Law of the Economic and Social Council

LEGAL NATURE. The Economic and Social Council (CES) is created as a consultative body for permanent advisory and assistance to the Executive Branch, especially to the Economic and Social Cabinets and the National Council for Coordination and Articulation of Social Policies (CONCAPS), in cases corresponding to tripartite policies of economic and social content, within the scope of its functions, is an instance of dialogue and consensus-building on socioeconomic and labor matters, with indefinite duration, having functional, technical, financial and administrative autonomy for the fulfillment of its purposes, ascribed to the State Secretariat in the Offices of Labor and Social Security. It is identified with the acronym "CES", or simply as "THE COUNCIL".

INSTITUTIONAL SCOPE OF THE CES. The decisions of the Economic and Social Council (CES) may be taken into account after approval of draft laws that regulate socioeconomic matters, which have special significance in the regulation of such matters and other competencies designated in Article 4 of this law. In relation to State agencies, the Council's decisions are not binding.

OBJECTIVE. The main objective of the Economic and Social Council (CES) is to serve as a forum or instance of dialogue and social consensus-building, where proposals concerning the strategic vision, dimension, continuity and form of policies on socioeconomic and labor matters are analyzed and approved. The fundamental purposes of The Council are:

• 1)

  To provide continuity and strengthen this additional and complementary space for permanent social dialogue among productive sectors in relation to the design, implementation, monitoring and evaluation of public policies on economic and social aspects in Honduras;

• 2)

  To promote that the agreed opinions of the sectors are translated into or constitute public policies of an economic and social nature;

• 3)

  To promote that policies of an economic and social nature agreed upon by the State are of a permanent nature and constitute a national development strategy; and,

• 4)

  To ensure that international cooperation policies on economic and social matters are in harmony with the public policies that State agencies manage and implement in this matter.

COMPETENCIES. By virtue of the above, the CES must analyze matters referring to the following subjects:

• 1)

  Economic policy linked to the labor market;

• 2)

  Wage policy;

• 3)

  Employment policy;

• 4)

  Educational policy;

• 5)

  Security and social protection policy;

• 6)

  Training and professional and technical education for workers;

• 7)

  Promotion and increase of business competitiveness;

• 8)

  Improvement of the quality of life of workers; and,

• 9)

  Other strategic State matters that may be established within the Assembly.

GUIDING PRINCIPLES. The guiding principles of The Council are the following:

• 1)

  To promote social dialogue among the productive, labor and political sectors that comprise it, maintaining an open, respectful and constructive attitude towards the opinions of the different social groups that are heard;

• 2)

  In its composition to preserve the greatest possible representativeness of the sectors that participate in it;

• 3)

  To respect the decision-making and proposal mechanisms of each of the sectors that comprise it; and,

• 4)

  To monitor the results of the decisions adopted by the sectors that comprise it.

SCOPE OF ACTION. The Council has a national scope of action, having its headquarters in the capital of the Republic, and may convene in any place in the country if its members deem it appropriate.

FUNCTIONS. Within the framework of the aforementioned competencies, the Council may:

• 1)

  Issue non-binding opinions on: 1.1 Draft laws of the State that regulate socioeconomic and labor matters; 1.2 Draft laws or projects of administrative provisions that affect the organization, competencies or functioning of The Council; and, 1.3 Any other matter that, by express provision of a law or by order of the Government, must be consulted with said Council.

• 2)

  Formulate recommendations on: 2.1 Economic and social policies of the country; 2.2 Actions for the integration of productive sectors in the country's development process; and, 2.3 The solution of specific problems of national interest that are requested of it.

• 3)

  Fulfill the obligations of Convention 144 on tripartite consultation and other conventions signed and approved with the International Labour Organization (ILO). The Council may, at the request of any of the institutions that comprise it, in application of Article 11 of this law or on its own initiative, prepare studies, research and reports within the scope of its functions. The Internal Regulations of this body must regulate the procedure for their issuance. CHAPTER II INSTITUTIONAL STRUCTURE OF THE ECONOMIC AND SOCIAL COUNCIL

COMPOSITION. The Economic and Social Council (CES) is composed of:

• 1)

  The Assembly;

• 2)

  The Advisory Council;

• 3)

  The Technical Secretariat;

• 4)

  The Technical Committee; and,

• 5)

  The Sectoral Committees.

THE ASSEMBLY. The Assembly is the supreme authority of The Council. It is composed of the full body of all representatives who have the status of Principal Councilors and who represent the worker-peasant sector, business sector and government sector. It is directed by the President of The Council and in his absence by the Vice President. The functions of the Assembly are:

• 1)

  Determine the matters that are to be known by The Council in plenary;

• 2)

  Analyze and approve all opinions and consultations that The Council decides to issue, through the corresponding opinion;

• 3)

  Approve the Work Plan, Budget and Annual Report of Work prepared by the Technical Secretariat;

• 4)

  Approve the hiring of consultancies and advisory services that The Council Assembly decides to carry out, in accordance with the respective regulation;

• 5)

  Approve the audit of the budget executed within six (6) months after the end of the budget period;

• 6)

  Delegate to the Advisory Council the decisions and recommendations for the solution of specific problems of national interest that are requested of it;

• 7)

  Analyze activities and actions of urgent national concern that require the qualified approval of a specialized entity such as the CES; and,

• 8)

  Other functions contained in the Internal Regulations. The General Assembly of The Council has the capacity to issue its own provisions on internal labor and administrative matters.

QUORUM. The Council meets validly with no fewer than nine (9) of its members, which must include the President and the Executive Secretary.

COUNCILORS. Councilors are designated by the organizations of the productive, labor and government sectors to which they belong. The Assembly is composed of twelve (12) councilors who legitimately represent the following organizations: WORKER-PEASANT SECTOR:

• 1)

  One (1) representative of the General Central of Workers (CGT);

• 2)

  One (1) representative of the General Confederation of Workers of Honduras (CTH);

• 3)

  One (1) representative of the Unitary Confederation of Workers of Honduras (CUTH); and, 4) One (1) representative designated by mutual agreement by the National Peasant Council (CNC) and by the Coordinating Council of Peasant Organizations of Honduras (COCOCH). GOVERNMENT SECTOR:

  • 1)

    One (1) representative of the State Secretariat of the Presidential Office;

  • 2)

    One (1) representative of the State Secretariat in the Offices of Labor and Social Security;

  • 3)

    One (1) representative of the State Secretariat in the Office of Finance; and, 4) One (1) representative of the State Secretariat in the Offices of Industry and Commerce. BUSINESS SECTOR: 1) Four (4) representatives of the Honduran Business Council (COHEP). The members of The Council, in the exercise of the functions that correspond to them, act with full autonomy and independence. Each representative has a corresponding alternate, who must attend The Council's sessions in the absence of the principal, having the right to voice and vote. The Assembly may hire specialized advisors that it considers necessary for its functioning.

APPOINTMENT AND FUNCTIONS OF COUNCILORS. Councilors are appointed for three (3) years, and may be replaced or reappointed for successive periods. Those who have kinship within the fourth degree of consanguinity and second degree of affinity with each other cannot be members of The Council. All members of The CES must perform their functions on a voluntary basis. Everything else related to functions, rights, duties, absences, substitution and removal of councilors must be established in The Council's Internal Regulations.

PRESIDENT. The members of The Council must elect from among themselves a President who serves in his functions for one (1) year from the day of election. The Presidency of The CES is rotating among the constituent sectors, in successive one-year periods and is the spokesman for the Council.

VICE PRESIDENT. The members of The Council must elect from among themselves, likewise, a Vice President who serves in his functions for one (1) year from the day of election. The Vice Presidency of The CES is different from the Presidency, among the constituent sectors and distinct from the sector to which the Presidency corresponds, in successive one-year periods. He must substitute the President in his absence.

ADVISORY COUNCIL. The Advisory Council is the principal advisory body of THE Council on socioeconomic and labor matters of vital importance for the harmony and national social peace, in accordance with the express mandate of the Assembly. In relation to the other bodies of THE CES, the decisions of the Advisory Council adopted by consensus are binding in nature. The Advisory Council is composed of the following principal councilors and in case of absence by their alternates as follows:

• 1)

  The President of the Economic and Social Council (CES);

• 2)

  The Secretary of State of the Presidential Office with the status of principal and the Secretary of State in the Offices of Labor and Social Security as alternate;

• 3)

  A General Secretary of Workers and or Peasants; and,

• 4)

  The President of the Honduran Business Council (COHEP). The members of the Advisory Council are appointed for three (3) years, and may be replaced or reappointed for successive periods. The Advisory Council meets validly with no fewer than three (3) of its members. The Executive Secretary acts as Secretary of the same in its meetings. The functions of the Advisory Council must be regulated in the respective regulation.

TECHNICAL COMMITTEE. It is the body whose main function is to promote and execute what is approved by the Assemblies and the Advisory Council, materializing the attributions of said instances. It is composed of the Executive Secretary of The Council who coordinates it and the necessary councilors representing each sector. The Technical Committee is strengthened in the technical area through the contracting of specialized consulting services on strategic issues in the economic, social, and labor fields. The Technical Committee has the following functions:

• 1)

  To examine and suggest in preliminary form the issues or matters that should be submitted to the Assembly;

• 2)

  To review and analyze the issues assigned by the Assembly of THE CES;

• 3)

  To advise and provide technical assistance to the Advisory Council and the Assembly on matters of interest related to economic, social, labor, legal, and political issues;

• 4)

  To deliberate on studies and reports on matters contained in Article 4 of the present Law and referred by the Technical Secretariat;

• 5)

  To define and follow up on studies or consultations that must be conducted to address a matter submitted to the knowledge of the Assembly, as well as matters submitted to specific commissions;

• 6)

  To create sectoral boards when the nature of the issue or matter requires their formation prior to being known by the Assembly;

• 7)

  To review and approve the systematizations and publications prepared by the Technical Secretariat; and,

• 8)

  Other functions that may be established by the Assembly and the Advisory Council.

TECHNICAL SECRETARIAT. The Technical Secretariat is the executive and administrative body of The Council. Its function is to execute all decisions adopted by the Assembly and Advisory Council. It directs and coordinates the administrative activities of THE CES and represents it legally. The person designated to lead this Secretariat is appointed by the Assembly and must meet the requirements to be Executive Secretary in accordance with what is established in the respective regulations. Among the functions of the Executive Secretary are:

• 1)

  To perform secretarial activities of the Assembly, Advisory Council, Technical Committee, and the Presidency, as well as other activities assigned to it where the Assembly participates;

• 2)

  To systematize minutes, resolutions, documents, and records;

• 3)

  To organize, conduct, and oversee all types of documentation and technical work of sectoral boards, consultants, and other materials presented before the Technical Committee for its deliberations and decisions; and, 4) To convene the composition of a new Assembly at the end of the term of its functions or to make the call to fill permanent vacancies. The Technical Secretariat is composed of: 1) Permanent Secretariat:

  • a)

    Executive Technical Secretary;

  • b)

    Administrative Assistant; and,

  • c)

    Technicians in different specialties. 2) Sectoral Boards. The functions of this personnel must be contemplated in the respective Internal Regulations.

SECTORAL BOARDS. The Sectoral Boards function based on demands from society and the sectors to address specific issues. They are composed of representatives of the sectors that make up THE Council and by consultants hired to provide technical support. The existence of the boards depends on the matters treated by THE CES in accordance with Article 3 of the present law, the annual work plan, and the specific needs that may emerge. When the Technical Committee considers that the particularity of an issue or matter requires special treatment, it must form ad-hoc sectoral boards and proceed to: 1) Convene each sector to appoint its representatives who will be integrated into the corresponding sectoral boards; 2) Request from the pertinent institutions and organizations that they provide the required information; and, 3) Propose, if necessary, the hiring of technical consultants in accordance with the nature of the matter to be addressed. The Sectoral Boards have issues or matters submitted for their consideration, fulfilling the following functions:

• 1)

  To conduct an in-depth analysis on the issue or matter to be addressed;

• 2)

  To produce the bases for the report;

• 3)

  To make general and specific recommendations; and,

• 4)

  Any other function that may be specifically granted by the Technical Committee or the Assembly.

SYSTEMATIZATION, MINUTES, RESOLUTIONS, DOCUMENTS, AND RECORDS. The Executive Secretary is responsible for the systematization of all deliberations held in the Assembly, Advisory Council, Technical Committee, and Sectoral Boards. The Executive Secretary is also responsible for producing minutes, resolutions, and records that document what has been addressed in these bodies and that serve as inputs for deliberations.

CONSULTATIONS. The members of The Economic Council must ensure that the consensus reached within it has the direct support of those represented, in order to contribute to social dialogue and the fulfillment of its objectives. On the agenda of ordinary meetings of the Assembly, the consultation of matters may be assumed that, without a specific request from any body of the State, it is necessary to study, debate, and opine upon, within the scope of its competence.

ORDINARY MEETINGS. The Assembly must meet ordinarily at least once every three (3) months and the Advisory Council once (1) per month, both instances must adopt their decisions by consensus. The Technical Committee must hold meetings once per month and the Sectoral Boards as many times as necessary until the express mandate assigned to them is completed. Each year, the Assembly and the Advisory Council must prepare a calendar of ordinary meetings. When necessary, extraordinary meetings may be held. Depending on the subject to be addressed, THE CES may invite different persons to the meetings.

RESOLUTIONS AND OPINIONS. All resolutions and opinions of The Council must be adopted by consensus.

COUNCIL PUBLICATIONS. The Council must establish, through the Technical Secretariat, publications in different media, where its resolutions and other matters of interest related to its competencies and functions must be disseminated.

ADVISORY AND ASSISTANCE BODY. The Council is created as a consultative body of permanent assistance and advice to the Executive Branch, and may collaborate and provide advice and assistance to the central government, autonomous and decentralized institutions that request it.

BUDGETARY REGIME. The Government of the Republic must include annually and prospectively in the General Budget of Income and Expenditures of the Republic, an allocation as an appropriate contribution, so that it fully covers the operating expenses of The Council through the State Department in the Offices of Labor and Social Security. THE CES may receive additional contributions from other national and foreign sources for its operation and institutional strengthening.

REGULATIONS. The Council has full freedom to prepare its Internal Regulations and other organizational rules that may be appropriate, and once approved, it shall submit them to the State Department in the Offices of Labor and Social Security for immediate publication.

EFFECTIVE DATE. The present Decree shall enter into force as of the day of its publication in the Official Gazette "La Gaceta". Given in the city of Tegucigalpa, municipality of the Central District, in the Chamber of Sessions of the National Congress, on the thirteenth day of the month of January of Two Thousand Fourteen. MAURICIO OLIVA HERRERA PRESIDENT, BY LAW GLADIS AURORA LÓPEZ CALDERÓN SECRETARY ÁNGEL DARIO BANEGAS LEIVA SECRETARY Let it be sent to the Executive Branch on the date of March 3, 2014. Therefore: Execute. Tegucigalpa, M.D.C., March 24, 2014. JUAN ORLANDO HERNÁNDEZ ALVARADO PRESIDENT OF THE REPUBLIC THE STATE SECRETARY IN THE OFFICES OF LABOR AND SOCIAL SECURITY CARLOS MADERO