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

Venezuela (Bolivarian Republic of)

Minimum Wage-Fixing Machinery Convention, 1928 (No. 26) (Ratification: 1944)
Protection of Wages Convention, 1949 (No. 95) (Ratification: 1982)

In order to provide a comprehensive view of the issues relating to the application of the ratified Conventions on wages, the Committee considers it appropriate to examine Conventions Nos 26 (minimum wage) and 95 (protection of wages) together.

The Committee notes the observations concerning Convention No. 26 made by the Federation of Chambers and Associations of Commerce and Production of Venezuela (FEDECAMARAS), received on 11 February 2022. The Committee also notes that the Bolivarian Socialist Confederation of Men and Women Workers in Urban and Rural Areas and Fishing of Venezuela (CBST-CCP) sent observations concerning Convention No. 26 that were received on 24 April 2022. The Committee also notes the following observations communicated with the Government’s report, formulated by: (i) FEDECAMARAS, on Convention No. 26; (ii) CBST-CCP, on Convention no. 26; and (iii) jointly, from the Confederation of Workers of Venezuela (CTV) the Federation of University Teachers’ Associations of Venezuela (FAPUV) and the Independent Trade Union Alliance Confederation of Workers (CTASI), on Conventions Nos 26 and 95. The Committee also notes the observations formulated by the National Union of State and Public Service Workers (UNETE), on Convention No. 26, received on 5 September 2022.

Minimum wage

Follow-up to the recommendations of the Commission of Inquiry (complaint made under article 26 of the Constitution of the ILO)

Article 3 of Convention No. 26. Participation of the social partners in minimum wage fixing. With regard to its previous comment, the Committee notes the discussions at the 344th, 345th and 346th Sessions (March, June and November 2022) of the Governing Body on the progress report concerning the operation of the social dialogue forum in giving effect to the recommendations of the Commission of Inquiry, as well as the corresponding decisions adopted. In particular, the Committee notes that: (i) the inaugural session of the social dialogue forum (the forum) was held in a virtual format on 7 March 2022, chaired by the Minister of Popular Power for the Social Process of Labour, with the participation of the Director-General of the ILO and of the following employers’ and workers’ organizations: FEDECAMARAS; CBST-CCP; the Venezuelan Federation of Craft, Micro, Small and Medium-Sized Business Associations (FEDEINDUSTRIA); CTASI; CTV; UNETE; the General Confederation of Labour (CGT); and the Confederation of Autonomous Trade Unions (CODESA). The inaugural session adopted the terms of reference for the forum, which included addressing all pending questions concerning the application of Conventions Nos 26, 87 and 144; (ii) the first in-person session of the forum was held in Caracas from 25 to 28 April 2022, with ILO technical assistance. It produced a plan of action including a timetable of activities related to compliance with the cited Conventions; and (iii) a follow-up session of the forum was held in Caracas from 26 to 29 September 2022, with ILO technical assistance; it assessed the activities undertaken as part of the implementation of the plan of action adopted in April and agreed on updating the plan of action. The Committee notes that the Governing Body will again examine the progress made by the Government in ensuring compliance with the recommendations of the Commission of Inquiry at its 347th Session (March 2023).

Further to its previous comments on this matter, the Committee notes the Government’s indication in its report that: (i) on 20 December 2021, formal written consultations were undertaken, that included relevant statistical data for analysis, as a basis for opinion and response, with FEDECAMARAS, FEDEINDUSTRIA, CBST, CTASI, CTV, UNETE, CGT, and CODESA; (ii) on 3 March 2022, the President of the Republic publicly announced the proposal for an increase in wages equivalent to half a Petro (cryptocurrency), and this was made effective by Decree No. 4653, published in Official Gazette No. 6691, Special Edition of 15 March 2022; and (iii) on 4 March consultations were held with the abovementioned social partners regarding the impact of the President’s announcement. The Government also indicates that, in line with undertakings made at the April and September 2022 meetings of the forum, the following activities related to compliance with the Convention were carried out: (i) in the week of 13 to 19 July, a round of dialogue meetings were held with the employers’ and workers’ organizations concerned regarding compliance with the Conventions, including Convention No. 26; (ii) on 7 and 12 September 2022, meetings were held with the workers’ organizations (CBST-CCP; CTASI; and CTV) and employers’ organizations (FEDECAMARAS and FEDEINDUSTRIA) respectively, to exchange views on the method for fixing minimum wages, including the criteria and source of the relevant economic, social and labour reference data; (iii) on 20 October 2022, a tripartite meeting was held to discuss the constitution of a working party with regard to fixing the minimum wage; and (iv) on 25 October a workshop was held on indicators related to the minimum wage, with the support of the Minister of Popular Power for Planning. The Government also indicates that it has drawn up a timetable, included as an annex to its report, for tripartite and bipartite activities to be conducted between the second half of November 2022 and February 2023, which include: (i) the holding of a tripartite workshop on minimum wage methodology with ILO technical assistance (22 November 2022); (ii) dispatching formal invitations for consultations on minimum wage increases to the workers’ and employers’ organizations (15 December 2022); (iii) the organization of bipartite sectoral meetings to exchange views on proposals for the minimum wage (18 January 2023); and (iv) the holding of a tripartite meeting on methods of defining the minimum wage (25 January 2023). Lastly, the Government indicates that the third in-person session of the forum will be held in the week of 6 to 10 February 2023, with ILO technical assistance.

In this regard, the Committee notes that in its observations, FEDECAMARAS indicates that: (i) in November 2021, the Ministry of Popular Power for the Social Process of Labour (MPPPST) forwarded to FEDECAMARAS the rules established for the consultation process on the minimum wage (broad consultation once annually, meetings during the first quarter of each year with the social partners and relevant institutions and bodies, and a written communication accompanied by elements of the national and international context that impact on the socio-economic reality and relevant official indicators, such as the cost of the basic food basket); (ii) by a communication dated 20 December 2021, the MPPPST submitted several economic, poverty and labour force indicators to FEDECAMARAS; (iii) by a communication of 23 February 2022, the MPPPST requested FEDECAMARAS to present additional, updated information concerning the increase of the minimum wage; (iv) on 3 March 2022, without organizing the consultation and meetings foreseen for the first quarter of 2022, the President of the Republic announced publicly an increase in the minimum wage; (v) on 4 March 2022, the MPPPST sent a communication to FEDECAMARAS requesting the organization’s opinion and recommendations on the impact and implications of the measures announced; on the same day, a meeting took place between the MPPPST with the participation of FEDECAMARAS and FEDEINDUSTRIA, at which FEDECAMARAS expressed concern at the failure to comply with the proposed methodology, and in particular at the lack of real discussion and effective dialogue between the tripartite actors on this matter; and (vi) the announced wage increase became effective after publication in the Official Gazette of 15 March 2022.

For its part, the CBST-CCP indicates in its observations that the Government regularly sends, once or twice annually, written communications to the workers’ and employers’ organizations regarding the minimum wage consultations.

The Committee also notes that in their joint observations, the CTV, the FAPUV and the CTASI indicate that by official letter No. 502/2021, the MPPPST requested their opinions, expectations, and suggestions on how the wages dynamic within the country should be aligned with the Convention; the CTASI, while considering this approach inappropriate, put forward a proposal, but received no response. In this regard, the abovementioned organizations state that the steps taken are insufficient and cannot be considered as complying with the Convention, since in practice no account is taken of proposals and contributions made by the trade union organizations, and the national executive simply and unilaterally determines the increase in the national minimum wage.

The Committee also notes that FEDECAMARAS, the CTV, the FAPUV and the CTASI all concur that the meeting to discuss wage indicators, scheduled for July 2022 in the timetable annexed to the plan of action adopted in April 2022, did not take place.

Finally, the Committee notes that the UNETE indicates in its observations that the Government has not adopted a single measure requiring consultation with the employers’ and workers’ organizations on fixing the minimum wage.

Regarding the March 2022 wage increase, the Committee observes that: (i) while it was preceded by communications sent several months previously requesting the social partners’ opinions on the issue, it did not comply with the methodology established previously by the Government, consisting of structured meetings intended to result in full compliance with the recommendations of the Commission of Inquiry; and (ii) FEDECAMARAS, the CTV, the FAPUV, the CTASI and also the UNETE all agree that their proposals and contributions are not truly taken into account in final decision taking. Regarding the plan of action for Convention No. 26 adopted in April 2022, the Committee notes that it did not follow the programmed timeframe, since only two meetings were held on indicators, and those were out of sync with the schedule that had been fixed, prior to the September forum meeting. Finally, the Committee observes that the plan of action adopted in September 2022 includes: (1) setting up a series of technical round tables to devise the methods of fixing the minimum wage, with ILO technical assistance; (2) implementing a timetable drawn up by the Government to that end, to be completed by February 2023; (3) dispatching of formal invitations to consult on increasing the minimum wage; (4) the holding of meetings to discuss proposals for the minimum wage; and (5) the holding of a tripartite meeting to devise methods for fixing the minimum wage. In light of the above, the Committee notes with regret the MPPPST’s failure to comply with the proposed methodology for the consultation process on fixing the increase of the minimum wage that was decreed in March 2022. The Committee firmly hopes that, in the framework of opportunities opened up by the process begun with the establishment and follow-up of the social dialogue forum, all measures provided in the plan of action updated in September 2022 will be implemented, including the timetable of activities presented by the Government. It also hopes that these measures will yield tangible progress in the development and application of methods of fixing the minimum wage, as required by the Convention and in following the recommendations of the Commission of Inquiry. In particular, the Committee urges the Government, at the next increase of the minimum wage, to take the necessary measures to ensure that the increase is preceded by a thorough consultation process, conducted sufficiently in advance, within a framework of structured, informed and effective discussions, in which due account is taken of the proposals made on this matter by the employers’ and workers’ organizations.

Protection of wages

Article 4 of Convention No. 95. Payment in kind. “Socialist cestaticket” (food voucher). With regard to its previous comments, the Committee notes from the Government’s report that: (i) regarding payment of the “socialist cestaticket” benefit, roundtables have been set up with active participation of the employers’ and workers’ organizations, and these have concluded agreements that are beneficial for the workers; and (ii) as of 15 March 2022, the value of the “socialist cestaticket” was increased, without affecting the benefit provided by the Local Supply and Production Committees (CLAP) in the distribution of subsidized foodstuffs. The Committee also notes that the CTV, FAPUV and CTASI state in their joint observations that payment of wages with various types of vouchers or with food is common in the public and private sector. In this regard, the Committee notes with regretthat, on the basis of the information presented by the Government, and the observations of the abovementioned workers’ organizations, it cannot be concluded that progress has been made in resolving this issue. While referring back to the analysis it has made in previous years on this matter (see in particular the observation adopted in 2017), the Committee once again requests the Government to take the necessary measures without delay, through dialogue with the representative organizations of the employers and workers, to examine solutions that allow the full application of Article 4 of the Convention. The Committee requests the Government to provide information in this respect, in particular with regard to the composition and operation of the abovementioned roundtables, and the agreements reached following the debate held within them.

Articles 5 and 14. Electronic payment of wages. Information on constituent elements of wages. The Committee notes the Government’s indication, in response to its previous comment, that it is providing information and instructions to the workforce regarding the correct use of electronic means to obtain their wages. The Committee also notes that the CTV, the FAPUV and the CTASI indicate that the electronic payment of wages causes immense problems for workers, especially for those who live in localities where there are no banking services, no electricity and no transport to take them to another locality. The abovementioned workers’ organizations particularly stress that workers have serious difficulty in withdrawing sums sufficient to cover their most basic needs, and meanwhile the money that they are unable to withdraw from their accounts falls in value every day. The Committee notes with regret that no progress has been made regarding this issue. The same workers’ organizations indicate that the payrolls are managed by the “sistema patria”, which makes it impossible for the worker to obtain a receipt detailing their income and payroll deductions, a method that is tantamount to an attack on the worker’s wages, given the absence of an office to which to make claims regarding omissions or errors in the payment of wages. The Committee once more requests the Government to take effective measures in consultation with the social partners to address the issues both of the electronic payment of wages, and of providing information to workers concerning the constituent elements of their wages, in conformity with the Convention, and to provide information in this respect.

Article 12. Delayed payment of wages. The Committee notes the Government’s indication, in response to its previous comment, that the Constitutional Chamber of the Supreme Court of Justice, in ruling No. 5 of 19 January 2017, ordered the National Budget Office (ONAPRE) of the National Executive, to pay the wages owed to workers of the national legislative body, and the wage claims were subsequently settled through the Ministry of Finance.

[The Government is asked to reply in full to the present comments in 2023.]