Cubans wary of risks in state layoffs, private work

HAVANA, (Reuters) – After 20 years of making his  living unlawfully by dressing up like a Cuban revolutionary and  posing for tips for tourist photos in Old Havana, 64-year-old  Omar is now hoping he can make a legal career of it.

He wants to get one of 250,000 licenses for small  businesses the Cuban government plans to start issuing this  month so he can work without fear of official reprisals.

The move is part of a bold reform by Cuban President Raul  Castro in which the government will slash 500,000 state jobs in  the next six months and triple the size of the communist-led  island’s private sector in pursuit of financial stability.

But like many Cubans confronting the changes, Omar does not  know where to apply or what the regulations will be.
“I hope I can get legalized but that is not very clear,”  said the bearded amateur street actor, who wears a beret like  guerrilla legend Ernesto “Che” Guevara” and pretends to smoke a  big, papier mache cigar. His illicit income up to now, all tips, has been tax free,  although not without a price.

“It hasn’t been easy. I have a legal action against me for  harassing tourists,” said Omar, who did not give his full name.
The possibility of losing state jobs guaranteed in Cuba’s  socialist system is a shock for many Cubans and there is much  uncertainty about going into business for themselves.

Many questions have not been answered by the government,  which has not disclosed key details on how much the new  businesses will be taxed or how tightly regulated.

“We don’t have any idea when or how (the process) is going  to begin,” a Ministry of Labor and Social Security official  told Reuters.
Employees at the Economy Ministry and the National Office  of Tax Administration said the same thing.

If they are forthcoming, the self-employment licenses will  bring tranquillity to Omar and thousands who currently work  illegally. It will allow laid-off public employees to try out  178 activities ranging from small restaurants to card reading.

“MORE CONCERN
THAN EXCITEMENT”
Amid the uncertainty, there will be the chance to make more  money and im-prove livelihoods, which many Cubans yearn for.
“The philosophy in Cuba has been that it’s bad to get rich  and that is something we need to get rid of,” said Ernesto, a  Havana restaurant worker.

A Communist Party document leaked to the press last month  indicated job cuts in the public sector would start this week.
The coming changes have dominated local conversation as  Cubans ponder whether opportunity is preferable to security.