Uruguay - Working conditions

The Uruguayan workforce is highly skilled and educated. The nation's literacy rate, 97 percent, is the highest in Latin America and comparable to that of the United States. There is some evidence of racial and gender disparity. The nation's blacks have an unemployment rate 1.5 times higher than that of the general population, and their average pay is 20 percent lower than their white counterparts in the same occupations. While women have full equality under the law, they face discrimination in hiring, promotion, and wages. A government study in 1999 found that women receive only 65 percent of the pay men receive in similar occupations.

There is little legislation concerning unions in Uruguay, although workers have the right to strike and to collective bargaining. About 15 percent of the work-force is unionized, mainly those employed in construction, industry, and banking. Union membership in the public sector is almost 80 percent, but the rate for private companies is 5 percent. All employees, including those who work for the government, may join unions. The government has the legal power to end a strike if it poses a threat to public welfare. Although workers may organize in the nation's free-trade zones, there are no unions in these areas. Foreign workers have the same rights and legal protections as Uruguayans.

The nation's minimum wage is equivalent to US$93 per month, not enough to support a family, though the overwhelming majority of workers earn more than the minimum. Uruguay's standard work week is 48 hours in industry and 44 hours in commerce. In both sectors, workers must have a minimum 36-hour rest period per week and they receive overtime pay for excess hours worked. All workers are entitled to a minimum of 20 days paid vacation per year. The national retirement age is 60. Because of the country's extensive social security system, employers must pay taxes that equal 50 percent of each worker's pay.

The government forbids forced labor and child labor under the age of 14. Children 16 and older may work if they have completed 9 years of compulsory education. Some children drop out of school and work illegally on the streets as vendors or beggars. The nation has started a program to pay parents $83 a month in exchange for taking these children off the streets and returning them to school. In order to encourage employers to hire more youths, the government provides tax reductions of 12-18

Household Consumption in PPP Terms
Country	All food	Clothing and footwear	Fuel and power a	Health care b	Education b	Transport & Communications	Other
Uruguay	22	7	14	11	30	12	3
United States	13	9	9	4	6	8	51
Brazil	22	13	18	15	34	4	-6
Paraguay	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Data represent percentage of consumption in PPP terms.
a Excludes energy used for transport.
b Includes government and private expenditures.
SOURCE: World Bank. World Development Indicators 2000.

percent on social security taxes for these employees. Unemployment in 2000 was 12 percent and about 0.5 to 2 percent higher in Montevideo and other urban areas. GDP per capita in Uruguay is equivalent to US$8,500.