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A co-operative is simply self-exploitation |
People are suffering and hungry for a solution. People are becoming
increasingly atomised, alienated, and anxious. With the financialisation of
capital and globalisation it seems that power is concentrating in the hands of
a few – a class – the elite capitalist class. The situation that we are in is
getting worse politically, socially, and economically, and a Left that is so
divided we can't get organized to oppose the powers that be. Today the Left
faces the same problem that it has faced since the 1800s, which is being
comprised of so many factions that there is no popular and radical force to
challenge the current power structure.
Gallup in 2013 showed that 70% of workers "emotionally
disconnected" and approximately 20% are "actively disengaged"
meaning that they are acting out their unhappiness and, effectively, sabotaging
their workplaces. Productivity and profitability are higher for cooperatives
than for capitalist firms. It makes little difference whether the Mondragon
group is compared with the largest 500 companies, or with small- or
medium-scale industries; in both comparisons the Mondragon group is more
productive and profitable. The major basis for co-operative success, and the
survival of capitalistically unprofitable plants, has been superior labor
productivity, higher physical volume of output per hour, higher quality of
product and also economy of material use. The point is that the survival of
firms is determined neither by productivity nor the volume of profit, but by
the rate of profit. Firms whose rate of profit is too low are ejected from the
market. But those that maintain a high rate of profit compared to their
competition survive, even if they are grossly inefficient or if their profits
are not exactly impressive. Co-operatives have an abysmally low rate of profit
almost by default, because the owners of the co-operative are also its
labourers. So they receive remuneration that is much higher than the necessary
cost of reproduction of labour-power.
And that is why, while co-operatives are re-discovered as an
exciting new thing in bourgeois liberal circles every decade or so (seriously,
they're about as new and radical as municipalisation, which I swear I saw some
lost soul advocating on RevLeft a couple of weeks ago), and a lot of them are
formed, very few survive until the next cycle (and those that do tend to be
held together more by political will than market forces).
A key problem of worker cooperatives is that they exist
within the context of capitalism, ie the pressures of the market competition,
and context of wage labour. Proponents leave unaddressed the classic criticisms
of worker cooperatives, which aren’t just theoretical but based on real
problems that cooperatives have encountered in practice. For sure, co-ops are a
positive creation when workers occupy the workplace after abandonment by the
owners that has happened in various situations and different countries in
history.
But co-ops can’t “out-compete” capitalism. Corporations will
always have larger capital to invest in research, technology, machinery and
their willingness to cut costs through lower wages, less environmentally sounds
practices, outsourcing, etc, will give them an advantage. Second, is that
cooperatives are subject to market pressures to compete just the same as
capitalist enterprises and this lends itself to pressures to create the same
practices of corporations. For instances, in the Mondragon cooperatives there
have been strikes in the past, outsourcing and low wages in production sites
opened developing countries, as well as a trend towards unelected management
that is more like a typical capitalist corporation. It is self-managed
capitalism, because it offers no solution for changing the underlying logic of
capitalism, which is production for maximum profit. There would be restrictions
on the lengths to which a self-directed enterprise would go as opposed to a
traditional capitalist company, but those restrictions would likely not hold up
when they threaten the survival of the enterprise.
Co-ops do not eliminate owners. What happens is that ownership
changed hands. And whereas previously a company might have had a few influential
shareholders, it now has a few hundred (or thousand) But private property has
not been abolished. Socialists aim to abolish the social structures that allow
for the division between the rich and the poor - private ownership, money,
markets etc. Socialists advocate the socialisation of the means of production,
not the dilution of ownership of the same. "Capitalist" isn't a
needlessly obtuse term of abuse for people we don't like, it denotes people who
own capital, the means of production under capitalism. The owners of a
co-operative are collective capitalists. The problem is that what exploits us
isn't the bosses, but capital. As long as the purpose of productive units is to
produce value, workers will be enslaved to the production of value, regardless
if there are an enterprise’s owners. Coops aren’t an alternative way to
socialism because they still produce value. Both capital and value are social
relationships. By making them the owners, workers do not abolish the relation
of ownership, nor do they abolish the anarchy of the market etc. etc.
Many cooperatives face the same issues as small business
owners face. Often worker cooperatives are in the service, food or other
specialty industries with lower profit margins and because they are smaller and
do not have the advantages of scale which larger companies do, workers are
often are forced to work long hours at lower wages to stay afloat. I’ve heard
this called by some “self-managed exploitation.” As well, many cooperatives
such as these in part remain afloat because they produce niche products like
radical books or vegan/specialty food products that don’t really compete with
the major corporations that dominate their industry.
There will be a tendency of worker cooperatives to see their
needs and interests as an entity apart from and/or above other workers. After
all, as cooperatives exist within a market system, their interests are to
compete with other companies and expand their market share. This is a key and
important difference between workers cooperatives, where the means of producing
goods and services are owned by a specific group of workers competing with
other cooperatives and capitalist companies through a market system and the
deeper and post-capitalist goal of a socialized economy whereby all the means of
producing goods and services are seen as belonging to society as a whole and
while directly operated and run by the workers at each entity would be
federated and coordinated in a horizontal manner to produce products and
services based on need.
Even sympathetic observers such as Noam Chomsky understands
the limitations:
“Worker ownership within a state capitalist, semi-market
system is better than private ownership but it has inherent problems. Markets
have well-known inherent inefficiencies. They’re very destructive. … [what is
needed is to] dismantle the system of production for profit rather than
production for use. That means dismantling at least large parts of market
systems. Take the most advanced case: Mondragon. It’s worker owned, it’s not
worker managed, although the management does come from the workforce often, but
it’s in a market system and they still exploit workers in South America, and
they do things that are harmful to the society as a whole and they have no
choice. If you’re in a system where you must make profit in order to survive.
You are compelled to ignore negative externalities, effects on others.”
Cooperatives that exist under a market economy inevitably
replicate the problems of capitalism although it makes life better for some,
but it doesn’t end the system of exploitation. They reproduce capital and
prioritises sectional interests of pockets of workers of the class interests
over the working class as a whole. Socialists regularly use the term “wage
slavery.” What is meant by this is that workers under capitalism are not
‘slaves’ to a particular boss, but through the system of wages they are
compelled to work for employers as a class in order to survive. This is why
anti-capitalist labour radical such as the the IWW believe that an end to
capitalism required a struggle to organise workers eventually leading to workers
to taking control of their workplaces and what they called the “abolition of
the wage system.” Men and women will never be free from exploitation and
oppression until all work is voluntary and access to all goods and services is
free. This is a practical proposition now. Tinkering with administrative forms
is of no use. Buying and selling must be abolished. The wage packet—the
permission to live—must be abolished. It is true that our masters live off the
fat of the land in luxury, but even if they adopted the austere puritanical
lifestyle of a monk we should still be slaves.
The most crucial error of Richard Woolf and Gar Alperovitz
models is that the essential features of capitalism are retained, yet they
believe capitalism can be guided by "workers' management" towards
humane and liberating ends. The market is to remain, but not, apparently, its
laws. It should be obvious that if any enterprise produces to sell, and pays
its bills out of its revenue, it will be subject to the same basic market laws as
any other enterprise. Of course, at the moment these laws are observed and
interpreted by management, which then makes the decisions and' imposes them on
the other workers in the interests of the shareholders. But it should have
occurred to Woolf and Alperovitz that these same laws might have the same force
whoever does the managing and even if the shareholders, so to speak, are the
workers. This is a suggestion which proponents of a “new economy” ought at
least to consider. "Capitalism without capitalists" could never in
fact come about. Should the working-class reach a level of understanding where
they could pressurise the owning class out of existence, they would long since
have passed the stage where they would have abolished the wages system and established
socialism. They argue for some sort of “self-managed capitalism” that could
only exist on paper.
Even if we consider "capitalism without
capitalists" in our imaginations, we can see it would be no improvement on
capitalism with capitalists. Workers collectively administering their own
exploitation is not an objective socialists should aim for. Those groups
demanding "workers' management," "workers' participation"
and "workers' control" (though their various adherents distinguish
very loudly between these three) will probably be used by capitalism, as in
Yugoslavia, to give workers the impression that the enterprise they work for in
some way belongs to them. If all employees can be drawn into the process of
management, and can be given the illusion of an identity of interests between
workers and employers, this helps to muffle the class struggle and enhance the
process of exploitation.
The basic contradiction of capitalism is that between
socialised production and class monopoly of the means of production, which
manifests itself as working class discontent with its general conditions of
life, not just its work experiences under capitalism. If this was better
understood it would be realised that socialism is not just concerned with
emancipating workers as workers (i.e. wealth-producers) but as human beings
(i.e. as men and women). It would also give them a clearer conception of
socialist society. Socialism aims not to establish "workers power” or
“workers control” but the abolition of all classes including the working class.
It is misleading to speak of socialism as workers ownership and control of
production. In socialist society there would simply be people, free and equal
men and women forming a classless community. So it would be more accurate to
define socialism/communism in terms of the common ownership and democratic
control of the means of production by and in the interest of the whole people.
Frequently defenders of co-operatives will resort to the
argument that they are at least a stepping stone towards socialism. But
socialism is the movement against capitalism in all its forms. Co-operatives
are just as much a "transitional form" as joint-stock companies are.
And I don't think anyone is naive enough to claim, in 2014, that joint-stock
companies are "socialist" in any way. Marx didn't say that stock
companies are "socialist" in any way. He said they are an
association, and cease to be individual property, which is an antithesis to old
form. However, they remain trapped in capitalism. There can be no transition
from one thing to something else that is in complete opposition to it. The task
of socialism is not a change in management, but a social transformation of all
institutions and structures of society. If there are cooperatives exchanging
their products, there's self-managed capitalism and not socialism. You say you
like the idea of not having a CEO or boss, but you will still have a market dictate
and can be just as cruel – never mind the inequality. Cooperative labour will
of course be a pillar of socialism, but not in the context of competitive
markets. It is impossible to have a nice sort of capitalism. Capitalist firms
are brutal not because their owners are bad people, whatever that means, but
because they need to be brutal to their workers in order to prop up the falling
rate of profit. If they can't do that, they are ejected from the market, it's
that simple. Socialists are not opposed to "Big Business” per se but
business, period. If co-operatives are to supersede capitalism, their
production has to be regulated by a general plan determined by society as a
whole, which means that they cease being co-operatives because co-operatives
are distinguished by their status as autonomous business entities.
Compromising with co-ops and building from the ground up (and
all other such nonsense that utopian liberals who want to call themselves
socialist preach) has led to nothing but dead ends. It didn't work in France
with Louis Blanc, it didn't work in Algeria under Ben Bella or in Tito’s
Yugoslavia. It didn't work anywhere, and it won't work, ever. The idea is to
change the way people live and work together. Not to replace the system we have
now with co-op's then call it a day and quit. Co-operatives are simply another
form of private property. They aren't changing the system.
To sum up, the economics Woolf and Alperovitz support is
simply the dead-end of self-managed capitalism, which is every bit as
reactionary as private or state capitalism. The communist society we are
fighting for can only be established by the complete destruction of ALL private
property, money, wages and markets - whatever their form. We don't want to own
or manage our own misery. Socialists stand for a society based on the abolition
of remuneration in the form of wages and democratic control and an economy
based on the destruction of the wage system, and a de-linking of the value of
labor in production from the distribution of society’s wealth to its members.
It is simply not possible anyway to measure an individual’s contribution to
production, our production is largely social. The contribution of an individual
is very difficult to isolate from the contributions of countless others that
make work possible. Any such attribution can only be arbitrary. Having
co-workers judge each other’s work would turn gossip and in-fighting at work
presently from an annoyance into a system of power over wages. The assets of a
co-op do not cease being capital when votes are taken on how they are used
within a society of generalised commodity production and wage labour. That is
to say there remains an imperative to accumulate with all the drive to minimise
the labour time taken to do a task this requires, even in a co-op.