Chile

Freedom of Association Indicator

The Labour Rights Index 2024 (LRI 2024) is a de-jure index covering 145 economies and structured around the working lifespan of a worker. In total, 46 questions or evaluation criteria are scored across 10 indicators. The overall score is calculated by taking the average of each indicator, with 100 being the highest possible score. The Index uses a rating system, ranging from “Total Lack of Decent Work” to “Decent Work”. The Labour Rights Index aims at an active contribution to the Sustainable Development Goals, by providing necessary (complementary) insights into de jure provisions on issues covered in particular by SDG8 (Decent Jobs), SDG 5 (Gender Equality), SDG 10 (Reduced Inequalities) and SDG 16 (Strong Institutions). The Index is based on national labour legislation, applicable on 1 January 2024.

Chile’s overall score is 82.5 out of 100. The overall score for Chile is greater than the regional average observed across Latin America and The Caribbean (73). Within Latin America and The Caribbean, the highest score is observed in Brazil (85.5).

Chile ratified Convention No. 87 on Freedom of Association and Protection of the Right to Organise (1948) in 1999 and Convention No. 98 on the Right to Organise and Collective Bargaining (1949) in 1999.

Question

Answer

Score

Legal Basis

More Info

Does the law allow workers to form and join unions of their own choice?

Yes

1

§19(19), Constitution of Chile 1980; §212-222 & 227, Labour Code 2002; CEACR, C87, DR 2023; ITUC Global Rights Index 2024 (Chile Profile)

Does the law allow workers to bargain collectively with employers through their representative unions?

No

0

§19 of the Constitution of Chile, 1980; §303-344 of the Labour Code 2002; Law No. 20.940 of 2016; CEACR, C98, Obs. 2023; USDOS CRHRP 2023 (Chile)

Does the law provide for the right to strike?

No

0

§19 of the Constitution of Chile, 1980; §345-354 of the Labour Code 2002; CEACR, C87, DR 2023; CEACR, C87, Obs. 2023; ITUC Global Rights Index 2024 (Chile Profile); USDOS CRHRP 2023 (Chile)

Does the law prohibit imposing of excessive sanctions against striking workers?

Yes

1

§183-P & Q and 355-358 of the Labour Code 2002; USDOS CRHRP 2023 (Chile); CEACR, C87, Obs. 2023

Textual sources

A : National Law

National Labour Legislation

B : CEACR

CEACR: ILO Committee of Experts on Application of Conventions and Recommendations (latest report)

C : ITUC

ITUC: ITUC Global Rights Index

D : USDOS

USDOS: US Department of States' Country Reports on Human Rights Practices

LRI Country Score
The Labour Rights Index has 10 indicators and 46 sub-indicators. The LRI Country score averages 10 indicators and ranges between 0 and 100. The lowest and highest scorers are Nigeria (29/100) and Belgium/Greece (96/100). https://labourrightsindex.org/  

Freedom of Association Indicator
The Freedom of Association indicator is composed of 4 sub-indicators. Scoring is done through the binary method (0 or 1). The score ranges between 0-100. 

Trade union density rate (%)
The trade union density rate conveys the number of union members who are employees as a percentage of the total number of employees in the country. For updated statistics on trade union density, please check ILOSTAT

Collective bargaining coverage rate (%)
The collective bargaining coverage rate conveys the number of employees whose pay and/or conditions of employment are determined by one or more collective agreement(s) as a percentage of the total number of employees in the country. For updated statistics on collective bargaining coverage, please check ILOSTAT

SDG indicator 8.8.2
SDG indicator 8.8.2 measures national compliance with fundamental labour rights (freedom of association and collective bargaining or FACB). It ranges from 0 to 10, with 0 being the best possible score (indicating higher levels of compliance with FACB rights) and 10 the worst (indicating lower levels of compliance with FACB rights). It is based on six ILO supervisory body textual sources and national legislation.
For an updated assessment on SDG indicator 8.8.2, please check ILOSTAT. 

ITUC Global Rights Index 2024 Ratings
The ITUC Global Rights Index depicts the world’s worst countries for workers by rating 148 countries on a scale from 1 to 5+ on the degree of respect for workers’ rights. Violations are recorded each year from April to March.  For a detailed description of ratings and methodology, please follow the link

Information

Source: §19(19), Constitution of Chile 1980; §212-222 & 227, Labour Code 2002; CEACR, C87, DR 2023; ITUC Global Rights Index 2024 (Chile Profile)

A : National Law

National Labour Legislation

"Art. 227. The establishment of a union in a company with more than fifty workers will require a minimum of twenty-five workers who represent at least ten percent of the total number of workers who provide services therein. Notwithstanding the foregoing, in order to establish such a union in companies where there is no existing union, at least eight workers will be required, and the quorum required in the previous section must be completed within a maximum period of one year, after which its legal personality will expire, by operation of law, in the event that said requirement is not met. If ​​the company has fifty workers or less, eight of them may form a union, provided that they represent at least 50% of the total number of workers. If the company has an odd number of workers, the indicated percentage will be calculated on the even number immediately preceding that. In companies where there is no union, the provisions of the preceding paragraph shall apply. For the purposes of calculating the total number of workers in the company, those who are prevented from collective bargaining in accordance with article 305 shall be discounted, without prejudice to the right of these workers to join a union organization. If the company has more than one establishment, the workers of each of them may also form a union, with a minimum of twenty-five workers representing at least thirty percent of the workers of said establishment. Without prejudice to the above, whatever the percentage they represent, two hundred and fifty or more workers of the same company may form a union. "

B : CEACR

CEACR: ILO Committee of Experts on Application of Conventions and Recommendations

"After observing that Act No. 20.940 (Modernization of the Labour Relation System) introduces a new requirement for the establishment of trade unions in enterprises with 50 or fewer workers, adding to the current requirement of at least eight workers an additional requirement to represent a minimum of 50 per cent of the total number of workers (section 227 of the Labour Code), and that several trade union organizations denounced the fact that the additional requirement that has been introduced makes the establishment of workers’ organizations difficult, the Committee requested the Government to provide practical information on the impact of this new requirement for the establishment of unions in enterprises with 50 or fewer workers. The Committee notes that the Government cites a 2017 Opinion of the Directorate for Labour, which indicates that: (i) the new requirement responds to the need to encourage the establishment of more representative organizations with increased autonomy to promote the defence of collective interests and more equitable labour relations within the enterprise; (ii) in enterprises where there is no trade union, an organization with a minimum of eight workers may be established, and must achieve the required quorum within one year; and (iii) for the purposes of calculating the total number of workers in the enterprise, those prevented from collective bargaining must be deducted, without prejudice to their right to join a trade union organization. "

C : ITUC

ITUC Global Rights Index (country legal profile)

"Law No. 20940 introduced a new requirement for the creation of unions in companies with 50 workers or less, adding to the current requirement of a minimum of eight workers the additional requirement of representing a minimum of 50% of the total number of workers (Article 227 of the Labor Code)."

Information

Source: §19 of the Constitution of Chile, 1980; §303-344 of the Labour Code 2002; Law No. 20.940 of 2016; CEACR, C98, Obs. 2023; USDOS CRHRP 2023 (Chile)

B : CEACR

CEACR: ILO Committee of Experts on Application of Conventions and Recommendations

"Enterprises financed by the State. The Committee observed that section 304 of the Labour Code does not allow collective bargaining in State enterprises dependent on the Ministry of National Defence, or which are connected to the Government through this Ministry, and in enterprises in which it is prohibited by special laws, or in public or private enterprises or institutions in which the State has financed 50 per cent or more of the budget in either of the last two calendar years, either directly or through duties or taxes. The Committee takes note of the Government’s indication that on 14 July 2023, the Directorate for Labour issued Opinion No. 995/30, reconsidering the doctrine laid down in 2019 regarding section 304 of the Labour Code, extending the capacity to bargain collectively to the workers to whom that section refers. The Committee observes that the Opinion refers expressly to the comments that the Committee has been formulating and, among other matters, indicates that: (i) the previous doctrine had not established any limit to the prohibition imposed in that section, enabling its application on the sole basis of the financing in question, disregarding any question of its origin, thereby depriving a large number of workers of their fundamental right to bargain collectively and to take strike action, which are essential parts of freedom of association; (ii) the prohibition to bargain collectively provided under section 304 of the Labour Code is exclusively applicable to public or private enterprises in which the State has financed 50 per cent or more of the budget in either of the two last calendar years, that is, a disbursement expressly established in the National Budget Act and not subject to any modality; (iii) the prohibition is not applicable to enterprises or institutions providing goods to the State through the award of State contracts (public tenders or framework and direct negotiation agreements), and (iv) resources transferred to a higher education institution to finance free education (student benefits) are not included under section 304 of the Labour Code, likewise, subsidized education establishments are exempted from the prohibition to negotiate, as are the benefactors of such institutions. The Committee also observes that the Opinion in question indicates that the reasoning applied has been taken into case law jurisprudence, and cites the example of a 2022 ruling by the Appeal Court of Santiago which emphasized that indirect financing is outside the scope of the exclusion provided under section 304 of the Labour Code, when it results from the award of projects and the conclusion of agreements in which the receipt of financing is conditional on effective execution of the contractual considerations. The Committee notes this Opinion with interest, since it seeks, through a restrictive interpretation of section 304, to limit the categories of workers excluded from the right of collective bargaining as a result of that provision. The Committee requests the Government to report on the impact of the interpretation in question on the exercise of the right to bargain collectively. However, recalling that under Articles 5 and 6 of the Convention, only the armed forces and the police and public servants engaged in the administration of the State may be excluded from collective bargaining, the Committee reiterates that it is necessary for the Government to take measures to revise section 304 of the Labour Code to ensure that all categories of workers covered by the Convention are able to take part in collective bargaining. The Committee requests the Government to report on the measures taken in this respect."

D : USDOS

USDOS: US Department of States' Country Reports on Human Rights Practices

"The law did not provide collective bargaining rights for workers in a public or private institution that received more than 50 percent of its funding from the state in either of the preceding two years, or whose budget was dependent upon the Defense Ministry. Employers sometimes did not respect the right to collective bargaining. NGOs and unions reported some companies sought to inhibit the formation of unions and to avoid triggering collective bargaining rights, especially among seasonal agricultural workers and in key export sectors such as mining, forestry, and fishing. These companies used subcontracts and temporary contracts when increasing the size of their workforces, making it more difficult for a union to organize the workforce."

Information

Source: §19 of the Constitution of Chile, 1980; §345-354 of the Labour Code 2002; CEACR, C87, DR 2023; CEACR, C87, Obs. 2023; ITUC Global Rights Index 2024 (Chile Profile); USDOS CRHRP 2023 (Chile)

B : CEACR

CEACR: ILO Committee of Experts on Application of Conventions and Recommendations

"Direct Request: Section 350 of the Labour Code requires an absolute majority of workers represented by the union for a strike ballot (although workers are not counted in the voting quorum if they are not currently working in the enterprise due to medical leave or a statutory holiday, or those who, due to the requirements of the enterprise, are not in the usual place of work). The Committee notes the Government’s indication that the section in question has not been subject to legal amendment nor been the object of an opinion issued by the Directorate for Labour. The Committee recalls once again that to avoid undue restriction of the right of workers’ organizations to organize their activities, the legislative provisions requiring a vote by workers before a strike should ensure that account is taken only of the votes cast (and not of all workers who are entitled to vote) and that the required quorum or majority are fixed at a reasonable level. The Committee therefore again requests the Government to take the necessary measures in this regard and to report any developments. Observations: Article3. Right of organizations to organize their activities and to formulate their programmes. Exclusion from strike action of enterprises declared to be strategic. Section 362 of the Labour Code, under the heading of the determination of enterprises in which the right to strike may not be exercised, provides that a strike may not be called for workers providing services in corporations or enterprises, irrespective of their nature, purpose or function, which provide services of public utility or the cessation of which would cause serious damage to health, the national economy, the supply of goods to the population or to national security. The Committee observed that this definition of enterprises in which the right to strike cannot be exercised, renewed every two years and approved jointly by various ministries and subject to appeal before the Court of Appeal, potentially covers services which go beyond the definition of essential services in the strict sense of the term (those the interruption of which may endanger the life, personal safety or health of the whole or part of the population). The Committee noted that the concepts of public utility and of damage to the economy are broader than that of essential services, observing that “services of public utility” are already covered by the system of minimum services established in section 359, which is distinct from the concept of essential services in the strict sense of the term. While reiterating that section 362 of the Labour Code should be amended to ensure that the prohibition of the right to strike can only cover essential services in the strict sense of the term, the Committee requests the Government to provide information on the application in practice of this section. In light of the above, and reiterating once more the need to amend section 362 of the Labour Code to ensure that the prohibition of the right to strike can only cover essential services in the strict sense of the term, the Committee requests the Government to continue to provide information on the application in practice of this section, specifying the categories of services provided by the enterprises excluded from the exercise of the right to strike, and the treatment of the complaints submitted in this regard. "

C : ITUC

ITUC Global Rights Index (country legal profile)

"The Labor Code provides that workers in companies that provide services of "public utility" and/or whose stoppage by its nature causes serious damage to health, to the population's supplies, to the country's economy or to national security may not strike. The classification of whether the company is in any of these situations will be made by a joint resolution of the Ministers of Labor and Social Security, National Defense and Economy, Development and Reconstruction."

D : USDOS

USDOS: US Department of States' Country Reports on Human Rights Practices

"The law also did not provide for collective bargaining in companies and organizations whose employees were prohibited from striking, such as in health care, law enforcement, and public utilities. The law limited public employees from striking under certain circumstances, depending on sector. While employees in the private sector and workers in formal and regulated collective bargaining units had the right to strike, the law placed some restrictions on this right. For example, a majority of these workers, rather than a majority of those voting, had to approve strikes. The law prohibited employees of providers of services such as water and electricity from striking, and it stipulated compulsory arbitration to resolve disputes in these companies. Additionally, workers employed by companies or corporations whose stoppage would cause serious damage to the health, economy, or security of the country did not have the right to strike."

Information

Source: §183-P & Q and 355-358 of the Labour Code 2002; USDOS CRHRP 2023 (Chile); CEACR, C87, Obs. 2023

B : CEACR

CEACR: ILO Committee of Experts on Application of Conventions and Recommendations

"Replacement of workers. The Committee noted that although the Labour Code contains a provision prohibiting the replacement of striking workers, as well as sanctions in the event of such a replacement (sections 345, 403 and 407), other provisions could undermine or introduce uncertainty into such prohibition to replace striking workers. The General Confederation of Public and Private Sector Workers (CGTP) previously referred to the possibility envisaged in section 306 of the Labour Code for an enterprise that has subcontracted work or services to another enterprise to carry out directly or through a third party the subcontracted work or services interrupted due to a strike. The Committee requested the Government to provide further information on the above-mentioned sections.The Committee notes that, according to the Government, between January 2019 and June 2023, a total of 272 complaints of strike replacement were lodged with the Directorate for Labour and that these resulted in 268 inspections of enterprises. The Committee also observes, according to the information provided by the Government in relation to the Right to Organise and Collective Bargaining Convention, 1949 (No. 98), the Directorate for Labour maintains a register of convictions for anti-union or unfair practices and publishes a list of offending enterprises and trade union organizations every six months. The Committee notes that, according to this register, between the second half of 2020 and the first quarter of 2023, the fines applied in cases of replacement of striking workers varied from 20 to 120 Monthly Tax Units (approximately equivalent to US$1,400 to US$8,800). "

D : USDOS

USDOS: US Department of States' Country Reports on Human Rights Practices

"Employers could not dismiss or replace employees for being involved in a strike. Unions were required to provide emergency personnel to fulfill the company’s “minimum services.” Minimum services included the protection of tangible assets and the company’s facilities, accident prevention, ensuring the supply of essential public services, and ensuring the prevention of environmental and sanitary damage."