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Minimum Wage Fixing Convention, 1970 (No. 131) - Bolivia (Plurinational State of) (RATIFICATION: 1977)

The Committee notes the observations of the Confederation of Private Employers of Bolivia (CEPB) and the International Organisation of Employers (IOE), received on 26 April and 3 September 2019, as well as those of the International Trade Union Organization (ITUC) received on 1 September 2019.

Follow-up to the conclusions of the Committee on the Application of Standards (International Labour Conference, 108th Session, June 2019)

The Committee notes that based on its follow-up, in its last comments, of the conclusions of the Conference Committee on the Application of Standards (hereinafter Conference Committee) adopted in June 2018 on the application of the Convention, the Conference Committee examined the case for the second time in June 2019.

Articles 3 and 4(1) and (2) of the Convention. Elements for the determination of the level of the minimum wage and full consultation with the social partners. In its last comments, the Committee observed that while the Government stated that consultations were held with the social partners, the CEPB and the IOE claimed the opposite. The Committee also observed that there were divergences between the Government and the above-mentioned employers’ organizations regarding the criteria reportedly taken into consideration in determining the minimum wage. In this context, the Committee expressed the firm hope that, in follow-up to the conclusions of the Conference Committee of June 2018, a direct contacts mission would take place without delay with a view to finding a solution to the difficulties faced in the application of the Convention. The Committee notes that, in 2019, the Conference Committee regretted that the Government had not responded to all the Conference Committee’s conclusions in 2018, specifically the failure to accept a direct contacts mission. Therefore, in its 2019 conclusions, the Conference Committee once again urged the Government to: (i) carry out full consultations in good faith with the most representative employers’ and workers’ organizations with regard to minimum wage setting; (ii) take into account when determining the level of the minimum wage the needs of workers and their families, as well as economic factors as set out in Article 3 of the Convention; (iii) avail itself without delay of ILO technical assistance to ensure compliance with the Convention in law and practice; and (iv) accept an ILO direct contacts mission before the 109th Session of the International Labour Conference. The Committee notes that the Government indicates in its report that: (i) a direct contacts mission is not necessary given that no difficulties are faced in the application of the Convention; (ii) the Bolivian Central of Workers (COB) annually presents a list of recommendations containing, among other issues, a proposal of increase in the national minimum wage; (iii) the same cannot be said of the CEPB, since Section 10 of its Statute provides that the confederation shall not assume the legal representation of its members, for the negotiation or settlement of individual labour disputes; (iv) nevertheless, the annual minimum wage increase takes into consideration the positions of workers and employers, with which the Government is promoting regular dialogue, based on good faith and respect, and consultation, as demonstrated by the round-table meetings established with the representatives of the CEPB and the COB; and (v) the determination of the national minimum wage level is based on economic and social factors taking into account inflation and productivity, as well as other economic indicators, inter alia, Gross Domestic Product (GDP), GDP per capita, the consumer price index, economic growth, unemployment rates, market fluctuations and the cost of living. Furthermore, the Committee notes that the CEPB and the IOE reiterate in their last observations, as they had done in the discussion in the Conference Committee, that: (i) the Government maintains dialogue and negotiates with workers’ organizations, particularly with the COB, preventing the employers’ sector to participate in consultations on the national minimum wage and to formulate proposals and criteria in this regard; and (ii) in fixing the minimum wage, the Government does not take into account objective technical criteria reflecting the economic reality of the country, such as productivity. Finally, the Committee notes that the ITUC, referring to the various social and economic factors taken into account in fixing the minimum wage, indicates that Bolivia is the country that has increased the minimum wage the most over the present decade in Latin America, without affecting the most relevant macroeconomic variables and without inflationary consequences.

The Committee observes that contradictions and divergences persist between the Government and the CEPB concerning the full and good faith consultations with the employers’ representative organizations, and the criteria taken into account in determining the minimum wage. In this context, the Committee regrets to note the Government’s refusal to accept a direct contacts mission to the country with a view to finding a solution to the difficulties faced in the application of the Convention. Recalling once again that these missions constitute an effective form of dialogue designed to find a positive solution to the issues in question, the Committee expresses the firm hope that the Government will review its position and that a direct contacts mission will take place before the 109th Session of the International Labour Conference, as requested by the Conference Committee.

[The Government is asked to reply in full to the present comments in 2020.]