Although the Central Workers’ Federation (CUT) set out to win a 12% increase in the minimum monthly wage, they shook hands with the national government for a 10.4% increase, equivalent to US$30 dollars. Compared to negotiations last year, the government ceded only a US$18 dollar increase. The Llanquihue quotes Edison Muñoz, regional president of the CUT as saying, “Although it wasn’t the amount we had asked for (a 12% increase), it at least establishes an advancement in the salary structure. The government has committed to give urgency to the modification of the Labour Code, making it a law that no salary in Chile may be lower than the minimum. In the case of part time work, the salary will be prorated based on the minimum.” A minimum salary of US$318 may sound confusing, since reports regarding minimum salaries for salmon workers has bordered on US$600. This is due to the customary payment structure in Chile to provide additional monthly “bonuses” for production, transportation, and lunch, for example, since the minimum wage is never enough to cover such costs. Employers benefit from the “bonus system” since the bonuses are not taxed with a health and social security percentage. Employers are taxed an additional 20% on top of employees net salaries, which goes towards health and pension coverage. Thus, equally important as the US$ 30 increase for the workers’ pockets, it means better pensions. Considering the price hikes in fuel, food, and clothing this year Muñoz adds, “The cost of living has gone up so much that this salary increase doesn’t change our life much.”
