The Cure for Layoffs: Fire the Boss!
In 2004, we made a documentary called The Take about Argentina's movement of worker-run businesses. In the wake of the country's dramatic economic collapse in 2001, thousands of workers walked into their shuttered factories and put them back into production as worker cooperatives. Abandoned by bosses and politicians, they regained unpaid wages and severance while re-claiming their jobs in the process.
As we toured Europe and North America with the film, every Q&A ended up with the question, "that's all very well in Argentina, but could that ever happen here?"
Well, with the world economy now looking remarkably like Argentina's in 2001 (and for many of the same reasons) there is a new wave of direct action among workers in rich countries. Co-ops are once again emerging as a practical alternative to more lay-offs. Workers in the U.S. and Europe are beginning to ask the same questions as their Latin American counterparts: Why do we have to get fired? Why can't we fire the boss? Why is the bank allowed to drive our company under while getting billions of dollars of our money?
Tomorrow night (May 15) at Cooper Union in New York City, we're taking part in a panel that looks at this phenomenon, called Fire the Boss: The Worker Control Solution from Buenos Aires to Chicago.
We'll be joined by people from the movement in Argentina as well as workers from the famous Republic Windows and Doors struggle in Chicago.
It's a great way to hear directly from those who are trying to rebuild the economy from the ground up, and who need meaningful support from the public, as well as policy makers at all levels of government. For those who can't make it out to Cooper Union, here's a quick round up of recent developments in the world of worker control.
In Argentina, the direct inspiration for many current worker actions, there have been more takeovers in the last 4 months than the previous 4 years.
- Arrufat, a chocolate maker with a 50 year history, was abruptly closed late last year. 30 employees occupied the plant, and despite a huge utility debt left by the former owners, have been producing chocolates by the light of day, using generators.
With a loan of less than $5,000 from the The Working World, a capital fund/NGO started by a fan of The Take, they were able to produce 17,000 Easter eggs for their biggest weekend of the year. They made a profit of $75,000, taking home $1,000 each and saving the rest for future production.
- Visteon is an auto parts manufacturer that was spun off from Ford in 2000. Hundreds of workers were given 6 minutes notice that their workplaces were closing. 200 workers in Belfast staged a sit-in on the roof of their factory, another 200 in Enfield followed suit the next day.
Over the next few weeks, Visteon increased the severance package to up to 10 times their initial offer, but the company is refusing to put the money in the workers' bank accounts until they leave the plants, and they are refusing to leave until they see the money.
- A factory where workers make legendary Waterford Crystal was occupied for 7 weeks earlier this year when parent company Waterford Wedgewood went into receivership after being taken over by a US private equity firm.
The US company has now put 10 million Euros in a severance fund, and negotiations are ongoing to keep some of the jobs.
As the Big Three automakers collapse, there have been 4 occupations by Canadian Auto Workers so far this year. In each case, factories were closing and workers were not getting compensation that was owed to them. They occupied the factories to stop the machines from being removed, using that as leverage to force the companies back to the table - precisely the same dynamic that worker takeovers in Argentina have followed.
In France, there's been a new wave of "Bossnappings" this year, in which angry employees have detained their bosses in factories that are facing closure. Companies targeted so far include Caterpillar, 3M, Sony, and Hewlett Packard.
The 3M executive was brought a meal of moules et frites during his overnight ordeal.
A comedy hit in France this spring was a movie called "Louise-Michel," in which a group of women workers hires a hitman to kill their boss after he shuts down their factory with no warning.
A French union official said in March, "those who sow misery reap fury. The violence is done by those who cut jobs, not by those who try to defend them."
And this week, 1,000 Steelworkers disrupted the annual shareholders meeting of ArcelorMittal, the world's largest steel company. They stormed the company's headquarters in Luxembourg, smashing gates, breaking windows, and fighting with police.
Also this week, in Southern Poland, at the largest coal coking producer in Europe, thousands of workers bricked up the entrance to the company's headquarters, protesting wage cuts.
And then there's the famous Republic Windows and Doors story: 260 workers occupied their plant for 6 world-shaking days in Chicago last December. With a savvy campaign against the company's biggest creditor, Bank of America ("You got bailed out, we got sold out!") and massive international solidarity, they won the severance they were owed. And more - the plant is re-opening under new ownership, making energy-efficient windows with all the workers hired back at their old wages.
And this week, Chicago is making it a trend. Hartmarx is 122-year old company that makes business suits, including the navy blue number that Barack Obama wore on election night, and his inaugural tuxedo and topcoat.
The business is in bankruptcy. Its biggest creditor is Wells Fargo, recipient of 25 billion public dollars in bailout money. While there are 2 offers on the table to buy the company and keep it operating, Wells Fargo wants to liquidate it. On Monday, 650 workers voted to occupy their Chicago factory if the bank goes ahead with liquidation.
To be continued...