Observation (CEACR) - adopted 2022, published 111st ILC session (2023)

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 submitted jointly by the Confederation of Workers of Venezuela (CTV), and the Federation of University Teachers’ Associations of Venezuela (FAPUV), the Independent Trade Union Alliance Confederation of Workers (CTASI), as well as the observations submitted by the Federation of Chambers and Associations of Commerce and Production of Venezuela (FEDECAMARAS), transmitted together with the Government’s report.

Articles 1 and 2 of the Convention. Implementation of the employment policy within the framework of a coordinated economic and social policy. Measures to respond to the economic crisis. The Committee takes note of the information provided by the Government regarding the measures adopted with a view to promoting and guaranteeing the protection and generation of employment in the country. The Government refers to the continued adoption of various decrees establishing security of employment for public and private sector workers for a period of two years, with a view to protecting and preserving jobs in the country. The Government once again indicates that during this period no dismissals may be made without just cause and dismissals may only be carried out in accordance with the procedures established in the labour legislation. The Government informs that the security of employment policy was extended until 2022. The Committee also notes that, in their observations, CTASI, CTV and FAPUV argue that the security of employment decrees do not generate jobs, since they are not always effective due to the small number of workers in the formal sector. FEDECAMARAS argues that the security of employment policy has a negative impact on productivity, which has led to a loss of interest among employers in hiring workers. FEDECAMARAS adds that, in order to achieve more efficient results in terms of employment and productivity, the policy should be adjusted to offer greater protection only to those workers who are in a situation of greater vulnerability.

The Committee notes, on the other hand, the Government’s indications that a series of measures have been adopted with a view to implementing an ongoing wage protection policy that is adjusted to the economic reality of the country. In particular, the Government indicates that, under the last salary increase, the minimum wage was set at 130 bolívares per month as of 15 March 2022 and the minimum monthly amount that workers must receive through the “socialist cestaticket” food subsidy was set at 45 bolívares. The Government indicates that together the minimum wage and the “socialist cestaticket” constitute the minimum legal income to be received by workers, which has been increasing progressively. The Government also refers to the implementation of various social programmes aimed at protecting vulnerable households, such as the Hogares de la Patria (Homes of the Motherland) programme, through which a monthly subsidy is granted based on the number of members of the family group. The Committee notes that, in its observations, FEDECAMARAS points out that the national minimum wage policy is not adjusted to the economic reality of the country, since the inflation rate reported by the Central Bank of Venezuela is much higher than the nominal adjustments to the minimum wage. In this regard, FEDECAMARAS states that, although 13 salary adjustments were decreed from 2013 to 2022, the minimum wage has fallen by 45.3 per cent. FEDECAMARAS points out that, taking into consideration the high inflation and the devaluation of the national currency, the minimum wage is equivalent to only US$16 per month and the food subsidy to US$5.85 per month.

Finally, the Government indicates that, during the reporting period, discussions were initiated in the National Assembly on 10 special laws for the benefit of specific categories of workers that are intended to complement the provisions of the Basic Labour Act (LOTT), including an Act on Domestic Workers, an Act on the Work of Persons with Disabilities and an Act on Home Workers. The Government indicates that it is expected that, within the framework of the public consultations held by the National Assembly in relation to this draft legislation, priority will be given to consultations with employers’ and workers’ organizations through an effective, open and inclusive dialogue. The Committee requests the Government to continue to provide detailed and updated information on the nature, scope and impact of the specific measures taken to develop and adopt an active employment policy aimed at promoting full, productive and freely chosen employment in full compliance with the Convention. The Committee also requests the Government to provide information on the status of the adoption of the ten special laws concerning specific categories of workers and to send a copy of these laws once they have been adopted.

Labour market trends. The Committee notes the Government’s indications that, in the first half of 2021, the employment rate was 91.1 per cent. In addition, the Government indicates that, from 2011 to the first half of 2021, the employment rate of women increased by 20.2 per cent, with a total of 5,205,275 women in employment. The employment rate of men also increased by 20.2 per cent, with a total of 8,190,482 men in employment. The Government indicates that, in the same period, the number of persons employed in the formal sector increased from 6,774,123 to 7,042,956, and the number employed in the informal sector increased from 5,230,828 to 6,352,801. The Committee notes CTASI, CTV and FAPUV’s allegations that the informal sector is growing disproportionately due to the lack of opportunities in the formal sector. In this regard, they point out that, according to data from the national survey of living conditions (ENCOVI), between 2014 and 2021, formal employment decreased by 21.8 percentage points. They indicate that only 40 per cent of those employed are in the formal sector. Regarding unemployment levels, the Government reports that, between 2019 and 2021, the unemployment rate increased from 6.6 per cent to 8.9 per cent. The number of unemployed persons aged 65 years and over increased from 59,789 in 2019 to 147,679 in 2020. The Committee notes that, in its observations, FEDECAMARAS highlights the need to reconcile the figures from the different official sources to effectively determine the impact on employment of the economic downturn, the exile of more than six million Venezuelan citizens and the COVID-19 pandemic. FEDECAMARAS stresses that it is also necessary to review, update and jointly discuss the statistical information from different sources, both official and private, to serve as a basis for defining employment policy. The Committee requests the Government to continue to provide detailed information, including updated statistics, disaggregated by sex, age and rural and urban areas, on the labour market situation and trends, including on employment, unemployment and underemployment rates (visible and invisible) and informality. It also requests the Government to provide detailed and updated information on the functioning of the labour market information system, including information on how the data collected are used to design, implement and review the employment policy measures that have been taken or are planned.

Education and training. The Committee notes the Government’s indication that, through the Meeting Centres for Education and Work (CEETs), together with the implementation of various Missions and the National Institute for Socialist Training and Education (INCES), measures are provided for the professionalization of workers, such as certification, accreditation, and vocational education and training. The Committee also notes the statistical information provided by the Government regarding the number of workers served by the CEETs, as well as the number of certifications awarded for inventiveness, innovation and improved productivity. However, the Committee notes that CTASI, CTV and FAPUV maintain that the training programmes provided have limited scope. In this regard, they point out that, according to data from the 2021 ENCOVI, the proportion of unskilled workers had increased from 9.7 per cent to 36 per cent over the preceding five years. Likewise, CTASI, CTV and FAPUV allege that the educational system is deteriorating due to the closing or inactivity of educational institutions, the exodus of teachers and students and the steady and growing decline in the number of students enrolled. CTASI, CTV and FAPUV indicate that, according to data from a study by the Andrés Bello Catholic University (UCAB), between 2018 and 2022, some 1.2 million young people dropped out of education and the number of students enrolled in basic education decreased by 15.7 per cent. They also allege that 85 per cent of educational centres do not have access to the internet, 69 per cent have limited electrical services and 45 per cent do not have water. The Committee refers to its comments on the application of the Human Resources Development Convention, 1975 (No. 142), and requests the Government to provide detailed and updated information on the scope and impact, including statistical information disaggregated by age and sex, of the measures implemented in the field of education and vocational training and their relation to potential employment opportunities. The Committee also requests the Government to provide detailed information on the measures taken to ensure effective coordination between education and vocational training policies and programmes and employment policies and programmes.

Youth employment. The Committee notes the Government’s indication that, in the first half of 2021, the unemployment rate among young people aged 15 to 24 years was 17.2 per cent (20.6 percent among women and 15.3 percent among men), which is almost double the national rate (8.9 percent). The Government adds that young people represent 25.8 per cent of the total unemployed population, 12.6 per cent of the employed population and 33.1 per cent of the inactive population. The Committee also notes that the Government reports the continued implementation of the Major Youth Employment Mission with the objective of providing opportunities for young people to enter the labour market. The Government indicates that, in the framework of this Major Mission, 2,181,468 young people received assistance, more than 500,000 young people have been placed in different workplaces, and support has been provided to more than 38,000 young people through the Emprender Juntos platform. The Committee notes, however, that CTASI, CTV and FAPUV maintain that the work offered to young people through the Major Mission is precarious, low-paying, unstable and subject to political affiliation. FEDECAMARAS points out that it is necessary to review the labour regime and benefits granted to young people in order to stimulate their employment and stem the flow of young people to other countries. In this regard, CTASI, CTV and FAPUV note that, according to ENCOVI data from 2021, some 86 per cent of migrants are young people of working age who migrate in search of employment. Finally, the Committee notes that the Government has still not responded to its request, first made in 2016, to provide an evaluation, prepared with the participation of the social partners, of the active employment policy measures implemented to reduce youth unemployment and promote their sustainable integration into the labour market. The Committee therefore expresses its firm hope that the Government will present in its next report an evaluation, undertaken with the participation of the social partners, of the impact of the active employment policy measures implemented to reduce youth unemployment and promote their sustainable integration into the labour market, particularly for the most underprivileged categories of young persons. The Committee also requests the Government to continue providing updated detailed statistical data, disaggregated by age and sex, on youth employment trends.

Development of small and medium-sized enterprises (SMEs). The Committee notes the Government’s indication that, in accordance with Article 308 of the Constitution of the Bolivarian Republic of Venezuela, the State is responsible for protecting and promoting, among other entities, small and medium-sized industries, cooperatives, micro-enterprises and any other form of community association. The Government indicates that the body responsible for the protection and promotion of SMEs is the Ministry of People’s Power for National Commerce. The Committee also notes that the Government refers to the adoption, in the context of the COVID-19 pandemic, of the plan for assisting SMEs, which includes the adoption of measures to simplify the procedures for the creation of companies, establish a maximum time for the formalization of SMEs and provide them with advice. In addition, certain tax exemptions were introduced for these enterprises (such as exemption from the payment of taxes in relation to the registration of trademarks, patents and copyrights) and timeframes were established for the payment of certain taxes. The Government indicates that, under the plan for assisting SMEs, 19,173 enterprises were formalized, of which 15,493 were involved in the sale of goods and 3,680 in production. The Government reports that a total of 27,818 SMEs are authorized to operate in the country. Finally, the Government refers to the implementation of programmes aimed at promoting SMEs in the footwear industry (Plan Z) and in the manufacture of school supplies and uniforms (Plan Escolar). The Committee requests the Government to provide detailed and updated information on the impact on job creations of the measures adopted to promote the establishment and productivity of small and medium-sized enterprises.

Article 3. Participation of the social partners. The Committee notes that the Government refers to meetings held with various sectors of the country, such as the productive, social and labour and political sectors, in which topics related to the world of work have been addressed. In this regard, the Government indicates that, on 5 and 7 April 2022, it held meetings with members of various civil society organizations, in which the measures to be adopted to implement the agenda of citizen demands formulated through social dialogue were discussed. The Government also reports that the inaugural session of the Social Dialogue Forum was held virtually on 7 March 2022 and an in-person session was held from 25 to 28 April 2022. The Government indicates that, within the framework of the Social Dialogue Forum, it met with workers’ and employers’ organizations, and that it received technical assistance from the ILO. The Government reports that, following the Forum, it has continued to hold meetings with the social partners covering various social and labour topics. The Government reports that, on 4 July 2022, it met with several chambers of industry including the Federation of Craft, Micro, Small and Medium-Sized Business Associations of Venezuela (FEDEINDUSTRIA) and the Venezuelan Confederation of Industrialists (CONINDUSTRIA), with a view to exchanging ideas in relation to the strengthening of national production and the generation of decent jobs. In addition, on 20 July 2022, a meeting was held with, among other actors, representatives of the trade union and business sector, during which the Basic Act on Special Economic Zones (ZEEs) was signed and the first five ZEEs were established. The Commission notes, however, that CTASI, CTV and FAPUV emphasize that the Government only refers in a general manner to the holding of such meetings and does not provide information on their content or outcomes. They stress that, for the dialogue to be effective, the State must include independent social organizations in the consultations. The Committee also notes that FEDECAMARAS highlights the need to hold tripartite consultations with the aim of designing an employment policy coordinated among all social actors to promote and guarantee full, productive and freely chosen employment, in accordance with the requirements of the Convention. The Committeetherefore urges the Government to take immediate steps to ensure effective consultations with and participation of the social partners in respect of employment policies, as required by this Article of the Convention. In addition, the Committee refers to its comments on the application of the Tripartite Consultations (International Labour Standards) Convention, 1976 (No. 144). It further requests the Government to provide information that includes specific examples of how account has been taken of the views of employers’ and workers’ organizations in the formulation and implementation of employment policies and programmes and the nature, scope and outcomes of those consultations.

Requests regarding certain matters are being addressed directly to the following States: Brazil, Morocco, Philippines, Serbia.