Finance Ministry summons opposition over adjustment bill tying clause amid frictions

Chile's Finance Ministry has summoned opposition advisors for a Monday virtual meeting to explain the public sector adjustment bill's controversial 'tying' clause, following initial backlash from president-elect José Antonio Kast's team. The session aims to smooth congressional processing from January 5, while the presidential office orders political appointees to take pending vacations before March's government handover.

Building on earlier tensions where Kast allies like Republican Party president Arturo Squella decried the bill's provisions as a 'breach of trust' for limiting contract worker dismissals, Finance Minister Nicolás Grau has called advisors from the Chamber and Senate Finance committees, plus opposition leaders, to a virtual meeting on Monday, December 29, at 5 p.m. The goal is to preview the bill's content—without full text—to anticipate disputes ahead of its January 5 congressional debate.

Opposition parties RN, UDI, and Republicans confirmed attendance. RN deputy Frank Sauerbaum said the group would review over 100 norms post-meeting before deciding on engagement, criticizing the US$600 million budgeted against a US$1.5 billion cost. UDI's Felipe Donoso plans participation pending the final text, while Republican deputy Agustín Romero will send an advisor to promote transparency.

In parallel, Interior Minister Álvaro Elizalde instructed at Friday's cabinet that political appointees must not remain beyond March 11—the handover to Kast—and cannot defer vacations past February, distinguishing them from career staff protected by the tying clause. Elizalde rejected threats of constitutional accusations against Grau as 'absurd.'

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Dramatic illustration of UDI deputies Jorge Alessandri and Guillermo Ramírez confronting Finance Minister Nicolás Grau over the controversial 'tying law' in Chile's Congress.
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UDI threatens constitutional accusation against Grau over tying law

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UDI deputies Jorge Alessandri and Guillermo Ramírez warned they will file a constitutional accusation against Finance Minister Nicolás Grau if the government insists on reintroducing a provision that makes it harder to dismiss contract public servants in the public sector readjustment bill. This 'tying law', deemed immoral by the UDI, aims to secure jobs for government allies, sparking divisions within the opposition and criticism from the ruling coalition. The announcement, made on Thursday, plans to introduce the motion in March.

The Senate's Finance Committee started reviewing the public sector readjustment bill, presented by Finance Minister Nicolás Grau. Deputies approved a 3.4% gradual salary increase but rejected the 'tie-breaker norm' aimed at greater job stability. Opposition anticipates rejecting that provision again in the Senate.

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The Chamber of Deputies approved and dispatched the public sector readjustment bill to the Senate, including a gradual 3.4% salary increase. However, it rejected the controversial 'tie-down norms' pushed by the government, which plans to reintroduce them in the Upper House. Opposition lawmakers criticized the lack of clear funding for part of the fiscal cost.

Javier Milei's government expresses optimism for half sanction on its labor reform in the Senate this Wednesday (Feb 11), led by Patricia Bullrich's negotiations. Building on recent bloc strengthening, the initiative faces strong union backlash, including a CGT march, as the ruling party eyes modifications for passage.

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Building on assurances that changes won't affect acquired rights, Argentina's government detailed its labor reform adjustments to vacations, salaries, overtime, and indemnities. Secretary Maximiliano Fariña called it an update to an outdated law. Unions, including CGT and ATE, are escalating with a December 18 march and strike.

The government's inner circle met on Monday with Economy Minister Luis Caputo at the Casa Rosada to review details of the 2026 Budget and define its approval strategy in Congress. The meeting, led by Karina Milei, included key figures like Martín Menem and Patricia Bullrich, though President Javier Milei did not participate. The focus was on legislative support and consensuses with allied governors.

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The Argentine government estimates it has secured the support of five governors to pass the labor reform, while businesses negotiate changes with Senator Patricia Bullrich to avoid judicial challenges. The bill, aimed at modernizing labor legislation, will be debated in the Senate in February. Business chambers back the overall spirit but seek amendments to specific articles impacting collective bargaining and entity funding.

 

 

 

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