Observation (CEACR) - adopted 2001, published 90th ILC session (2002)

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

The Committee notes the Government’s reports in which it refers to the matters raised in the 1998 observation.

1. The Government indicates that in 1998 an economic growth rate of 6.2 per cent was achieved (the second highest in the whole of America), with the creation of 73,000 new jobs and a decrease in poverty of 19.7 per cent, according to the National Household Survey. As from the second quarter of 1999, there was a certain weakening in economic activity: in 2000, GDP growth was only 1.7 per cent. The open unemployment rate fell (to 5.2 per cent in 2000, from 6 per cent in 1999), the best for the past five years, despite the fact that industrial employment fell, particularly in export processing and activities in free zones. In 2000, poverty rose to 21.1 per cent of households, according to the income and expenditure survey cited by ECLAC.

2. With regard to the follow-up of the recommendations of the Governing Body when it adopted the report of the committee set up to examine the representation made under article 24 of the Constitution of the ILO by the Latin American Central of Workers (CLAT) (document GB.266/8/1, June 1996), the Government states that the restrictive policies implemented during the period 1985-97 resulted in the percentage of employment in the public sector falling from 19.1 per cent (in 1985) to 14.2 per cent (in 1997) of the economically active population (14.1 per cent in 2000 according to data from the ILO Multidisciplinary Advisory Team for Central America). Among other measures, a Training and Rehabilitation Programme for Retrenched Workers was intended to train workers displaced from the public to the private sector. In this respect, the Confederation of Workers "Rerum Novarum", in observations transmitted to the Government in September 2000, refers to new policies for a reduction in the numbers employed in the public sector which have resulted in dismissals. In this connection, the Committee would be grateful if the Government would continue to address in its reports the impact on employment of the structural reforms which have been undertaken in the public sector and requests that it provide information on the labour market measures and programmes which have been adopted to match the supply and demand of labour so as to ensure that the categories of workers affected by structural changes remain in the labour market (Article 1 of the Convention).

3. In the report received in March 1999, the Government refers to the National Plan to Combat Poverty (PNCP), which is intended principally for poor children and young persons, poor women and poor adults or persons with disabilities. Furthermore, the adoption of Act No. 7983 respecting workers’ protection, of 16 February 2000, is intended, among other measures, to make pensions universal for all elderly persons in a situation of poverty and who are not covered by other pension schemes. The basic pension for persons in a situation of extreme poverty must not be lower than 50 per cent of the minimum old-age pension provided under the Invalidity, Old-Age and Survivors’ Scheme of the Costa Rican Social Security Fund. The Committee requests that the Government provide an evaluation in its next report of the employment impact of the PNCP and of the progress achieved in establishing social security safety nets, as well as on any other active employment policy measure intended to combat poverty.

4. The Committee notes that, by means of Decree No. 27603-MTSS-MEIC, dated 4 September 1998, an integrated system has been established to support micro and small enterprises (SIAMYPE), based on the consideration that micro and small enterprises are a sector with great development potential, capable of increasing job creation through the promotion of entrepreneurship. The Committee notes that the Institute of Women has the function, in the Higher Council to Support Micro and Small Enterprises (CONSUMYPE), of ensuring the inclusion of a gender perspective in the policies of the SIAMYPE and the promotion of women in the sector. The Committee trusts that the Government will provide information in its next report on the employment creation achieved by the programmes implemented by SIAMYPE, with reference, if it considers it useful, to the provisions of the Job Creation in Small and Medium-Sized Enterprises Recommendation, 1998 (No. 189).

5. Article 3. The Committee notes that, as a result of the process of dialogue on freedom of association and wage policy, by means of Directive No. 013-P, dated 7 November 1998, the President of the Republic requested the Minister of Labour and Social Security, among other measures, to pursue a policy to promote the creation of new and better sources of employment. In this respect, the Workers’ Confederation "Rerum Novarum" indicates that its organizations were not consulted concerning employment policies. The Committee refers to its previous comments and once again recalls the importance of securing the full cooperation of the representatives of the persons affected in formulating employment policy and enlisting support for its implementation. The Committee once again requests the Government to provide information in future reports on the consultations actually held with representatives of employers’ and workers’ organizations (and with representatives of other sectors of the economically active population, such as those working in the rural sector and the informal sector) with regard to employment policy.