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EMPLOYEE BENEFITS
 12 Months Ended
Dec. 31, 2020
Disclosure of employee benefits [text block] [Abstract]  
EMPLOYEE BENEFITS

NOTE 23 - EMPLOYEE BENEFITS


   As of   As of 
   December 31,   December 31, 
   2020   2019 
   ThUS$   ThUS$ 
         
Retirements payments   51,007    64,824 
Resignation payments   8,230    9,722 
Other obligations   14,879    19,024 
Total liability for employee benefits   74,116    93,570 

(a) The movement in retirements and resignation payments and other obligations:


       Increase (decrease)       Actuarial         
   Opening   current service   Benefits   (gains)   Currency   Closing 
   balance   provision   paid   losses   translation   balance 
   ThUS$   ThUS$   ThUS$   ThUS$   ThUS$   ThUS$ 
From January 1 to December 31, 2018   101,087    (7,384)   (6,018)   5,819    (11,139)   82,365 
From January 1 to December 31, 2019   82,365    11,242    (4,390)   10,636    (6,283)   93,570 
From January 1 to December 31, 2020   93,570    (18,759)   (8,634)   3,968    3,971    74,116 

The principal assumptions used in the calculation to the provision in Chile, are presented below:


   For the period ended 
   December 31, 
Assumptions  2020   2019 
         
Discount rate   2.67%   3.13%
Expected rate of salary increase   2.80%   4.50%
Rate of turnover   5.56%   6.04%
Mortality rate   RV-2014    RV-2014 
Inflation rate   2.8%   2.8%
Retirement age of women   60    60 
Retirement age of men   65    65 

The discount rate corresponds to the 20 years Central Bank of Chile Bonds (BCP). The RV-2014 mortality tables correspond to those established by the Commission for the Financial Market of Chile and; for the determination of the inflation rates; the market performance curves of BCU Central Bank of Chile papers have been used and BCP long term at the scope date.


The calculation of the present value of the defined benefit obligation is sensitive to the variation of some actuarial assumptions such as discount rate, salary increase, rotation and inflation.


The sensitivity analysis for these variables is presented below:


   Effect on the liability 
   As of   As of 
   December 31,   December 31, 
   2020   2019 
   ThUS$   ThUS$ 
Discount rate        
Change in the accrued liability an closing for increase in 100 p.b.   (4,576)   (7,257)
Change in the accrued liability an closing for decrease of 100 p.b.   5,244    5,365 
           
Rate of wage growth          
Change in the accrued liability an closing for increase in 100 p.b.   4,946    4,989 
Change in the accrued liability an closing for decrease of 100 p.b.   (4,678)   (7,159)

(b) The liability for short-term:


   As of   As of 
   December 31,   December 31, 
   2020   2019 
   ThUS$   ThUS$ 
           
Profit-sharing and bonuses (*)   2,186    91,153 

(*) Accounts payables to employees (Note 20 letter b)


The participation in profits and bonuses related to an annual incentive plan for achievement of certain objectives.


(c) Employment expenses are detailed below:


   For the year ended 
   December 31, 
   2020   2019   2018 
   ThUS$   ThUS$   ThUS$ 
             
Salaries and wages   850,557    1,478,804    1,481,357 
Short-term employee benefits   41,259    147,576    132,394 
Termination benefits (*)   -    54,256    54,007 
Other personnel expenses   70,244    114,126    152,211 
                
Total   962,060    1,794,762    1,819,969 

(*) The termination benefits related to the reorganization under Chapter 11 are classified in Note 27, Restructuring activities expense.