Observation (CEACR) - adopted 2006, published 96th ILC session (2007)

The Committee notes the information provided by the Government in response to the comments made by the Trade Union Confederation of Guatemala (UNSITRAGUA) in October and November 2004. The Committee regrets the delay by the Government in reacting to these observations and must request further information on certain points.

1. With regard to the current level of minimum wage rates, the Committee notes the Government’s reply to the observations made by UNSITRAGUA, in which it indicates that the cost of a household basket of essential goods (Canasta Básica Vital – CBV), according to the information of the National Institute for Statistics for the month of March 2006, was 2,725 quetzal (around US$371) for a family of five persons. As, according to the Institute, in each family an average of two members have a job, the Government considers that the current level of the minimum wage in effect represents an overall purchasing power which enables workers to meet their most essential needs. The Government adds that the minimum wage has always fulfilled its nutritional objective and is adjusted to the socio-economic situation of the country. While noting the Government’s explanations on this point, the Committee observes that the objective of a minimum wage system, as a social protection and poverty reduction measure, can only be met if the rate of the minimum wage is sufficient to cover the needs of workers and their families – and not only their nutritional needs. It also recalls the requirement of consultation with the social partners at all stages of the process of determining the minimum wage, including the collection of data and the carrying out of studies for the information of the minimum wage-fixing authorities. The Committee considers that the manifest and considerable differences which persist between the Government and the trade union movement concerning the calculation of the minimum subsistence needs of a household should be the subject of effective consultations held in good faith with a view to determining a minimum wage rate that is really adequate for the essential needs of workers. The Committee requests the Government to indicate how it intends to give effect to these observations and to keep it informed of progress with regard to the adjustment of minimum wage rates. It would also be particularly interested in receiving comparative statistical data, such as information on the average increase in minimum wage rates over the past ten years in relation to movements in economic indicators, such as inflation, over the same period.

2. With regard to the problems related to the payment of wages under the minimum rate, particularly in the agricultural sector, the Committee notes the Government’s indication that failure to apply the provisions respecting minimum wages results in liability to a financial penalty envisaged by the law and that workers can therefore denounce failure to comply with legislative provisions to the competent administrative or judicial authorities. In this respect, the Committee is bound to note that, over and above the legal framework for the prevention and penalization of infringements of the legislation on minimum wages, it is necessary for the legislation to be applied in a rigorous and effective manner. Indeed, the Committee understands that over half of workers in rural areas do not receive the wages, allowances and other supplements to which they are entitled. In these circumstances, the Committee would expect the Government to provide detailed information, including statistics, on the activities of the inspection services – particularly in the agricultural sector – demonstrating the number of inspections carried out, the nature of the infringements reported and the sanctions applied, as well as any court decisions relating to the payment of minimum wages. The Committee also recalls that it has made a similar request for practical information, supported by the relevant documents, in its observation on the application of the Labour Inspection Convention, 1947 (No. 81).

3. With regard to a possible introduction of minimum remuneration rates based on productivity, which were denounced by UNSITRAGUA in its comments, the Committee notes the Government’s explanations that such a decision can only be taken in the National Wage Commission (CNS) with the participation of the social partners and that Government Agreement No. 640-2005, which determines minimum wage rates for 2006, does not provide for the payment of wages on the basis of the productivity of workers. The Committee observes that, with a view to preventing abuse, subjective assessments of the quantity and quality of work performed should not affect the right to the payment of a minimum wage as an equitable level of remuneration in return for work duly performed during a specified period. It requests the Government to keep it informed of any development in this field.