The constitution and law provide for the rights of workers, including foreign workers, to form and join independent unions, bargain collectively, and conduct legal strikes.

Civil servants have the right to bargain collectively with the Pay Research Bureau. Workers are free to form and join unions and to organize in all sectors, including in the export-oriented enterprises (EOE), formerly known as the export-processing zone. The Police (Membership of Trade Union) Act allows police officers to form and join unions. The law grants authorities the right to cancel a union’s registration if it fails to comply with certain legal obligations; however, there were no reports that the government exercised this right. The law provides for a commission to investigate and mediate labor disputes, and a program to provide unemployment benefits and job training. The law allows unions to conduct their activities without government interference.

The law establishes a mandatory, complex, and excessively lengthy process for declaring a legal strike. This process calls for labor disputes to be reported to the Commission for Conciliation and Mediation only after meaningful negotiations have occurred and the parties involved have reached a deadlock–a process that is not to exceed 90 days unless the parties involved agree. If the parties reach no compromise, the workers may call a strike. Even if workers follow this procedure, the law allows the government to prohibit a strike and refer the dispute to arbitration if the strike could seriously affect an industry or service or threaten employment. Strikes are not generally legal on issues that are already covered in a collective bargaining agreement. The law requires workers in many sectors to provide minimum service levels in the event of a strike, including sectors that international standards do not classify as “essential services.” The law prohibits strikes and other demonstrations during the sittings of the National Assembly and does not allow unions to organize strikes at the national level or concerning general economic policy issues.

Worker participation in an unlawful strike is sufficient grounds for dismissal, but workers may seek a remedy in court if they believe their dismissals were unjustified. The law prohibits antiunion discrimination, but it does not provide for reinstatement of workers fired for union activity. Dismissed workers can turn to the Industrial Relations Court to seek redress.

National labor laws cover all workers in the formal and informal sectors, with exceptions in the EOE pertaining to overtime. Despite growth in the informal economy over the years, there was no research on or estimate of the size of the informal economy, which traditionally includes street “hawkers” involved in vending of food and clothing.

The government effectively enforced applicable laws, but there were a few delays in procedures and appeals. Penalties for violations by employers were insufficient to deter violations.

Freedom of association and the right to collective bargaining were generally respected, and workers exercised these rights. Most unions collectively negotiated wages higher than those set by the National Remuneration Board (NRB). Worker organizations were independent of the government and political parties. There were no reports of government interference in union activities.

Despite the law antiunion discrimination and dismissal remained a problem in the private sector. Some employers in the EOE reportedly continued to establish employer-controlled work councils for EOE workers, effectively blocking union efforts to organize. Approximately 59,000 persons worked in the EOE; only 10 percent belonged to unions.

The law prohibits most forms of forced or compulsory labor, including by children. The government did not effectively enforce the law. The government made some efforts to prevent and eliminate forced labor (see section 7.c.), but trade unions stated resources, inspections, and remediation were inadequate. Penalties for violations were not sufficient to deter violations. Data from the Ministry of Labor, Industrial Relations, Employment and Training on the number of victims removed from forced or compulsory labor during the year were not available.

Trade unionists reported cases of forced labor during the year among migrant workers involving passport confiscation, underpayment of wages, substandard living conditions, lack of clearly defined work titles, denial of meal allowances, and deportation. As of September 30, there were 44,967 migrant workers in the country, mainly from Bangladesh, India, Sri Lanka, Nepal, China, and Madagascar. In addition, Malagasy women reportedly transited the country while traveling to other countries, where employers subjected them to forced labor conditions.

The International Labor Organization noted some deficiencies in the law, including provisions that allow for compelled labor from seafarers who do not follow orders and allow for the hiring out of prisoners to private companies.

Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

The law does prohibit the worst forms of child labor. The law prohibits the employment of children younger than 16 and prohibits employment of children younger than 18 in work that is dangerous, unhealthy, or otherwise unsuitable for young persons. The penalties for employing a child were not sufficient to deter violations.

The government did not effectively enforce the law. The Ministry of Labor, Industrial Relations, Employment, and Training is responsible for the enforcement of child-labor laws and conducted frequent inspections of businesses in the formal economy, but generally inspections did not occur after hours or in the informal sector where there was evidence of child labor. The ministry developed vocational training programs to prevent employment of underage children and conducted programs to identify and integrate street children into its vocational training program. These programs are preparatory professional training for school dropouts who are too young to enter the work force.

While the government generally respected this law, it did not effectively enforce it, especially in the informal sector. Penalties were not sufficient to deter violations. Children worked in the informal sector, including as street traders, and in small businesses, restaurants, agriculture, small apparel workshops, and retail shops.

Also see the Department of Labor’s Findings on the Worst Forms of Child Labor at https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings .

d. Discrimination with Respect to Employment and Occupation

Labor laws and regulations prohibit discrimination regarding race, sex, gender, disability, sexual orientation, HIV-positive status or having other communicable diseases, social status, religion, political opinion, and national origin. The law affords women broadly defined wage protections and requires equal pay for equal work for both men and women; it also states that employers should not force women to carry loads above certain weight limits. The government did not effectively enforce these laws and regulations.

Discrimination in employment and occupation with respect to gender, race, disability, and HIV/AIDS status occurred. While women had equal access to education, the private sector paid women less than men for substantially similar work. Women filled few decision-making positions in the private sector, and there were even fewer women sitting on corporate boards, where approximately 6 percent of all board members were women.

The law requires organizations employing more than 35 persons to set aside at least 3 percent of their positions for persons with disabilities, but the government was not always effective in enforcing this law. The main reasons for the low employment rate of persons with disabilities were inaccessible workplaces and a lack of adapted equipment.

Many community leaders claimed there was discrimination in the employment of Creoles (citizens of African descent) and Muslims of Indian origin in the public service.

In 2017 the Equal Opportunities Amendment Act came into force to counter abuses under the 2012 Certificate of Character Act, which requires employees to provide proof to their employers that they have no criminal record. The new amendment protects employees from being fired due to a criminal record on their certificate of character that “is irrelevant to the nature of the employment for which that person is being considered.” Previously some workers complained employers fired them once the employer learned they lacked a clean certificate of character. Many individuals complained the certificate makes no distinction between minor offenses, such as street littering, and more serious offenses. Observers noted all offenses remain permanently on the certificate of character.

In the private sector, the NRB sets minimum wages for nonmanagerial workers outside the EOE. The minimum wage for an unskilled domestic worker in the EOE was above the poverty line, while the minimum wage for an unskilled factory worker outside the EOE was below the poverty line.

By law employers cannot force a worker outside the EOE to work more than eight hours per day, six days per week. The standard legal workweek in the EOE is 45 hours. According to a local trade union, the Mauritius Labor Congress, 10 hours of overtime a week is nonetheless mandatory at certain textile factories in the EOE. Regulations require remuneration for those who work more than their stipulated hours at one and a half times the normal salary rate. Those who work during their stipulated hours on public holidays are remunerated at double their normal salary rate. The law provides for paid annual holidays but does not prohibit compulsory overtime in the EOE. For industrial positions, regulations do not permit workers to work more than 10 hours a day. The law requires the Ministry of Labor, Industrial Relations, Employment and Training to investigate cases of overtime violations. If an employer fails to take action to address the violations, the ministry initiates a court action.

The Employment Rights Act and the Employment Relations Act cover the laws relating to acceptable conditions of work outside the EOE. These laws provide for a standard workweek and paid annual holidays, require premium pay for overtime, and prohibit compulsory overtime. A worker (other than a part-time worker or a watchperson) and an employer may agree, however, to have the employee work in excess of the stipulated hours without added remuneration, if the number of hours covered in a 14-day period does not exceed 90 hours or a lesser number of hours as agreed to by both parties.

The government did not enforce the law effectively. While the government enforced wages in the formal sector, there were reports employers demoted workers to part-time status to evade wage and hour requirements. Penalties were not sufficient to deter violations.

The government sets occupational safety and health standards. By law workers can remove themselves from situations that endanger health or safety without jeopardy to their employment, and authorities effectively protected employees in these situations; however, workers did not generally exercise this right.

Ministry of Labor, Industrial Relations, Employment and Training officials inspected working conditions. The ministry employed labor and industrial relations officers, including labor inspectors in the Migrant Labor Unit, to investigate all reports of labor abuses. Despite an increase in the number of inspectors in the Migrant Labor Unit, trade unions said the number was insufficient to enforce compliance. Penalties were not always sufficient to deter violations. Authorities generally applied these standards to both foreign and citizen workers.

The actual market wage for most workers was much higher than the minimum wage due to a labor shortage and collective bargaining.

Unions reported cases of underpayment for overtime in the textile and apparel industries due to differences in existing legislation and remuneration orders for the calculation of overtime hours.

Employers did not always comply with safety regulations, resulting in occupational accidents. There were reports of foreign workers living in dormitories with unsanitary conditions, which gave rise to spontaneous protests during the year. For example, on October 3, the Passport and Immigration Office deported 42 Bangladeshi migrant workers of Firemount Textiles after they violently protested delays in salary payment and poor living conditions.

The government continued its efforts to strengthen freedom of association protections, promote union democracy, and improve the ability of workers to bargain collectively. On May 1, President Lopez Obrador signed a labor reform law aimed at ensuring workers may freely and independently elect union representatives and approve or reject collective bargaining agreements before they are implemented. Revisions to the constitution in 2017 envisioned independent labor courts to replace the system of conciliation and arbitration boards (CABs) and streamline the judicial process for labor disputes. The labor reforms passed during the year provide the implementing legislation for this new labor justice system and establish a four-year timeline for transfer. The government demonstrated its prioritization of labor reform through its commitment of budgetary resources and its regular issuance of implementing regulations to bring the new laws into force.

The government announced it would implement the labor reforms in a phased manner, beginning at the federal level and in 10 states in October 2020. In August unions began registering updated bylaws with the Secretariat of Labor and Social Protection and holding leadership elections under the terms of the labor reform. The registration process was scheduled to conclude in May 2020. The secretariat also began the process of having workers review and vote on the collective bargaining agreements under which they work following the procedures for free and fair elections under the new labor reform.

In September 2018 the Senate ratified International Labor Organization (ILO) Convention 98 on collective bargaining. By ratifying the convention, the government subjects itself to the convention’s oversight and reporting procedures. According to the independent unions, ratification also contributes to ensuring the institutions established as a result of the labor justice reform are, in law and practice, independent, transparent, objective, and impartial, with workers having recourse to the ILO’s oversight bodies to complain of any failure.

Federal labor law requires a minimum of 20 workers to form a union. To receive government recognition, unions must file for registration with the appropriate CAB or the Secretariat of Labor and Social Welfare. For the union to be able to function legally, its leadership must also register with the appropriate CAB or the secretariat. CABs operate under a tripartite system with government, worker, and employer representatives. Outside observers raised concerns that the boards did not adequately provide for inclusive worker representation and often perpetuated a bias against independent unions, in part because worker representation on the CABs was based on majority representation, which is held by “protection” unions. Protection unions and “protection contracts” were common in all sectors.

By law a union may call for a strike or bargain collectively in accordance with its own bylaws. Before a strike may be considered legal, a union must file a “notice to strike” with the appropriate CAB, which may find the strike is “nonexistent” and therefore illegal. The law prohibits employers from intervening in union affairs or interfering with union activities, including through implicit or explicit reprisals against workers. The law allows for reinstatement of workers if the CAB finds the employer fired the worker without just cause and the worker requests reinstatement; however, the law also exempts broad categories of employees from this protection, including so-called employees of confidence and workers who have been in the job for less than a year.

The government, including the CABs, did not consistently protect worker rights. The government’s common failure to enforce labor and other laws left workers with little recourse for violations of freedom of association, poor working conditions, and other labor problems. The CABs’ frequent failure to impartially and transparently administer and oversee procedures related to union activity, such as union elections, registrations and strikes, undermined worker efforts to exercise freely their rights to freedom of association and collective bargaining. For example, the government rejected registration applications for locals of independent unions, and for unions, based on technicalities.

Penalties for violations of freedom of association and collective bargaining laws were rarely applied and were insufficient to deter violations. Administrative and judicial procedures were subject to lengthy delays and appeals.

According to several NGOs and unions, many workers faced violence and intimidation around bargaining-rights elections perpetrated by protection union leaders and employers supporting them, as well as other workers, union leaders, and vigilantes hired by a company to enforce a preference for a particular union. Some employers attempted to influence bargaining-rights elections through the illegal hiring of pseudo employees immediately prior to the election to vote for the company-controlled union. CABs were widely alleged to administer these elections with a bias against new, independent unions, resulting in delays and other procedural obstacles that impacted the results and undermined workers’ right to organize.

Other intimidation and manipulative practices were common, including dismissal of workers for labor activism. For example, 57 workers at a Goodyear factory in San Luis Potosi alleged they were fired after striking in April 2018 to demand better working conditions, wages, and authentic union representation. The workers claimed that because of their independent strike, a corporatist union had blackballed them from working in other factories.

The constitution and the law prohibit all forms of forced or compulsory labor, but the government did not effectively enforce the law. While penalties for conviction of forced labor were sufficient to deter violations, very few cases reached the court system or were successfully prosecuted.

Forced labor persisted in the industrial and agricultural sectors, especially in the production of chili peppers and tomatoes, as well as in the informal sector. Women and children were subject to domestic servitude. Women, children, indigenous persons, and migrants (including men, women, and children) were the most vulnerable to forced labor. In July 2018 authorities identified 50 forced agricultural workers on three commercial tomato farms in Coahuila. Authorities in Coahuila freed an additional 25 forced agricultural workers–including nine children–from a chili pepper and tomato farm in August 2018. In both cases the victims reportedly lived in unsanitary conditions, worked excessive hours under the threat of dismissal, and received subminimum wage payments or no payment at all.

Day laborers and their children were the primary victims of forced and child labor in the agricultural sector. In 2016 INEGI reported 44 percent of persons working in agriculture were day laborers. Of the day laborers, 33 percent received no financial compensation for their work. Only 3 percent of agricultural day laborers had a formal written contract.

Indigenous persons in isolated regions reported incidents of forced labor, in which cartel members forced them to perform illicit activities or face death. Minors were recruited or forced by cartels to traffic persons, drugs, or other goods across the border. In July authorities in Chihuahua rescued 21 men who had been kidnapped and forced to grow marijuana and poppies, allegedly by the Sinaloa Cartel. Migrants were also recruited by criminal organizations to conduct illicit activities.

Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

The law prohibits the worst forms of child labor. The constitution and the law prohibit children younger than age 15 from working and allows those ages 15 to 17 to work no more than six daytime hours in nonhazardous conditions daily, and only with parental permission and permission from the labor authority. The law requires children younger than 18 to complete compulsory basic education and to have a medical certificate to work. The minimum age for hazardous work, including all work in the agricultural sector, is 18. The law prohibits minors from working in a broad list of hazardous and unhealthy occupations.

The government was reasonably effective in enforcing child labor laws in large and medium-sized companies, especially in the export-oriented factory (maquiladora) sector and other industries under federal jurisdiction. Enforcement was inadequate in many small companies and in agriculture and construction, and nearly absent in the informal sector, in which most child laborers worked. In January the newspaper El Universal reported as many as 400 children were working on tomato and chili pepper farms near Coahuayana, Michoacan, receiving little education and earning very low wages.

Underage children in urban areas throughout the country earned money by begging, washing windshields, selling small items, or performing in public places for gratuities. In April authorities in Sinaloa announced they had identified 312 children who had been working in the streets of various cities. In the same month, two children from Chiapas were identified in Reynosa, Tamaulipas, while begging in the streets dressed as clowns. Authorities found the children had no relatives in the area and were possibly victims of human trafficking. In October 2018 authorities identified 63 persons, including 56 children, who had been forced to work in the streets of Oaxaca, and arrested 11 individuals on charges of human trafficking.

At the federal level, the Secretariat of Social Development, Attorney General’s Office, and National System for Integral Family Development share responsibility for inspections to enforce child labor laws and to intervene in cases in which employers violated such laws. The Secretariat of Labor is responsible for carrying out child labor inspections. Penalties for violations were not sufficiently enforced to deter violations.

According to a 2017 INEGI survey, the number of employed children ages five to 17 was 3.2 million, or approximately 11 percent of children in the country. This represented a decrease from 12.4 percent of children in the 2015 INEGI survey. Of these children, 7.1 percent were younger than the minimum age of work or worked under conditions that violated federal labor laws, such as performing hazardous work. Child labor was most common in the agricultural sector; children worked in the harvest of beans, chili peppers, coffee, cucumbers, eggplants, melons, onions, tobacco, and tomatoes, as well as in the production of illicit crops such as opium poppies. Other sectors with significant child labor included services, retail sales, manufacturing, and construction.

Also, see the Department of Labor’s List of Goods Produced by Child Labor or Forced Labor at https://www.dol.gov/agencies/ilab/reports/child-labor/list-of-goods .

d. Discrimination with Respect to Employment and Occupation

The constitution and the law prohibit discrimination with respect to employment or occupation. The federal labor law specifically proscribes discrimination on the basis of ethnicity, nationality, gender, age, handicap (or challenged capacity), social status, health, religion, immigration status, political opinion, sexual preference, marital status, or pregnancy. The government did not effectively enforce the law or regulations. According to a 2017 INEGI survey, 12 percent of women had been illegally asked to take a pregnancy test as a prerequisite to being hired. Job announcements specifying desired gender, age, marital status, and parental status were common.

INEGI reported in 2017 that 23 percent of working women experienced violence in the workplace within the past 12 months and 6 percent experienced sexual violence.

Penalties for violations of the law included administrative remedies, such as reinstatement, payment of back wages, and fines (often calculated based on the employee’s wages), and were not generally considered sufficient to deter violations. Discrimination in employment or occupation occurred against women, indigenous groups, persons with disabilities, LGBTI individuals, and migrant workers.

The tripartite National Minimum Wage Commission is responsible for establishing minimum salaries. In December 2018 it unanimously approved the largest general minimum wage increase (16 percent) in 23 years and a doubling of the minimum wage in the economic zone along the border with the United States. Wages had stagnated since 1994, with the country’s minimum wage declining almost 20 percent in real terms. Despite the minimum wage increase, the real general minimum wage fell once again below the official poverty line. Nonetheless, most formal-sector workers received between one and three times the minimum wage. The minimum wage increase set off major strikes by unionized workers in Matamoros, who demanded employers honor contractual employment clauses unique to the city requiring all wages to go up by a factor of any minimum wage increase. According to reports, manufacturing executives in the northern border region colluded with one another to keep wages artificially low. As a result of the strikes in Matamoros, most of the manufacturing plants agreed to worker demands, a general wage increase of 20 percent and a bonus of 32,000 pesos ($1,600).

The federal labor law sets six eight-hour days and 48 hours per week as the legal workweek. Any work in excess of eight hours in a day is considered overtime, for which a worker is to receive double pay. After accumulating nine hours of overtime in a week, a worker earns triple the hourly wage. The law prohibits compulsory overtime. The law provides for eight paid public holidays and one week of paid annual leave after completing one year of work. The law requires employers to observe occupational safety and health regulations, issued jointly by the Secretariat of Labor and the Institute for Social Security. Legally mandated joint management and labor committees set standards and are responsible for overseeing workplace standards in plants and offices. Individual employees or unions may complain directly to inspectors or safety and health officials. By law workers may remove themselves from situations that endanger health or safety without jeopardy to their employment.

The Secretariat of Labor is responsible for enforcing labor laws and inspecting workplaces. Neither the number of labor inspections nor the penalties for violations of labor law were sufficient to secure compliance with labor law. A chemical spill on July 9 by the mining company Grupo Mexico called widespread public attention to that company’s long record of safety and environmental violations, leading President Lopez Obrador to call for talks with union leaders and Grupo Mexico’s ownership to resolve the miners’ grievances. Through its DECLARALAB self-evaluation tool, the secretariat provided technical assistance to almost 4,000 registered workplaces to help them meet occupational safety and health regulations.

According to labor rights NGOs, employers in all sectors sometimes used the illegal “hours bank” approach–requiring long hours when the workload is heavy and cutting hours when it is light–to avoid compensating workers for overtime. This was a common practice in the maquiladora sector, in which employers forced workers to take leave at low moments in the production cycle and obliged them to work in peak seasons, including the Christmas holiday period, without the corresponding triple pay mandated by law for voluntary overtime on national holidays. Additionally, many companies evaded taxes and social security payments by employing workers informally, using subcontracting regimes or by submitting falsified payroll records to the Mexican Social Security Institute. INEGI estimated 57 percent of the workforce was engaged in the informal economy during the year. Of the 30 million informal workers, approximately one-quarter (7.6 million) were employed by formal businesses or organizations, often paid in cash, off the books, to evade taxes and social security payments.

Observers from grassroots labor rights groups, international NGOs, and multinational apparel brands reported that employers in export-oriented supply chains were increasingly using hiring methods that lessened job security. For example, manufacturers commonly hired workers on one- to three-month contracts, and then waited a period of days before rehiring them on another short-term contract, to avoid paying severance and to prevent workers from accruing seniority. This practice violated federal labor law and restricted worker’s rights to freedom of association and collective bargaining. Observers noted it also increased the likelihood of work-related illness and injury. Outsourcing practices made it difficult for workers to identify their legally registered employer, limiting their ability to seek redress of labor grievances.

Citizens hoping to secure temporary, legal employment in the United States and other countries frequently paid recruiters hundreds or thousands of dollars in prohibited fees to secure jobs, and many prospective workers were promised jobs that did not exist. Allegations of abusive and fraudulent recruitment practices rarely were investigated. Although the law requires entities recruiting for overseas employment to register with the Secretariat of Labor, there is no enforcement mechanism, and only a handful of recruiters complied. During the year the secretariat’s National Employment Service began reviewing ways to enforce the foreign recruitment registration law.

The situation of agricultural workers remained particularly precarious, with similar patterns of exploitation throughout the sector. Labor recruiters enticed families to work during harvests with verbal promises of decent wages and a good standard of living. Rather than pay them daily wages once a week, as mandated by law, day laborers had to meet certain harvest quotas to receive the promised wage. Wages may be illegally withheld until the end of the harvest to ensure the workers do not leave, and civil society organizations alleged workers were prohibited from leaving by threats of violence or by nonpayment of wages. Workers had to buy food and other items at the company store at high markups, at times leaving them with no money at the end of the harvest after settling debts. Civil society groups reported families living in inhuman conditions, with inadequate and cramped housing, no access to clean water or bathrooms, insufficient food, and without medical care. With no access to schools or childcare, many workers brought their children to work in the fields. Due to alleged corruption and opacity, in January the federal government eliminated the Program of Care for Agricultural Day Labors, which was intended to reduce the vulnerability of agricultural migrant workers.

News reports indicated there were poor working conditions in some maquiladoras. These included low wages, contentious labor management, long work hours, unjustified dismissals, a lack of social security benefits, unsafe workplaces, and no freedom of association. Many women working in the industry reported suffering some form of abuse. Most maquiladoras hired employees through outsourcing with few benefits.

In April the Senate unanimously approved legislation intended to improve working conditions for the 2.4 million domestic workers, 90 percent of whom were women, by making it possible for them to enroll in social security, thereby gaining access to benefits such as medical services, child care, and maternity leave.

According to data from the Mexican Social Security Institute, in 2018 there were 201,310 workplace accidents, resulting in 303 deaths. In June an accident involving an industrial press in Nuevo Leon caused the partial amputation of four workers’ arms. In August an accident at a silver and gold mine in Oaxaca killed a contractor who was operating heavy machinery.

Although the law does not specifically provide for the right of workers to join a union, under the constitution citizens have the right to form or join associations, and by law government employees can form associations to “present their views” to the government without being subject to coercion, discrimination, or reprisals. Citizens did not exercise this right. No law deals specifically with trade unions, the right to collective bargaining, or antiunion discrimination. There is no specific right to strike, but no law prohibits strikes.

Although the law does not prohibit workers, including foreign workers, from joining unions, there were no unions and most private-sector employment was in small-scale, family-owned businesses or in subsistence farming and fishing. No nongovernmental organizations focused on unions or labor issues.

The law prohibits all forms of forced or compulsory labor. The government effectively enforced the law, although resources and inspections were minimal. The national antitrafficking law provides for penalties that were sufficient to deter violations. There were reports of foreign workers from Southeast Asian countries working in conditions indicative of human trafficking on Asian fishing vessels in the country or its territorial waters.

Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

National and state laws do not establish a minimum age or prescribe limits on hours or occupations for employment of children. The law does not prohibit the worst forms of child labor. There was no employment of children for wages, but children often assisted their families in subsistence farming and family-owned shops. There were reports of children trafficked by family members for commercial sex, particularly to foreign fishermen and other seafarers.

d. Discrimination with Respect to Employment and Occupation

The constitution prohibits discrimination based on race, gender, and religion. Labor law also prohibits discrimination based on race and gender. The law also provides protections for persons with disabilities, but they are limited in scope. The law does not provide for specific legal protections for age, citizenship, national origin, political opinion, sexual orientation, gender identity, or positive diagnosis of HIV/AIDS or other diseases. The government did not effectively enforce the law, and penalties were insufficient to deter violations.

There was no pattern of discrimination in most areas, although discrimination in employment and occupation occurred with respect to persons with disabilities. Traditional customs, especially in Yap State, limited professional opportunities for lower-status and outer-island persons. Women were underrepresented in all areas except in the service sector.

The national minimum hourly wage for employment with the national government was above the official estimate for the poverty income level. There is no other minimum wage.

The law sets a standard of an eight-hour day and a five-day workweek, with premium pay for overtime. There are no legal provisions prohibiting excessive or compulsory overtime. A federal regulation requires that employers provide a safe workplace. Workers can remove themselves from situations that endangered health or safety without jeopardy to their employment.

The Division of Immigration and Labor within the Department of Justice is responsible for enforcing these standards. The number of labor inspectors was sufficient to deter violations. The tax system monitored the minimum wage effectively. The government generally was effective in its enforcement of these standards and provided sufficient resources for effective enforcement. Penalties were sufficient to deter violations.

Approximately one-half of workers were in the informal economy where the law does not apply, predominantly in subsistence agriculture and fishing. Working conditions aboard some foreign-owned fishing vessels operating in the country’s waters continued to be very poor. Crewmembers reported incidents of injuries, beatings by officers, and nonpayment of salaries.

The law provides workers the right to form and join independent unions, bargain collectively, and conduct strikes. The government generally respected these rights with limitations. The law prohibits antiunion discrimination but does not provide for the reinstatement of workers fired for union activity. The law does not allow government workers and workers in essential services, such as law enforcement, judges, holders of public administration offices, health-care providers, and public utility employees, to strike. The law prohibits strikes during natural disasters, epidemics, and pandemics as well as in times of state emergency. Authorities may impose compulsory arbitration at the request of one party to a dispute. There are no particular groups of workers excluded from or covered differently by relevant legal protections.

The government and employers generally respected freedom of association and the right to collective bargaining. Worker organizations were independent of the government, political parties, employers, or employers’ associations. There were no reports that the government, political parties, or employers interfered in the functioning of workers’ organizations. Prosecutors may reject appeals by trade unions alleging antiunion behavior, and authorities did not punish alleged violations of the trade union law. Workers exercised the right to strike by conducting legal strikes.

There is a mechanism to monitor and enforce labor laws through the State Labor Inspectorate (SLI) and the Prosecutor General’s Office, but it failed to monitor effectively and enforce the rights to collective bargaining and to organize. The law does not provide effective sanctions for violations of freedom of association, or stipulate penalties for violating trade union rights. Penalties for the deliberate failure to negotiate and amend collective agreements or the violation of negotiated terms were not sufficient to deter violations.

The SLI does not have the authority to enforce penalties for violations of workplace health and safety concerns; this was delegated to 10 other state agencies according to their areas of expertise.

The law prohibits forced or compulsory labor, with exceptions. The law and a government decision allow central and local authorities as well as military bodies to mobilize the adult population under certain conditions, such as in the event of a national disaster, and to employ such labor to develop the national economy. The government did not invoke this provision during the year. Penalties for persons who engage workers in forced labor were sufficiently stringent to deter violations and were seldom imposed.

The government did not effectively enforce the law. Resources, inspections, and remediation for forced labor were generally inadequate. Men and women were subjected to labor trafficking to Russia, Turkey, Cyprus, and the United Arab Emirates. Internal trafficking occurred in all regions of the country, focused mostly on farms and begging in larger towns. Internal trafficking for begging and labor exploitation, particularly in the agriculture and construction sectors, was steadily on the rise. Official complicity in trafficking continued to be a significant problem that the government attempted to curb by prosecuting those involved.

Also see the Department of State’s Trafficking in Persons Report at https://www.state.gov/trafficking-in-persons-report/.

The minimum age for employment is 15. The law permits juveniles between the ages of 16 and 18 to work under special conditions, including shorter workdays (35 hours per week and no night, weekend, holiday, or overtime work). With written permission from a parent or guardian, 15-year-old children may work. Work for children who are 15 or 16 should not exceed 24 hours per week. Children younger than 18 are not allowed to perform hazardous and dangerous activities in 30 industries, including construction, agriculture, food processing, and textiles. The law prohibits the worst forms of child labor and provides for three to 15 years’ imprisonment for persons engaging children in such activities. Under aggravated circumstances, courts can increase the sentence to life imprisonment. These penalties were sufficient to deter violations.

Parents who owned or worked on farms often sent children to work in fields or to find other employment. Children left behind by parents who had emigrated abroad also worked on farms. The vast majority of child laborers worked in family businesses or on family farms.

Also see the Department of Labor’s Findings on the Worst Forms of Child Labor at https://www.dol.gov/agencies/ilab/resources/reports/child-labor/findings .

d. Discrimination with Respect to Employment and Occupation

The law prohibits discrimination based on sex, age, race, color, nationality, religion, political opinion, social origin, residence, disability, HIV-positive status, and membership or activity in trade unions, as well as other criteria. The law requires employers to provide for equal opportunity and treatment of employees without discrimination, to apply the same criteria to assess each employee’s work, and to provide equal conditions for men and women relating to work and family obligations. The law defines and prohibits both direct and indirect discrimination. Penalties were generally sufficient to deter violations.

Discrimination in employment and occupation occurred with respect to gender, disability, minority status, sexual orientation, gender identity, and HIV-positive status. The National Trade Union Confederation (NTUC) reported frequent cases of employers denying employment to pregnant women, since such employment was associated with additional benefits payable after childbirth.

The law also stipulates that the Council for Preventing and Eliminating Discrimination and Ensuring Equality be responsible for reviewing complaints of discrimination and making recommendations. As of September the council made decisions on 191 cases of alleged discrimination, 43 percent more than in 2018.

According to NTUC, as of October, salary arrears were more than 40 million lei ($2.27 million), with almost half the sum accounted for by the state forestry service.

The law sets the maximum workweek at 40 hours with overtime compensation; provides for at least one day off per week; and mandates paid annual leave of at least 28 calendar days (government holidays excluded). Different paid leave plans may be used in some sectors, such as education, health care, and public service. The law prohibits excessive compulsory overtime. Foreign and migrant workers have the same legal status as domestic workers.

The government sets occupational safety and health standards. According to labor law, workers can remove themselves from situations that endanger their health or safety without jeopardy to their employment.

The labor code requires work contracts for employment. There were no reports of work contracts in the agricultural sector, where the central government did not have an effective mechanism to monitor compliance.

Government efforts to enforce requirements for minimum wage, work hours, and occupational health and safety standards were limited and ineffective. The law requires the government to establish and monitor safety standards in the workplace, but there is no public reporting available on inspections for compliance with health and safety standards. Penalties for violations were insufficient to deter violations.

Inspectors from the SLI were required to give advance notice before conducting labor investigations and were generally prohibited from conducting onsite inspections if information sought could be obtained in writing, which undercut their enforcement ability. This legal change also distributed responsibility for occupational health safety controls to 10 sectoral inspection agencies, most of which did not have sufficient trained staff to carry out inspections. As a result, the SLI did not conduct any unannounced or onsite inspections in 2018 or from January to June, and the sectoral agencies conducted fewer than 100 such inspections. Authorities did not effectively enforce legal protections, and child labor remained a problem, especially in the agriculture and construction industries.

A thriving informal economy accounted for a significant portion of the country’s economic activity. According to the International Labor Organization, 30.9 percent of the total employed population had an informal job and 68.7 percent of those jobs were in the agricultural sector. Workers in the informal economy did not have the same legal protections as employees in the formal sector. There were no government social programs targeting workers in the informal economy.

Poor economic conditions led enterprises to spend less on safety equipment and to pay insufficient attention to worker safety. There is a consensus among stakeholders that after the change in the legislation governing labor inspections, occupational safety and health standards in the workplace worsened during the year. In the first nine months of the year, the SLI reported 352 work accidents involving 366 victims. The SLI also reported 18 work-related deaths. Enterprise committees investigated 266 cases of temporary incapacitation resulting from work accidents, involving 274 persons.