500,000 lose jobs as Cuba begins lay-offs

Raul Castro: government would move to reduce superfluous expenses   By Larry Moonze in Havana, Cuba

CUBAN trade union leader Salvador Valdes Mesa has said the first lay-offs involving 500,000 public workers has begun.

Valdes Mesa told the Cuban workers daily Trabajadores that the first jobs in the Cuban government's retrenchment programme involving half-a-million state workers from the government payroll had begun.





Valdes Mesa, the Cuban Workers Confederation president, said the initial job losses would affect those in the sugar, agriculture, tourism, health and construction sectors.

He said the first phase of the lay-offs to end in March would affect 10 per cent of public service employees.

Valdes Mesa said the job cuts were part of an economic overhaul aimed at cutting down on government expenditure.

In closing the Cuban National Assembly on December 18, 2010 Cuban President Raul Castro said in 2011, his government would move to reduce superfluous expenses.

He said the government was moving away from the precept of absolute control of the country's economic activity by the state.

"The steps we have been taking and shall take in broadening and relaxing self-employment are the result of profound meditations and analysis and we can assure you this time there will be no going back," President Castro said.

"The year 2011 is the first of five included in the midterm projection of our economy. During this period, we shall be gradually and progressively introducing some new structures and concepts in the Cuban economic model."

He said this year the government would decisively move on to reduce superfluous expenses, thus promoting the saving of all types of resources which as "we have said on several occasions is the quickest and safest source of income at our disposal."

"Likewise, we shall not overlook in the least the social programmes in the areas of health, education, culture and sports," said President Castro.

"We would rather raise their quality since we have identified enormous reserves of efficiency through a more rational use of the existing infrastructure.

We shall also be increasing exports of goods and services, while continuing to concentrate investments in those areas showing the quickest return on those.

Regarding the economic plan and the budget, we have insisted that the old story of non-compliances and overdrafts must come to an end.

The plan and the budget are sacred. And I repeat, from now on, the plan and the budget will be sacred; they were drafted to be complied with, not to make us feel content with justifications of any sort or even with imprecisions and lies, whether deliberate or not, when the goals previously set are not met."

Following the lay-offs, the government has allowed Cubans to engage in self-employment.

As a result the country has also revised the tax policy and pension policy to administer those who will be involved in the private sector.