Observation (CEACR) - adopted 2025, published 114th ILC session (2026)

Right to Organise and Collective Bargaining Convention, 1949 (No. 98) - Uruguay (Ratification: 1954)

The Committee notes the joint observations of the Chamber of Commerce and Services of Uruguay (CCSUY), the Chamber of Industries of Uruguay (CIU) and the International Organisation of Employers (IOE), received on 31 August 2023 and 28 August 2025, which concern matters addressed by the Committee in this comment, and also notes the Government’s reply in this respect.

Article 4 of the Convention. Promotion of free and voluntary collective bargaining. For several years, the Committee, together with the Committee on Freedom of Association (Case No. 2699) and the Conference Committee on the Application of Standards, have been requesting the Government to revise Act No. 18.566 of 2009 (Act establishing the fundamental rights and principles of the collective bargaining system, hereinafter Act No. 18.566), with a view to ensuring the full compliance of the Act with the principles of collective bargaining and the Conventions ratified by Uruguay in this area.

The Committee recalls that, between 2015 and 2019, the Government submitted several proposals for legislative amendments to the social partners without reaching agreement. In 2022, the Government submitted to Parliament a Bill identical to that of 2019 which, while addressing some of the Committee’s observations, did not propose amendments or clarifications regarding the competence of the wage councils, which are tripartite bodies, in relation to adjustments made to wages that are above the minimum for the occupational category and working conditions (section 12 of Act No. 18.566). Trusting that the partial progress contained in the Bill would be incorporated in the current legislation, the Committee strongly encouraged the Government to continue working in tripartite bodies and to take the necessary further measures to amend section 12 so that the legislation fully guarantees both the free and voluntary nature of collective bargaining and the continued effective promotion thereof, thereby ensuring that the country’s existing collective agreements continue to offer a high level of coverage.

The Committee notes the Government’s indication that the Bill submitted in 2022 was approved and promulgated on 17 May 2023 as Act No. 20.145, which introduced the following amendments to Act No. 18.566:

• the addition of a final paragraph to section 4 of the Act, requiring employers’ and workers’ organizations to have legal personality in order to access and exchange certain types of information within the framework of collective bargaining;
• the repeal of section 10(d) of the Act, which established the competence of the Tripartite Higher Council to define the level of bipartite or tripartite negotiations;
• the removal of the final part of section 14 of the Act which, in the absence of a trade union represented in the enterprise, conferred bargaining power on higher-level trade unions;
• the repeal of section 17(2) of the Act so that, for each agreement, the issue of continuing effect is subject to negotiation; and
• the provision that the decisions of wage councils and collective agreements do not require the authorization, approval or adoption of the executive authorities in order to be recorded and published.

The Committee notes with interest the amendments introduced to Act No. 18.566, which respond to the various requests of the Committee and are in accordance with the Convention. The Committee notes that the CCSUY, the CIU and the IOE consider that, while these amendments respond to the requests of the supervisory bodies: (i) the Act should have clearly established that the termination of an agreement results in the end of the benefits provided for in that agreement; (ii) the Act should have specified who is authorized to sign a collective agreement in the absence of a trade union in the enterprise; and (iii) the Act should have imposed an obligation on the executive authorities to proceed immediately with the registration and publication of an award or agreement submitted by the parties. The organizations concerned indicate that the powers of the wage councils is a key aspect of which the amendment is still pending. The CCSUY, the CIU and the IOE state that the new Government that took office in March 2025 has resumed the previously abandoned practice of including, in its guidelines for negotiations in the wage councils, guidance on working conditions. The organizations concerned underscore that: (i) the wage councils must limit their wage-setting powers to the fixing of minimum wages; (ii) the updating of wages must be a matter exclusively for bilateral negotiation; and (iii) the inclusion of guidance with proposals on wage increases and the inclusion of working conditions constitute an act of interference by the State in collective bargaining, which undermines the free and voluntary nature of such bargaining.

The Committee notes that, for its part, the Government indicates that: (i) the State intervenes in the (tripartite) negotiations in the wage councils, which have the power to fix wages, given that this has been the method of fixing wages since 1943; (ii) the decisive factor for the possible establishment of working conditions by the tripartite body is that there must be agreement between the workers’ and employers’ organizations; (iii) section 12 of Act No. 18.566 did nothing more than legalize a practice that has been carried out since 1943; and (iv) collective bargaining in Uruguay has one of the world’s highest rates of objective coverage (with regard to the public and private sectors) and subjective coverage (with regard to the workers concerned).

The Committee notes this information. While it welcomes the very high collective bargaining coverage indicated by the Government, the Committee notes with regret that, despite its reiterated comments, and the recommendations of the Committee on Freedom of Association, Act No. 20.145 did not include amendments or clarifications regarding the powers of the wage councils in relation to adjustments made to wages that are above the minimum for the occupational category, and working conditions (section 12 of Act No. 18.566). The Committee once again recalls that, while the fixing of minimum wages may be subject to decisions by tripartite bodies, Article 4 of the Convention seeks to promote bipartite bargaining for the setting of working conditions, whereby all collective agreements establishing working conditions shall result from an agreement between employers or employers’ organizations and workers’ organizations. The Committee also recalls that mechanisms may be established that guarantee both the free and voluntary nature of collective bargaining and its effective promotion, thereby ensuring that the country’s existing collective agreements continue to offer a high level of coverage. The Committee urges the Government to, in consultation with the social partners, take the necessary measures to revise section 12 of Act No. 18.566, so that, in accordance with the Convention, the legislation fully guarantees both the free and voluntary nature of collective bargaining and the continued effective promotion thereof. The Committee requests the Government to provide information on any progress in this respect and reminds the Government that it may avail itself of the technical assistance of the Office.

Act on legal personality. In its previous comment, the Committee noted that the Senate was considering a Bill on the legal personality of workers’ and employers’ organizations. The Committee requested the Government to duly consider the concerns of workers’ and employers’ organizations, guarantee that the system of legal personality does not hinder collective bargaining, ensure the confidentiality of data relating to trade union membership and, if the Bill is adopted, implement it in such a manner as to strengthen the effective promotion of collective bargaining.

The Committee notes that the Government indicates the promulgation, on 21 April 2023, of Act No. 20.127, creating a register of legal personality for workers’ and employers’ organizations, which will operate within the remit of the Ministry of Labour and Social Security (MTSS). The Committee observes that, in accordance with the Act: (i) registration is optional and serves to recognize legal personality, which is granted upon submission of the statutes of the organization; (ii) the recognition of legal personality does not constitute prior authorization or permission for the functioning of the organizations; (iii) once the legal personality has been recognized and the statutes registered, the recognition of the legal personality will be published in the Official Journal, and the information will be publicly accessible (the Government indicates that publication does not include the identification of the trade union members, but only the identification of those representing the organization for the purpose of registration with the MTSS); and (iv) the workers’ organizations that have not completed the procedure for the recognition of legal personality may not demand the withholding of union dues for deposit in the organization’s bank account, which also applies to the provisions contained in section 4(2) of Act No. 18.566 regarding the exchange of confidential information. The Committee notes that the CCSUY, the CIU and the IOE indicate that the requirement to have legal personality aims to ensure the responsibility of an organization in the event of failure to comply with the obligation of secrecy regarding shared confidential information. Furthermore, these organizations indicate that national doctrine, when analysing the Bill which is now law, warned that if a trade union lacked legal personality, any liability would fall directly on its members. The Committee requests the Government to provide information on the impact of the Act in practice and on the effect on the conduct of organizations’ activities, and consequently collective bargaining. It also reiterates its firm expectation that the Act will be implemented in such a manner as to contribute to maintaining and strengthening the effective promotion of collective bargaining.