Telecom workers accept 20% wage increase

Members of the Buenos Aires telecom workers federation (Foetra) in Argentina have accepted a wage increase agreement proposed on Saturday (Dec.4) by Telecom Argentina (NYSE: TEO) and Telefónica de Argentina (NYSE: TAR), local press reported. Foetra members accepted a 20% increase in wages and a one-off payment of 500 pesos (US$167) offered by the operators, and have now finished protest measures. All parties also agreed to launch new discussions about the terms of the companies' collective contracts and the union's privilege to determine the category of telecom workers. The workers finished sit-ins at control centers that manage telephony, telex, data, internet and bank clearing and all services are now functioning normally. During the 11-day strike, telecom workers took control of 180 company buildings in Buenos Aires and the federal capital district. Telecom and Telefónica said they feared the strikes would affect services like customer care, domestic repairs and long distance telephony. The companies originally offered a 7% salary increase, arguing that they had already adjusted salaries by 48% since devaluation. Foetra has scheduled a general meeting of over 3,000 members for Thursday (Dec.9) to take a final decision on the dispute.