Minimum Wage Fixing Convention, 1970 (No. 131) - New Caledonia

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New Caledonia

The Committee notes the information provided by the Government, which answers the points raised in its previous direct request and has no further matters to raise in this regard.

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Articles 1 and 4 of the Convention. Coverage of the minimum wage. Adjustment of the minimum wage. Further to its previous comments on section R. 255-1 of the Labour Code, which provides that workers under 16 years of age may receive remuneration below the guaranteed minimum wage (SMG), the Committee notes that section 63 of the Territorial Interoccupational Agreement provides that wherever young workers under 18 years of age regularly perform work normally undertaken by adults under equal conditions of performance, productivity and quality, they are paid according to the wage scale established for adult employees performing the same work. The Committee also notes the information provided by the Government in its report on the mechanism for reassessing the level of the SMG and making the corresponding adjustments.

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Article 1(1) of the Convention. Coverage of the minimum wage. With reference to its previous comment, the Committee notes the Government’s reply that no measure is envisaged for a possible re-examination of reductions in the minimum wage for young workers who continue to earn, under the terms of section R.255-1 of the Labour Code, 25 per cent of the guaranteed minimum hourly wage (SMG) or of the minimum hourly wage fixed by the applicable collective agreement for young persons who have reached the age of 14 years, and 35 per cent of the SMG or of the minimum hourly wage fixed by the applicable collective agreement for young persons of 15 and 16 years of age.

The Committee once again draws the Government’s attention to the fact that the quantity and quality of the work performed should be the criteria used to determine the wage that is paid and that particular attention should be accorded to the provision to young workers of equitable remuneration taking into account the principle of equal remuneration for work of equal value. The Committee therefore requests the Government to provide information on any further developments in this respect and clarifications on the minimum wage applicable to workers of at least 16 years of age, but under 18 years.

Article 3. Amount of the minimum wage. In reply to its previous comment, the Committee notes the Government’s indication that the adjustment of the minimum wage during the period from 1 January 2005 to 1 July 2007 complies with the objective of promoting an increase in the purchasing power of employees on the lowest remuneration and is due to the particularly high inflation rate. The Committee also notes that, for the same reasons, by Act No. 2010-2 of 15 January 2010, the Government temporarily set aside the rule of fixing the minimum wage under section Lp. 142-1 of the Labour Code and proceeded to the adjustment of the SMG by means of orders, raising it progressively to 150,000 CFP francs (around €1,260). The Committee requests the Government to keep the Office informed of any further developments concerning the adjustment of the SMG and the guaranteed minimum agricultural wage (SMAG) by laws or regulations or collective agreements.

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Article 1, paragraph 1, of the Convention. Coverage of the minimum wage. The Committee notes that, in reply to its previous comments concerning the minimum hourly wage of young employees, the amount of which is between 25 per cent (for young persons of 14 years of age or above) and 35 per cent (for young persons between 15 and 16 years of age) of the guaranteed minimum hourly wage (SMG) or the minimum hourly wage determined by the applicable collective agreement, the Government indicates that there have been no changes in the legislation in this respect. The Committee wishes to emphasize once again the importance of complying with the principle of equal remuneration for work of equal value, set out in the Preamble to the Constitution of the ILO. The Minimum Age Recommendation, 1973 (No. 146), calls for special attention to be given to the provision to young workers of fair remuneration, bearing in mind the principle of “equal pay for equal work” (Paragraph 13(1)(a)). As the Committee emphasized in its General Survey of 1992 on minimum wages (paragraphs 175 and 176), the Convention does not preclude the fixing of different minimum wage rates for specific groups, for example on account of the age of the workers concerned. However, the reasons that prompted the adoption of lower minimum wage rates for these groups of workers should be regularly re-examined in the light of the principle of equal remuneration for work of equal value. In this respect, the Committee draws the Government’s attention to section R.141-1 of the French Labour Code, applicable in Metropolitan France and in the overseas departments, which provides for a lower minimum wage for workers under 18 years of age, while abolishing this reduction for young workers who have completed at least six months of vocational practice in the relevant branch. This provision is based on a temporary assumption of lower productivity by workers under 18 years of age in relation to adults although, after six months of activity, the work performed by the young worker is presumed to be of equal value to that of an adult. Such a provision therefore reconciles the objectives of the Government in relation to employment policy with compliance with the principle of equal remuneration for work or equal value. The Committee requests the Government to re-examine, in consultation with the representative organizations of employers and workers, the reasons that prompted the adoption of a lower minimum wage rate for young workers and, where appropriate, to examine the possibility of adopting provisions similar to those set out in section R.141-1 of the Labour Code. The Committee also requests the Government to provide information on the minimum wage applicable to workers of at least 16 years of age, but under 18 years.

Article 3. Amount of the minimum wage. The Committee notes that under the terms of section 25-1 of Order No. 85-1181 of 13 November 1985, as amended by territorial Act No. 2005-1 of 11 January 2005, the application of the rules envisaging the indexation of the minimum wage (SMG) in relation to fluctuations in the official cost of living index in New Caledonia is set aside for the period between 1 January 2005 and 1 July 2007. It further notes that during this period it is envisaged that the Government of New Caledonia will increase the minimum wage by means of orders issued following consultations with the Labour Advisory Commission with a view to fixing the amount at a higher level than that resulting from the application of the normal rules. The Committee notes that the SMG rose from 110,000 CFP francs (around 925 euros) on 1 January 2005, to 115,000 CFP francs (around 967 euros) on 1 January 2006 and that it has been 120,000 CFP francs (around 1,010 euros) since 1 January 2007. The Committee requests the Government to provide information on the reasons for the adoption of specific rules for the readjustment of the minimum wage during that period, and especially to indicate whether this was due to a particularly high rate of inflation. The Government is also requested to communicate the views which were expressed on this subject by the social partners in the Labour Advisory Commission.

Part V of the report form. The Committee notes the wage scales provided by the Government for a large number of sectors. It would be grateful if the Government would continue providing material enabling the Committee to have a general appreciation of the application of the Convention in practice and, in particular, information on the percentage of workers who are paid the minimum wage, as well as extracts from the reports of the labour inspection services indicating the number of infringements reported of the minimum wage legislation and the penalties imposed in this respect.

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The Committee notes the information contained in the Government’s report and the attached documentation. It notes in particular the adoption of Act No. 2000-006 of 15 January 2001 concerning the guaranteed minimum wage and the guaranteed minimum agricultural wage. The new legislation provides for the automatic indexation of the guaranteed minimum wage (SMG) to the evolution of the official cost of living index whereas the guaranteed minimum agricultural wage (SMAG) is fixed, as from 1 January 2003, at 85 per cent of the SMG rate. The Committee also notes Orders No. 2003-1465/GNC of 28 May 2003 and No. 2003-1755/GNC of 3 July 2003 which last fixed the hourly SMAG and SMG rates at 508.99 XPF and 611.90 XPF, respectively.

Article 2, paragraph 1, of the Convention. The Committee recalls its previous comments regarding the minimum hourly rate for young workers which may be from 25 to 35 per cent less than the statutory minimum hourly rate or the minimum hourly rate fixed by the relevant collective agreement. Noting that the Act of 2001 on the guaranteed minimum wage and the guaranteed minimum agricultural wage does not introduce any modifications to section 4 of the Decision No. 266/CP of 17 April 1998 which provides for lower minimum wage rates for young workers, the Committee understands that the law remains unchanged in this respect. The Committee is therefore bound to reiterate its position on this subject and to refer to paragraphs 169-181 of its 1992 General Survey on minimum wages where it indicated that, even though the minimum wage instruments contain no provisions providing for the fixing of different minimum wage rates on the basis of such criteria as sex, age or disability, the general principles laid down in other instruments have to be observed in order to prevent any discrimination on grounds, inter alia, of age, and particularly the principles contained in the Preamble to the Constitution of the ILO, which specifically refers to the application of the principle of "equal remuneration for work of equal value". With regard to age, paragraph 171 of the above General Survey specifies that the quantity and the quality of work carried out should be the decisive factor in determining the wage paid. The Committee considers that, even though the Convention does not forbid the determination of lower minimum wage rates for young workers, the measures in this respect should be taken in good faith and should incorporate the principle of equal remuneration for work of equal value, while the reasons that may have prompted the adoption of lower minimum wage rates for groups of workers on account of their age should be regularly re-examined in the light of this principle. The Committee therefore requests the Government to provide information in future reports on any developments relating to the issue of the differentiated minimum wage rates based on age and hopes that the Government will consider appropriate measures to ensure the full application of the principle of "equal remuneration for work of equal value".

Article 5 and Part V of the report form. The Committee notes the detailed information provided by the Government regarding the wage scales applicable to different branches of economic activity and occupational categories. The Committee would appreciate if the Government could continue providing up-to-date and detailed information regarding the application of the Convention in practice, including for instance, statistics on the number of workers covered by relevant legislation, the evolution of the SMG and SMAG rates, copies of any collective agreements fixing or revising minimum wage rates, extracts from labour inspection reports indicating the number of violations of minimum wage provisions and the penalties imposed, as well as any other particulars bearing on the functioning of the minimum wage fixing machinery.

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The Committee notes with regret 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:

1. The Committee notes that in two sectors of activity in which the minimum wage applies, a collective labour agreement, fixing occupational classifications with corresponding wage rates, has recently been signed.

2. Moreover, the Committee notes that Decision No. 266/CP of 17 April 1998, appended to the report submitted by the Government within the framework of the application of the Minimum Age (Industry) Convention, 1919 (No. 5) includes several provisions of a social nature. Section 4 of the text provides that "under reserve of more favourable contractual provisions, young workers receive a remuneration whose hourly rate is calculated according to age and is at least equal to: 25 per cent less of the statutory minimum hourly rate or the minimum hourly rate fixed by the collective agreement which is applied in the enterprise for the workers of the occupational category which corresponds to the position occupied, in respect of young persons who have reached 14 years of age" [and to] "35 per cent less of the statutory minimum hourly rate or the minimum hourly rate fixed by the collective agreement which is applied in the enterprise for the workers of the occupational category which corresponds to the position occupied, in respect of young persons who are aged between 15 and 16 years". The Committee notes that the above provisions introduce, in accordance with the age of the worker concerned, the possibility to earn a statutory minimum hourly rate or a minimum hourly rate which is 25 or 35 per cent less than the statutory minimum hourly rate or the minimum hourly rate fixed by the relevant collective agreement. In this respect, the Committee wishes to recall paragraph 171 of the General Survey of minimum wages of 1992 in which member States are requested to ensure that special attention is given to the provision of fair remuneration to young people, bearing in mind the principle of "equal pay for work of equal value", and on the basis of objective criteria such as quality and quantity of work carried out. The Committee would be grateful if the Government would indicate the measures taken or envisaged to review the question of the principle of differentiation of minimum wage rates in respect of age, in light of the principle of equal pay for work of equal value.

3. Finally, the Committee requests the Government to continue to provide, in accordance with Article 2, paragraph 1, of the Convention, read in conjunction with Article 5 and Part V of the report form, general information in respect of the practical application of the Convention in New Caledonia, in particular: (i) the development of minimum wage rates in force; (ii) relevant statistical data available in respect of the numbers and categories of workers who are covered by minimum wage rates; as well as (iii) the results of the inspections carried out (for example, the violations observed, the sanctions imposed, etc.).

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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:

1. The Committee notes that in two sectors of activity in which the minimum wage applies, a collective labour agreement, fixing occupational classifications with corresponding wage rates, has recently been signed.

2. Moreover, the Committee notes that Decision No. 266/CP of 17 April 1998, appended to the report submitted by the Government within the framework of the application of the Minimum Age (Industry) Convention, 1919 (No. 5) includes several provisions of a social nature. Section 4 of the text provides that "under reserve of more favourable contractual provisions, young workers receive a remuneration whose hourly rate is calculated according to age and is at least equal to: 25 per cent less of the statutory minimum hourly rate or the minimum hourly rate fixed by the collective agreement which is applied in the enterprise for the workers of the occupational category which corresponds to the position occupied, in respect of young persons who have reached 14 years of age" [and to] "35 per cent less of the statutory minimum hourly rate or the minimum hourly rate fixed by the collective agreement which is applied in the enterprise for the workers of the occupational category which corresponds to the position occupied, in respect of young persons who are aged between 15 and 16 years". The Committee notes that the above provisions introduce, in accordance with the age of the worker concerned, the possibility to earn a statutory minimum hourly rate or a minimum hourly rate which is 25 or 35 per cent less than the statutory minimum hourly rate or the minimum hourly rate fixed by the relevant collective agreement. In this respect, the Committee wishes to recall paragraph 171 of the General Survey of minimum wages of 1992 in which member States are requested to ensure that special attention is given to the provision of fair remuneration to young people, bearing in mind the principle of "equal pay for work of equal value", and on the basis of objective criteria such as quality and quantity of work carried out. The Committee would be grateful if the Government would indicate the measures taken or envisaged to review the question of the principle of differentiation of minimum wage rates in respect of age, in light of the principle of equal pay for work of equal value.

3. Finally, the Committee requests the Government to continue to provide, in accordance with Article 2, paragraph 1, of the Convention, read in conjunction with Article 5 and Part V of the report form, general information in respect of the practical application of the Convention in New Caledonia, in particular: (i) the development of minimum wage rates in force; (ii) relevant statistical data available in respect of the numbers and categories of workers who are covered by minimum wage rates; as well as (iii) the results of the inspections carried out (for example, the violations observed, the sanctions imposed, etc.).

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1. The Committee notes the information contained in the Government's report. It notes, in particular, that in two sectors of activity in which the minimum wage applies, a collective labour agreement, fixing occupational classifications with corresponding wage rates, has recently been signed.

2. Moreover, the Committee notes that Decision No. 266/CP of 17 April 1998, appended to the report submitted by the Government within the framework of the application of the Minimum Age (Industry) Convention, 1919 (No. 5) includes several provisions of a social nature. Section 4 of the text provides that "under reserve of more favourable contractual provisions, young workers receive a remuneration whose hourly rate is calculated according to age and is at least equal to: 25 per cent less of the statutory minimum hourly rate or the minimum hourly rate fixed by the collective agreement which is applied in the enterprise for the workers of the occupational category which corresponds to the position occupied, in respect of young persons who have reached 14 years of age" (and to) "35 per cent less of the statutory minimum hourly rate or the minimum hourly rate fixed by the collective agreement which is applied in the enterprise for the workers of the occupational category which corresponds to the position occupied, in respect of young persons who are aged between 15 and 16 years". The Committee notes that the above provisions introduce, in accordance with the age of the worker concerned, the possibility to earn a statutory minimum hourly rate or a minimum hourly rate which is 25 or 35 per cent less than the statutory minimum hourly rate or the minimum hourly rate fixed by the relevant collective agreement. In this respect, the Committee wishes to recall paragraph 171 of the General Survey of minimum wages of 1992 in which member States are requested to ensure that special attention is given to the provision of fair remuneration to young people, bearing in mind the principle of "equal pay for work of equal value", and on the basis of objective criteria such as quality and quantity of work carried out. The Committee would be grateful if the Government would indicate the measures taken or envisaged to review the question of the principle of differentiation of minimum wage rates in respect of age, in light of the principle of equal pay for work of equal value.

3. Finally, the Committee requests the Government to continue to provide, in accordance with Article 2, paragraph 1, of the Convention, read in conjunction with Article 5 and section V of the report form, general information in respect of the practical application of the Convention in New Caledonia, in particular: (i) the development of minimum wage rates in force; (ii) relevant statistical data available in respect of the numbers and categories of workers who are covered by minimum wage rates; as well as (iii) the results of the inspections carried out (for example, the violations observed, the sanctions imposed, etc.).

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The Committee notes with interest the Government's first report. The Committee requests the Government to supply information on the following points.

Article 1 of the Convention. The Committee requests the Government to indicate the decisions that have been taken or are envisaged concerning the fixing of minimum wages for apprentices under the terms of section 6 of Ordinance No. 85-1181 of 13 November 1985 and of section 1 of Decision No. 284 of 24 February 1988 respecting wages, and for the disabled under the terms of section 2 of the above Decision.

Article 5 and point V of the report form. The Committee requests the Government to supply information on the approximate number of employees to whom minimum wages apply and the number of workers for whom the wages are fixed by collective bargaining and to supply extracts from the reports of the inspection services responsible for supervision of the application of minimum wages.