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Redistribution of the Salary Fund: Partial Solution, More Income

Photo: Vladimir Molina

Base-level union organizations will play a decisive role in the redistribution of unexecuted salary funds from budgeted units, as an incentive to stabilize the workforce, according to Agreement 10199 issued by the Council of Ministers of the Republic of Cuba, published in the Official Gazette Extraordinary No. 45 on August 11.

This provision establishes the union’s participation at several key stages, explained José Antonio Pérez Pérez, member of the Organizing Committee of the 22nd Congress of the CTC, during a press conference where details were shared about the steps to implement the measure.

The union organization must be involved in drafting the internal regulations that will adapt the Agreement to each budgeted unit; review its content in the general assembly of affiliates and workers; and incorporate it into the Collective Labor Agreement.

When the time comes to approve the additional payment—according to the frequency established by the budget holders—the amount to be redistributed and the sum to be granted to each worker must be approved by the management council of the budgeted unit, in agreement with the union organization. This decision must also be communicated to the general assembly of affiliates and workers.

Maritza Cruz García, First Deputy Minister of Finance and Prices, noted that this Agreement from the Council of Ministers is a partial measure that does not solve all the sector’s problems, but should help retain and stabilize its workforce.

The redistribution of unused salary funds in budgeted units, clarified Ariel Fonseca Quesada, Deputy Minister of Labor and Social Security, is considered salary for legal purposes.

Officials emphasized that this payment will apply to workers in all occupational categories within the budgeted sector, including budgeted units with special treatment. Exceptions include the organs and agencies of the Central State Administration and national entities that already have approved differentiated salary increase treatments, as well as healthcare and educational institutions whose professionals and teaching staff already receive benefits for maximum effort and educational workload, previously applied.

However, for these two sectors, Agreement 10199 specifies that workers who only received the benefit of the monthly additional payment for years of service are entitled to payment from the redistribution of salary funds.

Budget holders must ensure that the non-execution of personnel expenses, both in the central body and in its budgeted units, is objective, to guarantee that the redistribution aligns with the salary expense plan.

The source for redistributing salary funds will be the presence of workers on subsidies, maternity benefits, unpaid leave, or other situations where salary is not paid, plus unfilled staffing positions.

These payments may be granted as a one-time disbursement or for a determined period, depending on the work or results being incentivized, and will not be permanent or widespread.

To grant payment to each worker, it is also necessary to assess high-performance criteria, differences that allow greater recognition of highly qualified personnel, the holding of positions with greater responsibility, the competency-based management approach, and the individual distribution mechanism.

“This is not a linear or homogeneous redistribution—it is for those who have a labor overload due to unfilled positions,” authorities clarified, while warning that entity heads remain responsible for adequately filling staffing positions to ensure the fulfillment of their functions.

From the date of the Agreement’s publication, the entities involved have a minimum of 30 days to create the conditions necessary to begin implementation, so the first workers to benefit could receive these payments with their September salary in October.

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