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

Employment Policy Convention, 1964 (No. 122) - Costa Rica (Ratification: 1966)

1. The Committee notes the information included in the Government's report received in January 1998, according to which the open unemployment rate fell from 6.2 per cent (in 1995) to 5.2 per cent (in 1996) and rose again slightly to 5.7 per cent (in 1997). Between 1994 and 1996, employment in the public sector fell to 7,197, continuing the downward trend in staffing levels in that sector. The Government refers to the voluntary job reduction programme in the public sector and the restructuring programme, details of which are given for various institutions. The purpose of these programmes is to reorientate the State's role and reduce the fiscal deficit. The report also describes a reintegration programme aimed at strengthening the National Employment Exchange, improving training for former public servants and promoting the creation of micro-enterprises. The Committee notes that, according to the analysis carried out by technical specialists of the multidisciplinary team at San José in Costa Rica, the existence of a range of social development and employment programmes, together with sustained efforts in the area of education and training, have resulted in relatively low levels of unemployment, underemployment and poverty. In 1997, there were increases both in employment and in wages.

2. The Committee recalls that, in its previous observations, it referred to the report (in document GB.266/8/1 of June 1996) of the Committee set up to examine the representation made by the Latin American Central of Workers (CLAT) under article 24 of the ILO Constitution, alleging non-observance by Costa Rica of the Employment Policy Convention, 1964 (No. 122). The Governing Body invited the Government to provide, in its subsequent reports under article 22 of the Constitution, comprehensive information on the application of the Convention, and to clarify in particular:

(i) the effect on employment, either recorded or anticipated, of the macroeconomic policies implemented as part of the structural adjustment programme to reduce public spending;

(ii) the number of workers affected by the programme to reduce public employment, the measures taken to facilitate their reintegration into the private sector and the results achieved;

(iii) the manner in which the representatives of the persons affected by the measures to be taken, and in particular employers' and workers' representatives, are consulted about employment policies.

3. In this regard, the Committee notes that in May 1998, the Ministry of Labour asked the Ministry of National Planning and Economic Policy for additional information on the above-mentioned points. The Committee trusts that the Government in its next report will consider these points and that it will also include the information requested in the report form on the results of measures taken to harmonize the supply and demand of labour with structural changes, including copies or extracts of reports, surveys and inquiries and statistical data on the situation of the labour market (Part VI of the report form). The Government is asked in particular to describe the procedures that have been adopted to ensure that due consideration is given to the impact on employment of measures adopted with a view to achieving economic and social objectives and that the principal measures of employment policy are decided and kept under review within the framework of a coordinated economic and social policy (Article 2 of the Convention).

4. Article 3. The Committee notes the communication of August 1997 from the Comité Interconfederal Costarricense, which was forwarded by the Office to the Government in 1997 to allow it to formulate its own comments. The Comité Interconfederal Costarricense states that it has not participated in any manner or at any time in the formulation of the Government's employment and wages policy. In its view, the fact that employment policy is not discussed with workers' representatives constitutes a violation of Article 3 of the Convention. The Government has indicated that in general, in those public institutions where restructuring programmes were implemented, committees were set up in which staff could participate. In addition, in most of the restructuring processes, trade union leaders were consulted. Consultations took place in the private sector involving the employers' councils who were asked for their support for the training and reintegration programmes. The employers in general have been openly in agreement with the proposed changes. The Committee notes the preceding observations and recalls the importance of obtaining the full cooperation of the representatives of the interested parties in the work of formulating employment policy and of obtaining the support needed for its implementation. The Committee trusts that the Government will include in its next report information on the consultations that have taken place with representatives of employers' and workers' organizations (and with representatives of other sectors of the economically active population such as those employed in the rural sector and the informal sector) with regard to employment policy.