Change comes in a taxi

HAVANA — What until two weeks ago was an experiment between Havana and Varadero, from this month on will turn into a nationwide practice, now that the ministries of Transportation and Labor and Social Security have published the legal rules “to gradually generalize a new model of economic management among the [cars] that belong to companies that provide taxi services in convertible pesos.”

From omnipresent administrator in charge of tire repairs and car washes, the Cubataxi Group will become a conglomerate of car rental agencies and transportation providers for clients who require it through the phone or in person.

In addition, a large number of Cubataxi’s paid employees will become self-employed workers or will take up other jobs, because the conversion brings with it a notable “payroll reduction.”

The men who until now were state-hired drivers may now lease the cars to which they were assigned. In the opinion of several managers consulted, that would be a “liberating” change for the state because the drivers will develop an increased feeling of control over, and responsibility for, their cars.

“Today we must guarantee tires, spare parts and fuel to a car as soon as the driver tells us he needs them, because if we don’t he will stop working. But often, the items he asks us to replace — while still under warranty — are useless because the driver changed them or sold them. From now on, the driver will have to pay for them and therefore will take better care of them,” said a manager who asked for anonymity.

As reported by the ministries, the months of tryout in Havana and Varadero produced a remarkable increase in fare collections. The reason is that the drivers now must pay daily fees for driving around in their taxis. If they don’t meet the fare-collection targets, they could lose the right to lease the taxi.

Another novelty is that the state-run agencies may sign contracts with taxi drivers who own their cars and hire them as carriers, furnishing them with tires and parts either at cost or with a 10-percent markup. The agencies will sell them fuel at a rate of exchange of 9 CUP for 1 CUC — whereas the rate of exchange for ordinary citizens is 25 CUP for 1 CUC.

The “liberation” of the state from expenses it shouldn’t make, is also expressed in the different relationship with employees who usually work in public repair shops (tire repairmen, mechanics, body workers). These men create more losses than revenue because the number of cars being repaired does not keep them fully employed, so the men use the shop’s resources to bring in their own clients and pocket the money.

Now, those workers are given the chance to lease the repair shops, where they may service the taxis of their former employers and any other cars.

Those who remain on the state payroll will notice substantial changes in their income, especially the supervisors, who until now have not been paid in accordance with their responsibilities.

Agency supervisors — who are paid much less than any taxi driver — will now receive a minimum of 705 pesos and an additional monthly payment of up to 3,500 pesos if they can fully meet the revenue targets, account for every peso spent, and maintain 70 percent to 90 percent of the taxis ready for service.

The other technicians and specialists in each agency will also receive additional income, although they may not exceed the income of 10 or 12 taxi drivers, as a minimum.

Reaction among the drivers themselves varies. Although it appears that most will adapt to the change without difficulty, there’s always one who sounds critical. “There’s little money on the street. People don’t take taxis and, besides, tourism has dropped. What if we can’t meet the fare collection target?” said a taxi driver in Havana, stationed at an informal parking lot outside the Yara Cinema, at 23rd and L.

Beyond some negativity, the new state of affairs seems sustainable because none of the drivers we consulted said he would quit his job, a sign that they hope to maintain a level of income that is much higher than those in other trades — including professionals.

Those who favor creating new ways to organize the economy also favor the changes created in the taxi industry. It is one of the first materializations of the so-called “search for efficiency in the socialist enterprise” and points to ever more beneficial relationships between individuals and the state.