Report in which the committee requests to be kept informed of development - Report No 298, March 1995

Case No 1612 (Venezuela (Bolivarian Republic of)) - Complaint date: 05-JUL-91 - Closed

1. 1. The Committee on Freedom of Association, set up by the Governing Body at its 117th Session (November 1951), met at the International Labour Office, Geneva, on 16, 17 and 27 March 1995 under the chairmanship of Mr. Jean-Jacques Oechslin, former Chairman of the Governing Body.
2. 2. The Committee had before it a representation for violation of Conventions Nos. 87 and 98, presented under article 24 of the ILO Constitution by the Organization of Employers (IOE) and the Venezuelan Federation of Chambers and Associations of Commerce and Production (FEDECAMARAS) (Case No. 1612).
3. 3. The Committee submits a report on this representation for the Governing Body's approval.
4. 4. The Committee examined this representation, which alleged the non-observance of Conventions Nos. 87 and 98, at its May 1993 Session (see 290th Report, paras. 1-34, approved by the Governing Body at its 256th Session (May 1993)), in which it presented interim conclusions. The International Organization of Employers (IOE) submitted additional information in a communication of 22 September 1993.
5. 5. The Government sent its observations in a communication dated 9 February 1995.
6. 6. Venezuela has ratified the Freedom of Association and Protection of the Right to Organize Convention, 1948 (No. 87), and the Right to Organize and Collective Bargaining Convention, 1949 (No. 98).

A. Previous examination of the case

1. 7. At its May 1993 meeting, when the Committee examined the allegations submitted by the International Organization of Employers (IOE) and the Venezuelan Federation of Chambers and Associations of Commerce and Production (FEDECAMARAS) criticizing certain provisions of the Organic Labour Act of Venezuela, promulgated at the end of 1990, the examination of certain allegations remained pending. On that occasion the Committee made the following recommendation (see 290th Report, para. 34):
2. As regards the allegations concerning inequitable treatment favouring various economic chambers and bodies, as well as professional colleges, to the detriment of employers' organizations (section 405), and the limitation of the possibility that two or more trade unions may exist in a single enterprise (section 473), the Committee requests the complainant organizations and the Government to clarify the problems that exist in a more detailed manner by explaining in what ways these sections restrict the rights of employers' and workers' organizations.
3. B. The complainant's further information
4. 8. In its communication of 22 September 1993 the International Organization of Employers (IOE) states in connection with section 405 of the Organic Labour Act that, unlike trade unions or employers' organizations, chambers of commerce, industry or agriculture, and other legal entities of an associative nature, are not subject to the limitations imposed by the Organic Labour Act, including:
5. - number of members (section 419). Two employers may form an association or agree or decline to take on additional partners;
6. - associations and civil partnerships have full freedom to define their functions without the relevant legislation fixing minimal functions or setting them forth in a full-scale scheme, as is the case for employers' organizations in the Organic Labour Act (section 409);
7. - associations and civil partnerships are not subject to the limitations or procedures set forth in section 425; they do not have to meet such requirements in order to be entered in the official register. If a fault is found in the documentation in the view of an official responsible for the official register, the applicants have unlimited time in which to correct it and the official registry may not refuse to register the association or civil partnership. The registration of associations and civil partnerships is not subject to the criteria of an authority with similar powers to those laid down in section 426. In the case of trade unions, the labour inspector may refuse registration whenever in his opinion they do not fulfil the requirements set forth in this section;
8. - at the stage of establishment or registration, associations and civil partnerships are not required to receive or comply with observations by any authority whatsoever; still less are they subject to "final refusal of registration" as stipulated for occupational associations by section 427;
9. - associations and civil partnerships do not have to notify any authority of changes made to their statutes or to present detailed reports on their administration; neither are they required to present complete lists of their members or to identify them by nationality, age, profession or occupation, or place of residence, as stipulated in section 430;
10. - decisions taken by associations and civil partnerships are not subject to tests of validity except those initially established by the founder members in their statutes or those which they may subsequently adopt by decision of their general assemblies. They consequently do not have to meet the requirements of section 431;
11. - by contrast with the limitations contained in the provisions of sections 433, 434 and 435 the directors or representatives of associations and civil partnerships may be elected by acclamation if the general assembly prefers, and the statutes may establish periods of longer than three years for the exercise of such functions. Although section 433 refers to workers' representatives, it would be applied to employers' organizations by analogy in the absence of a specific provision referring to them;
12. - members of associations and civil partnerships conduct their business without the restrictions imposed by section 436, and the law does not require them to ensure rights for those who have relinquished membership. Members of associations or civil partnerships may belong to as many associations or civil partnerships as they wish as long as they fulfil the requirements for admission established by the associations or partnerships themselves. It is for their members to decide what these requirements should be; they are not established by virtue of legislative action.
13. 9. The complainant organization also indicates that the internal administration of associations and civil partnerships is not governed by the restrictions and controls set forth in sections 437, 438, 439, 440, 441 and 442, namely: (1) the general assembly of partners in an association or civil partnership may by a majority of votes use its funds for purposes not provided for in its statutes; (2) the approval of expenditure budgets of associations or civil partnerships may be the sole responsibility of the board of directors; (3) the statutes of each association or partnership define these responsibilities and the procedures for controlling the finances of the institution; (4) the receipts of the association or civil partnership are deposited in a bank chosen by the board of directors or its treasurer; (5) the handling of money is a responsibility of the treasurer, the board of directors or any of the directors or of the chairman of the board; (6) it is the internal regulations of the board of directors, their statutes or the recommendations of external auditors that establish control of the payment of the association's debts and the number of signatures desirable for the issue of cheques or other securities; (7) the statutes of the association or civil partnership determine the frequency, terms and manner of reporting by the board of directors; re-election of directors is not subject to the restriction imposed by the last paragraph of section 441. The relevant statutes and rules determine whether or not a director may be re-elected and lay down the manner in which elections may be contested; (8) federations of chambers, associations or similar civil partnerships lay down the rules for the control of their funds in their own statutes, as well as the responsibilities of those who handle them; (9) the General Accounts Office of the Republic does not intervene in any way in the investigation of accounts or of the misappropriation of funds of a federation or confederation of associations. The statutes establish the appropriate responsibilities, and associates or partners have full freedom to use any machinery or procedures provided for in the civil and penal codes that they may consider necessary to reform the administration.
14. 10. The complainant organization adds that the legislation is incompatible with the free exercise of the right of association observed in the case of associations or civil partnerships. Having exercised their rights without restriction and acquired their legal personality without fulfilling the requirements imposed on an employers' organization or trade union, these institutions would be faced with the disadvantages mentioned above if they wished to carry out their programmes of action under Conventions Nos. 87 and 98. If, on the other hand, it is argued that the legislation in no way impairs or diminishes their capacity as associations or civil partnerships, then it is obvious that, in order to enjoy the powers of an employers' organization or trade union, it is more convenient for them to organize themselves as other forms of associations or civil partnerships instead of assuming the personality of an entity that will be deprived of the rights and freedoms which the State guarantees to associations or civil partnerships. This alternative discourages the formation of employers' organizations and could be prejudicial to the development of collective bargaining. The law lacks the breadth of the principles of freedom of association, and chambers of commerce, industry, agriculture or any other branch of production or services may under their statutes endow themselves with the functions characteristic of employers' organizations.
15. 11. In connection with the content of section 473 of the Act, the complainant organization states that this provision is inconsistent with Article 4 of Convention No. 98, since the Organic Labour Act grants a labour inspector discretionary powers to initiate a phase of negotiation between an employer and a trade union merely if he has knowledge of the existence of a problem of a collective nature, whether from hearsay, information, the newspapers or a publication of a trade union or employers' organization. These powers make it easy for him to intervene in the stages of organizing the planning of the conduct of the dispute, before either party has been able to develop its programme of action. For instance, a group of employers may decide to meet in order to discuss and analyse disagreements that have arisen with a given union or federation, but before they can take a stand on the matter the labour inspector may find it necessary to open a phase of negotiations, thereby nullifying the desired effect of any strategy the employers may be devising. The complainant organization adds that the labour inspector is required by law to "attempt to initiate a phase of negotiation", regardless of whether the employer or the trade union or both are at that time willing to sit down at the bargaining table; in this connection it should be borne in mind that Article 4 of Convention No. 98 refers to "voluntary negotiation". The unilateral intervention of the labour inspector in a dispute which has yet to break out is incompatible with the promotion of voluntary bargaining.
16. 12. Lastly, the IOE indicates that the paths the parties choose to take towards the bargaining table do not require supervision by the labour inspectorate, and that such powers affect the impartiality which the inspectors must observe in their relations with employers and workers, as remarked by the Committee which examined the representation submitted in respect of violation of Article 3 of Convention No. 81. Labour inspectors must neither initiate nor recommend a procedure, whether of conciliation or bargaining, since their discretionary powers may lead them to the extreme course of intervening in cases that can be effectively settled by the parties to the dispute, where their intervention would merely serve to aggravate the situation by formalizing negotiations that can successfully be conducted informally. This impairs the freedom of the parties to formulate their programmes of action and is contrary to the principles set forth in Article 3 of Convention No. 87. (See the annex for the full text of the provisions of the Act mentioned by the IOE.)
17. C. The Government's reply
18. 13. In its communication dated 9 February 1995, the Government stated that it was beginning a process of discussion and revision of the general regulations of the Organic Labour Act and that it would undertake to comply with the recommendations made by the Committee on Freedom of Association in the text of said regulations. Furthermore, the Government indicated that the Supreme Court, the highest judicial authority in Venezuela, has held that, in the case of conflict, the ILO Conventions ratified by Venezuela shall prevail over the standards contained in the Organic Labour Act. The judicial bodies will therefore undertake to nullify any standard which violates the contents of Conventions Nos. 87 and 98.
19. 14. As concerns the recommendations made by the Committee at its May 1993 meeting concerning the need to amend several provisions of the Organic Labour Act, the Government has indicated that:
20. - as concerns section 419 (which requires a minimum number of ten employers to form an association), Venezuelan employers do not wish, for historical reasons, to organize themselves into unions and that typically employers' organizations have taken the form of chambers of commerce and industry. While stating that the standards contained in this section do not affect in any way the right of employers to organize freely, the Government undertakes to exercise its legislative initiative to amend this section in the manner indicated by the Committee in its previous recommendations;
21. - as concerns section 418 (which requires a minimum of 40, 150 or 100 workers to form different types of unions), it undertakes to begin discussions with the social partners concerning the advisability of reducing the minimum number of workers required to form a union;
22. - as concerns sections 408 and 409 (concerning the aims of workers' and employers' organizations), 448 (concerning the cause or motive for expelling a member from an organization), 446 (concerning trade union security clauses), 398 and 513 (concerning the extension of collective agreements to workers who are not members of the organizations which concluded them and the extension to departments or branches which correspond to distinct jurisdictions), it undertakes to begin discussions with the social partners in order to appreciate their views, thus permitting these discussions to serve as the basis for a proposal of legislative revision;
23. - as concerns section 507 (concerning the negotiation of collective contracts between non-unionized workers' representatives and employers), while not denying workers' coalitions the right to bargain collectively with one or several employers to determine general working conditions, given that the intention of the legislator is to keep agreements resulting from such negotiations from having the same effect and privileges recognized for collective agreements, it undertakes to begin discussions with the social partners in order to appreciate their views and to use these discussions as the basis for a proposal of legislative revision;
24. - as concerns sections 530, 532, 533(e), 538, 543 and 545 (concerning the extension of collective agreements), it undertakes to examine the consequences resulting from the extension of a collective agreement, taking into consideration the opinion of the social partners. The Government specifies that the examination of the consequences can be expressly reflected in the general regulations of the Organic Labour Act;
25. - as regards section 404 (concerning the limitation of the rights of foreign workers), there is no doubt that the requirement that a foreign worker exercising union duties must have prior authorization and have resided in the country no less than 12 years violates Convention No. 87.

D. The Committee's conclusions

1. 15. The Committee notes that the allegations that remained pending refer to the incompatibility of two sections of the Organic Labour Act with Conventions Nos. 87 and 98.
2. 16. As regards the allegations concerning inequitable treatment favouring various economic chambers and bodies, as well as professional colleges, to the detriment of employers' organizations, concerning which the Government has not yet sent its observations, the Committee notes that section 405 of the Organic Labour Act provides as follows:
   • Subject to prior registration with the Ministry of Labour, chambers of commerce, industry, agriculture or any other field of production or service, together with their federations and confederations, provided that they possess legal personality, may perform the functions accorded by the present Act to employers' associations. Similarly, subject to prior registration with the Ministry of Labour, legally established professional colleges and their federations and confederations shall enjoy equal rights to perform the functions of workers' trade unions in the representation of their members.
3. 17. In this respect the Committee notes that the IOE states that chambers of commerce, industry, agriculture and other legal entities of an associative type are not subject to the same requirements as employers' organizations as regards their constitution and the carrying out of their activities, which discourages the formation of organizations of this type. Among other things, the complainant indicates that - to the detriment of employers' organizations - associations of the type mentioned in section 405 enjoy the following benefits: (1) they are not required to have the same minimum number of workers in order to be established; (2) there are no legal restrictions on their functions and aims; (3) the procedure for their registration is simplified; (4) their registration may not be refused; (5) they do not need to notify the authorities of changes in their statutes or to provide information on their activities or their members; (6) the procedure for the election of their directors may be by acclamation, and periods of office may be longer; (7) they have greater powers of decision as regards control of their finances and the use to which these may be put.
4. 18. The Committee notes that chambers and other legal entities of an associative type may be formed and may perform the functions proper to employers' organizations, but that the establishment and operation of the latter is subject to requirements and limitations that appear to exceed the legal requirements to which chambers and other legal entities of an associative type are subject. In the view of the Committee this might influence the social partners at the time when they decide on their form of association (chamber or association on the one hand or occupational organization on the other). The Committee cannot exclude the hypothesis that the legislator may have attempted to take account of a de facto situation existing in the country at the time when the provisions of section 405 were included in the Organic Labour Act; nevertheless, one of the social partners has manifested its disagreement with the provision in question, since it would indirectly promote the formation of chambers or associations and would make it difficult to set up employers' organizations. In these circumstances, the Committee considers that it would be appropriate for the Government, in consultation with the organizations concerned, to take the necessary steps to bring the requirements for the establishment and functioning of "employers' occupational associations" into line with those governing chambers and civil associations, so as to ensure that "employers' occupational associations" are not restricted by excessively detailed provisions which discourage their establishment, contrary to Article 2 of Convention No. 87, which provides that employers, as well as workers, shall have the right to establish organizations of their own choosing without previous authorization.
5. 19. As regards section 473, to which the complainant organization takes exception, the Committee observes that, in submitting the representation, the IOE alleged that the provisions of this Article limit the possibility that two or more trade unions may exist in a single enterprise, and that according to the complainant organization this is contrary to the provisions of Convention No. 87. Subsequently, in submitting its additional information, the IOE added that the section concerned also violated the provisions of Convention No. 98, in particular that relating to the voluntary nature of negotiation. The Committee notes that the Government has not communicated its observations on these matters.
6. 20. As regards the first point, the Committee notes that the second paragraph of section 473 stipulates that a collective agreement may be negotiated only by a trade union representing an absolute majority of the workers in an enterprise. The Committee considers that this provision does not violate Convention No. 87, since it does not exclude the possibility of there being more than one trade union. The Committee nevertheless notes that the impugned provision also refers to the need for an absolute majority for bargaining purposes, and, in this sense, problems may arise with respect to the application of Article 4 of Convention No. 98 when no union in an enterprise or bargaining unit represents the absolute majority of workers; this would make it impossible for trade unions to negotiate a collective agreement, either jointly or separately. In these circumstances, and since it does not promote collective bargaining in the sense of Article 4 of Convention No. 98, the Committee invites the Government to take steps, in consultation with the organizations concerned, to amend the provision in question, so as to ensure that when no trade union represents the absolute majority of the workers the organizations may jointly negotiate a collective agreement applicable to the enterprise or the bargaining unit, or at least conclude a collective agreement on behalf of their members.
7. 21. As regards the second point mentioned by the IOE, respecting the first paragraph of section 473, the Committee notes that the complainant organization states that: (1) the provisions of this section allow a labour inspector discretionary powers to initiate a phase of negotiation between an employer and a trade union by the mere fact of taking cognizance of the existence of a collective dispute; (2) these powers allow inspectors to intervene even at stages when the planning of the conduct of the dispute is being organized; (3) the State reserves the right to intervene before either party is able to develop its programme of action; (4) labour inspectors are obliged to attempt to initiate a phase of bargaining regardless of whether the parties are interested in doing so; (5) these powers affect the impartiality of labour inspectors.
8. 22. The Committee observes that the first paragraph of section 473 provides that, on taking cognizance of the existence of a dispute of a collective nature, or when the matter comes up, the labour inspector shall attempt to initiate a phase of negotiation between the employer(s) and the trade union(s) concerned, and may take part in the discussions in person in an attempt to harmonize their interests and points of view. In this respect the Committee recalls that the Voluntary Conciliation and Arbitration Recommendation, 1951 (No. 92), advocates that: "Voluntary conciliation machinery, appropriate to national conditions, should be made available to assist in the prevention and settlement of industrial disputes between employers and workers. ... Provision should be made to enable the procedure to be set in motion, either on the initiative of any of the parties to the dispute or ex officio by the voluntary conciliation authority." The Committee concludes that the first paragraph of section 473 does not appear to exceed the admissible limits of intervention of the labour administration within the framework of voluntary conciliation according to this Recommendation. It is for the Committee of Experts to examine whether this provision exceeds the powers which the Labour Inspection Convention (No. 81), 1947, provides for labour inspectors. Nevertheless, the Committee cannot but observe that the first paragraph of section 473 is drafted in such broad terms as not to exclude an extensive interpretation and the concrete possibility that it may be applied to actual situations in which conciliation is neither necessary, appropriate nor desirable. In these circumstances, the Committee invites the Government to ensure that the application of this section by the administrative authorities of the Ministry of Labour does not depart from the principles contained in Recommendation No. 92 and guarantees the application of Article 4 of Convention No. 98, according to which the public authorities must encourage and promote the full development and utilization of machinery for voluntary collective bargaining, as well as to proceed towards the creation of machinery for voluntary conciliation.
9. 23. Finally, as concerns the recommendations made during the examination of this representation at its May 1993 meeting, the Committee notes the Government's statement that it is beginning a process of discussion and revision of the general regulations of the Organic Labour Act and that it undertakes to comply with the recommendations made by the Committee concerning these regulations. It also notes the decision of the Supreme Court, the highest judicial authority in Venezuela, according to which, in the case of conflict, the Conventions ratified by Venezuela shall prevail over the standards contained in the Organic Labour Act. Furthermore, the Committee notes and welcomes the decision of the Government to undertake discussions with the social partners and to exercise its legislative initiative so that the revision of the regulations takes into consideration the Committee's recommendations concerning the amendment of the following legislative provisions: sections 419 and 418 concerning the requirement of a minimum number to form workers' and employers' associations; sections 408 and 409 concerning the aims of employers' and workers' organizations; section 448 concerning the cause or motive for expelling a member of an organization; section 446 concerning trade union security clauses; sections 398 and 513 concerning the extension of collective agreements to workers who are not members of the organization which concluded them and the extension to departments or branches corresponding to distinct jurisdictions; section 507 concerning negotiation of collective contracts between non-unionized workers' representatives and employers; sections 530, 532, 533(e), 535, 538, 543 and 545 concerning the extension of collective agreements; and section 404 concerning the limitation of the rights of foreign workers. The Committee trusts that the Government will include the provisions examined in its previous paragraphs as concerns sections 405 and 473 of the Organic Labour Act among the legislative provisions the Government proposes to examine with the social partners with a view to their amendment. Finally, noting that the Government states that it proposes to fulfil some of the Committee's recommendations by means of a regulation, the Committee wishes to insist upon the necessity of amending the legislation in the sense indicated and that regulatory changes are insufficient.

The Committee's recommendations

1. 24. In the light of its foregoing conclusions, the Committee invites the Governing Body to approve the following recommendations:
   • (a) The Committee considers that it would be appropriate for the Government, in consultation with the organizations concerned, to take the necessary steps to bring the requirements for the establishment and operation of "employers' occupational associations" into line with those for chambers and civil associations, so as to ensure that "employers' occupational associations" are not restricted by excessively detailed provisions which discourage their establishment, contrary to Article 2 of Convention No. 87, which provides that employers, as well as workers, shall have the right to establish organizations of their own choosing without previous authorization.
   • (b) As regards the provision that a collective agreement may be negotiated only by the union which represents an absolute majority of the workers in an enterprise (second paragraph of section 473 of the Organic Labour Act), the Committee considers that this provision does not promote collective bargaining in the sense of Article 4 of Convention No. 98, and requests the Government, in consultation with the organizations concerned, to take steps to amend the provision in question, so as to ensure that, in cases where no trade union represents the majority of workers, the minority organizations may jointly negotiate a collective agreement applicable to the enterprise or bargaining unit, or at least conclude a collective agreement on behalf of their own members.
   • (c) Regarding the labour inspector's powers of initiating a phase of negotiation on taking cognizance of the existence of a dispute of a collective nature, or when the matter comes up (first paragraph of section 473 of the Organic Labour Act), the Committee requests the Government to ensure that the application of this section by the administrative authorities of the Ministry of Labour guarantees the application of Article 4 of Convention No. 98, according to which the public authorities must encourage and promote the full development and utilization of machinery for voluntary collective bargaining, as well as to proceed towards the creation of voluntary conciliation machinery.
   • (d) The Committee trusts that the Government will include the provisions examined in its previous paragraphs as concerns sections 405 and 473 of the Organic Labour Act among the legislative provisions which the Government proposes to examine with the social partners with a view to their amendment.
   • (e) The Committee draws this case to the attention of the Committee of Experts on the Application of Conventions and Recommendations.

Z. Annex

• Sections of the Organic Labour Act mentioned by the complainant organization
• Section 405: Subject to prior registration with the Ministry of Labour, chambers of commerce, industry, agriculture or any other field of production or service, together with their federations and confederations, provided that they possess legal personality, may perform the functions accorded by the present Act to employers' associations.
• Similarly, subject to prior registration with the Ministry of Labour, legally established professional colleges and their federations and confederations shall enjoy equal rights to perform the functions of workers' trade unions in the representation of their members.
• Section 409: Employers' associations shall have the following functions and aims:
  • (a) to protect and defend the general interests of their members vis-à-vis public bodies and authorities;
  • (b) to represent their members in collective bargaining and disputes, and particularly in conciliation and arbitration proceedings;
  • (c) to promote, negotiate, conclude, revise and modify collective labour agreements;
  • (d) to represent and defend the individual interests and rights of their members, and also of non-member employers who may so request, in administrative and judicial proceedings, without prejudice to the provisions of the law concerning legal counsel, and in their relations with workers;
  • (e) to monitor compliance with standards designed to protect workers, maternity and families;
  • (f) to carry out studies regarding aspects of the relevant sector of industry, commerce or services; costs and standards of living; education, training and culture; and, in general, any subject enabling them to promote the social, economic and cultural progress of their members; and also to make proposals to the public authorities for the achievement of such progress;
  • (g) to cooperate with public authorities, bodies and institutes in the preparation and implementation of programmes for social and cultural advancement, and in the technical qualification and placement of workers;
  • (h) to reply in good time to inquiries addressed to them by the authorities and to supply the information requested, in accordance with the law;
  • (i) to carry on permanent campaigns in places of employment to promote the struggle against corruption, the undue consumption of narcotics and psychotropic drugs, and other practices harmful to physical and mental health and to society; and (j) in general, to further the aims laid down in their statutes or voted by their members.
• Section 419: Ten or more employers engaged in the same industry or activity, or similar or related industries or activities, may form an employers' association.
• Section 425: The labour inspector shall receive registration application documents from an occupational association and shall give effect to the request for registration within 30 days. If a fault is found in the application the inspector shall notify the applicants, who shall have 30 days to correct it. Once the fault is corrected, the inspector shall proceed with the registration.
• If the fault is not corrected by the parties concerned within the period stipulated by this section, the inspector shall not proceed with the registration.
• The inspector's decisions shall be subject to appeal before the Ministry of Labour, and the Ministry's decisions shall be subject to appeal to the administrative court, in both cases within a period of ten days following the date on which the management committee-elect is notified of the respective decision.
• The labour inspector shall record the registration in an official register established for that purpose.
• Section 426: The local labour inspector or the National Labour Inspector may only reject the registration of an occupational association in the following cases:
  • (a) if the occupational association does not have as its objective the aims stipulated in sections 408 and 409 of the present Act;
  • (b) if the occupational association was not established with the number of members stipulated in sections 417, 418 and 419;
  • (c) if the application is not accompanied by the documents required under section 421, or if there is a fault or omission in these documents; and
  • (d) if the occupational association violates the provisions of section 428 of the present Act.
• If the requirements for the registration of occupational associations established under the present Act are fulfilled, the relevant labour authorities shall not be able to deny registration.
• Section 427: Upon application for registration of an occupational association, the observations that a labour inspector may make to the parties concerned in accordance with section 425 shall not deprive the applicants of the protection extended under section 450, provided that the period for the correction of faults has lapsed and the applicants have not corrected them, and provided registration has not been finally refused.
• Section 430: Occupational associations are required to:
  • (a) inform the labour inspector within ten days of changes made to their statutes and send certified copies of the corresponding documents;
  • (b) present a detailed annual report to the labour inspector on their administration and a complete list of their members, including the information mentioned in section 424;
  • (c) provide the competent labour official with information requested regarding their legal obligations; and
  • (d) fulfil the other obligations established under the present Act and other laws.
• Section 431: For the decisions taken at the occupational association's assemblies to be valid, the following requirements shall be met:
  • (a) the assembly must be convened in the form and with the advance notice stipulated in the statutes;
  • (b) the assembly must include at least half plus one of the occupational association's members. If this quorum is not reached, a second meeting may be called in accordance with the provisions of the statutes, comprising the number of members who attend, which may not be less than 20 per cent;
  • (c) the decisions must be adopted by the number of votes stipulated in the statutes, which cannot be less than the absolute majority of the members present; and
  • (d) a record of the session must be kept, certified in the form stipulated by the statutes, and including information on the number of members present, a record of the debate and the text of all approved decisions.
• Section 433: The election of executives and workers' representatives shall be by direct secret ballot, on pain of being declared null and void.
• The collegiate bodies shall be elected by proportional representation.
• Section 434: The executive of an occupational association shall remain in office during the period in which the statutes of the body are drawn up, but in no case for a period exceeding three years. This provision shall not apply to federations and confederations.
• Section 435: If no notice has been given of elections three months after the expiry of the period for which the executive of an occupational association has been elected, a number amounting to at least 10 per cent of the workers who are members of the organization may apply to the judge of the district labour court to arrange for such notice.
• Section 436: Membership of an occupational association shall be lost:
  • (a) for reasons specified in the statutes;
  • (b) in professional, industrial and sectoral associations: for voluntary failure to practise the profession or trade concerned, or for separation from the industry or economic branch concerned, for a period of six consecutive months. Officers of the executive are exempted from this requirement during their period of office and for up to six months after they leave office, as are persons involved in the organization and running of cooperatives;
  • (c) in enterprise unions, after three months following separation;
  • (d) resignation; or
  • (e) on joining another occupational association with the same or incompatible aims.
• The statutes shall make provision for appropriate rights in social institutions for those who cease to be members of an occupational association.
• Section 437: The funds of occupational associations may not be used for purposes other than those laid down in the statutes. Violation of this provision is subject to the penalties provided for by law.
• Section 439: The funds of an occupational association shall be deposited in a bank in its own name. In places where there are no banks the deposit shall be made in establishments to be determined by the national executive.
• No sum of money beyond that fixed by the statutes shall be kept as petty cash.
• Section 440: The funds of an occupational association may not be mobilized, nor may any payment be made therefrom, except by means of an instrument jointly signed by three members of the executive, as the statutes shall determine.
• Section 441: The executive shall render a detailed and complete account of its administration to the annual assembly.
• At least 15 days before the date on which the assembly is to be held, the executive shall post a copy of the account which it intends to present in a conspicuous place in the offices of the occupational association, in order to enable the members to examine it.
• Any officers who have not fulfilled this obligation may not be re-elected.
• Section 442: On the request of 10 per cent or more of the members of an occupational association, the auditing body of the respective federation or confederation shall examine the accounts or a given transaction, as requested, and shall make an appropriate report to those attending the meeting within 30 days following the request.
• First paragraph. The confederations shall ensure that the auditors' offices of their member associations inspect the transactions of the persons administering the funds of occupational associations with a view to guaranteeing their honesty or determining responsibility, as the case may be.
• Second paragraph. Where the auditing body of the respective federation or confederation has not pronounced on the requested audit within a period of 60 days, or if the occupational association does not agree with the results, at least 10 per cent of its members may apply to the General Accounts Office of the Republic to request an examination of the accounts of the respective administration.
• Section 473: On taking cognizance of the existence of a dispute of a collective nature, or when the matter comes up, the labour inspector shall attempt to initiate a phase of negotiation between the employer(s) and the trade union(s) concerned, and may take part in the discussions either in person or via a representative in an attempt to harmonize their interests and points of view.
• Negotiations with a view to concluding a collective agreement requested by a trade union representing an absolute majority of the workers in an enterprise shall be regulated by the provisions of Chapter IV of the present Title.