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Weekly Report - 12 May 2016 (WR-16-18)

CHILE: Setback for Bachelet over labour reform

President Michelle Bachelet has hit a major obstacle over a declared policy priority. Last week the constitutional court (TC) rejected aspects of the labour reform approved the previous month by the bicameral legislature, aimed at updating the existing legislative framework which dates back to the military government led by General Augusto Pinochet (1973-1990) [WR-16-11], which would have strengthened trade unions. Provoking outcry from the umbrella trade union Central Unitaria de Trabajadores (CUT), the TC’s ruling is a victory for the centre-right Chile Vamos opposition coalition and private sector. While the Nueva Mayoría coalition government has already said that it will veto aspects of the reform ruled unconstitutional and send down a new short law, with the CUT keeping a close watch on developments, the issue is again exposing divisions at the top.

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