Observation (CEACR) - adopted 1995, published 82nd ILC session (1995)

Labour Clauses (Public Contracts) Convention, 1949 (No. 94) - Brazil (Ratification: 1965)

Further to its previous observations, the Committee notes the information supplied by the Government in its report, including the information on the temporary contract of exceptional public interest. It notes in particular the Government's reference to section 44, paragraph 3, of Act No. 8666 of 21 June 1993, which sets out standards on public administration tenders and contracts. Under this provision, a proposal of contract can be accepted only if the overall or partial sums it contains are compatible with the prices of inputs and market wages. The Committee also notes the attached text of Decree No. 1054 of 7 February 1994, which regulates the readjustment of prices in contracts with the federal Government which, in particular in section 4, requires the proposal to present prices consistent with those prevailing in the market.

The Committee would point out that the aim of Article 2, paragraphs 1 and 2, of the Convention is to ensure that the workers concerned enjoy wages and other labour conditions not less favourable than those normally observed for the similar kind of work in the district.

The question therefore relates not only to the wages but also to other conditions of work such as hours of work and holidays. The Convention requires, for this purpose, the insertion of appropriate labour clauses in public contracts.

In this connection, the Committee notes with interest the Government's indication that the Secretariat for the Federal Administration (SAF/PR) is currently in the process of producing Administrative Orders and model contracts, where the Committee's concern is taken into account. It would draw the Government's attention to Article 2, paragraph 3, of the Convention, under which the competent authority should determine the terms of the labour clauses to be included in public contracts in the manner considered most appropriate to the national conditions, after consultation with the employers' and workers' organizations concerned.

The Committee requests the Government to provide information on progress made as regards these Administrative Orders and model contracts, as well as information on the application of the Convention in practice, including for instance, extracts from official reports, showing the manner in which the above-mentioned section 44, paragraph 3, of Act No. 8666 of 1993 is applied in concrete cases, in accordance with point V of the report form.