61. Wage rises over and above increases in productivity could force companies to cut jobs and could spark an inflation spiral, he argued. 62. Wage rises would be a key factor in the inflation outcome, it added. 63. Wage rises were larger for unskilled and semi-skilled workers than for employees falling in the highly skilled category, the office said. 64. While small wage rises might slow consumption in the short term, in the longer term they would lead to growth and creation of jobs, the bank said. 65. It singled out for criticism recent agreements on wage rises well above inflation, and the lack of flexibility on pay to encourage taking on jobless workers. 66. Leading Mozambican economist Ruy Baltazar said the wage rise would mean an expansion in domestic consumption which could only be positive for industry. 67. Military chiefs, however, said much of the increase would disappear in wage rises. 68. Over the weekend, employers signalled they were taking a tougher line by suggesting they might tie any wage rises to increases in productivity. 69. Over the weekend, employers signalled they would take a tougher position at the summer talks by suggesting they might tie any wage rises to increases in productivity. 70. Suratno said after the first two wage rises, Apindo told the government that any increase in wages should be linked to an increase in productivity. |