By Shasta Darlington, CNN
September 13, 2010 -- Updated 1650 GMT (0050 HKT)



Havana, Cuba (CNN) -- Cuban announced on Monday it would lay off "at least" half a million state workers over the next six months and simultaneously allow more jobs to be created in the private sector as the socialist economy struggles to get back on its feet.

The plan announced in state media confirms that President Raul Castro is following through on his pledge to shed some one million state jobs, a full fifth of the official workforce -- but in a shorter timeframe than initially anticipated.

"Our state cannot and should not continue maintaining companies, productive entities and services with inflated payrolls and losses that damage our economy and result counterproductive, create bad habits and distort workers' conduct," the CTC, Cuba's official labor union, said in newspapers.
Castro had announced layoffs in August, but said they would occur over the next five years.

At the time, he said the government "agreed to broaden the exercise of self employment and its use as another alternative for the employment of those excess workers."

The drastic and unprecedented economic changes have many Cubans worried that jobs they had long taken for granted under the Communist government will no longer be guaranteed.

Others are hopeful that they will have more freedom to set prices and earn more than the average state wage of $20 a month.

The state currently controls more than 90 percent of the economy, running everything from ice cream parlors and gas stations to factories and scientific laboratories. Traditionally independent professions, such as carpenters, plumbers and shoe repairmen, are also employed by the state.

State media on Monday did not give details about where private enterprise would be allowed to grow or which sectors would suffer layoffs, but did talk about which areas are still strategic.

"Within the state sector, it will only be possible to fill the jobs that are indispensable in areas where historically the labor force is insufficient, like agriculture, construction, teachers, police, industrial workers and others."

The announcement avoided the word "private," but said alternative forms of employment to be allowed included renting or borrowing state-owned facilities, cooperatives and self employment and that "hundreds of thousands of workers" would find jobs outside of the state sector over the next few years.
Castro has launched a few, small free-market reforms since taking over from his brother Fidel Castro in 2006.

In April, for example, barbershops were handed over to employees, who pay rent and tax but charge what they want. Licenses have also been granted to private taxis.

For a couple of years, fallow land in the countryside has been turned over to private farmers. The more they produce, the more they earn.

http://edition.cnn.com/2010/WORLD/americas/09/13/cuba.economy/

No surprise here.....
What say you comrade ABC?

There is no time-frame more cursed for authoritarian regimes than when these attempt to change their color. By forcing 500,000 people into an environment poorly prepared for such numbers, Cuba risk a strong backlash; especially if the hoped for jobs don't develop. And Cuba has actually talked about an excess of 1,000,000 people in the public sector. The little that the majority obtain from the government is being removed, and this could be Cuba's most difficult moment. And remember, when faced with the enormous difficulties after the collapse of the Soviet Union in 1991, Cuba initiated changes during the Special Period. These changes increased productivity in the economy, especially the food or agricultural sector, but became a bone of contention when the obvious implications of liberalization begin to work themselves free of central government dictates: the small but notable development of class or economic diversification. Cubans that took risk, and produced better outcomes got more of the goodies in society, and this was beyond the pale for Fidel. He ordered the termination via "legal maneuver." Taxes were increased to dry-up market possibilities and increase State obligation also increased thus cutting the incentive based initiative.


I guess Fidel is going to have to re-state his message anew: "The Cuban Model doesn't even work for us."


Interesting times ahead for Cuba. Stay tuned.

I was never a collectivist or communist.
But central planning is required. If too many people grow a certain crop prices drop and the farmers cannot afford fertilizer for the next crop.
So as in China state should buy at a certain price and if there is a surplus of say grain encourage people to rear pigs.
S.

Cuba to cut one million public sector jobs


Manuel Cardenas repairs shoes in La Habanera state-run workshop in Havana Cuba's government employs about 85% of the country's 5.1 million workers

Cuba has announced radical plans to lay off huge numbers of state employees, to help revive the communist country's struggling economy.

The Cuban labour federation said more than a million workers would lose their jobs - half of them by March next year.

Those laid off will be encouraged to become self-employed or join new private enterprises, on which some of the current restrictions will be eased.

Analysts say it is biggest private sector shift since the 1959 revolution.

Cuba's communist government currently controls almost all aspects of the country's economy and employs about 85% of the official workforce, which is put at 5.1 million people.

As many as one-in-five of all workers could lose their jobs.

"Our state cannot and should not continue maintaining companies, productive entities, services and budgeted sectors with bloated payrolls and losses that hurt the economy," the labour federation said in a statement.

"Job options will be increased and broadened with new forms of non-state employment, among them leasing land, co-operatives, and self-employment, absorbing hundreds of thousands of workers in the coming years," the statement added.
Free enterprise?

To create jobs for the redundant workers, strict rules limiting private enterprise will be relaxed and many more licenses will be issued for people to become self-employed.

Private businesses will be allowed to employ staff for the first time.
Cuban leader Raul Castro President Raul Castro has said the state's role in the economy must shrink

The self-employed will have access to social security and will be able to open bank accounts and even borrow money to expand their businesses.

They will also have to pay tax on their profits and for each person they employ, something which could dramatically boost the government's income.

And they will be able to negotiate contracts to provide services to government departments.

A minority of Cuban workers already work for themselves, for example as hairdressers and taxi-drivers, or running small family restaurants.

There is also a thriving black economy, with many people working independently without proper permission from the state.

The BBC's Fernando Ravsberg in Havana says salaries in Cuba's state sector are so low that many employees could be better off working for themselves.

But he says not everyone has the skills and initiative necessary to be self-employed.

He adds that the government plan does not foresee any kind of advice being offered to people seeking to set up their own businesses.

Economic crisis

President Raul Castro outlined some of the changes in a speech in August, saying the state's role in the economy had to be reduced.

"We have to end forever the notion that Cuba is the only country in the world where you can live without working," he said.

Cuba's state-run economy has been gripped by a severe crisis in the past two years that has forced it to cut imports.

It has suffered from a fall in the price for its main export, nickel, as well as a decline in tourism.

Growth has also been hampered by the 48-year US trade embargo.

Mr Castro became Cuba's leader when his brother, Fidel Castro, stepped aside because of ill-health in 2006.

Atabey

This is the kind of behaviors I was speaking the other days when me and others were conversing about how to make the big change in Cuba. This kind of action is what I was referring to when I said the change would have to take years else Cuba will see a backslash from the Cubans. How are they going to create 500,000 jobs in the middle of a world recession when even USA is having a hard time doing it. These people will be cut loose and left in the cold now.

No way - when I was in UK they created many jobs. Ladies can become land girls, foresters, etc.
http://en.wikipedia.org/wiki/Women%27s_Land_Army

Men can help in the army as observers, firefighters etc to help with possible invasion!

http://www.rocassoc.org.uk/

Also educating the people to save electricity!
Great news from Cuba!

http://www.invasor.cu/index.php/en/economy/4864-cuba-has-new-energy-saving-plan-

People are needed to make more beehives.
http://www.invasor.cu/index.php/en/economy/5291-beekeeping-production-improved-in-avila

S.

" Ladies can become land girls,"

More like Ladies of the Night. I observed so many while in Havana in 2006 that I doubt many would choose the hard life of the land for the soft cushioning of a bed.

Life on the land is not so hard. Drive a tractor for a few hours or wash some fruit and you are done for the day. Then its cider ( scrumpy ) dancing .......

http://www.users.globalnet.co.uk/~gunning/scrumpy/makingit.html


Actually when there were few apples there were small sugar beets that were rejected by the factory and elederberry or ginger wine was possible,

One time the big glass flask exploded..........

Very soon after my pet eel escaped ........ the smell must have been too much!

By the way when you make this you can use scraps to feed white rats. There is still a market for white rats.....

S.