Purpose: The purpose of this paper is to provide an overview of recent developments in employment relations in Chile, focusing on recent episodes of contract labour mobilisation in the forestry and copper mining sectors. Design/methodology/approach: This paper is based on a consolidation of existing evidence from a range of primary, secondary and tertiary sources. Findings: The paper demonstrates the inadequacy of Chile's employment relations institutions to protect vulnerable workers and shows the capacity of contract workers to overcome such limitations by recurring to mobilisation. It argues that contract labour mobilisation rather than a shift left in government seems to offer a more plausible explanation of current developments in Chilean employment relations. Research limitations/implications: The paper identifies salient issues but further research is necessary to understand the actual social processes of collective action involved in recent episodes of contract labour mobilisation. Practical implications: This information could contribute to better policy making, better management of the employment relationship, and informing the revitalisation of labour movements. Originality/value: There are few studies on contract workers' collective action particularly in developing countries, and a contribution is made to critical debates on the sustainability of Chile's neoliberal socio-economic and employment relations system. © Emerald Group Publishing Limited.