Chilean labor union proposes new fund for Universal Daycare

The Central Unitaria de Trabajadores y Trabajadoras (CUT) has submitted a formal proposal to the Chilean Chamber of Deputies to resolve funding issues for the Universal Daycare (Sala Cuna Universal) project. To avoid using Unemployment Insurance funds—a point of significant controversy—the CUT proposes creating a National Comprehensive Care Fund. This fund would be financed by a 0.20% contribution from large companies, alongside permanent fiscal support and a state guarantee of sufficiency. The proposal aims to protect workers' resources and ensure that small and medium-sized enterprises (SMEs) do not face additional costs or extra contributions.

The legislative debate also involves a shift in how the right is defined. While previous versions focused on the working mother, recent legislative changes suggest the right belongs to the child under two years of age. This has sparked debate regarding parental autonomy and the state's role in childcare. Currently, Chilean labor law requires companies with 20 or more female employees to finance daycare, a threshold critics argue acts as a barrier to hiring women.