“Decent Work Agenda in Chile.

Towards the implementation on a National Policy in Safety

and Health at work”IALI-ILO Workshop:

 IALI’s role in supporting the Decent Work Agenda and participating

in the implementation of the Decent Work Country Programmes (DWCPs)

with the focus on Labour Inspection and OSH StrategiesDüsseldorf, Germany

November 6, 2009

Pedro Contador Abraham

1. Sociodemographics, economics and statistical backgrounds.

2. Social Protection System against Occupational risks.

3. Legislative history of national politics 4. Elements of this Politic.5. Tripartite Agreement. Decent Work National

Agenda.

Summary

1. SOCIODEMOGRAPHICS, ECONOMICS AND STATISTICAL BACKGROUNDS.

2009

Fuente: INE 2009

Population : 16.928.873 in habitants (estimated to June 30, 2009)

Population : Female 8.588.510 Male 8.340.363 (estimated to June 30, 2009)

Labor Force : 6.688.765 peoplefemale 32%

BACKGROUNDS…

• Surface.756.096 km2, wich increases in 1.250.000 km2 when included the Chilean Antartic territory.

• Economy.Chile has one of the most open economics of the world, with low custom fees and a strong orientation in exportations. More than 12 years ago Chile’s gross state product has increased in 7% every year, while inflation constantly decreases, now is standing in a little over 4% every year.

BACKGROUNDS…

– Chile is member of the APEC and is associated to MERCOSUR, has signed comertial agreements with the USA, the EU, China, Mexico and Canada, and others.

– The main activities are mining, service, the extraction of raw materials, silviculture, fishing, manufacturing and tourism.

The anual average of the growth tax for the population is 1.2%.

According to 2002 Census, the people of 60 and over reached 11,4 % out of the total of the country, nearly 1.7 millions inhabitants. In 2020, it is expected that elder people would be near 3 million. 

BACKGROUNDS…

Chile’s GDP 2004-2009

Year GDP (Mill. $ 2003) Variation %

2004 54,246,819 6.0

2005 57,262,645 5.6

2006 59,890,971 4.6

2007 62,694,083 4.7

2008 64,677,016 3.2

2009* 63,642,423 - -1.6

* Projections

• Chile’s Per Capita Income: US$14.673 according IMF’s world-wide economic view.

• IMF’s projections are that we would be near US$ 20.000 in 2013.

BACKGROUNDS…

Human Development Index in 2009 0,878 (44°)

Urban Population 90.2%

Population density 21,31 per km2

Population in Santiago 6.3 millions

Population Growth 1.2%

Life Expectancy 76 years

Infant Mortality 12 every 1.000 children x< 5 years

Adult Literacy 95,70%

Inflation in 12 months (Sept. 2009) -1,10%

Unemployment Q3 ‘09 10,80%

BACKGROUNDS…

Service of the debt as percentage of the GDP 12%

Public expenditure in education as percentage of the GDP 3,90%

Fertility Tax 2,4

Per capita health spendings US$792

Population with potable water access 93%

Population under poverty line 13,70%

Poverty-Stricken Population 3,20%

Relation between per capita income of the 20% richest homes and per capita income of the 20% poorest homes

14,1 veces

Women participation on work 36,30%

BACKGROUNDS…

Features- Comprehensive social insurance. - Protects dependent and independent workers

joined to the insurance.- Shared administrator by state and private bodies.- Automaticity principle.- Preventive Spirit.

2. SOCIAL PROTECTION SYSTEM AGAINST OCCUPATIONAL RISKS

Law Nº 16.744.

Contingencies: work-related accidents and professional disesases.

Coverage: - Dependent workers.- Goverment officials. - Independent workers.- Students.

SOCIAL PROTECTION SYSTEM…

Sources: *INE, **SUSESO

PopulationProtected by

Insurance Act. No. 16.744

PopulationProtected by

Insurance Act. No. 16.744

4,66 Millions Workers (2008)**

Labor ForceLabor Force

6,68 Million Workers (2008)*

70,2%

INSURANCE AGAINST EMPLOYMENT ACCIDENTS AND OCCUPATIONAL DISEASES COVERING.

ACHS 35.393

MUSEG 22.317

IST 15.113

DISTRIBUTION OF PROTECTED ENTERPRISES BY ADMINISTRATOR

ACHS 1.869.487

MUSEG 1.226.561

IST 533.358

AVERAGE OF WORKERS BY ADMINISTRATORS

89%

89%

70,2%

0% 20% 40% 60% 80% 100%

Agricult., Caza, Silvic. y Pesca

Explotación Minas y Canteras

Industria Manufacturera

Electricidad, Gas y Agua

Construcción

Comercio

Transporte, Almacen. y …

Servicios Financieros

Ss. Comunales, Soc. y …

TOTAL

Porcentaje

Sources: SUSESO and INE National Survey of Employment – Own Elaboration

AVERAGE 2008

PROPORTION OF OCCUPIED WORKERS PROTECTED BY LABOR INSURANCE BY

ECONOMIC ACTIVITY

ACCIDENTS AND MORTALITY ON WORK 2008

*2008 Data on validation process

Every 100 workers Every 100.000 Workers

0,0 2,0 4,0 6,0 8,0 10,0 12,0 14,0 16,0 18,0 20,0 22,0

Transporte

Minería

Construcción

Agricultura

Electricidad

Industria

Comercio

Servicios

MORTALITY RATE PER OCCUPATIONAL ACCIDENTS

MUTUAL ORGANIZATIONS 2008

2008

0,0

2,0

4,0

6,0

8,0

10,0

Small (01 - 25)Medium- Sized

(26-100) Big (101 and more)

8,58,0

5,6

8,6

7,5

5,0

8,3

7,1

5,1

x 100Workers

Enterprise size

ACCIDENTABILITY RATE AT WORK ACCORDING TO ENTERPRISE SIZEMUTUAL ORGANIZATIONS

2006 - 2008

2006

2007

2008

11,3%

2,4%

Tasa 2008

8,9%

2004 2005 2006 2007 2008

Minería 13,5 16,0 21,5 25,3 25,2

Construcción 10,5 12,6 15,0 16,0 16,3

Transporte 12,0 13,7 16,7 17,4 17,4

Prom. días perd. por accidente 11,8 12,8 13,4 14,0 14,1

7

9

11

13

15

17

19

21

23

25

27

AVERAGE DAYS LOST PER OCCUPATIONAL ACCIDENTS BY ECONOMIC ACTIVITY

MUTUAL ORGANIZATIONS2004 - 2008

Minería

Construcción

Transporte

Prom. días perd. por accidente

• Law No. 20.123, SUBCONTRACTING.Law No. 20.123, SUBCONTRACTING.

Objectives1. Change focus on Risk Prevention from the companies

to the workplaces. The company has to watch over the protection of all workers, no matter their dependence.

2. Introduce Occupational Safety and Health- Management Systems.

3. Encourage supervisors, in case of fatal and/or serious accidents.

4. Expedite access to technical assistance on Safety and Health at work for small enterprises.

3. LEGISLATIVE HISTORY OF NATIONAL POLITICS

Main Company

Subcontratist Company

Contratist Company

SAFETY AND HEALTH COMITTEE

RISK PREVENTION DEPARTAMENT

SPECIAL RULES FOR CONTRATISTS AND SUBCONTRATISTS COMPANIES

SAFETY AND HEALTH AT WORK MANAGEMENT SYSTEM

+ 50 workers

+ 100 workers

+25 workers

WATCHING DUTY

Any Activity and N° of workers

OWN

ACTIVITY

ALL

ACTIVITIESENTERPRISE COORDINATION - WORK REGISTRY

LEGISLATIVE HISTORY…

LEGISLATIVE HISTORY…

• Law No. 20.255 – Social Security System Reform

October 2008: Voluntary incorporation to independent workers.

March 2009: Creation Instituto de Seguridad Laboral (Principal Agency for Labor Risks Insurance)

2012 to 2015: Mandatory incorporation of independent workers.

Objectives of SSS Reform

Gender equality

Increase of Benefits

Cover extension

System of Supportive Pensions for persons who do not contribute to social security or whose pensions are too low; bonus to enter the system for excluded groups, young people or independent workers.

Reduce the gender inequality in pensions: Bonus per child,economic compensation in case of divorce or marriage nulity, Pension for spouse in case of death. Separate tender of the Invalidity and Survivor’s Insurance.

Increase and compensation in fees to increase the final pension and to reduce the state expense. Incentive for pension savings.

Responsablility of the state

Harmonize expenses of the reform that ends in (1980) with the one that begins (expenses that diminish or disappear: old system pensions, recognition bonus , PASIS and others that are generated within the reform.

LEGISLATIVE HISTORY…

4. ELEMENTS OF NATIONAL POLITICS

MAIN ACHIEVEMENTS FOR THE IMPLEMENTATION OF NATIONAL POLICY ON OCCUPATIONAL SAFETY AND HEALTH

MINTRAB - ILO Cooperation, purposes of technical assistance:

• Making the institutional diagnosis profile.• Implementing an Information System.• Creating Instituto de Seguridad Laboral.• Training of representatives of workers on OSH.• OSH National Survey.• National Program for Eradication of Silicosis.

5.NACIONAL TRIPARTITE AGREEMENT

DECENT WORK PROGRAM

The Chilean Government, through the Ministery of Work and Social Security, suscribed an agreement to promote a Decent Work National Agenda, where five National Priorities were identified. Among them was considered a National Policy in Safety and Health at Work and its implementation through tripartite mechanism. This was on november 6, 2008 and included the participation of most important representatives organizations of employees and workers and the ILO Subregional Office for the South Cone of Latin America.

a. INSTITUTIONAL DIAGNOSIS PROFILE

Backgrounds

Comunication from the Presidente of Chile Michelle Bachelet to tripartites representatives of ILO Member States at the 96th International Labour Conference, may 2007:

“(…)decent work stands as a main obligation in every country, as an ethic imperative in every nation, today is the moment in which it makes necessary “to give shape to the social dimension of the globalization”.

DECENT WORK PROGRAM ILO COOPERATION

•ILO’s new Promotional Framework for Occupational Safety and Health Convention number 187 and the recommendation Nº 197, promote the implementation of a national policy, the consolidation of a national system/structure responsible for its implementation

•Consensus on the need for having a National policy Safety and Health at Work and move on the ratification of the ILO Conventions.

INSTITUTIONAL DIAGNOSIS…

INSTITUTIONAL DIAGNOSIS…

During 2008, ILO entrusted the making of this profile to María E. Feres, former “National Director of Labor Inspection”. Head of Work

Main conclusions of the report:•Chile does not have a National Policy on Safety and Health at Work. •National System of SHW is known for the diversity of bodies, rules, atributtions and performances, in many occasions, overlapped and contradictories, in the other hand.•Important deficiencies are stated in the prevention and disparity of acces and cover in SHW, according to the enterprise size and the type of work being done (worker-employee).

INSTITUTIONAL DIAGNOSIS…•Mayor state boost at the beggining , in the management and in the control of enterprises and managers, which was weakened from the 70s y 80s, encouraging only the private management.

•System determined by politic and economic conceptions that defined the strategies of structural adjustments in chilean society economy, for its insertions in the global economy.

•Rules designed for the protection of the industrial worker, formal and stable, that does not fit with the current situation of Chile.

•Loss of coverage, separating more than 30% of the population employed, without regard to small enterprises and independent workers.

INSTITUTIONAL DIAGNOSIS…

• Mayor advances in the en recovery of the State role and public policies in Safety and Health at Work are ascertained, especially from del Ministery of Work and Social Security.

•A more relevant definition of policies in the present situation, it is in the Social Security Reform Law, that , along with the introduction of improvements in pensions, creates The “Instituto de Seguridad Laboral” a public agency, now focused on Safety and Health at work.

•The existence of disparities in the access to the protection of the insurance labor accidents Professional diseases among workers and employees are ascertained.

b. FIRST NATIONAL SURVEY ON EMPLOYMENT CONDITIONS, LABOR, HEALTH AND Y QUALITY OF LIFEHealth , Work and Equity, 2009

• Aim to describe and analize the reality of the Chilean population, about working conditions, labor, equity and health, to contribute at public policies design .

• Represents a joint effort of the Ministery of Health and the Ministery of Labor and Social Security to be aware of the situation of the working population.

Main Objectives

1. Describes employment and working conditions, health and quality of life within chilean population according to social demographic variables.

2. Describes health situation and quality of life of the chilean population according to the conditions of employment and work.

3. Describes the access and satisfaction of the population according to preventive and healing actions of the occupational health systems and the conditions of the employment and work.

FIRST NATIONAL SURVEY…

FIRST NATIONAL SURVEY…

4. Analizes the employment and work conditions within the chilean population according to the main topics of soccial equality.

5. Analizes the health situation and the population quality of life according to the conditions of employment and work .

6. Identifies employment indicators, work and health that can be useful for the realization of public policies on health and equality.

7. Asseses employment, work and health indicators, that enables the planning of the main public policies to improve the population health and to reduce the social inequalities in health.

c. NATIONAL PROGRAM FOR THE ERRADICATION OF SILICOSIS

• Silicosis is one of the most serious diseases that affects the working class.

• WHO and ILO are promoting , worldwide , an initiative that can erradicate this problem by the year 2030, through the development of a program that leads to gradually diminishes the labor exposure to silica.

• Chile adheres to this initiative by considering silicosis is a public health problem that can be controlled.

NATIONAL PROGRAM FOR THE ERADICATION OF SILICOSIS

Chile, August 8, 2009

Objectives:

1. Reducing and controlling exposure to silica at work.

2. Decrease the incidence and prevalence of silicosis.

3. Improve early diagnosis and monitoring of health of workers with Silicosis and access to cash benefits; and implementation of a Social Support Program.

4. Strengthen the Information System of Silicosis and silica exposure.

5. Establish a Comunication System of Silicosis Risks.6. Strengthen participation of workers in developing,

implementing and monitoring the Program.

Description Its objective is to recover, store and manage relevant information related to Employment Accidents and Occupational Diseases Insurance, wich would make easier to those involved the compliance wiih the obligations mandated by Law.The Chilean Goverment has had the collaboration of the ILO in the initial phase of this Project.

d. EMPLOYMENT ACCIDENTS AND OCCUPATIONAL DISEASES INFORMATION SYSTEM SIATEP

INFORMATION SYSTEM…

Main Issuesa) Comply with reporting Employment Accidents and Occupational Diseases and disposition of a database by administrative bodies.

b) Access to relevant information by administrative bodies and others actors involved in the processes related to the operation of insurance (workers, employers, etc.), as the constraints due, for the purpose of formulating policies, designing and implementing preventive measures in the field of Insurance.

c) An efficient information flow between administrative bodies and their monitors.

INFORMATION SYSTEM…

d) Statistics on Employment Accidents and Occupational Diseases. Public policies for permanent improvements by the Superintendence of Social Security.

e) Stronger supervision by the Superintendencia de Seguridad Social in Employment Accidents and Occupational Diseases.

f) Facilitate the role of other public agencies with responsibility for overseeing the Employment Accidents and Occupational Diseases Insurance to compile statistics and national health.

e. LEADERSHIP TRAINNING PROGRAM FOR WORKERS IN IMPROVING WORKING ENVIRONMENT CONDITIONS 2009-2010

OBJECTIVES:1. Promote a preventive culture and a concept of a

worker citizenship among union leaders.

2. Develop curriculum and training materials for the training of labor leaders on issues of Occupational safety and health.

3. Encourage active participation of worker organizations in stablishment of preventive rules in working enviroments and in National System for Occupational Safety and Health.

PROGRAM …

4. Design participation strategies and management in labor union negotiation on Safety and Health at Work issues.

5. Strengthen relation between the union and their members to participate in the prevention against occupational risks.

TO :• Union leaders that are part of the country’s most

representative Labor Unions and their associate organization

• Workers member of enterprise boards.

PROGRAM …METODOLOGY:

• Based on risk map methodolgy developed by ILO, and adapted to the chilean reality.

• Other topics: a) labor union negotiation and safety at work; b) Working conditions and fundamental rights ; c) Alcohol y Drugs at work place.

FINANZING AND IMPLEMENTATION :By Labor Inspection, along with con ILO technnical assistance .

In april 2009 the first 25 workers were trainned. Dr. Valentina Forastieri and Mr. Giuseppe Baffert attended that ceremony.

Thank You!