Posted by Joe on: 07.03.2008 /
In the early years of this century, something amazing was happening in Argentina. Due to a massive downturn in their economy, many businesses were going bankrupt threatening the livelihood of thousands of workers.
Then, in an unprecedented move, the workers of many of the businesses went to the bankrupcy courts demanding the right to buy out the factories they once worked in. Surprisingly, the courts allowed the workers to do this at a peppercorn rent for a few years. After some battles in the early years, many of the businesses have continued in workers hands - over 170 representing more than 10,000 workers.
Unwittingly, they had created the biggest workers co-operative movement ever.
Today, many of these factories are more profitable and more stable than they had been under private ownership and benefitting from a system of microcredit loans from an organisation called The Working World.
Wow.
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Comment by: Jason Horton
1 07/4/08 3:25 AM | Comment Link |Wow indeed. Although I wonder why the loans weren’t available to the original factory owners.
Comment by: joe
2 07/4/08 4:03 AM | Comment Link |Don’t know. And I’m not sure I care, I’d rather have factories in common ownership than by a small number of rich men.
Comment by: Jason Horton
3 07/4/08 4:47 AM | Comment Link |Why?
Don’t get me wrong, I think that cooperative ownership is a great idea especially for new businesses in farming or manufacturing. In this case though these factories were all ready established and had owners who just needed funds to get them through a difficult time. Why should they be denied loans and someone else given them for the same enterprise.
Of course there is little difference economically between a company buying up bankrupt factories and a cooperative buying up bankrupt factories. As long as people have jobs and the country gets it’s taxes then they should be equally supported. You could argue that the “small number of rich men” have sufficient wealth not to need the loans but they would also be contributing more in taxes than the many members of a cooperative and would be able to offer better assurances for recovery of any debt if the factories failed again.
Comment by: joe
4 07/4/08 6:12 AM | Comment Link |Well, I’m biased, I think co-operative ownership is always better for all businesses. I’m not sure whether the owners were denied loans, just that people were prepared to support factory workers pull themselves up by the bootstraps and loan to apparently non-viable businesses.
I’m no expert on this situation so I can’t say more than that.
Comment by: Jason Horton
5 07/4/08 6:58 AM | Comment Link |Fair enough, I’m no expert either. As long as people kept their jobs and had an opportunity to make the most of the situation then I don’t suppose it matters. Well, except to the former owners.