Chile: Labour Directorate Reconsiders Opinion on Collective Bargaining in Inter-Company Unions

On 4 July 2025, the Labour Directorate (the “DT”) issued Opinion No. 452/17 (the “Opinion”), which reconsiders the existing administrative doctrine regarding the requirements for collective bargaining by workers affiliated with an inter-company union. The following key points are highlighted:

• Requirement to group workers from companies in the same industry or economic activity
  The Opinion explains that although an inter-company union, by its legal nature, represents employees from different employers, for the purposes of bargaining with each company, it is also required that these workers provide services in companies within the same industry or economic activity, which can be determined generally based on the Chilean Classifier of Economic Activities, but this does not preclude the use of other criteria or evidence that indicate the companies operate within the same economic sector. In this regard, the DT notes that, as a technical labour body, it is authorised to verify the circumstances that clarify the correct application of labour regulations. Therefore, in exercising its supervisory and interpretative powers, it is competent to determine whether certain workers belong to companies operating in the same sector or economic activity, to assess compliance with the legal hypothesis. In conclusion, the Opinion changes the service’s doctrine by establishing that it is possible to verify whether certain workers belong to companies operating in the same sector or economic activity, considering the Classifier of Economic Activities as well as any evidence gathered through inspections and/or provided by the parties involved in the respective collective bargaining process.
• Quorum requirement for the first union in a company
  The DT also refers to the second legal condition for an inter-company union to participate in collective bargaining at the company level. In this regard, the labour authority states that the legal quorum must be met at the beginning of the collective bargaining process, i.e., when the draft collective agreement is submitted. Therefore, an inter-company union is recognised as having the right to bargain collectively if it meets the same quorum requirements as a company union. That is, if the company has more than 50 employees, the union must have—among the workers it represents in that company—at least 25 members representing at least 10% of the total workforce.

If the company has 50 or fewer employees, the inter-company union must have 8 members representing at least 50% of the total workforce. However, the DT finds it necessary to complement this criterion by determining that in companies where no union currently exists, at least 8 workers are required to form a union, and the quorum of 25 workers representing at least 10% of the total workforce must be reached within one year. If this is not achieved, the union’s legal status will automatically expire by operation of law. Thus, the Opinion complements its doctrine by stating that, to determine compliance with the legal quorum requirement, it must be considered that in companies without an existing union, at least 8 workers are required during the first year from its formation.