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

Minimum Wage Fixing Convention, 1970 (No. 131) - Azerbaijan (Ratification: 1993)

The Committee notes the Government’s report and wishes to draw attention to the following points.

Articles 1 and 4, paragraph 2, of the Convention. The Committee notes that under section 155(6) of the 1999 Labour Code the minimum wage is determined by presidential decree but no reference is made to the requirement for prior consultations with representative organizations of employers and workers concerned. Recalling that the Convention requires the full consultation and direct participation of the social partners at all stages of the wage-setting process, the Committee requests the Government to indicate the measures taken or envisaged to ensure that the employers’ and workers’ interests are equitably represented and duly considered while establishing or revising minimum wage levels.

Article 2, paragraph 2. The Committee notes the reference to the General Collective Agreement for 2001-02 which was signed between the Cabinet of Ministers, the Azerbaijan Trade Union Confederation and the National Confederation of Entrepreneurs’ Organizations and which provides for consecutive increases in the minimum wage so that it gradually reaches the minimum subsistence level. The Committee asks the Government to supply a copy of this agreement.

Article 3. The Committee notes the explanations of the Government concerning the economic factors, such as the inflation rate or the resources available in the state budget, which are determinant with regard to the periodic readjustment of the minimum wage rate. Noting that under section 155(2) of the Labour Code, the minimum wage is defined as a social norm which is based not only on economic but also on social conditions, the Committee requests the Government to indicate whether and how it is ensured that minimum wage increases adequately reflect the needs of workers and their families, for instance by maintaining their purchasing power in relation to a basic basket of essential consumer goods.

Article 5 and Part V of the report form. The Committee notes that according to the Government’s report the minimum wage rate was last raised in 2001 and is now set at 27,500 manat (US$5.7). It also notes the Government’s indication that this minimum wage is actually paid in the public sector and applies to less than 1 per cent of the workforce, while in the manufacturing sector the level of the minimum wage established by collective agreements is several times higher. The Committee understands that under a presidential decree issued earlier this year the minimum monthly wage was raised to 45,000 manat with a further increase to 60,000 manat to take effect as from 1 January 2004. The Committee requests the Government to continue to provide all available information concerning the practical application of the Convention, including for instance the evolution of the national minimum wage as compared to the evolution of the consumer price index in recent years, statistical data on the number of workers covered by relevant legislation, reports from inspection services concerning the number of minimum wage-related offences reported and the sanctions imposed, official surveys addressing minimum wage questions as well as any other particulars bearing on the functioning of the minimum wage fixing machinery.