Demande directe (CEACR) - adoptée 2008, publiée 98ème session CIT (2009)

The Committee notes with interest the Government’s first detailed report on the application of the Convention as well as the observations made by the Union of Manufacturers and Entrepreneurs of Armenia and the Confederation of Trade Unions of Armenia. It wishes to draw the Government’s attention to the following points.

Article 1(1) of the Convention. System of minimum wages. The Committee notes that section 179(1) of the Labour Code of 2004 provides that the minimum monthly and hourly wage rates are determined by law and that different rates may be established for certain branches of economic activity, regions or categories of workers. The Government specifies in its report that at present a single national minimum wage has been established and is currently set at 20,000 Armenian drams (AMD) (approximately US$65) per month. The Committee notes, however, that the Labour Code does not contain any provisions on the institutional machinery or the procedure for fixing minimum pay rates while the Government’s report does not elaborate on this aspect either. Moreover, the Committee notes that both the Union of Manufacturers and Entrepreneurs of Armenia and the Confederation of Trade Unions of Armenia denounce in their comments the lack of a minimum wage fixing mechanism. The Committee therefore requests the Government to provide additional information in this regard, for instance, the institutional framework within which minimum wages are reviewed and readjusted, the composition of any consultative body which is associated with the minimum wage fixing process, etc.

Article 3. Elements to be considered in determining minimum wage levels. The Committee notes the Government’s indication that by virtue of Government Decision No. 994-N of 8 August 2003 on the strategic programme to combat poverty, the minimum wage is determined by reference to the general poverty line, which is calculated on the basis of the cash value of a basic basket of essential consumer goods, and also taking into account the rate of economic growth and budgetary constraints with respect to public spending. The Government adds, however, that the factors listed in Article 3 of the Convention are not considered when determining the amount of the minimum wage. In addition, the Confederation of Trade Unions of Armenia refers to the Act on minimum goods necessary for subsistence and living wage, which was adopted in 2004, and indicates that to date no subsistence minimum living wage has been adopted. Recalling that the fundamental purpose of minimum wage fixing is to ensure to low-paid workers and their families a decent standard of living, the Committee asks the Government to specify the measures it intends to take so that minimum wage levels adequately reflect the socio-economic realities prevailing in the country, as prescribed by this Article of the Convention.

Article 4(2) and (3). Consultation and participation of employers’ and workers’ organizations. The Committee notes that according to the Union of Manufacturers and Entrepreneurs of Armenia, there are no consultations with employers’ or workers’ organizations in the process of determining the national minimum wage and the employers’ organization is in practice informed of new increases of the minimum wage from media reports. The Committee recalls that the full consultation with, and direct participation of, representative employers’ and workers’ organizations at all stages of the minimum wage fixing process is a core requirement of the Convention. The Government’s attention is drawn to paragraphs 7 and 8 of the Minimum Wage Fixing Recommendation, 1970 (No. 135), and also to paragraphs 186–273 of the 1992 General Survey on minimum wages, which offer guidance on the content and process of consultation with the social partners. The Committee therefore asks the Government to take appropriate steps, in accordance also with the principles of social partnership set out in sections 39–42 of the Labour Code, in order to enable representative organizations of employers and workers to be associated in equal numbers and on equal terms with the operation of the minimum wage fixing machinery.

Article 5 and Part V of the report form. The Committee would be grateful if the Government would provide up to date information on the application of the Convention in practice, including for instance the minimum wage rate in force, statistics on the proportion of the workforce remunerated at the minimum wage, the evolution of minimum wage rates in recent years compared to the evolution of economic indicators, such as the consumer price index over the same period, labour inspection results showing minimum wage-related offences reported and sanctions imposed, etc.