Chile and Brazil about Property Rights, Labor Laws and Location

Chile

The Chilean labor laws provides for the workers’ rights although there are some limitations. These provisions include voluntarily formation and joining unions of one’s choice, bargaining collectively and conducting strikes.  There are prohibitions of antiunion practices and reinstatement or compensation is required for those employees fired for taking part in union’s activities. The legal framework, however, allows negotiations between employers and negotiation groups not related to the official union.  The law requires that a minimum of 85 percent of workers hired by an employer should be Chilean unless the firm has less than 25 workers.  A  Foreign Investment Agency voluntary mechanism allows foreign firms to certify a need for a bigger number of foreign workers and technical staffs that are irreplaceable are not included in the calculation of this percentage. It gets 0 for average risk. The country has tenable interest property and a reliable system that allow mortgages and other types of liens to be recorded.  The country does not restrict non-resident or foreign investors to lease or acquire land. Chile’s regime for intellectual property is strong but there some exemptions and intellectual property protection obtains TRIPS Agreement standards.  There is a provision of transparent and fair application of compulsory licensing, copyright holder’s exclusive rights and a system for voluntary notification.  There various problems relating to legislation remedies and implementations of measures for right holders and a lax in such implementations. Chile does not appear in the USTR’s Markets List or a counterfeit physical market, pirated products or a platform for online sites that promote infringement of IPR.  On this the country gets a score of 1 for low risk.  Its location does not pose a great threat in relation natural disasters and weather, or proximity to other markets, a score of 1 for low risk

Brazil

The country mortgage registration system is not standardized and its adoption is uneven. It also has an improving Intellectual Property Right protection and enforcement system that includes various regulations and laws.  Even though the country does not largely produce pirated and counterfeit products, there are concerns for increasing case of online IP violations and attitudes of the society towards buying counterfeit products remains permissive. Copyright laws are being revised and hopefully they will ensure more property rights protection and especially digital issues. The intended improvements give Brazil a score of 0 for average risk. Brazil has a costly and complex system which is governed by the Consolidation of Brazilian Labor Laws.  The labor laws involve a lot of state interventions by the government in comparison to United States.  Disputes are handled in court with little labor agreements between employer and employee or private arbitration of labor disputes.  Lay off workers is also expensive when interests, FGTS accounts, 50 % fine and monetary adjustment are included.  Even though there is a provision for labor unions, laws do not encourage collective bargaining. The country scores -1 for high risk. Its location is good for serving South American markets even though its location close to the equator present disease challenges to expatriates.  It gets score of 0 for average risk.

 

References

U.S Department of State, 2015. Investment Climate Statement – Brazil. Retrieved from: https://www.state.gov/e/eb/rls/othr/ics/2015/241494.htm

U.S Department of State, 2016.Bureau of Economic and Business Affair:Chile. Retrieved from: https://www.state.gov/e/eb/rls/othr/ics/2016/wha/254515.htm