REPRESENTATION (article 24) - COSTA RICA - C081, C095, C102, C122, C127, C130, C131, C138, C144 - 1985

1. The Confederation of Costa Rican Workers (CTC), 2. The Authentic Confederation of Democratic Workers (CATD), 3. The United Confederation of Workers (CUT), 4. The Costa Rican Confederation of Democratic Workers (CCTD), 5. The National Confederation of Workers (CNT)

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Report of the Committee set up to examine the representation made by the Confederation of Costa Rican Workers (CTC), the Authentic Confederation of Democratic Workers (CATD), the United Confederation of Workers (CUT), the Costa Rican Confederation of Democratic Workers (CCTD) and the National Confederation of Workers (CNT), under article 24 of the Constitution, alleging the failure by Costa Rica to observe International Labour Conventions nos. 81, 95, 102, 122, 127, 130, 131, 138 and 144

Report of the Committee set up to examine the representation made by the Confederation of Costa Rican Workers (CTC), the Authentic Confederation of Democratic Workers (CATD), the United Confederation of Workers (CUT), the Costa Rican Confederation of Democratic Workers (CCTD) and the National Confederation of Workers (CNT), under article 24 of the Constitution, alleging the failure by Costa Rica to observe International Labour Conventions nos. 81, 95, 102, 122, 127, 130, 131, 138 and 144

Decision

The Governing Body adopted the report of the tripartite committee. Procedure closed.

Complaint Procedure

I. INTRODUCTION
1. By a communication dated 16 April 1984, the above-mentioned trade union organisations made a representation (Endnote 1) to the Office alleging the non-observance by the Government of Costa Rica of the Right of Association (Agriculture) Convention, 1921 (No. 11), the Labour Inspection Convention, 1947 (No. 81), the Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87), the Protection of Wages Convention, 1949 (No. 95), the Right to Organise and Collective Bargaining Convention, 1949 (No. 98), the Social Security (Minimum Standards) Convention, 1952 (No. 102), the Employment Policy Convention, 1964 (No. 122), the Maximum Weight Convention, 1967 (No. 127), the Medical Care and Sickness Benefits Convention, 1969 (No. 130), the Minimum Wage Fixing Convention, 1970 (No. 131), the Workers' Representatives Convention, 1970 (No. 135), the Minimum Age Convention, 1973 (No. 138), and the Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144).
2. This representation refers to a series of Conventions which have been ratified by Costa Rica and which remain in force for that country. (Endnote 2)
3. The representation is also directed against the International Monetary Fund (IMF), which it states is jointly responsible with the Government for the measures concerned. In this respect, it is asked that a specific item on the economic policies of the IMF and their repercussions on international and labour standards in underdeveloped and developing countries be included on the agenda of the next session of the International Labour Conference.
4. The representation also alleges the violation of article 19 of the Constitution by the failure to submit to the competent authority the Labour Relations (Public Service) Convention, 1978 (No. 151), and the Collective Bargaining Convention, 1981 (No. 154).
5. The relevant provisions of the Constitution of the International Labour Organisation relating to the making of representations are as follows:
Article 24
In the event of any representation being made to the International Labour Office by an industrial association of employers or of workers that any of the members has failed to secure in any respect the effective observance within its jurisdiction of any Convention to which it is a party, the Governing Body may communicate this representation to the Government against which it is made, and may invite that Government to make such statement on the subject as it may think fit.
Article 25
If no statement is received within a reasonable time from the Government in question, or if the statement when received is not deemed to be satisfactory by the Governing Body, the latter shall have the right to publish the representation and the statement, if any, made in reply to it.
6. The procedure to be followed in representations is governed by the revised Standing Orders adopted by the Governing Body at its 212th (March 1980) Session. (Endnote 3)
7. In accordance with articles 1 and 2, paragraph 1, of the Standing Orders, the Director-General acknowledged receipt of the representation, informed the Government of Costa Rica of it and brought it before the Officers of the Governing Body.
8. At its 227th (June 1984) Session, the Governing Body (Endnote 4) decided, as recommended by its Officers:
(a) to declare receivable the representation made against Costa Rica as concerns Conventions Nos. 11, 81, 87, 95, 98, 102, 122, 127, 130, 131, 135, 138 and 144;
(b) to declare irreceivable the representation against Costa Rica as concerns submission to the competent authority of Conventions Nos. 151 and 154, on the ground that a representation may refer only to ratified Conventions;
(c) to declare irreceivable the representation presented against the International Monetary Fund, on the ground that this body is not a State Member of the ILO;
(d) to set up a committee for the examination of the representation, except for the aspects relating to Conventions Nos. 11, 87, 98 and 135, which committee was to be composed of Mrs. Lucille Caron (Government member, Canada; Chairman), Mrs. Lucia Sasso-Mazzufferi (Employer member, Italy); and Mr. Juan José Delpino (Worker member, Venezuela);
(e) to refer the aspects of the representation relating to the implementation of Conventions Nos. 11, 87, 98 and 135 to the Committee on Freedom of Association; and
(f) to refer to the Committee of Experts on the Application of Conventions and Recommendations the question concerning submission to the competent authority of Conventions Nos. 151 and 154.
9. In accordance with article 4, paragraph 1, clauses (a) and (c), of the Standing Orders, the Committee had decided: (a) to invite the complainant organisations to communicate before 15 August 1984 any additional information which they might wish to bring to the notice of the Committee; (b) to invite the Government to make a statement on the representation before 30 September 1984, on the understanding that any additional information received from the complainant organisations would also be communicated to the Government. (These time-limits were later extended to enable both parties to supply the information requested.)
10. The complainant organisations furnished, via the ILO Office in San José, a series of documents to which reference is made in the representation; they were received in Geneva on 25 October and communicated to the Government on 5 November 1984 (a recapitulation of these documents is appended to this report).
11. By letters of 8 October, 22 November and 18 December 1984 the Government transmitted its observations on the allegations made. The Committee met in Geneva in June and November 1984, and finally in June 1985, when it adopted its report.
II. EXAMINATION OF THE REPRESENTATION
12. It is proposed to deal successively with the matters set forth in the representation concerning the following Conventions: employment policy (Convention No. 122); social security (Conventions Nos. 102 and 130); wages (Conventions Nos. 95 and 131); other Conventions (Conventions Nos. 81, 127, 138 and 144).
13. The complainant organisations challenged the International Monetary Fund in their allegations. Since the representation was declared irreceivable with respect to the IMF the Committee will omit any reference to this body during the examination of the representation, except to the extent to which the texts and documents cited directly concern the IMF. In addition, the Committee must draw attention to the fact that in its statement the Government rejects the allegation that the measures to which the complainant organisations take exception were imposed by the International Monetary Fund.
Part 1: Questions relating to employment
Employment Policy Convention, 1964 (No. 122)
1. Allegations made
14. According to the allegations made in this respect, under point 12 of the description of facts in the representation, the economic and social policies followed in Costa Rica are having negative repercussions on the unemployment rates in the country, to the direct prejudice of employment and social policies, among other things, thus violating Convention No. 122.
15. In addition, in point 9(f) of the description of facts, the complainants allege the elimination of all the vacant posts in the budgets of public institutions, the dismissal of thousands of temporary workers, failure to fulfil commitments made in respect of wages, and failure to observe agreements which were in force with the workers' organisations. In this respect, the complainants offer as evidence the Act for the financial equilibrium of the public sector, known as the "Emergency Act", No. 6955 of 24 February 1984.
2. Observations of the Government
16. In its reply, the Government denies that it has dismissed thousands of temporary workers, although it states that the Act for the financial equilibrium of the public sector provides for the elimination of any posts that might be vacant or that might become so on the date of its entry into force (sections 16 and 18); and that in virtue of section 20 "posts which on the date of entry into force of the present Act are occupied by officials appointed on a temporary basis shall not be deemed vacant". The Government affirms that, contrary to the allegations, the situation of most temporary workers had been resolved by their permanent appointment in their respective posts.
17. As regards the question of unemployment in general, the Government indicates that, thanks to the implementation of various programmes and policies to generate employment, basically in the private sector, the present Government managed to lower the open unemployment rate from 9.4 per cent in July 1982 to 7.8 per cent in March 1984.
18. Finally, the Goverment remarks that it is continuing to make all necessary efforts to reduce unemployment, and that for this purpose it is hoping to put into practice the recommendations and resolutions adopted at the Fourth Regional Conference of Latin American and Caribbean Employment Planners held in Costa Rica in October 1984.
3. Conclusions of the Committee
19. The Committee notes that, under the Act for the financial equilibrium of the public sector, No. 6955 of 1984 (document No. 9) (section 18, read in conjunction with sections 22, 24 and 28), posts left vacant by public servants are to be eliminated from the budgets of public institutions. Moreover, in accordance with section 29, the total number of posts occupied on a fixed-term or daily basis and posts in special services may not exceed the number occupied on 1 January 1984 during the years 1984, 1985 and 1986. The application of these provisions may result in a reduction of the number of posts in the public sector which, if it is not offset by the creation of new jobs in the private sector, will entail a corresponding measure of unemployment.
20. The Committee also notes that according to the draft letter of intent sent by the Government of Costa Rica to the International Monetary Fund in 1984 (document No. 3) (page 5, point 6), it is stated that: "On the expenditure side, the Government has undertaken to follow a policy of restrictions in 1984 and subsequent years. For this purpose, a freeze on employment by the Government has been decided and certain wage adjustments have been delayed along with the introduction of a new wage scale in the public sector."
21. The Committee further observes that in connection with the present Convention, the Committee of Experts on the Application of Conventions and Recommendations in March 1984 requested the Government of Costa Rica to supply information on unemployment and on various questions related to employment policy. In its comments, the Committee particularly stressed the rapid rise in unemployment in 1982 and noted that the Programme for the Free Economic Sector (SEL, an essential element in the national employment policy) had not been approved by the National Assembly.
22. In this regard, the Committee notes that in its report on Convention No. 122 for the period ending June 1984, (Endnote 5) the Government referred to various subsidies for the creation of jobs and the alleviation of unemployment, the rate of which had recorded a slight decrease between 1982 and 1983, when according to the report it had dropped from 9.4 to 9 per cent as regards open unemployment, and from 23.7 to 19.9 per cent as regards overall unemployment. (Endnote 6) As indicated above (paragraph 17), the open unemployment rate continued to fall in the early months of 1984, to settle at 7.8 per cent in March of that year. These indications appeared to show that the recent measures in this field were producing results in a particularly difficult national and international economic context.
23. The Committee nevertheless notes that the above-mentioned provisions of the Act for the financial equilibrium of the public sector, No. 6955 of 1984 (elimination of vacant posts and freeze on the number of posts occupied on a fixed-term or daily basis and posts in special services during 1984, 1985 and 1986 in the public sector), as well as the point referred to in the draft letter of intent sent to the IMF (policy of restrictions, i.e. employment freeze by the Government), are designed to reduce or limit employment in the public sector. The Committee does not feel competent to give an opinion on the Government's financial policy in general or, consequently, on the justification for the measures taken under this policy. It has also noted the Government's statement regarding the latter's action against unemployment (see paragraphs 17 and 18 above). The Committee must nevertheless point out, in connection with Convention No. 122, that if measures taken under the policy of restrictions were not offset by others designed to promote employment in general, they might produce effects contrary to Article 1 of the Convention, which stipulates that "each Member shall declare and pursue, as a major goal, an active policy designed to promote full ... employment".
24. In the light of the foregoing conclusions, the Committee makes the following recommendations:
(a) that the Government should include in the reports to be presented by it in virtue of article 22 of the Constitution of the ILO on Convention No. 122, detailed information concerning employment in the public sector, and on various questions related to employment policy in general, in particular:
(i) information in detail on the various job-creation subsidies to which the Government alludes in its latest report on the application of this Convention;
(ii) information on measures to deal with the economic situation or structural measures (including the National Development Plan) adopted to reduce unemployment;
(b) that the Committee of Experts on the Application of Conventions and Recommendations should continue to examine these questions on the basis of the information supplied in compliance with the above recommendation.
Part 2: Questions relating to social security
Social Security (Minimum Standards) Convention, 1952 (No. 102); Medical Care and Sickness Benefits Convention, 1969 (No. 130)
1. Allegations made
25. In point 7 of the description of facts, the complainant organisations point out that the letter of intent signed by the Government with the International Monetary Fund in December 1982 agreed to "reduce state services, with the limitation and disappearance of important programmes concerning social security, health and education ...".
26. Furthermore, in point 9(a) of the description of facts, it is alleged that the Government has not fulfilled the obligations set out in Act No. 6835 respecting wage revaluation and wage scales (document No. 4), and that it left without sufficient budgetary allocation areas as important as the pension sector, including retirement pensions "which, until now, have not received payment under the wage scale".
27. It is also alleged that the State did not pay its compulsory employer's contributions to the People's Bank and the Costa Rican Social Security Fund (point 9(f) of the description of facts).
2. Observations of the Government
28. As regards point 7 of the description of facts in the representation, the Government states that nowhere in the letter of intent to which the complainant organisations refer, which dates from 1984 and not 1982, is it mentioned that the Government undertakes to reduce or abolish any of the programmes mentioned. The Government further points out that at no time did it fail to fulfil the obligations laid down by Act No. 6835 of 21 December 1982 respecting wage revaluation and wage scales (in this connection see the Government's observations below under Part 3), neither did it neglect old-age and other pensioners, since in August 1984 a start was made with the adjustment of pensions under various schemes, such as the National School-teachers' Scheme, the Ministry of Transport, the Ministry of Finance and the Public Records and Communications Service, in order to include the revaluations resulting from the application of the wage scale.
29. The Government has sent no information regarding the non-payment by the State as an employer of its compulsory contributions to the People's Bank and the Costa Rican Social Security Fund (point 9(f) of the description of facts in the representation).
3. Conclusions of the Committee
30. The Committee notes that any limitation or disappearance of social security programmes (point 7 of the description of facts) would only be relevant to this representation in the event that it violated the provisions of Conventions Nos. 102 and 130.
31. The Committee has noted that, as the Government points out, the "letter of intent", copy of which was communicated by the complainant organisations, contains no reference to any "limitation and disappearance of important programmes concerning social security ...". This "letter of intent" appears to date from 1984, as the Government affirms, and not from 1982. (Endnote 7) However, under this point, the complainant organisations refer to a letter of intent said to have been signed in December 1982 and to a first agreement signed with the International Monetary Fund on the basis of this letter (see points 7 and 8 of the description of facts). The Committee requested a copy of this agreement through the Office by letter of 22 November 1984. The Government replied that no agreement of any kind had been concluded with the International Monetary Fund on the basis of the "letter of intent of 1984" but did not deal with the question of any agreement signed with the International Monetary Fund in December 1982. (Endnote 8)
32. The Committee remarks that the alleged failure to fulfil the obligations of Act No. 6835 respecting wage revaluation and wage scales (point 9(a)) would not in itself infringe the Conventions under consideration, although it might be incompatible with the provisions of Article 65, paragraph 10, of Part XI (Standards to be complied with by periodical payments) read in conjunction with the provisions of Part V (Old-age benefit), of Convention No. 102, since this provision of Article 65 stipulates that the rates of current periodical payments in respect of old age shall be reviewed following substantial changes in the cost of living.
33. Nevertheless, the Committee notes that the Government has sent information to the effect that certain pensions have been adjusted and that the Committee of Experts on the Application of Conventions and Recommendations made no remarks in this connection in its observations made in March 1984. (Endnote 9) The Committee therefore considers it appropriate to refer the information sent to this supervisory body for examination.
34. As regards the alleged failure of the State to pay its employer's contributions to the People's Bank and the Costa Rican Social Security Fund (point 9(f)), the Committee notes that this might infringe the provisions of Article 71, paragraph 2, of Convention No. 102, in virtue of which the total of the insurance contributions borne by the employees protected shall not exceed 50 per cent of the total of the financial resources allocated to the protection of employees and their wives and children.
35. Likewise, the alleged failure of the State to fulfil these obligations might affect the application of Article 30, paragraph 2, of Convention No. 130, in virtue of which each Member shall accept general responsibility for the proper administration of the institutions and services concerned in the application of the Convention.
36. Nevertheless, since it has no information from the Government in this connection, the Committee is not in a position to state whether the above-mentioned provisions of these Conventions are being applied. It therefore considers that it would be desirable for the Government to supply detailed information in this respect, and for the information to be referred to the Committee of Experts for examination.
37. It should also be pointed out that the observations made by the Committee of Experts in 1984 in connection with Convention No. 102, and those made in 1983 in connection with Convention No. 130, deal with questions unrelated to the facts alleged in the representation.
38. In the light of the foregoing conclusions, the Committee makes the following recommendations:
(a) that the Government should include, in the reports to be presented on Conventions Nos. 102 and 130 under article 22 of the ILO Constitution, detailed information on the application of Article 71, paragraph 2, of Convention No. 102, and on the application of Article 30, paragraph 2, of Convention No. 130, with respect to the alleged failure to pay the People's Bank and the Costa Rican Social Security Fund the employer's contributions which are the responsibility of the State, an allegation on which the Government has not supplied any information;
(b) that the Committee of Experts on the Application of Conventions and Recommendations should continue to examine these questions and the question of the application of Article 65, paragraph 10, of Convention No. 102 (see paragraphs 31 to 35 above) on the basis of the information supplied under the above recommendation.
Part 3: Questions relating to wages
Protection of Wages Convention, 1949 (No. 95); Minimum Wage Fixing Convention, 1970 (No. 131)
1. Allegations made
39. The complainants allege that (point 9(b) of the description of facts in the representation) the Government announced a wage freeze as from January 1984, and that the wage increase of 5 per cent approved for the private sector did not cover the loss in the workers' purchasing power during 1983. This situation was aggravated by the very big increases in public service charges and in the price of foodstuffs and medicines and the inflationary pressure which began in January 1984.
2. Observations of the Government
40. In its reply, the Government points out that, as mentioned before, it has not failed to fulfil the obligations laid down in Act No. 6835 of 21 December 1982 respecting wage revaluation and wage scales. In this connection, it gives the following information: in August 1984 "a start was made with adjusting pensions in the public sector, which resulted in expenditure of almost 1,351 million colones in 1984". The Government adds: "Moreover, under Decree No. 13827-TSS of 19 August 1982, the sliding wage scale system was instituted, which enabled wages in the public and private sectors to be adjusted in accordance with biannual variations in the basic wage basket; this is the sole wage policy mechanism. This project obtained the acceptance and compliance of the trade unions. " Finally, the Government states that other wage adjustments were made in December 1982, 1983 and 1984 with a view to compensating for the loss in real value of wages. In particular, the increase in real wages was 10 per cent in July 1984, whereas the rise in the consumer price index was only 7.9 per cent during the same reference period.
3. Conclusions of the Committee
41. In connection with Convention No. 95 the Committee notes that the alleged facts are refuted by the Government and also recalls that these would not infringe the Convention, whose provisions do not deal with wage levels or prescribe procedures or machinery for their revision.
42. As regards Convention No. 131, the Committee notes that the matter of the wage freeze might affect the application of Articles 3 and 4, paragraph 1, of the Convention. (Endnote 10)
43. Article 3 stipulates that in determining the level of minimum wages account shall be taken of "the needs of workers and their families" as well as "economic factors", in the light of various elements and requirements which are listed in the Article. Article 4, paragraph 1, requires "machinery whereby minimum wages ... can be ... adjusted from time to time".
44. On the question of periodic adjustment of minimum wages, the Committee has noted that, as indicated by the Government, the "sliding wage scale" was instituted by Decree No. 13827-TSS of 19 August 1982 (Diario Oficial, 20 Aug. 1982), with a view to adjusting wages in the public and private sectors biannually to variations in the prices of goods composing the "basic wage basket". In this connection, the Committee has noted the Government's statement to the effect that this mechanism for the automatic and periodic adjustment of wages was accepted by the trade unions.
45. On the other hand, the Committee observes that, in conformity with paragraph 6 of the letter of intent of 1984, the Government is alleged to have undertaken to follow "a policy of restrictions in 1984 and subsequent years", for which purpose "certain wage adjustments have been delayed along with the introduction of a new wage scale in the public sector". Moreover, paragraph 12 of the same document indicates, in particular, that "during the remainder of 1984 wage adjustments in the public sector will be held within the established limits". As for minimum wages in the private sector, the same paragraph states that "they will increase by absolute amounts on the basis of rises in the cost of the basic basket of goods and services". The Committee has also taken note of the Government's statement, also to be found in this paragraph, that "wage policy will be adjusted to reduce inflationary pressures, and also will keep to a minimum the effects of price increases on low-income groups".
46. The Committee has taken due note of the above-mentioned information and statements respecting the Government's wage policy, in particular as regards minimum wages. The Committee does not have at its disposal concrete elements of information enabling it to assess the impact on the level of minimum wages of the delay in the adjustment of wages in the public sector or to judge the appropriateness of the adjustments to minimum wages foreseen for the private sector. In the light of the provisions of Article 3 of the Convention, (Endnote 11) the Committee nevertheless observes that the Government's statement on wage policy does not appear to conflict with the provisions of Article 3 which have been quoted, which furthermore provide that elements relating to the needs of workers and their families and to economic factors are to be taken into consideration "so far as possible and appropriate in relation to national practice and conditions". (Endnote 12)
47. In the light of the foregoing conclusions, the Committee recommends:
(a) that the Government should communicate the information requested by the Committee of Experts on the Application of Conventions and Recommendations in the reports which it is to present on Convention No. 131 under article 22 of the ILO Constitution, in particular detailed information on the application of Article 3 and Article 4, paragraph 1, of the Convention;
(b) that the Committee of Experts on the Application of Conventions and Recommendations should continue to examine these questions on the basis of information supplied in compliance with the foregoing recommendation.
Other questions
Labour Inspection Convention, 1947 (No. 81); Maximum Weight Convention, 1967 (No. 127); Minimum Age Convention, 1973 (No. 138); Tripartite Consultation (International Labour Standards) Convention, 1976 (No. 144)
1. Allegations made
48. The complainant organisations allege that the Legislative Assembly has made into law of the Republic measures which constitute violations of these Conventions, without specifying the content of these measures or the provisions of the respective Conventions concerned (second paragraph of the section "Claim" of the representation).
2. Observations of the Government
49. The Government does not make any special reference to these Conventions in its reply; nevertheless, in referring to all the Conventions the subject of the representation, it states that it is impossible for it to reply to affirmations which have no foundation in fact or in concrete cases, and whose general and abstract nature do not enable it to undertake a serious and responsible investigation and impose penalties where necessary.
3. Conclusions of the Committee
50. The Committee notes that, in the absence of more specific information on the part of the complainant organisations, it is impossible for it to reach any kind of conclusions casting doubts on the application of the said Conventions by the Government of Costa Rica.
51. The Committee further notes that comments by the Committee of Experts on the Application of Conventions and Recommendations are pending in connection with Convention No. 81 (direct request of 1984); Convention No. 138 (direct request of 1984); and Convention No. 144 (direct request of 1984), but without it being possible to establish a relationship between these comments and the present representation, given the very general terms in which the latter has been formulated with regard to these Conventions.
III. RECOMMENDATIONS OF THE COMMITTEE
52. The Committee recommends the Governing Body:
(1) to approve the present report, and in particular:
(a) as regards the Employment Policy Convention, 1964 (No. 122), the recommendations in paragraph 24 of the Committee's report;
(b) as regards the Social Security (Minimum Standards) Convention, 1952 (No. 102), and the Medical Care and Sickness Benefits Convention, 1969 (No. 130), the recommendations in paragraph 38 of the Committee's report;
(c) as regards the Minimum Wage Fixing Convention, 1970 (No. 131), the recommendations in paragraph 47 of the Committee's report;
(2) to declare closed the present procedure instituted before the Governing Body on the basis of the representation dealt with in the present report.
Geneva, 3 June 1985. (Signed) L. Caron
Chairman
L. Sasso-Mazzufferi
J.J. Delpino
APPENDIX
Documentary evidence and legal texts invoked in the representation
A. Documentary evidence and texts transmitted to the Office
(1) Political Constitution (texts of articles 7, 28, 50, 56, 60, 61, 62) (document No. 1).
(2) Report presented by the Minister of Finance to the Legislative Assembly (letter from the Ministry of Finance to Mr. Arnoldo Ferreto Segura) (contains terms and conditions for the rescheduling of the external debt and the Bill for the agreement to refinance the public external debt, dated 24 November 1983) (document No. 2).
(3) Letter of intent of the Government of Costa Rica to the IMF, April 1984 (document marked No. 3) (in reality document No. 14 of the section "Documentary evidence" of the representation).
N.B. The certified copy indicates the date as being December 1982, but the contents show that the letter was written in 1984. (In its reply of 18 December 1984, the Government points out that this is a "draft letter of intent" sent by Costa Rica to the International Monetary Fund early in 1984.)
(4) Act No. 6835 respecting wage revaluation and wage scales, dated 21 December 1982 (Diario Oficial, 28 Dec. 1982) (document No. 4).
(5) Minutes of the meeting of the National Council of Confederations of 16 July 1984 (document No. 5).
(6) Bill known as the Act to create the Collective Bargaining Commission for the Public Sector (letter of 27 October 1983 from the Ministry of Labour and Social Security to the Legislative Assembly) (document No. 6).
(7) Complete reform of the part of the Labour Code relating to collective rights, 1982 (document No. 7).
(8) Act respecting solidarity associations (document No. 8).
(9) Act for the financial equilibrium of the public sector (Emergency Act), No. 6955 of 24 February 1984 (document No. 9).
(10) Circulars issued by the Ministry of the Presidency (circular addressed to Ministers and Executive Chairmen of Autonomous Institutions respecting strikes in the public sector) (document No. 10).
(11) Judicial (penal) sentences on trade union leaders (leaders of the Trade Union of the National Bank of Costa Rica) (document No. 12).
(12) Minutes of Session No. 135 of the Government Council of 2 October 1980, which contain directives of the President of the Republic concerning collective bargaining in the public sector (document No. 13).
B. Documentary evidence and texts invoked in the representation which were not communicated to the Office:
(13) Letter of intent and/or agreement between the Government of Costa Rica and the IMF, dated December 1982 (point 3 of the section "Documentary evidence" of the representation) (see under document marked No. 3).
(14) Circulars C-226-82 and C-078-83 respecting collective bargaining (rulings of the Attorney-General's Department of the Republic (point 11 of the description of facts in the representation)).
(15) Agreements signed between the Government of Costa Rica and the Democratic Workers Front (point 5 of the section "Documentary evidence" of the representation).
(16) Administrative decisions against trade union leaders (point 13 of the section "Documentary evidence").
(17) Circular No. 630-OM of August 1983, issued by the Ministry of Agriculture and Stockraising (point 15 of the section "Documentary evidence").
(18) Letters sent by different groups of workers (point 8 of the description of facts in the representation) in connection with the first agreement with the IMF.
N.B. A number of these documents (for example, Nos. 5, 6, 8, 10, 11, 12, 14 and 16) appear to concern freedom of association questions, and have been transmitted to the Committee on Freedom of Association.
Endnote 1
Document GB.227/8/13.
Endnote 2
Convention No. 11, ratified on 16.09.1963;
Convention No. 81, ratified on 02.06.1960;
Convention No. 87, ratified on 02.06.1960;
Convention No. 95, ratified on 02.06.1960;
Convention No. 98, ratified on 02.06.1960;
Convention No. 102, ratified on 16.03.1972;
Convention No. 122, ratified on 27.01.1966;
Convention No. 127, ratified on 16.03.1972;
Convention No. 130, ratified on 16.03.1972;
Convention No. 131, ratified on 08.06.1979;
Convention No. 135, ratified on 07.12.1977;
Convention No. 138, ratified on 11.06.1976;
Convention No. 144, ratified on 29.07.1981.
Endnote 3
See Official Bulletin, Vol. LXIV, 1981, Series A, No. 1, pp. 93-95.
Endnote 4
GB.227/PV(Priv.)(Rev.), p. III/2.
Endnote 5
This report was received in the Office on 31 January 1985; it will be examined by the Committee of Experts at its March 1986 meeting.
Endnote 6
According to this report, unemployment trends during the period 1976-83 were as follows:
Unemployment
rates 1976 1977 1978 1979 1980 1981 1982 1983
Overall unemployment
rate 13.2 11.2 10.9 12.5 13.5 17.4 23.7 19.9
Open unemployment
rate 6.3 4.6 4.6 4.9 5.9 8.7 9.4 9.0
Visible under-
employment
rate 2.8 2.9 3.1 4.7 4.6 5.8 6.9 6.2
(persons working
less than 47 hours
per week)
Invisible under-
employment
rate* 4.1 3.7 3.2 2.9 3.0 2.9 7.4 4.7
* The report indicates that invisible underemployment concerns persons working 47 hours or more per week but not receiving the established minimum wage. The Committee refers in this regard to its conclusions relating to Convention No. 131 (paragraph 46, footnote 1, of this report).
Endnote 7
Paragraph 2 of the letter refers to the fact that "during the second half of 1982 the Government of Costa Rica embarked on a series of adjustment measures which provided the basis for a successful stabilisation of the economy during 1983".
Endnote 8
In paragraph 2 of the "letter of intent" of 1984 it is said that the Fund approved a contingency settlement for one year in December 1982.
Endnote 9
The Committee of Experts could not examine the detailed report on Convention No. 102 at its March 1985 meeting because of its late receipt; this report, which will be examined in March 1986, states that pensions are revalued periodically, usually every eight months.
Endnote 10
These provisions read as follows:
Article 3
The elements to be taken into consideration in determining the level of minimum wages shall, so far as possible and appropriate in relation to national practice and conditions, include:
(a) 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;
(b) economic factors, including the requirements of economic development, levels of productivity and the desirability of attaining and maintaining a high level of employment.
Article 4
1. Each Member which ratifies this Convention shall create and/or maintain machinery adapted to national conditions and requirements whereby minimum wages for groups of wage earners covered in pursuance of Article 1 thereof can be fixed and adjusted from time to time.
Endnote 11
The Committee notes that the Committee of Experts on the Application of Conventions and Recommendations, at its March 1985 meeting, requested information on the minimum wage rates in force during the period covered by the next report.
The Committee also recalls its remarks concerning the wages paid to persons affected by invisible underemployment (see paragraph 22 above, footnote 1). It considers that information should be supplied by the Government on the situation of those persons and of their employment in relation to the established minimum wage rates, so as to enable the Committee of Experts to assess the application of the minimum wage system in force.
Endnote 12
The Committee also recalls that under the terms of Article 2, paragraph 2, of Convention No. 131, while minimum wages shall have the force of law and shall not be subject to abatement "the freedom of collective bargaining shall be fully respected". Pursuant to the decision of the Governing Body (see para. 8(e) of this report) the Committee wishes to refer in this connection to the conclusions of the Committee on Freedom of Association in paragraphs 87 to 90 of its report on Case No. 1304 concerning Costa Rica (document GB.230/11/13).