Kast government withdraws ramal negotiation bill amid opposition criticism

José Antonio Kast's government withdrew the ramal negotiation bill, approved by the Chamber of Deputies' Labor Commission on March 3, drawing opposition criticism for allegedly restricting workers' rights. Lawmakers like Luis Cuello and Gael Yeomans question the move and demand explanations from the executive. The government argues it prioritizes job creation amid high unemployment.

On March 3, the Chamber of Deputies' Labor Commission approved in general the ramal negotiation bill, submitted by Gabriel Boric's government. The initiative aimed to allow workers and employers in the same economic sector to agree on minimum standards for work conditions, occupational health and safety, salaries, wealth distribution, and productivity. It was praised by the former ruling coalition and the Central Unitaria de Trabajadores (CUT), but on Tuesday the new government withdrew it from the legislative agenda, as reported by La Tercera. Opposition lawmakers reacted strongly. Deputy Luis Cuello (PC), a commission member, requested an official letter to the government to explain the constitutional powers used, citing a report from the Fundación Jaime Guzmán. “There is no faculty in the Constitution to withdraw a bill,” Cuello stated, adding it is “a clear signal that we are facing a government that does not believe in social dialogue.” Deputy Gael Yeomans (Frente Amplio) claimed “the withdrawal of the ramal negotiation bill is a mandate from the CPC” and criticized the government's labor agenda. Deputy Boris Barrera (PC) called it a “bad signal” from a government for “the richest.” From the executive, the minister secretary general of the Presidency, José García Ruminot, explained: “The government's main duty in employment matters is to create new jobs,” and that the withdrawal provides “greater certainty” for SMEs to hire. Labor Minister Tomás Rau warned that setting high salary floors could make many SMEs unsustainable, leading to informality or closures. President José Antonio Kast reinforced: “Is ramal negotiation urgent today? We believe not,” citing over 850,000 people without formal employment and the need to prioritize jobs and security.

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Illustration depicting tension in Chile's Congress as the 'amarre law' loses officialism support and faces rejection, with debating politicians and protesters.
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Chile's amarre law loses support in officialism

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The so-called 'amarre law', aimed at securing public sector contracts, is collapsing within the officialism and is expected to be rejected in Congress. PPD deputy José Toro criticized the agreement with the public sector, while business guilds question the government's insistence on ramal negotiations. This norm affects nearly 70% of central government officials, mostly on contract and professionals.

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.

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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.

The Argentine government delayed sending the labor reform bill to Congress due to President Javier Milei's absence and last-minute negotiations with the CGT. The initiative might be discussed in committees next week, but approval before year's end is unlikely. The labor union rejects the draft and is pushing for changes to sensitive points.

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Javier Milei's government-backed labor reform passed half-sanction in the Senate with 42 votes in favor and 30 against, now heading to the Chamber of Deputies amid union opposition. The CGT will meet on Monday to consider a 24-hour general strike during the debate, as unions like UOM demand mobilizations. In the economic context, 22,000 companies have closed and 290,000 jobs lost in two years.

ADIMRA president Elio del Re questioned aspects of Javier Milei's labor reform, particularly ultraactividad for SMEs that creates uncertainty. As the government accelerates Senate negotiations for a February 11 session, labor lawyers reject the bill as unconstitutional. Industrial and legal opposition highlights complexities in the current text.

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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.

 

 

 

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