Observation (CEACR) - adopted 2012, published 102nd ILC session (2013)

Minimum Wage Fixing Convention, 1970 (No. 131) - Bolivia (Plurinational State of) (Ratification: 1977)

Article 1(2) and (3) of the Convention. Scope of application. The Committee recalls its previous comment in which it requested the Government for clarifications on the extension of the coverage of the national minimum wage to agricultural workers. The Committee notes, in this respect, the Government’s reference to Act No. 3274 of 9 December 2005, concerning salaried work in Brazilian nut plantations, in particular, section 8 which provides that remuneration may in no case be inferior to the national minimum wage rate. It is still unclear, however, whether rubber and forestry workers remain excluded from minimum wage coverage. The Committee therefore requests the Government to provide additional explanations in this respect.

Article 3. Criteria for determining the minimum wage level. The Committee notes the adoption of Supreme Decree No. 1213 of 1 May 2012, which raised the national minimum wage from 815 to 1,000 bolivianos (approximately US$144) per month, that is a 22.7 per cent increase compared to 2011. The Committee also notes the Government’s indication that the minimum wage is adjusted annually by reference to the inflation rate and that it currently corresponds to twice the amount representing the extreme poverty line (approximately US$1.25 per day). The Committee understands, however, that despite recent increases of the minimum wage, the erosion of the purchasing power of the minimum wage due to rising basic commodity prices does not permit low-paid workers to cover their subsistence needs in terms of essential consumer goods, housing, health, clothing, or hygiene. The Committee notes, for instance, that the UN Committee on Economic, Social and Cultural Rights expressed concern about the fact that the minimum wage continued to be insufficient to provide workers and their families with a decent standard of living (see UN Doc. E/C.12/BOL/CO/2 of 8 August 2008, paragraphs 14 and 27). The Committee accordingly requests the Government to provide more detailed information on the manner in which the subsistence needs of workers and their families are calculated, including for instance the collection of labour statistics or the compilation of data for defining the basket of basic consumer goods, and the bodies or agencies responsible for conducting the relevant surveys and studies.

Article 4(2) and (3). Full consultation with, and direct participation of, the social partners. For a number of years, the Committee has been drawing the Government’s attention to the need to ensure genuine and effective consultations with the most representative employers’ and workers’ organizations in all matters related to minimum wage fixing. The Committee notes the Government’s explanations concerning the annual readjustment of the national minimum wage rate by means of supreme decrees but observes that no progress has been made with respect to tripartite consultations which is one of the essential obligations of the Convention. The Committee accordingly urges the Government to take prompt action towards ensuring full consultation with the most representative employers’ and workers’ organizations and their direct participation in the operation of the minimum wage fixing machinery. The Committee also requests the Government to keep the Office informed of any progress made concerning the establishment of the National Council on Labour Relations to which reference was made in the Government’s previous report.

Article 5. Adequate inspection. Further to its previous comment regarding the possible amendment of section 121 of the General Labour Act so as to provide for truly dissuasive fines in case of non-compliance with the minimum wage legislation, the Committee understands that no real progress has been made. The Committee also understands that difficulties are experienced with the enforcement of the minimum wage legislation, in particular, in the Chaco region. It notes, in this regard, the recommendations of the multi-agency mission of the United Nations Permanent Forum on Indigenous Issues, following its 2009 visit regarding the need to carry out adequate and timely labour inspections within the Chaco region and ensuring that indigenous workers are not paid less than the minimum wage (see UN Doc. E/C.19/2010/6, paragraphs 35 and 40). The Committee accordingly requests the Government to indicate the measures taken or envisaged in order to: (i) ensure that the labour legislation provides for appropriate sanctions against the infringement of minimum wages; and (ii) reinforce the labour inspection services so as to effectively prevent such infringements, especially with regard to indigenous workers.