1. On the destination of retained earnings after taxes:
a) Make the distribution of profits to workers more flexible, eliminating the limit of up to 5 average salaries without conditioning it on compliance or over compliance with management indicators.
This measure must be applied in the financial year 2020, with distribution in 2021.
b) Specify that the company establishes, in the regulations for the distribution of profits to workers, in agreement with the union, the procedure for determining the amounts to be distributed to its UEB, taking into account the actual participation of each of them in the results of the company.
The distribution must guarantee that the total amount approved by the Governing Board is met at the company level, without exceeding the maximum amount of average salaries, approved in the current financial legislation.
c) Modify the destinations of retained earnings, adjusting the current number of 11 destinations to 10, by grouping those that constitute
increase in working capital and the creation of two new destinations:
c.1) Increase in Working Capital (groups the current destinations for increasing working capital, amortization of loans for investments, amortization of debts and investments approved with own resources).
c.2) Financing of accounting losses from previous years.
c.3) Development and Research.
c.4) Financing of training expenses.
c.5) Compensation fund.
c.6) Distribution of profits to workers.
c.7) Fund to finance the acquisition and construction of houses (new destination).
c.8) Fund to finance collective stimulation to workers and labor groups (new destination).
Define by the Ministry of Finance and Prices and the CTC the concepts and the procedure for their use.
c.9) Other reserves to contribute to OSDE.
c.10) Other reserves.
d) Expand the use of the compensation fund to finance investments and contribution of social capital to create companies.
e) Empower the Governing Board to authorize or not the return of the compensation fund.
2. Empower the highest collegiate body of the entity to approve the payment for distribution of profits to workers who have been sanctioned for indiscipline during the year, with the exception of the measures that are applied when the violation is considered serious in the disciplinary regulations.
3. Make the use of the technical positions established in the qualifiers more flexible, including the design of own positions, except those related to the fulfillment of state functions.
4. Generalize the “payment for high performance” to the entire business system, which is currently a faculty of companies that apply Business Improvement. Modify its current definition, established in articles 409 to 412 of Decree 281/2017, as follows:
a) It is a complement to the moral recognition, exceptionally, of a worker or group. It is not massive.
b) Its approval is determined by the Board of Directors of the company, after hearing the opinion of the union.
c) It is applied by results in the work with incidence in the efficiency of the entity and other relevant events.
d) It can be granted only once or for the period of time to be determined, taking into account the characteristics of the event.
e) The amount to be paid will be in correspondence with the economic-financial possibilities of the company, provided that profits are obtained in an accumulated manner.
f) This payment constitutes salary for all legal purposes and is not included in the calculation basis for payment for results.
g) In the resolution adopted for its approval, the characteristics of the event considered as high performance are based and the amount to be awarded and the period covered by its remuneration is specified.
5. Allow retiring workers to be hired to occupy the same position as the one they held at the time of obtaining their pension, provided that it responds to the interest of the entity.
Empower the President of the Higher Organization for Business Management or the General Director of the Company, as appropriate, to adopt the decision in consultation with the Board of Directors; instead of the Municipal Administration Councils.
6. Modify the calculation of the pension for workers who, once retired with 45 years or more of services, return to work and work at least 5 years or more, after modeling the impact of its application on Social Security spending .
7. Authorize the contracting of certain services to the entity’s workers, different from those they perform according to their work contracts outside of their working hours, adjusting the income to be received according to the value of the service in question, without considering salary for legal purposes. Establish a tax on the income received by the worker. 8. Unify the concepts of secondary, eventual and support activities, in order to make their use more flexible by considering as secondary activities, all those that are not included in the corporate purpose. Its approval is made by the Board of Directors of the Company.
9. Generalize, as a way to finance OSDE expenses, what is established in Decree 281/07, of contributing for each company the amount resulting from applying to net sales the coefficient that results from the ratio of the expenses budget of the OSDE with the sum of the total sales of the integrated companies.
10. Perfect the functions of OSDE, companies and UEB. Integrate and modify the current Decree-Law
252 and Decrees 281, 335 and 336. Define the existence of OSDE subordinate to other OSDE.
11. Decentralize the power of creation, merger and extinction of companies, as well as the approval of corporate objects to the bodies, agencies and OSDE. Its implementation will be carried out gradually under the leadership of the Ministry of Economy and Planning.
Measures to make the operation of UEB more flexible
12. Expand the powers of their bosses to:
a) Directly access credits granted by the banking system or financial institutions, for this:
a1. The bank branches evaluate the project presented.
a2. The company to which it is subordinate acts as guarantor of the requested credit, if necessary, for which it issues a prior authorization.
b) Operate bank accounts of income and expenses (operations), within the limits of the disaggregated plan and budget.
c) Approve the prices and rates of its products or services, in accordance with the regulations, respecting the company’s pricing policy.
d) Approve non-nominal investments, which allow to solve unforeseen events and restore equipment, for which the
The company disaggregates up to fifty percent of the approved Plan up to the UEB level.
e) Approve the secondary activities by the highest collegiate body of that level and form their prices as regulated.
13. Approve that the UEB that are determined prepare financial statements, pay taxes on profits and distribute profits, without having legal personality, establishing as a condition that the company assign part of its assets. Regulate the economic and financial interrelationships between the company and the UEB to apply the measure.
14. Approve the Subsidiary Company as one of the figures to integrate the state business system. Its incorporation is conceived as an intermediate step towards the restructuring and modernization process of the business system.
For current conditions it is proposed with the following characteristics:
a) It is constituted at the proposal of the company and is submitted to the approval of the Ministry of Economy and Planning, through the OSDE, OACE or territorial government to which it is integrated or subordinate.
b) It is subordinated to the company that creates it and this transfers part of its assets to it. It has legal personality.
c) It originates from an existing Base Business Unit or as a result of new businesses or investments, which meet the requirements of executing total or partial productive cycles; or develop activities of a different nature within the same company.
d) Assumes the functions and powers provided for in current legislation for the company and its CEO, respectively.
e) It distributes profits after taxes, with the prior approval of the company that constituted it and creates the reserves established in the current legislation.
f) Provides the return on state investment to the company that created it.
15. Where necessary and advisable, convert UEBs that close production cycles totally or partially into companies; or develop activities of a different nature within the same company, after analysis and substantiation by the President of the OSDE.
The legal rules to allow its implementation are in process.
CUBA. 15 NEW MEASURES TO STRENGTHEN THE SOCIALIST STATE COMPANY.