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

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

Articles 1, 3 and 4 of the Convention. Minimum wage fixing machinery –Criteria for determining the minimum wage – Consultations with and participation of the social partners. The Committee notes the information provided by the Government concerning the establishment of a basic unified wage (salario básico unificado) to serve as a wage floor for all workers in general, including domestic, agricultural, small industry, craft and maquila workers. It also notes that under the Ministerial Agreement No. 249 of 23 December 2010, the basic unified wage was fixed at US$264 per month while Ministerial Agreement No. 369 of 13 January 2012, raised it to US$292 per month.

The Government indicates that the basic unified wage is determined on the basis of criteria such as inflation, productivity and equity with a view to progressively closing down the gap between the minimum wage level and the cost of the family basket of goods (canasta familiar). According to the Government’s report, the basic unified wage now covers more than 89 per cent of the cost of the basic family basket of goods, as compared to 65 per cent in 2005.

Moreover, the Committee notes the Government’s reference to Ministerial Agreements Nos 117 of 7 July 2010 and 181 of 1 October 2010, which set up 22 sectoral committees regrouping 115 occupational categories for the purpose of better analysing sectoral wage levels and fixing sectoral minimum wages. The Government also refers to Ministerial Agreement No. 255 of 24 December 2010, which set the minimum wage rates for the 22 sectoral committees as from 1 January 2011. Under section 3 of that Agreement, sectoral minimum wages may in no circumstances be lower than the basic unified wage.

While noting these recent developments in the minimum wage fixing process, the Committee observes that current minimum wage levels remain overall insufficient to cover the cost of either the basic or the vital family basket of goods (canasta familiar básica y vital). More concretely, the Committee understands that only certain minimum wage rates set by two of the 22 sectoral committees (i.e. the committees for the mine and the transport sectors) exceed the cost of the vital family basket of goods and only certain minimum wage rates in the transport sector exceed the cost of the basic family basket of goods. The Committee also notes that under the National Welfare Plan 2009–13, the Government’s objective is to diminish by 27 per cent the number of workers receiving wages inferior to the minimum vital wage by 2013. The Committee accordingly asks the Government to continue its efforts to ensure that minimum wages fixed after genuine consultations with employers’ and workers’ organizations concerned, effectively guarantee a decent standard of living for the workers and their families. In addition, the Committee requests the Government to provide additional explanations on how the basic unified wage and the sectoral minimum wage rates interact with the concept of “decent salary” referred to in sections 8–10 of the Code of Production, which was adopted in December 2010.

Article 5. Adequate inspection. The Committee understands that the enforcement of the minimum wage legislation is weak as a result of challenges faced by the inspection services and a penalty for non-compliance limited to five times the monthly minimum wage regardless of the seriousness of the offence or the number of workers affected. The Committee asks the Government to provide full particulars on any measures taken or envisaged with a view to reinforcing the labour inspection services and establishing truly dissuasive sanctions to ensure the effective application of the relevant legislation.