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Significance

The strike was prompted by unions' rejection of the 27% ceiling the government attempted to impose on wage rises. With this ceiling, real wages will suffer further given existing high rates of inflation. In a context of falling employment rates and decreasing purchasing power, labour conflicts have mounted, boosting strikes and protests.

Impacts

Falling employment and real wages will continue to fuel labour conflict.

Wage rises above 27% appear inevitable in a pre-election context.

Doubts over INDEC's unemployment figures will revive lack of confidence in other official economic and social statistics.

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