Business guilds criticize government's insistence on ramal negotiation

Chilean business guilds voiced opposition to the government's announcement to introduce a ramal or multi-level collective bargaining bill on January 5, 2026, claiming it will have negative effects on employment. CPC President Susana Jiménez called it a political gesture unlikely to succeed, while Sofofa and CCS leaders warned of rigidities and costs for SMEs.

The Chilean government confirmed its plan to submit a ramal or multi-level collective bargaining bill to Congress on January 5, 2026. This initiative aims to reform collective bargaining by allowing agreements at the sectoral or ramal level, but it has drawn sharp criticism from business guilds, who warn of adverse effects on the labor market.

CPC President Susana Jiménez stated that "the announcement is a nod to its political sector, because the deadline for submission indicates that the government does not expect this project to prosper." She added that "this does not detract from the concern that it insists, as it goes against strengthening the labor market, generating more job opportunities, and reducing the informality rate." Jiménez stressed that "there is no precedent to foresee a positive impact on employment; on the contrary, it will affect entry into the labor market."

Sofofa President Rosario Navarro highlighted Chile's context of informality exceeding 26% and persistent unemployment. "Any labor reform must focus on generating more formal employment and better growth conditions," she said. Navarro criticized the bill for moving in the opposite direction, citing rising labor costs from regulations like minimum wage increases and reduced working hours.

CCS President María Teresa Vial joined the concerns: "We view the government's proposed ramal collective bargaining project with concern, as a multi-level model, as proposed, does not reflect the high heterogeneity of commerce and services." She warned that it will impose rigidities and costs, particularly affecting small and medium-sized enterprises, discouraging formal hiring, and limiting investment.

Despite the opposition, Jiménez noted that the CPC is willing to participate in legislative debates to present their positions, arguing that the initiative harms the country's development.

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