Venezuela Readies to Raise Wages

[magbana]

Venezuela Readies to Raise Wages

Caracas, Apr 30 (Prensa Latina) The Venezuelan government is putting the final touches on the increase in minimum wages to correspond to the main indicators of the national economy.

At the moment the Venezuelan minimum wage is $286, more than Chile, Colombia or Brazil, and President Hugo Chavez said the decision about the amount of salary increase will be announced soon.

Inflation closed with a variable 22.5 percent in 2007 and this year's most recent evaluations put it at 19.5 percent.

Therefore, analysts estimate options of increase between 10 and 30 percent to put salaries between $314 and $371.

Among the elements to consider is the impact of the measure on performance of the National Consumer Price Index.

In addition, the 52.7 percent price rise of several main foods was adjusted in the last few months (dairy, pasta, rice, chicken, cornmeal and sugar).

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PL-26

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[magbana]

1. And do so with a 30% increase!

Venezuela's Chavez raises minimum wage by a third
Reuters
May 1, 2008
http://www.reuters.com/article/marketsNews/idUSN3056309120080501

CARACAS - Venezuela's President Hugo Chavez pumped up the minimum wage by 30 percent on Wednesday and said putting cash in workers' pockets came before his battle with Latin America's highest inflation rate.

Hundreds of union members cheered as Chavez signed the decrees to raise wages, which will come into effect on May 1.

The socialist president vowed to fight prices, which rose 22.5 percent last year, but said the government was first committed to maintaining workers' buying power.

He also raised public sector workers' wages by 30 percent. The minimum wage will now be $372 per month. Chavez said this was the highest in Latin America.

Many Venezuelan workers also receive benefits like subsidized food and housing.

Venezuela raised interest rates on Wednesday to encourage savings and soak up liquidity, as the country enjoys a bonanza from government spending of record oil income.

Chavez urged workers to save, but with interest rates still lower than inflation, many Venezuelans would rather spend, spurring a major shopping spree on consumer goods.

A series of debt issues has dampened inflation slightly in recent months and the government has slowed growth in public spending.

Some economists say the government will struggle to stick to spending caps as its coffers fill with revenues from record high oil prices ahead of local and state elections in November.

[Judi Lynn]

2. Good news, for sure. One more good step forward. Thanks. n/t