Labor Relations in South American Countries

Presented by:Nicole ClevenRachel MathisAshley Hetcher

Erin Gibson

LIR 554: Comparative Employment Relations Systems9/9/2008

Basic

Brazil

Capital: Brasília

Chile

Capital:Santiago

Ecuador

Capital:Quito

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

Economic Overview

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

Economic Overview

Ecuador: Currency: US Dollar GDP per capita: $7,200 Population: 13,927,650 people 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

Comparison

Currency GDP per capita

Population Labor Force

Language Unemploy-ment Rate

Brazil 1 Real = $0.595

$9,700 191,908,598 99.47 million

Portuguese 9.6%

Chile 1000 Pesos = $1.95

$13,900 16,454,143 6.97 million

Spanish 7.8%

Ecuador U.S. Dollar $7,200 13,927,650 4.51 million (urban)

Spanish 10%

U.S. Dollar $45,800 303,824,640 151 million

English 4.6%

Your Turn

Guess which one of these Companies is the best to work for in Brazil:

The Great Places to Work Institute: <http://www.greatplacetowork.com/best/list-bestusa.htm>

Your Turn

Guess which of these companies is the best to work for in Chile:

The Great Places to Work Institute: <http://www.greatplacetowork.com/best/list-bestusa.htm>

Your Turn

Guess which of these companies is the best to work for in Ecuador:

The Great Places to Work Institute: <http://www.greatplacetowork.com/best/list-bestusa.htm>

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.

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)

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.)

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)