LIR 554: Comparative Employment Relations Systems
9/9/2008
Labor Relations
in South American Countries
Presented by:
Nicole Cleven
Rachel Mathis
Ashley Hetcher
Erin Gibson
Basic
Ecuador
Brazil
Capital:
Quito
Chile
Capital:
Santiago
Capital:
Brasília
Economic Overview
Brazil:
Currency: Brazilian Real = .595 US Dollars
 GDP per capita: $9,700
 Population: 191,908,598 people
 Labor force: 99.47 million people
 Language: Portuguese
 Main Export/Import: Crude Oil, Iron Ore, and
Soy Products / Computer Accessories,
Aircraft, Plastic

Economic Overview
Chile:
Currency: 1 Chilean Peso = .00195 US
Dollars
 GDP per capita: $13,900
 Population: 16,454,143 people
 Labor force: 6.97 million people
 Language: Spanish
 Main Export / Import: Copper, Fruit, Fish,
Wine / Aircraft, Fuel Oil, Computer
Accessories

Economic Overview
Ecuador:
Currency: US Dollar
 GDP per capita: $7,200
 Population: 13,927,650 people
 Labor force: 4.51 million people (urban)
 Language: Spanish
 Main Export / Import: Petroleum, Bananas,
Cut Flowers, Shrimp, Coffee / Industrial
Materials, Fuels and Lubricants,
Nondurable Consumer Goods

Comparison
Currency
GDP per
capita
Population
Labor
Force
Language
Unemployment Rate
Brazil
1 Real
= $0.595
$9,700
191,908,598
99.47
million
Portuguese
9.6%
Chile
1000 Pesos $13,900
= $1.95
16,454,143
6.97
million
Spanish
7.8%
Ecuador
U.S. Dollar
$7,200
13,927,650
4.51
million
(urban)
Spanish
10%
U.S.
Dollar
$45,800
303,824,640
151
million
English
4.6%
Your Turn
The Great Places to Work Institute: <http://www.greatplacetowork.com/best/list-bestusa.htm>

Guess which one of these Companies is
the best to work for in Brazil:
Your Turn
The Great Places to Work Institute: <http://www.greatplacetowork.com/best/list-bestusa.htm>

Guess which of these companies is the
best to work for in Chile:
Your Turn
The Great Places to Work Institute: <http://www.greatplacetowork.com/best/list-bestusa.htm>

Guess which of these companies is the best
to work for in Ecuador:
What’s Happening Now

Brazil: The current racial inequality is not consistent across
all socio-economic classes, and there still exists a large
racial gap favoring whites in almost all classes

Chile: Michelle Bachlet is currently spurring a cultural and
political revolution in Chile, breaking through the “male
ceiling” in the labor market and government while bringing
sexual harassment and physical abuse issues to light

Ecuador: The unemployment rate is still at 10%, which has
resulted in a very competitive labor market for skilled
workers, and very little options for the unskilled workforce,
resulting in an unsettled middle class and high levels of child
labor abuse.
Ecuador and Labor Issues





Unions did not exist until 1930, and between 1950 and
1973, a total of 3,093 unions were established
Ecuador Confederation of Free Trade Union
Organizations is the biggest union in Ecuador
In 2002, there were 3.7 million employed wage earners
in urban areas
In 2002, only 12% were affiliated with a union
organization
The Ecuadorian government has a framework around
legal work weeks (40 hrs.), child labor laws (boys under
12 and girls are 14), health and safety standards, and
minimum wage ($118/month)
Chile and Labor Issues




Chile’s unionization efforts developed slowly until the
1930s, when the labor force became a political force
The Central Union of Chilean Workers is the largest
labor confederation
As of 2002, 10% were affiliated with a union organization
Their government structure allows for a annually
adjusted minimum wage ($157/month), and has
parameters around strikes, legal work weeks (48 hrs.),
and child labor laws (15 yrs.)
Brazil and Labor Issues




Brazil’s unionization structure was created after 1930,
based off the structure of Italy and Portugal
20-30% of the labor force is currently affiliated with a
union organization
The largest union federation in Brazil are Workers’
Unitary Central, the Workers’ General Confederation,
and the Forca Sindical
Their government structure allows for a annually
adjusted minimum wage ($85/month), and has
parameters around strikes, legal work-weeks (44 hrs.),
safety regulations, and child labor laws (16yrs)