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Viewing cable 08SANTIAGO1025, CHILE: PUBLIC WORKERS' STRIKE ENDS AFTER 4 DAYS OF

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Reference ID Created Released Classification Origin
08SANTIAGO1025 2008-11-24 11:45 2011-08-25 00:00 UNCLASSIFIED Embassy Santiago
VZCZCXYZ0000
PP RUEHWEB

DE RUEHSG #1025 3291145
ZNR UUUUU ZZH
P 241145Z NOV 08
FM AMEMBASSY SANTIAGO
TO RUEHC/SECSTATE WASHDC PRIORITY 3981
RUEHBU/AMEMBASSY BUENOS AIRES 1145
RUEHPE/AMEMBASSY LIMA 5811
RUEHAC/AMEMBASSY ASUNCION 3638
RUEHPE/AMEMBASSY LIMA 5812
RUEHBR/AMEMBASSY BRASILIA 0539
RUEHC/DEPT OF LABOR WASHDC
UNCLAS SANTIAGO 001025 
 
SIPDIS 
 
STATE FOR WHA/BSC, DRL/ILCSR 
LABOR FOR ILAB--CHANTENIA GAY 
 
E.O. 12958: N/A 
TAGS: ELAB SOCI PGOV ECON CI
SUBJECT:  CHILE: PUBLIC WORKERS' STRIKE ENDS AFTER 4 DAYS OF 
PARALYZING GOVERNMENT SERVICES 
 
1.  The four day strike of Chilean public workers ended November 20 
with an announcement of a 10 percent salary increase.  The strike 
had halted the work of 70 percent of public employees.  The Chilean 
Senate approved the 10 percent adjustment in a night session on 
November 20, and the Chamber of Deputies approved the measure 
November 21.  Following Senate approval of the government's proposed 
adjustment, fifteen representatives from local unions organized by 
the National Association of Federal Employees (ANEF) agreed to end 
the strike. 
 
2.  The 10 percent hike is a compromise between the GOC; original 
6.5 percent offer and the 14.5 percent ANEF demanded.  ANEF 
justified its demands citing the need to make up for last year's 
lower salary raise and the current 9.9 percent annual inflation 
rate, the highest rate in 14 years. 
 
3.  Carmen Espinoza, the National Director of the Program for 
Economy and Work (PET), a labor studies institute, told EPOL staff 
November 18 that the workers' strike is "one of the most serious 
labor movements in recent years."  She predicted the outcome of this 
strike would also influence private sector employees renegotiate 
their wages.  She stated that a yearly readjustment of wages is 
necessary and noted a strike of this magnitude was needed pressure 
on the GOC.  Salvador Castro, President of the Confederation and 
National Federation for Metal workers, Mining, and Automobiles 
(CONFESTEMA) took a different view. Castro told EPOL staff November 
19 that the laws were very clear in this case and that many of the 
involved public sector employees were striking illegally.  A strike 
of this nature and magnitude was not justified, Castro said, because 
of its effects on public health and necessary services. 
 
4.  The strike caused the four day closing or slowing of many GOC 
operations including those of the civil registry, customs, public 
hospitals, the courts, and waste management.  Media highlighted that 
one woman died in Puerto Montt, allegedly for failing to receive 
emergency treatment; 40,000 children did not attend preschool; 400 
surgeries had been postponed; and 30,000 people had not received 
primary health services.  Some Embassy operations, including customs 
and mail delivery, were also affected, although many government 
employees, including MFA officials, continued to make themselves 
available to the Embassy during the strike.  The strike is estimated 
to have caused a 600 million dollar economic loss.  GOC operations 
reopened November 21 but many say it will take up to a week to 
return to speed. 
 
5.  Comment:  This was one of the largest strikes in Chile in recent 
history.  While there are strong unions in Chile, overall 
unionization rates are low.  The level of organization and number of 
employees involved in this movement was surprising and could spark a 
rise in the influence of unions in the Chilean workplace.  End 
Comment 
 
SIMONS