VENEZUELA APPROVES WAGE INCREASES, PRICE CONTROLS
Venezuelan president Jaime Lusinchi
approved a general wage increase in the form of bonuses ranging
from 20 to 30 pct and a 120-day price freeze on a basket of
basic consumer goods.
    Both measures, which take effect on May 1, were approved by
the cabinet. They will be announced to the nation by Lusinchi
in a televised address tonight but the text of the decrees was
released this afternoon.
    Businessmen, who met Lusinchi, opposed the pay rise, saying
it will fuel inflation. The inflation rate was 11.5 pct in 1986
and private economists say it will be 25 to 30 pct in 1987.
    The central bank said first quarter inflation was 6.3 pct.
    The wage increase for public and private sector employees
will be 30 pct on salaries of up to 2,100 bolivars a month. For
salaries of from 2,101 to 6,100 bolivars 25 pct and for those
of 6,101 to 20,000 bolivars 20 pct.
    The measures were taken in response to a request from the
Venezuelan confederation CTV for an increase to offset the loss
in the purchasing power of workers' salaries. It estimated the
loss at 40 pct.
    The general wage rise is the third granted by Lusinchi
since his government took office in February 1984.
    The wage increases are a bonus and will not be considered
in calculating benefits or severance pay, the decree said.
    At the same time, Lusinchi declared a freeze on lay-offs
and firings for the next 120 days.
    The price freeze applies to a group of 120 foods and other
consumer goods declared to be "of primary necessity."
    It does not apply to prices charged by agricultural
producers or to goods for which the price is falling.
    The decree establishes fines of between 1,000 and 500,000
bolivars for merchants who violate the price control measure.
 REUTER
