Cuban State Enterprises - Compete Or Die

Cuban State Enterprises: Compete Or Die / 14ymedio
Posted on September 2, 2015

Cuban state enterprises, the cornerstone of the country's centralized
economy, could be about to suffer a major setback with a new review
process. The inspection that concludes this coming November will
evaluate those entities that present losses and could determine to do
away with many of them, according to a report this Monday in
Trabajadores (Workers).

Among the measures to be adopted against the enterprises that do not
demonstrate profitability will also be the redefinition of their
organizational structures and the salaries of their workers. The
analysis should conclude before the next session of the parliament, this
year's last, to be held in December

The general secretary of the Workers' Central Union of Cuba (CTC),
Ulises Guillarte De Nacimiento – who is also a member of the Council of
State – alerted the official press that the country is heading towards
"an economic context in which monopolies will in no way prevail." He
made a call to "promote creative thinking about the enterprise system to
generate competitiveness."

Among the measures to be adopted against the enterprises that do not
show profitability, will also be the redefinition of their
organizational structures and salaries of their workers.

In remarks punctuated with the words "profit," "results" and
"efficiency," the official addressed the issue of granting new powers to
state sector enterprises seeking greater autonomy and flexibility. While
acknowledging that by their specific nature some enterprises may operate
at a loss, he affirmed that keeping them would require "approval from
(…) the Council of Ministers".

The mission of unions during this process, according Guillarte De
Nacimiento, will be to oversee a "continued raising of the rigor of the
evaluation of these enterprises and to mobilize the workers' collectives
to bring to the fore potential reserves of efficiency."

The union leader did not mention, however, that the workers could reject
or discuss the definition of "not profitable" assigned to their company,
nor that they could demand compensation or indemnification in cases of
loss of employment. The CTC will place itself, in this situation, on the
side of the management of the entities reviewed and the directives that
come from the State.

However, Guillarte De Nacimiento acknowledged that "in the end it is the
workers who pay the consequences, because their incomes are effected
when an enterprise does not achieved the planned results."

Source: Cuban State Enterprises: Compete Or Die / 14ymedio | Translating
Cuba -
http://translatingcuba.com/cuban-state-enterprises-compete-or-die-14ymedio/