• Submitted by: admin
• national
• Business and Economy
• 04 / 13 / 2010

---

Workers at small (three-chair) barbershops and beauty shops are being offered a choice by the Cuban government, Reuters reports.

Instead of drawing a monthly wage, they can lease the establishment from the government and run their own business, charging whatever the traffic will bear for their services.

If they don't like that idea, they can seek jobs elsewhere or retire.

The new policy – which still has not been formally announced by the authorities – establishes a monthly payment to the government of 15 percent of the average revenue.

That covers the lease and social security taxes. A typical lease in Guantánamo would cost US$28 per month; in Santiago, $38; in Holguín, $49.

The lessees have to pay for the water, the electricity and the grooming products. One beauty shop technician in Holguín told Reuters that "we'll have to work hard to make a good profit, but I like the idea."

At present, the government controls almost all the retail businesses. Other communist countries, like China and Vietnam, long ago liberalized retail services and small businesses.

Source: The Miami Herald