Cuba Business

Santiago de Cuba farm increases efficiency by paying workers more

Posted September 25, 2007 by publisher in Cuba Business.

Hmmm. This is a novel idea. Pay workers a decent rate and they are more productive. Maybe this is one small glimmer of hope that Raul Castro’s call for increasing pay to farmers and more efficient government. Is this little story the start of something big?

Prensa Latina

Efficiency and Fair Salary bring Success to Cuban Farm

The state farm of Laguna Blanca in Santiago de Cuba solved a long-dating problem of inefficiency with better organization and fair salaries for its workers, says Trabajadores weekly on Monday.

Created 25 years ago to supply 100 million pounds of vegetables and root crops to the city of Santiago de Cuba in one year, the Laguna Blanca farm barely produced 40 percent of the planned figure, after investing 11 million pesos in its 11,606 acres.

Farm director Daniel Ferran said despite the resources invested and the almost two thousand season hired hands, production always fell short.

More recently, the farm management changed its strategy. Without so many resources, it hired 1,300 workers from surrounding areas, takes care of the existing 700 houses in its territory, builds no less than 30 new houses every year and repairs dozens of others.

As for planting, it diversifies crops and uses oxen to plow most of the land. In 2004, already the harvest reached 80 million pounds and increased to 91.6 million in 2006.

This year, says Ferran, the farm expects to reach the 100 million-pound goal. All the workers receive part of their salaries in advance and many earn over 2,000 pesos a month in the harvest season. Those who work hard know they can earn 10 times the director´s salary.


Now note that last line “Those who work hard know they can earn 10 times the director´s salary.” WOW. That is not something you hear coming out of Cuba, especially from the commie rag Prensa Latina.

Member Comments

On September 27, 2007, Cuban Dan wrote:

Wow, you mean they are operating a similar system to capitalism?  Man… who would have thought that the answer to there economic woes would be paying higher salaries to create worker incentive?  its sad that people still think communism can work

the sad part is that even making 2000 pesos is still only equivalent to about $50-$60 a month.  Now imagine if the cubans had incentive to make $60 in 2 hours…. how much more productive that country would be.

On September 27, 2007, manfredz wrote:

workers making more than directors unAmerican .......