Observation (CEACR) - adopted 2003, published 92nd ILC session (2004)

Minimum Wage Fixing Convention, 1970 (No. 131) - Uruguay (Ratification: 1977)

The Committee notes the Government’s report and the observations made by the Inter-Union Assembly of Workers - National Convention of Workers (PIT-CNT) in communications dated 28 May and 5 September 2003. The Committee also notes the discussion in the Conference Committee on the Application of Standards during the 91st Session of the International Labour Conference in June 2003. The Conference Committee indicated in its conclusions that the requirement of meaningful consultations with the social partners in determining minimum wage levels, due regard being taken of the basic needs of workers and their families, is the quintessence of the Convention and that no Government could be relieved of its obligations for reasons of economic policy or expediency. It also expressed concern at the absence of concrete progress in determining minimum wage levels in line with the economic and social realities of the country and also in consulting the social partners for this purpose in an institutionalized form and on a regular basis.

I.  Adjustment of minimum wage rates as a function
of criteria related to the needs of workers and
their families (Article 3 of the Convention)

The Committee refers to its previous comments in which it expressed concern that the minimum wage currently in force does not reflect the needs of workers and their families. The Committee notes the Government’s report in which it states that, while the literal wording of Article 3 of the Convention would make it possible for ratifying States to deviate from the application of the parameters set out therein, it is not the Government’s intention to stray from those criteria. The Committee also notes the comments of the PIT-CNT, according to which the minimum wage is currently equivalent to US$36 a month, while the basket of basic products for a family of three members is equivalent to US$824, which would indicate a total failure to take into consideration the needs of workers and their families in determining the minimum wage.

The Committee has emphasized repeatedly that social criteria cannot be considered in isolation, but have to be assessed in relation to the country’s level of economic and social development, which involves a delicate evaluation process. Nevertheless, without overlooking the economic situation and the specific political conditions of the country, it is essential not to overlook the real objective of the minimum wage system, which is to contribute to the eradication of poverty and ensure a decent living standard for workers and their families. The Committee requests the Government to indicate the manner in which it is ensured that the increases in the minimum wage reflect the basic needs of workers and their families, for example by guaranteeing the maintenance of their purchasing power in relation to a series of specific basic products. The Committee also requests the Government to provide statistical information on the evolution of minimum wage rates in relation to fluctuations in the inflation rate and the consumer price index over recent years.

II.  Obligation of full consultation with the social partners
for the determination of the minimum wage
(Article 4, paragraph 2)

The Committee, while once again reiterating its previous observations that the minimum wage should not be determined without prior consultations with the representative organizations of employers and workers, notes the Government’s explanations that the country is experiencing one of the worst crises in its history, which has caused the closure of enterprises, an increase in poverty and a rise in unemployment and has obliged the Government to implement food assistance plans.

The Committee also notes the Government’s additional comments that the country has a long tradition of consulting employers and workers and that it currently has at least eight tripartite consultative bodies. In this respect, the Committee notes the observations of PIT-CNT that none of the tripartite commissions referred to by the Government have the function of analyzing the determination of minimum wages.

The Committee once again recalls that the obligation to consult the social partners is intended to ensure their real and effective participation in the establishment and modification of minimum wage-fixing machinery and should not be considered a mere formality. The Committee notes that, even in countries in which the organization of employers and workers is in embryonic form or non-existent, Governments should act in such a way that the consultation and participation of the representatives of employers and workers takes place on an equal footing. The Committee requests the Government to indicate the measures that it intends to adopt to give effect to the fundamental principle of the consultation of the social partners in relation to the determination of the minimum wage and to keep it informed of any developments in this respect.

The Committee notes the copy of the Decree provided by the Government dated 27 May 2003, fixing the national minimum wage at 1,170 pesos a month as from 1 May 2003, except for domestic workers, rural workers and sheep-shearers. The Committee regrets that it is bound to note that the Government provided no information in its last report on the determination of the minimum wage applicable to agricultural workers and domestic workers, despite the lengthy comments contained in its last observation. The Committee hopes that the Government will provide precise replies on this point in its next report.

Finally, the Committee notes with interest the Government’s willingness to receive ILO technical assistance and hopes that in this manner the Government will be able to provide indications of progress in the near future in bringing its national law and practice into conformity with the provisions of the Convention.

[The Government is asked to report in detail in 2004.]