According to INE’s last employment report, subcontracted workers represent around 17, 4% of employees in Chile. This workers develop their activities either under a subcontracting regime or within a personnel supply contract. Many companies prefer this hiring systems as they offer greater flexibility than traditional systems.

A sensitive point, which is source to many conflicts among companies and their workers, is the inequality that usually exists between the labour conditions of permanent workers and those of subcontracted workers. When such situation occurs, it creates an awkward and tense working environment and/or bad relationships between the employer and the employees.

A few weeks ago, the transnational mining company, Anglo American together with the Copper Workers Confederation (CTC) made an agreement that provides benefits for every contracted or subcontracted worker the company has.

Anglo American has 5 business divisions in the country, with over 6 thousand employees working in different areas.

According to the Business and Economic section of the Chilean newspaper, El Mercurio, this negotiation sets a milestone in the way labour relations are handled in Chile and may anticipate to possible legislative changes. The reason for this is that Anglo American negotiated directly with subcontracted workers, being the first negotiation of its kind in the private mining industry.

Private employment agencies, through the ratification of ILO’s Convention 181, would enable the creation of a more adequate context to channel the communication among the government, employers and subcontracted employees.