SOUTH AMERICA

Chile strikes threatened over historic debt

13 years ago

Casual workers at Chiles ports are threatening to go on an all-out strike unless an amicable solution is agreed to a dispute they have with the tax authorities regarding additional payments.

Traditionally, such workers were exempt from having to pay extra, “second category” income tax. However this discount was withdrawn as of September 2010, leaving a historic debt that must be paid. Who ultimately picks up the tab will be defined by talks being held with the labour unions and the Ministry of Labour.

In an unrelated dispute, Chile’s National Economic Prosecutor (FNE) has asked the country’s competition authorities to impose both horizontal and vertical restrictions on a tender issued by the Port of Iquique to build a new container terminal since the process implies “competitive structural risks”. The main shareholders of the incumbent Iquique Terminal Internacional – Luksic, Urenda and Claro – will not be permitted to bid for the $450m project.

As far as the FNE is concerned, “rules imposing restrictions on horizontal and vertical integration are relevant, being an effective safeguard against monopoly abuse for a market – such as that in ports – that present structurally competitive risk.”