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Indians help build Cuba hotels as foreign labour ban weakens

Indians help build Cuba hotels as foreign labour ban weakens
By Reuters | Jul 21, 2016, 08.09 PM

Foreign workers on the Caribbean island signal how critical is
now in Cuba and how market forces are transforming its once tightly
controlled .
French construction group Bouygues is employing more than 100 Indian
laborers to work on a it is building in Cuba, breaking a taboo in
the Communist-run country on hiring foreign labor in order to meet
increased tourism demand.

The Cuban government removed a key barrier to hiring foreign workers
with the passage of a 2014 foreign law that authorized
“special regulations” concerning foreign workers under “exceptional
circumstances.”

Cuban government officials did not immediately respond to requests for
comment about the influx of foreign workers, several dozen of whom spoke
to Reuters in Havana. But the Bouygues move, which was also confirmed by
a company spokesman, is the first time a firm has bypassed Cuba’s
state-run labor halls to hire foreign workers en masse.

For a country struggling to prop up export revenue in the face of low
commodity prices, foreign workers on the Caribbean island signal how
critical tourism is now in Cuba and how market forces are transforming
its once tightly controlled economy.

Already popular as a low-cost beach resort for Europeans and Canadians,
Cuba is seeing a surge in American visitors since the United States and
Cuba announced in December of 2014 that they would work to normalize
relations.

Tourism increased 17 percent in 2015 and was up over 11 percent through
June this year, official data shows. It generated $2.8 billion in
revenue last year.
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Meanwhile, the trade deficit in goods widened by $1.5 billion last year.

At least three new hotels are under construction in Havana, the first
new five-star hotels to be built there in a number of years. Another
dozen under negotiation with potential investors, according to the Cuban
tourism industry. One reason Bouygues is turning outside of Cuba for
labor is because Cuban skilled tradesmen are opting to work in the
private sector where they can earn much more than from the state.

‘LITTLE MOTIVATION’ FOR CUBANS

The Indian tradesmen, who are being housed together east of the capital,
are part of a much broader trend of such workers who emigrate to various
work sites – especially in the Middle East – in search of higher wages
than they can get in India. The practice, however, has not been
widespread in Latin America or the Caribbean.

Bouygues has already brought 200 Indian workers into Cuba and plans to
bring more in the coming months, according to diplomats familiar with
the situation and a Havana-based company employee who asked for
anonymity due to restrictions on talking with the media.

“It is true that the group is bringing in Indian workers trained in
various parts of Bouygues … throughout the world,” a Paris-based
spokesman for the company said.

The Indians would be training local tradesmen in Cuba in addition to
working directly on the projects themselves, he said.

The laborers are working on two hotels in Havana and another at the
Varadero tourism resort, the sources said. While Bouygues is co-managing
the projects, foreign firms are required to partner with state-run
construction companies that have strict limits on how much they can pay
Cubans. They can pay foreign workers more, however.

“The Cuban workers are not paid well so there is little motivation,” a
western diplomat familiar with the pay differential said, requesting
anonymity due to diplomatic protocol. “The Indian workers are being paid
around 1,500 Euros a month, more than 10 times what their Cuban
counterparts receive.”

‘WE LIKE SPICY

A few dozen of the skilled tradesmen, wearing orange jump suits, said
they were happy to be in Cuba for at least a year.

The Indian workers were emerging for lunch from the Manzana de Gomez, an
ornate building being converted into a luxury hotel in downtown Havana.

Chopra Inderjeet Singh, a bearded, slim electrician wearing a turban
that is seldom seen in Havana, said there were more than one hundred of
his countrymen working on the project as electricians, carpenters,
plumbers and masons.

He did not mention training locals.

The Indian workers said they were paid according to their skills, but
would not reveal how much.

“To date their biggest complaint has been that they want some Indian
food and a cook is on the way,” the Bouygues source said.

Singh, who arrived two months ago, smiled when told the news.

“Yes, that has been a problem. We like spicy food,” he said.

Source: Indians help build Cuba hotels as foreign labour ban weakens –
The Economic Times –
economictimes.indiatimes.com/news/international/business/indians-help-build-cuba-hotels-as-foreign-labour-ban-weakens/articleshow/53323725.cms

4 Responses to Indians help build Cuba hotels as foreign labour ban weakens

  • This story is frankly amazing… that Cuba is unable to supply workers from its own population to undertake these tasks. The comparison made with the use of Indian/Pakistani labour in the Middle East is a poor one; in these countries there is no pool of local unemployed/underemployed labour to fulfil these tasks, as there is in Cuba. The conclusion seems to be that Cubans are not prepared to undertake this work….. hence Indians are brought in. I wonder if this will be featured in the Cuban media?

    • William, as always you are missing the point. Why does a foreign company resorts to Indian workers?
      Possible answers:
      – cost: the high cost the Cuban regime charges for workers while paying them a pittance after expropriating 90-95% of their wages
      – lack of motivation of Cuban workers (see salary issue)
      – too much shoddy work and theft of building materials by exasperated Cuban workers “topping up” their salaries
      – skills issues
      If Cubans would be paid the salaries and benefits the Indians get they would be lining up for 10 miles to get a job on the site.
      That is the only conclusion. Just image the cost of transporting and housing them. Engineers would be lining up as plasterers.

      • Nice to agree with you 100% on this one. If Cubans were offered the pay that the Indian labourers are receiving to build this hotel, there would be no shortage of applicants. The responsibility for this extraordinary situation rests firmly with Cuba, which has the power to improve the situation in short order.

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