Definitive Report - Report No 310, June 1998

Case No 1941 (Chile) - Complaint date: 30-SEP-97 - Closed

Allegations: Restitution of confiscated trade union assets

1. 243. The complaint in this case appears in a communication from the World Federation of Trade Unions (WFTU) of September 1997. The Government furnished its observations in a communication dated 13 February 1998.
2. 244. Chile has ratified neither the Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87), nor the Right to Organise and Collective Bargaining Convention, 1949 (No. 98).

A. The complainant's allegations

1. 245. In its communication of September 1997, the World Federation of Trade Unions (WFTU) recalls that in September 1973 a coup d'état overthrew the democratically elected Government of President Salvador Allende. The military junta which took over power dissolved the Single Central Organization of Workers (CUT) and the federations in the metal, mining and textile industries, amongst others. All their property (trade union premises, assets and income) was immediately confiscated. The complainant adds that in October 1978, the dictatorship once again declared illegal certain occupational federations, whose income, assets and premises were once again confiscated.
2. 246. The complainant states that after 1988, the CUT reached a compromise with the opposition parties which had re-emerged as a result of the struggles by the workers, whereby with the restoration of democracy all the assets and resources confiscated during the dictatorship would be returned to the trade union movement, and the bank accounts of the above-mentioned federations which had been frozen from 1973 would be unblocked. The complainant adds that during the Government of President Alwyn the CUT was provided, on the basis of a free loan, with premises situated in Moneda numero 1346 as well as other provincial premises. Subsequently, a Bill was presented for the restitution of confiscated assets but it was rejected due to a lack of votes. The complainant points out that the present Government presented another Bill which has made no headway in Congress because it has not been given urgent attention, and that in accordance with national parliamentary procedure it is the Government which must determine the urgency of each piece of proposed legislation. Finally, the complainant states that there is a lack of interest and will on the part of the Government to resolve the dispute.

B. The Government's reply

1. 247. In its communication of 13 February 1998, the Government states that by means of Legislative Decrees Nos. 12 and 133 of 1973, and 2346 of 1978, the legal personality of various trade union organizations and occupational associations was cancelled and these bodies dissolved, with their assets passing to their legal successors or to the State. In 1991, the Ministry of National Property brought before Parliament a Bill on the "restitution or compensation of assets confiscated or acquired by the State by means of Legislative Decrees Nos. 12, 77 and 133 of 1973; 1697 of 1977 and 2346 of 1978", the substance of which had already been discussed and adopted by the Chamber of Deputies and recently by the Senate. The final adoption of these texts is expected during the first half of this year. The Government states that this Bill, which consists of 19 permanent and two transitory sections, establishes a time-limit of one year following its entry into force for individuals, trade union organizations, political parties and legal persons concerned to claim the restitution of the confiscated assets. In the event that these assets cannot be returned, either because they have been sold or because the State decides to keep them since they are used for public services, the respective cash compensation shall be paid. Under the law, it is expected that restitutions for an amount of around 24,000 million pesos (approximately 60 million dollars), corresponding to 254 properties, will be made. Of these, 60 belonged to individuals, 113 to political parties, 21 to trade union organizations and 60 to legal persons. Of the 254 pieces of property, 113 had been transferred and were no longer part of the Treasury assets, and 141 are still in the power of the State.
2. 248. The Government adds that as part of the procedure governing the above-mentioned Bill, the Ministry of National Property drew up a list of the buildings confiscated from trade union organizations, in accordance with the reports provided by the parties concerned. (The Government includes a list of these buildings.) The Government states that the situation of these buildings is as follows: (i) eight were incorporated into the Treasury assets and subsequently transferred free of charge or sold directly to various institutions and individuals; (ii) one was transferred free of charge to the CUT; (iii) seven properties are still registered in the name of the Treasury, some of which are used by state bodies for their own purposes; (iv) no information is available on the present legal situation of three properties; and (v) two properties are not recorded as belonging to the Treasury.
3. 249. The Government specifies that as a means of compensating the loss of the properties transferred to the Treasury as a result of the legislation issued under the military Government, which affected the Single Central Organization of Workers and other trade union bodies, the Ministry of National Property, after the establishment of the democratic Government, granted them usage free of charge of 11 properties throughout the country and has transferred free of charge two buildings in the Bíobío region. (The Government includes in its reply a list of the buildings in respect of which the Single Central Organization of Workers has been awarded a grant of free usage or which have been transferred to the CUT free of charge.)

C. The Committee's conclusions

1. 250. The Committee notes in this case that the complainant alleges the non-restitution of assets confiscated from the Single Central Organization of Workers and other trade union organizations following the coup d'état which occurred in Chile in 1973. More specifically, the complainant states that although a Bill has been placed before Congress providing for the restitution of trade union assets, its adoption has been delayed since the Government has not made it a matter of urgency.
2. 251. The Committee notes that according to the Government, in 1991 the Ministry of National Property placed before Congress a Bill on the restitution or compensation of assets confiscated or acquired by the State, which was discussed and adopted by the Chamber of Deputies and by the Senate, and the final adoption of which is expected during the first half of this year. The Committee furthermore notes that the Government states that the Bill in question establishes a time-limit of one year for individuals, trade union organizations, political parties and legal persons concerned to claim the restitution of the confiscated assets, and also provides that in the event that the assets cannot be returned, a corresponding cash compensation will be paid. In the same way, the Government notes with interest that according to the Government, as a means of compensating the loss of the property transferred to the public Treasury, which affected the Single Central Organization of Workers and other trade union bodies, under legislation issued by the military Government, the Ministry of National Property, following the establishment of the democratic Government, has made 11 grants of free usage by the CUT of buildings throughout the country and has transferred to it free of charge two buildings in the Bíobío region.
3. 252. In this respect, the Committee recalls that the Fact-finding and Conciliation Commission on Freedom of Association set up in 1974, after the change of regime, had requested the adoption of measures with a view to the restitution to trade union organizations of the assets to which they were entitled (see Trade union situation in Chile, 1975, paragraph 531).
4. 253. Considering that the CUT assets were confiscated almost 25 years ago, the Committee expresses its concern over this situation. The Committee also regrets that after seven years, the Bill concerning the restitution of confiscated trade union assets, which was placed before Congress in 1991, has still not been finally adopted. In these circumstances, the Committee urges the Government to take the necessary measures so that the text in question, which has already been adopted by the Chamber of Deputies and by the Senate, can enter into force without delay. The Committee requests the Government to keep it informed of measures taken in this respect.

The Committee's recommendations

1. 254. In the light of its foregoing conclusions, the Committee invites the Governing Body to approve the following recommendation:
   • The Committee urges the Government to take the necessary measures so that the Act on the restitution or compensation of assets confiscated from the trade union organizations can enter into force without delay and requests the Government to keep it informed of measures taken in this respect.