Observation (CEACR) - adopted 2022, published 111st ILC session (2023)

Employment Policy Convention, 1964 (No. 122) - Dominican Republic (Ratification: 2001)

The Committee notes the observations of the Autonomous Confederation of Workers’ Unions (CASC), the National Confederation of Dominican Workers (CNTD) and the National Confederation of Trade Union Unity (CNUS), received on 1 September 2021. The Committee requests the Government to send its comments in this regard.

Articles 1–3 of the Convention. Formulation and implementation of an active employment policy.Consultations. The Committee notes the Government’s indication, in reply to its previous comments, that the National Employment Plan (PNE) adopted in 2014 was not implemented because of institutional and financial restrictions. The Government adds that, even though certain projects in the PNE were implemented, no evaluations of their impact were carried out. The Committee notes the information available on the Ministry of Labour’s website concerning the process of preparing a new National Employment Plan (PLANE), with the support of “Eurosocial+”, the European Union (EU) programme for social cohesion in Latin America. The objective of the new PLANE is to promote the creation of 600,000 new decent jobs for the 2021-24 period, which is 200,000 more than in the 2014 PLANE. The PLANE project measures include: economic incentives for investment; technical and vocational training to promote the development of human talent and the employability of the population in situations of great vulnerability; the modernization of the Public Employment Service; and technical and financial support for independent workers, micro, small and medium-sized enterprises (MSMEs), and green job initiatives. The Committee also notes that the National Employment Commission, a tripartite advisory body, was reactivated in May 2021, after six years of inactivity, with a view to launching the consultation process for the development of PLANE. The resulting project is the product of a process in which numerous actors have participated, through virtual thematic forums and numerous electronic consultations, such as representatives of the social partners, various government entities, academic experts and members of civil society. On 17 February 2022, the proposal for the new PLANE was presented to representatives of the social partners and public bodies for their comments, before its final draft. With regard to labour market trends, the Government states that, according to information from the Dominican Labour Market Observatory (OMLAD), between 2018 and 2021 the employment rate fell from 59.5 per cent to 56.8 per cent (71.8 per cent for men and 42.9 per cent for women), the unemployment rate rose from 5.3 per cent to 8 per cent (4.6 per cent for men and 12.8 per cent for women). The Committee requests the Government to provide detailed, up-to-date information on the status of the preparation of the new National Employment Plan (PLANE) and to send a copy of it once it has been adopted. The Committee also requests the Government to send detailed, up-to-date information on the content and results of the consultations held with the social partners and representatives of stakeholders, in particular representatives of the workers in rural areas and in the informal economy, regarding employment policies and programmes. The Committee further requests the Government to send up-to-date statistical information,disaggregated by age, sex and region, on labour market trends, including employment, unemployment and underemployment rates.

Coordination of training policies with employment policies. In its reply to the Committee’s previous comments, the Government indicates that since 2016 there have not been any data on the impact of implemented training programmes owing to a lack of economic resources. The Government expresses the hope that after the implementation of employment recovery measures in the context of the COVID-19 pandemic, it will be possible to establish a basis to make it easier to conduct these studies. Moreover, the Government refers to the implementation of the Technical and Vocational Education and Training Support Programme (PRO ETP II), financed by the EU and the Spanish International Cooperation Agency (AECID). The general objective of the programme is to strengthen the technical and vocational education and training (EFTP) system to better respond to the demands of the education and production sectors and the training needs of the economically active population. As a specific objective, it is proposed to contribute to the strengthening of the institutional, normative and functional components of the national EFTP system. In this regard, it is planned to adopt measures aimed, inter alia, at: improving the capacities of the systems linked to the national vocational training system to ensure their participation in the preparation, implementation, monitoring and validation of the National Qualification Network; increasing the capacities of the competent institutions for improving the quality and relevance of the provision of EFTP in order to adapt it to the labour market; and linking the private sector to mechanisms for the design and implementation of EFTP policies through public-private partnerships for development. To achieve these objectives, it is planned, inter alia, to update the electronic employment exchange, and also to implement a labour information system which collates labour market indicators and statistics from various public institutions. Lastly, the Committee notes that the workers’ confederations indicate in their observations that the National Institute for Vocational and Technical Training (INFOTEP) has expanded the provision of training and has conducted a survey to identify the requirements of the main occupations in demand and establish a skills and learning strategy to improve the country’s competitiveness in the context of the digital era and the future of work. However, they point out that the training plans to promote employment are not coordinated. The Committee requests the Government to provide detailed information, including statistics disaggregated by age, sex and region, on the various training programmes implemented, including the Technical and Vocational Education and Training Support Programme (PRO ETP II), and also on their impact on securing lasting employment for men and women. With regard to the collection of data on the impact of these programmes, the Committee reminds the Government that it may avail itself of ILO technical assistance in this regard. Moreover, in the light of the observations of the workers’ confederations, the Committee requests the Government to send detailed information on how the various programmes of training for employment are coordinated and in what manner consultations with the social partners are ensured.

Specific groups vulnerable to decent work deficits. The Committee observes that, according to ILOSTAT, in 2020, the overall unemployment rate of young persons was 14.9 per cent (11.6 per cent for women and 20.7 per cent for men), whereas 33.7 per cent of all young persons were either unemployed or not studying or receiving training (44.2 per cent for women and 31.1 per cent for men). The Committee notes the information supplied by the Government on the measures adopted to promote youth employment, such as the adoption in 2019 of the Primer empleo (initial employment) programme, which provides 6,200 young persons between 18 and 29 years of age with access to employment in the form of training for employment with formal enterprises, in particular promoting the participation of women and single mothers and persons with disabilities. The Government also refers to the implementation of the Escuela taller (workshop as school) programme, which provides young persons in vulnerable situations with job training in diverse areas such as crafts, carpentry, construction and electricity. The Government states that from 2015 to the first half of 2021 a total of 571 men and 265 women participated in the programme. Furthermore, the Government refers to the discussion on 25 May 2021 in the Chamber of Deputies of the bill on initial employment, which provides young graduates with the opportunity for internships or half-time work in various institutions so that they can develop acquired knowledge. The Committee notes that the workers’ organizations claim in their observations that young persons who have finished higher education face major difficulties regarding access to the labour market because of the lack of job placement strategies for young persons. They also assert that bureaucratic obstacles and high demands regarding levels of previous experience make it difficult for young persons to secure their first job or a change of job. Moreover, they criticize the fact that many of the jobs on offer are precarious, temporary, offer low wages and do not provide opportunities for development. The Government, on the other hand, indicates that in order to promote jobs for women, adequate services with equal opportunities are provided in the programmes implemented by the Ministry of Labour and awareness-raising measures aimed at enterprises have been implemented to promote women’s employment. In this regard, the Government states that it has requested enterprises to omit age and gender requirements in job vacancy profiles. Lastly, the Committee refers to its comments on the application of the Vocational Rehabilitation and Employment (Disabled Persons) Convention, 1983 (No. 159), in which it notes the detailed information provided by the Government on the measures taken by the National Council on Disability (CONADIS) to promote employment for persons with disabilities, as well as on the implementation of Basic Act No. 5-13 on equal rights for persons with disabilities, section III of which establishes a quota of two per cent for hiring persons with disabilities in private enterprises (compared with five per cent in the public sector). The Committee requests the Government to continue providing detailed, up-to-date information on the measures taken or contemplated to promote access to formal and lasting employment for groups vulnerable to decent work deficits, in particular young persons, women and persons with disabilities. The Committee also requests the Government to send up-to-date statistical information on the impact of such measures. It further requests the Government to provide up-to-date information on the status of the adoption of the bill on initial employment and to send a copy of it once it has been adopted.

Migrant workers. In its reply to the Committee’s previous comments, the Government indicates that the labour legislation prohibits any kind of discriminatory practice in the hire of persons, whether national or foreign, in the context of an employment contract or a job application (principles IV and VII of the Labour Code). The Government states that a total of 3,931 persons, including workers, employers and public employees, have received training on various aspects of equal opportunities and non-discrimination in employment and occupation. Moreover, it reports on the establishment of the Labour Migration Committee, which is composed of representatives of various national institutions such as the Social Security Treasury (TSS), the National Institute for Migration (INM) and the Ministry of External Relations (MIREX). In this regard, the Government indicates that it is receiving advice and support from the International Organization for Migration (IOM) and the ILO. The Committee notes the adoption on 22 January 2021 of Resolution No. 119-21 normalizing the irregular migration situation of Venezuelan nationals on Dominican territory. Through this resolution, Venezuelan nationals who entered Dominican territory using a tourist card or a visa issued by the Dominican authorities and who have stayed on Dominican territory beyond the authorized period of validity, are eligible for an extension of stay and can apply for a non-resident permit in the student or temporary worker subcategories. The Committee requests the Government to send detailed, up-to-date information on the nature and impact of the measures adopted to prevent abuse in the recruitment of foreign workers in the country, including Resolution No. 119-21, and of national workers who emigrate in search of job opportunities abroad, including those adopted within the Labour Migration Committee.

Informal economy. The Committee notes that, on the basis of the “Eurosocial+” programme report of 28 September 2021 on the updating of PLANE, informality has become established in the country as a structural problem stemming from an economic model that maintains sustained growth in sectors which either do not create employment or do so in precarious forms. The Government also indicates that as a result of the pandemic, there has been an increase in informality, especially in the commerce and construction sectors. According to statistical information from OMLAD, the rate of informality in 2021 was 57.7 per cent (61.7 per cent for men and 51.5 per cent for women). In this regard, it is envisaged that PLANE will include measures for the development of passive employment measures, as well as the establishment of policies for the social protection of informal workers and the reduction of informality in the labour market. Moreover, the Government reports on the implementation of various measures aimed at combating informality in the context of the pandemic through support to MSMEs, such as the implementation of the recovery programme with DOP 4,100 earmarked for MSMEs. Lastly, the Committee notes the information provided by the Government, disaggregated by sex, age and region, on the number of formal workers who entered the labour market for the first time between 2012 and July 2021. The Committee requests the Government to continue providing detailed, up-to-date information on the nature and impact of the measures adopted to combat the high rate of informality in the country.

Micro, small and medium-sized enterprises (MSMEs). The Committee notes the information supplied by the Government on the measures taken to facilitate the establishment of MSMEs and cooperatives in the country. The Government refers, inter alia, to the implementation since 2013 of the “formalization single window” (VUF) for facilitating the establishment of MSMEs in all provinces of the country. The Committee notes with interest the Government’s indication that the functioning of the VUF has enabled the time and cost of registering enterprises to be reduced. The Government states that between 2014 and 2020 the percentage of enterprises registered through the VUF increased from 1.56 per cent to 66 per cent of all established enterprises. According to the MSME Policy Department, between 2012 and 2021 a total of 229,358 enterprises were established through in-person channels and between October 2013 and June 2021 a total of 36,695 enterprises were established through the FormalízateRD web portal. However, the Government indicates that it does not have any information on the number of jobs created by new enterprises. The Government also indicates that it is planned to amend Act No. 127-64 on cooperative associations and its implementing regulations, with the aim of modernizing the text and adapting the regulations to simplify the administrative procedures for setting up an enterprise. The Government adds that, between 2012 and 2021, a total of 479 cooperatives were created, with 133 in agriculture and two relating to commerce. As regards policies for the award of public contracts to SMEs, the Government indicates that, under sections 25 and 26 of Act No. 488-18, 15 per cent of purchases of goods and services by public institutions must go to MSMEs, and 20 per cent to those headed by women (with over 50 per cent in shareholding or social capital). Lastly, the Government indicates that the 2016 analysis of the impact of the public procurement and contracts policy on MSMEs and women revealed a positive impact on beneficiary enterprises, which experienced greater economic benefits, greater professionalization and less staff rotation, as well as an increase in the average wages of their workers. The Committee notes the observations of the workers’ organizations, which indicate that in July 2021 a tripartite agreement was reached to modify wage fixing, since the previous methodology used to fix wages did not include MSMEs, thereby generating precarity and job informality among their workers. The workers’ organizations also point out that Act No. 688-16 on entrepreneurship was adopted without prior consultation of the social partners, and they state that under that Act the enterprises covered by it are exempt from paying pension contributions for the first three years from the date of formalization. They object to the fact that this obstructs the development of the workers’ pension fund, pushing back the age at which they can access their pensions. The Committee requests the Government to continue sending detailed, up-to-date information on the measures taken or contemplated to facilitate the establishment of MSMEs and cooperatives, particularly in disadvantaged regions with the highest unemployment rates. In particular, it requests the Government to send information on the status of the amendment of Act No. 127-64 on cooperative associations and its implementing regulations. The Committee also requests the Government to send statistical information on the number and type of enterprises established. As regards the collection of statistical information on the number of jobs created by those enterprises, the Committee requests the Government to provide information on any progress made in this regard and reminds it that it may avail itself of ILO technical assistance in this regard. Lastly, the Committee requests the Government to continue providing information on the impact of policies for awarding public contracts to SMEs.