Observation (CEACR) - adopted 2007, published 97th ILC session (2008)

The Committee notes the information provided by the Government in reply to its previous comments. It also notes the adoption of the new law of 13 July 2006 on protection of employees’ claims in the event of insolvency of their employer (Text 1121, Journal of Laws No. 158) and the recent amendment of section 29 of the Labour Code concerning the employer’s obligation to inform employees about their wage conditions.

The wage arrears situation. With reference to the ongoing problems concerning the regular payment of wages, the Committee notes the Government’s indication that inspection results confirm the consolidation of positive trends as regards the observance of legislation on protection of labour remuneration. The Committee also notes the Government’s reference to the new law of 7 April 2006 amending section 24 of the Public Procurement Act, so that employers who have been condemned by court decision for offences against the rights of gainfully employed persons are henceforth excluded from tendering for public contracts. The Government also refers to the law of 13 April 2007 on the national Labour Inspectorate which raises the fines for offences against workers’ rights, including non-payment of wages, to a maximum of 30,000 zloty (approximately 8,300 euros) for fines imposed by a magistrate and to 2,000 zloty (approximately 550 euros) for fines imposed by a labour inspector.

In particular, the Government refers to the number of employers against whom wage orders have been issued by labour inspectors and which has dropped from 6,200 in 2003 to 3,600 in 2005. Consequently, the overall amount of wage orders has been reduced from 360 million zloty in 2003 (approximately 95 million euros) to almost 200 million zloty (approximately 53 million euros) in 2005 while the total number of workers experiencing delays in the payment of their wages has decreased from 359,000 in 2003 to 221,000 in 2005. In 2006, it was estimated that 75,366 persons were affected by the non-payment of 70 million zloty (approximately 19 million euros). Despite these favourable indications, the Committee notes with concern the high level of wage-related infringements reported by the labour inspection services, notably that in approximately 80 per cent of all controlled work establishments legislation on payment of remuneration was infringed and that 30.7 per cent of all controlled employers in 2006 were found in violation of regulations on labour remuneration including payment of overtime, holiday pay and similar entitlements. According to the Government’s report, the main cause of revealed irregularities remain the absence of funds due to the bad financial situation of enterprises but there is also lack of knowledge of the legislation in force and application of incorrect methods of calculating remuneration and other benefits. The Committee would be grateful if the Government would continue supplying up to date information on the measures taken to ensure that wages are paid regularly and in full, including labour inspection results, sanctions imposed, wage sums recovered, the economic sectors and categories of workers mostly affected by wage arrears, etc.

The wage crisis in the health sector. The Committee notes the Government’s explanations concerning the amendment of 9 June 2006 to the Act on public aid and restructuring of public health-care establishments of 15 April 2005 which gives the possibility for loans from the state budget to establishments other than independent public health-care units, offers possibilities for additional loans and increases the remittance of the main dues in respect of the loan from 50 to 70 per cent. While noting these legislative developments, however, the Committee observes that the Government does not provide any information on the process of restructuring in practice, especially as regards the settlement of the estimated wage debt of 358 million euros owed to the personnel of health-care institutions, including 170 million euros of accumulated liabilities in respect of non-compliance with article 4(a) of the “203 Act”. The Committee recalls, in this respect, that the Government has previously indicated that it would communicate precise data on the number of health-care personnel affected by the problem of delayed payment of wages when health-care establishments would file applications for restructuring proceedings under the new law on public aid and restructuring. The Committee also recalls the Government’s statement before the Conference Committee on the Application of Standards in June 2004 that the problem of outstanding wages in the health-care sector would be eliminated within two years. The Committee accordingly requests the Government to provide detailed information on the present situation relating to the settlement of accumulated wage debts in the health-care sector, including: (i) the number of employees concerned; (ii) the total amount of wages settled and due including liabilities arising out of the “203 Act”; (iii) the time frame for the repayment of all outstanding sums; and (iv) full particulars on any individual agreements concluded with health-care personnel providing for repayment in instalments or containing a waiver on the payment of interest.

[The Government is asked to reply in detail to the present comments in 2008.]