Observation (CEACR) - adoptée 1995, publiée 83ème session CIT (1996)

The Committee notes the Government's report and recalls that its previous comments referred to the following matters.

The Committee had requested the Government to provide the texts of all the provisions adopted with each report, and particularly those relating to wage policy and the fixing and adjustment of wages.

In this respect, the Committee notes that on 28 July 1995, the Government adopted Interim Provision No. 1079 containing supplementary provisions to the "Real Plan" (the economic stabilization plan adopted in 1994), governing the adjustment of wages and collective bargaining, and repealing all provisions in force on these questions up to the date of its publication. In this context, the Committee notes with interest that section 8(1) of the above Interim Provision provides that, as from 1 July 1995, the obligations and agreements based on the consumer prices index will instead be based on the index specified in each contract. Furthermore, section 10 provides that wages and other conditions of employment will continue to be determined or revised on the respective expiry date through free collective bargaining.

Nevertheless, the Committee notes that section 8(2) of Interim Provision No. 1079 provides that in the event that no substitute price index has been established, and where the parties have not agreed on one, a measure of the price index covering the whole nation shall be used as set out in regulations to be issued by the Executive Authority.

The Committee had also reminded the Government of the need to repeal the general provisions which are inconsistent with Article 4 of the Convention, and particularly section 623 of the "Consolidation of Labour Laws", as amended by Act No. 5584 of 26 June 1970 and Legislative Decree No. 229 of 28 February 1967, which confer extensive powers on the authorities to cancel collective agreements or arbitration awards that are not consistent with the rules set by the Government's wages policy.

In this respect, the Committee notes the information supplied by the Government concerning its intention to make collective bargaining a fundamental instrument of the rules of wages policy, and the indication that labour legislation in Brazil will have to undergo profound modifications in order to be in conformity with the constitutional principle of freedom of association and bargaining, as well as the new guidelines concerning the organization of production and work.

On this point, the Committee notes that on 10 August 1995 the Minister of Labour established a Permanent Commission on Labour Legislation, composed of national jurists specializing in labour law, the principal responsibility of which is to examine issues related to labour relations which, because of their importance and urgency require proposals and action by the Ministry of Labour, as well as to examine draft legislation, issue opinions on international Conventions and Recommendations and prepare reports for the ILO.

The Committee hopes that the above constitutes an appropriate framework within which the Government will adopt specific measures in the near future in order to encourage and promote, in both law and practice, the full development and utilization of machinery for voluntary negotiation between workers' and employers' organizations with a view to the regulation of terms and conditions of employment by means of collective agreements, as provided in Article 4 of the Convention.

The Committee regrets to note that the Government has not provided information on Bill No. 821 of 21 April 1991; it also notes Bill No. 1232-A/91 respecting collective bargaining, to which reference was made in the report on Convention No. 154, which has been ratified by Brazil. The Committee requests the Government to clarify the situation with regard to these Bills and to provide copies of them when they are adopted.