By Meritxell Freixas |
Santiago de Chile (EFE) to come, with the pension reform” and the end of private fund insurers, a government commitment that “remains intact”.
“There is always talk about the pension fund administrators (AFP) industry, the stock market, profits, but little about how retired people live in this country,” said Jara (1974) about the turn he wants give to the negotiations between employers, workers and the Government.
Implemented by the dictatorship of Augusto Pinochet (1973-1980), the Chilean pension system is based on individual capitalization thanks to the monthly contribution of 10% of the salary of employees to a personal account available only when they reach retirement and supervised by the AFPs, which invest these savings in the markets and obtain millionaire benefits, close to 8% of GDP.
“The AFP industry has made an important lobby to maintain its privileges and business at the expense of six million contributors,” criticized the minister.
However, she was hopeful because, she said, “there is a certain consensus” to change the model.
“The parliamentarians, who are the ones who will vote on the project, repeatedly stated that they are not necessarily in favor of a certain industry, but of raising pensions,” he said.
The proposal of the leftist president Gabriel Boric, announced in November, points towards the creation of a mixed system. With an increase in the contribution up to 16% by the employer. And the possibility of the State managing the funds, even though there are other private investment managers.
The trajectory of Jeannette Jara
Jara, a member of the Communist Party since he was 15 years old, is among the most valued cabinet members, with a 66% approval rating in the latest Cadem poll.
In just over a year, he has delivered on two of the president’s top campaign promises. The reduction of the working day from 45 to 40 hours, as recommended by the International Labor Organization (ILO). And a historic increase in the minimum wage that, foreseeably, will be voted at the end of the month, to reach 500,000 pesos (about 580 euros today) in July 2024, one of the highest amounts in the region.
It is not the first time that the minister has held a government position. During the second administration of Michelle Bachelet (2014-2018) she was Undersecretary of Social Welfare.
He also went through the trade union world, as a leader of the Internal Revenue Service (SII), where he worked between 1999 and 2016. “Changes are built with social movements and with the citizenry, it is part of the Government’s hallmark,” he emphasized.
“Tear down anti-communist prejudices”
The most “complex” thing, he acknowledged, has been “tearing down the anti-communist prejudices” installed against him for heading the Labor portfolio that, since 1973, the year of the military coup in Chile, has never again been headed by a communist.
However, her relationships built with workers and businessmen during her time as undersecretary allowed her to “clear up” all doubts.
One of the keys to his achievements, which he stressed, “are collective”, is his willingness to open dialogue with all sectors, even those considered antagonistic or the most radical.
“We are available to talk with everyone, but -unfortunately- the extreme right has opposed all the initiatives,” he said, aware of the prominence that the far-right Republican Party acquired after the constituent elections on May 7, when it took control of the body that will draft the new Constitution, with 23 of 51 seats.
Candidate for the Coin?
Despite the weak results of the ruling party in the constituent elections (16 seats). Jeannette Jara assured that “there will be no resignations” in the government program, although she admitted “majorities are required to approve it.”
“We must reflect on whether or not the testimonial proposals serve the public, because there is a middle path where changes can be carried out with parliamentary majorities,” added the minister, who is part of the hard core in which decisions are made openwork in the Palace of La Moneda.
Other plans that Jara has in labor matters include strengthening employment. As well as the insertion of women and sectoral collective bargaining, one of the great pending in this area.
Regarding her future, she is blunt and, no matter how much her citizen assessment grows, she rules out the possibility of climbing positions to be a candidate for La Moneda in 2025: “In no way, cancelled. No”.