Unions join Chile protests as Pinera strives to quell unrest
SANTIAGO – President Sebastian Pinera’s mea culpa and raft of concessions designed to quell Chile’s worst social unrest in decades weren’t enough to prevent more street protests and disruptions at giant copper mines and ports.
On Wednesday, workers proceeded with planned strikes and demonstrations, with at least three facilities owned by state copper producer Codelco disrupted as unions encourage members to join anti-government protests that have swept Chile for the past five days.
Operations in most ports are halted as union members also walk out in solidarity, joining public sector, health and teachers’ unions demanding the army be sent back to its barracks. Codelco sent letters to clients that it expected delays in shipments. TV channels showed thousands of protesters marching in downtown Santiago, Antofagasta and Concepcion.
Demonstrations are going ahead even after Pinera asked for forgiveness for the failure of successive governments to adequately address inequalities. The center-right president pledged to raise the maximum income tax rate to 40% from 35%, lift basic pensions by 20% and introduce a guaranteed minimum income.
But in a televised address after a meeting with opposition leaders, he vowed to maintain the state of emergency until security is guaranteed and resisted calls to make cabinet changes.
“The measures are positive, but they will only serve to cure the fever and don’t solve the core problems,” Fuad Chahin, president of the opposition Christian Democrat party said in an interview with Radio Pauta.
Finance Minister Felipe Larrain, said the cost of the social measures would be about $1.2 billion. He’s scheduled to speak again at about 4 p.m. local time.
The S&P IPSA equity index fell as much as 1.9%, led by power holding company Enel Chile. Pinera also said he would freeze electricity rates. Government bond yields fell.
The concessions threaten the government’s previous economic agenda, which included allowing shareholders to offset corporate tax against personal payments and a bill to boost pensions by topping up the existing system of individual savings accounts. Protesters are demanding a return to a publicly-run retirement system.
The protests though may be entering a new phase with the unions’ involvement.
The unrest began Friday in reaction to a rise in subway fares, quickly morphing into a broader movement against income inequality and perceived corruption of elites. The government has reported 18 deaths, although the rate of serious violent events slowed in the past 24 hours. Chile’s human rights institute says five died in clashes with police or soldiers, while 269 have been wounded and 1,894 arrested.
The government initially tackled the violence as a law-and-order matter, an approach that only made things worse. On Tuesday, Pinera apologised for having failed to recognise the genuine grievances behind the protests.
In a survey by pollster Ipsos, 67% of respondents said the reason the protests started is because “people are tired of their living conditions when it comes to the economy, health and pensions, as they are perceived as unfair and unjust.”
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