Observation (CEACR) - adopted 1995, published 83rd ILC session (1996)

Employment Policy Convention, 1964 (No. 122) - Ecuador (Ratification: 1972)

1. The Committee notes the Government's report for the period ending June 1994. With reference to its request made in the observation of 1994 on the procedures which have been adopted to guarantee that the measures which are taken to promote economic development and other economic and social objectives contribute to the attainment of the employment objectives set out in development programmes, the Government states its conviction that the success obtained in reducing inflation (from 60 per cent in 1992 it has dropped to 26 per cent in 1994) is a major achievement to improve the purchasing power of the population. The Government also states that the recovery in monetary reserves, the reduction in the budget deficit (which dropped to 0.4 per cent of the GDP in 1993) and, especially, the agreement with external creditors for renegotiation of the external debt, are contributing to the increase of productive foreign investment, which will reactivate the employment market in the country. The Committee notes the results achieved in re-establishing the growth of the GDP and reducing inflation but notes that unemployment is around 13 per cent while the underemployment level is about 50 per cent. On this matter, the Committee trusts that in its next report the Government will supply information on the results of the measures planned to solve the problem of unemployment and underemployment. In this respect, the Government should supplement its next report with replies to the questions concerning overall and sectoral development policies, labour market, educational and training policies set out in the report form approved by the Governing Body.

2. With reference to the comments it has been making for several years, the Committee again notes that the Government recognizes the crucial importance of the views of the social partners on employment policy. The Government refers to the Action Plan 1993-96 in which it expresses its intention to discuss these matters with the sectors concerned, suggesting the implementation, for example, of activities strengthening wide participation and forming a labour consultation plan. This plan would be based on a tripartite agreement between employers, workers and the public sector, would have the economic support of UNDP and the technical support of the ILO. The Committee notes that this project was to begin in 1995 with the aim of negotiating tripartite agreements on policies for employment, wages and productivity to be carried out in the country. The Government adds that it is seeking to institutionalize machinery for dialogue and participation. The Committee trusts that it will be possible to carry out these initiatives suggested by the Government, which appear to comply with the purpose of the consultations required under Article 3 of the Convention. The Committee trusts that the Government will be able to supply indications on progress in this matter.

3. The Committee notes the observations of October 1994 sent in by the Ecuadorian Central of Class Organizations (CEDOC) regarding application of the Convention. CEDOC considers that the Government's policy of encouraging state workers to resign and abolishing posts within the framework of a state reduction plan is contrary to application of the Convention. Between 1993 and 1994 20,000 state workers were made redundant. Furthermore, CEDOC states that the Government does not consult workers' organizations - at least CEDOC - on the measures to be adopted on employment policy. The Government for its part indicates in its report (which states a copy has been sent to CEDOC) that programmes for retraining public employees who have left their jobs are being carried out while strong support is being given to micro-enterprise management as a real employment alternative for this group of workers. The Committee recalls that in its direct request of 1994 it included a question regarding the impact on the social costs of structural adjustment of the compensation plan formulated following the programme to reduce public expenditure and the privatization policy. In this context, the Committee notes Decree No. 2243 of 8 November 1994 which establishes a national training programme for integration into productive activities of public employees who participated in voluntary resignation programmes. It also notes the support provided to micro-enterprises through 225 million dollars received from the World Bank, Inter-American Development Bank and the Andean Development Corporation which allow favourable credits to be granted in the sector. The Committee requests the Government in its next report to specify the results obtained from these measures which seem designed to align labour supply and demand as a result of the structural changes made in particular areas such as the public sector. The Committee trusts that the representatives of the persons affected by the employment reduction measures will be consulted, within the meaning of the Convention, and will be involved in the consultation referred to by the Government in its report.

4. In a direct request, the Committee requests the Government to include in its next report information on some aspects of the application of the Convention such as the effects of liberalization of trade on employment, the incomes policy, the action of the Social Front in formulation of the employment policy, compensatory measures adopted in the framework of employment programmes, technical cooperation received from the Office, job creation through part-time contracts and free zones.