Observation (CEACR) - adopted 2021, published 110th ILC session (2022)

Minimum Wage Fixing Convention, 1970 (No. 131) - Bolivia (Plurinational State of) (Ratification: 1977)

Other comments on C131

Observation

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The Committee notes the observations of the Confederation of Private Employers of Bolivia (CEPB), received on 31 August 2021, and of the International Organisation of Employers (IOE), received on 1 September 2021. The Committee also notes the observations of the International Trade Union Confederation (ITUC), received on 1 September 2021.

Follow-up to the conclusions of the Committee on the Application of Standards (International Labour Conference, 109th Session, June 2021)

The Committee notes that, for the third consecutive year, the Conference Committee on the Application of Standards (Conference Committee) examined the application of the Convention by the Plurinational State of Bolivia. The Committee observes that the Conference Committee once again urged the Government to: (i) carry out full consultations with the social partners with regard to minimum wage setting; (ii) take into account the needs of workers and their families as well as economic factors when determining the level of the minimum wage as set out in Article 3 of the Convention; and (iii) accept an ILO direct contacts mission before the next session of the International Labour Conference in 2022. The Conference Committee also requested the Government to avail itself, without delay, of ILO technical assistance to ensure compliance with the Convention in law and practice.

Articles 3 and 4(1) and (2) of the Convention. Elements for the determination of the level of the minimum wage and full consultations with the social partners. In its previous comments, the Committee observed that divergences persisted between the Government and the CEPB and the IOE regarding both the holding of full and good faith consultations with the representative organizations of employers and the criteria reportedly taken into consideration in determining the minimum wage. The Committee notes the Government’s indication in its report that: (i) a series of mechanisms have been adopted for the direct participation of both employers and workers and meetings have been held with each of them in light of the principle of equality; (ii) these measures were not effective due to the positions adopted by the employers’ representatives, which led to the Government taking the decisions concerned, taking into consideration the national situation and the economic conditions of employers and workers; (iii) the increase in the national minimum wage for each financial year is determined on the basis of prior macroeconomic analysis and taking into account inflation, the Gross Domestic Product (GDP) and other variables, which are presented and assessed in the various meetings held for that purpose, including those held by the Government with the Bolivian Central of Workers (COB), in which the claims of that organization are considered; in view of the circumstances resulting from the COVID-19 pandemic, Supreme Decree No. 4501 of 1 May 2021 provided for an increase of only 2 percent in relation to the national minimum wage set in the 2019 financial year; and (iv) a direct contacts mission is not necessary as no difficulty is being experienced in the application of the Convention. Furthermore, the Committee notes the hope expressed by the IOE that the Plurinational State of Bolivia will make progress in the application of the Convention in accordance with the conclusions of the Conference Committee and in close consultation with the CEPB. The Committee further notes the CEPB’s indication that: (i) with the adoption of Supreme Decree No. 4501 of 1 May 2021, the centralization of dialogue continued solely with workers’ representatives and all prior consultation with employers’ representatives was omitted; (ii) their participation was prevented in the establishment, operation and modification of the machinery for the fixing of the national minimum wage and they were not able to put forward criteria in this regard; and (iii) objective technical parameters adapted to the real situation were absolutely not taken into consideration, in particular taking into account the difficult situation experienced due to the pandemic and its impact on economic trends and performance and on employers. Finally, the Committee notes the indication by the ITUC that: (i) while highlighting the efforts made by the Government to improve the life of workers, the Government should continue to organize consultations on the fixing of minimum wages in accordance with the Convention, enabling representative organizations to hold in-depth discussions on the machinery for fixing minimum wages, which does not mean codetermination of the minimum wage; and (ii) the increases in the minimum wage have taken fully into account economic factors. The Committee once again observes that contradictions and divergences persist between the Government and the CEPB concerning the holding of full and good faith consultations with the representative organizations of employers and on the criteria taken into account in determining the minimum wage. In this context, the Committee once again notes with regret the Government’s refusal to accept a direct contacts mission to the country with a view to finding a solution to the difficulties raised in the application of the Convention and to have recourse to ILO technical assistance in this respect. The Committee considers that the direct contacts mission could contribute to finding solutions to the divergences indicated and assist in the full application of the Convention. The Committee firmly expects that the Government will review its position and that a mission can take place before the 110th Session of the International Labour Conference, as the Conference Committee has been requesting since 2018.

[The Government is asked to reply in full to the present comments in 2022.]