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Labor Reform Summary

Author:Mr Jorge Arredondo Pacheco and Daniela Hirsch
Profession:Albagli Zaliasnik

One of the emphasis that is making the labor agenda today is determined by the changes being promoted with regards to collective labor law, aimed straight at the topics of workers' unions, collective bargaining and strike regulation.

Indeed, on December 29th 2014, the Executive Branch sent to the National Congress the "Modernization of the Labor Relations System Draft Bill" which introduces a number of substantive changes that want to be implemented in what refers to the collective labor rights, such as: replacement of striking workers, union representation, "minimum cap" of collective bargaining, among other subjects.

In view of the scale of the changes that have been announced in this area, as a law firm - and in what has become a usual practice-, we are constantly monitoring both the scope of the amendments and subsequent parliamentary discussion.

In that context, and having been almost a year since the start of the processing of this regulatory body (it is currently in the Labor Committee of the Senate, after being cleared by the House of Representatives on June 17th, 2015), through this Newsletter and attachment, we inform on the main emphasis as well as the condition of some amendments presented by the Executive Branch in the month of September this year. The attached document references the official presentations that were discussed during the processing of this project.

The draft bill is large, so addressing all the proposed changes would exceed the purpose of a Newsletter. Therefore, hereafter we will present the fundamental modifications and its current state, in no way referring yet to the final regulation that will be implemented.

  1. Modifications to the Strike

    The most significant change for companies, which brings about the draft bill, is in relation to the case of the strike, with the absolute ban on replacing -whether external or internal workers-, workers on strike, granting the Labor Inspectorate the power to require the immediate withdrawal of the replacement workers.

    Notwithstanding the foregoing, it was proposed to force the union to provide the staff necessary to meet the company's minimum services, which would allow the address of the necessary operations to prevent real and irreparable damage to material goods, facilities or infrastructure of the same, or to cause serious harm to the environment or the health of users of an assistential or health care establishment.

    The minimum services are determined jointly by the...

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