MercoPress. South Atlantic News Agency

Two thirds of Chilean workers earn less than 480 US dollars

6.4 million workers in Chile, almost one million did not make that legal minimum salary

Nearly 15% of Chile's work force earns a salary that is less than the legal minimum wage, according to the latest Survey of National Socioeconomic Composition (CASEN).

The study – which examines Chileans' incomes every three years – also indicates that the nation's female workers earn significantly lower wages then their male counterparts. Figures from the study presented by Chile's Ministry of Planning highlight dramatic inequalities between the nation's rich and poor populations. At the time of the CASEN analysis – November 2006 – Chile's minimum wage was set at 208 US dollars. The figures presented by Minister of Planning Clarisa Hardy show that, of nearly 6.4 million workers in Chile, almost one million did not make that legal minimum salary. In the past month, political debate on income disparities in Chile has grown to be a prominent issue, following a call to action by Catholic Church Bishop Alejandro Goic. Goic implored government leaders to address inequity in Chile by implementing "an ethical wage" for workers by raising the national minimum wage from the current 280 to 480 US dollars. In response to the subsequent debate, President Michelle Bachelet convened an ideologically diverse Equity Commission of 48 persons set to consider different proposals on the issue. The CASEN study shows that nearly two thirds of Chile's workers earn less than even Goic's proposed ethical wage. Some quickly rushed to describe these new statistical pictures of the Chilean economy as inaccurate. Harald Beyer - an analyst from the private research group Center for Public Studies - argued that these figures misrepresent the actual economic picture in Chile. Beyer notes that many workers are paid a low base salary that is supplemented by sales commissions and tips. Minister Hardy, however, said that even these base salaries should be changed to ensure that the minimum wage is paid to all Chilean workers. "These figures demonstrate the need for wage bases to be equivalent to the minimum wage," she said. "There are great challenges in the working world because young people, women, and small business workers have a hard time getting a guaranteed wage in a contract." Minister Hardy also highlighted the extreme discrepancies between the salaries paid to men and women. According to the results, female workers are paid significantly less than males and are less likely to have employment benefits that come with having a signed contract. The CASEN figures show that 29% of female workers are paid the minimum wage, compared to 9.2% of male workers. In addition, 23.8% of females are employed without a contract, in contrast with 17.4% of males. This gap in earnings between men and women increases for women with more educational achievements. Women who have completed higher education programs earn an average of 38.6% less than men who have attained the same distinction. Among those with the fewest years of education, women earn 23.4% less than men. "While there was some improvement for females in the workforce, conditions in Chile are still poor when compared to other developed nations and neighboring countries," said Hardy. The CASEN study also compiled information on levels of unemployment throughout Chile. While the unemployment rate among the poor remains high, the past three years have shown some improvements. Unemployment in the poorest segments of the population inched downwards from 34.7% in 2003 to 26.6% in 2006. The ethical wage debate has dominated the news in recent weeks. Conflicting proposals on the issue from members of the opposition Alianza coalition recently threatened unity amongst the nation's conservative parties. Meanwhile, the country seems to be in the midst of a period of labor unrest where many workers are demanding higher wages. In recent weeks, Chile has seen a national labor protest and increasingly violent strikes at Agrosuper and the Pacific Nut Company. All these events have added urgency to the work of the Equality Commission. At the presentation of the recent survey, one government official indicated that the CASEN findings would be useful for the Commission's work. "This study gives us very interesting data for the discussion of all the different agendas and proposals under consideration pertaining to the ethical wage," said Undersecretary of Labor Zarko Lucksic. "There is good news about the decrease of unemployment, but we must also worry about the quality of jobs available". The Santiago Times