A state-run enterprise linked to Cuba's sugar industry has shut down after failing to pay salaries for four months, abruptly leaving its entire workforce unemployed.
Among those affected is the father of Diana Cecilia Martínez, a 32-year-old engineer employed at a Hydraulic Projects company in Ciego de Ávila. Diana shared her story in an interview with CiberCuba, highlighting the dire situation.
"My dad's company sent everyone home. They literally said: the project is shut down. It's the sugar projects company under the Ministry of Sugar. They said it's over," Diana recounted.
Her father, now 64, was not given any advance notice before losing his job. Once the company closed, he had to return only to hand over the equipment and tools he had been using. "In fact, my dad had to go there to return the equipment, puzzles, and all that," Diana explained.
This incident is part of the broader collapse of Cuba's sugar sector, which reached a historic low in 2025, producing less than 150,000 metric tons, the lowest level since the 19th century. In Ciego de Ávila, the 2024-2025 harvest barely met 50.1% of the planned target.
Fears for the Future
Diana fears her own company might face a similar fate. "Am I afraid? Of course, I am," she admitted. "I'm only 32 years old. But the thing is, fear or no fear, if it's going to happen, it's going to happen."
She works on basic engineering projects like aqueducts, sewage systems, and drainage. Although she describes her company as one of the few still standing, the lack of fuel means employees can only work two days a week since they can't travel to inspect sites.
Her monthly salary is 5,200 Cuban pesos, a stark contrast to the price of a simple carton of eggs in the province: 3,600 pesos. "You go to one of my small businesses, and you have to buy a carton of eggs for 3,600. What's left for anything else?" she questioned.
Uncertain Hope in Economic Reforms
Diana also revealed that the company subtly suggests workers voluntarily resign since they cannot raise salaries. "Between the lines, that's what's implied," she confirmed.
Despite everything, she remains cautiously optimistic about the economic reforms announced by Díaz-Canel on June 12, which aim to grant more autonomy to state enterprises in setting their own salary systems. "There's now a law pushed by Díaz-Canel, supposedly allowing each region or state institution to manage its own payments. Something that should have been done a long time ago," she noted.
However, Diana acknowledges the limitations of this reform amidst power outages and fuel shortages: without production, performance indicators can't be met, and salaries can't increase. The crisis in Cuba's state sector saw a loss of 144,861 workers in the first half of 2025 compared to the previous year, a 7.8% contraction.
"I love my career and feel good about my work team. But when you consider that I'm a single woman without children, there are those with families who depend on them. They'll have it even tougher," Diana concluded, adding a human face to a crisis affecting thousands of Cuban families.
Understanding Cuba's Economic Challenges
What led to the closure of the Cuban state-run sugar company?
The closure was due to the company's inability to pay salaries for four months, reflecting broader structural issues in Cuba's sugar industry.
How has the sugar industry crisis affected Cuba's economy?
The sugar industry's decline has contributed to a significant economic downturn, with production hitting historic lows, impacting employment and overall economic stability.
What are the implications of the new economic reforms in Cuba?
The reforms aim to give more financial autonomy to state enterprises, allowing them to manage their own salary systems, but face challenges due to ongoing resource shortages.