The World - News from May 4, 1988

Brazil’s universities were closed and many government offices stood idle as civil servants began a 48-hour strike demanding an end to a wage freeze. The workers defied threats by officials of President Jose Sarney’s government to fire strikers. “People are not listening to Sarney’s threats,” said Humberto Rangel, a spokesman for the strike organizing committee. The Finance Ministry announced a two-month freeze for federal employees April 7 as part of an austerity program to cut the treasury’s huge deficit. With inflation running close to 20% a month, the freeze translates into a sharp drop in real wages.