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.
 REUTER
