Welcome back to the Latin America Weekly newsletter! In this issue: Chilean companies nervous about profit-sharing bill. AMLO leads a center-left charge against the OAS. Countries discuss the legality of punishing anti-vaxxers. Argentina enjoys some debt breathing room.
Chilean lawmakers to decide on profit-sharing bill
The 2019 protests sparked a desire for change in Chile, which included the creation of a new constituent assembly. The latest result of this wave is increased pressure on the country’s businesses to implement distributive measures. This month, the House is set to vote on a bill that would force firms to share a larger percentage of their profits with employees — raising red flags for utility firms, which are already focused on dividend distribution.
Current framework. Chilean labor laws establish that companies must share 30 percent of their annual earnings or 25 percent of employees’ annual wages, capped at 4.75 times the monthly minimum wage.
- The majority of companies opt for the second option, paying it in monthly installments.
Negotiations. In June, the House’s Labor Committee passed a bill making the 30-percent option the only viable alternative.
- Professional associations complained, warning that the move was unworkable for small businesses, especially during a...