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06/12/2008: "Cuba to abandon wage caps"

Cuba is to abandon egalitarian salaries after decades of government control in a bid to improve the nation's productivity, a senior government official has revealed.

It is thought that an end to the capped wages set up by Fidel Castro in 1959 could spark the beginnings of a new middle class in Cuba.

In an interview published in Granma, the Communist party's daily newspaper the minister for labour and social security, Carlos Mateu, said the current system gave employees little incentive to excel because everyone earned the same regardless of how much work they put in.

Many government-run companies had already stopped caps on salaries and the rest must do so by August, Mateu said.

[ This move makes sense, so long as efforts are made not to allow ridiculously high earnings by some individuals causing dischord within society. ]

http://www.guardian.co.uk/world/2008/jun/12/cuba