Foreign Policy Blogs

Salary reform pending

worker-with-salarySince 2006 when he was “provisional” president, Raúl Castro has pushed for a salary reform that would eliminate the previous egalitarian system in favor of a system familiar in most other countries: paying higher wages to individuals who work harder and yield higher production. The idea, of course, is to spur production by creating an incentive to work hard—incentive that Cuban workers otherwise do not have. The regime set August 1, 2008 as the start date for this new “results-based pay” system, but even today has still not completed the discussions, debate and study necessary to implement it. Cuban workers fume as it remains on hold.

In some ways the reform, Resolution 09 of the Ministry of Work and Social Security, seems to deviate from the ideals of the revolution. Equal wages were established as a manifestation of the idea of absolute equality of each citizen, and of raising up the poor and downtrodden. But socialism itself accounts for the reform by underlining the importance of each worker having a direct relation to his product and compensation (remember, it was the assembly line and alienation of the worker from his/her product that so frustrated Marx), and by applauding those who work hard to benefit society as a whole. Che Guevara, an oft-mentioned figure of the Cuban revolution, is quoted as having said:

I am not interested in dry economic socialism. We are fighting against misery, but we are also fighting against alienation… Marx was preoccupied both with economic factors and with their repercussions on the spirit. If communism isn’t interested in this too, it may be a method of distributing goods, but it will never be a revolutionary way of life.

But on the capitalism side of things: performance-based pay really is the way to assure any semblance of efficiency. And in the context of global economic downturn, this is necessary even for socialist Cuba.

 

Author

Melissa Lockhart Fortner

Melissa Lockhart Fortner is Senior External Affairs Officer at the Pacific Council on International Policy in Los Angeles, having served previously as Senior Programs Officer for the Council. From 2007-2009, she held a research position at the University of Southern California (USC) School of International Relations, where she closely followed economic and political developments in Mexico and in Cuba, and analyzed broader Latin American trends. Her research considered the rise and relative successes of Latin American multinationals (multilatinas); economic, social and political changes in Central America since the civil wars in the region; and Wal-Mart’s role in Latin America, among other topics. Melissa is a graduate of Pomona College, and currently resides in Pasadena, California, with her husband, Jeff Fortner.

Follow her on Twitter @LockhartFortner.