Brazil opposition challenges Lula wage hike

[Quetzal]

Brazil opposition challenges Lula wage hike

BRASILIA, Brazil, May 5 (Reuters) - Brazilian opposition parties on Wednesday launched an attack on the government's modest minimum wage hike and gave President Luiz Inacio Lula da Silva another headache as he fought to control spending.

Lula was taken off guard as opponents set up a Congressional commission into last week's 8.3 percent wage hike that disappointed workers but pleased markets keen to see fiscal discipline.

The challenge came as Lula's center-left government struggled to reach a pay accord with public workers who have threatened a general strike this month.

"While they (the government coalition) were messing around we installed a commission," said one legislator, who asked not to be named.

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http://www.forbes.com/personalfinance/funds/newswire/2004/05/05/rtr1360296.html