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- U.S. DEPARTMENT OF STATE
- COSTA RICA: 1994 COUNTRY REPORT ON ECONOMIC POLICY AND TRADE PRACTICES
- BUREAU OF ECONOMIC AND BUSINESS AFFAIRS
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- Costa Rican law restricts the right of public sector workers
- to strike, but two articles of the Penal Code that mandated tough
- punishment for striking government workers were repealed in 1993.
- There are no restrictions on the rights of private workers to
- strike, but the Labor Code contains clauses that employers have
- used to fire employees who try to organize or strike. Very few
- private sector workers are union members.
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- b. The Right to Organize and Bargain Collectively
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- The right to organize is protected by the Constitution.
- Specific provisions of the 1993 Labor Code reforms provide
- protection from dismissal for union organizers and members during
- the period of union formation. Previously, employers used a
- clause in the Labor Code, permitting employees to be discharged
- "at the will of the employer" provided the employee received
- severance benefits. The payment of severance benefits to
- dismissed workers has often been circumvented in practice.
- Public sector workers cannot engage in collective bargaining
- because the Public Administration Act of 1978 makes labor laws
- inapplicable in relations between the Government and its
- employees. Collective bargaining is allowed in the private
- sector but, due to the dearth of unions, is not a widespread
- practice.
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- c. Prohibition of Forced or Compulsory Labor
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- The Constitution prohibits forced or compulsory labor, and
- there are no known instances of either.
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- d. Minimum Age of Employment of Children
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- The Constitution provides special employment protection for
- women and minors and establishes the minimum working age at 12
- years, with special regulations in force for workers under 15. A
- child welfare agency, in cooperation with the Labor Ministry, is
- responsible for enforcement. Enforcement in the formal sector is
- reasonably effective. Nonetheless, child labor appears to be an
- integral part of the large informal economy, although data on
- this is lacking.
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- e. Acceptable Conditions of Work
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- The Constitution provides the right to a minimum wage. A
- National Wage Board sets minimum wage and salary levels for all
- sectors. The monthly minimum wage ranges from USD 115 for
- domestic servants to USD 557 for certain professionals. Public
- sector negotiations normally follow the settlement of private
- sector negotiations. In addition, the Constitution sets the
- workday hours, remuneration for overtime, days of rest, and
- annual vacation rights. Maximum work hours are eight during the
- day and six at night, up to weekly totals of 48 and 36 hours,
- respectively. Ten-hour days are permitted for work not
- considered unhealthful or dangerous, but weekly totals may not
- exceed 48 hours. Nonagricultural workers receive an overtime
- premium of 50 percent of regular wages for work in excess of the
- daily work shift. Agricultural workers are not paid overtime,
- however, if they work beyond their normal hours voluntarily. A
- 1967 law governs health and safety at the workplace, but there
- are too few labor inspectors, especially outside of the San Jose
- metropolitan area, to ensure that minimum conditions of safety
- and sanitation are maintained.
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- f. Rights in Sectors with U.S. Investment
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- Generally, in industries with significant U.S. investment
- (primarily food and related products and other manufacturing),
- respect for worker rights is good. This holds for those plants
- and operations under U.S. management and capital and does not
- necessarily hold for the industry as a whole. Outside of these
- U.S. companies, working conditions and respect for worker rights
- vary enormously, often to the detriment of workers seeking to
- organize trade unions.
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- Extent of U.S. Investment in Selected Industries.--U.S. Direct
- Investment Position Abroad on an Historical Cost Basis--1993
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- (Millions of U.S. dollars)
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- Category Amount
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- Petroleum 2
- Total Manufacturing 339
- Food & Kindred Products 134
- Chemicals and Allied Products 97
- Metals, Primary & Fabricated 21
- Machinery, except Electrical 0
- Electric & Electronic Equipment 35
- Transportation Equipment 0
- Other Manufacturing 53
- Wholesale Trade 67
- Banking 0
- Finance/Insurance/Real Estate 0
- Services 6
- Other Industries -30
- TOTAL ALL INDUSTRIES 385
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- Source: U.S. Department of Commerce, Bureau of Economic Analysis
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