Minimum Wage Fixing Convention, 1970 (No. 131) - Brazil (RATIFICATION: 1983)

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The Committee notes the observations of the National Confederation of Liberal Professions (CNPL) received in 2016. 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 Convention No. 131 (Minimum Wage Fixing) and Convention No. 95 (Protection of Wages) in a single comment.

Minimum Wage Fixing Convention, 1970 (No. 131)

Article 4(2), of the Convention. Full consultation with representative organizations of employers and workers. In its previous comments, the Committee requested the Government to provide information on the mechanism and content of the consultations held with employers’ and workers’ organizations to set the minimum wage level. The Committee notes that the Government indicates in its report that consultations concerning the setting of minimum wage result from the fact that wages are fixed through collective agreements and that there are 54,000 such agreements in Brazil. The Committee also notes that the most recent national minimum wage was established in 2018 (Decree No. 9.255 of 2017), pursuant to the provisions of Law No. 13.152 of 2015 which determines the minimum wage-fixing machinery for the period 2016–19. Moreover, the Committee takes note of the creation of the National Council of Labour (Decree No. 9.028 of 2017), as a tripartite consultative body under the Ministry of Labour. The Committee requests the Government to provide information on the process which will be followed to determine the minimum wage-fixing machinery for the next period, including on the consultations with representative organizations of employers and workers to be held in this connection in accordance with Article 4(2).

Protection of Wages Convention, 1949 (No. 95)

Article 1 of the Convention. Components of remuneration. The Committee notes that the CNPL refers to the amendment in 2001 of section 458 of the Consolidation of Labour Laws (CLT) to the effect that certain components of workers’ remuneration would be considered to be of a non-wage nature. In this regard, the Committee notes in particular that, according to sections 457 and 458 of the CLT, the following benefits that may be provided by the employer to the worker are of a non-wage nature: bonuses paid by the employer in relation to good performance (section 457(2) and (4)), food tickets (section 457(2)), medical care, life and accident insurance and private retirement fund (section 458(2)). In this respect, the Committee recalls that, in accordance with Article 1, all the components of workers’ remuneration, irrespective of how they are denominated or calculated, are protected by the Convention (2003 General Survey, Protection of wages, paragraph 47). Accordingly, the Committee requests the Government to indicate how the components of the remuneration which are considered to be of a non wage nature, according to sections 457 and 458 of the CLT, benefit from the protection of the Convention, for example with regard to their regular payment (Article 12).

Articles 8 and 10. Deductions from wages. Protection against attachments. In its previous comments, the Committee requested the Government to clarify the limits applicable to deductions from wages. The Committee notes the Government’s indication in its report that: (i) while the CLT does not establish an overall limit to authorized deductions, section 82 of the CLT, which provides that, where part of the minimum wage is paid in kind, at least 30 per cent of the minimum wage must be paid in cash, can be interpreted to limit deductions to 70 per cent of workers’ wages; and (ii) section 833 of the Code of Civil Procedure (CPC) establishes the general principle of non-attachment of wages, except for the payment of alimony (within the limit of 50 per cent of the net wage) or with respect to workers who earn at least 50 times the minimum wage on a monthly basis.

Article 12. Regular payment of wages. Further to its previous comments on wage arrears in the port sector in the State of Rio Grande Do Sul, the Committee notes that this issue has been addressed through judicial proceedings.

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Articles 3 and 4 of the Convention. Machinery for fixing and adjusting minimum wages. The Committee notes the comments made by the International Organisation of Employers (IOE) and the National Confederation of Industry (CNI), received on 4 July 2013 and forwarded to the Government on 9 September 2013. The IOE and the CNI list the effects and major difficulties of determining the minimum wage in the private sector, particularly the removal of the criterion of productivity by Act No. 12.328 of 25 February 2011 setting out the criteria for determining the minimum wage in 2011–15; the generation of strong pressure on the balance of the social security system, which has been in deficit, thereby intensifying the debate on the share of contributions to be paid by enterprises; the impact on public finances in small towns, as the minimum wage is the basic wage in thousands of towns; and the impact on industrial costs, with the rise in manufacturing costs essentially being due to labour costs. The IOE and the CNI add that over 40,000 collective agreements have been concluded containing clauses on the readjustment of wages for nearly all workers in the private sector. However, they say, by fixing the thresholds for economic categories in the private sector, which are determined by a political act of the governors and approved by the legislative assembly but without the participation of the social partners, the Government is indirectly obstructing collective bargaining by creating inequalities. The Committee also notes the additional comments of the IOE of 17 July 2013, in which the IOE affirms that there is a lack of participation by employers’ organizations in determining the criteria to be considered for the adjustment of the minimum wage. The IOE adds that the minimum wage has an important impact on micro- and small enterprises, which represented in 2011, 98.5 per cent of enterprises and 45.8 per cent of employment.

In its reply to the comments of the IOE and the CNI, the Government indicates that issues related to the minimum wage and collective bargaining are addressed on a tripartite basis in the framework of several bodies, such as the Labour Relations Council. The Government also specifies that representatives of employers’ organizations have participated in many tripartite forums in which the minimum wage was discussed, and that the gradual adjustment of the minimum wage promotes the creation of decent jobs. The Committee wishes to recall that one of the essential obligations of the Convention is that the minimum wage fixing machinery must be set up and operated in consultation with organizations of employers and workers who must participate on an equal footing. The Committee accordingly asks the Government to provide further information on the mechanism and content of the consultations held with employers’ and workers’ organizations to set the wages thresholds for the economic categories in the private sector to which the IOE and the CNI refer.

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Articles 3 and 4 of the Convention. Criteria for determining minimum wage levels. Periodic adjustment of the minimum wage. Further to its previous comment, the Committee notes the Government’s indications regarding the gap between the level of the national minimum wage (currently set at 545 reals (BRL) per month, or approximately US$295) and the minimum amount necessary to cover the basic living needs of workers and their families with respect to housing, food, education, health, leisure, clothing, hygiene, transportation and social security, as required under article 7 of the Federal Constitution. This latter amount, as of May 2011, was estimated at BRL2,300, which represents 420 per cent of the 2011 monthly minimum wage. The Committee notes that the same point is raised in the comments of the Single Confederation of Workers (CUT) which were received on 31 August 2011 and transmitted to the Government on 6 October 2011. According to the CUT, the current minimum wage rate should be more than four times higher to fully meet the constitutional requirements. The CUT also alleges that 80 per cent of workers are paid below the minimum subsistence amount of BRL2,300. The Committee requests the Government to transmit any comments it may wish to make in response to the observations of CUT.

Moreover, the Committee notes the Government’s indication that a new mechanism has been adopted for the review and adjustment of the minimum wage until 2023 taking into account the evolution of the national consumer price index. The Committee requests the Government to provide full particulars, including copies of any relevant legal texts, on the new mechanism and the consultations with employers’ and workers’ organizations prior to its adoption and implementation. In addition, the Committee notes that the Government’s report does not provide new information following up on the work of the Quadripartite Commission on minimum wage review to which reference was made in its previous report. The Committee takes the opportunity to recall that one of the essential obligations of the Convention is that the minimum wage fixing machinery must be set up and operated in consultation with organizations of employers and workers who must participate on equal footing. The Committee accordingly requests the Government to specify how the equitable representation of employers’ and workers’ organizations in the minimum wage fixing process is ensured both in law and in practice.

Article 5 and Part V of the report form. Practical application. The Committee requests the Government to provide up to date information on the practical application of the Convention including, for instance, inspection results showing the number of visits carried out, the violations of the minimum wage legislation reported and the penalties imposed, statistics on the evolution of the minimum wage as compared to economic indicators such as the inflation rate, and copies of official reports or studies addressing issues of minimum wage policy.

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Articles 3 and 4, paragraph 1, of the Convention. Periodic adjustment of the minimum wage. The Committee notes that the Government has recently decided to raise the minimum monthly wage by 8.6 per cent from 350 reals (approximately US$167) to 380 reals (approximately US$182). However, according to the Government’s indications, even after the latest adjustments, the minimum wage is about half of its real level at the time it was first introduced in 1984. Moreover, even though the purchasing power of the minimum wage has been on the rise for the last ten years, an estimated 58 per cent of the minimum wage is still needed to buy a basket of basic necessity goods (cesta básica). Recalling that the fundamental objective of a minimum wage system is to provide workers and their families with a decent standard of living, the Committee requests the Government to keep it informed of any new measures or initiatives aiming at progressively raising the wage floor so as to match the workers’ real needs. In this connection, the Committee understands that some consideration is currently given to the automatic indexation of the minimum wage to the inflation rate. It accordingly asks the Government to provide additional explanations in this respect.

Article 4, paragraph 2. Consultation and participation of workers’ and employers’ organizations. The Committee notes with interest the establishment in April 2005 of the Quadripartite Commission on the review of the minimum wage. According to the Government’s report, the task of the Quadripartite Commission, which began its work in August 2005, is to formulate a medium- and long-term policy on the minimum wage. The Commission and its four technical subcommittees are composed of representatives of the federal Government, the state governments, workers and employers. The Committee requests the Government to provide a copy of the legal instrument setting up the Quadripartite Commission and also to specify how it is ensured in law and practice the equal representation of workers’ and employers’ organizations concerned.

Moreover, the Committee notes that the work of the Quadripartite Commission and its subcommittees has been suspended since March 2006 due to the difficulty in reaching a common federal government proposal on minimum wage policy. The Committee recalls the Government’s primary responsibility for ensuring the unobstructed functioning of this consultative body, and hopes that all necessary steps will be taken to permit the Quadripartite Commission to resume its activities very shortly. The Committee asks the Government to keep it informed of any developments in this regard.

Article 5 and Part V of the report form. The Committee notes the detailed statistics provided by the Government, especially those on the evolution of the minimum wage compared to the GDP, and the number of workers who are remunerated at, under and above the minimum wage rate. It would be grateful if the Government would continue to provide up to date information on the practical application of the Convention including, for instance, reports of the labour inspection services showing the number of inspection visits carried out, the violations of the minimum wage legislation reported and the penalties imposed, copies of official documents on the formulation of a minimum wage policy such as surveys conducted by the technical subcommittees of the Quadripartite Commission, etc.

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The Committee refers to the observations made by the Association of Labour Inspectors of the Gaúcha region (AGITRA) and the Association of Labour Inspectors of the Paraná region (AAFT/PR) concerning the alleged lack of meaningful consultations with the social partners in reviewing and adjusting the national minimum wage. These observations were communicated to the Government more than two years ago but no reply has so far been received. The Committee notes that recently there have been some positive developments, such as the establishment in April 2005 of the Quadripartite Commission on the review of the minimum wage bringing together representatives of the federal Government, state governments and the social partners. Moreover, the Committee understands that a new policy for the indexation of the national minimum wage to the inflation rate has been announced and that this policy would be included in a bill to be voted on by the National Congress. The Committee recalls that the minimum wage plays a significant role of social protection and notes in this respect that according to the Brazilian Institute of Geography and Statistics (IBGE), 30.5 per cent of the workforce, or 26.5 million people, earn the minimum rate or less. It therefore hopes that the Government will take appropriate action to institutionalize the process of quadripartite consultations for the periodic adjustment of the national minimum wage. The Committee further asks the Government to keep it informed of all future developments in this regard and to transmit its observations in reply to the points raised by AGITRA and AAFT/PR.

The Committee is raising other points in a request addressed directly to the Government.

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The Committee notes the observations made by the Association of Labour Inspectors of the Gaúcha region (AGITRA) and the Association of Labour Inspectors of the Paraná region (AAFT/PR), which were received on 26 July 2004 and forwarded to the Government on 31 August 2004, on matters related to the application of the Convention.

The two workers’ organizations allege non-observance of the provisions of the Convention, especially Article 4 which requires full consultation with workers’ representative organizations at all stages of the establishment, operation and modification of the minimum wage fixing machinery. Referring extensively to the Committee’s analysis of the terms "consultation" and "participation" in the 1992 General Survey on minimum wages, the AGITRA and the AAFT/PR consider that whatever discussions are held in the country with respect to minimum wage levels cannot qualify as consultations but rather as a mere formality consisting of information sessions conducted by the Government. According to the same organizations, the non-participation of the social partners in the determination of minimum wage rates explains why Brazil’s minimum wage is one of the lowest in Latin America and represents less than 30 per cent of the country’s average wage. The AGITRA and the AAFT/PR also denounce the fact that the legal instruments establishing minimum wage rates are adopted as "provisional measures" under article 62 of the Federal Constitution which allows for little or no discussion before the National Congress.

The Committee notes that some of the matters raised by the AGITRA and the AAFT/PR are closely related to the issues it has been raising in previous comments, particularly the need for meaningful consultations within a well-defined, commonly agreed and preferably institutionalized framework which should afford the social partners a genuine opportunity to express their views and have some influence on relevant decisions. The Committee hopes that the Government will provide full particulars on the matters raised above by the two workers’ organizations as well as on the Committee’s previous comments.

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Article 5 and Part V of the report form. The Committee notes the statistical information provided by the Government regarding the evolution of the national minimum wage as compared to the evolution of the consumer price index during the period 1998-2002. The Committee also notes the figures concerning the number of prosecutions in the last four years for failure to pay the minimum wage and the amount of monetary fines prescribed for minimum wage-related offences. The Committee requests the Government to continue to provide all available information concerning the practical application of the Convention, including for instance the national minimum wage currently in force, statistical data on the number of workers remunerated at the minimum wage rate, copies of official reports or surveys addressing minimum wage questions, as well as any other particulars bearing on the functioning of the minimum wage fixing machinery.

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The Committee notes the Government’s report in reply to its previous comments.

Article 4, paragraphs 2 and 3, of the Convention. The Committee recalls its previous observation in which it requested the Government to specify the organizations of employers and workers which were consulted prior to the last adjustment of the minimum wage and also to elaborate on the outcome of these consultations. In its response to the Committee’s previous comments, the Government indicates that, for the purpose of determining minimum wage levels, consultations are held with the principal workers’ and employers’ representative organizations, namely the Brazilian Trade Union Federations (the Single Confederation of Workers (CUT), Força Sindical, the General Workers Confederation (CGT) and the Social Democratic Union (SDS)) as well as the chief employers’ confederations (the National Confederation of Industry (CNI), the National Confederation of Commerce (CNC) and the National Confederation of Agriculture (CAN)). It is still not clear from the Government’s reply, however, whether the above organizations were consulted before any decision was taken and also whether the consultations took place within a formally established institutional framework such as a permanent or an ad hoc consultative body. In an earlier report, the Government had made reference to consultations through various forums and tripartite councils but never provided detailed particulars on these meetings. The Committee wishes to emphasize once again the fundamental character of the principle of full consultation of the social partners at all stages of the minimum wage-fixing procedure. According to the letter and the spirit of the Convention, the process of consultation must precede any decision-making and must be effective, that is to say it should afford the social partners a genuine opportunity to express their views and have some influence on the decisions pertaining to the matters that are the subject of consultation. While recalling that "consultation" should be kept distinct from "co-determination" or mere "information", the Committee considers that the Government is under the obligation to create and maintain conditions permitting the full consultation and direct participation of the social partners in all circumstances, and therefore invites the Government to take appropriate action to ensure that the requirement for meaningful consultations set forth in this Article of the Convention is effectively applied, preferably in a well-defined, commonly agreed and institutionalized form.

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The Committee notes that the Government’s report replies only partially to its previous comments. It must therefore repeat its previous observation which read as follows:

In its previous comments, further to the observations made by the National Union of Labour Inspectors (SNAIT) to the effect that the Government did not comply with the obligations set out in Article 4, paragraph 2, of the Convention to consult the representative organizations of employers and workers on the adjustment of the minimum wage, the Committee requested the Government to indicate the consultations which were conducted prior to fixing of the minimum wage by the Provisional Resolutions, specifying the organizations of employers and workers which were consulted and the outcome of the consultations. The Committee also requested the Government to indicate the measures taken or contemplated to ensure prior and effective consultation of the organizations of employers and workers concerned in decisions relating to minimum wages, in accordance with Article 4, paragraph 2.

The Government reiterates the information given in its previous report to the effect that representative organizations of employers and workers are consulted and heard constantly, but that the final decision concerning the index is the responsibility of the executive authority after analysis of the impact on the public finance because of the consequences regarding unemployment benefits and allowances for needy and disabled persons. The Government also indicates that, in fixing the amount of the minimum wage it takes into account the basic needs of workers and their families. It also recalls that it consulted employers’ and workers’ representatives in various forums and tripartite committees.

The Committee requests the Government to indicate the employers’ and workers’ organizations that have been consulted in the aforementioned tripartite forums and committees.

Lastly, the Government indicates that the trade unions can negotiate a basic wage through collective bargaining or arbitration, and this basic wage constitutes a form of minimum wage payable to categories of workers represented by a trade union organization which is party to a collective agreement providing for such a basic wage. This wage is a minimum wage payable to a particular category of workers, as opposed to a general minimum wage applicable to all categories of workers.

The Committee notes this information and requests the Government to provide information in its future reports on the effectiveness of the procedures for consulting employers’ and workers’ organizations for fixing the minimum wage. The Committee hopes that the Government will provide, in accordance with Article 2, paragraph 1, of the Convention, read in conjunction with Article 5 and point V of the report form, general information on the application of the Convention in practice, in particular: (i) changes in the minimum wage in force; (ii) available statistics on the number and categories of workers covered by minimum wage regulations, particularly those covered by minimum wages fixed by collective agreement; and (iii) the results of inspections carried out (for example, violations observed, sanctions imposed, etc.).

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

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In its previous comments, further to the observations made by the National Union of Labour Inspectors (SNAIT) to the effect that the Government did not comply with the obligations set out in Article 4, paragraph 2, of the Convention to consult the representative organizations of employers and workers on the adjustment of the minimum wage, the Committee requested the Government to indicate the consultations which were conducted prior to fixing of the minimum wage by the Provisional Resolutions, specifying the organizations of employers and workers which were consulted and the outcome of the consultations. The Committee also requested the Government to indicate the measures taken or contemplated to ensure prior and effective consultation of the organizations of employers and workers concerned in decisions relating to minimum wages, in accordance with Article 4, paragraph 2.

The Government reiterates the information given in its previous report to the effect that representative organizations of employers and workers are consulted and heard constantly, but that the final decision concerning the index is the responsibility of the executive authority after analysis of the impact on the public finance because of the consequences regarding unemployment benefits and allowances for needy and disabled persons. The Government also indicates that, in fixing the amount of the minimum wage it takes into account the basic needs of workers and their families. It also recalls that it consulted employers' and workers' representatives in various forums and tripartite committees.

The Committee requests the Government to indicate the employers' and workers' organizations that have been consulted in the aforementioned tripartite forums and committees.

Lastly, the Government indicates that the trade unions can negotiate a basic wage through collective bargaining or arbitration, and this basic wage constitutes a form of minimum wage payable to categories of workers represented by a trade union organization which is party to a collective agreement providing for such a basic wage. This wage is a minimum wage payable to a particular category of workers, as opposed to a general minimum wage applicable to all categories of workers.

The Committee notes this information and requests the Government to provide information in its future reports on the effectiveness of the prcedures for consulting employers' and workers' organizations for fixing the minimum wage. The Committee hopes that the Government will provide, in accordance with Article 2, paragraph 1, of the Convention, read in conjunction with Article 5 and point V of the report form, general information on the application of the Convention in practice, in particular: (i) changes in the minimum wage in force; (ii) available statistics on the number and categories of workers covered by minimum wage regulations, particularly those covered by minimum wages fixed by collective agreement; and (iii) the results of inspections carried out (for example, violations observed, sanctions imposed, etc.).

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With reference to its previous comments, the Committee once again requests the Government to supply information, in accordance with Article 5 of the Convention and point V of the report form, on the effective application of provisions relating to minimum wages, such as extracts of reports on the activities of the labour inspection services with a view to ensuring the observance of minimum wages (number of violations reported, sanctions imposed, etc.).

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In previous comments, the Committee noted the observations made by the National Union of Labour Inspectors (SNAIT) concerning the fact that the Government does not comply with the obligation set out in Article 4, paragraph 2, of the Convention to consult the representative organizations of employers and workers on the adjustment of the minimum wage. It recalled that this provision of the Convention requires full consultation with representative organizations of employers and workers concerned or, where no such organizations exist, their representatives, in connection with the establishment, operation and modification of machinery whereby minimum wages can be fixed and adjusted. In this respect, the Committee also recalls the indications contained in paragraph 234 of its General Survey of 1992 on minimum wages, according to which, although States are free to choose the means whereby consultation is carried out, the consultation must take place prior to decisions are made and must be effective, that is to say that it must "enable employers' and workers' organizations to have a useful say" in the matters that are the subject of consultation, in this case the adjustment of minimum wages. The Committee also recalled that the obligation to consult is distinct from negotiation. It requested the Government to indicate the measures which have been taken or are envisaged to ensure prior and effective consultation of the organizations of employers and workers concerned in decisions relating to minimum wages in accordance with Article 4, paragraph 2, of the Convention.

In its report, the Government states that representative organizations of workers and employers are consulted and heard constantly, on the understanding that it is the responsibility of the executive authority to fix the index after analysis of the impact on the public exchequer because of the consequences regarding unemployment benefits and allowances for needy and disabled persons. The Government also states that in fixing the amount of the minimum wage it takes into consideration economic aspects and consults employers and workers' organizations.

The Committee notes this statement. Nevertheless, it observes that the Government's report contains no particulars regarding the procedures of this consultation and, particularly, whether the employers' and workers' organizations concerned were consulted prior to the readjustment of the minimum wage announced in Provisional Resolution No. 1572 of 29 April 1997 and No. 1572-2 of 27 June 1997. It therefore requests the Government to indicate the consultations which were conducted prior to fixing of the minimum wage by the Provisional Resolutions, specifying the organizations of employers and workers which were consulted and the outcome of the consultations. It also requests the Government to indicate the measures taken or contemplated to ensure prior and effective consultation of the organizations of employers and workers concerned in decisions relating to minimum wages in accordance with Article 4, paragraph 2.

[The Government is asked to report in detail in 1998.]

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With reference to its previous comments, the Committee once again requests the Government to provide a copy of any new laws or regulations respecting minimum wages. The Committee also requests the Government to indicate, in accordance with Article 4, paragraph 3(a), of the Convention, the manner in which provision is made for the direct participation in the operation of minimum wage fixing machinery of the organizations or representatives of employers and workers concerned.

The Committee also requests the Government to supply information, in accordance with Article 5 and point V of the report form, on the effective application of provisions relating to minimum wages, such as extracts of reports on the activities of the labour inspection services with a view to ensuring the observance of minimum wages (number of violations reported, sanctions imposed, etc.).

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The Committee notes the observations made by the National Union of Labour Inspectors (SNAIT) concerning the fact that the Government did not respect the obligation to consult the representative organizations of employers and workers on the latest adjustment of the minimum wage and that the Congress was only consulted subsequently.

According to the SNAIT, the absence of consultation of the representative organizations of employers and workers concerning the adjustment of the minimum wage was recognized by the Minister of Labour during a meeting with the Unique Workers' Central (CUT) and through the press, where he stated that "the minimum wage cannot be negotiated".

The Government states that the current minimum wage in the country was determined by Provisional Resolution No. 1415, of 29 April 1996 (Official Journal of the Union, 30 April 1996), and is currently before the Congress for approval. According to the Government, a Provisional Resolution is an instrument provided for by article 62 of the federal Constitution, which can be used by the President of the Republic in cases of emergency or necessity. It has force of law and must, immediately following publication, be submitted for approval to the National Congress. The Government explains that the adjustment of the minimum wage meets the needs of workers and their families as well as the requirements of economic development, productivity and the maintenance of a high level of employment. When fixing the rate of the minimum wage, the Government took into consideration economic issues and consulted with the representatives of employers and workers. The Government therefore considers that it has not in any way infringed the principles of the Convention. Its intention was to preserve employment while assuring a minimum income to Brazilian workers, using methods that are compatible with the Economic Stabilization Plan established in 1994.

The Committee notes the Government's statement. It recalls that Article 4, paragraph 2, requires full consultation with representative organizations of employers and workers concerned or, where no such organizations exist, their representatives, in connection with the establishment, operation and modification of machinery whereby minimum wages can be fixed and adjusted. In this respect, the Committee also recalls the indications contained in paragraph 234 of its General Survey of 1992 on minimum wages, according to which, although States are free to choose the means whereby consultation is carried out, the consultation must take place before decisions are taken and must be effective, that is to say that it must enable employers' and workers' organizations to have a useful say in matters that are the subject of consultation, in this case matters relating to the adjustment of minimum wages. The Committee also recalls that the obligation to consult is distinct from negotiation.

The Committee requests the Government to indicate the consultations that were held prior to the adjustment of the minimum wage by Provisional Resolution No. 1415, with an indication of the organizations of employers and workers which were consulted and the results of these consultations. It also requests the Government to indicate the measures which have been taken or are envisaged to ensure prior and effective consultation of the organizations of employers and workers concerned in decisions relating to minimum wages in accordance with Article 4, paragraph 2.

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The Committee notes the information supplied by the Government in its report. It notes the adoption of Act No. 8.419 of 7 May 1992 respecting the national wages policy, section 10 of which repeals Act No. 8.222 of 5 September 1991 respecting the wages policy and minimum wages. Act No. 8.419 provides for the establishment of an index for the adjustment of minimum wages (IRSM) to be calculated monthly by the Brazilian Institute of Geography and Statistics and published by the Ministry of the Economy. The index will be used to establish a wage adjustment factor on the basis of which minimum wages will be adjusted every four months.

In addition, the Committee understands that a new system for adjusting minimum wages came into effect on 1 January 1993, which not only permits the purchasing power of the minimum wage to be maintained but also compensates the future loss by anticipating inflation.

With reference to Article 4 of the Convention, under which member States which ratify the Convention shall make provision for a full consultation with representative organizations of employers and workers in connection with the establishment and operation of the machinery for fixing and adjusting minimum wages, the Committee asks the Government to indicate how such consultations are conducted. It also asks the Government to provide a copy of any new laws or regulations concerning minimum wages, including a copy of the Act which came into force on 1 January 1993.

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With reference to its previous comments, the Committee notes with interest the adoption of a new Act (Act No. 8.030/90) which provides for the automatic readjustment of minimum wages as of April 1990 following an accumulated fluctuation in the price of a "basic shopping basket" ("cesta básica") which includes the cost of food and basic services. The Committee notes that this Act was the product of intense negotiations, in contrast with the process followed for Legislative Decree No. 2.351/87, which was adopted by the legislative authority without consultations with the organisations of employers and workers.

The Committee recalls that in accordance with Article 4 of the Convention the Government is obliged to consult the representative organisations of employers and workers concerned in connection with the establishment, operation and modification of minimum wage-fixing machinery. However, as the Committee noted previously, in view of the fact that the body through which the organisations of employers and workers were consulted was no longerwactive; considering also the comments made by a number of trade union organisations in relation to this Convention and Convention No. 26, to which the Committee referred previously; and in view of the fact that Act No. 8.030/90 is based on the Bill to Enact Provisional Measures No. 145, the Committee requests the Government to inform it of the machinery that exists for the systematic consultation of the organisations concerned.

Finally, the Committee notes the information concerning the recent fluctuations in wages, which is contained in the report on the labour market situation in 1986-89, attached to the Government's report on Convention No. 122. The Committee hopes that the Government will continue to supply information on the manner in which this Convention is applied, as requested in point V of the report form.

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1. The Committee notes with interest Act No. 7789 of 3 July 1989 which establishes a new minimum wage and the periodical readjustment thereof, and repeals Legislative Decree No. 2351 of 7 August 1987 which established a minimum reference wage and the national minimum wage (piso nacional de salarios). The Committee also notes the information on the work of the Labour Inspectorate in connection with the application of this Convention.

2. The Committee recalls that in its previous comments it pointed out that, in conformity with the provisions of Article 4 of the Convention, the Government has the obligation to consult the representative organisations of employers and workers concerned in connection with the establishment, operation and modification of minimum wage-fixing machinery. In view of the fact that a new Act on minimum wages has been adopted, that, according to information provided by the Government in one of its earlier reports, the National Wage Policy Council is no longer active, and that this was the body through which occupational organisations could be consulted, and bearing in mind the comments of a number of trade union organisations concerning the present Convention and Convention No. 26 - to which the Committee has referred in previous comments - the Committee asks the Government to state whether the organisations of workers and employers concerned were consulted on the adoption of the new Act concerning minimum wages and to indicate the existing procedures for such consultations.

3. Furthermore, the Committee recalls that in its previous comments it noted that, in accordance with the general wage policy and the provisions of the new Constitution, the various occupational categories negotiate the minimum reference wages. It asked the Government to provide information on the practical effect given to the Convention, particularly with regard to the number and categories of workers whose wages are fixed through collective bargaining (Article 2(2) of the Convention). The Committee hopes that the Government will provide this information with its next report.