While Chile's economic elite is more powerful today than probably at any ti
me during the past 60 years, including under military rule, the return to c
ivilian rule has left Chilean labour politically marginalised, organisation
ally weakened, and with only very modest and precarious material gains. Thi
s article examines the pattern of labour-business-state relations embodied
in Chile's new compromise. It contends that the evolution of those relation
s during the 1990s can in large measure be traced to the strategy of opposi
tion that the centre-left adopted toward the military regime and, as a by-p
roduct of that strategy, its growing embrace of the regime's economic model
and business.