Observation (CEACR) - adopted 2015, published 105th ILC session (2016)

Employment Policy Convention, 1964 (No. 122) - Venezuela (Bolivarian Republic of) (Ratification: 1982)

Other comments on C122

Observation

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The Committee notes the observations made by the Confederation of Workers of Venezuela (CTV), which were received on 1 September 2015, and by the Federation of Chambers and Associations of Commerce and Production of Venezuela (FEDECAMARAS) and the International Organisation of Employers (IOE), which were received on 2 September 2015.

Articles 1 and 2 of the Convention. Implementation of the employment policy in the framework of a coordinated economic and social policy. The Committee notes the Government’s indication in its report that it has implemented a new social strategy, based on the guidelines established in the Economic and Social Development Plan 2007–13, aimed at eradicating poverty and facilitating social integration. The strategy is based on the system of missions existing in the country, focusing on five key elements, namely: employment; employment quality; provision for education; the guarantee of free, high-quality education; and the definitive elimination of poverty. The Government explains that the social impact of the various policies and programmes can be observed in the social indicators (a gradual decrease in the number of households in a situation of extreme poverty, a downward trend in the number of poor households, and an increase in social investment). The Government refers to the behaviour of labour force indicators (the unemployment rate fell from 10.6 per cent in 1999 to 5.5 per cent in 2014). The Government indicates that in January 2015 the percentage of employed persons in the informal economy was 41.2 per cent (10.4 percentage points less than in January 2004). The Government adds that between 2000 and 2014 one third of new jobs created were in the formal economy. FEDECAMARAS and the IOE maintain that there are no real employment plans incorporated into macroeconomic planning and that the country’s economic situation does not permit the creation of new jobs. The Committee observes that FEDECAMARAS and the IOE maintain that the economic model of the last ten years has resulted in the closure of some 4,000 industrial workplaces and of over 200,000 business establishments; in addition, some 120,000 enterprises are at risk of bankruptcy. According to FEDECAMARAS and the IOE, the National Institute of Statistics (INE) announced in January 2015 that the unemployment rate in Venezuela was 7.9 per cent and that over 13 million people were in employment. The INE also indicated that 58.8 per cent of the total population in employment was in the formal economy, while the informal economy (which includes enterprises with fewer than five employees) accounts for 41.1 per cent of the population. The Committee requests the Government to indicate the impact of the measures adopted under the Economic and Social Development Plan 2007–13 and the social missions, in relation to the creation of productive employment. The Committee also requests the Government to provide detailed, disaggregated information on the situation, level and trends of employment. Please explain the manner in which labour market data have been used as the basis for a regular review of employment policy measures as an integral part of a coordinated economic and social policy for achieving the objectives of the Convention.

Youth employment. The Government indicates that, according to the INE report on the labour force, with respect to the second half of 2013, the youth population (15–30 age group) comprised 8,417,247 persons, representing 28 per cent of the total national population. The economically active proportion of that age group represented 33.5 per cent of the total economically active population. In the second half of 2013, the youth employment rate was 87.2 per cent (4,093,949 persons), representing 31.6 per cent of the total employed population. The Committee requests the Government to provide detailed and disaggregated information on youth employment trends. The Committee also requests the Government to include an evaluation of the active policy measures implemented to minimize the impact of unemployment on young persons and to facilitate their lasting integration into the labour market, particularly in the case of the most underprivileged categories of young persons.

Development of small and medium-sized enterprises (SMEs). The Committee notes the information supplied by the Government regarding the legal provisions concerning the promotion and protection of SMEs, and the credits granted between 1974 and 2013, by economic sector. The Government also indicates that, through dialogue round tables with the employers, agreements have been reached for boosting productive employment, with the provision of financial and institutional support for projects to create enterprises for social, mixed and communal production. The Committee requests the Government to continue providing information on the impact of the measures adopted to promote productivity and a conducive climate for employment generation by small and medium-sized enterprises.

Article 3. Participation of the social partners. The Committee notes the CTV’s claim that the workers’ organizations are not consulted with regard to the formulation of employment policies. FEDECAMARAS and the IOE indicate that the Government is failing to comply with its obligation to consult the most representative employers’ organization in Venezuela with regard to the coordinated determination of policies to ensure decent, stable, productive and high-quality employment in Venezuela, an increase in workers’ standard of living, and also to achieve growth and individual and social progress. The Committee once again requests the Government to provide specific examples of the manner in which the views of employers’ and workers’ organizations have been taken into account in the formulation and implementation of employment policies and programmes.