HDI Seguros strike enters 3rd week

A strike at one of Chile's biggest P&C insurers has entered its third week.

Unionized workers at HDI Seguros initially walked off their jobs on September 10 after rejecting a company pay and benefits offer following group contract negotiations.

Yorka Delgado, treasurer of HDI Seguros' workers union, told BNamericas on Monday no new talks were scheduled but that union officials were open to resume dialogue.

"We're willing to enter negotiations at any time," Delgado said.

About 43% of HDI Seguros' 630-strong workforce is unionized.

Fewer than 10% of the unionized workers at the company indicated they would return to work on Wednesday, the earliest they can do so under the country's labor laws, Delgado said. "The rest will continue on strike until they obtain the benefits we're requesting," Delgado said.

The union is seeking an increase in the basic salary - the amount paid excluding sums paid for the likes of transport. This has not increased in three years, Delgado said.

It is also seeking lunch vouchers for all employees as well as an end-of-strike bonus for union members only. Company management wants non-unionized to workers to receive this payment also, something the union is against, Delgado said.

Under Chilean law, companies are limited in terms of what they can say publicly during official strike periods - and do not tend to comment.

In a regulatory filing issued earlier in the month, the company, a subsidiary of Germany's Talanx, said it would work to mitigate any impact on clients.

HDI entered Chile in 2008, when HDI-Gerling bought Chilean P&C insurer Ise. In 2015, HDI paid US$204mn for full control of local company Magallanes, a P&C, life and surety insurer.

At the end of June, by direct premiums, HDI Seguros was the fourth biggest of Chile's 32 P&C insurers. HDI's surety business was ranked 20 while HDI Vida was the fourth smallest of the country's 36 life players, according to data from sector association AACh.

For January-June, HDI Vida posted a loss of 7,993 UF (inflation-linked units, about US$341,873). HDI's surety unit also posted a loss, of 16,514 UF, while HDI Seguros reported a profit of 175,057 UF.