Direct Request (CEACR) - adopted 2019, published 109th ILC session (2021)

Employment Policy Convention, 1964 (No. 122) - Uruguay (Ratification: 1977)

Other comments on C122

Observation

Direct Request

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Articles 1 to 3 of the Convention. Implementation of the employment policy. Participation of the social partners. In reply to the Committee’s previous comments, the Government indicates that in 2015 an agreement was concluded between the National Directorate of Employment (DINAE) and the National Employment and Vocational Training Institute (INEFOP) with the objective of creating a “one-stop shop” to enable users to have access to the services provided by both institutions in a coordinated and complementary manner. Within the framework of the agreement, three employment and vocational training technical centres were established in 2016 in the departments of Salto, Durazno and Maldonado, in which the services provided include information, guidance and employment placement, as well as support for educational initiatives. The work of the centres is articulated with the departmental employment and vocational training committees, which are tripartite in composition. The Government indicates that, according to an external evaluation, the establishment of these centres has led to an improvement in institutional coordination mechanisms for the implementation of employment and vocational training policies, with an increase in the number of persons who have benefited and good levels of satisfaction among users. The Government also reports the conclusion of departmental agreements on employment and training within the context of the social dialogue processes promoted by the DINAE between social partners related directly or indirectly to the vocational training and employment sectors. With regard to labour market trends, the Committee notes, based on the Continuous Household Survey of the National Institute of Statistics (INE), that the activity rate in February 2019 was 62.3 per cent (70.4 per cent for men and 54.9 per cent for women). The employment rate was 57.1 per cent (65.7 per cent for men and 49.2 per cent for women), while unemployment was 8.4 per cent (6.7 per cent for men and 10.4 per cent for women). According to the Survey, 8 per cent of the active population is underemployed. The Committee further notes that, in its concluding observations of 20 July 2017, the Committee on Economic, Social and Cultural Rights (CESC) expressed concern at the fact that unemployment rates are higher among young people and women. The CESC also expressed concern at the limited impact that affirmative action measures have had in opening up access to employment for persons of African descent (E/C.12/URY/CO/5, paragraph 17). The Committee therefore requests the Government to provide detailed and updated information on the measures adopted or envisaged with a view to promoting full, productive and freely chosen employment, particularly for women, young people and persons of African descent. The Committee also requests the Government to provide updated statistical information on labour market trends in the country, and particularly on the active population, employment, underemployment and unemployment rates, disaggregated by sex and age and, to the extent possible, by urban and rural area. The Committee further requests the Government to continue providing detailed and updated information on the manner in which it is ensured that the social partners, as well as representatives of all sectors of the economically active population concerned, are able to participate actively in the formulation, implementation, evaluation and review of employment policies and programmes, as envisaged in Article 3 of the Convention.

Education and vocational training. The Government reports the implementation between 2016 and July 2018 of the Project for the Strengthening of the Institutional Capacities of the Ministry of Labour and Social Security (MTSS) and the INEFOP, managed by the Inter-American Centre for Knowledge Development in Vocational Training (ILO/CINTERFOR). The objective of this project is to improve the development of vocational training policies through, among other measures, the updating of the descriptions of occupations and jobs in key sectors of the economy; and support for the design and implementation of the policy for occupational certification. In 2017, the implementation of a system of occupational certificates was agreed through a National Commission composed of representatives of the MTSS, INEFOP, the Vocational Technical Education Council – University of Labour of Uruguay (CETP/UTU), the Inter-Union Assembly of Workers – Workers’ National Convention (PIT–CNT) and various employers’ chambers. The Government also reports the implementation of the programme for the completion of educational cycles for employed workers, intended for workers in various sectors interested in completing the basic cycle of education and/or the baccalaureate. Moreover, 23 agreements were concluded in 2017 with public and private bodies in relation to training for employment, the completion of educational cycles and grants, benefiting over 7,000 young people. The Committee requests the Government to provide detailed and updated information, disaggregated by sex and age, on the results of the measures adopted to ensure linkages between education, vocational training and employment policies. The Committee also requests the Government to provide information on the measures adopted or envisaged in relation to education and vocational training to promote the employability of vulnerable groups.

Youth. The Government indicates that, under the terms of the Youth Employment Act No. 19133, subsidies are provided to enterprises to promote the recruitment of young workers through three arrangements. The Government refers to the “First Work Experience” system, through which a subsidy of 25 per cent of the monthly earnings of the worker is provided. This system is intended for young people between 15 and 24 years of age without previous formal work experience. The “Work Practice for School-Leavers” system provides a subsidy of 15 per cent of the monthly earnings of the worker to enterprises which recruit young people between 15 and 29 years of age who have completed their studies and are seeking a first job related to their qualifications. The third arrangement is so-called “Protected Youth Work”, which consists of a subsidy of 80 per cent (when women are recruited) and 60 per cent (when men are recruited) of the monthly wage of the worker, up to a maximum of two national minimum wages. Participants in this system are young unemployed people between 15 and 29 years of age from households in a situation of socio-economic vulnerability. The Committee notes that the Government also reports the implementation of the “I Study and Work Programme”, which offers a first formal work experience to young students between 16 and 20 years of age with a view to developing the necessary skills to gain access to the labour market and ensuring that they continue studying. The programme has quotas to promote the participation of young people of African descent, transsexuals, persons with disabilities and/or in a situation of economic vulnerability. The Government reports that in 2016 and 2017 evaluations were carried out of the first two years of the programme, which issued positive results in relation to the access of the participants to formality and their registration with educational centres. The Committee also notes the statistical data provided by the Government in its report on the young people who participated in the various employment programmes. The Committee requests the Government to continue providing detailed and updated information on the measures adopted or envisaged with a view to promoting access to the labour market and to self-employment for young people, and their impact. The Committee also requests the Government to provide updated statistical information on youth employment trends, disaggregated by age and sex.

Persons with disabilities. The Committee notes the adoption in 2018 of Act No. 19961 on the promotion of employment for persons with disabilities, which establishes employment quotas for persons with disabilities, to be introduced progressively by private enterprises with 25 workers or more. The recruitment quota varies depending on the total number of workers in the enterprise. The Act also establishes another series of measures to promote employment for persons with disabilities, such as the requirement for the employer to create the conditions and adopt the necessary adaptations in the workplace so that the worker can perform the work adequately. It also establishes penalties for enterprises which do not comply with the requirements of the Act. With regard to the public sector, the Committee notes that, in its concluding observations of 20 July 2017, the CESC expressed concern at the fact that the 4 per cent hiring quota for persons with disabilities in the public sector is not applied consistently in all areas of the sector (E/C.12/URY/CO/5, paragraph 19). The Committee requests the Government to provide detailed and updated information on the measures adopted or envisaged to promote employment opportunities for persons with disabilities on the regular labour market. The Committee also requests the Government to provide information on the impact of these measures, including statistical data on the total number of participants, disaggregated by age, sex, region and type of disability.

Workers in the informal economy. In reply to its previous comments, the Committee notes the information contained in the Government’s report on the various measures adopted to promote the formalization of workers and enterprises. Among these measures, the Government refers to the “mono-contribution”, which consists of a single contribution for access to the social security system for enterprises of small economic dimensions which meet a series of requirements. The Government indicates that, since its adoption in 2001, the number of economic activities included under this system has been expanded. In 2011, the “social mono-contribution” was created as a single contribution intended to facilitate the inclusion in the formal sector of vulnerable persons or members of households below the poverty line and to ensure their access to social security. The Government adds that in December 2015 there were 25,046 enterprises registered with the general scheme and 2,194 enterprises registered with the “social mono-contribution” scheme. However, the Committee notes that, in its concluding observations, the CESC expressed concern at the difficulties faced by workers in the informal sector of the economy and self-employed workers to have access to the “social mono-contribution” system. With regard to the domestic sector, in which the Government indicates that there is a high rate of informality and reports that, following the approval of the Act to regulate domestic work, there has been an increase in the number of domestic workers with access to sickness and maternity benefit, and unemployment benefit. Finally, the Government refers to the implementation of awareness-raising measures through the media and the Social Security Education Programme in educational centres with the objective of informing the population of their rights and obligations in relation to social security. However, the Committee notes that, according to the Continuous Household Survey of the INE, in February 2019 some 23.4 per cent of the active population was not registered with the social security system. The Committee requests the Government to continue providing detailed and updated information on the measures adopted or envisaged for the integration of informal economy workers into the formal labour market. It also requests the Government to continue providing information, including statistical data on the impact of the measures adopted or envisaged to increase the number of contributors to the social security system, and particularly informal economy workers, own-account workers and domestic workers.

Promotion of cooperatives. In reply to the Committee’s previous comments, the Government indicates that, according to the census carried out by the National Cooperative Institute (INACOOP) in 2017, the number of cooperatives has tripled since 2008, reaching a total of 3,665. The Committee notes the detailed information provided by the Government on the programmes implemented in various departments to promote and support cooperatives. Among other projects, the Government indicates that in 2017, within the framework of the cooperation agreement concluded between the municipal authorities of Montevideo and the Ministry of Social Development, nine cooperatives had access to 32 projects (generating 220 new jobs) to provide the municipal authorities with, among other services, the monitoring of public areas in the city, and the construction and maintenance of green areas. The Government also refers to the implementation of a rural inclusion pilot project with the objective of promoting associative processes in rural areas and strengthening their organizational capacities. Various projects have also been adopted within the context of the so-called Cooperative Incubator in Strategic Areas of Production (INCUBACOOP), with the objective of promoting the development of cooperatives in sectors in which they are not traditionally present, such as environmental sciences and information and communication technology. In 2017, the Cooperative Training Programme (PROCOOP) was also adopted by INACOOP in collaboration with INEFOP and the Uruguayan Confederation of Cooperatives (CUDECOOP), which includes skills development and technical assistance activities for cooperatives and other social economy organizations. With regard to funding for cooperative development, the Government indicates that various budgetary credit lines are adapted to the specific needs of cooperatives through the Special Rotary Fund (FRECOOP). Innovations have also been introduced into the application of the Development Fund (FONDES–INACOOP), such as the establishment of an open window mechanism for the granting of initial support and the implementation of a business follow-up area. The Committee requests the Government to continue providing detailed and updated information on the impact of the measures adopted, including training subsidies and programmes, to facilitate employment creation and promotion by cooperatives, including for vulnerable persons.