from Cuba Facts*
There is only one labor union confederation in Cuba. It is the Cuban Workers Confederation (CTC), organized and controlled by the Cuban government. All workers must be CTC members (even against their will), and they must pay contributions to the CTC.
The CTC, however, is a union in name only. In reality, it is a tool of the government. Here’s why:
“Union” elections are held periodically, but only candidates selected and approved by the Communist Party can run for office. Neither labor collective bargaining nor individual bargaining exists in Cuba. Workers cannot change one employer for another without permission from the government.
The overwhelming majority of enterprises, business, commercial, agricultural and industrial, are property of the Cuban government and the majority of Cubans work for the State. All salaries are arbitrarily set by the State.
Workers are hired, disciplined and dismissed by the government.
Foreign companies operating businesses in Cuba must secure their work force from the Cuban government. They cannot on their own contract nor dismiss workers without the express approval of the government.
Foreign companies pay the Cuban government in strong foreign currency (for example, Canadian dollars, Euros). The government pays the salaries of the Cuban workers in Cuban pesos, which are valued at 1/20 of the foreign currency and the government pockets 90% of every dollar or euro it receives.
The government carefully selects all workers in the tourist industry or in any other industry that come in contact with foreigners. Workers of lighter-color skin, or those who are the most loyal to the revolution, are chosen to work in hotels, tourist complexes and other tourist destinations.
The Cuban regime issues contracts covering the services of doctors, painters, musicians, etc., to foreign governments, and to companies outside of Cuba. Usually, those Cuban workers reside six months in the foreign countries and they are paid in strong currency. However, employers deduct a 40% of their salaries and forward such monies to the totalitarian regime of Fidel and Raul Castro.
All labor arbitration must be effected in capricious and corrupted governmental offices, where the worker receives very little protection. There is not an independent judicial system on the island and all judges are named by the government and work for the government.
*Cuba Facts is a continuous series of brief documents containing data about themes various, including -but not limited to – political structure, health, economy, education, nutrition, labor, companies, foreign investments and demography, which is published and periodically updated by the staff of Project Regarding the Transition in Cuba.