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Repetition Article 2(1) of the Convention. Inclusion of labour clauses in public contracts. Further to its previous comments, the Committee notes that the Government’s report merely repeats information that was sent previously and does not refer to any progress made with regard to bringing the national legislation into line with the provisions of the Convention. The Committee previously noted the reference made by the Government to two communications, No. DM.359.2008 of 5 May 2008 and No. DM.374.2008 of 7 May 2008, sent by the Ministry of Work and Labour Development (MITRADEL) to the Ministry of Economic and Financial Affairs (MEF) and the Directorate-General of Public Procurement, respectively. Noting that the situation remains unchanged, the Committee reiterates that clauses in public contracts which merely recall the applicability and binding nature of national labour legislation, in particular with regard to wages, working hours and other conditions of work, do not comply with the provisions of the Convention.Moreover, the Committee understands that the Directorate-General of Public Procurement, with the assistance of the World Bank, has developed a strategic plan to modernize the public procurement system and give it greater transparency and effectiveness. The plan comprises six tiers, including one concerned with ensuring the uniformity of tendering procedures and the preparation of standard documents. In this regard, the Committee considers that the Government might take this opportunity to adopt legislative provisions which would finally make it possible to bring the legislation into line with the provisions of the Convention. While reminding the Government that it can avail itself of technical assistance from the Office if it so desires, the Committee urges it to take the necessary steps to give effect to the provisions of the Convention and requests it to keep the Office informed of any developments, particularly in the legislative field.
Article 2, paragraph 1, of the Convention. Inclusion of labour clauses in public contracts. Further to its previous comments, the Committee notes with regret that the Government’s report merely repeats information that was sent previously and does not refer to any progress made with regard to bringing the national legislation into line with the provisions of the Convention. The Committee previously noted the reference made by the Government to two communications, No. DM.359.2008 of 5 May 2008 and No. DM.374.2008 of 7 May 2008, sent by the Ministry of Work and Labour Development (MITRADEL) to the Ministry of Economic and Financial Affairs (MEF) and the Directorate-General of Public Procurement, respectively. Noting that the situation remains unchanged, the Committee reiterates that clauses in public contracts which merely recall the applicability and binding nature of national labour legislation, in particular with regard to wages, working hours and other conditions of work, do not comply with the provisions of the Convention.
Moreover, the Committee understands that the Directorate-General of Public Procurement, with the assistance of the World Bank, has developed a strategic plan to modernize the public procurement system and give it greater transparency and effectiveness. The plan comprises six tiers, including one concerned with ensuring the uniformity of tendering procedures and the preparation of standard documents. In this regard, the Committee considers that the Government might take this opportunity to adopt legislative provisions which would finally make it possible to bring the legislation into line with the provisions of the Convention. While reminding the Government that it can avail itself of technical assistance from the Office if it so desires, the Committee urges it to take the necessary steps to give effect to the provisions of the Convention and requests it to keep the Office informed of any developments, particularly in the legislative field.
Article 2, paragraph 1, of the Convention. Inclusion of labour clauses in public contracts. The Committee notes that in reply to its repeated observations the Government refers to two communications Nos DM.359.2008 of 5 May 2008 and DM.374.2008 of 7 May 2008, transmitted by the Ministry of Work and Labour Development (MITRADEL) to the Ministry of the Economy and Finance (MEF) and the General Directorate of Public Contracts, respectively. Under the terms of these communications, MITRADEL wishes to examine, in consultation with the other authorities that are competent in the field, the possibility of adopting additional legislation to harmonize national law and practice with the provisions of the Convention. The Committee regrets that, despite the numerous comments that it has made over the past 25 years, the Government has still not adopted concrete measures and is still at the stage of mere internal consultations. As the Government indicates itself in the above communications, a Bill, which was to bring the law on public contracts into conformity with the provisions of the Convention, has been under preparation for over 15 years and no firm information is provided concerning the current situation with regard to this Bill. The Committee also notes that at the 97th Session of the International Labour Conference (June 2008), the Minister of Labour affirmed at the Conference Plenary that the Government of Panama has included a clause in tenders for the extension of the Panama Canal requiring the enterprises concerned to comply with the principles of decent work for the 7,000 direct jobs to be created.
In this respect, the Committee wishes to refer to paragraphs 44 and 46 of the General Survey that it prepared in 2008 on labour clauses in public contracts, which clarify the relationship between Convention No. 94 and the 1998 ILO Declaration on Fundamental Principles and Rights at Work. As the Committee emphasized, even though Convention No. 94 does not preclude the insertion of other labour clauses, such as those requiring compliance with core labour standards, as reflected in the ILO’s fundamental Conventions, including those aimed, for example, at preventing the use of child labour and anti-union practices, it calls for the insertion of labour clauses of a very specific content. The Convention seeks to ensure that public contracts are executed under conditions of labour which are not less favourable than those established by collective agreement, arbitration award or national laws or regulations for work of the same character in the trade or industry concerned in the district where the work is carried out. This means in effect ensuring the application to the workers concerned of the best locally-established conditions of work. In this manner, the contractor is obliged to apply the most advantageous conditions established in the industrial sector and geographical region in question in relation to wages, including overtime pay, and other working conditions, such as work hour limits and holiday entitlement. The concrete terms of this obligation incumbent on the selected bidder and any subcontractors are to be reflected in a standard contractual clause which has to be effectively enforced, notably through a system of specific sanctions. The Committee also recalls that the Convention applies not only to construction contracts, but also to contracts for supplies and services.
In the light of the above, the Committee urges the Government to take all the necessary measures without further ado to bring national law and practice into conformity with the Convention and requests it to keep the Office informed of any developments in this respect.
With a view to assisting the Government in its efforts to give effect to the Convention, the Committee attaches a copy of a Practical Guide prepared by the Office based principally on the conclusions of the abovementioned General Survey. It also recalls that the Government may, if it so wishes, avail itself of the Office’s technical assistance.
The Committee notes that the Government’s report has not been received. It must therefore repeat its previous observation which read as follows:
The Committee notes that no progress has as yet been made with regard to the adoption of the draft Bill designed to give effect to the basic requirement of the Convention due to various circumstances such as the merging of the Ministries of Planning and Political Economy and the 1999 presidential elections. The Committee notes that, by letter dated 12 September 2000, the Ministry of Work and Labour Development (MITRADEL) transmitted the draft Bill to the Ministry of Finance for approval and eventual submission to the Legislative Assembly. The Committee firmly hopes that this amendment will be adopted very shortly and requests the Government to keep it informed in its next report of any positive developments in this respect.
In addition, the Committee asks the Government to provide in accordance with Article 6 of the Convention and Part V of the report form all available information on the practical application of the Convention, including, for instance, copies of public contracts, model specifications for public tenders or sample text of labour clauses currently in use, official reports or statistics bearing on the enforcement of relevant legislation (e.g. number and nature of infringements observed and penalties imposed) and any other particulars regarding the practical fulfilment of the conditions prescribed by the Convention.
The Committee regrets to note that despite all assurances given in the last 25 years for the adoption of measures to give effect to the Convention, the new public procurement legislation (Law No. 22 of 2006) continues to fail to comply with the basic requirements of the Convention. The Committee hopes that the Government will make every effort to take the necessary action in the very near future.
Finally, the Committee seizes this opportunity to refer to this year’s General Survey which contains an overview of public procurement practices and procedures in so far as labour conditions are concerned and makes a global assessment of the impact and present-day relevance of Convention No. 94.
Further to its previous observation, the Committee notes the Government’s reply and the attached documents, including the draft Bill to add a new paragraph to section 28 of Act No. 56 of 27 December 1995.
According to the Government’s report, no progress has as yet been made with regard to the adoption of the draft Bill designed to give effect to the basic requirement of the Convention due to various circumstances such as the merging of the Ministries of Planning and Political Economy and the 1999 presidential elections. The Committee notes that, by letter dated 12 September 2000, the Ministry of Work and Labour Development (MITRADEL) has transmitted the draft Bill to the Ministry of Finance for approval and eventual submission to the Legislative Assembly. The Committee firmly hopes that this amendment will be adopted very shortly and requests the Government to keep it informed in its next report of any positive developments in this respect.
Further to its previous observation, the Committee notes the Government's report and the attached documents, including Act No. 56 of 1995 concerning public contracts.
According to the Government's report, although the said Act does not include a provision requiring the insertion of labour clauses in public contracts, the Ministry of Work and Labour Development (MITRADEL) has elaborated a draft Bill to add a provision in section 28 of Act No. 56 so as to bring it in conformity with the Convention. In addition, the National Economic Council (CENA), whose function includes granting of favourable opinion on contracts for an amount between B/.250,000 and B/.2,000,000, considers it prudent that, pending the enactment of the above Bill, its requirement should be included in public contracts. CENA has authorized the Ministry of Finance, which is the body to set standards and inspect the system, to circulate to all public bodies the instruction concerning this requirement of public contracts.
The Committee takes due note of this information. It requests the Government to continue to provide information on any progress made towards the adoption of the above Bill, and to send a copy of it when adopted, as well as that of any instruction issued by the Ministry of Finance with regard to the inclusion of labour clauses in public contracts.
As to the questions raised in the previous direct request regarding the specifications of public tenders (model articles and conditions), the Committee notes the indication in the Government's report that the specifications are no longer in force since the adoption of Act No. 56. It asks the Government to supply information on any equivalent documents under the new Act.
The Committee notes with regret 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 it will contain full information on the following matters raised in its previous direct request:
The Committee noted the Specifications of Public Tenders (Model Articles and Conditions) supplied with the Government's previous report and pointed out the following:
1. The Government referred in its report to "Chapter III of the said Specifications on Special Conditions, Point 9 Legal Relations and Responsibilities, 9.1 Compliance with the Laws", which requires the contractor's compliance with all the laws and regulations concerned, including the Labour Code. The Committee notes this information and points out that the obligation for the contractors to comply with the legislative provisions is not sufficient to give effect to the Convention, since social or labour legislation generally provides for minimum standards only, and parties are free to agree, collectively or individually, upon more favourable conditions of work. It recalls that the purpose of the inclusion of appropriate labour clauses in public contracts (as required by Article 2 of the Convention) is to ensure that the workers concerned enjoy such higher conditions of work (including wages) as may have been established for work of the same character by collective agreements or otherwise. The Committee therefore requests the Government to indicate whether measures have been taken or envisaged to modify the terms of the above-mentioned "Specifications" in accordance with this requirement of the Convention. It also refers to Article 2(3) which calls for consultation with the organizations of employers and workers concerned before the determination or modification of the terms of the clauses to be included in contracts.
2. The Committee notes the model "Guarantee of Payment" included in the above-mentioned "Specifications", which ensures the payment by the guarantor company of wages due to the workers employed for the public works concerned. It notes however that this model is designed to set up the maximum amount of guarantee and provides in its paragraph 9 that payment of sums due to the workers should be done in proportion, if their total exceeds the prescribed maximum amount of guarantee, thus giving only partial effect to Article 5(2) of the Convention.
Meanwhile the Committee notes that Point 11.15 "Final Payment" of Chapter III of the Specifications requires, before the final payment under the contract, the presentation by the contractor of proof which shows that all the cost of workforce has been recompensed on behalf of the State (item 5). It requests the Government to indicate whether this covers the payment of wages to all the workers concerned whether or not they are in an employment relation with the State.
3. The Committee notes that, while some parts of the said Specifications are written in such terms as applicable to all public tenders, other parts including the "Guarantee of Payment" noted above provide model articles and conditions in relation only to public works ("LA OBRA" as defined by Point 1.39 of Chapter III). The Committee points out that the measures to give effect to the Convention should be taken not only regarding contracts for the construction, repair or improvement of public works but also in respect of contracts for supplies or equipment and the performance of services (Article 1(1)(c)(ii) and (iii)).
4. The Committee notes, in relation to Article 4(a)(iii) of the Convention requiring the posting of notices with a view to informing the workers of their conditions of work, that Point 13 "Posters or Plates" of Chapter III of the Specifications requires the contractor to place posters at workplaces following certain specifications and the model to be provided by the Ministry of Public Works. Please indicate whether such posters simply state the fact that the work is financed by the Government or the said model poster contains also notices of the conditions of work for workers.
The Committee notes that the Government's report has not been received. It must therefore repeat its previous observation on the following points:
Further to its previous observation, the Committee notes the Government's indication in the report to the effect that it intends to deal with the measures to apply this Convention in the tripartite labour commission which is examining the questions relating to the Labour Code. It hopes that the necessary measures will be taken in the near future and requests the Government to indicate any progress made in this regard. As to the questions raised in the previous direct request regarding the Specifications of Public Tenders (Model Articles and Conditions), the Committee notes that the Government's report gives no reply to them and repeats them in a new direct request. It hopes that the Government will supply the information requested.
The Committee hopes that the Government will make every effort to take the necessary action in the very near future.
The Committee notes with regret that the Government's report contains no reply to its comments. It hopes that the next report will include full information on the following matters raised in its previous direct request:
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 following matters raised in its previous direct request:
1. The Government referred in its report to "Chapter III of the said Specifications on Special Conditions, Point 9 Legal Relations and Responsibilities, 9.1 Compliance with the Laws", which requires the contractor's compliance with all the laws and regulations concerned, including the Labour Code. The Committee notes this information and points out that the obligation for the contractors to comply with the legislative provisions is not sufficient to give effect to the Convention, since social or labour legislation generally provides for minimum standards only, and parties are free to agree, collectively or individually, upon more favourable conditions of work. It recalls that the purpose of the inclusion of appropriate labour clauses in public contracts (as required by Article 2 of the Convention) is to ensure that the workers concerned enjoy such higher conditions of work (including wages) as may have been established for work of the same character by collective agreements or otherwise. The Committee therefore requests the Government to indicate whether measures have been taken or envisaged to modify the terms of the above-mentioned "Specifications" in accordance with this requirement of the Convention. It also refers to Article 2(3) which calls for consultation with the organisations of employers and workers concerned before the determination or modification of the terms of the clauses to be included in contracts.
The Committee noted that the draft Decree to give effect to this Convention which it had noted in its 1987 observation was no longer being studied for adoption because of the development in the public administration of the country. It further noted that the new national Government had taken note of the Committee's comments and was disposed to study the possibilities of taking the provisions of the Convention into a legislative instrument after consultation with all the sectors and entities concerned. The Committee hopes that the Government will take necessary measures to ensure the application of the Convention in the near future. It is also addressing a direct request to the Government regarding the Specifications of Public Tenders (Model Articles and Conditions) supplied with the Government's previous report.
Further to its previous observation, the Committee notes the Government's indication in the report to the effect that it intends to deal with the measures to apply this Convention in the tripartite labour commission which is examining the questions relating to the Labour Code. It hopes that the necessary measures will be taken in the near future and requests the Government to indicate any progress made in this regard.
As to the questions raised in the previous direct request regarding the Specifications of Public Tenders (Model Articles and Conditions), the Committee notes that the Government's report gives no reply to them and repeats them in a new direct request. It hopes that the Government will supply the information requested.
[The Government is asked to report in detail in 1997.]
The Committee notes the Specifications of Public Tenders (Model Articles and Conditions) supplied with the Government's report and points out the following:
1. The Government refers in its report to "Chapter III of the said Specifications on Special Conditions, Point 9 Legal Relations and Responsibilities, 9.1 Compliance with the Laws", which requires the contractor's compliance with all the laws and regulations concerned, including the Labour Code. The Committee notes this information and points out that the obligation for the contractors to comply with the legislative provisions is not sufficient to give effect to the Convention, since social or labour legislation generally provides for minimum standards only, and parties are free to agree, collectively or individually, upon more favourable conditions of work. It recalls that the purpose of the inclusion of appropriate labour clauses in public contracts (as required by Article 2 of the Convention) is to ensure that the workers concerned enjoy such higher conditions of work (including wages) as may have been established for work of the same character by collective agreements or otherwise. The Committee therefore requests the Government to indicate whether measures have been taken or envisaged to modify the terms of the above-mentioned "Specifications" in accordance with this requirement of the Convention. It also refers to Article 2(3) which calls for consultation with the organisations of employers and workers concerned before the determination or modification of the terms of the clauses to be included in contracts.
2. The Committee notes with interest the model "Guarantee of Payment" included in the above-mentioned "Specifications", which ensures the payment by the guarantor company of wages due to the workers employed for the public works concerned. It notes however that this model is designed to set up the maximum amount of guarantee and provides in its paragraph 9 that payment of sums due to the workers should be done in proportion, if their total exceeds the prescribed maximum amount of guarantee, thus giving only partial effect to Article 5(2) of the Convention.
The Committee notes from the Government's report that the draft Decree to give effect to this Convention which it noted in its 1987 observation is no longer being studied for adoption because of the development in the public administration of the country. It further notes that the new national Government has taken note of the Committee's comments and is disposed to study the possibilities of taking the provisions of the Convention into a legislative instrument after consultation with all the sectors and entities concerned.
The Committee hopes that the Government will take necessary measures to ensure the application of the Convention in the near future. It is also addressing a direct request to the Government regarding the Specifications of Public Tenders (Model Articles and Conditions) supplied with the Government's report.
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, which read as follows:
The Committee notes with interest the draft Decree prepared by the Ministry of Labour and Social Welfare in order to give effect to the Convention. In this connection, the Committee would be grateful if the Government would inform it whether it is considering including in the above project provisions concerning: (a) subcontractors or assignees of contracts to whom the Convention applies in accordance with Article 1, paragraph 3; (b) the manner in which the clauses to be included in public contracts shall be determined, in order to facilitate the implementation of the provisions of Article 2, paragraph 3, and the methods employed in order to consult organisations of employers and workers in this respect; (c) the measures that are considered appropriate to ensure that persons tendering for contracts are aware of the terms of the above clauses, in order to facilitate the adoption of the practical steps set out in Article 2, paragraph 4; (d) the steps that need to be taken in order to bring the employment conditions to the notice of all persons concerned, and the workers in particular, in accordance with the provisions of Article 4(a); (e) the measures to be taken to ensure the keeping of adequate records of the time worked by, and the wages paid to, the workers concerned, in order to ensure that the practical steps set forth in Article 4(b)(i) are adopted; (f) the sanctions that can be applied in the event of infringements of the clauses included in contracts concluded by public authorities, in accordance with the provisions of Article 5.
The Committee notes with interest the draft Decree prepared by the Ministry of Labour and Social Welfare in order to give effect to this Convention. The Committee requests the Government to supply information on the progress of the procedures for the adoption of the above draft and hopes that the draft will take into account the comments it made in its previous request being addressed directly to it.