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Havana. April 22, 2014

Non-agricultural cooperatives: The experiment becomes reality

Livia Rodríguez Delis
Photos: José M. Correa

Over the last several months, the number of non-agricultural cooperatives in Cuba has grown. This new mode of production is being expanded as a means of injecting more dynamism and efficiency into the national economy.

Nancy Varela Medina, president of the cooperative, commented, “Technically we were in a position to take on a large volume of production. Why not change and be in tune with the Cuban economy?”
Nancy Varela Medina, president of the cooperative, commented,
“Technically we were in a position to take on a large volume of production.
Why not change and be in tune with the Cuban economy?”

There are currently 452 associations of this type operating in the areas of commerce, restaurant services, construction, transportation, food processing and, recently added, energy and accounting.

The first cooperative noted by historians was created in 1884, when 28 English textile workers opened an establishment in Rochdale, to ensure their community access to food. The workers bought large quantities of sugar, flour, salt and butter wholesale, and sold the food to members, at prices lower than those of other retail outlets, via an open membership association characterized by democratic decision-making; no political, racial or religious discrimination; direct sales; distribution of earnings; limited interest on capital; and continuing education.

From this point on, an expansion of the movement became evident, leading to the 1895 formation in Europe of the International Cooperative Alliance (ICA).

Estimates indicate that today at least 750,000 cooperatives exist around the world, with some 800 million members, more than 12% of the planet's population. Data from the ICA show that cooperatives currently offer services to one of every two people internationally and that the 300 most important associations are valued at more than two billion dollars.

Naomi Karla Pez Lemus, a student at Hermanos Armeijeiras Trade School, is considering joining the cooperative after graduation.
Naomi Karla Pez Lemus, a student at Hermanos Armeijeiras Trade School,
is considering joining the cooperative after graduation.

Cuba has had experience with this form of workers' association for more than 50 years, beginning with the emergence in 1960 of Credit and Services Cooperatives, after Agricultural Production Cooperatives, followed in 1993 by the Basic Units of Cooperative Agricultural Production - all in the agricultural sector. This internationally recognized contribution, has allowed the country to lead the Latin American Cooperativism Network, an organization which, along with the Federation of Caribbean and Central American Cooperatives and others, promote this mode of production across the continent.

With the expansion of coopertivism to other areas of the economy, Cuba hopes to extend what has been learned over the years into other sectors.

There is no doubt that the cooperative, as an organizational alternative based on self-management, is to play an important role in the updating of Cuba's economic model. This was made evident in the program approved at the Communist Party of Cuba's 6th Congress, which recognizes and promotes cooperativism, along with the socialist state enterprise, given the need to decentralize state management and achieve greater efficiency.

Cooperatives clearly coincide with the country's commitment to social justice, given their basic principles of open, voluntary membership; democratic control and participation; and commitment to the community; in addition to their autonomy and independence which allow for a work climate of mutual support, responsibility, equality, equity and solidarity.

Confecciones Model: A participative Cuban initiative

Since becoming a cooperative, the work environment has been changing at Confecciones Model, previously a state-run garment factory on San Rafael Street, in Havana. About a year ago, workers at the shop, devoted to the fabrication and sales of reasonably priced clothes - principally the traditional Cuban guayabera - foresaw the possibility of becoming independent, separating themselves economically from the state enterprise with which they had been linked. Nancy Varela Medina, president of the cooperative spoke with Granma International, saying, “Technically we were in a position to take on a large volume of production. Why not change and be in tune with the Cuban economy?"

To begin operating as a cooperative, the group had a skilled workforce, good machinery, an adequate space and central location. "We were the first to present a project and it was really well-liked; it wasn't easy, but we did it. We received approval from the Council of Ministers and did the paperwork with the international legal office, the commercial register, and as of October 1, 2013, we began as a cooperative."

Today there are 41 members, including stylists, tailors, seamstresses, cutters and tracers - enough to handle the large orders for uniforms and guayaberas which the cooperative receives.

How has work life changed?

Nancy Varela reports that the changes are palpable. Previously workers received a fixed salary, plus production bonuses; now salaries are based on sales. "Being president of the Confecciones Model Cooperative," she said, "is very different from being the director of the garment shop." The pay regimen now depends on earnings. Workers are paid in accordance with what is earned from sales during the previous month, taking into account their role, and after fulfilling tax obligations; paying the enterprise for use of the building and equipment; and purchasing materials. “As an example, seamstresses specialized in one job (making guayaberas or custom suits) receive a salary which is different from the others, and are paid according to their skill category. It’s hard to find personnel as well trained in tailoring as those who are here, and we have to protect this."

For 80-year-old tailor Alfredo Valdés, beyond good health, the two most important elements of his life are music and sewing. "Music makes people happy and without clothes, you can't look sharp. This is an art. Tailors are engineers," Alfredo said, while carefully cutting a custom suit jacket.

"There are very few tailors in Cuba. Young people should be trained and shown the beauty of a profession which must be recovered."

Despite some personal dissatisfaction, Alfredo feels his life has improved since becoming a member of the cooperative, saying, "Thus far, we're doing well, but the cloth and thread must arrive without fail."

His concern is well founded. According to Nancy Varela, among the problems the new organization has faced is irregular availability of basic supplies and their cost. “We’ve faced some obstacles with supplies,” she explained, “We sign contracts with the Universal Habana entity to buy cloth and thread. We used to do so via an intermediary. The biggest problem we’ve had is with the price. Considering the volumes we handle, we believe the price should be lower than that offered self-employed individuals.”

Marquidia Pérez, who has worked at Confecciones Model for almost 20 years, identified another concern which could affect production. “Clients leave here very satisfied with the quality of our work, thanks, in large part, to the experience of our tailors. But it is worrisome that they are quite elderly and the next generation is meager. Young people must be better trained and shown the value of this work.”

The new structure, she said, has been beneficial, both economically and personally, “But what is most fundamental,” she emphasized, “is that we are more united and help each other a great deal. That is to say, we work together. We know our survival depends on our collective work, on the responsibility we assume, and the decisions we make, to keep our cooperative healthy.”

 

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