LatinNews Daily Report - 15 August 2013

ECONOMY | Minimum wage approved. On 14 August both chambers of Chile’s legislature approved the government’s minimum wage proposal, increasing the current monthly rate of Ch$193,000 (US$381) to C$210,000 (US$411). This is the second minimum wage proposal put forward by the President Sebastián Piñera government this year, after congress rejected its previous offer of an increase to C$205,000 (US$401). Its approval is a bonus for President Piñera given that his government’s perceived failure to address inequality remains a major voter complaint, ahead of the 17 November general elections. Piñera previously said that the latest offer represented a nominal readjustment of 8.8%, or 7.9% in real terms (based on annual inflation in the 12 months to May 2013), but the new wage is still far below the C$250,000 (US$489) demanded by the country’s main labour union, the Central Unitaria de Trabajadores (CUT). Previously Piñera had said that there has been an average 4% real increase in salaries since he took office in March 2010 and that if this “rhythm of nominal readjustment is maintained, we could reach the figure of C$250,000 by 2015”.

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