Argentine gov't admits high inflation through 27% wage rise

Minister of Labour Carlos Tomada set into motion the National Minimum Wage Council with union and corporate representatives

Yesterday, a 27-per cent wage rise was announced. This will not represent any fiscal cost to the Argentine government, as companies will be the ones paying for it.

This wage increase was like admitting that, since December, inflation has grown at that same rate.

The measure satisfies Hugo Moyano and the General Confederation of Workers (CGT) in view of their support to the Kirchner couple. Health insurance contributions will increase. Official unionists await two more decisions that will affect government's income: a raise of non-taxable minimum, and a readjustment of income tax deduction. The leader of the CGT Hugo Moyano makes promises, Kirchner complies. Ones become more dignified than others.

Minister of Labour Carlos Tomada set into motion the National Minimum Wage Council including union and corporate representatives.

Through Minister of Labour Carlos Tomada and CGT leader Hugo Moyano, the government informed businessmen and the rest of the unionists gathered at the National Minimum Wage Council that employees will earn a minimum wage of AR$1,240 per month as of December 2008. This means a 27-per cent increase, close to the 30-per cent raise achieved by the metallurgical union, and the 19.5 per cent negotiated by Moyano last February as representative of the teamster union. Salaries will reach AR$1,240 in December, after a previous hike of AR$1,200 per month that will be paid as of August.