Observation (CEACR) - adopted 2017, published 107th ILC session (2018)

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

The Committee notes the joint observations of the Confederation of Private Employers of Bolivia (CEPB) and the International Organisation of Employers (IOE).

Articles 3 and 4(2) of the Convention. Elements for the determination of the level of minimum wages and full consultation with the social partners. The Committee notes that, in reply to its previous comments, the Government indicates in its report that: (i) the national minimum wage was increased for 2017 by Supreme Decree No. 3161 of 1 May 2017; (ii) the socio-economic factors taken into consideration in determining the national minimum wage include inflation, productivity, gross domestic product (GDP), GDP per capita, the consumer price index, economic growth, unemployment rates, market fluctuations and the cost of living; (iii) in contrast with the Bolivarian Central of Workers, which explicitly asked to participate in decision-making in relation to the determination of the minimum wage, the CEPB did not officially ask to be part of the decision-making before raising the matter with the ILO; (iv) the Government held a meeting with representatives of the CEPB, during which they called for the immediate application of measures to address the effects of the increase in the minimum wage; and (v) round-table meetings were established to assess the appropriate follow-up action to those requests. On the other hand, the Committee notes the indication by the CEPB and the IOE in their observations that: (i) there are no quantitive methods for the determination of the national minimum wage and the Government does not consult employers’ organizations for the development of a system of adjustment based on measurable and foreseeable criteria; (ii) the increase in the national minimum wage for 2017 was arbitrary, as it exceeded the annual inflation rate and disregarded variables such as economic development, productivity levels, the promotion of higher rates of decent employment of a better quality, the sustainability of enterprises and the need to attract investment; and (iii) once again in 2017, employers’ organizations were not included in consultations on the determination of the minimum wage. Recalling once again: (i) that the Convention requires the full consultation of the representative organizations of employers and workers concerned for the establishment, operation and modification of machinery for the fixing and adjustment from time to time of minimum wages (Article 4(2)); and (ii) the active participation of these organizations is essential to allow optimal consideration of all the relevant factors in the national context (see General Survey on minimum wage systems, 2014, paragraph 285), the Committee urges the Government to take measures without delay, in consultation with the social partners, to ensure their full and effective participation in the fixing and adjustment of the minimum wage.

[The Government is asked to reply in full to the present comments in 2019.]