Employment Policy Convention, 1964 (No. 122) - Chile (RATIFICATION: 1968)

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The Government representative stated that the rate of unemployment had been reduced in Chile to about 8 or 9 per cent and that this improvement was partly responsible for the simultaneous reduction in emergency employment programmes. The transfer of funds to municipal bodies had been planned so that they could ensure labour-intensive public works programmes, which would be carried out by private firms and in which workers would be covered by provisions of the Labour Code and social security. He referred to the dismissal of teachers and pointed out that only 6,118 people had been dismissed out of a total of about 150,000 teachers in publicly funded education. He specified that the measures had principally affected teachers who did not have the necessary qualifications and who had been given a term of ten years to regularise their situation; another percentage affected were teachers who were close to retirement. He referred to measures which had been taken to permit the people concerned to find other jobs, including those to attract personnel to areas where there was a shortage of teachers. With respect to the concern expressed by the Committee of Experts about the capability of the educational system to respond to the manpower needs of the economy and the ability of workers to obtain the necessary qualifications, the Government representative gave some statistics which were intended to show that the State tried to provide education and vocational training related to the needs of the country. He said that detailed information had been provided on the question of the consultations which had taken place with the representatives of those concerned. He concluded by confirming that the dismissal of teachers was now over and that the problem no longer existed.

The Workers' members referred to the problem of the dismissal of the teachers, and specified that a complaint had been submitted by the World Confederation of Organisations of the Teaching Profession about this matter. They hoped that the situation could be examined on the spot by the various organisations concerned, including the ILO, with a view to working out solutions.

The Employer's members referred to the detailed information contained in the report of the Committee of Experts concerning what had been done in regard to employment. They insisted upon the fact that the problem at issue was the dismissal of the teachers and pointed out that what was at stake was the right to consultation; they wondered if this had taken place. With regard to the possibilities of employment which had been offered to the teachers who had been dismissed, they considered that various solutions could have been arrived at. This was why it was important for the Government to provide information about what it was doing to secure a solution to these problems.

The Government representative stressed that although the central point of the discussion seemed to be the dismissal of the teachers, the considerable improvement in the employment situation which had resulted in fewer emergency employment programmes should be pointed out, especially given the nature of the Convention. As far as the situation of the teachers was concerned, he emphasised the fact that the measures taken had affected teachers without qualification who had not regularised their situation in spite of the long time which had been granted to them to do so. The other teachers who were affected had reached retirement age; in other instances the measures had been taken so as to rationalise the teaching system. Consultations had taken place with representative institutions of teachers which had requested the prolongation of the period of time for the teachers to regularise their academic qualifications.

The Workers' members expressed their lack of satisfaction with the reply given by the Government representative and repeated their proposal which they had made in the previous declarations, namely that this question should be examined on the spot, which they said should be mentioned in the conclusions.

The Government representative expressed his reservations about this proposal, given the level of co-operation shown by his Government in the work of the Committee.

The Committee took note of the information submitted by the Government representative. It noted that the comments of the Committee of Experts had referred to important aspects of employment policy in Chile, including questions concerning special employment programmes (the minimum employment programmes and the programmes of employment for heads of households) discussed in the Committee on previous sessions, and the question of the mass dismissal of teachers which had been the subject of observations by the World Confederation of Organisations of the Teaching Profession (WCOTP). The Committee stated its agreement with the concerns expressed by the Committee of Experts with respect to the implications of the dismissal of teachers as well as regarding education and training as factors in employment policy. The Committee hoped that the Government would be able to guarantee the full application of the Convention. The Committee requested the Government to submit detailed information on any developments in the situation in this field, as well as on employment policy, including information about the special employment programmes.

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The Committee notes the observations of the Single Central Organization of Workers of Chile (CUT-Chile), received on 1 September 2021. The Committee requests the Government to provide its comments in this respect.

Articles 1 and 2 of the Convention. Implementation of an active employment policy. The Committee notes with interest the detailed information provided by the Government regarding the measures adopted with a view to achieving the objectives of the Convention. The Government refers to the implementation, by the Ministry of Labour Pro-employment Unit, of various programmes to promote employment and employability, especially aimed at persons who are vulnerable. These programmes include the “Investment in the Community Programme”, which finances local, labour-intensive projects which benefit the community; the “Promote Employment Programme”, which proposes part-time contracts in areas related to the agroforestry and eco-tourism sectors; and the “Programme to Boost Artisan Employability”, which provides training in artisanal trades. The Committee also notes the statistical information, disaggregated by sex, that the Government provides on the number of participants in each of the programmes. The Government also reports on the implementation of a series of employment programmes run by the National Training and Employment Service (SENCE), such as the “Retraining – Reinvent yourself” programme, which aims at boosting the employability of unemployed persons by updating skills and/or the acquisition of new skills; and the “Apprentices” programme, which seeks to promote youth employment by providing bonuses to companies and apprentices over a 12 month period.

The Committee also notes the information provided by the Government on the measures adopted to combat the impact of the COVID-19 pandemic on the labour market. These measures include the adoption of Act No. 21.227 (on Protection of Employment), which allows for the temporary suspension of the effects of employment contracts and makes available unemployment insurance funds; and the adoption of Act No. 21.220 (on Telework and Remote work), which provides that workers and employers may agree on the modalities for remote work or telework, thus allowing continuity of the labour source in cases where such modalities may be put in place. The Committee notes that CUT-Chile denounces such measures in its observations, saying that they shift the cost of the crisis onto the workers, by covering non-payment of wages through the workers’ individual capitalization accounts. CUT-Chile also indicates that it has been requesting the establishment of a tripartite working group to amend the Act on Telework, which at present does not include the right to disconnect, or reconciliation of family and working life, as it provides the possibility of unlimited working hours. The Government reports that, between 2020 and the beginning of 2021, various subsidies for enterprises and workers were put in place, to support the reincorporation of workers (return subsidy) or new contracts (contract subsidy). The Government also reports the creation in July 2021 of the Committee for Employment Generation, which is composed of academics and professionals, and is intended to evaluate existing employment incentives and formulate new initiatives for generating employment following the COVID-19 pandemic. With regard to labour market trends, the Committee notes the information provided by the National Statistics Institute (INE) that in the April-June 2022 quarter, the national unemployment rate stood at 7.8 per cent (8.4 per cent for women and 7.4 per cent for men). In the two months prior to the submission of the Government report (31 August 2021), the participation rate stood at 59.7 per cent and the employment to population ratio at 55 per cent. The Committee requests the Government to continue to send detailed and updated information on the measures adopted or foreseen to achieve the objectives of the Convention, including those adopted in regions with high unemployment rates, and in particular on the manner in which they ensure that the beneficiaries (especially women, young persons and persons with disabilities) may obtain full, productive and sustainable employment. The Committee also requests the Government to provide detailed and updated information on the impact of the measures. The Committee further requests the Government to provide updated statistical information, disaggregated by age, sex and region, on the evolution of the labour market, particularly on the levels of the active population, employment and unemployment.

Employment of women. The Committee notes that, in its concluding observations of 14 March 2018, the Committee on the Elimination of All Forms of Discrimination against Women (CEDAW) expressed concern at the persistence of horizontal and vertical occupational segregation and the concentration of women in the informal sector, in lower-paid service sectors and in temporary and part-time work; as well as the limited access for migrant and women with disabilities to the formal labour market (CEDAW/C/CHL/CO/7, paragraph 36(c) and (e)). The Committee also notes that according to INE statistics, in the April-June 2022 quarter, not only was the unemployment rate for women higher than that for men, but also the rate of women working in the informal sector (28.2 per cent for women against 26.3 for men). The Committee requests the Government to provide detailed and updated information on the measures adopted with a view to promoting formal employment for women, and in particular for women belonging to disadvantaged groups, such as young women, older women, migrant women and women with disabilities. It also requests the Government to provide information on the impact of labour market measures adopted to combat horizontal and vertical occupational segregation, including updated statistics, disaggregated by sex, age, occupation, sector of activity and professional category.

Persons with disabilities. The Committee refers to its 2018 comments regarding the implementation of the Discrimination (Employment and Occupation) Convention, 1958 (No. 111) in connection with the adoption of Act No. 21.015 of 2017, encouraging the integration of persons with disabilities in the labour market, and providing, among other measures, for a reserve of 1 per cent of jobs in state bodies and private enterprises that have 100 or more workers for persons with disabilities or recipients of an invalidity pension under any social security regime. The Committee notes, from the 2019 Labour Survey (ENCLA) conducted by the Labour Directorate that, on 30 November 2018, 10.1 per cent of enterprises had workers with disabilities under contract. Moreover, 12.4 per cent of enterprises had put in place a policy for the employment of workers with disabilities. The Committee also refers to its comments regarding the implementation of the Vocational Rehabilitation and Employment (Disabled Persons) Convention, 1983 (No. 159), in which it noted the information provided by the Government regarding the adoption of Act No. 21.275 of 2020, amending the Labour Code to provide that enterprises employing more than 100 workers shall take steps to facilitate the inclusion of workers with disabilities. Among other measures, it establishes an obligation for enterprises to promote policies of inclusion of persons with disability and to implement workers’ training programmes in that connection annually, to raise the awareness of participants of the contribution that workers with disabilities can bring to the workplace. The Committee also notes from information available on the website of the National Disability Service (SENADIS), that the SENADIS provides resources and collaborates with other public and private bodies with a view to promoting the labour market inclusion of persons with disabilities through two types of action, namely through dependent employment and self-employment, with the aim of reinforcing employment generation for persons with disabilities on the regular labour market and in productive activities in associations, and to promote the development of sustainable undertakings and businesses established or managed by persons with disabilities. The Committee refers to its comments regarding the implementation of Convention No. 159, in which it requests the Government to continue providing detailed and updated information on the impact of the measures adopted to promote employment opportunities for persons with disabilities, including persons with mental and intellectual disabilities, in the open labour market in both the public and private sectors.

Coordination of vocational and technical education and training measures with employment policy. The Committee notes the Government’s indication that provision of technical support to technical training centres has continued, with a view to supporting the National System for the Certification of Vocational Skills (ChileValora). The Government recalls that ChileValora is composed of Sectoral Vocational Skills Bodies (OSCL) that are tripartite. Its aim is to integrate the skills certification system with technical and vocational training. In this respect, the Government reports that in December 2020, nine technical training centres were established in different regions of the country, which recognize 72 occupational profiles in 32 career paths. Since 2019, ChileValora also conducts labour market surveys, to compile and update more relevant standards that respond to changes in the world of work brought about, inter alia, by new technologies and automatization. The Government also reports the launching in October 2020 of the “Destination Employment” digital platform, which identifies the principal occupations and the economic sectors in which they are to be found, with the aim of assisting persons in deciding what steps to take and what training to follow to obtain better work opportunities. Finally, the Government refers to the implementation, since 2020, of the “Work Opportunities System” (SOLAB), which aims to provide advance information on the needs of public investment projects at communal and local level in terms of training, to be able to develop the required skills in workers in a timely manner, through training and/or through skills certification and employment intermediation. The Committee notes however that CUT-Chile states that the general population has a low level of skills and competencies, which hampers the optimal functioning of the labour market. CUT-Chile also indicates that the fragmented and disjointed nature of the different training bodies has resulted in duplicated action. CUT-Chile maintains that there is no proper linkage between the educational institutions and enterprise, resulting in a mismatch between the skills required and those that the educational system provides. In that regard, CUT-Chile stresses that urgent measures must be adopted to establish a skills training system that answers to the needs of enterprise. Furthermore, the organization insists on the need to put in place a tripartite body to ensure that the design and implementation of public policies on education and vocational training are more relevant. The Committee requests the Government to continue providing detailed and updated information on the nature and results of the measures adopted, in collaboration with the social partners and the representatives of the different sectors, including representatives of the rural sector and of the informal economy, in particular of vulnerable groups that are often concentrated in the informal economy, to improve skill levels and coordinate the education and training policies with possible employment opportunities.

Micro, small and medium enterprises (MSMEs). The Committee notes the various legislative measures adopted during the period covered by the report aimed at simplifying certain administrative procedures for MSMEs and introducing advantages for payment and refunding of tax, including in the framework of the “Emergency Plan for the Protection of Families’ Income and Economic and Employment Reactivation” in the context of the COVID-19 pandemic. The Government reports that, under the abovementioned plan, a working group has been set up for a duration of 12 months, with the participation of the employers’ organizations from the National Council of Small Enterprises (EMT), to implement a support plan to revitalize small enterprises. The Government also reports the implementation of measures giving access to finance and subsidies. Such measures include the programmes: “PAR Promoting Tourism”, “PAR Promoting the Creative Industries”, and “PAR Promoting Women”, which provide economic assistance to finance work and investment plans and/or human resources to enterprises in the tourism and in the creative industries sectors, as well as to enterprises directed by women, through the provision of a funding contribution. The Government also states that measures have been taken to develop skills in new technologies, including the “Digitalize your SME”, “The Digital Way”, “SMEs online” and “Digital Check-up” programmes. The Committee requests the Government to continue to provide detailed and updated information on the initiatives adopted or foreseen to support micro- small and medium-sized enterprises (MSMEs), as well as their impact on generating decent and sustainable employment. It also requests the Government to indicate the results of such measures in reducing the level of informality.

Article 3. Consultation with the social partners. The Committee notes the Government’s indication that the Higher Labour Council (CSL) has held periodic meetings. The Government provides information on the content of the annual monitoring and evaluation reports drawn up by the CSL on the implementation of Act No. 20.940, amending the Labour Code essentially as regards unionization and collective bargaining. The Government also indicates that, within the structure of the CSL, tripartite consultations were held on proposed measures to confront the economic crisis caused by the COVID-19 pandemic, including introducing greater flexibility in the requirements for access to unemployment insurance benefits, increased subsidies for contracting labour, remote work and measures to protect employment. The Government further reports the creation of various sectoral commissions within the CSL, such as the Thematic Commission on Disability, which has drafted a manual of good practices on inclusion in employment of persons with disabilities. CUT-Chile highlights the functioning and results of such committees as important examples to follow in expanding social dialogue and tripartism within the CSL. Finally, within the context of the pandemic, the Government refers to the establishment of various bipartite working groups, such as the standing working group with the trade union confederations, the purpose of which, though its monthly meetings, is to generate a continuous dialogue between the confederations and the Ministry of Labour on the formulation and evaluation of public policies. The Government also reports on the setting up of a committee to promote the creation of formal employment at the local level. It is composed of academics, representatives of the trade union confederations and of the employers’ organizations, and of international organizations, including the ILO and the World Bank.

For its part, CUT-Chile maintains that, since March 2018, the CSL has seen its relevance diminish, a situation that worsened during the pandemic, and that the measures adopted by the Government to confront the social and sanitary crisis were not subject to tripartite consultation. CUT-Chile states that the proposals formulated in respect of the crisis were not debated in the CSL. It adds that, since March 2020, it has been calling unsuccessfully for the creation of a new tripartite working group within the CSL to analyse statistical information in order to adopt the measures necessary to palliate the impact of the crisis. CUT-Chile stresses the need to adopt measures to reinforce social dialogue and ensure that the CSL is recognized as a relevant player in the diagnosis, design and impact evaluation of public policies in the field of work, in order to give legitimacy and relevance to those policies. The Committee requests the Government to provide detailed and updated information on the consultations held with the social partners and the representatives of persons concerned regarding employment policies and programmes, including those adopted to palliate the impact of the COVID-19 pandemic.

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Articles 1 and 2 of the Convention. Implementation of an active employment policy. In response to its previous comments, the Committee notes the information provided in the Government’s report regarding the numerous programmes adopted to increase participation, mainly of women and young persons in a socially vulnerable situation, in the labour market. The Government refers, inter alia, to the “More skilled” (Más Capaz) programme, which aims to support the entry and retention in the labour market of women, young persons and persons with disabilities who belong, according to socio-economic classification, to the 60 per cent most disadvantaged section of the population, and who have no or little work, that is, whose contribution rate amounts to 50 per cent or less over the previous 12 months. There are three lines of action in the “More skilled” programme: standard line of action (2015–18); women entrepreneurs line of action; and persons with disabilities line of action. The Government also indicates that ProEmplea runs five programmes of the Office of the Under-Secretary for Labour aimed at job creation and labour integration for groups in a vulnerable situation, such as women, children, persons with disabilities and former prisoners. The joint objective of those programmes is the promotion of employment and employability through the design, coordination and oversight of employment policies and programmes, with a view to facilitating labour integration for persons in the most vulnerable situations, and to provide a source of labour to places where the labour force demand has shrunk because of an emergency. These programmes are divided into “emergency employment” programmes, which include the programme for community investment and the programmes under the National Training and Employment Service (SENCE); and the “employability-boosting” programmes, which include the programme for the employment support “sistema Chile solidario” and the programme for the development of professional skills for women “Chile solidario”. The Government also provides information on incentives granted to enterprises (the “Encourage people” programme and the “On-the-job training” programme) and benefits for workers (youth employment grants and vouchers for women workers) with a view to boosting employment and training for young persons and women. With regard to the labour market trends, the Committee notes that based on the National Employment Survey of the National Statistics Institute (INE), between July and September 2018, the general unemployment rate was 7.4 per cent for women and 6.8 per cent for men; the participation rate was 48.5 per cent for women and 70.2 per cent for men; and the employment rate was 44.9 per cent for women and 65.4 per cent for men. The Committee notes that the unemployment rates are higher in certain regions, such as Tarapaca (9.2 per cent for men and 7.5 per cent for women), Atacama (7.7 per cent for men and 9 per cent for women) and Antofagasta (6.9 per cent for men and 10.8 per cent for women). Lastly, the Committee notes the establishment of implementation reports relating to employment programmes with a view to conducting quantitative monitoring of the achievement of those programmes with fiscal support; and the establishment of the Employment Monitoring Committee to coordinate those programmes. The Committee requests the Government to continue providing up-to-date information on the measures adopted or envisaged to achieve the objectives of the Convention, including those adopted in regions with high unemployment rates and, particularly, on the manner in which those programmes helped beneficiaries (particularly women, young people and persons with disabilities) to obtain full, productive and lasting jobs. The Committee also requests the Government to provide a copy of the implementation reports related to those measures. Furthermore, the Committee requests the Government to provide updated statistical information on the evolution of the labour market, particularly on the rates of the economically active population, employment and unemployment, disaggregated by sex, age and region.

Coordination of vocational and technical education and training measures with employment policy. In its previous comments, the Committee requested the Government to continue providing information on the coordination of vocational education and training policies with employment policy. In this respect the Government recalls in its report that the National System for the Certification of Vocational Skills (ChileValora) is composed of Sectoral Vocational Skills Bodies (OSCL), that are tripartite and invite the most representative sectors of the economy to participate in the development of skills-based projects. The Government indicates that, depending on the characteristics of the production sector and its formation, there are OSCL which include representatives from the rural sector and the informal economy (family agriculture, recyclers and domestic workers). Based on the work of the OSCL, the Vocational Skills Catalogue was compiled, containing all relevant vocational profiles, organized by economic sectors and sub-sectors, according to which persons are assessed and qualified. The Vocational Skills Catalogue is available to the training system and educational institutions in order to incorporate skills into the design of training plans, narrow the gap between workforce supply and demand, link skills with the various curriculum and education levels, and facilitate recognition of qualifications in formal education processes. The Government also indicates that, as a result of sectoral tripartite dialogue, since 2015 it has been making steady progress in the development of vocational paths combining work experience and training which respond to the reality and needs of different productive sectors. The Government also indicates that the mission of the National Employment Observatory, which is part of the National Training and Employment Service, is to identify existing gaps between supply and demand in labour market occupations and to anticipate possible future gaps. In particular, the Observatory’s objective is to improve workers’ employability and the country’s productivity by disseminating information on the importance of training and on the link between job vacancies and seekers. The National Observatory has a central office and a network of 15 regional observatories, which each have an advisory council composed of representatives of the Government, workers’ and employers’ organizations, and academia. The Government also refers to the skills training programme for persons in vulnerable situations and provides them with subsidies for each day of training; and to the on-the-job training programme which offers incentives to enterprises that hire unemployed persons or first-time jobseekers with a view to developing particular skills through the on-the-job training and a training voucher. The Committee requests the Government to provide detailed and updated information on the measures adopted or envisaged in cooperation with the social partners and representatives of various sectors, including representatives of the rural sector and informal economy, to improve the level of qualifications and coordinate education and training policies with potential job opportunities, and on the results of the implementation of those measures.

Micro- and small enterprises (MYPE). The Committee notes the Government’s reference to the implementation of the business and enterprise voucher which aims to boost the competitiveness and productivity of micro- and small enterprises. Through the programme, owners or managers of micro- or small enterprises are provided with a certificate giving them access to a training course to improve their training in areas that will boost competitiveness and productivity. The Committee requests the Government to continue providing detailed information on the initiatives adopted or envisaged to support micro- and small enterprises as well as on their application in practice.

Article 3. Consultation with the social partners. The Committee notes with interest the formation on 8 May 2017 of the Higher Labour Council, a tripartite and consultative body. Its permanent functions are, inter alia, to: (i) develop, analyse and discuss proposals and recommendations on public policy relating to labour relations and the labour market; (ii) propose initiatives intended to incentivize job creation, boost productivity and increase the participation of women, young persons, persons with disabilities and other groups of workers in a vulnerable situation in the workforce, improving their employability; and (iii) conduct, directly or through third parties, diagnostic investigations or studies on the status of labour relations and the operation of the labour market in the country. The Committee also notes the Government’s information on the content of several of the Council’s meetings held to date. The Government indicates, for example, that in its second session, Council members analysed information available on the implementation of the labour reform, particularly the labour market indicators defined on the basis of data registered by the Labour Directorate. The Government also refers to the implementation of the programme on social dialogue working groups within the framework of the social dialogue unit of the Labour Ministry. The purpose of this programme is to establish social dialogue working groups to help set up national and regional social dialogue forums on high-priority issues, such as employment policy. The Committee requests the Government to provide updated information on the manner in which the social partners participate in the design, implementation, evaluation and revision of employment policies within the Higher Labour Council and the social dialogue working groups on employment policy.

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Articles 1 and 2 of the Convention. Implementation of an active employment policy. The Government refers in its report to the employment measures announced for the presidential period 2014–18, with an emphasis on the Vocational Training and Skills Programme to increase the labour market participation of women and the Training for Labour Insertion and Education Plan for young persons, especially those with disabilities. The Government also refers to the Mas Capaz (“More Skilled”) programme, which is intended to support the entry and retention of women in the labour market, with the objective of training 300,000 women and 150,000 vulnerable young people between 2014 and 2018. Young people between the ages of 15 and 19 who neither study nor work will be one of the primary targets for training. A programme is also being developed based on dual training for young apprentices. The Committee notes the information provided by the Government on the labour market situation (the national unemployment rate was 6.5 per cent during the first quarter of 2014) and the worrying numbers of inactive persons (39.9 per cent of persons of working age, which represents a total of 5,596,744 persons). The Committee requests the Government to indicate the manner in which the programmes adopted helped beneficiaries (particularly women and young people) to obtain productive and lasting jobs. Please also continue providing an assessment of the nature, extent and trends of unemployment and underemployment and of the measures adopted to achieve the objectives of the Convention.

Coordination of vocational education and training measures with employment policy. The Government indicates that 33 per cent of the economically active population has not completed middle school, for which reason it is necessary to adopt catch-up education and further training policies. The Committee notes with interest that in 2014 the National Training and Employment Service (SENCE) and the Commission of the National System for the Certification of Vocational Skills (ChileValora), with the support of the Inter-American Development Bank (IDB) and the Inter-American Centre for Knowledge Development in Vocational Training (ILO/CINTERFOR), launched the Vocational Training and Skills Certification Framework with the objective of ensuring equivalencies of training through vocational skills certification. The Certification Framework recognizes the skills and capacities of workers and organizes the levels of further training. The Committee requests the Government to continue providing information on the coordination of vocational education and training policies with employment policy.

Article 3. Participation of the social partners. The Government indicates that both ChileValora and the respective Sectoral Vocational Skills Bodies (OSCL) are tripartite. The Committee notes that there are 40 OSCLs covering 23 sectors and 70 subsectors. In its 2010 General Survey concerning employment instruments, in paragraph 75, the Committee indicated that the scope of such consultations should not be limited to employment policy in the narrow sense, but should extend to all aspects of economic policy that affect employment, and that the social partners should therefore be consulted both on labour market and skills training programmes and on the framing of more general economic policies that have a bearing on employment promotion. The Committee requests the Government to provide more detailed information on the consultations held with the social partners on the implementation of an active employment policy, with an indication of the manner in which representatives of workers in the rural sector and the informal economy are included in such consultations.

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Articles 1 and 2 of the Convention. Declaration and pursuance of an active employment policy. In reply to the 2010 observation, the Government provided a report received in September 2011 containing a list of the principal programmes established to promote employment. The Government identifies the five main programmes implemented by the National Training and Employment Service (SENCE) to generate employment and promote the integration into the labour market of women, young persons and workers in a precarious situation. The “Investment in the Community” programme includes initiatives implemented by SENCE or the regional authorities for the direct and transitional recruitment of unemployed persons in areas with high levels of dismissals. The “Recruitment Bonus” programme consists of the distribution of subsidies to enterprises covering the payment of 30 per cent of the minimum monthly income. The “Employment Support” programme is intended for unemployed persons covered by the Chile Solidario social protection system to help them develop their skills with a view to strengthening their employability. A specific programme is intended to develop the labour skills of women. The Government has also adopted measures to provide tax breaks and training vouchers for persons wishing to obtain training. The Committee invites the Government to include in its next report quantitative and qualitative data disaggregated by programme so that it can examine the manner in which the programmes adopted have enabled beneficiaries to obtain productive and long-term jobs. The Committee notes that, according to the data published by the ILO in Panorama Laboral 2011, the economy grew by 6.8 per cent in the second quarter of 2011 (with an annual growth rate of 8.4 per cent in the first quarter). Between January 2010 and September 2011, the urban employment rate increased (from 53.2 to 55.5 per cent) and the unemployment rate also fell between 2010 and 2011 (from 8.5 to 7.3 per cent). The Committee refers to its previous observations and recalls that it is fundamental to be able to assess the manner in which the political commitment to achieve full employment is reflected in government policy documents and in the general legal context. The Committee hopes that the Government will include in its next report detailed information on the adoption and implementation of an active employment policy, as required by Articles 1 and 2 of the Convention. The report should also provide up-to-date data on the size and distribution of the labour force and the nature, extent and trends of unemployment and underemployment.

Youth unemployment. The Government also describes the SENCE programmes intended to ensure decent employment conditions for young persons entering the labour market. The Committee notes the requirements that have to be met to receive the monthly subsidy that the Government offers employers which recruit a young person up to 25 years of age. The Government also refers to the skills training programme for young persons and apprentices up to 25 years of age. The Committee notes that the average unemployment rate for young persons between 15 and 24 years of age in the first nine months of 2011 was around 17.5 per cent, which is 1.1 per cent lower than the corresponding rate for the same period in 2010. The Committee invites the Government to provide in its next report information on the results achieved by the measures adopted for the integration of young persons into the labour market and to help them obtain high-quality jobs.

Coordination of vocational education and training measures with employment policy. The Government indicates that the training programmes provided by ProEmpleo are designed to be adapted not only to the interests of beneficiaries but also to labour market demand. Through this coordination, it is ensured that training and skills development facilitate the integration of beneficiaries into the labour market. The Committee invites the Government to provide up-to-date information in its next report so that it can assess the manner in which the beneficiaries of the measures taken by the SENCE find long-lasting employment. The Committee also requests the Government to provide more precise information on the coordination of vocational education and training policies with employment policy.

Participation of the social partners. In its previous comments, the Committee invited the Government to provide information on the manner in which the experience and views of the social partners are fully taken into account, their full cooperation secured and their support enlisted for the formulation and implementation of employment policy. The Government indicates that the Ministry of Labour has a social dialogue unit, which has a training programme and holds social dialogue meetings. The Committee notes that the objective of the social dialogue meetings is to promote the generation of dialogue machinery at the national and regional levels in high-priority sectors, such as employment policy, so as to influence the establishment of public policies which resolve the problems identified. The social partners participate in social dialogue meetings. The Government also refers to the existence of regional dialogue meetings, depending on the productive sector. The Committee invites the Government to continue to provide information on the consultations held with the social partners for the design and implementation of an active employment policy. In this respect, the Committee emphasizes the importance of taking into account the views and securing the support of the social partners so as to ensure that the programmes implemented generate high-quality jobs (Article 3). In particular, the Committee reiterates its interest in examining information on formal consultation procedures with the social partners on the matters covered by the Convention at both the national and regional levels, including representatives of the rural sector and the informal economy.

ILO technical assistance. The Government indicates that in 2011 ProEmpleo held two workshops with ILO assistance. In the first, emphasis was placed on the need to ensure the follow-up of programmes to promote the reintegration into the labour market of the unemployed. In the second, the need was identified to give priority to access to employment and recruitment subsidies for the most vulnerable persons in the labour recruitment incentives programme. The Committee invites the Government to continue to provide information on the action taken as a consequence of assistance or advice received from the ILO for the adoption and implementation of an active employment policy, as required by the Convention (Part V of the report form).

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Articles 1 and 2 of the Convention. Declaration and pursuit of an active employment policy. The Committee notes the report received in November 2009, in which the main legislative provisions adopted in relation to training and employment are listed. The Government indicates that the Committee of Experts will be informed as soon as soon as possible of the results of action taken in response to the matters raised in the observation of 2008. In the General Survey of 2010 concerning employment instruments, the Committee noted the National Agreement for Employment, Training and Labour Protection, signed in May 2009 in response to the crisis. The measures included encouraging the retention of workers and promoting skills training with tax incentives for enterprises which facilitate the training of workers as an alternative to redundancy. According to data published by the ILO in the 2009 Labour Overview, the unemployment rate increased from 7.9 per cent in 2008 to 10 per cent in 2009, particularly affecting women and young people. In order to be able to examine the manner in which the Convention is applied, the Committee requests the Government to supply detailed information on how an active policy designed to promote full and productive employment has been formulated within the framework of a coordinated economic and social policy. The Committee requests the Government once again to identify the most effective programmes with the most positive impact on the creation of employment for the most vulnerable groups, such as women, workers in precarious situations and workers affected by restructuring.

Youth unemployment. Coordination of vocational education and training measures with employment policy. Participation of the social partners. The Committee reiterates the other points raised in its observation of 2008, in relation to which the Government is requested to supply detailed information in its report on the following:

–      the measures adopted to ensure decent working conditions for young persons entering the labour market;

–      the manner in which education, training and lifelong learning policies are coordinated with prospective employment opportunities;

–      the manner in which the experience and views of the social partners are fully taken into account, their full cooperation secured, and their support enlisted for the formulation and implementation of the employment policy. In particular, the Committee requests the Government to provide information on formal procedures for consultation with the social partners on the matters covered by the Convention (Article 3);

–      the action taken as a result of the assistance or advice received from the ILO with regard to employment policy (Part V of the report form).

[The Government is asked to reply in detail to the present comments in 2011.]

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The Committee notes the Government’s report for the period ending August 2007, which includes information on the employment situation in 2006 and summarizes the activities carried out by the National Training and Employment Service (SENCE).

1. Articles 1 and 2 of the Convention. Declaration and pursual of an active employment policy. In its previous comments, the Committee noted the good labour market indicators, however it also noted the lack of an integrated employment policy system. The Committee notes that the national unemployment rate reached 7.1 per cent in the first three quarters of 2007, representing a fall of 1.3 per cent in relation to the same period in 2006, due to a moderate increase in labour supply. For the same period, the employment rate also rose from 50.2 per cent to 50.8 per cent, while labour demand decreased slightly over the same period. These results reflect the GDP growth, which in the first and second quarters of 2007 was 5.8 and 6.1 per cent, respectively (data published by the ILO in Labour Overview 2007). The Committee recalls once again that the provisions of the Convention require the Government to declare and pursue, as a major goal, an active policy designed to promote full, productive and freely chosen employment, within the framework of a coordinated economic and social policy, and in consultation with all the persons affected. Accordingly, so as to be able to fully examine the manner in which the Convention is applied, the Committee requests the Government to provide a report containing detailed information on the manner in which an active policy designed to promote full and productive employment has been declared in the framework of a coordinated economic and social policy. The Committee once again requests that the next report identifies those programmes which have been most effective, and have had the most positive results in terms of employment generation for the most vulnerable categories of the population, such as women, workers in precarious forms of employment and workers affected by restructuring measures.

2. Youth unemployment. The Committee notes that the unemployment rate amongst young persons (15 to 19 years) is 3.4 times higher than the average global unemployment rate, which it considers to be a cause for concern. The Committee requests the Government to provide detailed information in its next report on the measures adopted to ensure decent working conditions for young persons entering the labour market.

3. Coordination of vocational education and training measures with employment policy. In reply to the 2006 direct request, the Government refers to the success achieved by the Continuous Education and Training Programme, Chile Califica. It also provides information on the activities carried out in collaboration with the Chile Foundation in the context of the National System for the Certification of Labour Skills. The Government had proposed to train 1 million workers each year as from 2005. The Committee is grateful for the information provided on the activities of the SENCE and the results achieved by the labour skills certification programme. The Committee once again requests detailed information in the next report on the manner in which education, training and lifelong learning policies are coordinated with prospective employment opportunities.

4. Article 3. Participation of the social partners in the formulation and implementation of policies. The Committee notes once again that the report for the period ending August 2007 does not contain information on the consultations held, as required by this important provision of the Convention. In an ILO publication, referred to in the 2006 direct request, it was proposed that it might be of interest to promote a private or public–private body (foundation or corporation) to provide support for the management of labour market policies at the local level which could implement programmes, provide technical assistance and coordinate public and private actors under the guidance of the central public authority (Chile: Superando la crisis. Mejorando el empleo. Políticas de mercado de trabajo, 2000–05, Santiago, ILO, 2006, pages 30–31). The Committee refers to its previous comments in which it emphasized that the consultations required by this provision of the Convention should cover all aspects of economic and social policy which affect employment and that, in addition to representatives of employers and workers, they should include representatives of other sectors of the economically active population, such as those working in the rural sector and the informal economy. The Committee asks the Government to provide detailed information in its next report on the manner in which the experience and views of the social partners are fully taken into account, their full cooperation secured, and their support enlisted for the formulation and implementation of the employment policy. Please also indicate whether formal consultative procedures have been established for this purpose and the action taken as a result of the assistance or advice received from the ILO (Part V of the report form).

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1. Declaration and pursual of an active employment policy. The Committee notes the Government’s report for the period ending August 2005, which was received in January 2006 and is confined to enumerating the various programmes intended to promote direct employment, indirect employment, training and employment placement. The Government also referred to some of the matters raised in the 2004 direct request and provided data published by the National Statistical Institute. The information analysed shows that, during the first six months of 2005, the increase in employment was in line with the macroeconomic situation, with a change in trend in comparison with the same period the previous year. Both labour supply and demand are continuing to increase, although labour demand grew faster (1.1 in comparison with 0.8 per cent), resulting in a lower rate of unemployment of 8.3 per cent in the first half of 2005, compared with 8.9 per cent for the same period in 2004 (Panorama laboral 2005, advance version, first half-year), Lima, ILO, 2005, p. 35). As also indicated in another ILO publication, the various programmes implemented in Chile in recent years had their origins in the responses to various labour market situations and still do not constitute an integrated policy system (Chile: Superando la crisis: Mejorando el empleo: Políticas de mercado de trabajo, 2000-05, Santiago, ILO, 2006, p. 7). With reference to paragraph 3 of its 2004 direct request, the Committee once again recalls the relevance of the provisions of the Convention, which require the Government to declare and pursue, as a major goal, an active policy designed to promote full, productive and freely chosen employment within the framework of a coordinated economic and social policy, and in consultation with all the persons affected. The Committee therefore requests the Government to provide detailed information in its next report on the manner in which an active policy has been formulated designed to promote full and productive employment within the framework of a coordinated economic and social policy (Articles 1 and 2 of the Convention). The Committee requests the Government to indicate in its next report the programmes which have been most effective and have had the most positive results in terms of employment generation for the most vulnerable categories of the population, such as women, young persons entering the labour market, workers in precarious forms of employment and workers affected by restructuring measures.

2. Coordination of education and training measures with employment policy. In its previous comment, the Committee recalled that the Government had set the objective of training 1 million workers annually as of 2005. The Committee requests the Government to provide detailed information on the activities of the National Training and Employment Service (SENCE) and the results achieved by the labour skills certification programme. The Committee once again expresses interest in being provided with information on the manner in which education, training and lifelong learning policies are coordinated with prospective employment opportunities.

3. Participation of the social partners in the formulation and implementation of policies. The Committee once again notes that the report does not contain information on the consultations required by this important provision of the Convention. In the ILO publication referred to above, it is proposed that it may be of interest to promote a private or public-private body (foundation or corporation) to provide support for the management of labour market policies at the local level which could implement programmes, provide technical assistance and coordinate public and private actors under the guidance of the central public authority (Chile: Superando la crisis: Mejorando el empleo: Políticas de mercado del trabajo, 2000-2005, Santiago, ILO, 2006, pp. 30-31). The Committee refers to its previous comments in which it indicated that the consultations required by this provision of the Convention should cover all aspects of economic and social policy which affect employment and that, in addition to representatives of employers and workers, they should include representatives of other sectors of the economically active population, such as those working in the rural sector and the informal economy. The Committee requests the Government to provide detailed information in its next report on the manner in which the experience and views of the social partners are taken fully into account, their full cooperation secured and their support enlisted for the formulation and implementation of the employment policy (Article 3). Please also indicate whether formal consultative procedures have been established for this purpose and the action taken as a result of the assistance or advice received from the ILO (Part V of the report form).

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1. The Committee notes the Government’s report for the period December 2000-02 containing general information on labour market trends. The Government indicates that since 2000 there has been a slowdown in employment growth as a result of the international crisis. Unemployment reached a high point of 10 per cent in the third quarter of 2000, with the most affected categories being young persons and women. For young persons between 15 and 19 years of age, the unemployment rate reached 25.7 per cent at the end of 2001, while that of women was 8.4 per cent. The Government refers to a support programme for the unemployed and measures for the training of workers (756,080 workers were trained and benefited from employment skills measures in 2001). It also emphasizes that Chile was the Latin American country with the highest average rate of economic growth during the period 1994-2001, with the lowest inflation rate and without a fiscal deficit. The report enumerates other measures giving effect to the Convention, such as the labour market information system, the SENCE-OMIL programme, the vocational skills certification programme and the Pro-Growth Agenda.

2. According to the information published by the ILO in Panorama laboral 2003, GDP grew by 2.2 per cent in 2002 (with growth of 3.2 per cent expected in 2003 and more vigorous economic activity as a result of the entry into force of the trade agreements concluded with the European Union and the expected benefits of the free trade agreements with the United States and the Republic of Korea). Special public employment programmes and subsidies for the hiring of new workers have been continued, with only 1.6 per cent of workers receiving unemployment insurance benefits (in 2000). According to the data published by ECLAC in its Economic Survey of Latin America and the Caribbean, 2002-03, direct public employment programmes and subsidies for private employment (reintegration and training grants) financed 160,000 jobs during the winter quarter of 2002.

3. Articles 1 and 2 of the Convention. In view of the above indications, the Committee notes the relevance of the provisions of the Convention, which require the Government to declare and pursue, as a major goal, an active policy designed to promote full, productive and freely chosen employment within the framework of a coordinated economic and social policy and in consultation with representatives of all the persons affected. As it has been requesting for a number of years, the Committee hopes to be provided with a detailed report containing information on the programmes implemented and the results achieved in meeting the employment needs of vulnerable categories of workers, such as women, young persons entering the labour market, workers in precarious forms of employment and workers affected by restructuring measures.

4. The Committee would be grateful if the Government would indicate in its next report the employment policy measures that have been pursued and the programmes that are being carried out, and the extent to which initiatives designed to promote economic development or achieve other economic and social objectives have taken into account their impact on the labour market.

5. The Committee refers to the objective of training 1 million workers annually as of 2005 and understands that 843,804 workers benefited in 2003 from the SENCE’s tax incentive programme. The Committee hopes that the Government will continue to provide information in its next report on the SENCE’s activities and the results achieved by the vocational skills certification programme. In this respect, the Government may wish to refer to the guidance set out in the Human Resources Development Recommendation, 2004 (No. 195).

6. Article 3. The Committee notes that the report does not contain information on the consultations required by this important provision of the Convention. The Committee refers once again to its previous comments, in which it indicated that the consultations required by this provision of the Convention should cover all aspects of economic and social policy which affect employment and, in addition to representatives of employers and workers, should involve representatives of other sectors of the economically active population, such as those working in the rural sector and the informal economy. The Committee requests the Government to continue providing detailed information on the manner in which their experience and views are taken fully into account, their full cooperation is secured and the necessary support of the social partners is enlisted in formulating employment policies.

7. The preparation of a detailed report containing replies to the points raised in this direct request will provide an opportunity for the Government and the social partners to evaluate the means of achieving the objective of full and productive employment set out in the Convention. The Committee recalls that the preparation of a full report on the application of the Convention may require consultations with other government ministries or agencies concerned, such as those responsible for planning, the economy and statistics. The Government may also consider it useful to refer to the General Survey of 2004 on promoting employment.

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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 2001 direct request which read as follows:

1. Articles 1 and 2 of the Convention. The Committee notes the Government’s report for the period August 1998 to November 2000. The Government refers to the changes that have occurred since 1998, when employment growth slowed down as a result of the international financial crisis. The national unemployment rate reached 8.9 per cent at the end of 1999, with young persons between 15 and 19 years of age (26.8 per cent) and between 20 and 24 years (18.8 per cent) being particularly affected. The Committee notes that resources were allocated for programmes of urban enhancement, the upgrading of slums and the Ministry of Housing. Furthermore, employment termination subsidies were doubled and the level of resources for training increased. Nevertheless, according to an analysis by the Multidisciplinary Advisory Team in Santiago, economic growth did not generate sufficient employment, which may be attributed not only to difficulties in achieving an economic recovery, but also to the situation of small enterprises. It is reported that major enterprises are once again recruiting significant numbers of workers, but employment levels in small enterprises remain constant. The Government concludes that the economic crisis affected Chile less than the other countries in Latin America in terms of growth, inflation and the size of the public deficit. Nevertheless, since 1999 the effects of the economic crisis have been felt on employment. In these circumstances, the Committee hopes that the provisions of the Convention will continue to be taken into account and that an active policy designed to promote full, productive and freely chosen employment will be declared and pursued as a major goal and as an integral part of a coordinated economic and social policy, in consultation with all the categories of the persons affected. In this respect, the Committee trusts that the Government will in its next report address the following matters, which were raised in its 1997 direct request:

(i)  Please continue to provide information on the programmes implemented and the results achieved in meeting the employment needs of special categories of underprivileged workers, such as women, young persons entering the labour market, workers in precarious forms of employment and workers affected by restructuring measures.

(ii)  Please indicate the employment policy measures which have been pursued and the programmes which are being carried out, and the extent to which initiatives designed to promote economic development or achieve other economic and social objectives have taken into account their impact on the labour market.

2. The Committee notes that, according to the National Training and Employment Service (SENCE), enterprises used only 35 per cent of the resources earmarked for the training of workers. Please indicate the extent to which the objective of training 1 million workers annually as of 2005 is being achieved.

3. Article 3. The Committee refers to its previous comments, in which it indicated that the consultations required by this provision of the Convention should cover all aspects of economic and social policy which affect employment and, in addition to representatives of employers and workers, should involve representatives of other sectors of the economically active population, such as those working in the rural sector and the informal sector. The Committee once again requests that the Government provide detailed information on the manner in which their experience and views are taken fully into account, their full cooperation is secured and the necessary support of the social partners is enlisted in formulating employment policy.

4. Part V of the report form. The Committee notes with interest the studies prepared by the Multidisciplinary Advisory Team in Santiago on employment policies and recruitment subsidies and requests that the Government indicate in its next report the action taken as a result of the assistance provided by the ILO concerning employment policy, and on any factors which may have hindered or delayed such action.

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1. Articles 1 and 2 of the Convention. The Committee notes the Government’s report for the period August 1998 to November 2000. The Government refers to the changes that have occurred since 1998, when employment growth slowed down as a result of the international financial crisis. The national unemployment rate reached 8.9 per cent at the end of 1999, with young persons between 15 and 19 years of age (26.8 per cent) and between 20 and 24 years (18.8 per cent) being particularly affected. The Committee notes that resources were allocated for programmes of urban enhancement, the upgrading of slums and the Ministry of Housing. Furthermore, employment termination subsidies were doubled and the level of resources for training increased. Nevertheless, according to an analysis by the Multidisciplinary Advisory Team in Santiago, economic growth did not generate sufficient employment, which may be attributed not only to difficulties in achieving an economic recovery, but also to the situation of small enterprises. It is reported that major enterprises are once again recruiting significant numbers of workers, but employment levels in small enterprises remain constant. The Government concludes that the economic crisis affected Chile less than the other countries in Latin America in terms of growth, inflation and the size of the public deficit. Nevertheless, since 1999 the effects of the economic crisis have been felt on employment. In these circumstances, the Committee hopes that the provisions of the Convention will continue to be taken into account and that an active policy designed to promote full, productive and freely chosen employment will be declared and pursued as a major goal and as an integral part of a coordinated economic and social policy, in consultation with all the categories of the persons affected. In this respect, the Committee trusts that the Government will in its next report address the following matters, which were raised in its 1997 direct request:

(i)  Please continue to provide information on the programmes implemented and the results achieved in meeting the employment needs of special categories of underprivileged workers, such as women, young persons entering the labour market, workers in precarious forms of employment and workers affected by restructuring measures;

(ii)  Please indicate the employment policy measures which have been pursued and the programmes which are being carried out, and the extent to which initiatives designed to promote economic development or achieve other economic and social objectives have taken into account their impact on the labour market.

2. The Committee notes that, according to the National Training and Employment Service (SENCE), enterprises used only 35 per cent of the resources earmarked for the training of workers. Please indicate the extent to which the objective of training 1 million workers annually as of 2005 is being achieved.

3. Article 3. The Committee refers to its previous comments, in which it indicated that the consultations required by this provision of the Convention should cover all aspects of economic and social policy which affect employment and, in addition to representatives of employers and workers, should involve representatives of other sectors of the economically active population, such as those working in the rural sector and the informal sector. The Committee once again requests that the Government provide detailed information on the manner in which their experience and views are taken fully into account, their full cooperation is secured and the necessary support of the social partners is enlisted in formulating employment policy.

4. Part V of the report form. The Committee notes with interest the studies prepared by the Multidisciplinary Advisory Team in Santiago on employment policies and recruitment subsidies and requests that the Government indicate in its next report the action taken as a result of the assistance provided by the ILO concerning employment policy, and on any factors which may have hindered or delayed such action.

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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 reads as follows:

1.  The Committee notes the Government’s report for the period ending June 1998 containing detailed information in response to its direct requests of 1997. The Committee notes that, while the Government’s macroeconomic policies are proving to be effective, at the same time a significant proportion of workers (25-30 per cent), are still in precarious employment, i.e. in low productivity jobs, without contracts or with temporary labour contracts, and with little access to social security. The information sent by the Government shows that, although unemployment has remained constant (with higher rates for women and young people), the vulnerability of the Chilean labour market due to the precarious employment conditions of a large proportion of workers is a source of concern. The Committee would therefore be grateful if in its next report the Government would supply the information required by the report form for the Convention on the measures adopted to meet fully the demand for jobs among disadvantaged categories of workers such as women, young people, workers in precarious employment and workers affected by restructuring, who for years have encountered difficulties in finding lasting employment. The Committee would also appreciate information on whether employment objectives have been set in the government plans and programmes currently being implemented and specify the employment policy measures which have been devised and will be implemented in future development plans and programmes (Article 1 of the Convention). How the effects on employment of measures taken to promote economic development or other economic and social objectives are given due consideration should be noted (Article 2).

2.  The Committee notes the adoption of Act No. 19518 amending the Training Statute. The Committee notes that the most important innovations of the new statute are aimed at broader coverage and more focused productive training policies, the establishment of the National Training Fund administered by the National Training and Employment Service (SENCE) and the creation of tripartite mechanisms for participation, such as the National Training Council. Please continue to supply information on the results obtained by the programmes implemented by the SENCE with a view to lasting employment for workers during periods of adjustment.

3.  The Committee requests the Government to continue to provide information on lasting employment generated under the various plans and programmes mentioned in the report and to promote equal opportunities for women, vocational training for young people and small enterprises. The Government may find it useful to consult the provisions of the Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998 (No. 189).

4.  Article 3.  The Committee notes the information on the events organized by the regional productive development forums. The Committee again recalls that the consultations required by this provision of the Convention should cover all aspects of economic and social policy which affect employment, and in addition to representatives of employers and workers, should involve representatives of other sectors of the economically active population, such as those working in the rural sector and the informal sector. The Committee asks the Government to provide more detailed information on how their experience and views are taken fully into account, how their full cooperation is secured and how the necessary support of the social partners is enlisted in formulating the employment policy, as required by this important provision of the Convention.

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1. The Committee notes the Government's report for the period ending June 1998 containing detailed information in response to its direct requests of 1997. The Committee notes that, while the Government's macroeconomic policies are proving to be effective, at the same time a significant proportion of workers (25-30 per cent), are still in precarious employment, i.e. in low productivity jobs, without contracts or with temporary labour contracts, and with little access to social security. The information sent by the Government shows that, although unemployment has remained constant (with higher rates for women and young people), the vulnerability of the Chilean labour market due to the precarious employment conditions of a large proportion of workers is a source of concern. The Committee would therefore be grateful if in its next report the Government would supply the information required by the report form for the Convention on the measures adopted to meet fully the demand for jobs among disadvantaged categories of workers such as women, young people, workers in precarious employment and workers affected by restructuring, who for years have encountered difficulties in finding lasting employment. The Committee would also appreciate information on whether employment objectives have been set in the government plans and programmes currently being implemented and specify the employment policy measures which have been devised and will be implemented in future development plans and programmes (Article 1 of the Convention). How the effects on employment of measures taken to promote economic development or other economic and social objectives are given due consideration should be noted (Article 2).

2. The Committee notes the adoption of Act No. 19518 amending the Training Statute. The Committee notes that the most important innovations of the new statute are aimed at broader coverage and more focused productive training policies, the establishment of the National Training Fund administered by the National Training and Employment Service (SENCE) and the creation of tripartite mechanisms for participation, such as the National Training Council. Please continue to supply information on the results obtained by the programmes implemented by the SENCE with a view to lasting employment for workers during periods of adjustment.

3. The Committee requests the Government to continue to provide information on lasting employment generated under the various plans and programmes mentioned in the report and to promote equal opportunities for women, vocational training for young people and small enterprises. The Government may find it useful to consult the provisions of the Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998 (No. 189).

4. Article 3. The Committee notes the information on the events organized by the regional productive development forums. The Committee again recalls that the consultations required by this provision of the Convention should cover all aspects of economic and social policy which affect employment, and in addition to representatives of employers and workers, should involve representatives of other sectors of the economically active population, such as those working in the rural sector and the informal sector. The Committee asks the Government to provide more detailed information on how their experience and views are taken fully into account, how their full cooperation is secured and how the necessary support of the social partners is enlisted in formulating the employment policy, as required by this important provision of the Convention.

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1. The Committee took note of the Government's report for the period ending June 1996. It observes that despite the high growth in economic activity, the unemployment rate, which stood at 4.7 per cent at the end of 1995, has not been reduced during the period. In addition, the Committee notes the persistent nature of particular problems affecting certain categories of the labour force, in particular young people under the age of 25 for whom the unemployment rate stood at 12 per cent. In this respect, the Committee would be grateful if the Government would provide, in its future reports, more detailed statistics on the level of and developments in the labour force, employment, underemployment and unemployment by activity sector, sex, age and skills, for the whole of the period under consideration. Please also provide information on the length of unemployment.

2. The Committee notes the indications provided by the Government on the main trends in its economic and social policy designed to promote growth in macroeconomic stability, integration into international trade, the modernization of industrial relations, the improvement of infrastructures, the strengthening of market-based competition and the modernization of public enterprise management. The Committee hopes that the next report will contain more precise information on the contribution made by each of these policies to employment promotion. The Committee also requests the Government to continue to provide detailed information on its vocational training policy and on the way in which this policy is coordinated with employment prospects.

3. The Committee notes that the number of beneficiaries of the different labour market policy plans and programmes, designed in particular to promote the employment of women and the integration of young people, has increased significantly during the period. It would be grateful if the Government would supplement the information given on the expenses incurred and the number of participants by an assessment of the results which these plans and programmes have been able to achieve in terms of the effective and lasting integration of the people concerned into productive employment.

4. Article 3 of the Convention. The Committee notes the information concerning the productive development forums held involving employers' and workers' representatives and focusing, inter alia, on employment and industrial relations. The Committee requests the Government to continue to provide detailed information on the effect given to this important provision of the Convention, by specifying how often the meetings referred to are held, the issues included in their agendas, the opinions put forward and the way in which these opinions have been taken into account.

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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 the Government's report for the period from July 1992 to June 1994 and the reply to the comments made by the Committee in 1994.

1. The Government indicates that it has continued to maintain an active policy designed to promote productive and freely chosen employment, ensuring that continuing development and expansion of economic activity go along with the creation of new employment and, consequently, decrease unemployment rates. The rate of unemployment for the April-June 1993 quarter was 4.7 per cent (4.9 per cent for the same period in 1992). The Government states that it must be borne in mind that although unemployment has fallen and jobs risen, there are specific groups who are more seriously affected by unemployment and a lack of the type of jobs through which those unemployed can enter the market. The rate of unemployment for young people amounts to some 11 per cent and for women it is in the order of 6.6 per cent. These two categories of workers - according to the Government - generally obtain less well-paid jobs with less security. The Government has formulated an Equal Opportunities Plan for Women and a Work Training Programme for Young People.

2. The Government states it has formulated a development strategy based on growth with equality and that the application of macroeconomic policies is aimed at (inter alia) reducing inflation, inducing growth at a rate of 5.5 per cent, achieving increased employment in the order of 2.5 per cent per annum and improved labour productivity of 3 per cent. For its part, a more recent analysis by the ILO Regional Office for Latin America and the Caribbean (Avance panorama laboral 1995, Primer semestre - Panorama labour review 1995, First semester), indicates that fine-tuning policies to avoid economic growth prejudicing the success in controlling inflation achieved in Chile in 1994 led to a decrease in growth and higher unemployment. Nevertheless, in 1995, expected production growth increased by 6.5 per cent (as compared with 4.2 per cent recorded in 1994) and inflation in 12 months (June 1994 to July 1995) continued to drop - by 7.9 per cent (less than the previous year, which was about 8.9 per cent). It noted also that the performance of the labour market has been good: the unemployment rate dropped in the second quarter of 1995 (6.3 per cent, in 1994; 5.7 per cent in 1995) and the purchasing power of industrial and minimum wages rose.

3. For its part, the Government states that achieving full employment in itself is a very difficult goal to achieve. Nevertheless, the development and execution of policies and programmes derived from the development strategy have made it possible to obtain very low unemployment rates although some difficulties still exist in respect to job quality, levels of productive remuneration and the conditions in which workers in them operate. The Government proposes to strengthen fiscal and orientation activities on labour legislation, increasing job productivity by measures including further occupational training and professionalization of jobs which will result in higher pay. The Committee requests the Government to consider the value of referring to the instruments on human resources development (closely linked with those on employment policy) adopted by the Conference in 1975 (Convention No. 142 and Recommendation No. 150) as well as its General Survey of 1991. In its previous report, the Government mentioned a proposal to amend the Training and Employment Scheme Regulations in order to set up a system of formal consultation procedures in this area. The Committee repeats its interest in receiving information on any progress made in this respect.

4. The Committee, which for many years has been making comments on application of the Convention, appreciates the achievements which have been obtained in employment policy in the framework of a coordinated economic and social policy. It trusts that in its next report the Government will continue to supply the information required by the report form on the situation, level and trends in employment, unemployment and underemployment and the extent to which they affect special categories of underprivileged workers who have difficulty in finding lasting employment (women, young people, older workers, the long-term unemployed, workers affected by restructuring, such as those in the coal sector, indigenous peoples). Please indicate the degree to which the objectives have been achieved of increasing GDP and employment and labour productivity mentioned by the Government in its report. It asks the Government to describe in particular, in its next report, the procedures adopted to ensure that the chief measures for employment policy are revised regularly in the framework of a coordinated economic and social policy (Articles 1 and 2 of the Convention).

5. The Government states that the employment policy comprises three fundamental aspects: equity, social modernization and social consultation. In regard to social consultation, the Committee would be grateful if the Government would include in its next report indication of the effect on employment policy of consultations held so as to determine and take fully into account the experience and views of representatives of the persons affected, and of representatives of other sectors of the population such as those in the rural and the informal sector. The Committee would appreciate information on whether the support of employers and workers has been obtained in order to achieve employment and other economic and social objectives (Article 3).

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The Committee notes the Government's report for the period from July 1992 to June 1994 and the reply to the comments made by the Committee in 1994.

1. The Government indicates that it has continued to maintain an active policy designed to promote productive and freely chosen employment, ensuring that continuing development and expansion of economic activity go along with the creation of new employment and, consequently, decrease unemployment rates. The rate of unemployment for the April-June 1993 quarter was 4.7 per cent (4.9 per cent for the same period in 1992). The Government states that it must be borne in mind that although unemployment has fallen and jobs risen, there are specific groups who are more seriously affected by unemployment and a lack of the type of jobs through which those unemployed can enter the market. The rate of unemployment for young people amounts to some 11 per cent and for women it is in the order of 6.6 per cent. These two categories of workers - according to the Government - generally obtain less well-paid jobs with less security. The Government has formulated an Equal Opportunities Plan for Women and a Work Training Programme for Young People.

2. The Government states it has formulated a development strategy based on growth with equality and that the application of macroeconomic policies is aimed at (inter alia) reducing inflation, inducing growth at a rate of 5.5 per cent, achieving increased employment in the order of 2.5 per cent per annum and improved labour productivity of 3 per cent. For its part, a more recent analysis by the ILO Regional Office for Latin America and the Caribbean (Avance panorama laboral 1995, Primer semestre - Panorama labour review 1995, First semester), indicates that fine-tuning policies to avoid economic growth prejudicing the success in controlling inflation achieved in Chile in 1994 led to a decrease in growth and higher unemployment. Nevertheless, in 1995, expected production growth increased by 6.5 per cent (as compared with 4.2 per cent recorded in 1994) and inflation in 12 months (June 1994 to July 1995) continued to drop - by 7.9 per cent (less than the previous year, which was about 8.9 per cent). It noted also that the performance of the labour market has been good: the unemployment rate dropped in the second quarter of 1995 (6.3 per cent, in 1994; 5.7 per cent in 1995) and the purchasing power of industrial and minimum wages rose.

3. For its part, the Government states that achieving full employment in itself is a very difficult goal to achieve. Nevertheless, the development and execution of policies and programmes derived from the development strategy have made it possible to obtain very low unemployment rates although some difficulties still exist in respect to job quality, levels of productive remuneration and the conditions in which workers in them operate. The Government proposes to strengthen fiscal and orientation activities on labour legislation, increasing job productivity by measures including further occupational training and professionalization of jobs which will result in higher pay. The Committee requests the Government to consider the value of referring to the instruments on human resources development (closely linked with those on employment policy) adopted by the Conference in 1975 (Convention No. 142 and Recommendation No. 150) as well as its General Survey of 1991. In its previous report, the Government mentioned a proposal to amend the Training and Employment Scheme Regulations in order to set up a system of formal consultation procedures in this area. The Committee repeats its interest in receiving information on any progress made in this respect.

4. The Committee, which for many years has been making comments on application of the Convention, appreciates the achievements which have been obtained in employment policy in the framework of a coordinated economic and social policy. It trusts that in its next report the Government will continue to supply the information required by the report form on the situation, level and trends in employment, unemployment and underemployment and the extent to which they affect special categories of underprivileged workers who have difficulty in finding lasting employment (women, young people, older workers, the long-term unemployed, workers affected by restructuring, such as those in the coal sector, indigenous peoples). Please indicate the degree to which the objectives have been achieved of increasing GDP and employment and labour productivity mentioned by the Government in its report. It asks the Government to describe in particular, in its next report, the procedures adopted to ensure that the chief measures for employment policy are revised regularly in the framework of a coordinated economic and social policy (Articles 1 and 2 of the Convention).

5. The Government states that the employment policy comprises three fundamental aspects: equity, social modernization and social consultation. In regard to social consultation, the Committee would be grateful if the Government would include in its next report indication of the effect on employment policy of consultations held so as to determine and take fully into account the experience and views of representatives of the persons affected, and of representatives of other sectors of the population such as those in the rural and the informal sector. The Committee would appreciate information on whether the support of employers and workers has been obtained in order to achieve employment and other economic and social objectives (Article 3).

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With reference to its observation, the Committee asks the Government to provide information in its next report on the following points:

1. Please continue to provide information on the activities of the public placement agency system and on private placement agencies, indicating whether any measures have been taken or are planned to make the recruitment and placement of jobseekers more efficient, in particular through the public, non-fee-charging employment service.

2. Please indicate the results obtained by the programme for retraining coalworkers, and the other measures adopted to assist workers affected by industrial restructuring in finding lasting employment.

3. Please continue to provide information on the implementation of the youth training programme and indicate to what extent the objectives for the period 1991-94 have been or are in the process of being attained. In particular, the Committee would be grateful if the Government would provide the results of the evaluations of the actual impact of training programmes.

4. Article 3 of the Convention. In its report the Government refers to a proposed amendment of the Training and Employment Scheme Regulations to set up a system of formal consultation procedures in this area. The Committee would be grateful if the Government would indicate how such consultations are ensured and to refer, if appropriate, to the relevant provisions of the ILO instruments on human resources development (Convention No. 142 and Recommendation No. 150).

The Committee would be grateful if the Government would continue to provide detailed information on consultations held with employers' and workers' organizations, with particular reference to consultations "on employment policies", giving particulars of any consultations held with representatives of other sectors of the active population such as the rural and urban informal sectors.

5. Please continue to provide information on the activities carried out in the area of employment policy by the National Service for Women, the National Office for Returnees and the National Organization for Indigenous Development.

6. Lastly, the Committee would be grateful if the Government would continue to supply information on action taken as a result of PREALC technical cooperation projects, including both specific employment projects and research conducted by the Ministry of Planning and Cooperation to evaluate the impact of macroeconomic policy on income distribution and to quantify the effect of Government action in relation to the chief objective of growth with equity.

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1. The Committee notes with interest the Government's report for the period 1990-92 containing a detailed analysis of employment policy problems and the information requested in the Committee's previous comments.

2. With reference to its previous observation, the Committee notes that the employment and labour market situation has continued to improve. After a decline in 1990 as a result of the adjustment policy to cope with inflationary pressures, there was an upturn in employment growth in 1991 (more than 100,000 new jobs were created in 1991 and the employed active population grew by more than 200,000 between 1991 and 1992). The Government stresses the productive nature of the jobs created (70 per cent of them were in the industrial and construction sectors) and states that they were concentrated in the formal sector (only 25 per cent of the new jobs were in the informal sector). The downward trend in unemployment, noted previously, continued: the unemployment rate dropped to approximately 5 per cent of the active population in April-June 1992, and the Government describes this as "close to full employment". With regard to remuneration and income distribution, the information in the report shows an increase in real wages (of 4.5 per cent over the past year), largely to the advantage of low wages, partly as a result of a series of tripartite agreements on economic and social issues.

3. The Committee has received comments from the Regional Employment Programme for Latin America and the Caribbean (PREALC) concerning the Government's report, which, generally speaking, bear out the Government's analysis and evaluations. PREALC points out, however, that there are still problems in the labour market: the high percentage of workers in low productivity jobs, and regions or industries in decline (such as coal), temporary workers in the agricultural sector, and youth unemployment. The Government makes it clear that it is still worried by the problem of youth unemployment, whose rate is still double that of the active population (11 per cent) and which mainly affects young people from the poorest households.

4. The Government attributes the results obtained to the implementation of an active employment and human resources policy, within the framework of an economic policy aimed at reconciling growth and equity. The economic indicators (particularly an annual product increase rate of 7 per cent) and the above-mentioned labour market indicators (employment and unemployment) bear out the progress registered during the reporting period. The Committee notes the information on the development of consultation procedures and more extensive cooperation between the social partners, which, while they appear to focus more on wages and remuneration than employment itself, constitute progress towards meeting the requirements of Article 3 of the Convention. It also notes with interest the various PREALC technical cooperation activities and the actions taken as a result, which have furthered the application of the Convention.

5. The Committee would be grateful if the Government would continue to provide information on efforts to achieve employment objectives as laid down in Article 1, by means of measures which, under Article 2 must be decided on and kept under review within the framework of a coordinated economic and social policy.

The Committee also asks for additional information in a direct request on certain other points, and particularly the impact, which is still difficult to assess as PREALC confirms, of policies or specific instruments concerning the categories of workers or the population referred to above which are still encountering difficulties in the labour market.

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1. The Committee has taken note of the Government's report for the period July 1988 to June 1990. The report includes a detailed analysis prepared by the Ministry of Planning and Cooperation concerning employment and employment policies. In addition the Committee has received comments from the Regional Employment Programme for Latin America and the Caribbean (PREALC), which agree in pointing out that the changes in employment and wages taking place over the period concerned were favourable.

2. Following a trend that began early in the decade (when adjusted unemployment reached 28 per cent in 1982-83), employment increased rapidly until mid-1989. By 1990 the growth rate of employment had diminished considerably as a result of the policy of adjustment that had to be adopted in order to counter inflationary pressure. In 1988-90 employment increased by some 7.4 per cent, bringing down the open unemployment rate from 9.1 per cent to 6.5 per cent. The Government states that the core of the problem has shifted from open unemployment to job informality and to the low wages earned by a large proportion of the population. Poverty is said to be the main social problem, and the employment problem the chief cause of poverty. The Government's labour policy aims at maintaining a low rate of open unemployment, improving the quality of existing jobs and changing the rules that govern relations between the social partners. To those ends, several amendment Acts to the Labour Code of 1987 have been approved, with particular reference to termination of the contract of employment and job stability; to trade union federations; and to trade union organisations and collective bargaining. The Committee trusts that the Government will include in its next report information about the relationships that have come into being between the objectives of an "active" employment policy as required by the provisions of Articles 1 and 2 of the Convention and the Government's other economic and social objectives.

3. The Government states that, among the measures designed to ensure the matching of labour supply and demand at the national level, a free public system of placement offices is in operation. The existing municipal placement offices have been restructured and a pilot plan is being carried out which emphasises vocational guidance activities addressed to young persons. A programme has been devised to make it possible to train young persons in undertakings by combining training with periods of work at establishments. In this connection the Committee ventures to mention the attention paid in its 1991 General Survey to international labour instruments relating to human resource development, and trusts that the Government will continue to supply information about the effect of the measures adopted to coordinate education and training policies with prospective employment opportunities.

4. The Committee would be grateful if the Government would also include information about measures designed to meet the needs of particular categories of workers, such as those promoted by the National Service for Women and for migrant workers by the National Returnees' Office. Please include also information about the measures adopted or planned on behalf of older workers, disabled workers and indigenous populations.

5. Article 3. The Government states in its report that efforts are aimed at two objectives: flexibility, so that entrepreneurs may adapt their undertakings to market changes, together with greater stability in employment, more trade union organisation and greater bargaining power for the workers in order to ensure proper distribution of the benefits of development. The process of reforming labour legislation began with an enabling agreement between the Confederation of Production and Trade, the Unitary Central Organisation of Workers and the Government authorities. The Government also reports that committees composed of representatives of workers and employers have been set up in various parts of the country. The Committee would be grateful if the Government would supply in its next report information about the scope of the consultations, bearing in mind that on that subject the Convention provides that the representatives of those concerned shall be consulted "concerning employment policies, with a view to taking fully into account their experience and views and securing their full cooperation in formulating and enlisting support for such policies". Please also specify whether consultations have been held with representatives of other sectors of the economically active population such as those working in the rural sector and the urban informal sector.

6. Part V of the report form. The Committee has noted with interest that PREALC is cooperating with the Ministry of Finance in preparing the young people's training programme; with the Ministry of Labour and Social Security in evaluating the effects of the increase in the minimum wage; with the Ministry of Planning and Cooperation in determining the social effects of micro-economic policy; and with the Solidarity and Social Investment Fund in evaluating the credit machinery for micro-undertakings. The Committee trusts that in its next report the Government will be good enough to supply information about the action undertaken as a result of the advice received from PREALC.

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1. The Committee notes the Government's detailed report for the period between July 1986 and June 1988. In its previous observation, the Committee requested the Government to pay particular attention to information on the evolution of employment in the public and private sectors, on the role played by the informal sector in job creation, on the unemployment situation of educated young persons and on productive employment and on the employment created through special programmes such as the Minimum Employment Programme (PEM) and the Employment Programme for Heads of Households (POJH). Furthermore, the Committee expressed its concern at the ability of the measures adopted by the Government to ensure both that the system of education and training is designed to meet the needs of the national economy and that there is the opportunity for individuals to qualify for and use their skills in jobs for which they are well suited, as required by Article 1 of the Convention.

2. As regards overall policy measures, the Government has supplied an analysis containing information on the co-ordination of tariff, fiscal, investment and taxation policies and their impact on employment policy, prepared by the National Planning Office (ODEPLAN). In this document, it is stated that, in order to resolve the problem of debt in a realistic manner and seek measures to lessen its financial burden, adjustment by means of expansion of the economy was sought. In view of the existence of a secondary market for Chilean external debt, a system was introduced authorising its capitalisation through the conversion of external debt shares into domestic bonds, and it is claimed that these incentives to investment were an important stimulus to employment in the medium term and resulted in increases in real incomes. In its assessment of the results of the strategy adopted to overcome the effects of the economic crisis in 1982, ODEPLAN indicates that the economic recovery (a sustained growth rate of nearly 5 per cent annually since 1984) and especially the boom in the export sector have permitted a considerable reduction in unemployment. The Committee notes with interest that the information supplied by the Government shows an increase of 6.4 per cent in the number of persons employed for the period July 1987-September 1988, a decrease of 8.2 per cent in the number of unemployed persons and a fall of 3.4 per cent in the unemployment rate, which was estimated at 8.7 per cent of the economically active population in 1988. The information supplied by the Regional Employment Programme for Latin America and the Caribbean (PREALC) confirms this trend in employment and unemployment, but indicates that this improvement was not accompanied by an equally significant recuperation of real incomes since the remuneration of most workers, and particularly those in the construction and agricultural sectors, and the least skilled, remained very low. In parallel, the number of persons registered under government employment programmes, which was higher than 500,000 workers in 1983, also fell drastically. In September 1988, 5,413 persons were registered under the PEM and 20,583 under the POJH. In a general report for the period ending 30 June 1989, the Government states that in December 1989 the PEM and POJH programmes were terminated, following the transfer of those registered under these programmes to stable and productive employment.

3. As regards education and vocational training policies, the Government's report describes the "enterprises' programme", under which part of the cost of staff training measures can be offset, and the vocational training programmes administered by the National Training and Employment Service (SENCE). The Government indicates that within each university and vocational training institute the occupational careers that are available are matched with those requested by the students. It also states that, although there have been dismissals of teaching staff, there have been no cases of conscientious students being unable to obtain diplomas, because, as a criterion for the rationalisation, it was decided to maintain the student/teacher ratio in proportion to the needs of each municipalities. The Government supplies information on the number of teachers who were dismissed (6,118 teachers) and states that the number of actual dismissals only represented 2.5 per cent of the total number of teachers in the education sector. In this respect, the Committee recalls that the Conference Committee, at its 1987 Session, shared, in particular, its concerns in relation to the dismissal of teachers and the political aspects of education and training as elements of an employment policy. The Committee on Freedom of Association also urged the Government to examine the possibility, within the flexibility measures introduced for the reinstatement of teachers, to give particular consideration to the case of laid off teachers who were trade union officers.

4. The Committee would be grateful if the Government would continue supplying information on the matters raised in this observation and the information required by the report form under Articles 1, 2 and 3 of the Convention on new employment policy measures adopted to attain the objectives of the Convention. It trusts that, in particular, information will be supplied on the wages and incomes policy, the measures designed to harmonise the supply and demand of labour and structural changes, teaching and vocational training policies and measures to guarantee that each worker has the opportunity to acquire the necessary training. The Committee would also be grateful if the Government would describe the measures that have been taken to meet the needs of particular categories of workers (women, young persons, the disabled, indigenous populations, etc.). Finally, the Committee would be grateful if the Government would supply additional information on the procedures adopted to ensure that the effects on employment of measures taken to promote economic development or other economic and social objectives receive due consideration (Article 2) and also on consultations with representatives of social partners in relation to employment policy, with particular reference to consultations with representatives of other sectors of the economically active population such as the rural sector and the informal sector (Article 3).