3 August, 2009The workshop on Free Trade Agreements analysed the consequences and impact of free trade on employment and labour rights. The IMF also organised workshops on this issue in Argentina and Brazil.
CHILE: Thirty national and regional leaders of IMF trade union affiliates in Chile participated in a debate on the impact of trade agreements on Chile as part of a series of seminars and workshops organised by the Trade Union Strengthening Project that IMF has organised with its affiliates in the country.
The workshop on free trade agreements analysed the consequences and impact of free trade on employment and labour rights. This is part of an ongoing debate among IMF affiliates in the region and workshops on this issue were previously organised in Argentina and Brazil. The workshop discussed the results of a study conducted by the research unit CENDA (Centro de Estudios Nacionales de Desarrollo Alternativo) and the Instituto Observatorio Social in Brazil, with additional contributions by the IMF and its Chilean affiliates.
The study highlighted the open nature of the Chilean economy with regard to trade and the movement of capital. This means the country is not protected and the multiplicity of agreements signed by Chile (approximately 30 free trade agreements) means that it does not change the situation very much if it concedes new access facilities. The study emphasises that Chile lacks a strategy for regional integration.
More specifically, metalworking has been one of the sectors most affected by the opening up of the economy during the last decade because it was mainly focused on trade in Latin America and production for the internal market. The free trade agreements signed by Chile with the United States and Asian countries, resulted in unequal competition between imports and national production and promoted the outsourcing of the workforce.
There has been a massive increase in subcontracting. In 2006, the number of metalworking companies subcontracting work had risen to 53.3%, although trade union data indicates that as many as two-thirds of workers are employed by subcontractors. Subcontracting has resulted in a high incidence of outsourcing and this casualisation of the workforce has led to poorer health and safety and working conditions. Subcontracting is also a major cause of division among workers.
Carla Coletti, IMF International Officer, said the workshop had provided an opportunity for an in-depth debate and "recommendations for action were made to promote a detailed analysis of the issues, disseminate information to workers, progress the debate among IMF affiliates in Chile and mobilise workers to focus on the country's strategic development on the basis of an exchange of experience with metalworking unions from other countries, particularly the South, within a framework of solidarity between metalworkers at national, regional and global levels."
* For more information, see the section on Trade, Employment and Development. The study will be available on our website within a few days.