Illustration of tense standoff between Boric government officials and Kast's Republican team over public sector bill restrictions in Chile.
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First frictions between Boric government and Kast team over public readjustment

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Gabriel Boric's government included provisions in the public sector readjustment bill restricting civil servant dismissals, drawing criticism from president-elect José Antonio Kast's team, who call them a breach of trust. Arturo Squella, Republican Party president, warned that these measures undermine relations between administrations. The executive defends them as formalizing existing rules.

The public sector readjustment bill agreed by Gabriel Boric's government with most unions includes a 3.4% salary increase in two stages: 2% from December 2025 and 1.4% from June 2026, with no real increase given inflation. However, the protocol's end adds provisions limiting non-renewal of contracts or changes in terms for subsecretaries, public services, presidential delegations, state universities, and municipalities, requiring justified administrative acts based on objective criteria.

Civil servants with at least two continuous years can claim legality flaws before the Comptroller General, unless pursuing judicial action. It also regulates advisory staff in high officials' cabinets, setting dismissal causes and transparency mechanisms.

Kast's team reacted strongly. Arturo Squella stated that 'that article breaks or puts at risk the trusts so important at this stage' and called the norm 'impresentable' for attempting to lock in hires. He added that if the government persists, 'nothing could be built' after March 11. Republican deputy Agustín Romero labeled it a 'fraud' rigidifying administration to keep 'the State infiltrated with its political operators'.

UDI deputies announced rejection, arguing it seeks to secure politically linked officials' permanence. The Labor Ministry explained it 'does not change current rules: it formalizes in law what has been discussed or incorporated through ministerial instructions, Comptroller rulings, and court decisions'. Anef's José Pérez defended it as addressing historical demands for job stability.

Parallel criticisms arose over funding: the readjustment costs US$1.5 billion, but only US$600 million is budgeted, per deputies like Frank Sauerbaum (RN). Finance Minister Nicolás Grau assured it will be funded.

These frictions add to exchanges on women's rights, where Minister Antonia Orellana criticized the Republican Party and the First Lady's return, responded to by Squella urging outgoing ministers to watch their statements.

Watu wanasema nini

Discussions on X criticize the Boric government's inclusion of provisions in the public sector readjustment bill restricting civil servant dismissals, labeling it a 'norma de amarre' to protect political operators and undermine president-elect Kast's plans. Right-leaning users express outrage, calling it undemocratic and a breach of trust, while some note it formalizes existing rules but question the timing. High-engagement posts from news outlets and commentators highlight early frictions between the administrations.

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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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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 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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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.

Building on the Senate committee's recent dictamen approval excluding a controversial Deputies-rejected chapter, Patricia Bullrich is urgently mending ties with PRO, UCR, and governors upset over exclusive deals, ahead of the December 26 session on the 2026 Budget and Fiscal Innocence Law.

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Following the delay in submitting the bill, the Argentine government insists its labor reform will not affect acquired rights, countering CGT's accusations of deception over Minister Sturzenegger's remarks. Kirchnerists advance a rival proposal in the Senate as unions plan a December 18 march.

 

 

 

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