Cuba allows state firms to implement performance-based pay

Cuba allows state firms to implement performance-based pay
Havana, Apr 5 (IANS/EFE)

Cuban state-owned firms may use up to 50 percent of post-tax profits for
R&D and employee incentives, Communist Party daily Granma said,
reporting on a recent meeting of the Council of Ministers.

"Companies, once they've fulfilled their commitments to the state and
the established requirements, may use after-tax profits to create funds
for development, investment and motivating workers," Finance Minister
Lina Pedraza said.

Retained profits, therefore, "may be used to increase working capital
(and funds) for investment, development, research and training, as well
as to pay workers based on their performance", the daily said Thursday.

Pedraza said the decision stems from a clause in the economic-adjustment
plan approved in April 2011 at the 6th Communist Party Congress.

President Raul Castro presided over Tuesday's Council of Ministers
meeting, which was centered on the island's economic policy and the 2014
budget.

Castro called for "considering and reconsidering" and "periodically
reviewing" the government's measures to correct possible errors, and
urged his administration not to be deterred by the "obstacles that may
emerge" as Cuba works to "modernize" its socialist economic model.

The Council of Ministers also analyzed a first group of 126 non-farm
private cooperatives presented for its approval.

A law enacted in December extended this type of organizational model to
sectors other than agriculture.

http://www.daijiworld.com/news/news_disp.asp?n_id=169491