Worker owned businesses--or how to stay alive and well as the world economy falls on its ass--oops -- its bottom line

Labor as Capital, worker run companies

For many years people have been fed the economic version of bullshit—that labor and capital, communism or cooperativism and capitalism are enemies. We’ve also been fed the other bullshit that globalization is the answer to a better world. With the prediction that maybe 51 million people may lose their jobs worldwide this year 2009, and the horrible tragedy of that beautiful family lying dead –because both parents lost their jobs—only the braindead should still believe in these lies.

The history of the collapse of the world economic systems starts with the destruction of the family farms. While there are family farms near a city, that city has a good chance of surviving catastrophic times. When the farms are far far away the opposite is true. The line was that it was more efficient for a country to have big factory farms. And then it is more efficient to buy from wherever it is cheaper and the hell with your own country's farms.

Then it was the turn for the local factories. They were closed and the products and the blue collar jobs were out-sourced. It was more bottom line efficient to make a shoe for ten cents in China or the other countries of the Far East,and ship it back and sell the shoe for $75 than to pay a decent wage and make the shoe for $15 or $20 and sell it for $40 or $50. (this happened also in Israel where jobs went to our enemy—Jordan-or our potential enemy-China).

Then the middle class, who were happily spending their high salaries on stupidities and never caring about the farmers or the working class, got their turn at being unnecessary to the big wheels. Their jobs got out-sourced to countries such as India, where there are many educated professionals who are very happy to get much lower salaries.

And now it is the turn of everyone else—for the bottom line economy has taken the bottom out of the economy and everyone is falling splat on their fat or no longer fat asses.

So what is the solution? It’s sitting right in front of us: labor owned and operated businesses. They used to be called Guilds, they are sometimes called cooperatives, but the name does not matter.

If we see Labor –the ability to perform a job, and Experience –the skills needed to perform a job and supervise a job as Capital--the power to get a business started and off and running-- we have an alternative to soup kitichens, bread lines, over-printed worthless money and cycles of brainless blaming and violence.

I’m not sayng do away with corporations, for a group of people trying to star a business together need the legal protections that a corporate charter can provide them—so that no asshole can sue them for their family home if something goes wrong, as it sometimes will. A corporation as opposed to a family or partnership business has limited liability.

There are precedents, I remember seeing a documentary about a factory in the countryside of one of the mid southern states which was bought and run successfully by the workers who had just been laid off by the bosses out-sourcing their jobs to somewhere in Asia. There are other examples but that one stuck in my mind, for the owners never thought that their lowly blue collar workers could easily and elegantly replace them as the management.

But that is just the point: when workers are the managers they don’t need to have a bottom line policy-- for there is no drain to the non-working stockholders or the overly greedy upper management. If they make a nice product that sells for a reasonable profit they will all eat, have money for clothes and cars and sending their kids to a local college. The profit does not have to be so big as to finance a private jet to the CEO or a marbled executive toilet for the upper management.

So before anyone thinks of suicide, or drinking himself to death or a lifetime of happy pills on welfare, let’s take a good look at the skills we have and how we can apply them to putting together a worker run limited liability company.

If the workers run the company, they can create work schedules that fit their needs, maybe half days or split days for mothers with young children, or a completedly outfitted nursery and kindergarten on the premises (with a breat feeding room too). A split day or weekend double shifts could help those going to college or a vocational school to be employed. Food for the cafeteria could be partially cooked at home. Grandma might come back to work to supervise the nursery or have a story hour a few times a week. Grandpa could come out of retirement to explain or trouble shoot that ornery equipment.

A worker run company could be white collar also, --a medical lab could be run by the technicians, a medical service by the doctors and nurses, a school by the parents and teachers and the community etc.

This could be the future as the world egg cracks.

We don’t have to fall between the cracks!!

We can help each other stay alive and kicking. There are two sayings most people know: G-d helps those who help themselves and Love your neighbor/friend as yourself. Put those two together and have a worker owned, or perhaps a neighborhood or community owned business. And if worker owned businesses only bought from similar businesses –well you have a power base.



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Comments

  • D6fer said on Jan 28, 2009....
    marking....will reply later
  • scipio said on Jan 29, 2009....
    People never appreciate the goods manufactured in their own country. However good and reliable quality of goods are manufactured and available in your own home country - people will always prefer foreign made goods. As factories are located closer to the source of the raw materials and cheap labour - this problem is bound to happen. Western countries & specially labour which once upon a time used to make good quality and reliable  goods  became lazy and expensive - resulted in factories being shifted where the manufacturing cost is less and profitable.
  • Trinov said on Jan 31, 2009....
    Just thought that this article in the International Herald Tribune is interesting. It's a good newspaper to follow for European News, being centered in Paris. Over the years it has remained a traditional newspaper, with more news than features.

    http://www.iht.com/articles/2009/01/30/business/wbmarket31.4-419708.php

    To scipio: I think that while you are right that it started as a trend, but it became an agenda. And now that agenda is destroying everyone's economy. And I believe that the only alternative to globalization and its de-humanization of labor, education and experience, and its robotization of most of humanity, ie a re-feudalization of the world, is to start from the individual asserting his basic rights to a decent living.

    Cooperatives don't have to have any idealistic or political agendas either. The whole agenda should be practical survival without any of the dumb "isms" of the past.
  • Trinov said on Feb 04, 2009....
    Me again: with the mass failings of business, I can see no justification for the division of management and workers. The management class has over-eaten its share of the profits, with super-inflated salaries, bonuses and company paid vacations and perks. All the while the wages of the actual working people have gone down in quality so that few families can afford to have the mother stay at home, or to send their child to a college.

    If these MBA's were such great managers and every business was prepared for all eventualities and no one ever had to be laid off--then maybe there would be some small justification for the treatment of the management class as supermen and super heroes.

    But what we see is actually the remnants of a feudal society and in some firms the feudal military system. For centuries in England, for example. the upper class bought their officer commissions, and until the end of WWI, if I remember correctly, there were no officers 'from the ranks' in England, or very very few. The common man could be kidnapped into the British Navy --and the American Navy too in the 19th century, and subject to a slave existence and even an administrative death sentence --like being pulled under the boat --and who survived survived and who died died.

    When I was in kibbutz people took turns at being managers. This I've read has stopped now, for kibbutz also has developed a 'class' mentality, of supposedly being led by the more intelligent, even if it is not expressed this way. And what happened when the management class took power?-- they lost the shirts of everyone in their kibbutzim by playing the market and being caught by a Ponsi scheme, after which many kibbutzim became mortgaged to the banks. (the banks in Israel have few restraints and get away with financial 'murder' with everyone's bank accounts).

    While it is true that there are people who are better at dealing with people and people who are better at a one to one position with machines, or animals or plants, everyone should be recognised for their skills and unique understandings of the jobs involved and everyone should be treated with respect and given the opportunity to contribute to the total 'management' picture. No one should get a bonus if anyone has to be laid off!!!!!!!!!!!!!!!!! No one should make more than say, ten times the lowest salary. Everyone should have shares in the company and share in the sucesses and failures. And no one should be laid off-- a company that is functioning can find ways of keeping everyone eating until the good times come back, that is unless they are treating their managers as little princes and the rest of us as feudal serfs and slaves.

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