By Marc Frank,
HAVANA (Reuters) - Communist Cuba is revamping the state wage system
to create more incentive by allowing workers to earn as much as they
can, local media said on Thursday, in the latest sign new President
Raul Castro wants to improve the country's economic performance.
Under Labor and Social Security resolution nine, and for the first
time in decades, there is no limit on a state employee's earnings,
state-television re****ted.
"For the first time it is clearly and precisely stated that a salary
does not have a limit, that the roof of a salary depends on
productivity," economic commentator Ariel Terrero said.
The Cuban state controls about 90 percent of the country's economic
activity and employs the vast majority of the labor force, often
setting wages from central offices in Havana.
Cuba has always prided itself on its limited range of salaries, while
at the same time some jobs do have perks and in the past bonuses were
available for some workers.
However, the egalitarian approach has come under fire in recent years
for holding back production.
"One reason for low productivity is there is little wage incentive and
this breaks productivity and stops bigger salaries," Terrero said.
He said the resolution, signed in February but yet to be published in
the official Gazette, is aimed at breaking the cycle.
Terrero said it corresponded with the socialist slogan, "to each
according to his work, from each according to his ability."
Raul Castro, upon taking over from his ailing brother Fidel Castro in
February as Cuba's first new leader in almost half a century, promised
to make wages better reflect one's work, a major complaint of the
population.
"It is our strategic objective today to advance in an articulate,
sound and well-thought-out manner until the wages recover their role
and everyone's living standard corresponds directly with their legally
earned incomes," he said.
Raul Castro has also launched a major reform of the agricultural
sector to create conditions for state and private farmers to legally
earn as much as they can from their efforts after meeting state
quotas.
In addition, since taking office, Raul Castro has lifted bans on the
sale of computers, DVD players, other consumer goods, cellphones and
on Cubans staying at tourist hotels, though prices remain out of reach
for most Cubans.
"It is an old problem. There is no reason to fear someone earning lots
of money if it really is due to their work," Adalberto Torres, a
Havana retiree, said.
"It is the same with farmers. Give them land, let them work, it is not
im****tant how much they make. It is good because it means they are
producing," he said.
(Editing by Michael Christie and Bill Trott)


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