Government yields to the unions and doubles its offer to end the truckers' stoppage

This Thursday, the government managed to close an agreement with the most relevant truckers' unions to end the mobilizations and lift the road blockades, after three days of protests that began at midnight on Tuesday and spread across various points of the country. The negotiations at La Moneda began around 9:00 a.m. and lasted until past 7:00 p.m. The outcome came after a Wednesday in which, despite the fact that the Executive broadened its offer — even flexing economic definitions in an attempt to contain the mobilizations — the talks ended without an agreement and the transporters kept the road blockades in place. The day began early at La Moneda with the arrival of Sergio Pérez, president of the National Cargo Transport Confederation (CNTC), and Juan Araya, head of the National Confederation of Truck Owners (CNDC). Both, historic figures of the sector, arrived representing organizations that, unlike the unions that launched the mobilizations on Tuesday, had not joined the protests. Hours later came the turn of the leaders who were mobilized: Cristián Sandoval, president of the Fuerza del Norte Transporters Confederation, and Freddy Martínez, of the Confederation of Truck Owners of the Central-Southern zone. Sandoval and Martínez took part in Wednesday's talks, in which the Executive broadened its offer and agreed to reverse the fuel price increases — $42 per liter for diesel and $39 for gasoline — freeze their prices until February, and extend tax benefits for cargo transport. Despite those concessions, both leaders kept the work stoppages going through Thursday and made clearing the roads conditional on the resumption of dialogue. Around 8:00 p.m., white smoke emerged from La Moneda: the dual-role minister Claudio Alvarado announced the agreement, flanked by government authorities and the union leaders. The result included new concessions from the Executive beyond the offer presented on Wednesday. "We have reached an agreement with the leaders present here and their bases to end the work stoppage, and so that all Chilean men and women can return to work in peace," said the minister, who highlighted that the understanding was the fruit of talks with the unions. "Here, nobody imposes anything on anyone," he emphasized. The main modification was an additional $100 per liter reduction for diesel, which will be added to the reversal of the $42 increase applied this week, leaving a total reduction of $140 per liter for that fuel. The ceiling corresponds to the November 12 price minus the announced reduction — that is, $142 per liter for diesel, and $39 pesos for gasoline. "We have agreed, in addition to reversing the aforementioned increases, to lower the price of diesel by an additional $100, in view of the significant increase this fuel has suffered in recent months," Alvarado explained. Added to this was the commitment to suspend further fuel price increases until March 31, 2027, extending the deadline announced yesterday. During that period, prices may stay the same or go down, but not exceed the established ceiling. "This will be a ceiling value for increases, but if over the course of these months the signals are favorable and the calculation formulas indicate a downward trend, the decrease will be passed on," the minister said. The agreement also includes modifications to tax benefits for cargo transport. Alvarado committed to renewing the diesel specific tax refund throughout 2027, whose current legal validity ends on December 31. In detail, an increase in the recovery percentages for the different tiers of transporters is established: for those with annual sales of up to 2,400 UF, the refund will rise from 80% to 90%; while for those exceeding 20,000 UF, it will go from 31% to 50%. It was also agreed to raise the toll recovery for interurban buses from 35% to 70%, and to correct the application mechanism of the specific tax when it yields a negative result, eliminating the obligation to pay that debit in form 29 and establishing a compensation account. Closing his remarks, the minister sincerely thanked the unions "for their effort." In turn, the leaders highlighted Alvarado's role. "The man rose to the occasion," said one of them. After Alvarado, the Finance Minister, Jorge Quiroz, took the floor to explain the economic context in which the agreement was reached and to defend the cost of the measures committed to by the Executive. Quiroz explained that the negotiations were approached with three objectives in mind: fiscal responsibility, economic growth, and, as much as possible, mitigating the impact of the fuel price increases. Within that framework, he acknowledged that the agreement will carry a significant fiscal cost, on the order of US$500 million, "both this year and next." "It is an affordable cost, within our fiscal consolidation objectives. It does not alter our targets," the minister said. **Pressure on La Moneda** After three days of strikes and road blockades, pressure on the government increased this Thursday with the incorporation of other sectors, such as fishermen and bus drivers, into the demonstrations. The expansion of the offer also strained the Executive due to its fiscal impact. Although Quiroz had raised objections, the minister participated in drafting the alternatives and, at Kast's request, left Valparaíso to join the negotiations at La Moneda directly. In parallel, the President hardened his tone against the blockades and the reappearance of "he who dances passes." Kast directly referred to that practice, associated with the 2019 social uprising: "Let us not return to that past where our nation was destroyed. Let us not allow anyone to have to get out of a vehicle and dance in order to pass. That is unacceptable. And no one should be subjected to that." **Parallel meetings** The pressure also carried over into the negotiations inside La Moneda, where the differences between the transport organizations were laid bare. Pérez and Araya, whose unions had not joined the strike, criticized the mobilized leaders. "There is anarchy, a chieftain pops up everywhere," said the latter. Sandoval responded: "He is a president without trucks," in reference to Araya. The four unions negotiated separately with the Executive. While Pérez and Araya sought to extend the freeze on diesel prices, Sandoval and Freddy Martínez demanded an effective reduction in fuel prices and changes to the specific tax. But the talks were not limited to the Palace. In parallel, the metropolitan presidential delegate, Germán Codina, received other mobilized organizations, including No+TAG, low-bed truckers, interurban buses, and groups of motorcyclists and tow truck operators. The meeting, agreed since Tuesday, ended without an agreement. For that reason, these local organizations will continue mobilized. "We are seeking three simple points, but for the government it has been very complicated to reach an agreement. There is no new information regarding the drop in fuel prices or the TAG and toll issue," said Andrés Alarcón, of No+TAG. He also questioned that the Executive negotiated separately with the leaders at La Moneda: "It is not convenient for us to be separated." Already a subscriber? 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