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Article 4(2) and (3) of the Convention. Full consultation and direct participation of the social partners in the establishment and operation of the minimum wage fixing machinery. Further to its previous comment, the Committee notes the information provided by the Government in reply to the observations of the International Organisation of Employers (IOE) dated 30 August 2009.
The IOE indicated that a new constitutional text had been drawn up and then adopted by referendum without the effective participation of the main actors in the world of work and that article 328, paragraph 2, and transitional provision No. 25 of the new constitutional text, which provide for the annual progressive adjustment of the minimum wage so as to cover the cost of the household basket of goods (canasta familiar) do not take into account the direct participation of the employers and workers concerned, as required by this provision of the Convention.
In its reply dated 3 February 2010, the Government indicates that, under the terms of section 117(2) of the Labour Code, the minimum wage is adjusted annually with the participation of the National Wage Council (CONADES), a tripartite advisory body. It emphasizes in this respect that wages are only adjusted by the Minister of Labour and Employment in cases where a consensus decision has not been adopted by the CONADES. As the CONADES did not achieve consensus in the meetings prior to the adjustment of the minimum wage in 2009, the Minister of Labour and Employment, in accordance with section 118(3) of the Labour Code, increased the minimum wage on the basis of the consumer price index established by the competent authority.
In this respect, the Committee wishes to refer to paragraphs 233 and 234 of its 1992 General Survey on minimum wages, in which it indicates that the party responsible for carrying out the consultation should take into consideration what is stated or proposed by the party it consults, without this meaning that the Government has to comply with all the requests of the organization consulted, still less that it should enter into negotiations. The consultation must take place before decisions are taken and must be effective, that is to say that it must enable employers’ and workers’ organizations to have a useful say in matters that are the subject of consultation.
Furthermore, with reference to its previous observations concerning the current rate of the minimum wage, namely US$240 a month, and whether it allows workers a decent standard of living, the Committee notes that, according to the data of the National Institute of Statistics (INEC) concerning the cost of the household basket of goods (canasta familiar vital y básica), the minimum wage covers the cost of the so-called “subsistence” household basket of goods (US$382.64 out of a monthly income, for two persons, of US$448), but does not cover the cost of the so-called “basic” household basket of goods (US$535.56 out of a monthly income, for two people, of US$448). An increase of around 16 per cent would still be necessary to cover the needs of a family of five persons. While noting the increase of 10 per cent in the minimum wage in 2010, the Committee requests the Government to pursue its efforts to ensure a minimum wage rate that is sufficient to allow workers to cover their needs and those of their family. It also requests the Government to continue providing information on the minimum wage rates that are applicable and their adjustment through the CONADES, in full and effective consultation with employers’ and workers’ organizations.
Article 4, paragraphs 2 and 3, of the Convention. Full consultation and direct participation of the social partners in the establishment and operation of the minimum wage fixing machinery. The Committee notes the comments made by the International Organisation of Employers (IOE) dated 30 August 2009. The IOE indicates that a new constitutional text was drawn up and adopted by referendum on 28 September 2008 without the effective participation of the main actors in the world of work, which prevented an objective analysis of the matters to be regulated at the constitutional level. The IOE adds that section 328(2), as well as Transitional Provision No. 25 of the new constitutional text, which provide for the annual revision of the minimum wage on a gradual basis in order to cover the cost of the shopping basket (canasta familiar), do not take into account the direct participation of the employers and workers concerned, as required by this provision of the Convention. The Committee requests the Government to provide its comments in reply to the observations submitted by the IOE.
Furthermore, referring to its previous observation concerning the minimum wage rate currently in force and its ability to offer workers a decent standard of living, the Committee hopes that the Government will take all the necessary steps to ensure the application of sufficient minimum wage rates to enable workers to meet their essential needs and those of their families, and once again requests it to provide a copy of the legal text establishing this rate and to provide detailed information on the consultations held within the National Wage Council (CONADES).
The Committee notes the information provided by the Government in response to its previous observation.
With regard to the statistical information contained in the technical wage unit report attached to the Government’s report, the Committee understands that the current minimum wage stands at approximately US$160 per month. The Committee once again asks the Government to communicate a copy of the legal text establishing this rate and to provide detailed information on the consultations held within the National Wage Council (CONADES) which resulted in the most recent readjustment of the rate. The Committee would also like detailed information on the ability of such a rate to offer workers and their families a decent standard of living. The Committee notes that, according to various sources of information, the minimum wage rate is well below the poverty threshold and represents only a third of the income judged necessary to satisfy the essential needs of workers.
The Committee would like to take this opportunity to remind the Government that the Convention’s main objective is to guarantee workers a minimum wage allowing them a decent standard of living and that this objective can be truly met only if minimum wage rates are re-examined periodically, in accordance with Article 3 and Article 4, paragraph 1, of the Convention, so as to take into reasonable account the evolution of socio-economic realities. In cases where the minimum wage covers only a slim percentage of workers’ needs, the wage-fixing system is reduced to a mere formality and is rendered useless in terms of both combating poverty and ensuring social protection through acceptable minimum wage rates. The Committee therefore asks the Government to take the necessary measures to guarantee the application of minimum wages that are sufficient to enable workers to satisfy their essential needs and those of their families.
With regard to the payment of remuneration below the minimum wage rate to persons covered by apprenticeship contracts, the Committee recalls its previous comments in which it requested information on measures taken to ensure that apprentices in the industrial sector who are paid less than the minimum wage receive vocational training in the workplace. In its last report, the Government spoke of a bill approved in February 2006, the purpose of which is to amend section 168 of the Labour Code by widening the scope and increasing the duration of apprenticeship contracts (making it possible for workers in the handicrafts sector to be hired as apprentices for a maximum period of two years). In its amended form, section 168 also provides that the remuneration of an apprentice will be no less than 80 per cent of the salary normally paid for the same type of work. While noting the information on the bill in question – a copy of which is requested once it has been formally adopted – the Committee still considers concrete measures to be necessary in order to prevent apprenticeship contracts from being misused to evade the minimum wage rates in force. Such misuse would be in violation of the principle enshrined in Article 2, paragraph 1, of the Convention, according to which, once fixed, minimum wages shall have the force of law and shall not be subject to abatement. The Committee therefore asks the Government, once again, to specify how it ensures that persons covered by apprenticeship contracts, under section 168 of the Labour Code, really receive vocational training in the workplace, which would justify remuneration below the minimum wage generally applied.
Finally, the Committee would be grateful if the Government would continue providing, in accordance with Article 5 of the Convention and Part V of the report form, detailed information on the application of the Convention in practice, including, for instance, statistics on the results of inspections carried out and extracts of reports or official studies concerning the functioning of the minimum wage system, such as the annual activity reports of CONADES, etc.
The Committee notes the Government’s report and the attached documentation, in particular Ministerial Order No. 59 of 30 May 2000, which establishes the rules for the operation of the National Wage Council (CONADES) and sectoral committees. The Committee wishes to draw the Government’s attention on the following points.
Article 1, paragraph 1, and Article 4, paragraph 1, of the Convention. The Committee notes the list of 120 sectoral committees for the fixing of minimum wages by region, which was communicated by the Government in reply to its previous comments. In this respect, the Committee requests the Government to indicate the minimum wage rates currently in force for each category of worker and to transmit a copy of the legislative text setting these rates. The Committee also requests the Government to provide statistics on the number of workers covered by the minimum wage legislation and the evolution of minimum wage rates by occupational category of workers in recent years.
Article 2, paragraph 1. The Committee recalls its previous observations, in which it requested the Government to indicate the measures taken to guarantee that payment of remuneration below the minimum wage to persons covered by apprenticeship contracts, by virtue of section 168 of the Labour Code, is allowed only in cases of actual training. The Committee regrets to observe that the Government has not provided any substantive reply on this point, which had been raised by the Ecuadorian Confederation of Free Trade Unions (CEOSL), and it is bound once again to request information on the measures taken or envisaged to ensure that apprentices in the industrial sector paid less than this minimum rate receive vocational training at the workplace. The Committee also requests the Government to indicate whether it consulted employers’ and workers’ organizations prior to establishing the minimum wage provisions applicable to apprentices in the industrial sector.
The Committee notes that, by virtue of section 90 of the Children’s and Adolescent’s Code adopted on 23 December 2002, the remuneration of young apprentices shall be no less than 80 per cent of adult remuneration for the same type of work. The Committee takes this opportunity to once again recall that the adoption of lower minimum wage rates for groups of workers on account of their age should be regularly re-examined in the light of the principle of equal remuneration for work of equal value. The Committee considers that wage rates should be based on the quality and quantity of work and that special attention should be given to the equitable remuneration of young persons.
Article 5 and Part V of the report form. The Committee notes the statistics on the number of enterprises inspected in 1997 by the Department of Labour Protection to monitor the compliance with minimum wages provisions. Noting the Government’s statements that until now the information on labour inspections has not been analysed in a systematic manner, the Committee hopes that the Government will make every effort to collect and provide in its next report detailed information on the application of the Convention in practice and, in particular, statistics on the results of inspections carried out (for example, number of violations reported, types of sanctions imposed, etc.).
Moreover, the Committee notes the Government’s statement in its report that a system for the inspection of child labour is being organized, one of the duties of which will be to supervise the work of young apprentices. The Committee requests the Government to keep it informed of any progress in relation to this inspection procedure.
The Committee notes that the Government's report does not contain information in reply to its previous direct request. It once again asks the Government to supply the three annexes, referred to in its 1993 report, concerning labour inspection activities to ensure observance of the minimum wage and to continue to supply information on this matter including any relevant extracts from reports and statistical data.
In its previous comments, the Committee noted the information supplied by the Ecuadorean Confederation of Free Trade Unions (CEOSL) concerning the application of Article 2, paragraph 2, of the Convention. The CEOSL considers that the amendment of section 168 of the Labour Code, introduced by section 29 of Act No. 133 to revise the Labour Code, creates a new category of workers, "industrial apprentices", whose pay may not be less than 75 per cent of the minimum subsistence wage for a period of not more than six months.
In reply to the CEOSL observations, the Government indicated that before the amendment of section 168 of the Labour Code the labour legislation did not provide for any wages to be paid to apprentices and that the purpose of the new provision was to ensure to the apprentice the payment of remuneration which may not be less than 75 per cent of the minimum subsistence wage but which may also be higher. In addition, Act No. 133 makes it compulsory, in apprenticeship contracts, for a written contract to be drawn up in the presence of the labour inspector, who will register it: 592 apprenticeship contracts, most of them in small-scale industries, were registered in 1992.
While noting this information, the Committee recalled that a wage lower than the minimum wage may be allowed for apprentices provided that in exchange they actually receive training during working hours and at the place of work which enables them to acquire skills in a trade or occupation. It asked the Government to indicate the measures taken or under consideration to ensure that persons holding an apprenticeship contract may be paid a wage lower than the minimum subsistence wage only if, in return, they receive effective training.
In its report, received late, the Government states that measures in this direction are in process of adoption. The Committee trusts that the Government will not fail to indicate in the near future the measures adopted to ensure that payment of a wage lower than the minimum subsistence wage for holders of an apprenticeship contract may be applied only in return for effective training.
The Committee again asks the Government to provide the three annexes referred to in its previous report (1993) concerning labour inspection activities to ensure observance of the minimum wage. It also asks the Government to continue to provide information on this point, including extracts of reports and all relevant statistical data.
In its previous comments the Committee noted the information sent by the Ecuadorean Confederation of Free Trade Unions (CEOSL) concerning the application of Article 2, paragraph 1, of the Convention. The CEOSL considers that the amendment of section 168 of the Labour Code, introduced by section 29 of Act No. 133 to revise the Labour Code, creates a new category of workers "industrial apprentices" whose pay may not be less than 75 per cent of the minimum subsistence wage, for a period of no more than six months.
The Committee asked the Government to indicate the measures taken to ensure that people employed under the terms of an apprenticeship contract under section 168 of the Labour Code, and whose pay may not be lower than 75 per cent of the minimum subsistence wage, receive on-the-job training.
The Government indicates in its report that before the amendment of section 168 of the Labour Code, the labour legislation did not provide for any wages to be paid to apprentices. The purpose of the new provision is to ensure to the apprentice the payment of remuneration which may not be less than 75 per cent of the minimum subsistence wage but which may also be higher. The Government emphasizes that, for apprenticeship contracts, Act No. 133 requires a written contract to be drawn up in the presence of the labour inspector, who will register it. The Government indicates that 592 apprenticeship contracts, most of them in small-scale industries, were registered in 1992.
The Committee takes note of this information. It recalls that a wage lower than the minimum wage may be allowed for apprentices provided that in exchange they really receive training during working hours and at the place of work which enables them to acquire skills in a trade or occupation. It asks the Government to indicate the measures taken or under consideration to ensure that persons holding an apprenticeship contract may be paid a wage lower than the minimum subsistence wage only if, in return, they receive effective training.
The Committee notes the information supplied by the Government concerning the activities of the labour inspectorate for the enforcement of the minimum wage. It notes however that the three annexes mentioned in the report have not been received. It would be grateful if the Government would communicate them to the ILO.
The Committee also notes the Government's reference to modifications to the Labour Code brought about by Act No. 133 of 21 November 1991, including the new provision added to section 603 concerning the claim of wages and salaries due, and the new provision of section 605 linking the amount of fines with the minimum wage rate.
The Committee requests the Government to continue providing information on the labour inspection activities related to the application of the minimum wage, and to supply extracts of reports and statistical information as much as possible.
In its previous observation, the Committee noted the information supplied by the Ecuadorian Confederation of Free Trade Unions (CEOSL) concerning the application of Article 2, paragraph 1, of the Convention. By virtue of section 29 of Act No. 133 to revise the Labour Code, which amends section 168 of the Labour Code, workers can be recruited under an apprenticeship contract, of which the duration may not be more than six months, at remuneration which cannot be less than 75 per cent of the minimum living wage. The number of persons recruited under this form of contract cannot exceed 10 per cent of the number of workers in the enterprise. In the event of the continuation of the employment relationship at the end of the six-month period, the contract is converted into a contract without limit of time. The objective of this apprenticeship contract is to learn a trade or the special characteristics of a job which is manual, technical or which requires a skill.
The Ecuadorian Confederation of Free Trade Unions considers that this amendment to section 168 of the Labour Code creates a new category of workers who may be called "industrial apprentices" who are paid remuneration which is lower than the minimum wage.
The Committee notes that the Government has not made observations on these comments in its report, as it was invited to do in April 1992.
The Committee refers to paragraphs 169 and 176 of its 1992 General Survey on Minimum Wages, in which it indicates that the fixing of minimum wages as a function of certain criteria such as age must respect general principles, and particularly those contained in the Preamble of the Constitution of the ILO, which include equal remuneration for work of equal value. Furthermore, the Committee refers to the comments made in paragraph 177 of the above General Survey, according to which the concept of apprenticeship refers to persons who, irrespective of their age, are being trained at their place of work.
The Committee requests the Government to indicate the measures which have been adopted to ensure that the persons employed in enterprises under an apprenticeship contract by virtue of section 168 of the Labour Code, as amended, and whose remuneration must not be less than 75 per cent of the minimum living wage, undergo vocational training at their place of work. It also requests the Government to supply information on the manner in which the representative organizations of employers and of workers were fully consulted with regard to the changes made to the system of fixing minimum wages.
The Committee is also addressing a direct request to the Government on certain points.
[The Government is asked to report in detail for the period ending 30 June 1994.]
The Committee notes that the Government's report has not been received. It hopes that a report will be supplied for examination by the Committee at its next session and that it will contain full information on the matters raised in its previous direct request:
Article 5 of the Convention. With reference to its previous comments, the Committee takes noted that the "Bulletin of Statistics and Legislation concerning the Labour Inspection Service. Summary of the period 1984 to 1987" contains no information on the activities of the labour inspectorate relating to the observance of the provisions on minimum wages. The Committee also noted that section 3, subsection 2, of the new Regulations concerning the health and safety of workers and the improvement of the working environment, which define the powers and responsibilities of the Ministry of Labour in this field, provides that the Ministry is responsible for collecting data at the national level concerning the composition and number of the working population, working hours and the number of occupational accidents and diseases. The Committee trusts that, independently of the provisions of the above Regulations, the labour authorities and in particular the labour inspectorate will ensure, in accordance with the provisions of the Labour Code (sections 604 to 609) that the provisions concerning minimum wages are effectively applied. The Committee therefore requests the Government to provide information on the activities carried out by the labour inspectorate to ensure the application of the standards concerning minimum wages, and to supply extracts from labour inspection reports on the visits made, the infringements registered and the penalties imposed.
The Committee notes the information supplied by the Ecuadorian Confederation of Free Trade Unions (CEOSL) concerning the application of Article 2, paragraph 1, of the Convention. By virtue of section 29 of Act No. 133 to revise the Labour Code, which amends section 168 of the Labour Code, workers can be recruited under an apprenticeship contract, of which the duration may not be more than six months, at remuneration which cannot be less than 75 per cent of the minimum living wage. The number of persons recruited under this form of contract cannot exceed 10 per cent of the number of workers in the enterprise. In the event of the continuation of the employment relationship at the end of the six-month period, the contract is converted into a contract without limit of time. The objective of this apprenticeship contract is to learn a trade or the special characteristics of a job which is manual, technical or which requires a skill.
The Committee notes that the Government has not made observations on these comments, as it was invited to do in April 1992.
The Committee refers to paragraphs 169 to 176 of its 1992 General Survey on Minimum Wages, in which it indicates that the fixing of minimum wages as a function of certain criteria such as age must respect general principles, and particularly those contained in the Preamble of the Constitution of the ILO, which include equal remuneration for work of equal value. Furthermore, the Committee refers to the comments made in paragraph 177 of the above General Survey, according to which the concept of apprenticeship refers to persons who, irrespective of their age, are being trained at their place of work.
The Committee is also addressing a direct request to the Government on a number of points.
The Committee notes with interest the information contained in the Government's report and in particular Act No. 001 of 6 October 1986 determining minimum living wages and salaries and increasing wages and salaries.
Article 5 of the Convention. With reference to its previous comments, the Committee takes note of the information supplied by the Government in its report to the effect that the present methods of supervising the application of the Convention are adequate. However, the Committee notes that the "Bulletin of Statistics and Legislation concerning the Labour Inspection Service. Summary of the period 1984 to 1987" contains no information on the activities of the labour inspectorate relating to the observance of the provisions on minimum wages. The Committee also notes that section 3, subsection 2 of the new Regulations concerning the health and safety of workers and the improvement of the working environment, which define the powers and responsibilities of the Ministry of Labour in this field, provides that the Ministry is responsible for collecting data at the national level concerning the composition and number of the working population, working hours and the number of occupational accidents and diseases. The Committee trusts that, independently of the provisions of the above Regulations, the labour authorities and in particular the labour inspectorate will ensure, in accordance with the provisions of the Labour Code (sections 604 to 609) that the provisions concerning minimum wages are effectively applied. The Committee therefore requests the Government to provide information on the activities carried out by the labour inspectorate to ensure the application of the standards concerning minimum wages, and to supply extracts from labour inspection reports on the visits made, the infringements registered and the penalties imposed.