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.

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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Following initial backlash from president-elect José Antonio Kast's team, President Gabriel Boric's government detailed its protocol—part of the public sector adjustment bill—to protect career civil servants while ending trust positions on March 11, 2026. Ministers emphasized the measures formalize existing rules and require congressional approval.

The Chamber of Deputies began a tense session to debate the 2026 Budget, where the officialism achieved quorum and bets on a chapter-by-chapter vote. The opposition criticizes cuts in education, health, and disability, while defending derogations of recent laws. The Government projects 10.4% inflation and 5% GDP growth.

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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.

 

 

 

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