[Marxism] GRANMA: Cuba Has New Pay Incentive System

Walter Lippmann walterlx at earthlink.net
Wed Jun 11 20:27:19 MDT 2008

(This is the article to which Will Weisert of the AP was referring.
http://groups.yahoo.com/group/CubaNews/message/86379  and it's also
been discussed at length in a MIAMI HERALD article today as well.

MH/Robles: Cubans who work more will get higher salaries :

June 11, 2008

Cuba Has New Pay Incentive System

lourdes.p at granma.cip.cu 

Cuba's Ministry of Labor and Social Security has issued a new
resolution that regulates types and systems of payment and introduces
new worker incentives.

The new resolution aims to create a uniform salary policy for
companies already in the management improvement program and others
that are not in the process, said Carlos Mateu Pereira, vice minister
of Labor and Social Security.

The resolution stipulates the concept that businesses should have pay
incentive mechanisms for their different activities, according to the
nature of the work carried out by the worker.

This includes piecework with direct indicators according to the
production and services or other markers and efficiency in general,
said the Mateu Pereira.

The vice minister of Labor and Social Security said that for many
years the pay system has been based on results according to a general
indicator; be it profits, sales or revenue. The worker, whether in
production, services or management was paid for meeting the norm or
surpassing it.

Now workers in each specific area will be paid for meeting or
surpassing production targets. If they provide a service they will be
paid for quality. Management, for the most part supervisors, will be
paid according to certain general or specific indicators, but not by
direct parameters.


Resolution 9/08 states there is no limit to bonuses from surpassing
production norms of workers who are paid according to production
results for goods and services, providing that other efficiency
indicators incorporated in the pay system do not deteriorate.

The rest of the personnel working in the area of regulation and
control -such as managers, technicians and specialists in marketing,
human resources and economy- will normally have general and specific
indicators with a limit of a 30 percent incentive. The head of a
workshop can be considered a direct employee and as such has no pay

Mateu Pereira also said that all workers will receive up to a five
percent bonus for meeting their target goals.


Cuban companies that have not already implemented the management
improvement program have until August to redesign and adjust their
pay incentive indicators. If a firm has already made this redesign of
its payment system and had it approved by the corresponding ministry
they can immediately begin to apply it, said the vice minister.

Mateu Pereira said that with the correct implementation of the
resolution, the worker will earn what they are capable of producing
according to the socialist principle of distribution, each according
to their contribution; that is, pay according to quantity and

There has been a tendency in Cuba for everyone to earn the same
salary, a type of egalitarianism that is not advisable, said Mateu
Pereira. "That is something we have to work on since it has at times
led to a prevalence of paternalism where people, to avoid problems,
say 'I'll pay everyone the same and nobody will protest.' But it is
not fair, it is just as damaging to pay a worker less than they
deserve than it is to pay a worker more than they deserve."

Mateu Pereira said the new pay system should be seen as a tool to
help obtain increased productivity and better service. The system
will have to incorporate adequate controls, so that there is a fair
distribution of salaries and so that those who contribute more
receive more.

Los Angeles, California
"Cuba - Un Paraiso bajo el bloqueo"

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