Under a law that recently came into force, sanctions for
anti-union practices and violations of employees' fundamental
rights have been made more flexible, allowing for a case-by-case
assessment.
Prior to the new law, the Chilean legal framework governing
public procurement provided that an employer or company convicted
of anti-union practices or violations of workers' fundamental
rights faced a severe and inflexible sanction: being completely
barred from contracting with the State for a period of two
years.
This harsh measure sought to ensure that state contractors met
high ethical standards. However, it also generated controversy,
especially regarding its constitutionality and the proportionality
of the sanction.
