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New labor reform in Chile: 9 things to consider

► 1) Principal Labor Union

It is forbidden the existence of bargaining groups in those companies within the Labor Union. These, in turn, will negotiate collectively on behalf of their members. Workers may join and leave freely and at any time. In addition, it is recognized the right of the union intercompany to negotiate with the firm in which they have the number of members equivalent to what is required to the Labor Union of Enterprise to negotiate on it.

► 2) Benefits for unionized:

The benefits acquired in the framework of collective bargaining shall be granted to unionized workers. They will also extend to workers who join later. Non-unionized workers can have access to the new contract, partially or totally, only with a previous agreement between the Labor Union and the employer. To gain access to the benefits, workers without Union membership must accept and pay the proportion or the total amount of the union quota. The unilateral extension of the employer will constitute an anti-union practice.

► 3) Simplification of the procedure:

The collective bargaining will be simplified, recognizing the principle of good faith. The new procedure considers these stages: request of information to the company to prepare the negotiation, presentation of the project of collective agreement, the employer response, period of negotiations, strike vote. In parallel, the instruments and options of mediation will be strengthen, establishing that the parties at any time, will have the right to request voluntary mediation by common agreement; compulsory (once voted the strike and at the request of either party) and forced (in the cases of breach of the principle of good faith)

► 4) Right to strike and minimum services:

The initiative removes the right of the employer to replace workers on strike, with own or external employees of the company. It proposes a bilateral procedure for the qualification of companies that may prohibit the strike, establishing the right of the parties to a complaint procedure before the Court of Appeals. It also includes a procedure of compulsory arbitration for the workers of companies that cannot exercise the right to strike, and those of smaller size in charge of an arbitration body that will be governed by a new regulation.

It is established the duty of the Labor Union to provide the necessary personnel to fulfill the “minimum services” which can address the essential operations.

►► 5) Trading basis

The employer response to the proposal of the workers shall not contain stipulations under the basis of negotiation constituted by the collective agreement in force. In case this instrument does not exist, the basis of negotiation will be the response of the employer. From this point, it is excluded from the basis the adjustability, the royal increase agreed in the in force contract, the deals about special working conditions and the bargaining term bonus

After presented the response from the employer, the parties may, under the economic conditions of the company, negotiate modifications regarding the basis of negotiation.

► 6) Adaptability agreed:

The parties may negotiate agreements of special working conditions in companies where there is a Union membership contract, in regime of, 30% of the total workforce of the company. The application of this filter will be gradual: to be able to expand the subjects to negotiate, it will be required in the first year of force a 65% of Union membership, in the second year a 50% and in the third year 40%. The agreements can be only applied to workers in the companies that are part of unions that already negotiated the agreement. To apply it to the others, an individual agreement is required, with approval of the TD. Although if it is accepted by the 50% plus one of the workers without trade union membership, all those who did not attend the agreement will be able to govern.

► 7) Trade Union leave:

The hour for labor union activities which today are referred to as “labor union leave”, will be called now “Labor Union working hours”. Working hours of Association for Union training in large companies will be extended from 1 week to 3 weeks during the year.

► 8) Equal opportunities:

The Government seeks to ensure the integration of a woman worker that is associated with the organization or organizations trading in the Negotiating Labor Commission, in the event that, according to the General rules, this one is not integrated by any woman. Therefore it is necessary to choose a female representation to join the Commission, in accordance with the respective bylaws. It will also incorporate the right of labor unions to request to the companies information on equality of remuneration between men and women.

► 9) More coverage:

The current prohibition to negotiate apprentice’s workers is eliminated – in large companies-, for work or temporary work and positions of trust. On this last point, a general restriction will be stipulated, only affecting those who have representation and management power on the company, as managers and assistant managers.

2017-09-18T13:23:47+00:00 15/05/2015|Latest news|