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The crisis is paid by the workers and the government did not protect the people. These are two of the conclusions of the sixth follow-up report on government projects to protect families from the crisis generated by COVID-19, prepared by the Socialist Party (PS) with the support of the Equality Institute.
The document, entitled “Budget 2021: aid for companies and cost for workers”, reveals that the direct contribution from the workers’ own savings is almost five times higher than state support.
According to the study, the Treasury has only allocated US $ 5,000 million for direct social assistance, considering the Covid Bonus, the Emergency Family Income (IFE) and the Middle Class Bonus, among others.
On the other hand, “the workers have come mostly with their own funds to face the crisis, with about US $ 17,500 million, which is broken down into more than US $ 16,000 million due to the withdrawal of 10% of the AFPs and US $ 1,500 million from their accounts of the Unemployment Insurance, through the Employment Protection Law “.
It also points out that “the almost 800,000 workers covered by the Employment Protection Law saw their income reduced over the months, in addition to depleting the funds in their individual unemployment insurance accounts – originally planned for another type of contingency – without receive any additional help to supplement their income. “
The research suggests that “this situation escapes the spirit of the Framework of Understanding of June 2020, when a budget framework was agreed to reach people with effective help through an emergency plan that was diluted over time.”
“In Chile, there are approximately 15.7 million people of working age and currently the number of employed persons is less than half, 46% or 7.2 million people. Exactly a year ago, that same percentage rose to 58%. , that is, almost 2 million fewer people who no longer participate in the labor market. If to this are added the employed absent, with support for suspension of employment and other instruments, which in the period of one year have increased by 680 thousand people, we are reaching 2.7 million people with strong employment needs, “says the document.
In this sense, it indicates that “the situation of women in the labor market is particularly complex, since the pandemic has strongly overloaded the work of caring for children with the demands of remote education, teleworking and household chores. This has meant their exit from the formal labor market and a decline in their participation rate by more than 10 points in one year. “
Finally, the report maintains that “fiscal spending in the pandemic was insufficient and late, which ended up creating a picture where the workers themselves had to take charge of their savings originally intended for social security, and by 2021, the Government underestimates the persistence of high unemployment rates “.
“If it’s not going to help, at least don’t get in the way”
In this context, the socialist deputy, Daniella Cicardini, was categorical in describing as “outrageous” the government’s help to alleviate the economic crisis resulting from the COVID-19 pandemic.
“It is annoying to see how the Government announces that it will appeal to the Constitutional Court before the advance of the project for the second withdrawal of funds from the AFPs, when the Executive is not providing any alternative. 8 months after the start of the pandemic, this Government has not only been unable to offer an alternative but also intends to cut the roads to the people at their own resources, announcing that if it is approved, it will go to the TC to prevent the second withdrawal of 10% of the AFPs “, he indicated regarding the project that will be debated in particular this Wednesday in the Constitution Commission.
The parliamentarian added that “I also find it outrageous that the Government said that they will not make a new delivery of the Emergency Family Income either. I would tell the government that, if it is not going to help, at least it does not interfere, and that with its attitude it shows that it still does not understand anything about the problems of the people ”.
Budget 2021 “does not meet the needs”
The report also maintains that the draft Budget 2021 “does not meet the current needs of our country.”
In the opinion of the entity, “the cost of the crisis will continue to be charged to the workers. The withdrawal of 10% of pension savings and the use of severance funds have been a clear sign that the crisis was paid by workers, “they conclude.
The report emphasizes that “in social matters, the 2021 Budget is disappointing. With the exception of the Undersecretariat of Social Services, which increases its budget by 166.1% but because practically all of this increase is due to the resources allocated to the payment of the Guaranteed Minimum Income Subsidy that implies 126 billion by 2021, important programs see their resources cut ”.
See here the full report.
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