LATIN AMERICA WEEKLY REVIEW 10 NOVEMBER 1977[SANITIZED] - 1977/11/10

• Document Type: SPECIALCOLLECTION
• Collection: Argentina Declassification Project - The "Dirty War" (1976-83)
• Document Number (FOIA) /ESDN (CREST): 03016873
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 24
• Document Creation Date: April 3, 2019
• Document Release Date: April 12, 2019
• Publication Date: November 10, 1977

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National
Foreign
Assessment
Center
3.5(c)
EO
EO 13526
3.3(b)(1)>25Yrs
EO 13526
3.5(c)
NR
Latin America
Weekly Review
10 November 1977
3.5(c)
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RP ALA 77-065
10 November 1977
Copy
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LATIN AMERICA WEEKLY REVIEW
10 November 1977
CONTENTS
3.5(c)
Argentina: Labor Problems 5
This publication is prepared for regional specialists in the Washington community by
the Latin America Division, Office of Regional and Political Analysis, with occa-
sional contributions from other offices within the National Foreign Assessment
Center and from other agencies within the Intelligence Community. Comments and
queries are welcome. They should be directed to the authors of the individual
articles.
315eft
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would aggravate the delicate labor situation as well as
harm Argentina's international reputation.
Videla may have to contend with an increase in illegal
countersubversive activity if hard-line elements within the
security forces try to take matters into their own hands.
Although the current administration has evinced a desire
to stop human rights violations, measures to halt excesses
are not being strictly enforced. Complicating the issue
is the recent increase in terrorist activity in Buenos
Aires. The Montoneros terrorist organization, one of
whose goals is infiltration of the labor unions, has tried
in the past to identify with workers by undertaking acts
of violence and sabotage. Although the terrorists are
trying to take credit for any improvement offered by the
government, we have no evidence that they are behind the
current labor problems.
Minister of Economy Martinez de Hoz said last week
that the government would make no further concessions
beyond the 40-percent wage flexibility policy. Dismissal
notices have already been issued to workers who continued
to strike after being offered official salary increases.
If necessary, the government may apply the security law
and go so far as to mobilize troops to take over for
Y( striking workers. The military has assumed a tough
posture on the labor issue. For example, the Army
publicized a report of the killing of a strike provocateur
by a military patrol, probably as an additional warning
to striking workers.
3
Videla's military rivals, particularly junta member
and Navy chief Admiral Massera, may try to use the govern-
ment's current problems to undercut the President's
position. In addition, some hard-line military officers
are grumbling that Videla should have anticipated the
current labor problems and taken preventive measures.
3.5(c)
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Argentina: Labor Problems
The Argentine Government appears to have
at least temporarily, last week's widespread
content--the most serious labor crisis since
of former President Peron by the military in
Striking workers returned to their jobs over
end in response to the government's promise of wage
talks and its threat to enforce harsh antistrike laws.
Although the present crisis has subsided, further un-
rest would test the military government's authority and
its determination to pursue economic austerity measures.
The apparently spontaneous strikes, which spread rapidly
to transport, port, maritime, and power workers in Buenos
Aires and nearby areas last week, stemmed from a con-
tinuing decline in real wages. In an attempt to control
the situation, the government extended to state enter-
)prises the 40-percent wage flexibility policy it granted
to private firms last month. Until now, public sector
workers had not shared in unsanctioned pay increases
given by private employers to fend off worker dissatis-
faction.
suppressed,
labor dis-
the ouster
March 1976.
the week-
A number of state companies have already announced
wage increases of up to 43 percent under the new guide-
lines; other companies have initiated wage discussions.
State enterprise workers reportedly are dissatisfied
with the new pay hikes. Some were demanding increases
of up to 100 percent, but appear to have succumbed to
threats of dismissal and the argument that wage increases
can only be effective after employees return to work.
The workers' demands have placed the government in a
precarious position. Wage increases in any sector of the
economy will create pressures from other sectors, thus
jeopardizing the administration's salary policy--a key
element in the government's effort to reduce inflation.
If the government gives in to union demands, its economic
plans would be undermined. Although the government be-
lieves it must have strong emergency labor legislation on
the books, it recognizes that an assertion of authority
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