Bolivian President Evo Morales raised the minimum wage by 20 percent on Wednesday in a bid to defuse social tensions over hefty fuel price increases that have sparked protests in the impoverished Andean country. Morales' government cut state fuel subsidies on Sunday, pushing up prices by as much as 83 percent and triggering a strike by truckers and bus drivers.
Bolivia's largest trade union called for a day of national rallies to denounce an increase in fuel prices, joining powerful citizen groups in criticising the leftist Morales in a protest with roots in his support base. "I've chosen to look after the national economy even though this will cost me politically. Let them say that this is making Evo Morales weaker. They can say whatever they like, but my first priority is the motherland," Morales said in a televised speech. The decision to cut fuel subsidies is part of a plan to encourage more investment in the energy sector. State energy company YPFB has said it will pay more for crude oil.
As well as increasing the monthly minimum wage by 20 percent to nearly $115, Morales, who is popular among the indigenous majority, also announced year-end bonuses for public-sector workers as a means to offset price increases resulting from the rise in fuel prices. The country's largest trade union, the Bolivian Workers Central group known by its Spanish acronym COB, called for "a national day of rallies against the fuel hike" on Monday.