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TITLE: ECUADOR HUMAN RIGHTS PRACTICES, 1994
AUTHOR: U.S. DEPARTMENT OF STATE
DATE: FEBRUARY 1995
Section 6 Worker Rights
a. The Right of Association
The Constitution and Labor Code provide most workers the right
to form trade unions. However, public security and military
officials and public sector employees in nonrevenue earning
entities are not free to form trade unions. The 1991 labor
code reforms raised the number of workers required for an
establishment to be unionized from 15 to 30, which the
International Labor Organization (ILO) Committee on Freedom of
Association (CFA) considered too stringent a limitation at the
plant workers council level.
While employees of stated-owned organizations enjoy rights
similar to those of the private sector, the law technically
prevents the majority of public sector employees from joining
unions or exercising collective bargaining rights.
Nevertheless, most public employees maintain membership in some
labor organization, and there are frequent "illegal" strikes.
Despite official threats, the Government rarely takes action
against striking public workers.
Approximately 8 to 9 percent of the work force is organized.
There are four large labor centrals or confederations, three of
which maintain international affiliation. None of the main
labor centrals is firmly connected to any one political party,
and there are no ties between the Government and any labor
union.
There are few restrictions on workers' right to strike,
although a 20-day cooling-off period is required before
declaring a strike. The 1991 labor code revisions limit
solidarity strikes or boycotts to 3 days, provided that they
are approved by the Labor Ministry. In a legal strike, workers
may take possession of the factory or workplace, thus ending
production at the site, and receive police protection during
the takeover. The employer must pay all salaries and benefits
during a legal strike; the Labor Code protects strikers and
their leaders from retaliation. The only significant strike in
1994 was at the Aztra sugar refinery. Workers closed down the
plant to protest the sale of the company as part of the
Government's modernization program. As noted in Section 1.a.,
police killed one Aztra worker during street demonstrations
related to the strike.
b. The Right to Organize and Bargain Collectively
Ecuador has a highly segmented labor market with a minority of
workers in skilled, usually unionized, positions in state-run
enterprises or in medium to large industries. Most of the
economically active population is employed in either the
agricultural sector or the urban informal sector; the vast
majority of these workers are not organized. The Labor Code
requires that all private employers with 30 or more workers
belonging to a union must negotiate collectively when the union
so requests.
The new labor law streamlined the bargaining process in state
enterprises by requiring workers to be represented by one labor
union only. It prohibits discrimination against unions and
requires that employers provide space for union activities upon
the union's request. The law does not permit employers to
dismiss a worker without the express permission of the Ministry
of Labor, rulings which are not subject to judicial review. If
the Ministry of Labor rules a dismissal as unjustified, it can
require the employer to pay large indemnities or separation
payments to the worker, although the reforms set a cap on such
payments. The Labor Code provides for resolution of labor
conflicts through an arbitration and conciliation board
comprised of one representative of the Ministry of Labor, two
from the union, and two representatives of management.
The Maquila (in bond) Law passed in 1990 permits the hiring of
temporary workers for the maquila industries only. While there
is no express prohibition on association rights in the Maquila
Law, in practice it is difficult to organize temporary
employees on short-term contracts. Because the labor law does
not consider the concept of the temporary worker, they do not
enjoy the level of protection offered by the Labor Code. The
maquila system allows a company and its property to become an
export processing zone wherever it is located. Many such
"zones" have thus been established; most are dedicated to
textiles and fish processing.
c. Prohibition of Forced or Compulsory Labor
The Constitution and the Labor Code prohibit compulsory labor
and there were no reports of it.
d. Minimum Age for Employment of Children
The law prohibits persons less than 14 years old from working,
except in special circumstances such as apprenticeships. It
requires those between the ages of 14 and 18 to have the
permission of their parent or guardian to work. The law
prohibits children between the ages of 15 and 18 from working
more than 7 hours per day or 35 hours per week, and it
restricts children below the age of 15 to a maximum of 6 hours
per day and 30 hours per week. In practice, the Ministry of
Labor is seriously lax in enforcement of child labor laws. In
rural areas many children attend school only sporadically after
about 10 years of age in order to contribute to household
income as farm laborers. In the city many children under age
14 work in family-owned "businesses" in the informal sector,
shining shoes, collecting and recycling garbage, or as street
peddlers.
e. Acceptable Conditions of Work
The Ministry of Labor has the principal role in enforcing labor
laws and carries this out with a corps of labor inspectors who
are active in all 21 provinces. The Labor Code provides for a
40-hour workweek, a 15-day annual vacation, a minimum wage, and
other variable employer-provided benefits, such as uniforms and
training opportunities.
The Ministry of Labor sets the minimum wage every 6 months in
consultation with the Commission on Salaries, but Congress may
also adjust it. Enforced by the Ministry of Labor, the basic
minimum wage is not adequate to provide a decent standard of
living for a worker and family. As of December, the minimum
wage plus mandated bonuses provided a gross monthly
compensation of approximately $120.50 (277,334 sucres). Most
organized workers in state industries and formal sector private
enterprises earned substantially more than the minimum wage and
also received significant other benefits through collective
bargaining agreements. The great majority of Ecuadorian labor,
however, works in the large informal sector without recourse to
the minimum wage or legally mandated benefits.
The Labor Code also provides for general protection of workers'
health and safety on the job. A worker may not leave the
workplace of his own volition, even if there is a hazardous
situation. The worker is allowed to request that an inspector
from the Ministry of Labor come to the workplace and confirm
the hazard; that inspector may then close down the workplace.
The Government enforces health and safety standards and
regulations through the Social Security Institute. In the
formal sector, occupational health and safety is not a major
problem. However, there are no specific regulations governing
health and safety standards in the agricultural sector and, in
practice, there is no enforcement of safety rules in the small
mines which make up the vast majority of the mining sector.
mines which make up the vast majority of the mining sector.