Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Paraguay (RATIFICATION: 1964)

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A Government representative stated that the labour authorities had had to intervene in many disputes between workers and employers. The Ministry of Justice and of Labour had convened several tripartite meetings with a view to allowing dialogue so that a solution could be found to the workers' claims. Non-observance of the obligation incumbent upon it had been noted on the part of the enterprise concerned. The labour authorities had imposed a fine of 88,571,502 Guarani, the equivalent of $44,285, in conformity with Resolution No. 1 of 5 January 1993. This decision was the object of an appeal before the Supreme Court of Paraguay. This dispute triggered off a strike by the workers of the enterprise. The mediation of the Minister in the dispute resulted in an agreement. The enterprise Eximpora SA committed itself to pay immediately the minimum wage to all the workers. This question had also been submitted to the Human Rights Committee of the National Congress which had taken measures for which it was competent. With regard to the mass dismissal of workers, the Ministry of Justice and Labour jointly with the representatives of the Senate, managed to get the parties to sign an agreement which provided that the enterprise would pay wages in conformity with the labour legislation of the country.

The speaker emphasized that this situation was an isolated case and could not be considered as being a general phenomenon. The Government had committed itself to ensuring that the provisions of the Labour Code as well as the decisions handed down by the judiciary were observed.

As for Chapter 2 of the Labour Code which spoke of specific machinery for setting minimum wages, the speaker stated that the National Minimum Wage Council, in which the three social partners were represented, was functioning normally and that upon its recommendation the Government had decided to raise minimum wages by 10 per cent from 1 April 1996. In the month of May, tripartite negotiations had been initiated once again and had broached the issue of the minimum wage. Further to a government proposal, dialogue was continuing on this subject.

The Government had met with representatives of the public sector to examine the claims formulated by the trade union confederation in this sector to finalize a draft code respecting the civil service and to examine problems of workers in this sector. These measures showed the importance of dialogue between the three parties. Disputes had thus been resolved through dialogue, negotiation and tripartite agreement. The number of situations which were resolved similarly had increased. The speaker stated that the General Labour Inspectorate had handed down 54 decisions in 1995 imposing fines against enterprises because of violations of labour legislation.

Finally, stressing the efforts deployed by the Ministry of Justice and of Labour with the aim of ensuring the observance of labour legislation, the speaker reaffirmed the political will of his Government to intensify its cooperation with the ILO.

The Workers' members thanked the Government representative for the intention that he had expressed of continuing the dialogue, also with workers' organizations, in order to improve the situation. The case related to the follow-up to the conclusions and recommendations made by the tripartite committee and approved by the ILO Governing Body as a result of the representation that had been made under article 24 of the Constitution by the CLAT concerning non-observance of Convention No. 26.

The comments of the Committee of Experts related to four points. The first of these concerned the non-observance in practice of the minimum wages fixed by the legislation that was in force. Although the legislation that was necessary to give effect to the Convention existed, problems arose with its application in practice. The example of the enterprise Eximpora SA, cited by the Committee of Experts, was only one of many examples which illustrated the widespread practice in Paraguay of not respecting minimum wages. The second problem consisted of the non-participation of workers' organizations in the fixing of minimum wages. In the third place, the supervisory and inspection services did not function properly and, as a consequence, the practical application of the legislation and of the Convention was not guaranteed. Fourthly, the labour administration did not take the necessary measures to ensure that the additional remuneration due to workers, namely the difference between the minimum wage and what had actually been paid, was actually received by them in practice.

In this case, despite the existence of a national Constitution which provided for the right to a minimum wage, as well as the adoption of legislation thereunder and supervisory machinery, at least on paper, the fact remained that minimum wages were not respected. Paragraph 21 of the conclusions of the tripartite committee indicated, on the basis of the various analyses carried out under the auspices of the ILO, that only 42 per cent of workers earned a wage that was equivalent to or higher than the minimum wage. Strikes had been called and hunger strikes organized in several enterprises to call for the observance of minimum wages. The surveys that were needed to identify violations had not been carried out, and the machinery envisaged in order to be able to reclaim the additional wages due, was not operational.

The Workers' members called for the implementation of the conclusions and recommendations of the tripartite committee, to which the Committee of Experts had referred. The Government should also provide detailed information on the application of the Convention in practice, including statistics, reports of inquiries and the sanctions imposed, as had been requested by the Committee of Experts. It was particularly important to provide this additional data since the information provided by the Government representative appeared to be in contradiction with the situation, as described in the report of the Committee of Experts.

The Employers' members indicated that, while the Experts' report stated that there were appropriate regulations and a tripartite committee to consider all the questions of the establishment of a minimum wage, the problem appeared to be whether this committee in fact really operated or not, because according to what was said by the Government representative, the Workers' side did not send a representative to the Committee. Generally speaking, it was the problem of whether the minimum wages were, in fact, paid in practice, or whether individual agreements were acceptable in practice, according to which there could be an abatement of the minimum wage. According to the labour legislation, a claim could be lodged against the employer if he paid less than the minimum wage, and then within 30 days he had to pay the difference. But of course, the whole thing was a question of implementation of the labour inspectorate and of measures taken in order to ensure that the law was actually applied. The Committee on Freedom of Association and the tripartite committee of the Governing Body in their reports called for measures that in general would provide for a better implementation of the minimum wage system. The Government representative had also referred to a number of cases and representations that were pending which demonstrated that this was a frequent problem.

Therefore, in the Employers' view, the Government should take every measure to ensure that the legislative provisions governing the minimum wage should be observed in practice, and that there should be sufficient supervision in order to make sure that the minimum wage really could be paid, and if there was any difference between what was in fact paid and what should be, that difference should be paid up. All of this should be done on a tripartite basis. The Employers' members requested the Government to provide full information in their next report so as to enable the Committee to once again comprehensively consider the situation.

The Workers' member of Colombia stated that, according to the information obtained, there was a new team in the Ministry of Labour which could also mean a new stage in the handling of labour relations. Nevertheless, he expressed profound disagreement with the way in which the minimum wage was established without taking into account the views of the workers. In Latin American countries now, more than ever, it was necessary to agree on minimum wages, above all taking into account their precarious nature. However, on many occasions the Ministers of Labour did not accept the responsibility that they should, in order to guarantee that these minimum wages which were very low, in fact be paid to the workers.

The Government representative of Paraguay reiterated that in the tripartite committee for fixing the minimum wage there were representatives of the workers. Furthermore, at the moment in Paraguay there was an ongoing dialogue between employers, workers and the Government with a view to establishing a new machinery for fixing the minimum wage which would take inflation into account. While it would be wrong to pretend that there were no problems in Paraguay in this respect, the Ministry of Labour carried out its responsibility and was making efforts in order to fulfil everything that was laid down by the international Conventions, the national Constitution and the laws of the country. The Paraguayan delegation to this Conference was composed of one deputy minister and five workers' representatives from all the union centres of the country. Ever since the new team took over in the Ministry, the policy had been changed completely. Before there was a policy of confrontation, whereas now the actual attitude was to monitor and seek a dialogue with the workers and try to reconcile their interests with those of the employers.

The Committee took note of the information provided by the Government representative and of the discussion that took place. Noting that under national legislation there still existed serious problems with respect to the practical application of the Convention, the Committee hoped that the Government would take all necessary measures to ensure full conformity with the Convention. It hoped that the next report of the Government would contain detailed and complete information regarding the measures taken or envisaged, including statistics, so that it would be able in the near future to record concrete and substantial progress.

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Previous comment

In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on wages, the Committee considers it appropriate to examine Conventions Nos 26 and 99 (minimum wages) together.

Minimum wage

Article 4 of Conventions Nos 26 and 99. Supervision and sanctions. With reference to its previous comments, the Committee notes the Government’s information in its report that, with the entry into force of the adjustment of the minimum wage through Decree No. 7270 of 2022, a communication and dissemination campaign was launched. The Committee notes that the information prepared by the Ministry of Labour, Employment and Social Security (MTESS) contained details on sectoral minimum wages and on which authorities to consult in cases of violation of the provisions on minimum wages. The Committee also notes the Government’s indication that: (i) the Labour Department of the MTESS has handled complaints from more than 560 informal workers since 2019, demanding an adjustment to the current minimum wage; and (ii) report No. 07/2023 of the Department of Inspection for Labour and Occupational Safety of the MTESS sets out that, as part of the labour inspection procedures, compliance with the current minimum wage is monitored by checking payslips with the date of the inspection against the total number of workers in the enterprise.

With regard to the agricultural sector, the Government indicates that thorough inspections have been carried out in rural workplaces in Chaco and refers, specifically, to memorandum No. 306/2023 of 9 June 2023 of the Department of Inspection and Monitoring, setting out the inspection procedures for workplaces located in Chaco Paraguayo. From the memorandum, the Committee notes that 13 inspections were conducted, five of which concluded with reports of infringements, including failure to comply with the minimum wage. The Committee once again requests the Government to provide information on the cases dealt with by the individual and collective dispute settlement services relating to the minimum wage, including the number of cases, the problems reported and the results achieved. The Committee also requests the Government to provide information on the measures adopted or envisaged to ensure payment of the minimum wage, including data on the number of inspections conducted, number of workers involved, infringements detected and penalties imposed, in particular with regard to the agricultural sector. The Committee also refers to its comments on the application of the Labour Inspection Convention, 1947 (No. 81).

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In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on wages, the Committee considers it appropriate to examine Conventions Nos 26 and 99 (minimum wages) and 95 (protection of wages) in a single comment.

Minimum wage

Articles 1 and 3(1) and (2)(1) and (2), of Convention No. 26, and Articles 1 and 3(1), (2) and (3) of Convention No. 99. Scope of application. Minimum wage-fixing machinery. In its previous comments, the Committee requested the Government to provide additional information on the reform process of the minimum wage policy and any results achieved. The Committee notes the Government’s indication in its report that, following consultations with the social partners, the minimum wage-fixing machinery was reformed through the adoption of Act No. 5764 of 29 November 2016, which amended section 255 and repealed section 256 of the Labour Code. The Committee notes that: (i) section 255 of the Labour Code provides that the examination of the adjustment of the minimum wage shall be undertaken by the executive authorities upon the proposal of the National Minimum Wage Council (CONASAM) based on the interannual fluctuations in the consumer price index and their impact on the national economy, in June each year; (ii) the CNASAM is a tripartite body in which representatives of employers and workers participate in equal numbers (section 252 of the Labour Code); and (iii) following the reform, adjustments were adopted to the minimum wage for workers in the private sector and workers in agricultural undertakings in 2016, 2017 and 2018.

Article 4 of Conventions Nos 26 and 99. Supervision and sanctions. With reference to its previous comments, the Committee notes the information provided by the Government on labour inspections and judicial proceedings relating to the minimum wage between 2015 and 2017. It also notes the Government’s indications that the General Directorate of Labour is planning to launch awareness-raising campaigns for employers on compliance with the payment of the minimum wage and that it is making available to the workers concerned individual and collective dispute settlement channels for complaints by those who are paid wages below the statutory minimum level. The Committee requests the Government to provide information on the awareness-raising campaigns on payment of the minimum wage that have been launched or planned, and on the cases dealt with by the individual and collective dispute settlement services relating to the minimum wage, including the number of cases, the problems reported and the results achieved. The Committee also refers to its comments on the application of the Labour Inspection Convention, 1947 (No. 81).

Protection of wages

Article 2 of Convention No. 95. Scope of application. With reference to its previous comments, the Committee notes the Government’s indication that the provisions of the Convention are applied to all persons in a dependent employment relationship at the national level and that they are implemented in the Labour Code.

Article 4(1). Partial payment of wages in kind. Prohibition of the payment of wages in the form of liquor of high alcoholic content or noxious drugs. With reference to its previous comments, the Committee notes the Government’s indication that: (i) the payment of wages in the form of liquor of high alcoholic content or noxious drugs is prohibited, as such forms of payment do not comply with the requirement that they be appropriate for the personal use and benefit of the worker and her or his family, as set out in section 231 of the Labour Code in respect of the partial payment of wages in kind; (ii) no complaints have been lodged by workers, including agricultural workers, concerning payments in the form of liquor of high alcoholic content or noxious drugs; and (iii) section 392 of the Labour Code provides that any employer who sets up at the workplace stores selling intoxicating drinks or drugs, or gambling facilities, shall be liable to a fine of a minimum of 30 days’ wages, which shall be doubled in the event of a repeat offence.

Articles 3, 6, 7(1) and 12(1). Payment of wages in legal tender and prohibition of payment in a form alleged to represent legal tender. Prohibition on limiting the freedom of workers to dispose of their wages. Prohibition of any coercion on workers to make use of works stores. Regular payment of wages. With reference to its previous comments, the Committee notes the information provided by the Government on the measures adopted in relation to the issue of forced labour, including inspections and visits in the Paraguayan Chaco region with a view to ascertaining working conditions. Recalling that this subject is being examined in the framework of the Forced Labour Convention, 1930 (No. 29), and the Indigenous and Tribal Peoples Convention, 1989 (No. 169), the Committee refers to its comments on the application of these Conventions.

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Articles 1 and 3 of the Convention. Minimum wage-fixing machinery. The Committee notes that under Executive Decree No. 6472 of 20 April 2011, the minimum wage for workers of the private sector was raised by 10 per cent in various sectors and occupations. The Committee recalls that under sections 255 and 256 of the Labour Code, the rate of the minimum wage remains in force for two years, unless a significant deterioration is observed in the conditions of a particular area or industry due to economic or financial factors or a fluctuation in the cost of living by more than 10 per cent, in which case the National Minimum Wage Council (CONASAM) meets and considers the need to readjust the minimum wage level. The Committee understands that, in practice, the clause on the 10 per cent fluctuation of the inflation rate has been frequently used, resulting in a variable periodicity of minimum wage adjustments. The Committee also understands that since 2009, the Social Dialogue Roundtable on the Minimum Wage, composed of representatives of the Government, the social partners and other concerned stakeholders, aims at reforming the current minimum wage policy, for instance, by establishing the annual revision of the minimum wage rate and by identifying relevant criteria for such revision, such as inflation, economic activity and unemployment. The proposed reform is also meant to re-establish the key functions of the minimum wage as a means to protect vulnerable workers such as young persons, promote the formalization of labour relationships, and support collective bargaining. The Committee requests the Government to provide additional information on the ongoing reform process and any results achieved so far.

With respect to its previous comment regarding discriminatory pay practices against domestic workers, the Committee notes the Government’s indication that an office for assistance to domestic workers has been created by Resolution No. 124/2010, for the purpose of receiving individual claims and promoting awareness-raising activities to eradicate discriminatory practices against domestic workers. The Government also indicates that the Office for Assistance to Domestic Workers has prepared a draft bill recommending that the minimum wage for domestic workers be fixed at 60 per cent of the minimum wage rate for miscellaneous activities in the private sector. The Committee requests the Government to keep the Office informed of any progress concerning the establishment of the minimum wage rate for domestic workers. It also requests the Government to provide additional information on the activities of the Office for Assistance to Domestic Workers and practical results achieved so far.

Article 5 and Part V of the report form. Application in practice. The Committee notes with concern that, according to the statistical information provided by the Government, non-compliance with applicable minimum wage rates in the period 2009–11 remained particularly high with up to 60 per cent of private sector employees and almost 19 per cent of public sector employees earning less than the minimum wage. The Committee recalls, in this respect, that as it was pointed out by the ILO Governing Body in 1995, in the context of the representation made under article 24 of the ILO Constitution by the Latin American Central of Workers (CLAT) alleging non-observance by Paraguay of Convention No. 26, this is not a problem of legal provisions, or an incompatibility between national legislation and the provisions of the Convention, but instead it involves a failure to comply in practice with the provisions of the Convention. In its conclusions, the Governing Body had noted that the legal minimum wage appeared to be a desired goal rather than an actual right, and had urged the Government to take rapidly the necessary measures to ensure compliance with prescribed obligations. In addition, the Committee recalls that in 1996 in examining the application of Convention No. 26 by Paraguay, the Conference Committee on Application of Standards concluded that there still existed serious problems with respect to the practical application of the Convention and the Government should take all necessary measures to achieve concrete and substantial progress in the near future. In light of the preceding observations, the Committee requests the Government to indicate how it intends to redress the persistently high rate of non-compliance with the statutory minimum wage rates. It also requests the Government to continue to provide up-to-date information on the effect given to the Convention in practice, in particular inspection results showing the number of visits carried out, infringements of the minimum wage legislation observed and sanctions imposed.

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Articles 1 and 3 of the Convention. Minimum wage fixing. The Committee notes the adoption of Decree No. 11.137 of 24 October 2007 increasing minimum wage rates by 10 per cent, as well as Decisions Nos 700, 701, 702, 703, 704, 705, 706 and 707 of 30 October 2007, fixing the level of the minimum wage by sector and occupation. It further notes that, under the terms of sections 255 and 256 of the Labour Code of 1995, the rate of the minimum wage remains in force for two years, unless a significant deterioration is observed in the conditions in a particular area or industry, due to economic or financial factors, and a fluctuation in the cost of living estimated at a minimum of 10 per cent. In this respect, the Committee understands that the National Minimum Wage Council (CONASAM) met in January 2009, and recommended a readjustment of the minimum wage in the private sector following an increase of over 10 per cent in the cost of living, but leaving the percentage of the increase to be decided by the executive authorities. The Committee requests the Government to keep the Office informed of any developments in this field and to provide a copy of any relevant text that is adopted.

Furthermore, the Committee notes from official documents, such as the conclusions of the Committee on the Elimination of Discrimination against Women (CEDAW) (document CEDAW/C/PAR/CC/3-5 of 2005, paragraph 30) and the conclusions of the United Nations Committee on Economic, Social and Cultural Rights (document E/C.12/PRY/CO/3 of 2008, paragraph 15) that domestic workers are reported to be the victims of discriminatory practices in terms of the payment of wages that are lower than half the minimum wage for 12‑hour working days. The Committee requests the Government to provide additional information on the coverage of domestic workers in relation to minimum wages in both law and practice.

Part V of the report form. Application in practice. The Committee notes the extracts from judicial rulings included in the Government’s report. It also notes the request made to the Office for technical assistance with a view to improving the system for the collection of data and the training of labour inspectors. The Committee refers, in this respect, to the observation that it is making under Convention No. 81 and requests the Government to provide detailed information on the application of the Convention in practice including, for example, extracts from the reports of the inspection services indicating the number of violations reported in relation to minimum wages, the number of workers covered by the relevant legislation, studies or collective agreements containing provisions on minimum wages, etc. The Committee is also bound to draw the Government’s attention once again to the situation of the indigenous population of Chaco and the systematic violation of the minimum wage legislation in their regard, as described in the Committee’s comments under Conventions Nos 29, 95 and 169, and it requests the Government to provide fuller information on any measures adopted or envisaged to remedy this situation.

Finally, the Committee wishes to take this occasion to draw the Government’s attention to the conclusions of the ILO Governing Body based on the recommendations of the Working Party on Policy regarding the Revision of Standards (GB.283/LILS/WP/PRS/1/2, paragraphs 19 and 40). The Governing Body decided that Convention No. 26 was among the instruments that may no longer be fully up to date but which remain relevant in certain respects. The Committee therefore suggests that the Government should consider the possibility of ratifying the Minimum Wage Fixing Convention, 1970 (No. 131), which contains certain advances compared to older instruments on minimum wage fixing, such as its broader scope of application, the requirement for a comprehensive minimum wage system and the adoption of certain criteria for the determination of minimum wage levels. The ratification of Convention No. 131 would appear to be particularly advisable as the legislation in Paraguay respecting minimum wages appears to be broadly in conformity with the requirements of this instrument. The Committee requests the Government to keep the Office informed of any decision adopted or envisaged in this respect.

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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 Executive Decree No. 18264 of 14 August 2002, issued pursuant to the recommendation of the National Minimum Wage Council (CONASAM) of 6 August 2002, which raises the minimum wage by 12 per cent for workers in the private sector only. The Committee also notes resolutions Nos. 536 and 537, dated 22 August 2002, of the Ministry of Justice and Labour, which fix monthly wage rates by occupational category. The Committee requests the Government to indicate in its next report the minimum wage rates applicable to the economic sectors or branches of activity not covered by the above resolutions.

With regard to its previous observations relating to the effective application of the national minimum wage legislation, the Committee wishes to emphasize once again that legislative compliance with the Convention cannot by itself ensure implementation where the law is not applied in practice. Therefore, the Committee requests the Government to make every effort to collect and communicate detailed and documented information on the operation of the inspection system to ensure that the minimum wage provisions are being applied and workers are able to recover the amounts by which they have been underpaid as a result of wage payments lower than applicable minimum wage rates. In this respect the Committee recalls that, although the laws and regulations relating to minimum wage fixing machinery appear to be in conformity with the provisions of the Convention, serious problems relating to their application in practice led to a complaint under article 24 of the ILO Constitution in 1995 and a debate in the Conference Committee for the Application of Standards in 1996. In the light of the recommendations addressed to the Government in recent years, the Committee hopes that the Government will provide in its next report all the information that it requires to reassess the situation in a comprehensive manner.

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The Committee notes the information contained in the Government’s report and the attached documentation. The Committee notes in particular Executive Decree No. 18264 of 14 August 2002, issued pursuant to the recommendation of the National Minimum Wage Council (CONASAM) of 6 August 2002, which raises the minimum wage by 12 per cent for workers in the private sector only. The Committee also notes resolutions Nos. 536 and 537, dated 22 August 2002, of the Ministry of Justice and Labour, which fix monthly wage rates by occupational category. The Committee requests the Government to indicate in its next report the minimum wage rates applicable to the economic sectors or branches of activity not covered by the above resolutions.

With regard to its previous observations relating to the effective application of the national minimum wage legislation, the Committee wishes to emphasize once again that legislative compliance with the Convention cannot by itself ensure implementation where the law is not applied in practice. Therefore, the Committee requests the Government to make every effort to collect and communicate detailed and documented information on the operation of the inspection system to ensure that the minimum wage provisions are being applied and workers are able to recover the amounts by which they have been underpaid as a result of wage payments lower than applicable minimum wage rates. In this respect the Committee recalls that, although the laws and regulations relating to minimum wage fixing machinery appear to be in conformity with the provisions of the Convention, serious problems relating to their application in practice led to a complaint under article 24 of the ILO Constitution in 1995 and a debate in the Conference Committee for the Application of Standards in 1996. In the light of the recommendations addressed to the Government in recent years, the Committee hopes that the Government will provide in its next report all the information that it requires to reassess the situation in a comprehensive manner.

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The Committee notes the report submitted by the Government.

Article 3, paragraph 2(2) and (3), of the Convention (in conjunction with point V of the report form).In its previous comments, as regards implementation of the recommendations adopted by the Governing Body subsequent to the complaint submitted by the Latin American Central of Workers (CLAT), the Committee requested the Government to indicate the measures taken or envisaged to ensure the application of the national legislation so as to guarantee: (i) the participation of representatives of workers and employers in minimum wage fixing machinery, in accordance with Article 3, paragraph 2(2); and (ii) the right to receive the minimum wage rates fixed, which may not be subject to abatement by individual agreement, in accordance with Article 3, paragraph 2(3).

In its reply, the Government states that the enterprise named in the representation has agreed to comply with the legislative provisions it violated. It has also been subjected to an administrative sanction in the form of a fine of 88,571,502 guaranis (about US$43,400) which it has appealed to have quashed. The matter is currently before the Constitutional Chamber of the Supreme Court of Justice. The Committee requests the Government to continue to provide information on developments in the affair and to send copies of any relevant decisions which may be handed down.

Furthermore, the Committee notes with interest Decrees Nos. 8542/95, 12459/96, 15245/96 and 16031/97 concerning the composition of the National Minimum Wage Council (CONASAM). It notes in particular that employers and workers are represented on an equal footing in this consultative body.

Article 4 (in conjunction with point V of the report form).In its previous comments, the Committee noted that section 259 of the Labour Code provides that "any worker who has received a wage lower than the established minimum is entitled to reclaim from his employer the amount remaining due. The labour administration shall establish a time period for the recovery of this amount, which may not exceed 30 days". The Committee also noted that, without prejudice to the other measures contained in the Code (section 384), section 390 provides that "employers who pay their workers wages lower than the minimum legal amount or the amount established by collective agreement shall be punishable by a fine amounting to a minimum of 30 days' wages for each worker concerned and double that amount for any repetition of the offence". The Committee also noted that responsibility for ensuring the application of the requirements set out in labour laws and regulations and compliance with the obligations contained in the Labour Code is entrusted to the labour inspection services, by virtue of Decree No. 3286 of 4 March 1964, which empowers those services to carry out direct inquiries to identify violations and refer them to the labour administration (Directorate of Labour). The Committee then requested the Government to indicate the measures which had been taken or were envisaged to ensure the application of the national legislation with a view to: (i) making possible the operation of the national bodies responsible for supervising the application of the standards respecting minimum wages; and (ii) guaranteeing, through the labour administration authority, the recovery of any further wages due to workers who have received wages lower than the applicable minimum wage.

The Committee notes the Government's indication that there is a body of labour inspectors who carry out inspections which may be ordinary, or special in cases of complaints, which numbered 767 during 1996. It notes that these inspections were not followed by sanctions. In addition, the Committee notes that section 259 of the Labour Code provides specifically that the fixing of a minimum wage automatically modifies labour contracts stipulating a lower wage and that any contractual clause establishing a wage lower than the legal minimum is null and void.

The Committee requests the Government to supply information on the application in practice of this Article and, particularly, on the number of appeals presented to the labour administration authority. It requests the Government to continue to supply information on the application of the Convention in practice, in accordance with point V of the report form.

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The Committee notes the detailed discussion which took place in the Conference Committee in 1996. It must express its regret that it has not received a detailed report from the Government, as requested in its previous observation and in consequence of the Conference Committee's conclusions. It must therefore repeat its previous observation on the following points:

The Committee notes the conclusions and recommendations of the tripartite committee set up to examine the representation made by the Latin American Central of Workers (CLAT), which were approved by the Governing Body of the ILO at its 264th Session (November 1995). Article 3, paragraph 2(2) and (3), of the Convention (in relation with point V of the report form). The Committee recalls that in its representation the CLAT states that the enterprise EXIMPORA SA has not complied with national minimum wages standards, which tantamounts, by implication, to non-compliance with the provisions of Article 3, paragraph 2(3), of the Convention, which guarantees the right to receive the minimum rates of wages, as fixed nationally, and at the same time excludes the possibility that these rates may be subject to abatement by individual agreement. The Committee also recalls the Government's statement in its communication that the Labour Code, in Chapter II, establishes and regulates the minimum wage, as well as determining the machinery for fixing it and the cases in which it may be modified as a function of the economic situation and variations in the cost of living. The Government indicates that section 252 of the Labour Code envisages the establishment of a tripartite body, the National Minimum Wage Council, which it has not yet been possible to establish due to the fact that the Workers' Central Organization (CUT) and the Latin American Central of Workers (CLAT) have not appointed their representatives. However, the Government adds that, in accordance with section 256 of the Labour Code, Decree No. 4598, adopted on 11 July 1994, raises minimum wages in order to take into account the increase in the cost of living and the decline in the purchasing power of the population. Nevertheless, the Committee notes that according to the various studies carried out under the auspices of the ILO on labour relations in Paraguay, the situation denounced by the CLAT is only one example among many of the generalized non-compliance with the obligations deriving from the Convention. The Committee requests the Government to indicate the measures which have been taken or are envisaged to ensure the application of the national legislation so as to guarantee: (i) the participation of representatives of workers and employers in minimum wage fixing machinery, in accordance with Article 3, paragraph 2(2); and (ii) the right to receive the minimum rates of wages which have been fixed, which may not be subject to abatement by individual agreement, in accordance with Article 3, paragraph 2(3). Article 4 (in conjunction with point V of the report form). The Committee notes that section 259 of the Labour Code provides that "any worker who has received a wage lower than the established minimum is entitled to reclaim from his employer the amount remaining due. The labour administration shall establish a time period for the recovery of this amount, which may not exceed 30 days." The Committee also notes that, without prejudice to the other measures contained in the Code (section 384), section 390 provides that "employers who pay their workers wages lower than the minimum legal amount or the amount established by collective agreement shall be punishable by a fine amounting to a minimum of 30 days' wages for each worker concerned and double that amount for any repetition of the offence". The Committee also notes that the responsibility for ensuring the application of the requirements set out in labour laws and regulations and compliance with the obligations contained in the Labour Code is entrusted to the labour inspection services, by virtue of Decree No. 3286 of 4 March 1964, which empowers those services to carry out the necessary inquiries to identify violations and refer them to the labour administration (Directorate of Labour). The Committee requests the Government to indicate the measures which have been taken or are envisaged to ensure the application of the national legislation with a view to: (i) making possible the operation of the national bodies which are responsible for supervising the application of the standards respecting minimum wages; and (ii) guaranteeing, through the labour administration authority, the recovery of any further wages due to workers who have received wages lower than the applicable minimum wage. Point V of the report form. The Committee would be grateful if the Government would supply information on the effect given in practice to the Convention: (i) by supplying the available statistical data on the number and various categories of workers covered by the minimum wage regulations; and (ii) by indicating, for example, the results of the inspections carried out, the violations reported and the sanctions imposed.

The Committee hopes that the Government will make every effort to take the necessary action in the very near future.

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The Committee notes that the Governing Body at its 261st Session (November 1994) entrusted to a tripartite committee, the examination of a representation made by the Latin American Central of Workers (CLAT), under article 24 of the Constitution, alleging non-compliance by Paraguay with Convention No. 26 on minimum wage fixing machinery.

In accordance with normal practice, the Committee is postponing its comments on the application of the Convention pending the Governing Body's adoption of the conclusions and recommendations of the above committee.

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The Committee notes the conclusions and recommendations of the tripartite committee set up to examine the representation made by the Latin American Central of Workers (CLAT), which were approved by the Governing Body of the ILO at its 264th Session (November 1995).

Article 3, paragraph 2(2) and (3), of the Convention (in relation with point V of the report form). The Committee recalls that in its representation the CLAT states that the enterprise EXIMPORA SA has not complied with national minimum wages standards, which tantamounts, by implication, to non-compliance with the provisions of Article 3, paragraph 2(3), of the Convention, which guarantees the right to receive the minimum rates of wages, as fixed nationally, and at the same time excludes the possibility that these rates may be subject to abatement by individual agreement. The Committee also recalls the Government's statement in its communication that the Labour Code, in Chapter II, establishes and regulates the minimum wage, as well as determining the machinery for fixing it and the cases in which it may be modified as a function of the economic situation and variations in the cost of living. The Government indicates that section 252 of the Labour Code envisages the establishment of a tripartite body, the National Minimum Wage Council, which it has not yet been possible to establish due to the fact that the Workers' Central Organization (CUT) and the Latin American Central of Workers (CLAT) have not appointed their representatives. However, the Government adds that, in accordance with section 256 of the Labour Code, Decree No. 4598, adopted on 11 July 1994, raises minimum wages in order to take into account the increase in the cost of living and the decline in the purchasing power of the population. Nevertheless, the Committee notes that according to the various studies carried out under the auspices of the ILO on labour relations in Paraguay, the situation denounced by the CLAT is only one example among many of the generalized non-compliance with the obligations deriving from the Convention.

The Committee requests the Government to indicate the measures which have been taken or are envisaged to ensure the application of the national legislation so as to guarantee: (i) the participation of representatives of workers and employers in minimum wage-fixing machinery, in accordance with Article 3, paragraph 2(2); and (ii) the right to receive the minimum rates of wages which have been fixed, which may not be subject to abatement by individual agreement, in accordance with Article 3, paragraph 2(3).

Article 4 (in conjunction with point V of the report form). The Committee notes that section 259 of the Labour Code provides that "any worker who has received a wage lower than the established minimum is entitled to reclaim from his employer the amount remaining due. The labour administration shall establish a time period for the recovery of this amount, which may not exceed 30 days." The Committee also notes that, without prejudice to the other measures contained in the Code (section 384), section 390 provides that "employers who pay their workers wages lower than the minimum legal amount or the amount established by collective agreement shall be punishable by a fine amounting to a minimum of 30 days' wages for each worker concerned and double that amount for any repetition of the offence". The Committee also notes that the responsibility for ensuring the application of the requirements set out in labour laws and regulations and compliance with the obligations contained in the Labour Code is entrusted to the labour inspection services, by virtue of Decree No. 3286 of 4 March 1964, which empowers those services to carry out the necessary inquiries to identify violations and refer them to the labour administration (Directorate of Labour).

The Committee requests the Government to indicate the measures which have been taken or are envisaged to ensure the application of the national legislation with a view to: (i) making possible the operation of the national bodies which are responsible for supervising the application of the standards respecting minimum wages; and (ii) guaranteeing, through the labour administration authority, the recovery of any further wages due to workers who have received wages lower than the applicable minimum wage.

Point V of the report form. The Committee would be grateful if the Government would supply information on the effect given in practice to the Convention: (i) by supplying the available statistical data on the number and various categories of workers covered by the minimum wage regulations; and (ii) by indicating, for example, the results of the inspections carried out, the violations reported and the sanctions imposed.

[The Government is asked to report in detail in 1996.]