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

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) - Venezuela (Bolivarian Republic of) (Ratification: 1944)

Article 3(2) of the Convention. Minimum wage fixing machinery and consultations with employers’ and workers’ organizations. The Committee notes the comments of the Federation of Chambers and Associations of Commerce and Production of Venezuela (FEDECAMARAS) of 14 September 2011 transmitted to the Government on 27 September 2011. It also notes the additional comments of FEDECAMARAS, supported by the International Organisation of Employers (IOE), which were received on 31 August 2012 and forwarded to the Government on 24 September 2012. The Committee further notes the comments of the Independent Trade Union Alliance (ASI), which were received on 29 August 2011 and 14 August 2012 and transmitted to the Government on 22 September 2011 and 29 August 2012, respectively. It also notes the Government’s replies of 12 November 2012 to the comments of FEDECAMARAS and ASI. Both organizations basically reiterate the allegations reflected in previous communications concerning the absence of meaningful social dialogue in the country and the annual readjustment of the minimum wage by the Government in a unilateral manner.

More concretely, FEDECAMARAS indicates that the minimum wage increase for 2012 was approved through Presidential Decree No. 8920 of 24 April 2012 without consulting the representative employers’ organizations or the National Tripartite Commission, which contravenes sections 167–169 of the Basic Labour Act in force at that time. FEDECAMARAS adds that the National Tripartite Commission has not been convened for the last ten years. It considers that the method of consultation used by the Ministry of Labour and Social Security, that is inviting comments within a short time limit of 15 days, does not constitute genuine social dialogue and violates the Convention. FEDECAMARAS also indicates that the committee established for drafting the new Organic Labour Act (LOTTT) (Official Gazette of 7 May 2012) did not adequately represent the employers’ organizations. For its part, ASI denounces the Government’s clear tendency to set labour policies, including wage policy, without considering the views of employers’ and workers’ representatives, and indicates that the minimum wage legislation does not define the criteria for the determination of minimum wage levels nor does it set any limits to the Government’s discretionary powers in this regard. ASI also alleges that the current minimum wage covers only 43.9 per cent of the basic food basket (canasta alimentaria normativa). According to statistics provided by ASI, from 1999 to 2010, inflation rose by 747 per cent while in the last 12 months prices have increased by 24.6 per cent. The diminishing purchasing power of the minimum wage affects a large number of people as it is estimated that 21.1 per cent of all workers are paid at the minimum wage rate.

In its report, the Government refers to article 91 of the Constitution which provides for the annual readjustment of the minimum wage for workers in the public and private sectors taking into account the cost of the basic food basket, and indicates that the Constituent Assembly of 1999 drafted this article considering the views of workers’ representatives who denounced the lack of effectiveness and representativeness of the National Tripartite Commission. The Government indicates that the new LOTTT has been adopted following social dialogue with employers’ and workers’ representatives. The Committee notes that this Act no longer makes reference to the National Tripartite Commission as the consultative body for fixing minimum wages. It also notes that under section 129 of the new LOTTT, the Government fixes by decree the minimum wage on a yearly basis and for this purpose it invites different social organizations and socio-economic institutions to make known their views. The Government’s report specifies that, in practice, every year in January, as many as six trade union confederations and 32 trade union federations as well as five important employers’ organizations are consulted, while the Central Bank and the Ministry of Finance are requested to prepare economic reports. The views of workers’ and employers’ representatives are collected through the web page of the Ministry of Labour, while a committee designated by the President is responsible for preparing a summary of the opinions expressed and the economic reports submitted, prior to the promulgation of the decree fixing the minimum wage by the President. Moreover, the Government indicates that, as of August 2012, the minimum wage of 2,047 bolivar (approximately US$476) plus the food ticket exceeded the value of the basic food basket of 1,835 bolivar (approximately US$427). The Government further indicates that, according to the labour force surveys, there are on the average two workers per household, and therefore the income per household is higher than the minimum wage. The Government finally points out that the minimum wage was raised in 2012 by 32.3 per cent, while the inflation rate was 18 per cent.

While noting the Government’s explanations, the Committee wishes to recall once again the fundamental importance it attaches to real and good faith consultations with the social partners for the effective operation of the minimum wage fixing process. As the Committee has pointed out on numerous occasions, “consultation” has a different connotation from mere “information” and from “co-determination”. In order to be meaningful, consultations must give employers’ and workers’ representatives ample opportunity to express their views, and these views must be carefully considered, even if decision-making power ultimately lies with the Government. Noting that the new LOTTT of 2012 introduces a major change in the nature and form of the minimum wage fixing machinery by formally abolishing the National Tripartite Commission, heretofore responsible for making concerted recommendations on the adjustment of the minimum wage, the Committee requests the Government to provide more detailed information on the exact content and views expressed during the consultations prior to that legislative change.