The World : Peruvians Get Pay Hikes

Peru President Alan Garcia, attempting to promote his economic recovery program, approved pay increases ranging from 20% to 35% for most Peruvian workers, who have staged a flurry of minor strikes to protest the high cost of living. Garcia, elected in 1985 during Peru’s worst economic crisis of the century, has vowed to keep wages growing faster than inflation, which is projected to reach 100% this year. Independent economists say the pay increases--for all Peruvian workers except union members in the private sector, who must negotiate contracts--will lead to a new round of inflation. The wage package, the third round of increases for workers decreed by Garcia this year, will increase the minimum monthly wage by 22% to $137.