( Trade union leader and member Socialist Party of Chile)
In Chile, the experts say is necessary to keep the dollar because if not, our economy would not be competitive.But if the dollar goes down, and if on the other hand, will lower domestic production costs, our economy would become more competitive.
But the labor policy of the "V of the Concertacion(Coalition) Government" is doing the opposite, as this is contributing to labor inflexibility. And so, to drive up production costs.
As recognized by the new Labour Minister Pinera government, the six-month postnatal raise the cost of hiring women. Then, there will be fewer jobs for them, or otherwise, will lower their net earnings, or both. So women end up paying for themselves postnatal prolongation.
For sure ... "There is no free lunch"
As all that is known, it is easy to understand why there are protests,when reporting that, for equal work, the remuneration of women is lower than that of men. Could not be otherwise. The reason lies in the post natal nurseries and other similar things that raise the cost of female labor.
This government also announced that it will combat the multi RUTs (ID to pay taxes). This is because smaller companies incur less labor costs than large ones, because these smaller firms avoid trade unions and the consequent politicization and strikes, the obligation to nurseries and other costs that occur when a company is larger. Then the large company divides its RUT (ID to pay taxes) and this, is how they reduce its costs.
If these big companies can not break the RUT(ID to pay taxes), what they do is go one step further and divide not only the rut, also the operation itself.
If not, their costs will increase, and also happen to the cost of hiring more staff, so surely will create fewer jobs.
Has anyone noticed that the figures on employment growth in recent months, are due to two-thirds of new jobs are "self-employed?
Because labor inflexibility, leads not to increase the dependent work,which means to be legally employed with benefits.
With so many polls and pollsters, someone should investigate these new "independent work. " Are not many of those "independent work", jugglers that are installed at traffic lights to earn some money, and now the "methodological changes"in the survey make them appear as"self-employed?
Be considered alarming, talks between the new Minister of Labour and Arturo Martinez, socialist leader for thirty years trying to destroy jobs in Chile, planning the most varied ways of raising the costs of hiring people.
In the '60s I was in Hong Kong, which was one of the most dynamic economies in the world, it was because Great Britain. Hong Kong in that time belonged to the British Commonwealth, and it was accepted that there exists a fully free economy (different what happened in British soil.Because in those years between the British prevailed labor and tax legislation, socialist).
In Hong Kong companies and individuals paid an income tax only 25 percent and the employment of workers was free. Thus the social welfare and health of those without resources, was financed by the 25 percent tax.
There was no need for multi RUT (like so many, in addition to large companies, have in Chile, as stated this clearly, we form partnerships to pay a 17 percent tax (now 18.5, because the current government)and not 40 percent of tax paid by higher income individuals. Question: Is it also going to eliminate this kind of multi RUT?
The counselor Arturo Martínez, for sure tell the rulers of the country:Yes
If Chile were indeed a country of free people, anyone could sell their services freely, according to the autonomy and freedom to hire people. Would have full employment, and I am absolutely certain: that for any reason Chile could have poverty levels that we know now(especially if social spending will be delivered directly to the poor and not the bureaucracy of government departments, like today).
Well, it's easy to remember that for some reason the refugees of the Vietnam War in the 70s running away from communism (the "boat people", as it was called) in the first place where they found refuge and work really was in the tiny island of Hong Kong, with total employment flexibility offered employment to all comers, while large and powerful "economy", full of "social conquests" and had ultra regulated labor markets, were not able to absorb all that mass that was fleeing from communism.
But like any good thing is eternal, Hong Kong ended up falling into the hands of China. But, of course, the communist-capitalist China in Hong Kong still has much less regulated labor markets than Chile.
And so, thanks to Arturo Martinez and who will say yes to his brilliant ideas, we are filled with things Chinese are very expensive to produce in this Chile full of "social conquests". All this will be worse if, instead of lowering costs, free markets, and greater flexibility to hire people,and if we keep pursuing the multi RUT, and thinking about post natal getting longer and even, as has already announced, for male workers.
Arturo Martínez Long live! (should say Chinese exporters).
*The RUT of companies also is used to obtain business license
Translation and free adaptation of the Blog of Hermogenes Perez deArce. Chile written and translated by Carlos Toledolabarca
CarlosDomingoToledo is based in Logan, Utah, United States of America, and is Stringer for Allvoices
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