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

The Committee takes note of the information supplied by the Government in its report.

It also takes note of the comments of the Federation of Christian Trade Unions (CNV), to the effect that the Government's report does not make it clear whether, and if so to what extent, the factors referred to in Article 3(a) (needs of workers and their families, taking into account the general level of wages in the country, the cost of living, social security benefits and the relative standard of living of other social groups) and 3(b) (economic factors, including the requirements of economic development, levels of productivity and the desirability of attaining and maintaining a high level of employment) of the Convention have been taken into account, considering that there have been no minimum wage adjustments since 1984. The Federation emphasises that the purchasing power of the minimum wage has dropped and that the lag in the minimum wage by comparison with wages as a whole has increased, and to refers to several recommendations of the Economic and Social Council on the adjustment of minimum wages and on minimum-level benefits, which have not been communicated to the Committee.

The Committee notes that the Government's report does appear to indicate that the basis of the decision to stabilise labour costs by freezing minimum wages was a desire to increase the level of employment, combat unemployment and generally improve the economy, and that, while some account was taken of them, the factors mentioned in Article 3(a) of the Convention had played but an insignificant part. Noting the information in the Government's report on the grant of specific benefits to the lower income groups in order to protect them from the consequences of the freezing of minimum wages, the Committee would nevertheless request the Government to indicate more specifically the extent to which and the manner in which account was taken of the factors mentioned in Article 3(a) of the Convention.