Despite Cuba's regime selling 200 million cigars last year and reporting a revenue of $38 million, the workers continue to receive meager wages that do not exceed $30 a month at the current exchange rate. This situation exemplifies the Marxist concept of surplus value: the additional value created by workers in production that is not reflected in their wages.
A recent AFP report on the Internacional Cubana de Tabacos (ICT) cigarette factory in Havana presented these figures, although the news agency painted a somewhat rosy picture of the island's production system, leaving out critical aspects of labor conditions and the true nature of the prevailing economic model. The article highlights the boom in cigarette exports—which surged from 25 million in 2001 to 200 million in 2024—and features a young worker, Risel Bárbara Fuente, expressing affection for the machine she operates.
At 24 years old, she reportedly earns 11,200 pesos a month, which AFP translates to "about $93." However, this figure is misleading as it relies on the official exchange rate (120 CUP per USD), a rate that's hard to obtain and far removed from the street reality, where the dollar is closer to 370 pesos. In the informal market, her salary equates to $30 or less.
The article claims that workers receive subsidized food and hygiene products "valued at three times their salary," while most Cubans argue that the basic supply basket has been virtually dismantled for years. In a scenario where the State acts as employer, regulator, and beneficiary, the anti-capitalist rhetoric loses credibility.
Workers in these factories, whose 64 machines churn out 800,000 cigarettes daily, often make extra money through clandestine workshops processing tobacco for tourists. The report notes that the ICT factory operates seven days a week, with 400 employees producing 800,000 cigarettes a day, primarily destined for Europe and Asia.
"Today we have a problem, which is a good problem. Our warehouses, our stock of finished products, are at zero. Everything we produce, we sell," stated ICT president Ricardo Soler. Although the article does not mention recent tobacco production issues, it asserts that Cuban cigar sales also remained strong, reaching $827 million last year—a 16% increase from 2023, driven by Asian luxury product demand.
Understanding Cuba's Tobacco Industry and Worker Wages
Why do Cuban tobacco workers earn so little despite high revenues?
Cuban tobacco workers earn low wages due to the centralized economic policies of the Cuban government, which controls the industry and retains most of the profits, leaving workers with minimal compensation.
How is worker compensation calculated in Cuba's tobacco industry?
Worker compensation is calculated using the official exchange rate, which is not reflective of the real value on the street, resulting in wages that are significantly lower when converted to USD in the informal market.
What challenges do Cuban tobacco workers face?
Cuban tobacco workers face challenges such as low wages, limited access to necessary goods and services, and the disparity between official economic reports and their real-life financial situations.