1.
GV Government House
0.05

2.
LV Flag
0.06

3.
SV Workers sticking posters on wall
0.16

4.
SV Workers distributing leaflets to drivers
0.30

5.
SV Workers throw leaflets and beat drume (2 shots)
0.43

6.
GV Congress Building
0.45

7.
SV & CU Striking teachers chanting in crowd (4 shots)
1.07

8.
TV & SV Demonstrators with banners (3 shots)
1.18



Initials BB/1825 RS/PN/BB/1911



Script is copyright Reuters Limited. All rights reserved

Background: The "Social Pact" in argentina between workers, management and Government, which was designed to hold down the rate of inflation, is facing its greatest challenge from a new outbreak of labour unrest in the country.

Printers, newsmen, teachers, state-employed doctors and railwaymen are just some of the groups staging wild-cat strikes for higher pay and better working conditions.

In June last year -- during the Presidency of Hector Campora -- all Argentine workers received a wage increase of 20 U.S. dollars (eight pounds sterling) a month. The Government then froze both prices and incomes.

But, by March the social pact was beginning to creak dangerously. President Peron himself took direct charge of negotiations and a general wage increase was fixed at 13 per cent. Prices in the private sector remain frozen in theory and any increases must be approved by the Government. But many prices in the public sector have risen dramatically. Petrol prices rose by 100 per cent; public transport by 15 per cent; electricity by 80 per cent and gas by 30 per cent. Food prices have also risen.

Price controls contributed to holding Argentina's inflation rate to 7 per cent last year. Now the labour unrest is threatening to disrupt the agreement between workers, management and Government and observers fear prices could rocket again.