Chile's new civilian government, the centre-left Concertación de Partidos por la Democracia, has been strongly praised for its efforts to strengthen the rights of labour and correct Chile's severe social inequalities. After nearly a decade of civilian rule, however, it has become increasingly clear that these efforts have not succeeded. Indeed, one of the defining features of Chile's new democracy is the profound inequality and imbalance of power between capital and labour upon which it has been constructed. This article seeks to explain this outcome and examine its implications for Chile's post-military political and economic order.