Wednesday, March 9, 2011

Cuban state layoffs move slowly, workers uneasy | Reuters

EXCERPTS:

"Cuba's program to slash 500,000 state jobs nationwide has barely gotten off the ground in the provinces, as officials scramble to provide alternatives and deal with unease and anger over the layoffs.

Confusion about how to implement the cuts, a lack of alternative jobs and worker resistance have led President Raul Castro to drop a deadline to carry out the plan by March.

The layoffs, aimed at cutting expenditures by the debt-ridden government and increasing productivity on the Caribbean's biggest island, are a key part of economic reforms Castro says are critical to the survival of Cuban communism.

Some 3,000 jobs have been cut in eastern Granma province since the program started in October, a similar number in adjacent Santiago de Cuba and 1,000 in central Camaguey, local officials told Reuters last week.

But that is just 10 percent of the 70,000 jobs they said were slated to go by March in the three provinces and already the experience has proved wrenching for a society where a secure job had been guaranteed for decades under a centrally run socialist economy.

"We never know now if tomorrow we will wake up with a job or not and it was never like that before," said a middle-aged woman in Santiago de Cuba, asking that her name not be used.

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Castro's reforms envision a growing "non-state" retail and farming sector and more efficient state-run companies. They are expected to be approved at a Communist Party congress in April.

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Granma's provincial vice president for economic affairs, Raul Lopez Rodriguez, insisted the reorganization would continue, but admitted only 10 percent of those laid off could be absorbed by a shrinking state sector.

The remainder will have little choice but to return to the land or strike out on their own.

"You are going to see a reorganization of the labor force to improve efficiency and those who remain must be paid much more," he said. He estimated that average monthly wages, now about 440 pesos ($20), would need to double to motivate workers.