Observation (CEACR) - adopted 2010, published 100th ILC session (2011)

Invalidity, Old-Age and Survivors' Benefits Convention, 1967 (No. 128) - Ecuador (Ratification: 1978)

The Committee regrets to note that the report supplied by the Government in 2007 reproduced the text of its report of 2001 and is therefore not at all responsive to the Committee’s observation of 2005. It therefore expects the Government to supply a new detailed report containing reliable information on the application of all Articles of the Convention according to the report form adopted by the Governing Body, covering the developments in pension insurance for the whole period since 2001. Meanwhile, the Committee has examined the Law on Social Security of 2001, the statistics of the Ecuadorian Social Security Institute (IESS) annexed to the report and the Government’s reply to the questions raised in the Committee’s previous observation. It has also examined the recent ILO study Assessment of the social security system of Ecuador (June 2008) (Diagnóstico del sistema de seguridad social del Ecuador) (hereinafter the Assessment).

Part I (General provisions). Article 4(2) and (3) of the Convention, in conjunction with Articles 9(2)(a), 16(2)(a) and 22(2)(a). Scope of coverage. In reply to the Committee’s previous observation, the Government has supplied the statistics of the IESS for the year 2003, which contain data on the population covered (1,184,484 persons) by the Statutory General Insurance (Seguro General Obligatorio – SGO). The Committee observes however that the statistics supplied by the Government still do not permit the Committee to ascertain whether the scope of coverage required by these provisions of the Convention (25 per cent of all employees in the country) is attained in Ecuador, as they do not specify the number of employees protected in the prescribed classes in relation to the total number of employees in Ecuador. The Committee hopes that these numbers will be specified by the Government in its next report.

Part II (Invalidity benefit). Articles 7–13 and Part VI (Common provisions). Article 32. Suspension of benefits. The Committee notes that the information concerning the application of these Articles of the Convention was missing in the reports supplied by the Government in 2001 and 2007 and asks the Government to furnish it as soon as possible.

Part V (Standards to be complied with by periodical payments). Article 29. Review of benefits. According to section 204 of the Law on Social Security, the IESS has the authority to determine the periodicity and the rate of pension adjustments depending on the evolution of the Technical Reserve of the Pension Fund. The Government’s report of 2007 on the Social Security (Minimum Standards) Convention, 1952 (No. 102) indicated, for example, that in 2006 pensions were increased twice by Resolutions CD 088 of 4 January and CD 107 of 24 April 2006. The Committee would like the Government to provide the statistical information for the time period starting from 2001 on the effective adjustments of pensions in comparison with the corresponding evolution of the cost-of-living index. It would also like the Government to state its position regarding the need to establish in law a mechanism for the regular periodic adjustment of pensions highlighted in the ILO Assessment, page 100).

Part VII (Miscellaneous provisions). Article 38. Coverage of agricultural employees. Upon ratifying the Convention, Ecuador has availed itself of the temporary exclusion from its provisions of the employees in the sector comprising agricultural occupations on condition that it shall gradually increase the number of agricultural employees protected and regularly report the progress achieved in the application of the Convention to such employees. Such exclusion is permitted by the Convention in case agricultural employees were not protected by the legislation of the country in question at the time of the ratification and may be maintained until the legislation applying the provisions of the Convention in respect of the persons protected is extended to cover also agricultural employees. The Committee recalls that, after the ratification of the Convention in 1978, agricultural workers were incorporated into the social security system under a special scheme for the protection of agricultural workers by virtue of Decree No. 21 of 1986. The statistics of the IESS supplied by the Government for the year 2003 are structured by the regime of affiliation to the SGO and include, besides such categories as employees in the banking, domestic and construction sector, the category of agricultural affiliates (agrícolas), whose number amounted to 18,664 persons out of the total number of 1,184,484 persons covered by the SGO. With respect to those categories, the new Law on Social Security of 2001 establishes a special scheme only for workers in the construction sector and does not refer to any special scheme for agricultural workers. Moreover, according to sections 2a and 9a of the Law on Social Security of 2001, workers in a relation of dependency, irrespective of the nature of their occupation or place of work, are subject to the SGO, which includes an intergenerational solidarity pension scheme providing old-age, invalidity and survivors’ benefits required by the Convention. The Committee understands therefore that agricultural employees are now fully covered by the Ecuadorian legislation applying the Convention in the same manner as employees in industrial undertakings and that the initial reason for excluding agricultural employees from the application of the Convention subsists no more. It would like the Government to furnish in its next report all the appropriate explanations and statistics requested in Article 38(2) of the Convention. If agricultural employees are indeed covered, the Committee invites the Government to consider renouncing its right to avail itself of the exclusion authorized by this Article as from a stated date.

The Committee is raising other points in a request addressed directly to the Government.