Observation (CEACR) - adopted 1998, published 87th ILC session (1999)

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

1. The Committee notes the Government's report for the period ending June 1998, and the attached documents on the operation and evaluation of the programme for the generation of employment and incomes (PROGER), the Fund for the Protection of Workers and other measures adopted by the Government relating to the labour market. The Government reports new job losses in the formal sector (335,646 jobs in 1997). The Government states that, despite the reduction in the level of employment, there was an increase in the real incomes of workers and a decrease in social conflict. The labour market in Brazil is undergoing major transformation, with movement in the labour force from the industrial sector towards the services sector, and from the formal to informal sectors. The integration of the Brazilian economy in international markets with resulting effects on economic stability is giving rise to far-reaching changes in the labour market. In this context, the Ministry of Labour is adopting measures to promote employment and protect the unemployed by developing new employment opportunities. In view of the importance of the structural reforms undertaken in recent years, and the consequences that financial crises can have on the labour market, the Committee would once again be grateful if the Government would provide information in its next report on the manner in which the measures adopted in the principal areas of economic policy are kept under review with regard to their impact on employment, in accordance with Articles 1 and 2 of the Convention. The Committee trusts that the Government will include in its next report full information on the manner in which the measures taken in particular in such fields as fiscal, monetary and exchange rate policy, investment policy, industrial policy, trade policy and prices, incomes and wages policies, contribute to the attainment in practice of the employment objectives of the Convention (see the report form for Article 1).

2. According to the data forwarded by the Office's multidisciplinary advisory team, the informal sector grew from 52 per cent of the total economy in 1990 to 59.3 per cent in 1996. The number of workers without workbooks (sem carteria assinada), and therefore without appropriate legal protection, also increased. The Committee would be grateful if the Government would indicate the measures which are being adopted to increase employment opportunities and improve conditions of work in the informal sector and facilitate its progressive integration into the national economy. The Government may consider it appropriate to refer in its next report to the relevant provisions of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169), and the Job Creation in Small and Medium-sized Enterprises Recommendation, 1998 (No. 189), which may provide guidance for its action. In this respect, it would be useful to be provided with detailed information on the situation, level and trends of employment, unemployment and underemployment, not only in the principal industrial regions, but also in the north, north-east and the rest of the country.

3. The Committee would be grateful if the Government would include information in its next report on action taken as a result of the assistance received from the Office with a view to promoting full, productive and freely chosen employment and strengthening the institutions responsible for intervening in the labour market and for coordinating vocational training activities with prospective employment opportunities (Part V of the report form).

4. The Committee takes due note of the new information transmitted by the Government on the activities of the Advisory Board of the Assistance Fund for Workers (CODEFAT) and the employment commissions established at the state level. The Committee recalls once again that the consultations required by Article 3 of the Convention should cover all aspects of economic and social policy which have an impact on employment. In view of the characteristics of the economically active population in Brazil, the consultations required by this provision of the Convention should also involve representatives of persons who work in the rural sector and the informal sector. The Committee once again requests the Government to give effect to this important provision of the Convention, both with regard to the formal sector and the informal sector of the labour market.