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Hair Salons and Barber Shops Going Coop (Updated)

By Ariana Hernandez-Reguant, By Grete Viddal, News and Views, Tales from the field Add comments

Vedado (Havana) state-owned hair salon. ©AHR

According to recent news, selected hair salons and barber shops in Havana are undergoing an experiment in management and administration. Unlike in the 1990s, these are not self-employed professionals who are allowed to run small businesses out of their home. These are tiny state shops (sitting three max) that are being turned to their employees who then run them autonomously. They must pay a rent (in hard currency) to the state as well as taxes, and obtain their supplies on their own, presumably at free market prices. They can then set prices according to supply and demand. Apparently, participation in this pilot program has been voluntary, and workers who did not want to be autonomous have been able to switch jobs with those who did at other salons. You can read a detailed account in this report of the Spanish news agency EFE.

Up until now (and still in most of the island) the choices were a state-run hair salon or a self-employed hair dresser. The state salon had fixed prices in Cuban pesos, while the independent professional was free to set prices and has to pay income taxes. In practical terms, however, the state shops lacked supplies, which the employees then obtained on their own and charged customers for under the table. While state hair salons and barber shops were technically inexpensive, the were really not, as one had to purchase products and services directly from the employees at bargained prices. My hunch is that this new system is designed to address (and tax) a de facto situation.

In Havana, this pilot project only affects a handful of Salons in two neighborhoods, none of which can handle more than three clients at a time. On the other extreme of the island, in Santiago de Cuba, it is doubtful that many peluqueros will sign up for this experiment, should it be an option there some time soon. According to Grete Viddal’s own hair stylist and salon owner Raúl, the cost of “cooperativizing” is prohibitive anywhere but in Havana. In response to Grete’s inquiry, Raul said that if the potential independent contractors of a salon will have to pay about 1000 MN per chair, this is a lot of money in Santiago – even if this covers the costs of doing business, the chair, electricity, etc. Raul says hairdressers wouldn’t be able to charge enough for their haircuts to cover expenses. Grete’s assessment is that “many services (they do manicures, pedicures, waxing, all manner of hair coloring and straightening, and more) at Quisqueya, the big salon in Calle Enramadas, the main shopping street of Santiago, cost a peso, two, three. Many haircuts (cost of haircuts depends on length of your hair) less than 5 pesos MN. If you have to pay 1000 MN a month, that’s a LOT of haircuts before you begin to make a profit!”

Below, see a picture of the entrepreneurial Raúl – a self-employed hair dresser- working on his most simpática client a few weeks ago.

© Grete Viddal

Thanks to A. Armengol for the news’ heads up.

2 Responses to “Hair Salons and Barber Shops Going Coop (Updated)”

  1. Tweets that mention Ethno Cuba » Blog Archive » Hair Salons and Barber Shops Going Coop -- Topsy.com Says:

    […] This post was mentioned on Twitter by Jim Brotherton. Jim Brotherton said: Ethno Cuba » Blog Archive » Hair Salons and Barber Shops Going Coop http://bit.ly/bUkLh5 […]

  2. St pete hair Says:

    The guy in the photo is so hot, I would let him cut my hair

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