Castro to Pocket 92% of Worker Salaries from Foreign Companies by Frances Martel19 Dec 2014
Just one day before President Obama announced sweeping changes that would allow potential American investment in Cuba, the Cuban government apparently had begun preparing itself by announcing new measures that would allow Cubans who work for foreign companies to keep only 8% of their salaries.
In an official announcement in state newspaper Granma, government officials announced a system in which employees who work for corporations with foreign capital will be paid two Cuban Pesos for every Convertible Cuban Peso (CUC) the corporation actually pays them. The Convertible Peso (CUP) is almost exclusively for the use of tourists and is of significantly greater value; one CUC is the equivalent of an American dollar and the equivalent of 26.5 CUPs. The other 24 CUPs Cuban workers will not receive amount to 92% of their salaries.
Granma explains:
Zitat The payment will now be agreed to with businesses possessing foreign capital taking into consideration the salaries issued to workers in jobs of similar complexity in entities in the same area or sector of our geographic area, the salary scale that is applied in the country (as a reference point) and some additional payments for the corresponding law.
In other words, even if a foreign company has the means to pay more than a Cuban company, the worker will receive the same salary as if he were working for a Cuban company, and the government will pocket the rest.[/quote]
In addition to the 92% of salaries being pocketed by the Cuban government, Cuban government employment offices will charge 20% of the salary of each worker they connect to the corporation for the service of finding said corporation employees. Employees will also lose 9.09% of their salaries for “vacation time.”
The new measures, though enacted hours before the release of USAID worker Alan Gross and President Obama’s announcement of new trade measures, should inspire caution in American companies that would like to do work on the island. American companies would be keeping very little of the money they invest and earn in business on the island, while lining the pockets of the communist government. As Raúl Castro noted in his speech, the Cuban government made no concessions in this recent negotiation with the United States, save the freedom of Gross and one other American agent whom President Obama did not name, which leaves it open to sanctioning American companies who dare attempt to do business on the island as they see fit.
The smell of greed? Wow I thought capitalism was bad. This dictator's plan is to keep everyone poor, well .....almost everyone.
The guy who gets the 92% does pretty well.
*******************
“Show me a young Conservative and I'll show you someone with no heart. Show me an old Liberal and I'll show you someone with no brains.” ¯ Winston S. Churchill
I'm going to sound like a hieratic here and will probably get my "Thumbs Up/Thumbs Down" taken away, but......I don't give a shit about Cuba. Of all the illegal and destructive things Zero has done, this is at the absolute last of the list. The only reason this even makes the list is because he rolled over and didn't get a damn thing in the deal except for an old Marxist prisoner in trade, i.e.; the old hippie arrested for internet crimes.
Truth be told, W should have done this when he was Pres but was too chicken shit to lose the 6 GOP Cuban voters in FL. No one cares about this basket case country, especially when you compare it to the hell holes that Haiti and Jamaica are and they have gotten a free pass for decades.
Well the fallout is mostly related to Zero's lousy negotiating skills. Cuba is sagging and was on the ropes. Obama coming along to make a lousy deal comes across as help for Cuba and a victory for Castro, more than anything constructive for the USA. Just when the home team had a huge advantage Obama gives away the farm. This says more about Obama than anything else. He's an America hating loser with Commie envy.
*******************
“Show me a young Conservative and I'll show you someone with no heart. Show me an old Liberal and I'll show you someone with no brains.” ¯ Winston S. Churchill