State collective bargaining: a fundamental right that is gaining ground, by Fernando Cuadros Luque

In May 2021, Law No. 31188, Law on Collective Bargaining in the State Sector, was approved, regulating the exercise of the right to collective bargaining by state workers’ trade union organizations, in accordance with Articles 28 and 42 of the Constitution and ILO Conventions No. 98 and No. 151.

This rule applies to collective bargaining carried out by trade union organizations of workers of entities of the Executive Branch, the Legislative Branch, the Judicial Branch, regional governments, local governments, constitutionally autonomous bodies, and other entities and organizations, projects and programs of the State, whose activities imply the exercise of administrative powers.

It should be noted that collective bargaining in state-owned companies is governed by private regulations; and according to articles 42 and 153 of the Constitution, the following are excluded from collective bargaining: state officials with decision-making power, those who hold positions of trust or management, members of the Armed Forces and the National Police, as well as judges and prosecutors.

State collective bargaining takes place at the following levels:

• Centralized, in which the agreements reached have effects for workers at the three levels of government: national, regional and local, except for special careers in education and health.
• Decentralized, which is carried out at the sectoral level (special education and health courses) and by public entity (complements the centralized level).
• Public company workers’ unions negotiate with their respective employers.

The subject of state collective bargaining is the determination of all types of working and employment conditions, including remuneration and other working conditions with economic impact, as well as all aspects relating to the relations between employers and workers, and the relations between employers’ and workers’ organizations.

At the centralized level, requests related to the matters previously indicated can be negotiated, provided that they apply to all public servants of the entities under the scope of the aforementioned collective bargaining, in accordance with their respective labor regime.

At the decentralised level, the working or employment conditions, with or without financial impact, that apply to the employees included in the corresponding area can be negotiated. In the case of the decentralised level by entity, those matters agreed at the centralised level are excluded, unless otherwise agreed in the collective agreement signed at said level, in which case the decentralised negotiation may refer to the conditions of execution of the agreements agreed at the centralised level, without being able to reduce or distort them, or include the approval of amounts greater than those agreed at the centralised negotiation level for the same concepts.

With the regulation of Law No. 31188 in January 2022, the implementation of collective bargaining in economic matters in the State became feasible after several decades; signing On June 30, 2022, the first centralized state collective agreement in the history of Peru, of general application to public workers under regimes 276, 728, CAS, Civil Service, and special penitentiary and diplomatic careers (565 thousand).

This agreement included economic improvements (framed within the state financial capacity and budgetary order) for workers for S/ 830 million (negotiations began with S/ 370.9 million): S/ 514 million for salary increases (S/ 222.7 per month on average for 276 and S/ 840 per year for the rest) from January 2023 and S/ 316 million for a one-time bonus (S/ 550) in December 2022.

In addition, it incorporated clauses for budgetary exceptions for the execution of collective agreements; the formation of a bipartite working group to evaluate the creation of a consultative space on public employment (which would address labor issues); promotion of the implementation of the occupational health and safety system; coordination for the creation of a teleworking law in the public sector; solution to the problem of uncompensated paid leave during the pandemic; promotion of the implementation of the National Gender Equality Policy; solution to the problem of the appointment of the 276 contracted workers; promotion of the implementation of the Worker Development Plans, and training on state collective bargaining; union paid leave for the Boards of Directors of Confederations and Federations; facilities for the payment of union dues to Federations and Confederations, and adjustments to the MTPE Electronic Payroll to determine the representativeness of union organizations; optional solidarity contribution from non-unionized workers benefiting from the centralized collective agreement; analysis of the feasibility of creating a space for the dissemination of labour rights; creation of the Commission for monitoring compliance with the collective agreement, and guidelines; etc.

The above was complemented by what was agreed at the decentralized level by entity, without repeating any material agreed at the centralized level; while the workers in the special health and education careers (610 thousand) negotiated their own sectoral collective agreements.

Subsequently, in 2023 and 2024, two new centralized collective agreements were signed between the employers’ representatives and the main state workers’ confederations, agreeing on additional increases in the monthly salaries of workers of S/ 100 in each of said agreements, as well as one-time bonuses of S/ 600 and S/ 200, respectively, in addition to the transfer of S/ 200 from the “non-remunerative” component of the income of the 276 to their salaries in the case of the 2024 collective agreement (favoring their future pensions); among other improvements in working conditions, such as paid leave for the death of family members and name days of workers, compensable leaves, and the continuity of those aspects agreed in the 2022 collective agreement.

Thus, the state collective bargaining mechanism implemented in 2021 and 2022 is being consolidated, which is being used not only to gradually improve the conditions of workers, which have been precarious for many years, but also to organize the management of human resources and make it more efficient; all of this, of course, within fiscal possibilities.

Finally, in order for state workers to have access to ever greater pay increases and better working conditions, it is essential that they increase their level of union membership (16%) and thereby increase their bargaining power. It is a moral duty for every worker to join a union.