Observation (CEACR) - adopted 1996, published 85th ILC session (1997)

Protection of Wages Convention, 1949 (No. 95) - Argentina (Ratification: 1956)

The Committee notes the information supplied by the Government in reply to the comments made by several organizations of workers, as well as the statement made by the Government representative at the Conference Committee in June 1996 and the discussion which took place thereafter.

Benefits to improve the nutrition of workers and their families

The Committee previously noted Decrees Nos. 1477/89 and 1478/89 respecting benefits to improve the nutrition of the worker and his family, as well as Decree No. 333/93 enumerating the benefits that do not have the character of remuneration. It pointed out that these "benefits", however they are termed (bonuses, supplementary benefits, etc.), constituted components of remuneration in the sense of Article 1 of the Convention, and requested the Government to ensure that these benefits should be subject to the measures set out in Articles 4, 5, 6, 7, 8, 9, 10, 11, 12, 14, 15 and 16 of the Convention.

The Committee notes that Decree No. 1477/89 was repealed by virtue of Decree No. 773/96 of 15 July 1996, which refers in the preambular part to the comments by the ILO supervisory bodies. It requests the Government to ensure that, since the benefits under Decree No. 1477/89 no longer exist, so long as any allowances or benefits granted instead of them fall within the scope of the Convention, such new allowances or benefits are protected in accordance with the provisions of the Convention.

Settlement of the debts of the State

The Committee also noted in the previous observation, Decree No. 1639/93 of 4 August 1993, which was intended to speed up the procedures for the settlement of debts of the State up to 1 April 1991 which were consolidated under the terms of Act No. 23982 and recognized by the courts. It notes the explanation by the Government at the Conference Committee that the provisions of the above Decree covered the wage arrears owed to workers in the public service, and that Decree No. 483/95 sought further to simplify the procedure of liquidating the above debt. The Committee requests the Government to continue to supply information on the progress made in this matter as regards the settlement of the wage arrears owed to workers in the public service.

Deferred payment of wages

In its previous observations, the Committee noted the comments made by the Confederation of Educational Workers (CTERA) and the Union of Educational Workers of Rio Negro, concerning the deferred payment of wages which are due. The CTERA mentioned in particular Decree of the Province of Entre Rios No. 5863/94 concerning deferred payment according to a plan prepared by the Secretariat of Finance taking into account the available financial resources.

The Government states that many provinces in Argentina were currently experiencing a serious financial crisis which affected their ability to fulfil their obligations. It explained that the Provincial Decree No. 5863/94 was meant to give priority to the payment of public servants in relation with other debts of the provincial government, and that this Decree imposed a deadline for effective payment of public sector salaries at the 15th day of the month following the one in which payment became due. The Government added that in any case it has been superseded by Decree No. 411 of 29 February 1996, under which the due date for payment of wages in the public sector was to be no later than the 10th of the month.

The Committee takes due note of the above information and requests the Government to continue to supply information on the situation in the provinces referred to, and in particular on the application in practice of the above Decree, and any measures taken to ensure the regular payment of wages in accordance with Article 12(1) of the Convention.

Payment in local government bonds

The Committee further noted the observations from the World Federation of Trade Unions, which refers to widespread protests of state employees in Cordoba over the non-payment of wages and the decision of the provincial government of Cordoba to pay their wages in local government bonds.

In response, the Government also referred to the profound financial crisis from the beginning of 1995 in the region. In Cordoba, provincial Act No. 8.472 was adopted in July 1995 to declare economic and financial emergency in the public sector of the province, which resulted in a delay in payment of sums due to employees. Among various measures taken in the circumstances, it was made possible to pay wages up to $400 in cash and the rest in CECOR (Certificates of Cancelation of Obligations of the Province of Cordoba), which are accepted for its nominal value in all the shops in the Province and also usable to pay debts to the provincial state (such as tax). According to the Government, the CECOR are bonds for a term of 24 months with 12 per cent of annual interest. It also adds that, since the average cash salary is $398 ($588 including social contributions and pension funds), the payment of wages in the form of CECOR was limited to higher level staff who receive the bonds for the part in excess of $400, and that 50,000 employees out of 63,000 thus receive their full salary in cash.

The Committee notes the above, and in particular the Government's explanation of the emergency nature and the limited use of the bonds. It recalls however that the payment of wages in local bonds is a measure in violation of Article 3 (payment of wages in legal tender). It requests the Government to continue to report on the development of the matter also in the light of Article 12(1) (regular payment of wages).

Maritime sector

In reply to the previous comments made by the Union of United Maritime Workers (SOMU), including reference to deferred payment and non-payment of wages in the maritime sector, the Government mentions various measures taken: the claims of the SOMU and the Centre of Masters of River Boats had been dealt with by the Directorate of Individual Labour Relations, which ordered the enterprises concerned to pay immediately the wage arrears due; the National Directorate of Labour Inspection had also intervened to record and penalize violations; the tripartite consultation committee to promote the application of international labour standards, which include SOMU representatives, examined the observations of the Committee of Experts on Convention No.95 among others.

The Committee notes the above indications. It also notes that the SOMU communicated since its last session observations on the application of Convention No. 81 on labour inspection and that the attached documents include copies of several claims made against the ship owner about non-payment or delayed payment of wages. The Committee therefore requests the Government to continue to provide detailed information on measures taken to ensure the practical application of the Convention (in particular Article 12) in the maritime sector, and on any difficulties encountered, including, for instance, extracts from official inspection reports and information on any infringements observed and sanctions applied with regard to the payment of wages.

The Joint Technical Commission of Salto Grande

Since its previous session, the Committee has further received observations from the Coordinating Officers of the Workers of Salto Grande. This organization points out that the Joint Technical Commission of Salto Grande, an international organ created by an agreement between Argentina and Uruguay for utilization and exploitation of River Uruguay, unilaterally reduced the wages of its employees by 10 per cent. The Committee notes the Government's response that the Joint Technical Commission of Salto Grande is an inter-state public organization, which as such is not a party to the Convention, and which, by virtue of section 4 of its Headquarters Agreement, approved by Act No. 21.756, enjoys immunity from judicial or administrative procedures of Argentina. The Committee notes that the Government communicated the workers' comments to the Technical Commission. In this circumstance, the Committee has no further comments towards the Government of Argentina.

Application in practice

The Committee hopes that the Government will provide information on the application of the Convention in practice and measures taken to ensure it, in accordance with Article 16 of the Convention, including information on any difficulties encountered.

[The Government is asked to report in detail in 1997.]