Introduction

1. In accordance with article 19 of the Constitution of the ILO, the Governing Body decided at its 244th Session (November 1989), to request States which have not ratified them to furnish reports on the Minimum Wage-Fixing Machinery Convention, 1928 (No. 26), the Minimum Wage-Fixing Machinery (Agriculture) Convention, 1951 (No. 99), and the Minimum Wage Fixing Convention, 1970 (No. 131), and to request all member States to furnish reports on the Minimum Wage-Fixing Machinery Recommendation, 1928 (No. 30), the Minimum Wage-Fixing Machinery (Agriculture) Recommendation, 1951 (No. 89), and the Minimum Wage Fixing Recommendation, 1970 (No. 135).

2. On the basis of these reports and of those submitted in accordance with articles 22 and 35 of the Constitution by States which have ratified some or all of the above-mentioned Conventions, the Committee of Experts was able, in accordance with its usual practice, to make a general survey of the situation in respect of national law and practice.

3. This is the second time the Committee has undertaken a general survey of the minimum wage fixing instruments. (Endnote 1) Nevertheless, it must be emphasised that minimum wages have been the subject of close attention since the beginnings of the International Labour Organisation.

I. Historical development of the international labour standards on minimum wages

4. From the earliest days, the founding Members of the International Labour Organisation considered that one of the aspects that should be the subject of regulations on conditions of work was a wage that secured workers "a reasonable standard of life as this is understood in their time and country", thus responding to the concern expressed by those member States which had signed the Peace Treaty of Versailles and considered that there was an urgent need to improve conditions of work, inter alia, by "the provision of an adequate living wage". (Endnote 2) These principles were set out in both the Preamble to Part XIII of the Peace Treaty and in Article 427 thereof; this Part was to become the Constitution of the ILO, and later on was included in the Preamble to the current Constitution as well as in article 41 of the ILO Constitution as it was adopted in 1946.

5. In 1921, in application of this principle, the Governing Body instructed the International Labour Office to carry out an inquiry into existing systems of minimum wage fixing, especially in industries in which the employers or workers were unorganised or insufficiently organised. The results of this inquiry enabled the Governing Body to consider that this subject could usefully be examined by the Conference. (Endnote 3) The matter was discussed at the Tenth and Eleventh Sessions of the Conference, in 1928 and 1929, resulting in the adoption of the Minimum Wage-Fixing Machinery Convention (No. 26) and Recommendation (No. 30).

6. Subsequently, in 1944, the International Labour Conference reaffirmed its concern over workers' wages. The Declaration concerning the aims and purposes of the International Labour Organisation, known as the Declaration of Philadelphia, states, inter alia, that "the Conference recognises the solemn obligation of the International Labour Organisation to further among the nations of the world programmes which will achieve: ... a minimum living wage (for) all employed and in need of such protection."

7. In 1948, as a result of the resolutions adopted by the Permanent Agricultural Committee (in 1938 and 1947), the Governing Body decided, at its 107th Session (December 1948), to include in the agenda of the Conference in 1950 the subject of minimum wage fixing in agriculture. Following the relevant discussions, 1951 saw the adoption of the Minimum Wage-Fixing Machinery (Agriculture) Convention (No. 99) and Recommendation (No. 89). The adoption of these instruments filled the gap that had been left by Convention No. 26 and Recommendation No. 30.

8. On the basis of the recommendations of the Meeting of Experts (Endnote 4) convened by the Governing Body at its 168th and 169th Sessions (February-March 1967 and June 1967, respectively), the Governing Body decided, at its 170th Session (November 1967), to include in the agenda of the International Labour Conference an item on minimum wage fixing machinery and related problems, with special reference to developing countries. As a result of the discussions which took place during the 53rd and 54th Sessions of the Conference, in 1970 the Minimum Wage Fixing Convention (No. 131) and Recommendation (No. 135) were adopted.

9. There are also other ILO instruments that refer to minimum wages. Among them special mention should be made of the Social Policy (Basic Aims and Standards) Convention, 1962 (No. 117). In addition, throughout the ILO's standard-setting activities, the International Labour Conference has adopted other standards directly related to minimum wages; among these, as examples, mention should be made of the Labour Clauses (Public Contracts) Convention (No. 94) and Recommendation (No. 84) of 1949, the Protection of Wages Convention (No. 95) and Recommendation (No. 85), of 1949, the Equal Remuneration Convention (No. 100) and Recommendation (No. 90), of 1951 and the Employment Promotion and Protection against Unemployment Convention (No. 168) and Recommendation (No. 176) of 1988.

10. The International Labour Conference has on various occasions adopted resolutions which refer directly or indirectly to minimum wages. Apart from the resolutions adopted between 1945 and 1949, to which the Committee referred in its previous survey, (Endnote 5) the Conference has adopted other resolutions on the subject. Mention may be made, in particular, of the resolution concerning the relations between international trade and employment; (Endnote 6) the resolution concerning the convocation by the ILO of a tripartite World Conference on Employment, Income Distribution, Social Progress and the International Division of Labour; (Endnote 7) the resolution concerning industrialisation, the guarantee of employment and the protection of the incomes of workers, (Endnote 8) the resolution concerning development, foreign debt and the social objectives of the ILO; (Endnote 9) the resolution concerning rural employment promotion; (Endnote 10) and the resolution concerning structural adjustment, industrial relations and economic and social development. (Endnote 11)

11. The regional conferences too have adopted resolutions concerned directly or indirectly with minimum wages. Apart from those already mentioned by the Committee in its previous survey, (Endnote 12) mention should be made of a resolution adopted by the Seventh African Regional Conference: resolution concerning economic development and social progress in Africa, (Endnote 13) the resolutions adopted by the Tenth and Twelfth Conferences of American States Members of the International Labour Organisation: resolution concerning social development and employment in the Americas; (Endnote 14) and the resolution concerning growth, development and foreign debt; (Endnote 15) the resolution and conclusions adopted by the Tenth and Eleventh Asian Regional Conferences: resolution concerning action of the International Labour Organisation in respect of restrictive trade policies and their effects on employment; and conclusions on growth and structural adjustment. (Endnote 16) Furthermore, minimum wages have also been the subject of a series of conclusions or resolutions adopted by Industrial Committees, joint committees or technical meetings. (Endnote 17)

12. The International Labour Organisation has been dealing in recent years with the problem of minimum wages in so far as the issue is closely linked with the aspects of employment policy that are related to the problem of foreign debt and the achievement of the social aims of the ILO, as well as with the problem of structural adjustment and its connection with the protection of workers' rights -- first of all, the protection of a minimum income for them. (Endnote 18)

II. Minimum wages and other international standards

13. The ILO has not, however, been the only international body to concern itself with the question of minimum wages. The United Nations Organisation has dealt with the question on a number of occasions. This is reflected in the provisions contained in the international instruments it has adopted over the years. Mention may be made of the Universal Declaration of Human Rights, (Endnote 19) which provides, in Article 23, paragraph 3, that "Everyone who works has the right to just and favourable remuneration ensuring for himself and his family an existence worthy of human dignity ...". Article 7 of the International Covenant on Economic, Social and Cultural Rights (Endnote 20) makes provision for the right to "remuneration which provides all workers, as a minimum, with ... a decent living for themselves and their families in accordance with the provisions of the present Covenant".

14. Legal instruments adopted by regional organisations also refer directly or indirectly to minimum wages. For example, Article XIV of the American Declaration of the Rights and Duties of Man (Endnote 21) provides that "Every person who works has the right to receive such remuneration as will, in proportion to his capacity and skill, assure him a standard of living suitable for himself and for his family." The African Charter on Human and Peoples' Rights (Endnote 22) establishes in Article 15 the right of every individual to work under equitable and satisfactory conditions and to receive equal pay for equal work. Lastly, the European Social Charter (Endnote 23) states that the Contracting Parties accept as the aim of their policy, to be pursued by all appropriate means, the attainment of conditions propitious to the effective realisation of a number of rights and principles, including the right of all workers to a fair remuneration sufficient for a decent standard of living for themselves and their families. (Endnote 24) The right to a minimum wage is thus recognised by these instruments as a human right.

III. Practical activities of the ILO

15. The ILO has undertaken a series of programmes aimed at helping countries to implement the instruments examined in this survey or to reinforce existing machinery. To this end the ILO, at the request of the countries concerned, has prepared a series of studies on wage policies or on minimum wage fixing machinery, frequently including draft legislative texts. These studies -- and only those postdating the adoption of Convention No. 131 are mentioned -- have been undertaken for Angola (1989); Bangladesh (1977); Botswana (1982); Guinea (1987); Honduras (1979); Indonesia (1977 and 1980); Malawi (1987); Mauritius (1986); Mauritania (1984); Philippines (1987); and Tunisia (1985).

16. The ILO has also assisted and supported a number of seminars, symposia or meetings whose main aim was to discuss minimum wage questions, and others devoted to wider subjects but including that of minimum wages. (Endnote 25)

17. In addition, the ILO has undertaken a number of studies on minimum wages at the national, regional or international level which have been published. (Endnote 26)

IV. State of ratification of the Conventions

18. As at 25 March 1992, Convention No. 26, which came into force on 14 June 1930, has received 98 ratifications. Convention No. 99, which came into force on 23 August 1953, has been ratified by 49 countries. Convention No. 131, which came into force on 29 April 1972, has been ratified by 34 States. The list of States which have ratified the various Conventions under consideration is given in Appendix II to this survey.

V. Denunciation

19. One State, the United Kingdom, denounced Convention No. 26 on 25 July 1985. In its report under article 19 of the ILO Constitution, the Government of the United Kingdom stated that its concern was to maximise employment opportunities, particularly for young people, and that flexibility and freedom of action were essential in this field. The terms of Convention No. 26 were said to restrict flexibility in this area of vital public concern and, accordingly, its provisions were no longer appropriate. The Trades Union Congress (TUC) stated, in a letter dated 5 November 1985 to the Director-General of the ILO, that it had suggested to the Government in a meeting and through other direct representations that the system of wages councils might be reviewed to achieve change as long as essential measures of social protection were preserved. The TUC was deeply concerned about the damage being done by the Government to the authority of the ILO and to international labour standards concerning working conditions and employment generally by its third denunciation in the face of the strong opposition of the trade union movement. It added that the action of the Government would result in an increase in the number of hours worked by employees without overtime payment when the regulation by wages councils was removed, with the result that no additional jobs would be created. The TUC concluded by stating that in its view it had not been fully consulted by the Government of the United Kingdom despite the fact that the Government had been asked to do so by the Governing Body at its 148th Session. These problems led the Trades Union Congress to publish a booklet on the matter. (Endnote 27)

VI. Available information

20. The reports received on the application of Conventions Nos. 26, 99 and 131, communicated both by the States that have ratified them and by those which have not done so, (Endnote 28) as well as on Recommendations Nos. 30, 89 and 135, (Endnote 29) yielded information on 116 countries and 18 non-metropolitan territories. Appendix III gives details of the reports received.

21. The Committee was also able to examine the comments made by employers' and workers' organisations (Endnote 30) concerning the instruments under consideration. These observations were in most cases forwarded by the governments together with their reports.

22. The Committee notes that a series of political, social and economic events and changes have recently taken place in many of the European countries with planned economies. These changes are taking these countries towards a market economy, which, according to the information communicated by the governments concerned, is bringing about major changes in their law and practice. Nevertheless, in examining the information communicated by the governments of these countries, the Committee has often noted that it is unclear whether these amendments have already been adopted or whether they are still in the process of adoption. In referring to the information which it has examined, the Committee has therefore followed the indications of the government concerned, citing the legislation which it has been possible to consult and where necessary remarking that it is unknown whether or not this legislation is still in force. The Committee takes this opportunity to urge the governments concerned to furnish as soon as possible any legislative texts that may have been adopted as a consequence of the current changes, or amended texts, with information respecting the new practices.

23. The Committee is gratified to note the large number of governments that reported on the instruments under study. At the same time, however, it should be stated that many of the reports furnished by governments do not contain the detailed information that might have been expected. The Committee has attempted to overcome these shortcomings but deems it appropriate to emphasise that governments should make greater efforts to communicate the information requested. Only in this way can the Committee comply as fully as possible with its mandate, having as broad a view as possible which, in the long term, will surely be of value to all those for whom this survey is intended.

VII. Plan of the survey

24. In Chapter I the Committee has outlined a series of concepts used in the instruments under consideration as well as certain principles derived from the text of these instruments, from the preparatory studies that preceded them or from the preliminary discussions that took place during the sessions of the Conference at which they were adopted. The definition of these concepts was necessary as they will be used throughout the survey. Nevertheless, other concepts are defined in the relevant chapter or chapters when this is deemed necessary. Chapter II seeks to give as detailed a description as possible, though at the same time a succinct one, of the various types of minimum wage fixing machinery that exist in the countries for which information was obtained. The description of this machinery is based on the information supplied by governments and on the provisions of the legal texts in force including those cases where, according to the governments, there is a discrepancy between the existing legal texts and actual practice. It is made clear when the machinery described is not in force or has not been operating for some time, either when the government has mentioned it or because an organisation of employers or workers has reported it. The same chapter describes, in accordance with the information available to the Committee, the coverage of the wage-fixing machinery and the categories of workers to whom the minimum wages apply.

25. Chapter III analyses the systems for consulting organisations of employers and workers in the process of establishing the machinery, defining its scope and fixing or adjusting minimum wages. The Committee has made as detailed an analysis as possible of this matter in view of the importance for the ILO of consulting the social partners, as is fully recognised in the instruments under consideration. Chapter IV describes the criteria followed in fixing and adjusting minimum wages and the time and frequency of the adjustments and investigations, surveys and statistics used for the purpose. The complexity of the various elements that have to be taken into account and the frequent mention by governments in their reports of the economic difficulties they are facing and which have repercussions on the fixing or adjustment of minimum wages, led the Committee to devote a certain number of paragraphs to the problems arising out of structural adjustment and affecting the application of the instruments under consideration. Chapter V analyses the machinery provided for in the instruments under consideration in order to guarantee the effective application of minimum wages. Once again, and in the particular case of information connected with the relevant provisions of the Conventions and Recommendations in question, the Committee regrets not having had fuller information, especially on the situation in practice, so as to be able to consider the extent to which the provisions of the instruments are applied, for example as regards the real coverage of minimum wages.

26. The last chapter of the Survey (Chapter VI) is devoted to certain general observations which the Committee has thought it appropriate to make concerning the importance of the system of minimum wages, the prospects for further ratifications, the difficulties encountered by various countries in applying these Conventions, the scope and coverage of their provisions, consultation and participation of the social partners in the establishment and operations of the minimum wage fixing machinery, the elements to be taken into consideration in fixing minimum wages, the relation of the objectives of minimum wages to economic reforms, the effect of minimum wages on employment, and measures to ensure that minimum wages, when fixed, are actually paid by employers.

Endnotes

Endnote 2

Endnote 3

Endnote 4

Endnote 5

Endnote 6

Endnote 7

Endnote 8

Endnote 9

Endnote 10

Endnote 11

Endnote 12

Endnote 13

Endnote 14

Endnote 15

Endnote 16

Endnote 17

Endnote 18

Endnote 19

Endnote 20

Endnote 21

Endnote 22

Endnote 23

Endnote 24

Endnote 26

Endnote 27

Endnote 28

Endnote 29

Endnote 30

Cross references
CONSTITUTION:Preamble
Constitution: Article 19
Constitution: Article 22
Constitution: Article 35
Constitution: Article 41
Conventions: C094 Labour Clauses Public Contracts) Convention, 1949
Conventions: C095 Protection of Wages Convention, 1949
Conventions: C100 Equal Remuneration Convention, 1951
Conventions: C117 Social Policy (Basic Aims and Standards) Convention, 1962
Conventions: C168 Employment Promotion and Protection against Unemployment Convention, 1988
Recommendations:R084 Labour Clauses (Public Contracts) Recommendation, 1949
Recommendations:R085 Protection of Wages Recommendation, 1949
Recommendations:R090 Equal Remuneration Recommendation, 1951
Recommendations:R176 Employment Promotion and Protection against Unemployment Recommendation, 1988