Venezuela's CTV Foresees Renewed Social, Labor Unrest
CARACAS -(Dow Jones)- Venezuela is heading to renewed social unrest similar to the days that led to the temporary ouster of President Hugo Chavez last month if the country's current labor policy remains unchanged, one of the directors of the Venezuelan Workers Confederation, or CTV, told reporters Thursday. If the social problems as presented by the CTV are not resolved before May 30, "we'll again have social and labor unrest," Froilan Barrios said. Given the increase in oil prices, the critical state of the economy and with only a modest wage hike of 20% for one million public sector workers can't be justified, he said adding those workers should be compensated for inflation which is expected to the end the year around 30%.
The CTV, together with the private sector, staged a nationwide strike that temporarily toppled Chavez last month. The ousted president was reinstated two days later by loyal troops and on the back of popular support. Chavez announced a 60-day firing freeze upon implementing a 20% pay hike.
With political and economic uncertainty rife, few are willing to invest money in this Latin American country, although Chavez has recently adopted an uncharacteristically conciliatory stance toward opposing views and reshuffled his economic cabinet. However, a national dialogue initiated by Chavez appears to be falling apart as several members have already walked out of the roundtable discussions.
Unemployment is around 16% of the country's work force of 11 million, although some independent polling agencies estimate unemployment as high as 20%.
- By Fred Pals, Dow Jones Newswires;58212-5641339; fred.pals at dowjones.com.
(This story was originally published by Dow Jones Newswires)
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