15
with.40 Additionally, the Court observes that these judicial rulings and the negotiated
agreement between the parties determined that the salary scale should be applied as of
June 12, 1989. These judicial rulings and the aforementioned agreement were executed
up until the salary scale system was repealed on November 26, 1992, the details of
which will be examined next.
1.2.
Repeal of the salary scale system though a law applied retroactively
58.
The repeal of the salary scale system involves three decrees. The first decree was
issued by the Executive Branch on November 8, 1991, and published on December 12,
1991, and came into force the day after publication, that is, on December 13, of said
year. The law was titled Legislative Decree No. 757, or the “Framework Law for Growth
of Private Investment.” Among other things implemented through this law were rules on
the establishment of “remuneration improvements.”41 In the part relevant to this case,
the Decree established the following:
“The increases in prices and fees or remunerative improvements will be subject to the following
rules:
[…]
b) Collective labor pacts or agreements shall not contain automatic fixed remuneration
adjustment systems linked to changes in price indexes; nor shall they be agreed upon in or
linked to foreign currency. In keeping with Article 1355 of the Civil Code, private sector
companies and workers governed fully or partially by laws, agreements or clauses to that effect
shall substitute them for a system of fixed remuneration according to the increase in production
and productivity of each company.”
59.
The second decree was issued by the Executive Branch on June 5, 1992 (Law
Decree No. 25541) and published on June 11, 1992.42 Article 1 of that decree
established the following:
“Let it be clear that laws, agreements or clauses establishing automatic adjustment of
remuneration according to changes in prices, the value of foreign currency and other elements
of a similar nature concluded in their application on December 13, 1991, the date on which
Legislative Decree No. 757, the Framework Law for Growth of Private Investment, went into
effect.”
60.
The third decree was issued on November 10, 1992, by the “Emergency and
National Reconstruction Government” (Law Decree No. 25876) and published on
November 25, 1992, and therefore came into effect on November 26, 1992.43 This
decree modified Article I of Decree Law No. 25541 by adding the following: “Let it be
specified and clarified that [...] negotiations or judicial or administrative rulings
establishing automatic readjustment systems were [also] definitively concluded in their
application and execution on December 13, 1991, the date on which Legislative Decree
No. 757 took effect.” Decree 25876 “enter[ed] into force on the day following its
publication in the Official Gazette,” that is, on November 26, 1992.
40
The experts presented by the State and and the representative agree in that “there is no objection
regarding the application of the system of salary scales for the period before January 1992.” Expert report of
Mr. Félix Daniel Aquije Soler, supra note 29, folio 2573, and Expert report of March 29, of 2010, drafted by
Mrs. Lily Isabel Albornoz Castro (case file of annexes to the brief of pleadings and motions, tome VI, annex 2,
folios 1625).
41
Legislative Decree No. 757, 1992 (case file of annexes to the application, tome I, annex 7, folio 63).
42
Law Decree No. 25541, 1992 (case file of annexes to the application, tome I, annex 8, folio 70).
43
Decree Law No. 25876 (case file of annexes to the application, tome I, annex 8, folios 72 and 73).