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Chilean Labour Reform Now In Force

Author:Mr Cody Mcfarlane
Profession:Harris Gomez Group

This month the new Labour Reform (Law No. 20.940) has went into force and a series of modifications to the Labor Code have been introduced which break down as follows:

The Labour Code incorporated has norms of protection to avoid discrimination acts at the work place. In this regard, article 2 is amended, increasing the list of behaviors considered as acts of discrimination in labour matters. Employees may request an exceptional work shift to the Labour Office (Dirección del Trabajo). This is the system used in all mine site were workers develop their work 24/7 nonstop. The reform reduces this resolutions from 4 to 3 years. There is now a possibility of a 4×3 work shift (work 4 and rest 3) for those companies where more than 30% of the workers are part of a union. Some of the rules to incorporate a trade union organization have been modified. It is relevant to point out that the quorum of workers required to incorporate a union will be 8 in middle size companies, which are those with less than 50 workers, representing at least 50% of the work force. The rules on the election of inter-company trade union delegates are modified, as the number of delegates can be chosen according to the number of union members in the companies and the jurisdictions. The number of delegates is abolished in companies in which there are no trade union organizations. There are new norms that set out the obligation to have women among the unions directors. The different conducts that can be considered as anti-union practices have been broadened. There are now new behaviors that can be classified as anti-union practices. Book IV of the Labor Code, relating to collective bargaining, has been replaced on the following issues: The right to negotiate has been extended for workers that are trainees. Agreements on common working conditions have been created. Mediation and arbitration have new regulations. Replacement of striking workers has been strictly limited. There is new regulation regarding the negotiation of casual workers, transients, intermediate unions and federations and confederations of workers. Several actions of the employer have been incorporated and are now considered as "unfair practices" in collective bargaining and will be sanctioned. The Fund for Trade Union Training and Collaborative Labor Relations has been created, which will be administered by the Ministry of Labor and Social Welfare. This fund has as its financial purpose...

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