Observation (CEACR) - adopted 1989, published 76th ILC session (1989)

The Committee notes the Government's report and recalls that its previous comments concerned the following points:

- the need to adopt specific measures, particularly through legislation, to guarantee adequate protection, enforceable by civil remedies or penal sanctions, to workers' organisations against any act of interference by employers or their organisations, in accordance with Article 2 of the Convention;

- the scope of the restrictions on collective bargaining imposed by the Counter-Inflation (Remuneration) Act.

1. With regard to the application of Article 2 of the Convention, the Government refers once again to the Trade Unions Act and the Industrial Association Act which, in its view, guarantee the mutual independence of occupational organisations. It adds that these organisations meet on committees appointed by the Government, but that no employer has control over a trade union.

While noting this information, the Committee once again requests the Government to take specific measures to forbid the establishment of workers' organisations dominated by an employer and the support by financial or other means of workers' organisations with the purpose of placing these workers' organisations under the control of an employer or an employers' organisation, in accordance with Article 2 of the Convention, and to indicate in its next report any progress achieved in this respect.

2. In its previous observation, the Committee - as did the Committee on Freedom of Association in Case No. 1379, approved by the Governing Body at its 248th Session (March 1987) - requested information from the Government on the way in which effect is given to Article 4 of the Convention, following the adoption of the Counter-Inflation (Remuneration) Act.

The Committee notes from the information supplied by the Government that the Counter-Inflation (Remuneration) Act empowers the Government to set a ceiling for the rate of remuneration of workers and that this measure, which was necessitated by the economic situation, will be re-examined when the situation improves. The Government adds that the social partners are still free to bargain collectively their other terms and conditions of employment.

In this context, the Committee also notes the Counter-Inflation (Remuneration) (Control) (Variation) Order, 1988, adopted under section 10 of the Counter-Inflation (Remuneration) Act and notes that as from 1 January 1988 no salary increase is allowed except under the very restrictive conditions set out in section 4 of the Order of 1988.

The Committee draws the Government's attention to the fact that free collective bargaining should be able to cover all the terms and conditions of employment, including matters relating to wages, and that intervention by the authorities with the intention of removing wage increases from the scope of bargaining is not in conformity with Article 4 of the Convention, if this is prolonged beyond a reasonable period of time. Indeed, the Committee emphasises that where, for compelling reasons of national economic interest, the Government considers that it would not be possible for wage rates to be fixed freely by means of collective negotiations, such a restriction should be imposed as an exceptional measure and only to the extent necessary without exceeding a reasonable period and it should be accompanied by adequate safeguards to protect the workers' living standards. Finally, instead of proceeding unilaterally to apply its economic policy, which may be justified by circumstances, the Government should endeavour to persuade the parties to collective bargaining to have regard voluntarily in their negotiations to the compelling reasons for its policy through appropriate consultation procedures, rather than constraining them through legislative measures.

The Committee therefore requests the Government to indicate in its next report the measures that it intends to take to lift the legal restrictions on the free negotiation of wages and to re-establish collective bargaining in this area.