Labor Relations in South American Countries

1. LIR 554: Comparative Employment Relations Systems 9/9/2008 Labor Relations in South American Countries Presented by: Nicole Cleven Rachel Mathis Ashley Hetcher Erin Gibson

2. Basic Ecuador Capital: Quito Brazil Capital: Brasília Chile Capital: Santiago

3. Economic Overview Brazil: • Currency: Brazilian Real = .595 US Dollars • GDP per capita: $9,700 • Population: 191,908,598 people • Labor force: 99.47 million people • Language: Portuguese • Main Export/Import: Crude Oil, Iron Ore, and Soy Products / Computer Accessories, Aircraft, Plastic

4. Economic Overview Chile: • Currency: 1 Chilean Peso = .00195 US Dollars • GDP per capita: $13,900 • Population: 16,454,143 people • Labor force: 6.97 million people • Language: Spanish • Main Export / Import: Copper, Fruit, Fish, Wine / Aircraft, Fuel Oil, Computer Accessories

5. Economic Overview Ecuador: • Currency: US Dollar • GDP per capita: $7,200 • Population: 13,927,650people • Labor force: 4.51 million people (urban) • Language: Spanish • Main Export / Import: Petroleum, Bananas, Cut Flowers, Shrimp, Coffee / Industrial Materials, Fuels and Lubricants, Nondurable Consumer Goods

6. Comparison

7. Your Turn The Great Places to Work Institute: <http://www.greatplacetowork.com/best/list-bestusa.htm> • Guess which one of these Companies is the best to work for in Brazil:

8. Your Turn The Great Places to Work Institute: <http://www.greatplacetowork.com/best/list-bestusa.htm> • Guess which of these companies is the best to work for in Chile:

9. Your Turn The Great Places to Work Institute: <http://www.greatplacetowork.com/best/list-bestusa.htm> • Guess which of these companies is the best to work for in Ecuador:

10. What’s Happening Now • Brazil: The current racial inequality is not consistent across all socio-economic classes, and there still exists a large racial gap favoring whites in almost all classes • Chile: Michelle Bachlet is currently spurring a cultural and political revolution in Chile, breaking through the “male ceiling” in the labor market and government while bringing sexual harassment and physical abuse issues to light • Ecuador: The unemployment rate is still at 10%, which has resulted in a very competitive labor market for skilled workers, and very little options for the unskilled workforce, resulting in an unsettled middle class and high levels of child labor abuse.

11. Ecuador and Labor Issues • Unions did not exist until 1930, and between 1950 and 1973, a total of 3,093 unions were established • Ecuador Confederation of Free Trade Union Organizations is the biggest union in Ecuador • In 2002, there were 3.7 million employed wage earners in urban areas • In 2002, only 12% were affiliated with a union organization • The Ecuadorian government has a framework around legal work weeks (40 hrs.), child labor laws (boys under 12 and girls are 14), health and safety standards, and minimum wage ($118/month)

12. Chile and Labor Issues • Chile’s unionization efforts developed slowly until the 1930s, when the labor force became a political force • The Central Union of Chilean Workers is the largest labor confederation • As of 2002, 10% were affiliated with a union organization • Their government structure allows for a annually adjusted minimum wage ($157/month), and has parameters around strikes, legal work weeks (48 hrs.), and child labor laws (15 yrs.)

13. Brazil and Labor Issues • Brazil’s unionization structure was created after 1930, based off the structure of Italy and Portugal • 20-30% of the labor force is currently affiliated with a union organization • The largest union federation in Brazil are Workers’ Unitary Central, the Workers’ General Confederation, and the Forca Sindical • Their government structure allows for a annually adjusted minimum wage ($85/month), and has parameters around strikes, legal work-weeks (44 hrs.), safety regulations, and child labor laws (16yrs)