President Cristina Fernández de Kirchner announced yesterday that she will send a proposal to Congress today amending the current Work Injury Law that modifies the terms by which workers seek compensation for work-related injuries.

During the same appearance, the president also announced a decree that permits the establishment of not-for-profit workers’ compensation insurance collectives.

President Fernández explained that the reform is intended to increase competition in the workers’ compensation field. “There was a very important demand from the whole society because it was created to give greater competitiveness to the whole economy,” she said.

The measure establishes “opción excluyente”, which specifies that an employee seeking compensation must either choose a pre-established settlement indemnity issued by a private insurer (ART) or take legal action. Previously, victims could first collect from an ART and later pursue legal action as well if they felt entitled to greater compensation. In addition, civil courts, which generally offer lower settlement awards and longer arbitration times, will now handle workers’ compensation cases. Such cases were previously seen in labour court.

Furthermore, the proposal stipulates that employees now have a maximum of 15 days after sustaining an injury to submit a compensation claim.

The reform also raises the set rate of settlement compensation by 20% and establishes a schedule for future adjustments. The rate will be adjusted each semester according to the Ripte Index estimated by the Ministry of Labour. To compensate for increased compensation rates, the reform includes a cap on lawyers’ fees at 20%. Typical fees currently stand around 35-40%.

In the same appearance, President Fernández announced a decree allowing the establishment of not-for-profit work-related injury insurance providers by unions. She noted that they were intended to compete with ARTs.

ARTs currently collect compensation from 550,000 companies on behalf of 8.7 million employees. There are an estimated 550,000 accidents per year.

The ART Union described the reform as “a great step towards solving the problems afflicting the Labour Risks system.”

The president also reminded her audience that the Work Injury Prevention Law is still pending and predicted its resolution to be a challenge. “The longer and more complex debate will come later with the topic of accident prevention,” she concluded.

The Mexican government announced today the release of approximately US$1.360m to state and municipal authorities to strengthen the institutions of security and justice in the country.

The loans represent part of the federal government’s plan to transfer responsibility for security and justice to lower levels of government.

Secretary of the Interior Alejandro Poire announced that the funds would be dispersed through various agreements between the federal government and the 32 states comprising the Republic.

“The delivery of these resources is accompanied by a clear demand, firm and unquestionable from society, that each of the states and municipalities yield concrete results that translate into greater security for the population,” Poire said.

Additionally, the resources will be funnelled through four new programs that comprise the country’s revamped criminal justice system: the Fund for Public Safety, the creditable police subsidy, the subsidy for municipal public safety, and the Support Program for Public Safety.

Secretary Poire emphasised that he would like to see this process accelerated and bringing measurable results to Mexican citizens as soon as possible, given the intense state of violence entrenched in the country.

“Entities should accelerate the pace, so that in 2016 the whole country is operating this new system of criminal justice. We have until 2016 to complete the reform, and it is a term that we cannot afford to delay,” Poire stated.

Under the current presidential term of Felipe Calderón, who came to power in 2006, an estimated 50,000 people have died as a result of violence generated from drug trafficking.

An unnamed government source confirmed to Clarín newspaper this morning that a draft proposing healthcare reforms has been circulating round the Casa Rosada. The draft, if sworn in, would dramatically reduce the power of syndicates by centralising funding.

It includes proposals for an official nationwide health body, with the power to contract medical services. Currently, the budget for social services, including medical services, is controlled by syndicates, who contract medical care. In turn, they receive medical insurance contributions.

As it stands, 300 syndicates throughout the country manage an annual package of AR$30 billion. It is hoped that by centralising funds and cutting out the intermediary, the system will be financially and logistically more efficient.

Furthermore, direct financing between the central body and clinics will stamp out the high levels of corruption within management of the social service budget. Contracts are often given to private medical companies that charge higher tax rates, and as a result, healthcare infrastructure is compromised, and far from independent.

Former health minister Graciela Ocaña spoke of his support for the proposed changes on Radio 10′s morning show. Ocaña fell out of favour with the Frente para la Victoria (FpV) party and left government after an acrimonious conflict with incumbent leader of the General Confedoration of Labour (CGT), Hugo Moyano. “There is a fine line at the moment between the interests of the Unions and the social service budget,” he said.