Brasília, 6/24/2004 (Agência Brasil) - Yesterday the government got approval of its minimum wage proposal of US$83.30 (R$260) in the Chamber of Deputies when the lower house rejected a proposal by the Senate to raise the minimum wage to US$88.10 (R$275).

The government victory in the Chamber of Deputies shows that it has solid support there, which is not the case in the Senate, says the minister of Political Coordination, Aldo Rebelo. The minister went on to admit that it was going to be necessary to do some work to build up a majority in the Senate.

"It will require an effort to get a workable majority [in the Senate]," the minister said. "This is not something that is foreordained. We will just have to work for it, negotiate politically. It will require persistence and persuasion."

As for the Lula campaign promise to double the purchasing power of the minimum wage during his term of office, Rebelo declared that the promise remains in force. "We are committed to that," he declared. Rebelo pointed out that with the US$83.30 minimum wage, its purchasing power is the highest it has been in 12 years. He added that the best recipe for increasing the value of the minimum wage was renewed economic growth.

With regard to the idea of disconnecting the minimum wage and social security benefits, Rebelo said it was just an idea. "For the time being, it is not really being considered," he said.

(Translator: Allen Bennett)