Emphasis is also placed on fostering the participation of the private sector in the financing and construction of homes for these groups. This procedure allows government funds to be channeled into new subsidies. The 1981 reform to Chile's social security system created a pension scheme based on individual savings. The AFPs invest and grow workers' funds in a variety of activities and financial instruments, both in Chile and abroad. The government plays a regulatory role in the operation of the AFPs and guarantees a minimum stipend if pensions fall below subsistence levels.
Negotiation is the primary mechanism for conflict resolution.
Between 1990 and 1993, for the first time in the history of Chilean labor relations, four agreements were signed among the government, workers and business owners on a variety of labor-related issues, including the minimum wage. In January 1994, a new Labor Code was approved which formalized the reforms endorsed by politicians across the spectrum. Those changes were designed to improve protection during collective bargaining, enhance individual contracts and the right to unionize, as well as to expedite procedures handled by the Labor Courts. In addition to policies aimed at keeping unemployment low, the government is eager to support vocational training and continuing education. Part of that effort includes passage of a law creating the autonomous National Fund for Trade Union Training which commenced operations in July 1994.