Informacion economica sobre Cuba

Cuba reports mixed results of labor reform

Fri Aug 31, 2012 4:09am IST

* More than 350,000 join "non-state" sector

* Unemployment nearly doubles since 2009

* Wages show little improvement

By Marc Frank

HAVANA, Aug 30 (Reuters) – Communist-run Cuba's five-year plan to cut

more than a million state j obs, create a strong "non-state sector" and

improve wages has made only limited progress, according to a government

report released this week.

Authorities announced the shift of state workers to private and leased

small businesses and farming in late 2009 as the core of a broader

reform of the state-dominated economy that employed 90 percent of the

workforce.

Authorities want to streamline the state and pull it out of secondary e

conomic activity in order to focus on improving the efficiency of larger

state-run companies and the wages they pay employees.

The report, "Workforce and Salaries," revealed some progress in

self-employment, often a euphemism for small businesses and their

employees, and cutting bureaucratic jobs, but little improvement in

wages. ()

The report said there were 5 million people employed in 2011, similar to

2009, while unemployment rose from 86,000 to 164,000.

Of those working, 391,500 were self-employed in 2011, compared with

147,400 in 2009, when the government loosened regulations on small

businesses.

More than 170,000 individuals have also taken advantage of a land lease

program begun in 2008, the government recently reported.

There was some significant progress reported in trimming the

bureaucracy. The number of "directors" fell from 380,000 in 2009 to

249,000 in 2011.

But if the shift from state to non-state employment is aimed in part at

improving state wages and thus performance, to date the plan has failed.

The average monthly wage increased from 429 pesos in 2009 to 455 in

20l1, the equivalent of just over a dollar based on the official

exchange rate of 25 to 1, no t nearly enough to stimulate productivity.

The government reported food prices alone increased 20 percent in 2011.

Cubans spend most of their wages on food, as health and education are

free, few pay rents or mortgages, there is no insurance, and few pay

income and property taxes.

http://in.reuters.com/article/2012/08/30/cuba-reform-idINL2E8JUI9I20120830


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