ASSESSMENTS

In Chile, Slowing Growth Compromises Labor Reform

Jun 4, 2015 | 09:15 GMT

In Chile, Slowing Growth Stymies Labor Reform
Workers demand better wages during a protest organized by the Central Unitaria de Trabajadores (Workers' United Center) in Santiago in September 2014.

(MARTIN BERNETTI/AFP/Getty Images)

Summary

Economic growth in Chile, a leading producer and exporter of copper, is declining because of the drop in global commodity prices over the past few years. The slowdown has hobbled the Chilean government's attempts to pass labor reforms, meant to address lingering economic inequality in the country. Consequently, commercial and business interests and the government will try to maintain copper production over the next year, delaying or possibly even derailing these labor reform efforts.

Struggling Chilean businesses are concerned by Santiago's attempts to address economic inequality....

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