Venezuela Preparing new Wage, Inflation Plan

President Jaime Lusinchi is preparing an economic package in response to demands from organised labour in Venezuela for a general wage increase and controls on inflation, the state news agency Venpres reported.

Venpres said the plan includes pay hikes and a “strategy against indiscriminate increases in prices or speculation.”

The Venezuelan Workers Confederation (CTV), the country’s largest labour group, last week proposed a general wage increase of between 10 and 30 pct and a six-month freeze on consumer prices and on layoffs.

The CTV asked Lusinchi to respond to its proposal before the May 1 Workers’ Day holiday.

Labour’s demands comes as private economists forecast inflation will reach between 25 and 30 pct in 1987 as the country begins to feel the effects of the December devaluation of the bolivar by 100 pct against the dollar.

Inflation increased 4.2 pct in the first two months of 1987, almost double the rate in the same 1986 period.

Venpres said Lusinchi is prepared to approve some price increases, but intends to protect the public against speculation and indiscriminate hikes in the cost of living.