Argentinian labour leaders are demanding the largest pay rises in 15 years to compensate for inflation that they say is at least three times the official estimate. According to the government, Argentina's inflation is at 10.7%, but this figure has been challenged by economists and labour groups.
Groups that have won pay rises include sugar-cane harvesters (a 43% increase in wages), cafeteria employees (35%) and janitors (28%).
While former Finance Secretary Daniel Marx believes that such wage hikes will lead to an increase in prices and therefore reduced purchasing power, effectively slowing economic growth, Economy Minister Amado Boudou says that they are in line with government's policy for "the redistribution of wealth".
The brisk rise in the prices of goods and services has led Argentinian unions to consider inflationary expectations instead of just previous price increases when determining how much of an increase to ask for, especially since official claims are not believed.