El Ciudadano
Original article: CUT golpea plan de Kast: “No es para las mayorías, es para los grandes grupos económicos”
Just days after José Antonio Kast unveiled the «National Reconstruction Plan» aimed at areas impacted by the wildfires in central-southern Chile, the Unitary Central of Workers (CUT) has accused the Republican politician of using the emergency as a «facade» to impose a neoliberal agenda that favors large economic groups at the expense of the working class.
Presented last weekend, the plan proposes an injection of nearly $1 billion and more than 40 measures, including controversial provisions such as reducing the corporate tax rate, restricting free university education to individuals under 30, and strengthening the enforcement of the State-Guarantied Credit (CAE).
During the announcement, Kast acknowledged that some of his government’s measures would be unpopular but justified them as necessary to achieve fiscal balance.
Reconstruction as a «Facade» for Corporate Profit
The CUT’s core criticism focuses on the tax components of the administration’s project. Rather than providing relief for the victims, the labor union claims it represents a political maneuver to reshape the tax burden in favor of capital.
In a statement, the CUT argues that Kast’s government is using «this tragedy as an opportunity to implement a tax reform.» Specifically, the union highlights two concrete measures: “the reduction of the corporate tax from 27% to 23% and the elimination of the capital gains tax.”
The multi-gremial organization states that these changes are not related to rebuilding homes or recovering disaster-stricken areas. They assert that these tax benefits «are not measures for social relief; rather, they are a direct gift to large companies to ensure that, even in crises, their profits continue to grow at the expense of public budgets.»
Another focal point of union opposition is the announced labor policies, specifically the employment subsidy. The Republican government has proposed a mechanism in which the State would cover part of the labor costs to incentivize hiring.
However, the CUT argues that this subsidy is merely «a transfer of resources from the taxes of all Chileans to the cost sheets of employers.»
The union asserts that the measure is predicated on «socializing labor costs to privatize profits,» which exacerbates inequality dynamics, where social risks and expenditures are collectivized, while the benefits remain privatized.
One of the most contentious aspects of Kast’s plan, which has garnered widespread cross-party opposition, is the modification to the free university education system. The far-right leader’s proposal aims to limit this benefit to students aged 30 and under, excluding those older than that who wish to start or continue higher education, and strengthen the collection mechanisms for the CAE.
Kast’s intention is to intensify financial follow-up on CAE debtors, under the pretext of controlling public spending and ensuring the country’s financial sustainability.
The CUT considers this measure a direct act of discrimination against the workforce.
In its statement, the union emphasizes that «denying free university education to individuals over 30 is an act of age and class discrimination.»
The organization underscores the crucial role education plays in the lives of workers, who see it as «the only way to upskill and achieve higher wages in adulthood.»
By cutting off that possibility, the CUT accuses Kast’s government of choosing to «protect banking interests over the right to knowledge and the progress of working families.»
Deregulation: Dismantling Achievements under «Permissiveness»
The government’s plan also includes a focus on administrative and environmental deregulation, under the premise of expediting investment and reconstruction. However, the CUT warns that this approach of «less permissiveness» conceals a dangerous rollback of rights hard-won by communities and workers.
«We warn that the proposed environmental and administrative deregulation is nothing more than the dismantling of the minimum protection standards we have established,» the text states.
The central organization directly links this deregulation to the safety of people and the environment, cautioning that «facilitating investment without real controls puts community health and job safety at risk.»
Additionally, it alerts that the goal of this deregulation is to accelerate «the return on investment for large extractive projects, prioritizing profitability over life and social welfare.»
Call to Congress: Do Not Be Complicit in the «Bait and Switch»
The CUT’s declaration concludes with a diagnosis stating that the so-called «National Reconstruction Plan» is not intended «for workers and their families, nor for students or older individuals,» but rather aims to benefit «the boards of large economic groups.»
As a result, the organization has extended a call to parliamentarians not to endorse what they consider a deception.
«We urge Congress not to be complicit in this ‘bait and switch’ and to legislate with the needs of those who sustain the country through their daily efforts in mind, rather than those seeking to profit from the crisis,» concludes the statement.
The CUT’s call comes amid heightened political tension, where opposition sectors have already announced plans to refer the matter to the Constitutional Court to prevent what they consider an infringement of rights acquired by Chileans, while figures within the ruling party, like the president of the Republican Party Arturo Squella, defend the initiative by arguing that it aims to «end abuses» within the system.
For now, the decision lies in Congress, which must determine whether to approve or halt Kast’s first, highly contested project.
La entrada CUT Criticizes Kast’s Reconstruction Plan: «It Serves Big Corporations, Not the Majority» se publicó primero en El Ciudadano.
