Observation (CEACR) - adopted 2016, published 106th ILC session (2017)

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

The Committee notes the observations of the International Organisation of Employers (IOE) and of the Confederation of Private Employers of Bolivia (CEPB), received on 31 August 2015 and 30 August 2016, on the application of the Convention. The Committee notes that these observations reiterate the IOE’s observations of 2013.

Article 1(2) and (3) of the Convention. Scope of application. In its previous comments, the Committee requested the Government to clarify whether workers in the wood and rubber industries were excluded from the coverage of the minimum wage. The Committee notes the Government’s indication in its report that there is a single minimum wage, fixed by Supreme Decree, which is therefore of compulsory application to all workers and employers in the country.

Article 3(b). Determination of the level of minimum wages. Economic factors. The Committee notes that the IOE and the CEPB allege that when determining the annual increases in the national minimum wage, only the annual inflation rate is taken into account and other variables, such as economic development, levels of productivity, the promotion of greater and better rates of decent employment, enterprise sustainability and the need to attract investment, are overlooked. In this respect, the Committee notes the Government’s indication that in fixing minimum wages, the socio-economic situation of the country is evaluated, including factors such as economic growth, unemployment rates, market fluctuations and the cost of living. Emphasizing the importance of determining the level of minimum wages, so far as possible and appropriate, taking into consideration the needs of workers and their families, taking into account the general level of wages in the country, the cost of living, social security benefits, and the relative living standards of other social groups, as well as economic factors, including the requirements of economic development, levels of productivity and the desirability of attaining and maintaining a high level of employment, the Committee requests the Government to take measures to enforce this provision of the Convention.

Article 4(2) and (3). Full consultation with and direct participation of the social partners. In its previous comments, the Committee urged the Government to take prompt action to ensure full consultation with the most representative employers’ and workers’ organizations and their direct participation in the operation of the minimum wage fixing machinery.

The Committee notes with concern that the IOE and the CEPB once again allege that between 2006 and 2016 the Government systematically failed to include employers’ organizations in the consultations on minimum wage fixing, allowing only the participation of the Bolivian Central of Workers (COB), a representative workers’ organization. The Committee notes the Government’s reply to these observations, indicating that, prior to issuing the Supreme Decree fixing the amount of the national minimum wage, the Government conducts a negotiation with the COB to agree on the increase in the national minimum wage. The Committee recalls that, under Article 4(2) of the Convention, for the establishment, operation and modification of the machinery for fixing and adjusting from time to time minimum wages, provisions shall be made for full consultation with representative employers’ and workers’ organizations. The Committee firmly urges the Government to adopt all the necessary measures to ensure the application of this provision of the Convention in particular in full consultation with employers’ organizations.

[The Government is asked to send a detailed report in 2017.]