Chile rejects proposed salary increase for public sector workers

In a new twist in the ongoing conflict between government and public sector workers on salary increases, on 2 November 2016, the Chilean Congress rejected the executive's proposed 3.2 percent salary increase--which the public sector workers had considered insufficient. Following a defeat in the Chamber of Deputies, the proposed increase was sent to a mixed commission of Senators and Chamber of Deputies Representatives, which also rejected the agreement. The executive will now have to decide how to proceed to gain approval for its proposal (La Tercera). The proposal was not only rejected by opposition Senators and Deputies, but also by representatives of ruling party Nueva Mayoría, both in the Chamber of Deputies and in the mixed commission. This opens up a new front of controversy for a government that is already facing criticism due to low participation in municipal elections held on 23 October 2016 (BioBio).