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Original article: Sala Cuna Universal con tijera al Seguro de Cesantía: CUT advierte que beneficio no puede salir del bolsillo trabajador

Universal Daycare Initiative Faces Criticism: CUT Warns Costs Shouldn’t Fall on Workers

Following the introduction of the Government’s proposals by José Antonio Kast regarding the Universal Daycare Project, leaders from the Central Unitaria de Trabajadores (CUT) expressed their views on the initiative, particularly concerning the controversial funding formula. This formula entails a 0.35% additional employer contribution that will be offset by a corresponding reduction in the contributions currently allocated to the Unemployment Insurance. They cautioned that the burden of this benefit should not be placed on the workforce.

According to the far-right president, this initiative aims to extend benefits to all working women in the country through a phased implementation. However, the chosen mechanism for financing the expansion has raised questions about the true impact of the measure on the social safety net.

As per the proposal, two cuts will be applied. Firstly, the percentage allocated to individual accounts under the Unemployment Insurance will decrease from 2.4% to 2.2% (a reduction of 0.2 percentage points); secondly, the contribution to the Solidarity Fund will be reduced from 0.8% to 0.65%, indicating a decline of 0.15 percentage points. For self-employed individuals, this payment will be made in the same manner as the other social security contributions.

In this context, CUT president José Manuel Díaz acknowledged the effort from La Moneda to introduce suggestions on a project that has been under national debate for over a decade. He pointed out two primary concerns related to business obligations: the elimination of co-payments and the stipulation that if a daycare facility is unavailable in the area, the employer will not be required to build or provide one.

Given this scenario, he announced plans to go to Congress to «present our proposals and observations, as well as the idea that this project should not lead to the commodification of early childhood education,” reported Diario U de Chile.

Funding: The Critical Point of the Project

Meanwhile, Karen Palma, vice president of Gender and Equality at CUT, stated that removing Article 203 of the Labor Code would eliminate the requirement of having 20 female employees to claim the daycare benefit.

However, she warned that «this should not come at the cost of any measure» and mentioned that the multisectoral union is watching the funding closely.

The leader emphasized that «it has become customary for the Government to finance social policies at the expense of workers».

Graduality and Urgency: A Project that Does Not Address Current Needs

Palma also disagreed with the gradual implementation proposed by the Government. Initially, during the first year, the benefit would cover the children of salaried workers protected by the Labor Code and those employed in small companies with fewer than 20 employees. In the second year, coverage would be extended to the children of self-employed workers and domestic employees.

In the third year, protection will extend to the children of parents with labor ties, in cases where the mother, although unemployed, is actively seeking work or pursuing studies, and finally, during the fourth year, implementation will be completed by including the children of parents whose mothers do not engage in any work, academic activities, or job-seeking, as well as those employed in the public sector.

«We have been told there is an urgency for employment, which we share at the Central, but they present a gradual project that specifies it will take five years to incorporate women,» she criticized.

Palma highlighted that «if there is indeed an urgency in the labor market today, the project should not include such graduality.»

The Risk of Commodification and the Education Voucher

Palma also pointed out the necessity to examine what this project proposes regarding strengthening public early childhood education. She expressed concern that «the potential for a voucher is resurfacing, suggesting that workers may have to pay co-payments,” warning that this opens «business niches that could turn education into daycare centers», similar to proposals from previous governments.

Political Coordination and Next Steps

Regarding the next steps, CUT’s vice president indicated that they would hold meetings with gender representatives from progressive parties. Furthermore, they requested that the Senate Education Committee extend the deadline for submitting suggestions to incorporate the multisectoral perspective into the parliamentary discussion. «We have seen how all policies have benefited large companies, and daycare is no different,» Palma asserted.

In fact, CUT shared a message on their social networks indicating that some of their representatives held a meeting with Senators Yasna Provoste and Claudia Pascual to analyze the suggestions introduced by the Government and to express the concerns and proposals from the union movement regarding the initiative.

During the meeting, they reaffirmed the need to advance towards a universal daycare that guarantees shared responsibility, strengthens women’s labor participation, and safeguards the quality of early education. Additionally, CUT reiterated the importance of ensuring that any modifications to the project centralize the protection of the rights of working women, families, and children.

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