Hello fellow forumites. How many times has the minimum salary risen in the last 18 months? I am finding this pretty unusual. It is not reflective of other countries. Are minimum wage workers losing their jobs? How can small businesses or in my case, non-profits afford these raises?
They can’t. And its not just small businesses that are being affected either. Now they are talking about employer subsidies.
The Sueldo Minimo is actually $460.000 as of Sept 1, as it incrementally heads towards the $500.000 goal.
Boric made an election promise of a $500.000 sueldo minimo; that “bribe” is, I believe what got him elected. Its one of the few promises he has kept, after all its easy to be generous with other people’s money.
Except that it won’t be $500.000, it will be $625,000 as contracted employees on minimum wage also get a never-mentioned 25% gratificación
All this is doing is fueling inflation, unemployment and forcing businesses to close.
A principios de 2022, cuando comenzó el Gobierno de Gabriel Boric, el sueldo mínimo era de $350 mil pesos. Luego, desde mayo esta cifra aumentó a $380 mil, en agosto se alcanzó un valor de $400 mil y finalmente a partir de enero de 2023 se llegó a $410 mil brutos mensuales.
Here is a schedule of the minimum wage increases:
And, unemployment has been consistently increasing:
The article doesn’t give reasons, but I wouldn’t be surprised if the rising minimum wage played a role.
True. There have been many announcements of businesses in financial trouble, closing completely, or closing stores in the case of retailers.
Here’s Jadue’s economic adviser from a couple of years ago showing the commies true colours: they detest the petite bourgeoisie.
Al referirse al impacto de la propuesta de Jadue de subir el sueldo mínimo a $567 mil en 4 años, López dijo: “Todos los días desaparecen pymes y aparecen nuevas. No vengamos a llorar porque van a desaparecer algunas pymes: siempre ocurre”.
Understandably, many employers will be reluctant to take on full-time workers, adding to an unemployment problem, already an issue due to the increased illegal immigration in the country.
The expenses and liabilities associated with contracting full-time workers are already so outrageous that I’m surprised that anyone gets hired. When COVID hit the country and employers had to reduce their workforce or close for the duration, the associated labor-related benefit costs (such as " la indemnización por años de servicios "were enough to force many businesses to close forever.
Then there is a matter of using ( contracting) part-time workers, which the law considers to be under 30 hours a week. Depending on the agency involved, that part time condition can be called " una jornada de trabajo no superior a dos tercios de la jornada ordinaria" or just “jornada de tiempo parcial.” For anyone really amused by this, the matter is covered in Article 40 bis of the labor code. The termination costs to employers can still be considerable.
And of course "trabajar en negro." Paid under the table, with no deductions or other formality. There is an enormous segment of the country already under this category.
thanks Findes, so is part-time of 40 hours a week with housing supplied considered illegal now?
Alas, I am no attorney, nor do I play one on television, so I wouldn’t be able to make any sort of definitive call on that. In the previous post I mentioned an observation that part-time could not exceed 30 hours a week and that came from at least one of the CL government websites.
Here is a portion of the text and the source:
“La jornada parcial es aquella de 30 horas o menos de trabajo a la semana pactada en el contrato…”
Even contracted work at less than 30 hours a week appears to have some degree of required employer responsibilities similar (proportional) to those of full-time employers. But again, real answers ought to be sought from competent legal authorities and that could mean just making a visit to your local government labor inspection office.
Quite correct. Every idea he has had has been full of fail
Of course Boric and his ilk are baffled and confused
“We mandated higher salaries and now the wheels are falling off. Unemployment and inflation are going up up up…wtf? Ah it is because of pinochet and capitalism. The only answer is…be more leftist”
“What we gonna do comisar, how we do dat?”
“Mandate that all of chile must be employed and mandate price freezes on every product and service”
“Brilliant comisar…I can see why you were elected. Shall i get you a pisco and coke now so you can decompress? Perhaps a footrub for those proletarian tootsies doing so much good every day”
Jumping in here for the benefit of those unfamiliar with the law:
Full-time employment, the Jornada Completa is now 40 hours.
For part-time work contracts, the salary deductions reduce proportionally.
If you have contracted employees, (and uncontracted labour is illegal) you are responsible for deducting and paying their AFP, ISAPRE and AFC quotes.
Also you have to keep an assistance record, the libro de asistencia signed by the employee every day on arrival and departure. And provide a formal monthly payment statement itemizing all the previous information.
If you are not doing all of the above, you are at the mercy of an employee who could denounce you in the Inspeccíón de Trabajo. They often add colour to their accusations by alleging Maltrato or Estress Laboral. Its up to the employer to prove their innocence by producing the relevant documentation.
If the paperwork submitted in the arbitration is lacking, the Inspector will generally find in favour of the employee. If you get lucky there, and the employee accepts the “compensation” determined by the Inspector, the matter ends there, you escape with a swingeing fine. Some negotiation is possible here in determining the amount.
Been there, that’s how I know all this…
But if either party disagrees with the determined “compensation”, the next step is the Labour Court, the Tribunal de Trabajo, where the employer needs to be represented by a lawyer, and where over 80% of the judgements favour the employee.
Don’t forget inflation was very high for a couple of years and has in effect swallowed up quite a lot of the increases - half of it maybe? So in terms of purchasing power minimum wage people only get half of what Boric was hoping to deliver.
True, and its a vicious and self-defeating circle. Labour costs go up, so employers try to raise their prices to compensate. And if they can’t, because people can’t or won’t pay higher prices, then the layoffs start.
It’s all happened before…
A friend of my husband is dealing with a situation like that now. It’s no fun. They have a family business making ornamental stone products and the guy works for them and lives on the property.
If that were true, every neighborhood flete driver, house painter, other maestro, and attorney would be under indictment. Dozens of federal agencies and universities legally obtain labor services without ever signing a contract. Generally speaking (see details following) if the service is not regularly occurring – a one-time bit of work – a contract is apparently normally not required.
From time to time I have my present attorney take on a legal task. Just a phone call or an email specifying what work (i.e., labor, for services) I need done. No contract needed.
Article 7 of the Labor Code specifies that there must be a specifically defined “relación laboral” in order for a labor contract to be legally required. Here are the conditions, in the vernacular, that must be satisfied (the text is from a Chilean attorney paraphrasing the labor code):
1. Pago de remuneración. El empleador es quien paga al trabajador un monto en dinero (o en especies) de manera periódica (jornal, semanal, bisemanal o mensual) a cambio de sus servicios.
2. Prestación de servicios personales. El trabajador es quien ejerce una actividad para el empleador, a la que está obligado personalmente, no pudiendo delegarla a un tercero.
3. Subordinación y dependencia. Esta es la característica más distintiva de la relación laboral. Significa que el trabajador ejerce su prestación bajo las órdenes, instrucciones, vigilancia y disciplina impuesta por el empleador, y que lo hace utilizando las instalaciones, máquinas e implementos suministrados por el empleador.
Note the phrase in the first item: de manera periódica. Perhaps more significantly, the last feature can be the key. According to our understanding of the law, if a flete driver owns and operates his own vehicle as he sees fit to make a delivery, that fact alone can exempt him from the need for a labor contract.
Most of your examples are the type of self-employed service providers that are only used now and again, there is no employer-employee relationship there.
I was referring back to the original situation where permanent labour is involved, either full or part-time.
In those cases an employment contract is mandatory, with stiff fines for non-compliance. Its one of the reasons those illegal immigrants regularize their papers; they cannot be legally employed otherwise.
If you read the last sentence in the previous post, perhaps you can understand the following:
interesting gringalais, how did that situation evolve?
It’s still going on. They are trying to reach a negotiated settlement but the guy is being very stubborn. The mediator or whatever they are called has told the that if he goes to trial, he’ll probably get less, but last I heard there is no agreement.
If it goes to the labour court, the plaintiff gets a court-appointed lawyer, while the employer has to hire one. Also, 80% or more of the court outcomes favour the employee. The employer is considered guilty until proven innocent.
As to vacating accommodation provided as part of a job, that’s another can of worms, especially if a family is involved.