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

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

1. The Committee notes the Government's reports received in June and October 1998. The Committee notes that the urban unemployment rate, which had reached 10.4 per cent, fell in 1997 to 9.2 per cent (according to official data), which appears to be high in comparison with the first half of the decade. According to the information transmitted by the ILO's Multidisciplinary Advisory Team for the Andean Countries, it is necessary to create productive employment every year to absorb the very high growth in the economically active urban population, reduce the high level of open unemployment which particularly affects women and young people from poor households and reduce the high level of informalization of the economy. Thirty-two per cent of the economically active urban population is employed in the formal private sector, while 47 per cent is engaged in informal urban activities. The Committee recalls that in its previous comments it expressed interest in the measures envisaged to resolve the problem of unemployment and underemployment, through the declaration and pursuit of an active policy of full productive employment, within the meaning of the Convention. The Committee would be grateful if the Government would provide information in its next report on the manner in which the objective of full employment has been taken into account in the context of the Government's current economic policy (Article 1 of the Convention).

2. The Committee notes that, according to the information published by the Economic Commission for Latin America and the Caribbean (ECLAC), the minimum wage, including supplementary emoluments, suffered an erosion of around 3 per cent, with wage increases failing to compensate for the rise in the level of prices. The Committee once again recalls that employment policy should be an essential element of any policy for promoting the growth and fair sharing of national incomes (see Paragraph 21 of Recommendation No. 122). The Committee requests the Government to provide data in its next report on the incomes policy so that it can assess the manner in which the remuneration of workers contributes to economic development and raising levels of living, which are among the objectives set out in Article 1.

3. The Committee recalls that in February 1990 the National Employment Institute (INEM) established the National Employment System and has been implementing the Emerging Employment and Social Development Programme. Furthermore, with the technical assistance of the ILO, the INEM provides technical support for the process of social dialogue. The Committee would be grateful if the Government would provide statistical data in its next report so that it can examine the results achieved in terms of the creation of productive employment by the programmes implemented by the Government. Please also continue providing information on the action taken as a result of the advice provided by the Office in the field of employment, as requested in Part V of the report form.

4. In its previous comments, the Committee noted a project to promote dialogue on labour issues, which had also received the technical support of the ILO. The Committee notes that the consultations have been suspended for lack of consensus and owing to the political transition. The new Government has declared its intention of reactivating the plan for social dialogue. The Committee trusts that the Government will provide information in its next report on the consultations held with representatives of organizations of employers and workers, through which their cooperation has been secured in formulating and pursuing the employment policy (Article 3). The Committee would be grateful if the Government would indicate, taking into account the importance of the rural sector and the informal sector, whether it has managed to hold consultations concerning employment policy with representatives of those sectors. Please also indicate whether formal consultation procedures have been established.

5. The Committee notes that in the tripartite agreements that have been concluded it is stated that independent employment is a possibility available to all members of society in Ecuador to become employers through the creation and development of single-person enterprises or associative enterprises that are mutually owned, by joining with other persons interested in providing capital, material goods or knowledge to set up and participate in the operation of this type of enterprise. The Committee would be grateful if the Government would state whether special programmes have been implemented to facilitate the creation of sustainable employment through micro-enterprises. In this regard, the Government may find it useful to consult the provisions of the Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998 (No. 189).