Observation (CEACR) - adopted 2008, published 98th ILC session (2009)

Old-Age Insurance (Industry, etc.) Convention, 1933 (No. 35) - Chile (Ratification: 1935)

Follow-up to the conclusions and recommendations of the committee set up to examine the representation made by Chilean unions of employees of pension fund administrators (AFPs), under article 24 of the Constitution. The Committee notes that the Government’s report does not refer to measures taken in order to guarantee the observance of the main recommendations of the committee set up to examine the representation made by a number of Chilean unions of employees of AFPs, under article 24 of the Constitution, concerning non-observance by Chile of Convention No. 35, adopted by the Governing Body at its 277th Session in March 2000 (GB.277/17/5, March 2000). The following were the recommendations: (i) the pension system established by Decree Law No. 3.500 of 1980, as amended, should be administered by non-profit-making organizations; (ii) representatives of the insured should participate in the administration of the system under conditions determined by national law and practice; and (iii) employers should contribute to the resources of the insurance scheme. The Committee notes nevertheless that a special session of the Senate has been convened in December 2008 in order to get a clear overview of the impact of the global financial and economic crisis on the private pension funds, which have sustained important financial losses. In this situation, the Committee trusts that the Government will supply in its next report detailed information on the measures taken to save the national pension system in the light of the recommendations of the Governing Body and in conformity with the provisions of the Convention.

Follow-up to the conclusions and recommendations of the committee set up to examine the representation made by the College of Teachers of Chile AG under article 24 of the Constitution. The Committee notes that the Government’s report contains no reply to its previous observation which concerned the recommendations of the committee set up to examine the representation made by the College of Teachers of Chile AG under article 24 of the Constitution for non-observance by Chile of Conventions Nos 35 and 37, adopted by the Governing Body of the ILO in March 2007 at its 298th Session (GB.298/15/6, March 2007). The following were the recommendations: (a) to take all the necessary measures to solve the problem of the social security arrears arising from non-payment of the further training allowance; (b) to continue and strengthen the supervision of the actual payment of the further training allowance by employers in arrears; and (c) to ensure the effective application of deterrent sanctions in the event of the non-payment of the further training allowance. The Committee expects the next report of the Government to contain full information on the effect given to these recommendations. The Government has also not responded to the communication of the College of Teachers of Chile AG received in July 2007 relating to the so-called “historic debt” of social security (deuda historica) generated as a result of the non-payment of the full wages in conformity with Decree Law No. 3.551 of 1981 to nearly 80,000 teachers. The teachers have been deprived of their rightful salary which has consequently affected their social security entitlements since 1981, causing a significant deterioration of their right to a fair pension. In this respect, the Committee notes from the public web site of the Chilean Parliament that a special committee was set up within the national Parliament in November 2008 with the participation of the College of Teachers of Chile AG and other interested parties in order to examine the situation of historical debts. The latter is due to submit its proposals to address the accumulated social security arrears in May 2009 and the Government is to communicate its reply within 60 days. The Committee asks the Government to indicate the results of these deliberations in its next report and to reply in detail on other issues raised by the College of Teachers of Chile AG.

Please also respond to the observations made in January 2008 by the Circle of Retired Police Officers alleging the loss of acquired rights related to old-age pension (quinquenio penitenciario) by penitentiary staff.

In view of the accumulating grievances which do not find adequate response from the Government, the Committee once again urges the Government to re-examine all the issues involved, with the technical assistance of the Office, if need be, and to provide detailed information on the measures taken to redress the situation.

[The Government is asked to supply full particulars to the Conference at its 98th Session and to reply in detail to the present comments in 2009.]