FEMSA Strike Highlights Burdens Of High Inflation

The problems for companies operating in areas of high inflation have been brought into focus in Venezuela, where Coca-Cola FEMSA is currently struggling to reach an agreement with its workers over wage increases. Workers at FEMSA's plant in Valencia have been striking for a week, with FEMSA suggesting that the union had made demands for a 210% pay increase that would jeopardise the viability of their business. In 2010 inflation in Venezuela averaged 34%, but the recent currency devaluation is likely to put upwards pressure on inflation over the short term, particularly in the areas of food due to Venezuela's

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