THE 2.3. Promotional Measures CONTENT Introduction. AnoverviewofPeru:Generaldatarelatedtoitslabourpolicyandeconomy. TheEmploymentConventions(C122,C88,C181,C87andC98)reflectedonthelegal
THE PRINCIPLES OF THE EMPLOYMENT CONVENTIONS REFLECTED IN THE
LEGAL SYSTEM AND SOCIO-ECONOMIC POLICY OF PERU
2.3. Promotional Measures
system and socio-economic policy of Peru. Which are the major problems?
Recommendations and conclusion.
November 26th, 2017
Since 1919 there are International Labour Standards, created and maintained by the International
Labour Organization (ILO) with the aim of giving adequate support to countries to regulate their
labour policies and thus, to be more specific: “…, promoting opportunities for women and men to
obtain decent and productive work, in conditions of freedom, equity, security and dignity. In today’s
globalized economy, international labour standards are an essential component in the international
framework for ensuring that the growth of the global economy provides benefits to all.”1
In terms of labor policies, countries have evolved according to their legal systems, economic
growth, culture, among other factors; also, based on the impact of international standards
proposed by ILO.
Many of the affiliated countries have structured their labor policies according to the stipulations of
these international standards, but how are we sure that all this is fulfilled in detail in the labor
legislation of each country and who regulates it?.
In developed countries there are labor regimes that are executed with greater efficiency, order and
less informality, compared to labor legislation in developing countries. Some of these, despite
being members of the ILO since its creation and having accepted and ratified international labor
agreements, continue having shortcomings and also the regulation of the labor policies continues
representing a challenge for several reasons such as: corruption in the political and economic
system, informal work, violation of human rights, child labor, lack of state presence, among other
major factors.In the case of developing countries in South America, located in the Andean region
-Ecuador, Bolivia, Colombia, Venezuela and Peru- the ILO works with the governments, labour
organizations, public institutions and private companies of these countries, in order to give support
and ensure that their labor policies comply with providing decent work, freedom and always
respecting the rights of workers.
Nevertheless, despite these rules have been established, some of these countries do not follow
entirely these agreements due to the growth of informality in the labor world, the violation of the
rights of workers and the lack of state presence, follow up and coverage throughout the country.
Particularly, in the case of Peru, a country that is going to be analyzed in this document, has grown
economically in the last 15 years and it is more stable; but informality continues growing -especially
in the main economical sectors of production, mining and construction-. Which are the real
problems in terms of labor in this country? Which is the impact of ILS on the legal system and
social-economic policies of Peru? Who regulates the compliance of the ILS in Peru? These are the
questions that we are going to try to solve in this document and give a final recommendation.
1 1996-2017 International Labour Organization (ILO). Introduction to International Labour Standards.
AN OVERVIEW OF PERU: GENERAL DATA RELATED TO ITS LABOUR POLICY AND
Republic of Peru 2
Income per capita:
31 488 625 (2016).
Unitary semi-presidential representative democratic republic.
U.S. $ 6,027 (December 2015 in terms of PPA, BM).
75 years that goes down to 72 years for males and reaches 77 years
for women. (BM, 2014).
0.734 (post 84, Human Development Report 2014).
Peru is a multicultural country located in South America. The capital city is Lima and it has almost
one third of the entire population living in this region. Peru has 24 regions distributed on the coast,
mountains (Andean region) and the jungle.
The type of government is unitary semi-presidential representative democratic republic with a
multi-party system. It is important to mention that the president and his cabinet change every 5
Over the past decade, Peru has been one of the region’s fastest-growing economies, with an
average growth rate 5.9 percent in a context of low inflation (averaging 2.9 percent). A favorable
external environment, prudent macroeconomic policies and structural reforms in different
areas created a scenario of high growth and low inflation. The strong growth in employment
and income have sharply reduced poverty rates. Moderate poverty (US$4 a day 2005 PPP) fell
from 45.5 percent in 2005 to 19.3 percent in 2015. This is equivalent to 6.5 million people getting
out of poverty during this period. Extreme poverty (US$2.5 a day 2005 PPP) declined from 27.6
percent to 9 percent over the same period. 3
According to the Peruvian National Superintendency of Labor Inspection –Superintendencia
Nacional de Fiscalizacion Laboral (Sunafil)-, Peru is one of the countries with the most rigid
legislation in labor matters and hiring. But why informality is still a major problem in the labor
market?. Based on the data found in Sunafil, informal employment represents 70%; but within
formal enterprises there is more than 20% informality. That is, there are workers in companies
incorporated without employment contracts.4
Working informally implies that workers do not receive benefits such as Compensation for Time of
2 Summary on table 1 made from: 1996-2017 International Labour Organization (ILO). Source: http://www.ilo.org; and The
World Bank http://www.worldbank.org/en/country/peru
3 The World Bank in Peru. The World Bank. Source: https://data.worldbank.org/country/peru
4 National Superintendency of Labor Inspection in Peru. Source: https://www.sunafil.gob.pe
Service (CTS), bonuses, much less have access to social protection, pension or health. The
scarce creation of formal jobs by the State and the high competitiveness of the private sector,
would be the result of labor informality according to the Organization for Economic Cooperation
and Development (OECD).
Reported in the profile of Peru on ILO, the country has the following data related to the labor force,
summarized on table 25:
Rate of participation in the labor force (%)
Rate of participation in the labor force, men (%)
Rate of participation in the labor force, women (%)
Rate of working poor (%)
Unemployment rate (%)
Unemployment rate, men (%)
Unemployment rate, women (%)
Juvenile rate of participation in the labor force (%)
Juvenile unemployment rate (%)
Proportion of employees who work more than 48 hours per week (%)
Gender wage gap (%)
Public social protection expenditure all functions as a percentage of GDP (%)
Unionization rate (%)
THE EMPLOYMENT CONVENTIONS REFLECTED ON THE LEGAL SYSTEM AND SOCIO-
ECONOMIC POLICY OF PERU – WHICH ARE THE MAJOR PROBLEMS?
Peru has been a member of the ILO since 1919. It has ratified 74 agreements (67 currently in force),
among which are the 8 fundamental agreements.6 The following Employment Conventions: C122,
C88, C181, C87 and C98, are reflected in the labor legislation, but actually the country faces many
challenges reflected in the aforementioned figures and in the following examples and data founded
in past studies.
The Employment Convention C122 refers to stimulate economic growth based on full, productive
and freely chosen employment. In summary, this policy has to be aimed at ensuring that: there is
work for all who are available for and seeking work; such work is as productive as possible; there is
freedom of choice of employment and opportunity for each worker to qualify for, and to use her or
his skills and endowments in, a job for which she or he is well suited, irrespective of race, color, sex,
religion, political opinion, national extraction or social origin.7
5 ILO. Profile of the Country. Summary on table 2.
6 Idem 5.
7 International Labour Organization (ILO), 1964. Employment Policy Convention (No. 122) (Geneva). And the accompanying
Recommendation R122. Available at: Convention 122
In Peru, the stipulations of this convention are fullfilled, but not 100%. According to a study carried
out in 2012 by the Peruvian Consortium of Economic and Social Research -Consorcio de
Investigacio?n Econo?mica y Social (CIES)- there are three factors of frequent discrimination in the
labor market of Lima, the capital city: gender, appearance and the origin of surnames.
Thus, a person considered more good looking or friendly has the option to receive a salary 17%
higher than who is not. The research analyzed five thousand curriculum sent in 19 weeks. In the
case of white candidates, the most marked gap occurs in professional jobs, for which men receive
50% more calls than women. This reflects that in the Peruvian labor market, there is still
discrimination which means that the C122 convention is not fully complied with.
The Employment Convention C88 refers to the organization of the Employment Service. This means
that: The essential duty of the employment service shall be to ensure, in co-operation where
necessary with other public and private bodies concerned, the best possible organization of the
employment market as an integral part of the national program for the achievement and
maintenance of full employment and the development and use of productive resources.8 In the other
hand, the Employment Convention C181 refers to the recognition of the role which private
employment agencies may play in a well-functioning labor market, and the need to protect workers
against risks of abuses.
Following the two conventions mentioned before, on this area, in the Peruvian employment service
system does not exist as is known in developed countries. This means that citizens who need a job
should seek to find it by their own. They can use job portals on the internet (of private job agencies,
state portals or from private companies), private employment agencies that offer the service of
finding a job with very high costs, personal references of relatives or friends working in a company;
but they can not place their trust in the employment agencies of the state because normally the
positions offered to work in public positions, are places already covered by internal referrals. This
means that in the contests for job positions in public positions there is corruption.
The Employment Convention C87 refers to the freedom of Association and Protection of the Right to
Organize and Convention C98 refers to the right to Organize and Collective Bargaining. Although, in
the data presented in the Table 2, the Unit-ionization rate (%) in 2012 was 4,2% of the total rate of
participation in the labor force. The Peruvian National Superintendency of Labor Inspection –
Superintendencia Nacional de Fiscalizacion Laboral (Sunafil) is the public institution responsible for
promoting, supervising and supervising compliance with the socio-labor legal order and
occupational safety and health, as well as providing technical advice, conducting research and
proposing the issuance of standards on these matters. This public institution defends the free
creation of workers unions and give support to them in case of violation of the workers rights and
8 International Labour Organization (ILO), 1948. Employment Service Convention (No. 88) (Geneva). And the
accompanying Recommendation R88. Available at: Convention 88
other situations of risk between the employer-employee relation.
In reference to other labor conventions, the Peruvian labor system tries to comply with most
stipulations; however, there are still many shortcomings and lack of coverage by the government in
Lima and with greater demand in other regions of the country. Many people in other regions do not
even know their fundamental rights, let alone their labor rights. This is how families continue to grow
in a vicious circle of lack of education among other factors. The centralization of resources in a
single area of the country creates inequality of opportunities and lack of development and growth.
RECOMMENDATIONS AND CONCLUSION
• The population and social actors need to be informed especially on the fundamental
principles and rights at work. Also, the identification and dissemination of good practices in
each of the principles and fundamental rights it is crucial to generate an impact. The
dissemination should be aimed at generating positive information that aimed awareness
among public opinion about the importance of the principle or right, the possibility of its
concrete application and the mechanisms for its demand.
• The presence of the state through its regional bodies in other areas of the country, should
be monitored with the aim of improving the quality of services for the citizen.
• Compliance with the Fundamental Principles and Rights contained in the Declaration of the
ILO does not depend only on the ratification of the agreements nor of its legislative
reception of a rule on the subject, but of its verification in practice. It is important to define a
methodology of monitoring and evolution of its application that can be contrasted in a
uniform way by the different social actors.
The ilo has a clear vision for the development and optimum growth of a country based on
international labor standards that could create a fair labor market for employer and employee. This
international organization tries to give support to the nations; However, each country has a different
economic and political system, different cultures and ways of applying and regulating labor
legislation in different ways. In spite of having solid recommendations available to generate equity
in a society, each country has its shortcomings and difficulties.
1996-2017 International Labour Organization (ILO). Introduction to International Labour
Standards; and Profile of the Country.
The World Bank in Peru. The World Bank.
National Superintendency of Labor Inspection in Peru.
Integracion Regional, Libre Comercio y Derechos Laborales (Regional Integration, Free
Trade and Labor Rights). Report of the National Tripartite Workshop. Project Principles
and Rights at Work in the context of the XIII Inter-American Conference of Ministers of
Labor of the OAS. Lima Peru?, 8 y 9 of December of 2004.
International Labour Organization (ILO), 1964. Employment Policy Convention (No. 122)
(Geneva). And the accompanying Recommendation R122. Available at: Convention 122
International Labour Organization (ILO), 1948. Employment Service Convention (No. 88)
(Geneva). And the accompanying Recommendation R88. Available at: Convention 88
International Labour Organization (ILO), 1997. Private Employment Agencies
Convention (No. 181) (Geneva). Available at: Convention 181
• International Labour Organization (ILO), 1948. Freedom of Association and Protection
of the Right to Organise Convention (No. 87) (Geneva). Available at: Convention 87
• International Labour Organization (ILO), 1949. Right to Organise and Collective
Bargaining Convention (No. 98) (Geneva). Available at: Convention 98