition of wage payment in kind. The Committee stressed the importance that it attached to the Convention which related to a fundamental workers' right affecting their day-to-day life and that of their families. It reiterated that the problems of delayed payment of wages or the payment of wages in the form of allowances was inconsistent with the Convention and called for sustained efforts, open and continuous dialogue with the social partners, and a wide range of measures, not only at the legislative level but also in practice, in order to ensure effective supervision through labour inspection. The Committee strongly urged the Government to implement efficiently the recommendations of the Committee set up by the Governing Body under article 24 of the ILO Constitution, which were adopted by the Governing Body in June 2000. It also invited the Government to supply the Committee of Experts with a detailed report containing relevant and up-to-date information on concrete measures taken to ensure the application of the Convention in practice. Such information should include all relevant data, for instance, the number of workers affected and the amount of accumulated wage arrears, inspections made, penalties imposed and the timetable for settlement of outstanding wage debts, as well as information on the number and nature of the establishments reported to practise partial payment of wages in the form of alcoholic drinks, tobacco products, or any other allowances in kind which would be in violation of the Convention.

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The Committee notes the information provided by the Government in its report, in particular the adoption of the new Labour Code, Act No. 154-XV of 28 March 2003.

Article 2, paragraphs 2 and 4, of the Convention. Scope of application. Further to its previous comments, the Committee notes that pursuant to its section 3, the new Labour Code applies to all employees without exception. It therefore understands that domestic and agricultural workers, who were previously excluded from the scope of the Convention, now fully enjoy the protective coverage of the Labour Code. The Committee would appreciate if the Government would confirm this understanding.

Article 7. Works stores. The Committee notes that the Labour Code does not appear to regulate the operation of works stores. The Committee recalls, in this regard, that the Government had indicated in its last report that new provisions would be inserted into the Wages Act in order to address the question of works stores in accordance with the requirements of the Convention. The Committee therefore requests the Government to indicate the measures taken or envisaged in order to give effect to this Article of the Convention.

Article 10. Assignment of wages. The Committee notes that the new Labour Code does not appear to contain any provisions on assignment of wages. The term “assignment of wages” is generally understood as a voluntary arrangement for the reimbursement of a personal debt, or any pay advances granted by the employer, based on a statement signed by the assigner in person before a magistrate of the local court or an agent of the labour inspectorate. It therefore asks the Government to indicate whether the assignment of wages is in any manner regulated in the general labour legislation.

Article 11. Wages as a privileged debt in bankruptcy. The Committee notes that under section 144(1) of the Labour Code, workers’ wage claims must be satisfied in priority to other payments in case of the employer’s bankruptcy or insolvency. The Committee requests the Government to specify whether the preferential treatment of wage claims is still regulated by section 28 of the Bankruptcy Law (Act No. 786-XIII of 26 March 1996, as amended by Act No. 1254-XIII of 16 July 1997) and to transmit a copy of the relevant provisions in their current reading.

Article 13(2). Place of payment of wages. The Committee notes that the Labour Code does not appear to specifically prohibit the payment of wages in taverns or other similar establishments, or shops or stores. It therefore asks the Government to indicate how effect is given to the Convention in this regard.

Article 16 and Part V of the report form. The Committee would appreciate if the Government would continue to provide up to date information on the practical application of the Convention including, for instance, statistical information regarding the number of workers covered by relevant legislation, copies of collective agreements containing clauses on wage protection, any official studies or reports on matters related to the protection of wages or wage policy in general, labour inspection results, etc. 

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Partial payment of wages in kind. The Committee notes the Government’s statement that whereas the payment of wages in kind is in principle prohibited, there are still cases of wages being paid in the form of goods upon the specific request of the employee, or in accordance with regulations of certain agricultural units that permit supplementary payment in the form of agricultural products, such as wheat and sugar, and oil. It also notes that in the first five months of 2007, the cash equivalent of all payments in kind amounted to 5.9 million lei (approximately US$515,635) that represents 0.0011 per cent of the total wage bill. The Committee requests the Government to closely monitor the situation and keep it informed of any new developments in this regard.

The Committee notes that according to the information provided by the Government, the labour inspection services and the trade unions did not report any instances of payment of wages in the form of alcoholic drinks, narcotic substances or tobacco products during this reporting period. The Committee welcomes this positive development and requests the Government to actively pursue its policies seeking to prevent the recurrence of such phenomena in the future.

The situation of wage arrears. Further to its previous comments, the Committee notes the Government’s statement that it is undertaking various legislative measures concerning the ongoing problem of accumulated wage arrears. In this connection, the Government refers to the adoption of the new Labour Code (Act No. 154-XV of 28 March 2003) providing for the employer’s obligation to pay wages as priority to other payments (section 144) and the liability of banks and public authorities in case of delayed payment of wages (section 146). It also refers to Decree No. 678 of 11 July 2005 setting out an action plan and measures aimed at the elimination of wage arrears and to Decision No. 1240 of 30 November 2005 restricting the possibility for salary increase, bonuses and other incentive payments to managers of state enterprises experiencing wage arrears until all wage debts are completely eliminated. The Committee would appreciate receiving copies of the abovementioned instruments. The Committee also notes that the National Commission for Consultations and Collective Bargaining discussed on several occasions the question of wage arrears and recommended measures. It requests the Government to provide additional information on those discussions and recommendations.

Further, the Committee notes the statistical data provided by the Government showing that in 2006 more than 800 inspection visits were carried out, and 100 cases of administrative contraventions were identified including wage-related offences. The Government indicates that as the result of these efforts, the total accumulated amount of wage arrears has considerably diminished. As of 1 January 2007, the wage debt stood at 114.7 million lei (approximately US$10 million), as compared to 638.6 million lei (approximately US$56 million) on 1 January 1999. The Committee would appreciate if the Government would continue to supply up to date and documented information on the evolution of the situation of wage arrears.

A request on certain other points is being addressed directly to the Government.

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The Committee notes the report of the Government and the replies provided to the points raised in its previous direct request.

Article 2, paragraphs 2 and 4, of the Convention. With regard to the two categories of workers currently excluded from the scope of the Convention, namely domestic workers and persons employed in individual agricultural enterprises, the Committee notes the Government’s explanations to the effect that these categories are not regulated since at the time of the adoption of the Labour Code salaried posts in the employment of private persons were not existent and even at present are rather infrequent. The Government states, however, that this type of employment, including work in farms, is now regulated in Chapter VIII of the new Labour Code, Act No. 154-XV of 28 March 2003, which entered into force on 1 October 2003, and therefore the Government intends to extend the application of the provisions of the Convention in the coming years to cover the persons employed in individual agricultural enterprises as well as those employed in domestic work. The Committee hopes that the Government will be in a position in its next report to indicate that domestic workers and employees in privately owned farms are no longer excluded from the coverage of the Convention.

Articles 6 and 7. The Committee notes the Government’s statement that the amendment of section 31(1) of the Wages Act is envisaged to specifically provide that employers are prohibited from limiting in any manner the freedom of workers to dispose of their wages. The Government also announces its intention to insert new provisions in the Wages Act to regulate the operation of works stores in accordance with the relevant provisions of the Convention. The Committee trusts that the Government will take the necessary action shortly. It therefore requests the Government to provide information in its next report on any progress made in this respect and to transmit the text of any amended provisions as soon as adopted.

Article 16 and Part V of the report form. The Committee takes note of the Government’s information concerning the situation in the Transnistrian region of the Republic of Moldova and the ongoing negotiations in common with the Russian Federation, Ukraine and the Organization for Security and Cooperation in Europe (OSCE) with a view to finding a peaceful solution to the conflict. The Committee requests the Government to continue to provide, in accordance with Article 16 of the Convention and Part V of the report form, general information on the practical application of the Convention, including for instance extracts from official reports, statistics or surveys referring to matters dealt with in the Convention, as well as any other particulars which would facilitate the Committee’s task to supervise the observance of the standards set out in the Convention.

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The Committee notes the information provided by the Government in reply to its previous comments.

With regard to the payment of wages in kind, the Committee notes that, according to the Government’s report in the first half of 2003, there has been a significant progress in reducing the amount of wages paid in the form of goods and services. The Government indicates that, whereas in 2002, 253 million lei worth of goods and services were paid in lieu of money wages, or 5.1 per cent of the annual wage bill, in the first semester of 2003 the payment of wages in kind represented 52.9 million lei, or 1.89 per cent of the annual wage bill. The Government adds that, whereas the payment of wages in kind is practically non-existent in the budgetary sector and is maintained at very low levels in commercial enterprises, transport and communications, hotels and restaurants and the financial sector, it remains widespread in agricultural enterprises where money wages are often replaced by cereals, vegetable oil, fodder and other agricultural products essential for the worker’s family. It is known, for instance, that agricultural cooperatives often distribute to their workers any unsold part of their produce in place of cash wages. While noting that the agricultural sector accounts for almost 60 per cent, or 31.4 million lei, of the total amount representing payments in kind in the first half of 2003, the Committee asks the Government to clarify in its next report whether such extensive practice concerns only cases of partial payment of wages in kind and, if so, to specify the average proportion of workers’ wages being paid in kind.

Moreover, the Government states that in 2002 and the first half of 2003 the labour inspection services have not reported any cases of payment of wages in the form of alcoholic drinks, narcotic substances or tobacco products, nor have any such cases been denounced by trade unions or the workers themselves. The Committee is satisfied that according to the statistical information communicated by the Government the situation is clearly improving but considers the percentage of the inspected enterprises, currently estimated at 15 per cent, which continue to practise wage payment in kind in violation of section 29(3) of the Wages Act of 2002 to be worryingly high. In this connection, the Committee welcomes the Government’s announcement that a legislative reform has been initiated to reinforce the system of sanctions for infringement of the labour legislation and accordingly to amplify the powers of the labour inspectorate. The Committee requests the Government to closely monitor the evolution of the situation and to keep it informed of any further progress made in this respect.

With reference to accumulated wage debts, the Committee notes that on 1 July 2003 the total amount of wage arrears stood at 152.5 million lei, as compared to 217.1 million lei in June 2002, which represents a fall of 58.7 per cent. The Government indicates that, even though wage arrears are no longer experienced in the public sector, the deferred payment of wages continues to affect particularly certain branches of economic activity such as agriculture (64.4 million lei), manufacture (36.4 million lei), construction (14.5 million lei) and transport and communications (10.3 million lei). The Government adds that the average delay in the payment of wages has been reduced from 1.1 months to 0.3 months, although in some cases such as the fishing industry workers continue to suffer delays of over three months. The Government also refers to the activities of the labour inspection services and the results obtained during the period from January to July 2003. Concretely, 2,304 inspection visits were carried out, 15,506 violations were observed, 1,997 persons holding responsible positions were sanctioned and 172.8 thousand lei worth of fines were imposed. In addition, the managers of five major companies were punished each by a fine equal to 150 minimum wages under section 41 of the revised Code of Administrative Offences for non-observance of the periodicity of wage payments.

The Committee notes the positive developments with regard to the settlement of wage arrears and encourages the Government to pursue its efforts to resolve the persisting wage crisis. The Committee understands that eliminating the phenomenon of wage arrears is a long and difficult process, especially in conditions of transition and unfavourable economic conjuncture, but wishes to emphasize, as it has pointed out in paragraph 412 of its 2003 General Survey on the protection of wages, that none of the reasons normally advanced by way of excuse, such as the implementation of structural adjustment or "rationalization" plans, falling profit margins or the weakness of the economic situation, can be accepted as valid pretexts for the failure to ensure the timely and full payment to workers of the wages due for work already performed or services already rendered, as required by Article 12 of the Convention. The Committee therefore asks the Government to continue to report in full on any measures designed to break the vicious spiral of wage arrears, demonetized transactions and deteriorating working and living standards.

A request on certain other points is being addressed directly to the Government.

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The Committee notes the Government’s report. It requests the Government to supply additional information on the following points.

Article 2, paragraphs 2 and 4, of the Convention. The Committee notes that the Government refers in its report to two categories of workers excluded from the scope of the Convention, namely persons employed in domestic work and those employed in individual agricultural enterprises. The Government is requested: (i) to specify whether the organizations of employers and employed persons directly concerned were consulted previously, as required by the Convention; and (ii) to indicate in future reports any progress that may have been made with a view to the application of the Convention to these categories of persons.

Article 6. The Committee notes that, under the terms of section 31(1) of the Wages Act, it is prohibited to limit the freedom of workers to dispose freely of their wages, except in the cases envisaged in the legislation. The Government is requested to indicate the cases in which the freedom of workers to dispose of their wages in full freedom may be restrained and recalls that such constraints cannot in any event be imposed by the employer.

Article 7. The Committee notes that neither the new Wages Act of 14 February 2002, nor the Government’s report, provide any of the replies requested with regard to works stores. It therefore once again requests the Government to indicate the measures which have been taken or are envisaged to ensure that: (i) workers are free from any coercion to make use of such stores or services; (ii) goods are sold and services are provided at fair and reasonable prices; and (iii) stores are established not for securing profit but for the benefit of the workers concerned.

Article 17, paragraph 3. The Committee notes that the Government recalls the information provided in its first report to the effect that, in accordance with the possibility left open by this Article of the Convention, the provisions of the Convention do not cover certain regions of the country, such as Dubasari, Camenca, Ribnita, Grigoriopol and Slobozia, which constitute the "Transnistrian Moldovan Republic" and issue their own legislation in the field of wages. The Committee recalls that, under the terms of paragraph 3 of this Article of the Convention, the member State having recourse to this faculty is under the obligation to reconsider at intervals not exceeding three years, and in consultation with the organizations of employers and workers concerned, the practicability of extending the application of the Convention to the areas exempted. The Committee therefore requests the Government, firstly, to supply copies of the legislative texts respecting wages to which it refers and, secondly, to indicate any measures which have been taken or are envisaged with a view to extending the application of the Convention to the regions indicated by the Government.

[The Government is asked to reply in detail to the present comments in 2003.]

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The Committee notes the information provided by the Government in its report. It also notes the discussion in the Committee on the Application of Standards at the 90th Session of the International Labour Conference (June 2002). It notes with satisfaction the adoption of the Wages Act of 14 February 2002, repealing the Act of 25 February 1993 on the same subject. The Committee also notes with interest the adoption of Act No. 140-XV of 10 May 2001 establishing the labour inspectorate. Furthermore, it notes the adoption of Act No. 1071-XV of 23 May 2002 amending and supplementing the Penal Code and the Code of Administrative Offences.

I.  Payment of wages in kind

1. Article 4 of the Convention. The Committee notes the information contained in the Government’s report and the discussion in the Committee on the Application of Standards. During this discussion, the Government stated that the payment of wages in kind in the form of alcoholic drinks, tobacco or narcotic substances was no longer the practice in the country. Certain members of the Conference Committee considered that such a practice, which was common in the country, was contrary to the Convention and that it needed to be combated on an urgent basis through the imposition of appropriate penalties. The Conference Committee requested the Government to implement efficiently the recommendations of the committee set up by the Governing Body under article 24 of the ILO Constitution, adopted by the Governing Body in June 2000, and invited the Government to supply the Committee of Experts with relevant and detailed information on the number and nature of the establishments reported to practice the partial payment of wages in kind in the form of alcoholic drinks, tobacco or any other allowances in kind in violation of the Convention.

2. The Committee notes with satisfaction that, under the terms of section 29(3) of the new Wages Act of 14 February 2002, any payment in kind, whether total or partial, is prohibited and that the payment of a part or whole of the wages in the form of spirits, tobacco or narcotic substances is henceforth explicitly prohibited. It also notes that, according to the Government’s report, during the year 2001 and the current year, the inspections carried out have not reported any cases of the replacement of wages by alcoholic drinks or narcotics and that such cases have not been reported by trade union organizations or the workers themselves. The Committee requests the Government to provide information, including statistics, in future reports on the compliance in practice with the new legislation respecting the payment of wages in kind by providing, for example, extracts from official reports, statistics on the number and type of contraventions reported and any other information relating to the application of the Convention in practice.

II.  Wage arrears

3. Articles 12, paragraph 1, and 15(c). The Committee notes the Government’s report and the discussion in the Committee on the Application of Standards at the 90th Session of the International Labour Conference (June 2002). The Government described the measures that it had taken to resolve the problem of wage arrears which has been chronically affecting the country for several years. It indicated that the total amount of wage arrears had decreased by 26.3 per cent at that time, with a decrease in the average length of the delay in their payment from four months to one month. The Government undertook to use all the means within its power to find a satisfactory solution to this problem. Certain members of the Conference Committee recalled that the problem of wage arrears had come before the Committee repeatedly for several years. They stated that, while the figures provided by the Government representative showed progress, the question remained as to whether any reliable signs of a positive development existed. They called upon the Committee of Experts to compare the figures provided by the Government with the actual situation and indicated that, in certain sectors such as agriculture and food processing, the situation of wage arrears was deteriorating, particularly because of the absence of effective labour inspection services. The Committee on the Application of Standards therefore requested the Government to provide the Committee of Experts with detailed, up-to-date and relevant information on the concrete measures taken to ensure the application of the Convention in practice.

4. In its report, the Government states that, due to the deep-rooted crisis and the situation of insolvency affecting most of the country’s enterprises, the phenomenon of the non-payment of wages still persists. It refers to the various legislative measures adopted with a view to organizing and supervising the action taken to reduce the accumulated arrears of wages. The Government also refers to the new provisions contained in the Wages Act, which include giving priority to the payment of wages in relation to other debts (section 28 of the Wages Act), the determination of specific intervals for the payment of wages (section 30), the responsibility of banks and persons in positions of responsibility in the event of the non-payment of wages within the time limits that have been set (section 34) and compensation in the event of the non-payment of wages in due time by means of their compulsory indexation to the consumer price index (section 35). The Government also refers to the establishment, by Act No. 140-XV, of the labour inspectorate with the mission of supervising compliance with labour legislation in publicly or privately owned enterprises, institutions and organizations, irrespective of their legal nature, and in public authorities at the central and local levels (section 1(2)). Finally, it refers to the adoption of Act No. 1071-XV amending and supplementing the Penal Code and the Code of Administrative Offences, which sets out penalties for cases of wilful non-observance of the regular intervals determined for the payment of wages and other payments of a permanent nature.

5. The Government considers that, following the adoption of this series of measures, wage arrears have diminished since October 2000 by 22 per cent and, as of 1 June 2002, amounted to around 370 million lei, of which 126.5 million are in the public budget sector. Of the 370 million lei, some 44.6 per cent represented wage arrears from the month of May, with the average delay in the payment of wages also having been reduced from 2.1 months in October 2000 to 1.1 months in June 2002. The limit of three months is exceeded only in the agricultural sector.

6. The Committee notes with interest the measures taken by the Government to combat the phenomenon of the non-payment of wages and notes the progress that has been achieved in resolving the problems raised by wage arrears. However, it recalls the concerns expressed by the members of the Committee on the Application of Standards of the International Labour Conference and considers that further efforts should be made to fully resolve the problem of wage arrears. In this respect, the Committee requests the Government to provide additional information on the three-month limit for the payment of wages referred to in its report. The Committee notes that such a limit is not in accordance with the Wages Act, which provides for the periodical payment of wages not less than twice or once a month depending on the type of payment, namely for piece-work or on a monthly basis, respectively (section 30).

7. Furthermore, the Committee notes that section 138(1) of the Penal Code and section 41(2) of the Code of Administrative Offences provide for penalties solely in the event of wilful non-compliance with the regular intervals set out in the law for the payment of wages. The Committee wishes to recall that, under the terms of Article 15(c) of the Convention, national laws or regulations have to prescribe adequate penalties for any violation thereof, without any distinction between the wilful or unintentional nature of such violations. By prescribing penalties only in cases of wilful non-compliance with the prescribed intervals for the payment of wages, the provision of the above Codes are not therefore in conformity with this provision of the Convention. The Committee accordingly requests the Government to indicate the measures which are envisaged to ensure that all violations of the legislation giving effect to the Convention are penalized in accordance with the Convention.

8. The Committee hopes that the Government will take all the necessary measures to achieve the full and entire application of the Convention in both national law and practice, and it requests the Government to continue to provide in future reports up-to-date information on the number of workers affected and the number and nature of enterprises in which the payment of wages has been subject to delays since the entry into force of the new legislation on wages and the establishment of the labour inspectorate. The Government is also requested to provide information on the number of violations reported in relation to the payment of wages at the intervals required since the adoption of the above national legislation, the number of complaints investigated and the nature of the penalties imposed under the new regulations in force, including any rulings handed down by the competent courts.

A request on other points is also being addressed directly to the Government.

[The Government is asked to reply in detail to the present comments in 2003.]

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The Committee notes with interest the Government’s first two reports. It requests the Government to provide additional information on the following points.

Article 2(2) of the Convention. The Committee notes that in its first annual report, the Government indicated two categories of persons which were likely to be excluded from the application of the provisions of the Convention, i.e. domestic workers and persons employed in the individual farmer’s household. Noting that in its second detailed report, the Government does not specify whether these two categories of workers are finally to be excluded from the application of the Convention, and if so, whether the employers’ and workers’ organizations directly concerned were previously consulted, the Committee asks the Government to further clarify this point.

Article 4. The Committee notes that, under section 18(3) of Wages Act No. 1305 of 25 February 1993, not only collective agreements but also individual employment contracts may provide for the partial payment of wages in the form of allowances in kind. The Committee recalls that the Convention allows for the payment of wages in kind only when authorized by national laws or regulations, collective agreements or arbitration awards. It hopes that concrete action will soon be taken in this respect, and asks the Government to report on any relevant developments.

Furthermore, the Committee notes the Government’s indication that in some cases payment of wages in kind involves merchandise which do not correspond to the personal needs of the worker and his/her family. It also notes that the Government recognizes that supplementary measures are needed for the regulation of the partial payment of wages in kind. In this connection, the Committee recalls that the Convention requires appropriate measures to ensure that allowances in kind are appropriate for the personal use and benefit of the worker and his/her family and that they are attributed a fair and reasonable value. It therefore requests the Government to specify the steps it intends to take in order to bring the national legislation into closer conformity with the requirements of the Convention.

Article 7. While noting the explanations given by the Government in its report regarding works stores, the Committee asks the Government to specify the measures taken or envisaged to ensure that: (i) workers are free from any coercion to make use of such stores; (ii) goods are sold and services are provided at fair and reasonable prices; and (iii) stores are established not for securing profit but for the benefit of the workers.

Article 10. Recalling that the Convention seeks to protect wages against excessive or unfair attachment but also against assignment, the Committee asks the Government to give full particulars concerning the conditions and limits applicable to assignment of wages.

Article 13(2). The Committee requests the Government to indicate the legislative or other provision prohibiting the payment of wages in taverns or other similar establishments, in shops or stores for the retail sale of merchandise, or in places of amusement except in the case of persons employed therein.

[The Government is asked to report in detail in 2002.]

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The Committee notes the conclusions and recommendations of the committee set up to examine the representation made by the General Federation of Trade Unions of the Republic of Moldova, under article 24 of the Constitution, alleging non-observance by the Republic of Moldova of Convention No. 95 (document GB.278/5/1, 278th Session, June 2000). Bearing in mind the conclusions contained in paragraphs 20 to 35 of the report, the above Committee recommended that the Government should be invited to supply detailed information on all measures taken or envisaged with a view to:

(i)  ensure the regular payment of wages, in particular regarding the ongoing legislative reforms to improve the supervision of the application of labour laws, including the establishment of a Labour Inspectorate, and the progress in the discussions with the most representative workers’ organizations to agree on a yearly schedule for the payment of wage arrears; and

(ii)  put an end to the practice of partial payment of wages in the form of alcoholic drinks and tobacco products or any other allowance in kind which would be in violation of the provisions of Convention No. 95, and in particular on the nature of institutions or agencies responsible for the enforcement of relevant laws and regulations, the number of complaints investigated or infringements observed and the nature of sanctions imposed.

Wage arrears

In its report, the Government states that a series of measures have made it possible to reduce the overall amount of wage arrears from 552.1 million lei in January 2000 to 475.2 million in October 2000, that is a 14 per cent decrease. Significant reductions were observed in some sectors such as education where wage arrears dropped from 88.7 to 60.8 million lei, or a 31.5 per cent decrease, and the health sector where arrears fell by 22.5 per cent from 66.4 to 51.5 million lei. The average delay in the payment of wages was 2.1 months ranging from 0.7 to 1.7 months in industry, trade, transport, education and culture, to 3 to 4 months in agriculture, health and public administration. Agriculture, including the industry related to agricultural products, accounted for 58 per cent of all accumulated arrears in the non-budgetary sector.

With regard to legislative and administrative measures, the Committee notes the adoption of Government Resolution No. 927 of 9 September 2000 by which companies with accumulated wage arrears cannot increase wage scales until they have paid off all due wages, and Resolution No. 985 of 27 September 2000 which provides that, in case of partial payment, company managers may only receive the same proportion of their salaries as their employees. By resolution No. 468 of 18 May 2000, the Government defined the payment of wages and pensions as one of the priorities in the execution of the state budget. In addition, on 15 June 2000, the Government amended Act No. 491-XIV of 9 July 1999 concerning the local public finances to the effect that funds transferred from the state budget to the treasury of regional authorities must be used as a matter of priority for the payment of the wages of employees of institutions financed by administrative-territorial units. In September 2000, the Parliament adopted the plan of reform of the system of remuneration including action to ensure the timely payment of wages. The Government further indicates that in 2000, new draft laws were elaborated on minimum-wage fixing, protection of wages, and labour inspection as well as a new consolidated text of the Labour Code. The Government also refers to paragraph 73 of the National Collective Agreement of 1998 which expands the liability of managers and provides that officials responsible for the non-payment of wages who admit having misused financial resources destined to pay workers’ wages shall be punished in conformity with the laws in force.

While noting that, according to the figures provided by the Government, there have been some signs of improvement in certain branches of the state-owned sector, the Committee is bound to observe that the situation remains particularly serious especially in the non-budgetary sector. The Committee has been emphasizing the importance of such measures as: (i) effective supervision; (ii) imposition of appropriate penalties to prevent and punish infringements; and (iii) steps to make good the prejudice suffered. The information supplied by the Government does not permit to conclude that all possible measures have been exhausted in any of these three aspects. In particular, the Committee notes with concern that little progress has been recorded in the effort to create a Labour Inspectorate which would have facilitated the systematic control of the application of national legislation. The Committee requests the Government to continue to provide information on all relevant measures taken to ensure the regular payment of wages and a rapid settlement of outstanding wage arrears in conformity with Article 12(1) of the Convention. Recalling paragraph 36(a)(i) of the report of the committee set up to examine the representation made by the General Federation of Trade Unions under article 24 of the Constitution, the Committee requests the Government to provide up-to-date information in its next report on the number of workers affected and the type and number of establishments concerned as well as on the number of punishable offences observed and the sanctions imposed, including any relevant court decisions. The Committee also asks the Government to make available to the Office the text of any legislative or regulatory acts such as Government resolutions which have not been supplied previously.

Payment of wages in kind

The Committee takes note of the information contained in the Government’s report regarding the payment of wages in the form of alcoholic drinks. According to the results of an inspection carried out in 99 establishments throughout the country, following the allegations of the General Federation of Trade Unions about the extensive practice of supplying alcoholic drinks in lieu of money, 14 enterprises were found to offer alcohol in lieu of wages in cash. In total, 2,586 workers were affected by such practice, or 0.36 per cent of the total workforce, while alcoholic drinks represented 2.2 per cent of all payments in kind, or 0.16 per cent of the country’s nine-month wage bill. The Committee also notes the Government’ s indication that cash remuneration is replaced by alcohol upon the written request of workers on specific family occasions (e.g. weddings, funerals, etc.). To the Government’s knowledge, workers were in no case imposed the payment of wages in the form of alcoholic drinks. The Government adds that there have been no reports of wages being paid in the form of narcotic substances.

In the Committee’ s opinion, the above information based on a sample survey gives alarming evidence of the ongoing practice of substituting alcohol for money wages. While noting that the Government insists that the problem is limited to a few isolated cases and that such practice only occurs on the workers’ express request, the Committee is obliged to recall that Article 4(1) of the Convention prohibits the payment of wages in the form of alcoholic drinks or of noxious drugs in any circumstances. The Committee further considers that the Government has primary responsibility in the enforcement of this prohibition and should do therefore its utmost in order to definitively eradicate such practice.

The Committee therefore urges the Government to make a clear commitment to put an end to this violation of the Convention and to take all necessary measures to ensure that the partial payment of wages in kind, when authorized, meets the strict requirements laid down in the Convention. Recalling paragraph 36(a)(ii) of the report of the committee set up to examine the representation made by the General Federation of Trade Unions under article 24 of the Constitution, the Committee asks the Government to supply, in particular, concrete information on: (i) the scale of the problem consisting in replacing cash remuneration by alcohol or tobacco; (ii) the enforcement of existing legislation and the results obtained; and (iii) any steps taken for improving the legislative or regulatory framework with regard to payment of wages in kind.

In addition, a request regarding other points is being addressed directly to the Government.

[The Government is asked to report in detail in 2002.]

CMNT_TITLE

The Committee notes that the Government’s report has not been received. It must therefore repeat its previous observation, which reads as follows:

The Committee notes that the Governing Body at its 276th Session (November 1999) entrusted to a tripartite committee the examination of a representation alleging non-observance by Moldova of the Protection of Wages Convention, 1949 (No. 95), made under article 24 of the ILO Constitution by the General Federation of Trade Unions of the Republic of Moldova.

In accordance with normal practice, the Committee is postponing its comments on the application of the Convention pending the Governing Body’s adoption of the conclusions and recommendations of the above committee.

The Committee hopes that the Government will make every effort to take the necessary action in the very near future.

CMNT_TITLE

The Committee notes that the Governing Body at its 276th Session (November 1999) entrusted to a tripartite committee the examination of a representation alleging non-observance by Moldova of the Protection of Wages Convention, 1949 (No. 95), made under article 24 of the ILO Constitution by the General Federation of Trade Unions of the Republic of Moldova.

In accordance with normal practice, the Committee is postponing its comments on the application of the Convention pending the Governing Body's adoption of the conclusions and recommendations of the above committee.