“We older folks also like them to make us look nice. If they provide efficient and professional service, what more can I ask?” states retired economist, Sara Rodríguez. Approaching her 68th birthday, the hospital lift attendant is a regular customer at the Ilusión hair salon located close to her home, on San Lázaro and Marina streets, in Central Havana.
However, in November 2015, the beauty shop she has visited for decades became another of the almost 200 Non Agricultural Cooperatives (CNA) which exist in the capital.
According to Sara, “Since it has been operating under a non-state form of management, above all the look and conditions of the site have improved. They have created a pleasant space, which I recommend to all my friends. The workers now have a personal incentive which makes them do their best, because they know that what they earn depends of what they do.”
Meanwhile, Daniel Valdés states that he visits the Ilusión salon every month to get his hair cut because, “You’ve got to look good wherever you go,” and expresses his satisfaction with the “treatment and accessible prices for head-to-toe services ranging from a hair cut to chiropody treatments.”
Daniel’s hairdresser, Madeleine Morales has over 20 years experience in the sector and notes that at the beginning “the change was a bit startling, although we have gradually adapted to it. Today, I have many regular customers and lots of new ones. They come from all over Havana.”
In this regard, Nerelys Martínez, president of the cooperative, states that the change to officially becoming “a cooperative was long and complicated, but now it’s more modern. It was a necessary change, because nowhere in the world are beauty services subsidized by the state. The most important thing for a collective business to progress and be successful, is a change in the workers’ mentality. We opened six months ago and we’re still here.”
PROS AND CONS
Addressing the pros and cons of taking on a new business model, the former administrator of various service establishments and today President of theCNA Ilusión Salon, Martínez notes that is always difficult to deal with resistance to change while trying to convey an optimistic message. She highlighted the existence of new legislation, noting however, “There are also other things that need to be written. The best thing is that we are no longer obliged to work with the resources they assign to us, but with supplies we are able to get hold of. Now we decide from whom and where we buy.”
According to business accountant Norma Tompson, it’s about working harder and better in order to earn more. “Before, the top earner would make about 500 Cuban pesos (CUP), while today the average is closer to 1,300 or 1,400 CUP. Workers were suddenly motivated, but they sometimes express irritation over the high tax rates, and we hope that this will change,” notes the specialist.
Former public healthcare worker, Isabel Cervantes joined the Ilusión Salon as head of the chiropody division. “Here I have everything. I’ve got disposable materials (scalpels and gloves) and the necessary utensils to treat every patient. I think it’s a service that should be expanded because it contributes to human wellbeing. For example, all diabetes sufferers should see a chiropodist at least once a month,” highlights Isabel.
She notes that low-priced chiropody services – the most expensive treatment costing 20 CUP – has made it one of the most popular offers at the salon, which underwent an initial renovation process funded by employees, after staff received training by the Ministry of Domestic Trade (Mincin) in 2015, in non agricultural cooperative management.
The idea, according to Martínez, was to persuade workers to invest in changing the salon’s image. “The change is noticeable in regards to comfort. Wages rose during the initial months as we didn’t have to pay taxes (during the start-up grace period),” explains the expert.
AN INDEPENDENT ESTABLISHMENT
Offering full facial and body; massage; waxing; manicure; pedicure services; steam treatments and aerobic exercises, not everyone at the Ilusión Salon earns the same, as some services require more than one person. “Every employee starts and finished their work, meeting the client’s needs as best they can,” states Martínez.
Likewise, the president adds, “When tallying up accounts at the end of the month, we pay off any debts, deduct costs and utility payments, we set aside about 30%, and the remaining 70% we divide up among the employees in accordance with their work.”
If the Salon is lacking anything, the Mincin stores are a good place to buy products, as they offer non-agricultural cooperatives a 20% discount, while goods can also be purchased from CUC stores and private businesses.
The Ilusión Salon is scheduled to undergo a second renovation in June and August, in order to create the 21 partners’ dream space. Works will include the construction of an equipment area for targeted exercises, creation of a keratin salon, while other departments will be expanded.
An intelligent strategy according to Martínez has been home and package services. “For example, a cut and color, which costs 50 CUP, includes a wash, color and simple cut and style.”
We arrived at this offer after a market research study which gave us the average price of a cut and color at state and private establishments. “I believe that the cooperative caters to all, from someone who has five pesos to a person with 300. We have had elderly people come to get a hair cut and we haven’t changed them, and sometimes there are those who give what they can. The challenge of satisfying all tastes is rooted in ones abilities, you must be up-to-date with the latest beauty trends, however this CNA’s priority is to look out for the wellbeing of the people,” states the cooperative’s president.
