SANTIAGO, (Reuters) – Chile’s government admitted defeat on a major bill yesterday, saying it will not try to revive any measures of President Michelle Bachelet’s landmark labour reform that were struck down by a court.
The reform, aimed at strengthening organized labour in the South American country, was initially passed by the Senate in March after a bruising battle that opened divisions within the governing Nueva Mayoria coalition.
But Chile’s Constitutional Tribunal in April rejected a provision of the bill that said companies could only negotiate with legally designated unions during collective wage talks.
It also struck part of a measure that prohibited companies from extending many benefits to non-unionized employees.
Those measures were considered central components of the legislation, and the government had pledged in early May to veto the struck components in order to send them back to Congress for discussion. However, a period of prevarication followed among government officials.
In Friday’s announcement, the government said it would in fact follow through with the veto. However, it would not attempt to replace the bill’s struck parts, as the government lacked the necessary votes in Congress.
“The government did everything it could, we talked with all the actors, and it wasn’t possible to construct an agreement,” said Labor Minister Ximena Rincon.
