The red scissors are coming too

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It’s time to trim the Chavernment’s fat

The upcoming paquetazo could be coming in more ways than one.

After the Chavernment’s Finance Minister hinted at the possibility of future tax hikes, the National Assembly is now saying it could take a look at how to reduce the large payroll of our public sector.

Funny that, during the campaign, Chavismo mocked Henrique Capriles’ pledge of not firing public employees.

In the words of The Matrix’s Morpheus: “Fate, it seems, is not without a sense of irony.”

1 COMMENT

  1. On the subject of government compensation, something I have never understood about Venezuela is the cesta ticket. Setting aside the issue of cutbacks and whatnot, just on the basic premise, why not remove the red tape and just pay employees the money equivalent?

    • Part of the overblown and irrational labor laws in Venezuela. This has its origins in factories, where the Labor Ministry established the obligation of employers to provide a meal for workers through some regulations during the Cuarta. This was extended to include all workers in the 80′s. As not every employer could have a cafeteria to provide for the meal, they came up with the idea of giving meal vouchers instead.But if you provide a daily meal through a cafeteria or food service, you don’t have to pay cestatickets. The premise of the cestaticket is that employers must provide a healthy meal or equivalent for workers, but it’s really distorted, because you can use the vouchers in Restaurants and Bars for booze or for greasy fast food.

    • The main reason to pay with CestaTickets and not in cash is that it does not get counted as part of the salary for the benefits: prestaciones sociales, antiguedad, etc.

    • If applied to salary the extra income is subject to vacation, severance or retirement benefits. This a great workaround for the government and private companies too.

    • You should live in Venezuela to understand why cesta ticket exists, it’s a way that companies can offer some salary compensation avoiding paying compensation when work relationships end, it’s kind of rear door exit

  2. Hate to break it to you, but its time to give up on the whole “paquetazo is coming” nonsense. A tax hike, by the way, is the opposite of a paquetazo. #Logicfail

    • ok, I’ll bite… whenever the candidate of the fatherland and his catsack referred to a “paquetazo” during the campaign they meant a set of measures the Capriles government would take starting on Oct 8th that would be detrimental to Venezuelans, such as privatization of public industry resulting in massive layoffs (chabe dixit), a dismantling of the State institutions, lessened controls on economy increasing the cost of life, etc.

      a tax hike seems like a measure that would be detrimental to the average Venezuelan, would it not? layoffs in the public sector? devaluation? reduced government spending on housing, health, etc.? no?

    • Only if the private sector is prepared to absorb a large amount of those layoffs, which doesn’t seem to be the case. Reducing the size of the public sector while improving its productivity is always good, but if the laid off have nowhere to go, then another big problem is created. Heck, it’s what’s happening in Spain.

  3. No doubt. But rather than trying to capitalize on rational-yet-unpopular measures that Chavez might take or announce, the opposition would do well to be constructive and offer a better way to implement the same measures, in that aspect Capriles did well to support the continuation of the missions and promise not to fire anyone. If you think about it, I would say he won the Vice-presidential election hands down, its only too bad that wasn’t what the race was about.

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