Observation (CEACR) - adopted 1989, published 76th ILC session (1989)

Employment Policy Convention, 1964 (No. 122) - Brazil (Ratification: 1969)

1. The Committee notes the Government's report for the period 1987-88. It also notes the written information communicated to the Conference and the discussion in the Conference Committee in June 1988.

2. In its last report, the Government indicates that it proposes to pursue an active employment policy, through a policy of investment and social programmes to absorb the labour force and to extend the formal sector of the labour market, through a wages policy to increase the purchasing power of employees and an industrial relations policy to promote the rights of workers. The Macro-economic Control Plan, launched in the second quarter of 1987, has the objective of achieving economic stability with specific reference to the creation of the conditions for the self-sustained growth of the gross domestic product in order to ensure the required expansion of employment. The Government Action Plan for 1987-91 considers employment to be the right of the citizens and intends to emphasise it as a social priority. Furthermore, quantitative targets have been set for employment generation for the 1987-91 period.

The Government enumerates the employment promotion programmes undertaken by the National Employment System (SINE) to benefit the most underprivileged groups of the population and the least developed regions of the country. In its report, it also refers to the various aspects of labour and industrial relations legislation which require amendment: first of all, it is necessary to regulate collective and individual dismissals.

3. In its previous comments, the Committee expressed its deep concern at the continued increase in unemployment during the 1982-83 period. The Committee now notes that the open unemployment rate in the principal urban centres, which had reached 7.1 per cent in 1984, decreased to less than 4 per cent in 1987. The measures adopted by the Government within the context of the Cruzado Plan of 1986 resulted in rapid employment generation while at the same time, for a short while, inflation was curbed. Nevertheless, according to the information supplied by the Regional Employment Programme for Latin America and the Caribbean (PREALC), the Macro-economic Control Plan, which was launched in June 1987, has been costly in terms of the deceleration of growth and employment. The objectives of the Government Action Programme, which was commenced in July 1987, have not been achieved with regard to the labour market. Employment stagnated, the minimum wage did not increase and inflation accelerated up to the annual rate of 934 per cent. The formal sector absorbed employment slowly and 25 million workers, that is 45 per cent of the economically active population, found themselves outside the formal labour market, in conditions of underemployment or in a precarious occupational situation.

4. The Committee would be grateful if the Government would continue supplying regular information on its principal policies and on the measures adopted to promote the objective of full, productive and freely chosen employment, and if it would indicate the difficulties encountered in achieving it. This information could include, in particular, indications on investment, fiscal and monetary policy, prices and wages policy and measures to promote balanced regional development (Article 1 of the Convention). The Committee would also be grateful if the Government would describe the procedures adopted to ensure that the effects on employment of its economic and social policy have received due consideration and that the principal measures of employment policy are decided on and kept under periodical review on the basis of statistics on the volume and type of unemployment and underemployment (Article 2).

5. Article 3. The Committee recalls the importance that it attaches to the consultation of representatives of the persons to be affected by employment policy measures that are to be adopted and to taking their experience and views fully into account and securing their full co-operation in formulating and implementing employment policy. It notes with interest, from the Government's report, that when evaluating the implementation of the Programme of Social Priorities (PPS), which was launched in May 1985, it was found that the projects undertaken with the effective participation of the communities concerned showed the best results at the lowest cost. The Government adds that, despite the few resources available to the Ministry of Labour, some units of the SINE, in collaboration with other institutions, are supporting micro-production units in close collaboration with associations and federations of beneficiaries. The Committee particularly appreciates the results achieved by the Government in establishing consultation procedures with representatives of those working in the informal sector and requests the Government to continue to supply examples of the consultations held regarding employment policy with those who work in the rural sector and the informal sector. Please supply detailed information on other consultations that have taken place in order to promote the objectives of the Convention with representatives of employers and workers.

6. Finally, the Committee notes with interest that the Government has the benefit of the technical assistance of the ILO within the context of a project concerning employment and wage policy. The Committee requests the Government to indicate in its next report the action taken as a result of the technical assistance received in various ILO projects concerning employment policy, in particular in the rural sector.