A total of 71 new non-agricultural cooperatives began operating in Cuba this October 1st, after three months of implementation of the first group, on an experimental basis of the new management model.
The first group of 124 cooperatives related to activities such as transportation, construction, collection of raw materials and agricultural markets, which began on July 1st this year, has taken its first steps with successes and some setbacks.
The management autonomy, equality of rights between the partners and the collective earnings growth, are already incentives for the cooperative members. Meanwhile, issues such as the lack of a direct and agile mechanism for import and a wholesale market where inputs can be bought are hampering the proper functioning of these forms of economic organization.
Cuban population put their hopes since the beginning on the development of these initiatives, but they already have some dissatisfaction due to the price increase in some establishments that adopted this form of collective management. The complaints in this regard are focused primarily on the products sold by agricultural markets, among which are fruits, viands, vegetables and pork.
Decree-Law 305 of non-agricultural cooperatives states in its Article 25 that “the prices and tariffs of products and services marketed by the cooperatives are determined by them, according to supply and demand” and as diversity of offerings is still scarce, consumers are forced to buy the food in these places, despite the rise in prices. However, there are other causes of this phenomenon, such as the high price at which farmers sell their products (due to in turn the price of the inputs they need to produce), the still poor agricultural production in our countryside and speculation to which some merchandise are being subjected by the very scarce.
In such a situation, skeptics abound. Will the new cooperatives also increase their prices? In search of answers, a few days ago OnCuba visited two cooperatives that started operations on October 1st, whose members understand the need to alter as little as possible their rates to maintain customers.
Reina Ramos, member of the cooperative Lavatín OK –formerly Autoservicio OK- belonging to the Provincial Business of Technical and Personal Services of Havana, situated on 23rd Street , between 2nd and 4th, at El Vedado neighborhood, says that the public is already accustomed to their prices and it would a mistake to change everything now.
Tanya Burgois, also a cooperativist, explains that the laundry is remains at 6.00 Cuban pesos (CUP) up to 7 Kg and drying at 8.00 CUP up to 14 kg, as the previous prices . “We have only changed slightly some rates at ironing, because there are some items that require more effort. Our establishment has always been profitable in that way and we think there is no need to raise prices; that would be detrimental to our success as a cooperative. All products we use can be purchased in the country and, so far, with the same suppliers. In the case of work equipment (washers, dryers, irons, etc.), we will create a monetary reserve to maintain , repair or replace them when necessary. “
“None of the 12 members of the cooperative is thinking in increasing the prices, but to provide more options. For example, now we’ll start offering the chlorine wash service and in the future our clients could choose if they want their clothes to be washed with softener “Reina Ramos, who confessed having high expectations with the onset of the cooperative, noted.
Also at the Bella II Institute for Health and Beauty – located at Calzada Street, between Paseo and A in El Vedado, stylists, masseurs and facial technicians became partners of the cooperative with the same name and crave for the success of the newly formed organization. Therefore, in the days before October 1st, they repaired and cleaned the property that was leased to the aforementioned entity, to which they also belonged.
Esperanza Suarez and Carmen Santiesteban, for example, assumed the ceiling arrangement of the Facial Department where they work with their own resources. “We wanted to create comfort, besides, no one will be in danger of a piece of the roof to fall over him.”
Regarding prices, Esperanza clarified that services as requested by the population as facial cleansing maintain the same rate: 30.00 CUP, “because it requires more effort than resources, but depilation did increase from 2.00 to 10.00 CUP such as in the case of the eyebrows, because wax is an expensive product.”
Aerobics service, enjoyed by hundreds of people daily, changed its price from 3.50 to 4.00 CUP for each session. “We do not have the need to further increase the rate as it is an activity that is performed with minimal expenses. We just i ncrease it a little, because now we assume expenses such as lease payments, transport, electricity, water, gas, telephone … which were previously borne by the Company “, Adriana Cervantes, who now chairs the cooperative of 30 members, stated.
The cooperativists of Bella II also host some dreams like start offering hydro-massage and bikini waxing in a premise with the right conditions for it. “These are services we wanted to provide a long time ago but the company could not make the necessary investments. As from now we can manage our profits, we’ll have this as a priority, “Cervantes said.
With these prices and aspirations the two new cooperatives began operating. As for the rates, although the partners have the intention of keeping them and even decreasing them those causing loss of customers, it is too early to venture predicting the retention of current amounts . Further on, long-term projections can be made taking into account the future development of these organizations, the emergence of homologous initiatives that broaden the range of options, the behavior of mechanisms for obtaining wholesale supplies and the ability they have to cover costs with their income.
Author
Ana Lidia García
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