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Venezuela - Compensation & Benefit Legislation

CAPITAL

Caracas

 

CLIMATE

Tropical climate; hot and humid, while more moderate in the highlands.

 

LANGUAGES

Spanish (official), and numerous indigenous dialects.

 

LEGAL SYSTEM

Venezuela’s legal system is based on organic laws as of July 1999 and has an open, adversarial court system. Venezuela has not accepted compulsory ICJ jurisdiction.

 

CURRENCY

Venezuelan Bolivar (1 USD = 1,095.00 VEB as of June 1, 2002).

 

VENEZUELA - COST-OF-LIVING

ERI's Relocation Assessor is a recommended source for cost-of-living data.

 

VENEZUELA - EMBASSY/CONSULATES

U.S. Embassy at Caracas

Calle F con Calle Suapure

Urbanizacion Colinas de Valle Arriba

Caracas 1080

Venezuela

P.O. Box 62291

APO AA 34037

Caracas, Venezuela

Telephone: [58] (212) 975-6411

Fax: [58] (212) 975-8991

http://embajadausa.org.ve

 

Embassy of the Republic of Venezuela at Washington D.C.

1099 30th Street N.W.

Washington D.C. 20007

Telephone: (202) 342-2214

Fax: (202) 342-6820

http://www.embavenez-us.org/

 

 

VENEZUELA - HOLIDAYS

 

VENEZUELA – LEAVE

Maternity Leave: 18 weeks – 100% of pay (paid by social security).

 

VENEZUELA - MINIMUM AGE

The 1990 Labor Code allows children between the ages of 12 and 14 to work only if the National Institute for Minors or the Labor Ministry grants special permission. It states that children between the ages of 14 and 16 may not work without the permission of their legal guardians. Minors may not work in mines or smelting factories; in occupations that risk life or health, or could damage intellectual or moral development; or in public spectacles. The Constitution prohibits adolescents from working in jobs that will affect their development.

 

Those under 16 years of age may by law work no more than 6 hours per day or 30 hours per week. Minors under the age of 18 may work only between 6 a.m. and 7 p.m.

 

(Section 6.d. Acceptable Conditions of Work, Venezuela – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

VENEZUELA - MINIMUM REMUNERATION

The monthly minimum wage is 165,000 bolivars (approximately $220) in the private sector for urban workers, 150,000 bolivars ($200) for employees of small and medium-sized companies, and 148,500 bolivars ($198)for rural workers.

 

(Section 6.e. Acceptable Conditions of Work, Venezuela – Report of Human Rights Practices, 2001, U.S. Department of State.)

 

VENEZUELA - REMUNERATION

ERI's Geographic and Salary Assessors are recommended sources for international remuneration covering 189 countries.

 

VENEZUELA - REPORT OF HUMAN RIGHTS PRACTICES (2001, U.S. DEPARTMENT OF STATE)

Section 6 Worker Rights

 

a. The Right of Association

 

Both the Constitution and the 1990 Labor Code recognize and encourage the right of workers to organize; however, concerns over labor rights continued during the year. According to the Constitution, all workers, without prejudice or need of previous authorization, have the right to form freely unions that they believe can help them defend their rights and interests, as well as the right to join--or refrain from joining--these organizations. The existing comprehensive 1990 Labor Code extends the right to form and join unions of their choosing to all private and public sector employees, except members of the armed forces. The Constitution provides that labor organizations are not subject to intervention, suspension, or administrative dissolution, and workers are protected against any discrimination or measure contrary to this right. Labor organizers and leaders may not be removed from their positions during the period of time or under the conditions in which they exercise their leadership functions. However, Articles 23 and 95 of the Constitution, which provide for freedom of association, are contradicted by Article 293, which gives the National Electoral Council the authority to administer the labor confederations. During the year, the ILO's Committee on Freedom of Association recommended that the Government take measures to repeal or amend the trade union standards and decrees that are in violation of Conventions 87 and 98.

 

The ILO repeatedly expressed concerns that the 1990 Labor Code violates freedom of association by requiring a high number of workers (100 workers) to form self-employed workers' trade unions and a high number of employers to form employer trade unions (10 employers). The ILO also notes that the long and detailed list of duties assigned to workers' and employers' organizations and the requirement that foreign workers must be resident in the country for more than 10 years in order to hold trade union offices also violate the ILO Convention on Freedom of Association.

 

About 10 percent of the 10-million-member national labor force is unionized. One major union confederation (the CTV), three small union confederations, and a number of independent unions operate freely. The CTV represents most of the unionized workers and is especially strong in the public sector; its membership is approximately 800,000 workers. The CTV's top leadership includes members of several political parties, but the majority are affiliated with one of the traditional parties, Democratic Action or the Christian Democrats (COPEI). The CTV and the AD traditionally have influenced each other. The Bolivarian Workers Force (FBT), which was created to be a new labor confederation allied with the Chavez Government, is attempting to organize unions within the CTV and participated in the CTV internal elections.

 

In December 2000, after the Government held a public "workers referendum," the leaders of the CTV resigned and, during the year, elections were held to choose new union leaders.

 

In January an ILO delegation made the first of several trips to consult with the National Assembly on the development of a new labor law pursuant to the 1999 Constitution and also played an instrumental consultative role in overseeing the labor sector's multiunion dialog. This dialog on labor reform occurred among the country's unions, between independent organized labor and the Government, and between the Government and the ILO. The ILO also consulted regularly with government authorities on the labor reform process leading to individual union and federation leadership elections, and national-level CTV leadership elections. The CTV often accused the Government of interfering in its internal elections, and in March the ILO urged the Government to cease its harassment of the CTV, and to ensure that the authorities refrained from interference in the trade union electoral process. The ILO urged the Government to refrain from displaying favoritism with regard to the FBT and to abandon the idea of imposing trade union unity.

 

Throughout the year, the ILO also repeatedly expressed to the Government its objection to the 1999 Constitution's requirement that CNE administer labor leadership elections, which the ILO believes violates Convention 87 (freedom of association) of the ILO Charter. However, in practice CNE authorities took a broad interpretation of the requirement, allowing the individual union and federation elections to proceed uninterrupted under the authority of the CTV, and generally limiting its activities to an advisory role. Some 3,600 individual unions and 25 federations held their leadership elections between July and September. Although labor law pursuant to the 1999 Constitution remained pending at year's end, these elections marked a change from indirect to direct election of labor leaders. Despite accusations of fraud, the elections were held with few violent incidents, and most observers regarded this experiment in direct election of labor leaders as a success.

 

On October 23, the CTV held internal elections and on November 18, the CTV's electoral commission proclaimed Carlos Ortega the winner with about 57 percent of the vote. A number of independent monitors observed the elections; however, both sides lodged numerous protests of fraud. The Chavez Government, which had endorsed a FBT candidate, Artistobulo Isturiz, claimed that massive fraud had decided the election and refused to recognize Ortega as the winner; however, Ortega assumed the presidency of the CTV despite a threat by the Government to disqualify his election.

 

In March 2000, the National Legislative Committee (CLN) passed a decree that suspended collective bargaining in the petroleum and public sector for 180 days and suspended internal labor leadership elections for the same period of time. In March 2000, the CLN passed a decree that violated the Campesino Federation's right to associate freely by intervening in the federation's right to hold internal elections, embargoing federation property, and placing it in the custody of the national Ombudsman. The CNE eventually permitted elections, which were held in October.

 

The Labor Code mandates registration of unions with the Ministry of Labor, but it limits the Ministry's discretion by specifying that registration may not be denied if the proper documents (a record of the founding meeting, the statutes, and membership list) are submitted. Only a judge may dissolve a union, and only for reasons listed in the law, such as the dissolution of a firm by agreement of two-thirds of the membership.

 

The Constitution and the 1990 Labor Code recognize the right of all public and private sector workers to strike in accordance with conditions established by labor law. However, public servants may strike only if the strike does not cause "irreparable damage to the population or to institutions." Replacement workers are not permitted during legal strikes. The 1990 Labor Code allows the President to order public or private sector strikers back to work and to submit their dispute to arbitration if the strike "puts in immediate danger the lives or security of all or part of the population." During the year, most strikes were brief and occurred among government employees such as petroleum workers, health workers in public hospitals and clinics, firefighters, teachers, and transportation workers.

 

In March FEDEPETROL, the country's largest petroleum worker union called a 48-hour strike. According to international labor authorities, approximately 65 percent of the workers participated. Ministry of Labor officials declared the action illegal. The strike was called by union leaders to force the Government to provide petroleum workers an equivalent 15 percent wage increase that had been granted to all private sector employees in 2000. The Government negotiated a settlement agreeable to the union. In December the CTV and the main business organization organized a national work stoppage to protest the President's use of legislation by decree (see Section 3).

 

There are no restrictions on affiliation with international labor organizations, and many union organizations are active internationally; however, a November 2000 Supreme Court ruling regarding the legal rights of NGO's that receive funding from foreign sources has the potential to restrict the international affiliations of union organizers (see Section 2.b.).

 

b. The Right to Organize and Bargain Collectively

 

According to the Constitution, all public and private sector workers have the right to voluntary collective bargaining and to arrive at collective bargaining agreements, without any additional requirements other than those established by the law. The Constitution provides that the Government is to ensure development of collective bargaining and to establish conditions favorable to collective relationships and the resolution of labor conflicts. The 1990 Labor Code stipulates that employers must negotiate a collective contract with the union that represents the majority of their workers. The ILO repeatedly expressed concerns that this provision restricts freedom of association and in March 2000 requested that the Government amend it so that "in cases where no union organization represents an absolute majority of workers, minority organizations may jointly negotiate a collective agreement on behalf of their members." The code contains a provision stating that wages may be raised by administrative decree, provided that the legislature approves the decree.

 

The law also prohibits employers from interfering in the formation of unions or in their activities and from stipulating as a condition of employment that new workers must abstain from union activity or must join a specified union. The Constitution prohibits measures that "alter the sanctity and progressiveness" of labor rights and worker benefits, declares labor rights to be irrevocable, and provides that ambiguities regarding the application or interpretation of norms are to be applied in the manner most favorable to the worker.

 

Ministry of Labor inspectors hear complaints regarding violations of these regulations and traditionally have been able to impose a maximum fine of twice the monthly minimum wage for a first infraction. Under the Constitution, union officials have special protection from dismissal. Under the 1990 Labor Code, if a judge determines that any worker was fired for union activity, the worker is entitled to back pay plus either reinstatement or payment of a substantial sum of money, which varies according to the worker's seniority.

 

Labor law and practice are the same in the sole export processing zone, located in Punto Fijo, Falcon state, as in the rest of the country.

 

c. Prohibition of Forced or Compulsory Labor

 

The 1990 Labor Code states that no one may "obligate others to work against their will," and such practices generally are not known to occur, although trafficking in women is a problem (see Section 6.f.). Apart from the general prohibition of compulsory labor, the law does not prohibit specifically forced and bonded labor by children, and such practices generally are not known to occur; however, there were reports of trafficking in children for employment purposes (see Section 6.f.).

 

d. Status of Child Labor Practices and Minimum Age for Employment

 

The 1990 Labor Code and the Tutelary Law for Minors contain provisions to protect children from exploitation in the workplace. The Ministry of Labor and the National Institute for Minors enforce child labor policies effectively in the formal sector of the economy but less so in the informal sector, in which an estimated 1.2 million children work. According to UNICEF, approximately 47 percent of children are in the labor market, and they work in agriculture, as artisans, in offices, and in the services sector.

 

In a 1996 survey of working children conducted by the National Institute for Minors, 45 percent of those polled stated that they were not in school. The actual figure is probably much higher, considering that those who stated that they attended school also reported that they worked on average 71/2 hours per day, 4 to 7 days per week.

 

The 1990 Labor Code allows children between the ages of 12 and 14 to work only if the National Institute for Minors or the Labor Ministry grants special permission. It states that children between the ages of 14 and 16 may not work without the permission of their legal guardians. Minors may not work in mines or smelting factories; in occupations that risk life or health, or could damage intellectual or moral development; or in public spectacles. The Constitution prohibits adolescents from working in jobs that will affect their development.

 

Those under 16 years of age may by law work no more than 6 hours per day or 30 hours per week. Minors under the age of 18 may work only between 6 a.m. and 7 p.m. The estimated 1.2 million children who work in the informal sector, mostly as street vendors, generally work more hours than the total permitted under the law. In the 1996 National Institute for Minors survey of working children, half of the children worked both morning and afternoon, and 64.5 percent worked 6 or 7 days a week. The Government's Central Office of Statistics and Information reports that 12 percent of the country's children between the ages of 10 and 17 are working, have worked at some time, or are seeking work. Of that number, approximately 70 percent work in the informal sector of the economy. Less than 300,000 of children who work in the informal sector have permits.

 

Apart from the general prohibition of compulsory labor, the law does not specifically prohibit forced and bonded labor by children, but such practices generally are not known to occur; however, there were reports of trafficking in children for employment purposes (see Section 6.f.).

 

e. Acceptable Conditions of Work

 

The Constitution provides workers with the right to a salary that is sufficient to allow them to live with dignity, and provides them and their families with the right to basic material, social, and intellectual necessities; however, the minimum wage is not sufficient to provide a decent standard of living for a worker and family. The Constitution obliges the State to provide public and private sector workers with an annually adjusted minimum wage, using the cost of the basic basket of necessities as a reference point. Under the 1990 Labor Code, minimum wage rates are set by administrative decree, which the legislature may suspend or ratify but may not change. The law excludes only domestic workers and concierges from coverage under the minimum wage decrees. In July President Chavez announced that the Government would raise the minimum wage for public and private employees by 10 percent. Following the increase, which went into effect on July 12, the monthly minimum wage is $220 (165,000 bolivars) in the private sector for urban workers, $200 (150,000 bolivars) for employees of small and medium-sized companies, and $198 (148,500 bolivars) for rural workers. The increase applied only to those already earning the minimum wage--about 15 percent of the labor force. Total take-home pay in the private sector, the product of a presidential decree, was at least equal to that received by public sector minimum wage workers. Fringe benefits that are added to these minimum figures generally increase wages by about one-third. However, even with these benefits, the minimum wage is not sufficient to provide a decent standard of living for a worker and family. Unions note that a worker's income is often less than the cost of basic monthly food a family of five, estimated by the Government's Central Office of Statistics and Information during the year at $205 (153,750 bolivars). The basic basket, which includes medical care, transportation, clothing, and housing, in addition to food, totaled $833 (625,000 bolivars) for August 2000. The Ministry of Labor has enforced minimum wage rates effectively in the formal sector of the economy, but about one-half of the population works in the informal sector where labor laws and protections generally are not enforced.

 

The Constitution stipulates that the workday may not exceed 8 hours daily or 44 hours weekly and that night work may not exceed 7 hours daily or 35 hours weekly. Managers are prohibited from obligating employees to work additional overtime, and workers have the right to weekly time away from work and annual paid vacations. Some unions, such as the petroleum workers' union, have negotiated a 40-hour week. Overtime may not exceed 2 hours daily, 10 hours weekly, or 100 hours annually, and may not be paid at a rate less than time-and-one-half. The Ministry of Labor effectively enforces these standards in the formal sector.

 

The Constitution provides for secure, hygienic, and adequate working conditions; however, the authorities by year's end had not promulgated regulations to implement the 1986 Health and Safety Law, which is not enforced. The delay is due largely to concern that the law provides penal sanctions against management when violations of health and safety occur and that there is ambiguity in the law over what constitutes a violation. The Labor Code states that employers are obligated to pay specified amounts (up to a maximum of 25 times the minimum monthly salary) to workers for accidents or occupational illnesses, regardless of who is responsible for the injury.

 

The Code also requires that workplaces maintain "sufficient protection for health and life against sickness and accidents," and it imposes fines ranging from one-quarter to twice the minimum monthly salary for first infractions. However, in practice Ministry of Labor inspectors seldom close unsafe job sites. Under the law, workers may remove themselves from dangerous workplace situations without jeopardy to continued employment.

 

f. Trafficking in Persons

 

The Constitution prohibits trafficking in persons; however, there is no implementing law specifically for prosecution of all forms of trafficking in persons, and trafficking is a problem. Trafficking may be prosecuted under laws against forced disappearance and kidnaping (punishable by 2 to 4 years' imprisonment) and, in the case of children, under the 2000 Organic Law to Protect Children and Adolescents (which carries a penalty of 1 to 10 months in jail for trafficking in children). There were reports that Venezuela was a source, destination and transit country for trafficked men, women, and children during the year. However, no figures are available from either government or NGO sources, and it is difficult to gauge the extent of the problem; the authorities show little awareness of the problem. An underdeveloped legal framework, corruption among immigration authorities, and the ease with which fraudulent Venezuelan passports, identity cards, and birth certificates are obtained create favorable conditions for trafficking. However, there were no reports or evidence of involvement in trafficking by government officials, and the Government took steps this year to reduce corruption among immigration officials by replacing immigration inspectors at the Simon Bolivar International Airport in Maiquetia.

 

VENEZUELA - SOCIAL SECURITY

Social Security Office of International Programs:

 

http://www.ssa.gov/SSA_Home.html

 

VENEZUELA - STANDARD WORKWEEK

The Constitution stipulates that the workday may not exceed 8 hours daily or 44 hours weekly and that night work may not exceed 7 hours daily or 35 hours weekly. Managers are prohibited from obligating employees to work additional overtime, and workers have the right to weekly time away from work and annual paid vacations. Some unions, such as the petroleum workers' union, have negotiated a 40-hour week. Overtime may not exceed 2 hours daily, 10 hours weekly, or 100 hours annually, and may not be paid at a rate less than time-and-one-half.

 

(Section 6.e. Acceptable Conditions of Work, Venezuela – Report of Human Rights Practices, 2001, U.S. Department of State.)