Category Archives: Marxism

Workers’ cooperatives as an alternative to Capitalism – 2

Posted on by
Reply

10698536_420301091453164_5593204590190940624_nMarxists believe that conditions determine consciousness.  The ideas that most people have are products of their circumstances.  Currently workers sell their labour power as a commodity.  That is why they concentrate efforts on the price of their labour power (wages) and the terms and conditions at which it is sold.

It is why they value those services that they cannot provide for themselves individually but are unable to provide collectively because they lack the consciousness and organisation to do so.  This includes such things as unemployment insurance, pensions, health care and education.

The sanctification of capitalist private property means that the former is not strictly political while the distribution of the revenue from capitalism is.  Through the latter the working class is made dependent on the state for these services, including through employment in their delivery.  The welfare dependency culture repeated like a mantra by the right has this much basis in fact.

What there is not therefore is the material basis for the growth of a consciousness that workers should own, manage and control the productive activities of the economy and the state.  Instead the growth of the state and its acknowledged political leadership are the grounds for the view that the redistributive powers of the state are the basis for a solution.  This mistaken view takes the extreme form on the Left that the state should take over production itself.  Of course this has been tried.  It didn’t work well.

What we have with the Keynesian alternative then is an expectation, doomed to disappointment, that the capitalist state will divide the fruits of capitalism to benefit those who have first been exploited in opposition to those who have carried out the exploitation, which must remain in place in order to continue funding the redistribution.

Marxists believe that the future socialist society is not utopian because current society contains its anticipation in various ways.  Capitalism is pregnant with the future socialism; except that if the state is the embryo then the pregnancy taken to full term does not result in socialism but something else entirely.

Workers’ cooperatives are one of the crucial elements of this anticipated new society growing within the womb of the old.  It reunites workers with the means of production and removes the capitalist from the workplace.  It gives ownership to the workers and elevates their power, confidence and consciousness.  It can prepare the workers involved and other workers for the task of making the whole economy the property of the working class, which is socialism.

Workers ownership can provide the basis for workers to provide the services that are currently provided by the state and which leaves them at the mercy of the state and the politicians who preside on top of it.  Such services include education, health, welfare and pensions.  Workers self-provision of this would result in their own priorities being imposed on their provision.

However to posit this as the alternative immediately demonstrates a major difficulty.  While it is possible to envisage workers cooperatives supplanting individual capitalist production it is much more difficult to envisage this in regard to the services now provided by the State.  What this once again demonstrates is the role of the state as defender of the capitalist system – through exclusion of the working class from direct control within society and protection of the accumulation needs of capitalism.

Workers’ self-provision of what are now services provided by the state would necessarily lead not to demanding more taxation by the state but less, so that workers would have more control of their earnings and would have more to pool together and employ to their collective benefit.  In short workers would take more and more responsibility for their own lives, even when temporarily or permanently unable to work.  The dependence on the capitalist state would be weakened, at least in this respect.

In Ireland workers would have the grounds for recognising that there is an alternative economic development model to reliance on US multinationals.  They would have an example of a model of development that didn’t rely on the state.  They would have a living alternative to the threats that they need the capitalist banks.

Instead of workers relying on the state to provide for them by taxing the rich or investing in infrastructure to promote private capitalist investment they would have an alternative in which it is their own activity which is the alternative to capitalist crisis.

Is this the viewpoint of a reformist and utopian scenario?  I think not.

Firstly thousands of cooperatives already exist; they are not purely idealistic mental constructions.  What’s more they can be, and many are, very successful; providing hundreds of thousands of jobs.  Living proof that workers can do without capitalists to tell them what to do.  Workers can take control, can make decisions and can be successful.

The spread of workers’ cooperatives in entirely possible, their growth and development is not precluded by any necessarily limiting factor in capitalist development, at least to the point where capitalist accumulation appears threatened by it.

The trade union movement and the political organisations of the working class can play an important role in their development.  Workers’ cooperatives are therefore not an alternative to the existing workers movement but are something that can be complementary to its development, freeing it more and more from dependence on private capital and the state.

In fact workers’ cooperatives will inevitably demonstrate through their development the antipathy of the state to workers ownership and the power that workers as a class will develop as a result of its development.  The state will inevitably be used by the class it serves, the capitalist class, to undermine competition from workers cooperatives and support private capitalist accumulation.  Such a development will clarify the lines of battle between the workers’ movement and the capitalist system.

Workers’ cooperatives are not an alternative to class struggle but a means of carrying it out.  The creation of workers’ cooperatives in Argentina following its capitalist crises is evidence of this – how much better to promote workers’ cooperatives before such cataclysmic crises rather than in their midst or aftermath.

When workers say – “where is your socialist alternative after over a 150 years of your movement?”, we might have a living movement to point to rather than a simple promise for the future.

And such a movement will be an international one because just as capitalist development has become international there is every reason why workers’ cooperative production should also be international.  Every bit of such development will strengthen the international bonds between workers and undermine nationalist solutions that are currently growing.

In other words workers’ cooperatives provide the living link between resistance against the injustice of the current system and the creation of a real alternative.  Instead of simple rejection of cuts and lack of democracy workers’ cooperatives not only posit employment and democracy within the cooperative but the transition to a new society.  Workers’ cooperatives thus provide the material basis for linking the struggle against capitalism to the creation of socialism.

Workers’ cooperatives are not a magic bullet answer to the current crisis on the Left.  There is no simple or singular programmatic answer to a crisis that exists at the level of working class consciousness and organisation.  But for the Left a programmatic answer is currently by far and away the most important contribution that it can provide to workers.

Traditionally the revolutionary left has rejected workers’ cooperatives because they have been seen as an alternative to revolution – a militant class struggle against capitalists and the state culminating in an insurrection, the smashing of the capitalist state and creation of a new one.  I don’t think anyone can credibly claim that the patient work of class organisation involved in union organising, party building and creation of workers’ cooperatives would get in the way of a burgeoning revolutionary movement.  Anyway, when was the last revolution in an advanced capitalist state, one in which the working class is the vast majority of society?

It can be legitimately claimed that workers in existing cooperatives lack socialist consciousness so how can they provide the material basis for socialism?  This objection however must also take on board the reality that decades of union organisation has also not turned the majority of trade unionists into socialists.  However no one advocates abandoning the organisation of trade unions.

Finally an objection is made that workers’ cooperatives will simply teach workers to exploit themselves within a market economy based on competition.  They will simply become their own capitalists.

However, at the extreme, the ownership of all production by the working class would not only remove the capitalist class but would also remove the need for all allocation by the market, or by socially necessary labour time, to use the strictly Marxist definition.  In other words workers’ cooperatives would cooperate with each other.  Such competition as would exist would not play the same role as capitalist competition just as the continued existence of money tokens would not make it a capitalist system.

So for example, a factory making shoes that became unfashionable would not close down and throw its workers into unemployment but would see them transfer to either production of shoes that were in demand or to some entirely different branch of production.  Other workers would support this because they would all know that what they produce might equally go out of fashion, become technologically obsolete or have its workforce reduced by automation.  In the same way the receipt of money as salaries and wages would not mean that this money would exist as capital, able to purchase labour power in the pursuit of profit.

The current value of workers’ cooperatives is not just as living practical examples of socialism but that they allow theoretical and political clarification of just exactly what socialism is.  They shine a light on the difference between workers power and all the solutions that rely on the state – from Keynesianism to nationalism.

This is the second part of the post.  The first part appeared here.

The debate on socialist strategy and the Irish Left – Part 5

Posted on by
1

The strategy of attrition proposed by Mendel-Gleason and O’Brien proposes democratisation of the existing state through electoralism. They pose the question of the existing state as “whether its form in the advanced capitalist countries is so antithetical to socialism that it is of little use in the project of socialist transformation. But what is this form?”

Irish-times-march232011

I have tried to answer this question in the last post by setting out that the form the state takes is an expression of its role in resolving class conflict according to the rules of the capitalist system.  The rule of law performs an ideological role by disguising the rule of people, a particular class of people.

The capitalist state is adept at hiding its class nature as does the economic system itself because the rules of the state are universal in the same degree as the laws of the capitalist economy.  To challenge either is to invite economic, social or political collapse – unless one has a real, practical and concrete alternative.

The class character of society is not hidden from Mendel-Gleason and O’Brien but the class character of the state is, so that they consider democracy as something that is devoid of any essential class character.  There is only more or less democracy; not ‘bourgeois’ democracy or ‘proletarian’ democracy.

Presumably as the state becomes more democratic it reflects more and more the interests of the majority working class within society and if this were the only distinction between their view and that of classical Marxist then it might be argued that there would be differences only of terminology and views on the possibility of such democratisation.

Unfortunately this is not the case because their view of a democratised state leaves out the essential content of workers democracy, which because it is the rule of the vast majority of a class whose interests lie in the abolition of all oppression and exploitation, leads not to the perfection of the state but to its disappearance.

So the answer to their question is Yes, the “form [of the state] in the advanced capitalist countries is . . . antithetical to socialism [so] that it is of little use in the project of socialist transformation.”

The post by Revolutionary Programme sets out the views of Marx as to what a working class state might look like including the revocability of the elected, their working class membership, the working character of the elected body and the payment of the elected at a workers’ wage.

Much of the functions of the present state, such as education, would no longer belong to the state proper but would be functions of society.  Other functions would also be abolished in their present form such as the standing army and become a workers’ militia staffed by workers for short periods.  Hierarchical structures would be reduced and eventually eliminated while those at the top of certain functions would be elected and thus cease to be directly accountable parts of the state but an accountable part of the wider society.

Such a state that immediately begins to wither away is incompatible with the existing state which distinguishes itself by characteristics that are precisely opposed to these.  The capitalist state stands above and apart from society, apart from its ‘vested interests’, and prides itself on its hierarchical and bureaucratic character, its rules, its procedures and pure administrative logic.

Its staff pride themselves not on what they have in common with wider society but their professionalism that separates them from it.  Its representatives, elected and non-elected, require ‘adequate’ remuneration so that they aren’t vulnerable to corruption from it.  Their position must be insulated from popular pressure especially in choreographed periodic elections when extra care must be taken by the non-elected through entering a period of purdah and the elected have a few weeks in which to attempt to manipulate political debate.

Those who make laws must not be infected by their application.  Hierarchies are required to discipline and train the state’s staff in the rigours of bureaucracy.  All this is cemented by an ideology that eschews particular interests that actually do exist in favour of the interests of the state itself or the interests of the nation, which do not exist, except to hide the interests of the nation’s ruling class.

Such a state can only be separate and stand above and apart from society because society stands apart from the functions of the state.  This can only happen when society is characterised by the ownership of its productive powers by a small class and by the existence of a much larger class without ownership of any productive property and thus in little or no position to assert rights or interests within society or have them reflected by the state.  If the latter did the state would disintegrate through the struggle of incompatible interests.

Thus whatever impact working class struggle has on the workings of the state it is relatively minor and certainly cannot transform it into a mechanism for advancing the socialist project.

Where the productive powers of society, including its factories, offices, warehouses, transport, hospitals and schools are the collective property of society and controlled and managed by its members the possibility exists for the functions of the state to merge with this society.  Under capitalism no such possibility exists.

This is why the alternative democratisation proposed by Mendel-Gleason and O’Brien, of the state becoming the tool for the socialisation of production, does not succeed.  Even by doing so it does not cease to stand above society, above the working majority, who continue to work for it and not for themselves.   The state cannot therefore socialise society as it ‘socialises’ production.

For them the ‘herculean’ task becomes one of “learning to guide a large bureaucracy into a democratic mode of operation.”  In the same breath they say that it is “only in certain forms of organisation and under certain conditions that their (workers) capacity is actually realised.”  Unfortunately large bureaucracies are not one of them.  In fact such bureaucracies are the antithesis of free and democratic organisation.  How do you guide the democratic operation of bureaucracies without them either ceasing to be bureaucracies or ceasing to be guided?

The Stalinist states, the capitalist states, and the workers organisations in capitalists countries are all evidence of the incompatibility of bureaucracy with workers democracy.  Elsewhere in their argument Mendel-Gleason and O’Brien recognise this but unfortunately the logic of their position compels them to propose the employment of bureaucracy to extend democracy within the existing state.

I am reminded of the quote by Lenin, exasperated by the growing bureaucratisation of the new workers’ state: “If we take Moscow with its 4,700 Communists in responsible positions, and if we take the huge bureaucratic machine, that gigantic heap, we must ask: who is directing whom? I doubt very much whether it can be truthfully said that the Communists are directing that heap. To tell the truth, they are not directing, they are being directed.” (Works, vol. 33, page 288, our emphasis)

The working class is now more cultured than was the Russian working class of the 1920s but the state bureaucracy is now also much larger.  Besides the impossibility of steering a large bureaucracy to democracy, why would one want to? Surely the task is to remove bureaucracy in the way described by Marx and removing functions from it to be democratically run by the workers as part of the rest of society?

The strategy of Mendel-Gleason and O’Brien to achieve such democratisation of the state through a political party seems wilfully to ignore the lessons of the degeneration of the Russian revolution.

Their proposals do not undermine bureaucracy but are inevitably built on its own principles since it is the state which they propose must be at the “centre” of democratisation.

So, for example “the state could mandate various banks to invest according to certain criteria which have won support through the majority socialist party.”

How could the state mandate the banks in any sort of sensible way as to how or where to invest?  What rules, which the banks already have, would they devise and bring to bear that those seeking money would not then present in a tick-box manner simply to get the money?  The lending decisions of the banks would therefore have to be monitored.

The decision of where to invest would now involve two parties where previously one existed.  But it is argued that it is the socialist party that will know what these rules should be although how a political party will know this is a mystery.  So we actually have three parties involved now where one existed before and we get more bureaucracy.

What we don’t get is any idea that workers taking control of production should establish their own banks and, being directly involved in production and finance, might have a better idea about where to invest.

But no, it is the state “by using its legislative and judicial functions in a pro-labour way . . . which promotes workers’ self-activity.”  As an example they argue that a bureaucratic ‘independent’ judicial process must decide whether workers can take over their workplace and create a cooperative enterprise.

“Workers would not be handed the products; the socialist militants would still have to persuade the workers in each enterprise to seek their legal right. Independent jury tribunals can decide in these and other cases between employers and workers. Assuming the juries are randomly selected, as they are now, then the working class will make up its majority, thereby facilitating pro-labour judgments. Of course, if the tribunals were to return consistently anti-labour decisions, we would have good evidence that support for socialisation was waning.”

Everything I have said about bureaucratic rules and the supposed independence of the state is employed to enforce dependence of workers on the state even when they seek to establish their own ownership of production.

Again the idea that workers should be free to establish their own cooperative production free from state interference seems alien to this idea of a rules-based socialism; for what is more rules-based that judicial proceedings where those with the greatest resources (the capitalist) argue and frustrate those with far less resources?  The reality of class justice in current society, which also has working class juries, seems to be lost on Mendel-Gleason and O’Brien.

To be continued.

The debate on socialist strategy and the Irish Left – Part 4

Posted on by
2

picture-17

As part of the Mendel-Gleason and O’Brien argument that the state is not essentially a capitalist one they state that society is more complicated than it once was.   Implicitly they must be arguing that it is less fully capitalist since the state now performs functions that workers should be defending.  Indeed they go much further than this:

“A further reason for not smashing the existing state is that we need it. . . . The modern state is needed for the simple reason that it performs socially necessary functions without which a technologically advanced, densely populated society would collapse. And compared to the pre WW I state, today’s one runs vastly more essential services like healthcare, education, food and pharmaceutical safety regulation, environmental controls, provision of infrastructure, and a civil and criminal justice system.”

“If those functions go unfulfilled by a future socialist polity, the day-to-day experience of life for everyone will quickly degrade leading to an erosion of support for the socialist government (or polity). Court summonses for drink driving, to take just one example, will have to be issued under a socialist administration just as much as they would under a capitalist one. In theory, the state justice system can be replaced by popular tribunals but rules of procedure, expertise in summarising and arguing the law, administrative clerks and the like cannot just be recreated at will. The legal norms are the product of a long, messy, and less than edifying social evolutionary process. Limited as they may be, they have the under-appreciated virtue of actually existing — not a trivial accomplishment.”

The last part of this long quote is particularly bad, with it having more in common with Edmund Burke than Karl Marx.  It is also amusing that they choose what might seem an everyday and unremarkable state function such as enforcing road traffic laws since we have just seen how the Irish State through the Garda have torn up thousands of penalty points. Even in performing such a humdrum function the state exhibits its propensity to bias and corruption.

As for the response to their overall argument, it is not the point that certain state functions, or rather certain functions currently carried out by the state, should not be done.  The question is how and by whom and for what purpose?

When we look at how the current state performs these roles we can see how it does so in subordination to the capitalist economic system.

We shall do this ‘logically’ but it should not be forgotten that the historical evolution of the state shows how it acquires its capitalist character.  So for example, as Marx pointed out, the growth of the state and the debts of the state became a powerful means of developing capitalist accumulation.

When capitalists turn money capital into productive capital they need to buy labour power capable of carrying out certain tasks effectively and efficiently.  Workers need to be healthy and with increasing levels of education to carry out increasingly complex tasks.  Even routine and boring tasks are not completely devoid of training.

The capitalists could try to pay for the health and education of their own workforce by themselves.  Unfortunately if some capitalists did this other capitalists would not and would then poach the healthy and skilled workers educated and kept healthy by competitors.  Such is one of the contradictions of capitalism.  Much better then to socialise the cost by getting the state to provide health services and education.

The market provided by the health and education services can then be milked by capitalist providers of health and education products such as drugs, medical equipment and hospitals and schools built through Private Finance Initiatives.

This then costs the health and education services more than necessary and results in either poorer quality services or higher taxes. And although these taxes are paid overwhelmingly by workers, who pay for the welfare state, the capitalists prefer cheaper and effective health and education services so that the value of labour power they pay for does not decline by higher taxes on workers’ income putting pressure on them to raise wages to compensate.

So the contradiction within capitalism isn’t removed, it is just displaced.  Getting the state to carry out functions doesn’t resolve the contradiction between seeking healthy and skilled workers and keeping down the costs while trying as much as possible to make these services easily exploitable commodities subject to direct capitalist provision.

The capitalist system doesn’t find it easy to negotiate through these requirements so, for example, it constantly reorganises the NHS in Britain, boosts then restricts private finance, changes school governance one way and then another and seeks to make working class children more suitable for employment while trying to limit the costs of educating them.

But all these changes of policy and seemingly confused changes of direction within state provided services are not direct examples of struggle between a progressive state and private capital but expressions of the contradictions of the capitalist system itself.

They do not reflect the pressure of the working class as against that of capitalists, although the working class will have its own views and interests bound up in such issues.

In Ireland and in Britain the working class has not been so weak for a very long time and while welfare is being tightened it is not being abolished.  Were welfare states the simple result of the balance of forces between capitalist and workers we would have expected much greater changes.

When the capitalist has bought labour power the state does not generally intervene in their prerogatives or that of their managers and then only if these are challenged by workers.  Factories and offices however generally don’t work without infrastructural facilities such as roads, transport, water and power and sometimes the state provides these or regulates the private companies that do.

Again the desires the private companies that do can often conflict with the needs of the private companies that use their services.

When production has ceased and the goods and services need to be sold to workers or to other capitalists the state intervenes by setting minimal standards, including contract laws and customer protection legislation, and supporting trade through tariff reductions, provision of insurance and sponsoring trade promotion.

When money is recovered from sales it goes into the financial system in one way or another and once again the venality of this system is a problem not just for workers but also for certain capitalists who would like the state to increase credit to business, reduce charges  and make the financial capitalists less privileged.  Opposition to ‘parasitic’ finance is not the monopoly of the left but has been a theme of the most reactionary movements in history.

In summary the main functions of the state as it has developed both reflects the needs of the growing capitalist system and reflects its contradictions.

An historical analysis also undermines the view that such aspects of the state as welfare, the ‘welfare state’, are examples of working class influence on what the state does.  The first steps in welfareism were taken by Bismarck in Germany, by the Liberal Party and Conservatives in Britain and a welfare state exists in the Irish State where there has never been a social democratic government of any type.

The argument that state functions have to be carried out for society to function is true but this does not support the Mendel-Gleason and O’Brien argument but exposes their strategy, for it is not technical aspects that define state functions but the social relations of production that define the roles that are performed.

Were the state to start to carry out the economic functions currently performed by the capitalist class and on an international basis it would undermine the functioning of the capitalist system itself and would lead to economic dislocation and collapse.

This would happen because of the sabotage of the capitalist class itself, because of the internationalisation of capitalist production which the nation state cannot substitute for without enormous economic regression and because the state cannot carry out the economic functions of capitalism without either being the capitalist itself or it beoming the sort of society we saw in Eastern Europe and the Soviet Union.

This sort of society proved unviable. It collapsed almost everywhere and is no model to emulate where it has not.  The inability of the state to substitute itself for capitalism both shows that it is not the road to socialism, or socialism would also be unviable, and that it is workers’ owned means of production that is.

In other words the functions carried out by the state that are recorded above are necessary for society to work without severe economic regression but only in so far as the society is a capitalist one.  Too little state intervention and the economic system will regress but too much and it invades what are more properly tasks of private capitalists.  The contradictory nature of capitalism, the bureaucratic rationality of aspects of state functioning and ideological disputes all mean that the concrete operation and role of the state is constantly in dispute.

The working class has an interest in who wins (temporarily) in this struggle but it does not take sides but advances its own powers to impose its own solutions upon the system and its state by ultimately replacing both.

The functions of the capitalist state are therefore performed because of the way the capitalist system works and are performed in a way determined by that system.  Just as the way the capitalist system works seems natural so does the workings of the state and the respective roles that they both have. All seem natural.

The economic system produces what Marx calls commodity fetishism where the attributes of people become the attributes of things.  The productive relations formed by people to produce the things they need become requirements of ‘the economy’, which has demands which people can’t control but can only accede to.

The actions of the state are complimentary to this economic system so that what it does not do – the activities of the capitalist class – also seems natural.  Just as capitalism delivers economic growth the state is seen to distribute the fruits of that growth.

The need of the former for the services of the latter become, as in the argument of Mendel-Gleason and O’Brien, mere technical functions that must be performed regardless so that the class character of the state is not at all fundamental.

These technical requirements however only exist because of the capitalist nature of the mode of production and would not exist as they do in another mode of production.  For example under a socialist mode of production health services, education, product safety and infrastructure provision would not be carried out by the state or any state-like body.

The capitalist character of the state is therefore reflected in a number of ways.

So for example, the claim that the state is autonomous is also held to be proof that it is not capitalist.  But to the extent it is not autonomous it directly reflects particular (capitalist) interests and for socialists the fact that it does in general exist autonomously from society is also demonstration that it exits separate and opposed to it, including from  the vast majority of society, particularly its working class.  Under the new society no body autonomous from society with any political powers would exist.  The powers of society would be wholly integral to it under socialism.

We have seen that what the state does and does not do demonstrates its capitalist character.  Under a new society it will disappear and no coercive body above or autonomous from society would exist.  The state, as Marxists have claimed, will wither away.

The personnel of the state are carefully selected, vetted and trained.  In Britain the most important forces declare loyalty not to the people but to the Queen.  In Britain and Ireland and elsewhere there is no greater crime than those committed against the armed forces of the state.  Witness the media coverage of killings of Garda for example.

The most senior positions in the state are almost invariable held by members of the most privileged classes and their rank and position within the state cements this where it does not create it.  Many can make a lucrative career on the Boards of capitalist corporations when they leave state employment.

The bureaucratic and hierarchical structure of the state reflects its need to insulate itself from democratic control and accountability.  When it needs to enforce its wishes it acts with force and decisively, it is hard.  When it evades accountability it appears as a blancmange, a maze and an impenetrable system in which no one appears to know how things work and no one is responsible.  One may as well try to pick up mercury with tweezers or cut through water.  Excuses are offered that we have asystemic failure but no one in this system made up of people is responsible.  Once again the actions of people become the property of things.

Laws are broken by the state so we have an enquiry.  When laws are broken by workers they are put in jail.  In no other country in Western Europe more than Ireland is it less credible to believe that the state is a neutral upholder of the law.   A cursory examination of the actions by state forces in the North of the country would explode the most ingrained prejudices, except of course the North of Ireland is always held up as a place apart.  And so the state always upholds the law except when it doesn’t.

The state is also a nation state so right from the start loyalty to it immediately involves division, the division of the working class, even when the workers belong to the same firm and would be out of work were their fellow (foreign) workers to fail to carry out their labour as they should.  The state teaches dependency on it not on the cooperative labour of the working class of all countries without which “a technologically advanced, densely populated society would collapse.”

The symbols, rules, hierarchies, uniforms, traditions and ideology of the state all make it inimical to working class self-emancipation from the rules symbols, rules, hierarchies, uniforms, traditions and ideology that oppress it.

In the final part of this post I will look at the argument that the state is, on the contrary, the mechanism of working class liberation.

The debate on socialist strategy and the Irish Left – Part 3

Posted on by
3

medium_Capitalism

“Marxists see the state as a form of class rule. It is not a free floating entity above the messy reality of class conflict but rather a tool for suppressing the exploited, that is, an organisational tool of those in control of the means of production. For much of history, this is essentially an accurate description and it remains fundamentally true to this day. In Ireland alone, the continuous and truly massive transfer of wealth from workers to capitalists arising from the latter’s losses in property speculation is a graphic illustration of the balance of class power.”

“. . . But modern society is more complicated than pre-capitalist social formations. The exploited are not as powerless and thus have gained a measure of influence over the state itself, the degree of which depends on the balance of class forces at any given juncture. The strength of the working class in Europe over the 20th century is reflected in the significant gains that it made, winning concessions on everything from maternity pay to lower retirement, from national health services to a reduction in militarism.”

“The western state is open to influence by other sectors. That is, it is dominated by capitalists and will, when push comes to shove, tend to favour their interests rather than those of other sectors. That tendency, however, demonstrates not that the state is intrinsically structured to deliver capitalism but that the social dominance of the capitalists manifests itself in the political choices made by those who control the state. Capitalist control of the investment process is key because most states are dependent on capitalists for a functioning economy, which itself is necessary to keep its population relatively satisfied and to generate income via taxation.”

“The state’s own capacity to reproduce itself, then, is dependent on capitalist investment but importantly it is not itself a capitalist formation as is proven by the existence of non-capitalist sovereign powers throughout history. The state, as a powerful entity with a distinct history and a degree of freedom regarding accruing resources, could attempt to usurp the capitalist position by supplanting its role in the investment process. Indeed, that is what we largely advocate. . . and a process of democratisation of the state is best seen as a parallel process to democratising the ownership of capital itself, rather than as either as a precursor or a successor to it. Until that balance of power is altered there is little reason to expect the state to escape its subservience to the needs of capitalists.”

“The state, in other words, does not operate on capitalist lines. It operates in a capitalist context. . .  The state is not, then, an eternal verity destined to contaminate all those who touch it but rather a site of struggle that reflects the balance of forces in wider society. It is a tool whose usefulness depends very much on who is wielding it and for what purpose. . . . but even if the premise of the state as an intrinsically capitalist one does not hold up, there is the further issue of whether its form in the advanced capitalist countries is so antithetical to socialism that it is of little use in the project of socialist transformation.”

These are the views of Gavin Mendel-Gleason and James O’Brien on the state.  In summary they say that the state has become more complicated, and so it has, and give its welfare functions as evidence of this.  The state has had a long history and has not always been capitalist and nor is it intrinsically capitalist now.  Rather it is open to pressure from forces in society, including the working class.  However the role of investment by capitalists, on which the state itself depends for functioning, means that the state tends towards supporting capitalism.  This however can be changed as both the state and capital is democratised with democratisation of the former being the means to democratise the latter.  So much so that it can be used to transform current society into a socialist one.

The view of Mendel-Gleason and O’Brien is essentially of a rather passive reflector of outside forces that has developed its own interests but which is a powerful mechanism that can be employed to revolutionise society.  Not altogether a very consistent or coherent analysis.

Let’s take the role of investment which Mendel-Gleason and O’Brien say is the key question.

Why is it that only the capitalists invest and so can influence the form of the state and how it operates?

This is because capitalism rests on the exclusion of the working class from ownership of the means of production.  When capitalists invest they also buy the labour power of workers and in order to make a profit, to extract surplus value in Marxist terms, they must pay workers less for the labour they perform than is included in what they produce.  The value of the labour performed by workers that they receive in wages is less than the value of the goods and services they produce.  This surplus value pays for the state among other things.

This arrangement seems natural and democratic since no one is compelled to work for any particular employer, can start their own business if they want and can ask for higher wages if they think they deserve more.  They enter into an employment contract voluntarily and as citizens with equal rights.  The state sets laws which reflect and guarantee this natural, democratic and equitable arrangement.

Mendel-Gleason and O’Brien can presumably see that the process of investment is but one part of an economic arrangement that places some with the ownership of capital and the many without and that this is neither natural or democratic nor equitable.  The role of the state is to protect this system so why can they not see that it too is neither natural or democratic or equitable but is rather intrinsically oppressive because it is based on the capitalist system itself?

If the state more and more took over the role of investment, i.e. took over the role of employing workers to produce surplus value, it would not be democratising capital but itself becoming the capitalist.

The apparent harmony of the capitalist system is exposed when  workers challenge the right of capital to exploit them either through strikes, occupations, pickets or pursuit of any restriction on capital that the owners of the means of production find unacceptable.  The state in these cases protects strike breakers, expels workers occupying workplaces, restricts or attacks pickets and allows sometimes the most egregious behaviour of capitalists to go unpunished.

The state will often sacrifice its own tax revenue to defend capitalists and in the case of the Irish state will see itself go bankrupt to bail out native and foreign bond holders and the banks.

What the state does not do, and has never done, anywhere and at any time – even in periods of mass working class pressure when Mendel-Gleason and O’Brien say it should – is organise strikes, attack strike breakers, plan occupations and pass laws that threaten the profitability of capitalism.  Sometimes, in extremis, it will nationalise capitalist concerns but since the state is itself capitalist this can easily be reversed, as it has been so many times.

The harmony of capitalism is therefore undermined by class struggle and the state exists to resolve this conflict.  Since this conflict can be resolved in ‘normal’ and peaceful periods through negotiation or compromise the state will support this.  In periods of crisis when it cannot be resolved the state will apply its force to defend capitalism.

In normal times the basic legitimacy and rules of capitalism are not contested so resolution means defending capitalism by default.  In periods of crisis workers break the rules and the state, as rule maker, must defend these rules or see its role destroyed so that defending itself is coincidental with defending the capitalist system on which the rules are based.

Since the rules apply to everyone and, as we have said, the economic system seems natural, democratic and equitable the rules and the state that defends them appear not to be defending any particular interest but the general interest, the national interest.  Workers who break the rules are charged with attacking the national interest, which is one reason why socialists are so opposed to nationalism since it binds workers to a state that defends and protects their exploitation.

So the state does indeed reflect class struggle but it is the means by which one class deploys the overwhelming power it disposes of in society, by virtue of its monopoly of the ownership of the means of production, to dominate and suppress the class of workers on whom it relies to expand its capital.

As law maker it sets rules which can only be consistent with the dominant mode of production and which are ultimately enforced by the most openly and patently reactionary arms of the state – the police, army, prisons and judicial system.  By these rules, as the old English saying goes:

They hang the man and flog the woman,

Who steals the goose from off the common,

Yet let the greater villain loose,

That steals the common from the goose.

The capitalist state therefore appears to be autonomous from any particular economic interest but the essential characteristic of the state is not its autonomy but its class character.  This autonomy is often exaggerated by Marxists and it is not uncommon for particular capitalist class interests to dominate to the detriment of others.  Political history is replete with conflicts between various sections of the capitalist class – industrial versus landed, large versus small, monopoly versus competitive, national versus comprador and foreign, declining versus growing, financial versus manufacturing.  This is why ideally the state does have autonomy.  But it cannot have it from the system as a whole.

How the state does this is a question of historical development but we must nail the argument that just because the state existed before capitalism and therefore could not then have been capitalist, it is not its class character which is its essential nature.  Before the capitalist state there was a feudal state and sometimes the bourgeoisie fought what is termed ‘bourgeois revolutions’ in order to make the state a capitalist one.

In these cases the transference of power was one from one exploiting class to another while socialism is the taking of power by the exploited majority.  That is why it cannot be achieved by simply taking over an oppressive and exploitative mechanism and developing it into a mechanism of liberation and freedom.  But we shall come back to that.

Arguments against workers’ cooperatives: the Myth of Mondragon Part 2

Posted on by
1

mondragon-humanity-at-workIn Part one of this post I looked at the argument that the most famous example of workers’ cooperative ownership involves the division of the working class within the cooperative so that technicians and especially mangers have different views and interests from manual workers.  This is reflected in their relative enthusiasm for the cooperative form.

In fact there is no evidence or argument presented in the book under review that there is a fundamental difference of interest between managers and workers arising from class position within the relations of production, although some evidence that there is differing levels of enthusiasm.

I argued in response that the evidence for the view that there is weaker engagement of workers in the cooperative involves writing off the views of the higher paid workers, some of whom might be called managers, but that there is nevertheless some weak evidence of an unhealthy lack of participation by manual workers in decision making.  In Marx’s support for cooperative production he noted that:

“The co-operative factories of the labourers themselves represent within the old form the first sprouts of the new, although they naturally reproduce, and must reproduce, everywhere in their actual organisation all the shortcomings of the prevailing system. But the antithesis between capital and labour is overcome within them, if at first only by way of making the associated labourers into their own capitalist, i.e., by enabling them to use the means of production for the employment of their own labour.”

The evidence of the book is that some of the most political workers have organised to struggle against some of these shortcomings and have succeeded.  This response of the workers is one that should be supported rather than dismiss workers ownership outright.  To anticipate the whole argument – if workers should not take up experiments in running their own workplace how are they ever to be expected to – in one momentous event called revolution – ever to take over running the whole of society and creation of their own state to protect it?

The actions of these politicised workers show the role that a workers’ party could play in advancing the socialist project within cooperative production.

The argument of the book (The Myth of Mondragon) however is not only that the real workers cooperative, as opposed to the mythical one, divides workers within the cooperative but more especially has resulted in, and was meant to result in, the division of the working class in the local area and within the Basque country more generally.

The argument has already been referred to but it is made up of several components.  The first is that the cooperative has imposed middle-class values on workers by making them, in effect, small property owners.  In this they faithfully reflect the motives and views of the original sponsor of the cooperative in Mondragon, Catholic priest José Mariá Arizmendiarrieta, who was heavily influenced by Catholic social teaching and who sought to ameliorate class struggle through education and co-operativism.  Hence the significance noted in the first post of relatively more co-operators viewing themselves as middle class than workers in a private sector firm.

This fed into the views of Basque nationalism, particularly the bourgeois PNV (Partido Nacionalista Vasco) but also the radical nationalism of ETA, which, like the Irish versions of bourgeois and petty-bourgeois nationalism, liked to look on the Basque people as inherently egalitarian and predisposed to small property ownership which united the nation against the outside enemy, harking back to an original society free of class contradictions that preceded foreign rule.  For the radical nationalists the cooperative could simultaneously be supported by emphasising Basque unity and workers participation, so demonstrating the compatibility of nationalism and socialism while opposing any role for foreign multinationals.

The cooperative was thus a conscious political instrument to divide the working class, which was traditionally militant and socialist.  This division is also exhibited in resentment by some workers in Mondragon expressed in remarks that ‘los cooperativistas’ “have it easy”.

A third element of the argument is that it is no coincidence that the cooperative was set up under the fascist regime of General Franco since both co-operativism and fascism share a desire to negate class struggle.  Cooperatives were also supported by Mussolini and the Mondragon cooperative came into existence only because more militant forms of working class action were illegal and repressed.

The author of the book refers to the first criticisms of Mondragon by ETA which accused the Mondragon cooperative of dividing the local working class between co-operators and the rest because the cooperative workers did not want to engage in strikes with their fellow workers.

What is to be made of these arguments?

The argument that the cooperative workers have bought into the illusion that they are middle class is not strongly supported by the evidence in the book but if they did they would not be alone because such identification is not uncommon amongst many better off sections of the working class.  That through the cooperative, through their ownership of the firm, there is some basis for such a view is reflected in the quote from Marx above, that the workers make themselves their own capitalist.  However, this has not prevented workers expressing solidarity with their fellow workers or being sensitive to inequality within the workplace. Objectively their position is a transitional transcendence of capitalism but a very partial one, the more partial the more isolated it is, and cannot provide on its own guaranteed grounds for the development of socialist class consciousness.

This needs to be fought for by a working class party.  The class struggle is not abolished by cooperatives but is a means to pursue it and a battle ground on which to wage it.  The question is whether this battle involves growth and development of the cooperative form or not?  The answer for Marx was clear:

“. . . however excellent in principle and however useful in practice, co-operative labour, if kept within the narrow circle of the casual efforts of private workmen, will never be able to arrest the growth in geometrical progression of monopoly, to free the masses, nor even to perceptibly lighten the burden of their miseries. . . To save the industrious masses, co-operative labour ought to be developed to national dimensions, and, consequently, to be fostered by national means.”

That the Mondragon cooperative was sponsored by a Catholic priest should no more be a reason for condemning it than should the Bolsheviks have condemned the demonstration led by the Russian Orthodox priest Father Gapon, which sparked the revolution in Russia in 1905.

That cooperatives have existed under fascist regimes does not demonstrate that they are essentially instruments of fascism any more than it demonstrates that fascism is the essential expression of cooperatives.  In Italy Mussolini’s fascist thugs terrorised and burnt cooperatives before making them subordinate to the fascist regime.  In Spain the dictatorship of Franco could allow isolated cooperatives to the extent that they did not follow the path, recommended by Max to the First International above, that they expand and combine to develop nationally and indeed internationally.

The example of fascist sponsorship or acquiescence is but the most extreme warning to workers that the potential for their independent initiative should not be compromised by seeking the sponsorship of the capitalist state, no matter how democratic its form.  The revolutionary content of workers cooperatives, whatever its workers might believe at any particular point in time, is that they represent the independent actions of a class that is taking measures that undermines one pillar of existing society, which is the monopoly of the means of production in the hands of a separate class of capitalists.

The need to expand is not limited to national growth but is practical demonstration that workers ownership can only succeed internationally.  So far from supporting any form of nationalism it is practical vindication of the need for workers to reject national solutions, and not just at some future point in time but now.  Workers’ ownership should be extended internationally not tied to some view that workers are part of a purely national development of a specific country and its particular state, especially when this state is inevitably a capitalist one.  Workers of different nationalities united by ownership of the one enterprise with different workplaces in different countries would be powerful demonstration of unity of interest and practical international solidarity.

The first criticisms of ETA reflect a common view on the Left, which appears to be endorsed by the author of the book, which is that the struggle of trade unions against employers is a better model of class struggle than the development of workers’ cooperatives.  Hence the criticism that the cooperative workers often did not go on strike, even though the author quotes a local militant expressing the view that this is perfectly understandable.

Who would they be striking against?  If the purpose is not to influence or pressurise their employer, which is themselves, then it would be part of a movement to demonstrate support for particular demands and the strength of feeling and organisation behind those demands.  In that case this is what demonstrations and meetings are for.

In themselves trade unions do not exist to undermine capitalism but to enforce its operation by acting on one side of the supply and demand of labour power which sets its price.  It enforces the laws by which capitalism regulates workers alienation from ownership of the means of production, it does not in itself threaten it.  Strikes can be seen as a simple refusal to sell labour power for a period rather than an existential threat to the wages system itself.

Would Left critics criticise strikes that demanded workers ownership of their firms?  Or would this be seen as a demand not actually to be realised but one only useful in so far as it leads more or less quickly to revolution?  In which case what would they say if some workers, but not all, actually succeeded – fuggedaboutthat and let’s start all over again?

None of these points negate the argument that trade unions might not be helpful for cooperative workers in order to assist them in both elaborating alternative plans for their coop or to protect them against the actions of management. Particular interests of workers are not guaranteed by workers ownership but we should not believe that trade unions are somehow superior forms of workers’ organisation and representation than the organs of the cooperative.

The latter will be composed of all the workers while the trade union will usually not.  Trade unions are not inherently more democratic as the current bureaucratised organisations show.  Nevertheless for particular workers or in particular circumstances they may be useful in representing the interests of some workers even against the majority.  These workers need not be more backward but could be more advanced and we should not necessarily believe such organisation is required because the unions are needed to represent workers in the same way Lenin claimed they were required as protection against their own bureaucratised state.

The book recalls a significant strike in the Mondragon cooperative in 1974 sparked by job regradings and the system for their evaluation.  The strike only lasted one day, following a walk-out by some of the workforce, but twenty-four leaders were fired pending a vote of a general assembly of the workers.  When this assembly convened the workers voted to uphold the sackings.  A campaign was launched to let them return which eventually, in 1978, led to their being readmitted.

The strike and its aftermath exposed the political assumptions behind the participants on both sides with cooperative managers claiming the strikers were anti-Basque while some of the strikers went on to join a Maoist-oriented organisation.  Some Left organisations then went on to develop left-wing critiques of cooperativism.

The messiness of such events gives a headache to those who like their politics simple, with workers on one side and bosses on the other.  Simple trade unionism seems to provide for that although simple trade unionism does not go beyond capitalism, much of it is purely sectional and some of it is even reactionary.

Despite the authors apparent approval of this model of class struggle she notes that, contrary to her overall argument, that the “most important factor influencing the local labour movement” was the Moncloa Pact between the Left parties, including the Spanish Communist Party, the trade unions syndicates and the Spanish Government.  This accepted changes to the law which reduced workers’ rights below what had been provided under the Franco dictatorship.

So trade unions are not an anti-dote to workers’ failure to make islands of socialism out of workers’ cooperatives, which can hardly be expected because they haven’t been able to do that for themselves.  The answer is not to see workers cooperatives as alternatives to class struggle but as part of it.  Once again the question is whether the answer lies in expansion of cooperatives or their rejection.

The answer for Marx was that they should be developed.  This is elaborated on in the two posts recommended by Boffy in his comment on the first of these posts on Mondragon.

On their own a cooperative can easily be a capitalist enterprise owned by its workers in which, as Marx says, the workers become their own capitalist.  What makes them a powerful weapon of transformation is their development and growth into a social and economic alternative to capitalism through cooperation between them and their living example of workers’ power.

As isolated coops they are indeed subject to the economic and political subordination of the capitalist economy and its state.  If content to be providers of jobs and income only to their members there is clearly no wider ambition.  However as a cooperative movement determined to grow and develop in other areas of production, both to secure its own future and share its benefits with others, and to provide other cooperative services such as education, health and other socials services, it inevitably poses itself as an alternative to capitalist production and the capitalist state’s provision of services.  It becomes a political alternative because its growth, as an economic sector driven by the needs of its workers and their customers and not by profit, is a real, practical and living example of an alternative economic and social system.

The development of the cooperative sector to become such a political rival and alternative is at least partly dependent on Marxists fighting for such a perspective within cooperatives and for cooperatives to propagandise their alternative.  In Marx’s remarks to the First International he praises workers’ cooperatives and calls for the workers to pursue just such a task:

(a) We acknowledge the co-operative movement as one of the transforming forces of the present society based upon class antagonism. Its great merit is to practically show, that the present pauperising, and despotic system of the subordination of labour to capital can be superseded by the republican and beneficent system of the association of free and equal producers.

(b) Restricted, however, to the dwarfish forms into which individual wages slaves can elaborate it by their private efforts, the co-operative system will never transform capitalist society. to convert social production into one large and harmonious system of free and co-operative labour, general social changes are wanted, changes of the general conditions of society, never to be realised save by the transfer of the organised forces of society, viz., the state power, from capitalists and landlords to the producers themselves.

(c) We recommend to the working men to embark in co-operative production rather than in co-operative stores. The latter touch but the surface of the present economical system, the former attacks its groundwork.

(d) We recommend to all co-operative societies to convert one part of their joint income into a fund for propagating their principles by example as well as by precept, in other words, by promoting the establishment by teaching and preaching.

Let’s see how such a perspective might address another frequent criticism of Mondragon and other cooperative enterprises.  This is that the cooperative further divides the working class through its large use of temporary contract labour, as much as one third of a particular workforce in Mondragon.  These workers are not members of the cooperative with all the rights of membership and obviously have much less job security.  In these circumstances the workers are not their own capitalist, since they do not have membership of the cooperative, and are exploited not by themselves but by others – the Mondragon cooperative.

If it was the case that these workers were indeed needlessly kept on purely temporary contracts it would be open to the most class conscious workers within the cooperative to campaign and seek a vote on their award of cooperative membership.

On the other hand let us assume that the cooperative workforce does not accept this because it views these workers as an unfortunate but necessary buffer against periodic reductions in demand for their products, such fluctuations being an inevitable feature of capitalism.  Then it would not be possible to give these workers cooperative membership because the cooperative could not guarantee their continued employment should demand for the products they make fall.  This might be despite the fact that the Mondragon and other cooperatives seek to move workers around the wider cooperative group in order to protect the employment of their members.

The second class status of the workers could lead to resentment within the wider working class and support for the view that the cooperative workers are indeed a privileged layer that is separate from the rest of the workers.

What is the answer to this problem?

The answer is not obviously to give these workers the same rights as the rest of the cooperative workers for this solves no problem.  If demand does suffer a drop or there is some other crisis in the cooperative, for example if some customer does not pay up because it has gone out of business, the cooperative can choose to keep all its workers on the payroll and then either weather the storm or as a result go out of business altogether.

If the latter is the foreseeable result of the event then keeping all the workers on is a mistake, not only for those workers who could otherwise save their job but for the cause of worker owned production in general.  The whole cooperative would cease to exist when part of it at least could be saved.  If all the workers, including temporary workers, have equal rights how is it to be decided who will lose their job?

If this problem is to be minimised the cooperative should seek to be part of a wider federation of cooperatives so that downturns in economic activity in one area can be made up by possible growth in employment in another.  The larger the cooperative movement the more scope there is to diversify risk and build up reserves to protect its members during crises.  Were this to happen then cooperative production would be seen by workers in the capitalist sector as a real progressive alternative to the insecurity of the capitalist sector in which workers jobs are more or less quickly sacrificed for the profits of the big wigs.

The answer then is not to reject cooperative production but to seek its growth.

In the meantime there are steps that could be taken to defend the rights and position of temporary workers.  The first might be to ensure adequate union organisation and representation for them within the cooperative.  The second might be for these temporary workers to form or be part of a ‘temporary workers’ cooperative themselves, which has a membership across a number of firms that might not all have to be cooperative enterprises. (Just such an idea is proposed by Boffy in the posts referred to above).

In this way the temporary workers would not have to simply rely on the actions of others but would, through their own cooperative employment agency, take some control of their employment situation including building up reserves for bad periods, providing social insurance or job seeking support, including retraining facilities.  Such a cooperative could be the sponsor of a political campaign in defence of the rights of temporary contract workers.

To return to the main argument: the promotion of cooperative production is not an alternative to class struggle but a part of it.  It is the solution to a problem that many of those who believe in socialist revolution believe does not exist.  This problem is that the majority of the working class do not see any need for their own ownership and control of production.  They not only do not see the need for it but even if they did they have no experience of it, nor any particular, in fact any, view of how it would seek to achieve its aims.

The view that running society is something that can be done more or less easily on the morrow of the revolution does not ask why workers would carry out this revolution in the first place or why they would be fit to run things after it.  What is it they would seek to do differently and how could it be done?

Instead the process of revolution, as normally argued, envisages workers rebelling against attacks on their living standards and democratic rights through some sort of politicised general strike which develops into workers councils.  These will then take over from the capitalist state.  What is missing from this is any understanding of socialist revolution as a change in the mode of production.  From one based on profit to one based on use.  From one based on capitalist ownership of the means of production to one based on workers ownership.

We are asked in this scenario to believe that the whole working class will in one fit of more or less violent rebellion against repression etc, seek and know how to implement its own ownership of production but that such strivings should not be encouraged or expressed before the revolution in the growth of workers cooperatives.

There is no need for workers to learn about how to organise production within their own factories and offices.  No need to learn how to manage trade and production between other workplaces and customers.  No need to master how the economy works the better to make changes that benefit fellow workers and fellow consumers.  No need to learn how to compile economic plans within the firm, within the wider cooperative movement and the wider economy.

No need to learn by practical experience the role of the capitalist state in protecting capitalist property against rival workers’ owned property; to learn the need to build their own structures that will defend their plans to develop production as they see fit, and no need to seek to defend their own cooperative property through the overthrow of the capitalist state.

The argument is not whether cooperative production plays a role in the move to socialism but what role that is, over what period of time such production can realistically be expected to develop and what the role is of Marxists in politically fighting for and defending the growth of workers property.

Back to part 1

Employee ownership and socialism

Posted on by
2

coop-klBeyond the Corporation: Humanity Working, David Erdal, The Bodley Head, London, 2011.

The author of this book is clearly not a Marxist and he approves of arguments for workers’ cooperatives that encapsulate ‘good, basic, capitalist thinking.’  He puts forward the view that what he is proposing is, far from being woolly and utopian, not only immensely practical but has been implemented many, many times in many, many places.  It’s sheer practicality is one of its attractions and let’s be clear – the practicality of something is an attraction.  It is a clear advantage for any option that it can actually be implemented.

Much of the Left however recoils in horror at the ideas proposed in this book.  Nevertheless the impulse and development as well as the ideological case for workers’ ownership are forceful reflections of the analysis of Marx, which posits the growing contradiction between the socialisation of production and the private appropriation of this production by capital.

Ironically the author gives an illustration of this contradiction.  He compares the electronics industry in Silicon Valley favourably to that of Boston and accounts for the relative success of the former as a result of the fluidity of the movement of people involved in the industry, lack of proprietorial authority in many of the industries’ firms  and the inability of owners and managers to contain the flow of information within individual companies; all contributing to creative development of products and production.

It is notable, he says, that there is less of a top-down culture in Silicon Valley and that employee ownership has been a major driver in business development.  Companies could not attract good people simply by cash so instead used share options, a form of ownership, to get them to come, work for them and stay in the firm.  This together with the excitement of the work itself became the greatest motivating factors for employees.

The socialisation of production is evidenced by the increasing division of labour in which thousands, if not millions, of products are separately produced across the globe in order to come together as one combined product.  The necessity for this production to take place in a balanced and proportionate way, so that the final product can be efficiently produced, requires co-ordination and planning within and across hundreds and thousands of companies.

In April two years ago the BBC reported that a fire in a factory in the small town of Marl in western Germany had killed two people and affected the production of a resin called P-12, used in car braking and fuel  systems. This threatened car production across the world so that “Earlier this week, more than 200 executives from companies including General Motors, Volkswagen, Toyota and Ford met in Michigan. -. . . The group said that it was clear that “a significant portion of the global production capacity” had been compromised.  After the meeting, the big car companies were saying nothing on the record.  But some sources now say there is a real worry that the potential impact could be serious, including a slow-down in production.”

Such cooperation is planned but insufficiently so.  The inevitable disproportions in production lead not to conscious alterations in levels of production in order to seek balance in the myriad locations but to individual crises of cash-flow or profitability in individual firms and production units, leading to crises and disruption.  Economic and production efficiency is calculated at the individual firm level without regard to the overall system of production, the cooperative system of labour, which is in place.

We saw this through the recent dispute at the Grangemouth refinery and petro-chemical works, on which much of the British chemical industry was apparently dependent.  The economic calculation that was carried out rested solely on the relative profitability of the Grangemouth plant and not on an assessment of the industry as a whole.

Both examples illustrate the contradiction between private ownership of the means of production and the increasingly socialised system of production on which it is based.

An even more dramatic illustration of this contradiction is shown by the following two graphs.  They show the falls in world trade and industrial production following the credit crunch in 2008 compared to the impact of the great Depression of 1929:

World Trade

eo fig 2 eichengreen_2ndupdate_fig1

World Industrial Production

What these show is the dramatic falls in economic activity consequent on the decisions of individual banks and financial institutions not to lend because they did not trust each other to be in a position to pay the loans back.  The huge socialisation of resources that is carried out through the credit system became a prisoner of the private ownership of these credit institutions.  Each feared that the other might be fatally insolvent due to speculation in sub-prime mortgages or old-fashioned overproduction of houses and offices as in the case of Ireland.

What has this to do with the growth of workers cooperatives?  Well, if we  understand that capitalism is characterised by the separation of workers from the ownership of the means of production (including credit) and the ownership and control of these means in a separate class, the class of capitalists, we can see that such a system can exist only by workers gaining their livelihoods by selling their capacity to work on the labour market and using the money received to purchase the means of subsistence that they have just produced (but which are owned by the capitalists for whom they work).  The sale and purchase of these two types of commodities, labour power and means of subsistence, takes place in the market and the economics profession attempts to analyse how the economy works by focusing on how these markets work – without previously understanding or analysing why there is a need for these markets in the first place.

The explanation for this is that workers do not own the means of production and therefore cannot allocate these means or the output derived from them directly, through conscious planning, to satisfy the needs and wants that they have themselves previously identified.  They do not set the priorities for what has to be produced, how and where it is to be produced or consciously regulate the effects of what they produce so that any relative over-production does not lead to a closure of workplaces but to a planned decrease in capacity and switch to other desirable production.

The creation of workers cooperatives is a step in overcoming the separation of workers from the ownership of the means of production and therefore of overcoming capitalism.

Many on the left advance fears that workers will become their own capitalists and because the author of this book is not a socialist he quotes approvingly the view that while capitalism is good at creating capital it is not good at creating capitalists. The fear is that the competition involved in the Market will lead workers, even those owning their own businesses, to compete with each other in a way that simply replicates the exploitation involved in private capitalist ownership.  The drive to produce cheapest will lower wages and increase work effort.  In effect workers will exploit themselves.

What this view does in effect is give priority to the Market in analysing capitalism in just the same way as do the mainstream economists.  What they don’t see is the potential of workers cooperatives to overcome the separation of workers from ownership of the means of production and through ending this separation threaten the monopoly of the capitalist class, in doing so undermining the existence of the market as a regulator of economic life.

This can be done through the simple expedient of individual workers’ cooperatives cooperating!  The immediate objection to workers cooperatives is that they will have to compete with each other, or at least with private capital, and while the latter may be true the former is not.  Workers cooperatives can cooperate with each other.

Will workers cooperatives still exist within a society that is capitalist?  Yes, which is why books like the one reviewed see no contradiction between capitalism as a system and workers ownership.  Will this involve competition and will this not involve unwanted and unpleasant features and decisions? Yes, but Marx explained that the new society would not be born except on the basis of the old one and not on one that we could choose.

The sometimes contradictory arguments of this book reflect this contradiction existing in real life.  No more so than the argument about how the transition to workers cooperatives can come about.  Here it is argued, obviously on the basis that there is no contradiction between cooperative production and capitalism, that the capitalists themselves should simply transform their companies into cooperatives.  ‘The powerful need a change of heart’; senior managers will have to ‘make do with a smaller proportion of the wealth’; managers will ‘certainly have to learn how to exercise their power differently’ and ‘advisors will need a change of outlook’.  The book has explained why this should happen but not why it is in the interests of these people that it should happen.

The author calls on Government to prefer cooperatives and points out that this will increase prosperity, boost tax receipts, reduce social problems, increase citizen welfare and reduce social expenditure.  This makes sense only if you think the State is there for all citizens and not just for a few.

It calls on trade union leaders to realise the importance of workers gaining ownership rights and the potential it has for higher earnings, enhancing workers’ rights to information and their power to influence company decisions.  On this score it might appear that the author is on more secure ground since trade unions claim to represent workers and their interests.  Unfortunately it is just for this reason that many do not support worker ownership since such ownership would undermine claims that they exclusively represent workers in a particular workplace.  Normally union leaders prefer state ownership because the state will often guarantee union recognition, and therefore the dues income that pays the salaries of the union officials, while it allows these same officials the ability and right to claim exclusive representation rights.

The alternative perspective of some of the Left – of a once and for all take-over of all capitalist production by a workers’ state – has its own problems.  It leaves no role for the accumulation of prior social power and experience by the working class or of the potential radicalising effect of prior widespread workers ownership.  Such ownership would allow a ready reply to the accurate critique we now hear – where is your workers’ and socialist alternative?

Through many posts we have pointed out the fact that this has disarmed workers in fighting austerity, debt bondage and workplace closures.  Keynesianism – increases in state expenditure – is usually put forward as the only alternative to austerity but it is not an alternative that belongs to the working class.  The perspective of a workers’ economy can take root as a concrete alternative, at least in part to the degree that workers already own and control production.

Instead the ideal of a revolution, that in one blow achieves the requirements of decades of class struggle and experience, slides into the view that this comprehensive creation of socialised property becomes a single task of a country wide mechanism, usually the state.  So the State which is the protector of private ownership is wrongly held up as the means of overcoming it, through nationalisation etc.

Even those who see the creation of workers’ ownership as a task only for a workers’ state do not appreciate that this workers’ state itself must be based on workers ownership of production and of society.  How else do we prevent the bureaucratic degeneration experienced after the Russian revolution or expect the state to ‘wither away’ after revolution, which is the goal of Marxists and which was proclaimed by Lenin after the revolution?

The fight for workers cooperatives is a transitional one in that it contains the seeds of future society within the old.  It therefore contains elements of the old and those of the new but to condemn it for the former while ignoring the latter is a mistake.  In the next post I will look at criticisms of the idea of workers cooperatives as a means of achieving working class liberation and socialism.

Nationalism, Sectarianism and Democracy in the North of Ireland

Posted on by
1

castledergMarxists have regarded the struggle against British rule in the North of Ireland as a legitimate one in the sense that it is a fight against an imperialist state and its political rule in a country in which it has no democratic right to exercise its powers.  This is reflected in the undemocratic partition of the country and its reliance on a colonial movement which has proven incapable of providing or allowing basic democratic rights to its neighbours of a different religion. The legitimate democratic rights of this population have never been advanced but have always been subsumed under a bigoted and triumphalist programme of support for sectarian privilege and for the most reactionary characteristics of the British State.

Imperialist rule has thus always involved promotion and pandering to the worst aspects of sectarianism.  During ‘the troubles’ this involved repeated attempts to give coherence and effectiveness to loyalist gangs who were often more interested in pure criminality than their reactionary political programme.  This included planting security services agents into the loyalist paramilitaries, arming these gangs, providing them with intelligence on targeting, facilitating their actions and preventing other arms of the police from apprehending their killers.

What has often struck commentators on loyalist violence has been its sheer frenzied brutality and savagery, a feature of extreme reactionary violence everywhere.

This year the British State has once again indulged loyalist violence – during the flags protests – and the more honest local journalists have reported the patronage by the state and politicians of the loyalist paramilitary group, the Ulster Volunteer Force, especially in East Belfast.

This organisation has gained confidence and power in Protestant working class areas through State acceptance of its nefarious activities.  Rather than attempt to completely destroy the most vicious supporters of British rule the British State has attempted to tame it and make it amenable to its own more measured policies.  The riot in July in the Woodvale area after a local Orange parade was prevented going past a Catholic area, and the riot in Belfast City Centre to prevent a Republican demonstration, show how limited the success of such a policy has been.

The claims of loyalism that it is simply defending its culture and traditions are without any merit.  Its culture is one of sectarian practices, made-up of borrowings from others and simple invention.

Attending a loyalist parade made up of bowler hated men declaring temperance and loyalty to the British monarchy, as long as it remains Protestant, led by aggressive flute bands sometimes named after sectarian killers and followed by drunken and hate filled followers will tell you most of what you need to know about the nature of Ulster unionism.

The Marxist opposition to British rule and loyalism and attendant defence of Irish nationalist claims is therefore mainly a negative one.  It is a positive one to the extent that this Irish nationalism puts forward and advances real democratic demands.

It is therefore possible to imagine (but only imagine!) a situation in which Protestant workers opposed a united Ireland because Irish nationalism wished to foist a catholic clerical regime on a genuine outpost of the British State, which was integrated into that State, was part of its on-going political development and in which this outpost of Irish workers were fully integrated into the British class struggle.  In such a situation it might be the case that the demand s of Irish nationalism would be reactionary – a call to disrupt a united working class which had overcome sectarian division and which was moving instead to a programme of independent working class politics.

To present such a scenario is to demonstrate how far reality is from the real situation and why Marxists adopt the programme for Ireland that they do. The scenario above is put forward purely to illustrate the approach which Marxist take and to distinguish it from all varieties of Irish nationalism.  Marxists are primarily concerned with the unity and independent struggle of the working class irrespective of nationality.  The programme of the socialist movement can only be successful if the disunity caused by nationalist division is overcome.

This means that there is no automatic support for the activities of Irish nationalists and republicans.  Marxists defend the democratic content of the struggle of those oppressed but this does not mean support for its expression in nationalist politics.  Marxists do indeed distinguish between the nationalism of the oppressed and the nationalism of the oppressor but that does not mean they support the former.

In the recent dispute over parading Sinn Fein has more and more shifted its political position to one of recognising that the Protestant population of the North of Ireland is British and can therefore claim rights that are equivalent, but not greater, than those of the Catholic Irish.  Marxists accept neither of these arguments – that the Protestant population is British or that even if it was its political claims therefore have to be supported.  For the loyalists their demands continue to mean the assertion of sectarian privilege.

The acceptance of the political legitimacy of unionism, defined by itself in sectarian terms, means that Sinn Fein’s own claims become judged by the same measure.  This is indeed why Sinn Fein has moved to this position.  It is the logic of the peace process, its ‘parity of esteem’, ‘reconciliation between the two traditions’, mutual understanding, respect and equality of rights and all the other honeyed phrases behind which lie behind poisonous sectarianism.

The logic of the political settlement in the North is sectarian competition where once it was purely sectarian domination and Sinn Fein has bought into this.  Thus it declares its interests in the concepts appropriate to this sectarian competition.

The statement by it on the recent IRA commemoration in Castlederg shows all this. The local Sinn Fein councillor said –

‘This parade is organised to show respect for those who gave their lives for this community. It should never have been an issue of controversy- it has been ‘made’ controversial by unionist politicians. We have proposed this initiative to take the controversy out of it while reducing tension.

“Our initiative will consist of choosing to go along John Street which avoids passing the cenotaph and the Methodist church.

“On the back of this initiative, we wish to engage with all key stakeholders in relation to the issue of the town center being designated as a shared space for all traditions, in this mainly nationalist town.

“There has been around 20 unionist parades through the town centre in 2013 so far without objection, we understand and accept peoples Britishness- others need to understand and accept our Irishness.”

So the IRA fought for Catholic freedom not Irish freedom unless Sinn Fein now equates the latter with the former, which appears to be the case.  At the same time it now recognises the legitimacy of the claims of Irish Protestants to be British so there appears no reason why one sectarian groups’ claims should have priority over the other.

What we have is endless competition with no reason to judge any particular outcome fair or appropriate, except that it exists and it exist only as a result of struggle between the groups, presided over by the British State.

What this means is that where the civil rights struggle once demanded an end to sectarian domination, essentially discrimination against Catholics by unionism, now the necessary democratic struggle would appear to be against sectarian competition, essentially discrimination by unionists against Catholics and nationalists against Protestants.

Sectarian competition is however unstable.  Unionism wants sectarian privilege while Sinn Fein claims it wants equality but it has demonstrated that it seeks equality not through unity, which is the only way it could exist or be brought about, but through sectarian claims on behalf of Catholics, because they are Catholics and because they are claiming Catholic rights.

It is now lost on a whole generation that the demands for civil rights and equality were demands for democratic rights irrespective of religious beliefs not because of them.  It is lost on this generation that claiming Catholic rights is not the same as claiming civil rights.

The civil rights’ demand for equality required unity because civil rights were disconnected from religious belief.   Now rights are claimed by virtue of religion.  Equality now means the equality of resources to sectarian groups, which can only be achieved by ensuring the continued existence and political priority of these groups.  Demands are made that those not designating themselves in sectarian terms must do so or someone must label them on their behalf.  In other words equality now requires sectarianism.

If sectarian domination was unstable this sectarian competition is even more so.  The current political situation is unstable because not only is it impossible to have stable agreement on the equitable sharing of sectarian rights but such equality does not yet exist.

Despite decades of Sinn Fein ‘leadership’ in West Belfast the social and economic problems of the constituency are among the worst.  Unemployment among Catholics is still worse than among Protestants.  Thousands of Orange parades still proclaim their sectarian superiority except everyone is now called upon to be tolerant, seek reconciliation with the participants and show non-sectarianism by accepting the displays of bigotry.

In such an Orwellian world sectarianism is to be eradicated by support for sectarianism.  And then we are to be amazed how on earth the problem hasn’t disappeared and often appears to be getting worse.

To be continued.

A new Left electoral campaign in Limerick

Posted on by
1

600802_517707581597926_1373887597_n

The Revolutionary Programme web site altered me recently to the latest electoral initiative of the Left – here.  The programme of this initiative is the following:

  • No to the Property, Water & Septic Tank Taxes – No to Deduction at Source.
  • No to all Austerity – ordinary people have paid enough.
  • For a united movement of ordinary people affected by home taxes and austerity – no to divisions based on race or nationality.
  • Tax the Wealthy as the alternative to austerity: For progressive taxation on the wealthy and corporate sector.
  • End the bailouts of banks and bondholders, instead use the money to create real jobs through a programme of necessary public works.
  • Our candidates if elected would:
    Fight against plans for Water Metering, Water Taxes and Water Privatisation.
    Oppose all cuts in council services or erosion of workers conditions.
    Make no deals on the Council with the austerity Parties (FF, FG, LP).
    Oppose the gravy train – no participation in junkets. Demand local planning for the community, not for developers or vested interests.

What attitude should Marxists take to this electoral initiative?

Just like every other party standing in an election it must surely be judged by what it says – by its professed programme or set of policies, providing of course these are also what it truly represents.

Can and should it be supported?

The electoral slate is clearly not a party and was organised by the Campaign Against Property Tax and Austerity but the logic of standing in an election is to act like a party and even more so if elected.  The failure of the Unite Left Alliance to do so has led to its demise.

The policies above are no way different from that of the ULA, except more limited.  The Left has argued over the last number of years that elections and those elected are there to advance ‘real’ struggles outside of parliament and council chambers.  The last few years have demonstrated conclusively however that it is the other way round – struggles in communities and estates have been means to advance electoral ambitions.  Electoralism is a dirty word on the Left but nothing would appear to describe the method of organising so accurately.

This initiative, the promised first of many, must be judged firstly on its own terms.

The short summary of its aims says it is against austerity and the various taxes that have made up a large part of this agenda.  The anti-property tax has failed so it will have to be explained how standing in elections will bring success.  Otherwise voters are being asked to vote for good intentions.  Councils can clearly not change the policy of central government so how will the taxes and austerity more generally be blocked and reversed?  No concrete and practical way forward is put forward.  Maybe it will be, but if it isn’t then it is purely propaganda.

If the reason for standing is to build the campaign this should be the main point of the programme but even here it should be explained how the campaign will achieve its aims.  Is, or rather was, a mass boycott a road forward given deduction at source?  If not what is the alternative – a mass political campaign aimed at persuading tax workers to refuse implementation of the tax?

What role is there for councils?  Are enough candidates standing to win a majority?  If so what would they do with such a majority?  Can they unite with other similarly minded councils to campaign against the tax?  What powers do councils have to frustrate or prevent this tax or austerity?  Will the new council promote workers control or ownership of council services?  What other steps will it take to promote the democratisation of local government?

If there is no possibility of winning a majority then what role would those elected take?  Will they release all information currently withheld on council activities?  How will they frustrate the local implementation of austerity?

If these questions aren’t put to the fore then, as I’ve said, what we are seeing is purely propaganda.  This does not mean that this aspect should be underestimated.  Even in periods of limited struggle, in fact particularly in such periods, the task of socialists is to try to educate as many workers as possible through propaganda.  Given the very small size of the socialist movement in Ireland this is by far and away its biggest task.  If it doesn’t get this right then the majority of what it is capable of doing is wasted if not positively harmful.

The thrust of the programme appears to be anti-austerity with the alternative being taxation of the wealthy – “for progressive taxation on the wealthy and corporate sector.”  It is also proposed to “End the bailouts of banks and bondholders, instead use the money to create real jobs through a programme of necessary public works.”

I have shown what is wrong with the idea you can tax the wealthy here and here so I won’t repeat my arguments again in this post.  The main problem is that it is not the wealth or high incomes of the rich that are the cause of austerity so even if it were possible to tax both effectively the cause of austerity would persist.  This cause is the economic crisis.  Because the economic system is a capitalist one the elementary task of a manifesto would be to state this and explain it.  Explain exactly how the way the capitalist system works has given rise to this crisis and will create more in future. This would be necessary in order to argue that the alternative to austerity from a working class point of view is socialism.  Explaining what this is would involve is an obvious next step – expropriation of capitalist ownership and workers ownership in its place and a workers’ state in place of the existing state.

Complaining that the programme does not mention socialism is not the problem since the programme is not a socialist one.  If this is the way it is then it is better that it does not claim to be socialist.

The programme proposes ending the bailouts of banks but does not explain how this might be done, the consequences or the alternatives.  Some of these issues are touched upon here, here and here.  How is the debt to be repudiated?  What debt is to be repudiated? How would credit be provided if the banks were allowed to fail?

Anyone who begins to think seriously about what “ending the bailouts” means will have these questions in their head and without an answer they will be open to accepting right wing claims that such proposals are not thought through , cannot be implemented or would be even more disastrous than what we already have.  Dealing with such claims is the important task of propaganda and at this point in time elections are useful means of getting across the message.

In the absence of all this the message put across is a radical Keynesian one, that is a capitalist one.  One that is temporarily more beneficial to working people but one, if followed,that would lead to inflation, wage cuts, unemployment, and calls for reducing budget deficits and tax increases later on.  That’s if it worked in the meantime!

From a political point of view therefore the programme does not assert separate working class politics but, in so far as it puts forward an alternative, puts forward the benign actions of the capitalist state as the solution.  It therefore doesn’t even get to first base in terms of a socialist alternative.  It may therefore be reformist but it isn’t working class reformism because it seems to rely solely on pressurising the state.

In terms of the reformist/revolutionary dichotomy it isn’t even the former since it lacks the courage of its convictions and fails to propose a Left Government for the Dail that could tax the rich and the corporations; burn the bondholders and use the money to create jobs in the public (read – capitalist state) sector.

A socialist programme would explain that fighting austerity is required to defend our living conditions but that this will ultimately fail unless the system is replaced.  Austerity can at best be ameliorated but such is the depth of the crisis it cannot be entirely halted and reversed under the present economic system.

Some will deny this and claim that austerity can be ended without changing the system; that the rich can be made to pay for their crisis and that policies of growth will ensure that this can happen.

On the other side will be those who will claim that austerity is an inevitable result of an economic crisis, which is caused by the capitalist system in its attempts to produce and accumulate capital beyond the conditions that allow it reproduce itself harmoniously.  The excessive expansion of credit is always a feature of capitalist crisis and the bigger the boom the bigger the bust, unless even more credit is injected into the economy in which case the bigger the boom  . . . No amount of regulation or honest government can prevent this without seriously gumming up the capitalist system, in which case you simply have a different sort of crisis with very much the same symptoms of unemployment etc.

On the first side of this debate will be the liberal defenders of Keynes, including their economists and leaders of the trade unions.  On the second, socialists, who can only consistently defend their ideas by understanding and presenting the arguments of Karl Marx, which is the reason Marx wrote ‘Capital’.

A recent post on the Michael Roberts blog has a couple of interesting points to make about these arguments.

He points to research showing that inequality of income reduced between 1910 and 1950 across the OECD (most advanced) countries, which calls into question the idea that capitalist crisis is a result of inequality that progressive taxation could cure.  This period, after all, covers the great depression of the 1930s.

He points to other research that:

“Credit booms mostly lead to financial crises, but inequality does not necessarily lead to credit booms. “Our paper looks for empirical evidence for the recent Kumhof/Rancière hypothesis attributing the US subprime mortgage crisis to rising inequality, redistributive government housing policy and a credit boom. Using data from a panel of 14 countries for over 120 years, we find strong evidence linking credit booms to banking crises, but no evidence that rising income concentration was a significant determinant of credit booms. Narrative evidence on the US experience in the 1920s, and that of other countries, casts further doubt on the role of rising inequality.“

The problem with left solutions that highlight (sometimes more or less exclusively) inequality of income and wealth is that their solutions do nothing to tackle the origin and cause of this inequality.  The Michael Roberts blog points out that “in 2011, capital income constituted 60% of the top earner’s income compared to just 32% in the 1980s.”

The origin and cause is capitalist ownership of the means of production, including its purchase of labour power, its ownership of capital and the money and power this involves.  It is the relations of production in which workers have to sell their ability to work to a class of owners of the means of production that produces the gross inequalities in society.  Redistributing what is already produced, even were it possible, would not overturn this power relationship or the exploitation and oppression involved because it does not get to the heart of the matter.

In a country where little or nothing of this is understood the elementary task of socialists is to explain this to as wide a number of workers as possible and elections should be taken as an opportunity to do so.

So we are back to our question – should this electoral initiative be supported?

To the extent it has been judged as a more or less adequate immediate guide to action or corresponds to the  educational  needs of the working class the verdict would appear to be no.

Perhaps unity could not be agreed between the participants on any other basis and what we see is a campaign standing in an election not a party.  But was any other basis proposed or offered?  Was any discussed or do the participants see no problem in the platform of a campaign being adequate to a programme for an election?

It might truthfully be said that the low level of the programme reflects the low level of Irish workers’ class consciousness but this is not a way out of objections to it, for there is nothing in it to advance Irish workers’ understanding of the cause of the austerity they face or the great changes that are required to defeat it and establish a new society.

The only conditions upon which it would be possible to support this initiative is if it went further in arguing the socialist case or if it raised the prospect of invigorating a section of workers into activity, in which case through this activity they may learn about the roots of their predicament and themselves go beyond the timidity of the anti-austerity campaign.  To do the latter they may have to go beyond the existing Left groups who save what they think is socialism for potential recruits while the broader class of workers they address in electoral material, the purported agent of revolution, are fed re-heated capitalist reforms.

Workers’ control of production Part 2

Posted on by
Reply

0425.1974_Portugal-newspapeIn my last post on workers’ control I noted that it inevitably arose as a result of crisis, and crises are by their nature temporary, occasioned by society-wide political upheavals or by threatened closure of a particular workplace that is perhaps producing unnecessary products, is working in an obsolete manner or is otherwise failing to compete successfully in the capitalist market.

In Britain in the 1970s there were more than 260 occupations of workplaces by their work forces including, perhaps most famously, at Upper Clyde Shipbuilders in Glasgow, usually sparked off by closures, layoffs, redundancies, dismissals or threats of closure.  Such occupations were spontaneous, often acts of desperation and with no real planning.  If successful, the numbers occupying would be offered jobs by a new employer although this number would usually be less than when the occupation would have begun.  When no new owners would appear the occupations might attempt to become workers’ cooperatives but the motivation was normally a pragmatic search for a solution rather than something drawn from political commitment and ideology.

The occupations were often built by shop stewards and sometimes at odds with the official trade union movement, a situation we see again and again and a result of factors far from accidental.

The theme of ‘industrial democracy’ was very much alive and in 1974 the Conservative Government called a general election on the issue of “who governs Britain”, in direct reference to the miners who had engaged in successful strike action.  The Tories lost and the new Labour Party Government included Tony Benn, who wanted greater involvement of workers in their workplaces.  He also came into conflict with trade union leaders who opposed his dealings with rank and file groups of workers.  “The whole machine is against you” Benn told one supporter of an occupation at Imperial Typewriters.

Workers’ cooperatives received the support of Benn, who was in a position to do something as Minister at the Department of Industry, but his financial help was relatively small and most industrial aid continued to go towards private industry.  That which did go to the cooperatives was mainly for compensation to previous owners who were paid for obsolete plant.  This left the new cooperatives under-capitalised and without the necessary resources to carry out research and development.  They generally lasted only a short space of time but still sometimes produced radical, innovative and still exemplary struggles.  One such was as at Lucas Aerospace, where workers pioneered conversion plans to socially useful production, again opposed by the union leadership.

By the end of the decade however these types of struggles had declined dramatically.  Few of the experiments in workers’ ownership survived and as history is usually written by the winner the victory of Thatcher, built on the attacks on workers commenced by Labour, left a legacy of disappointment and nostalgia in some old enough to remember.  This has affected the Left up to today in so far as it is suspicious, if not actually hostile, to workers’ cooperatives.  This is a profound mistake as the willingness of workers to fight for ownership and control of their own workplaces is an instinctive impulse to go beyond capitalism.

The history of American workers organisation in the 1930s is perhaps more celebrated than this experience but in some ways was more limited.  Workers and trade union power grew during the decade not just because of the struggle of workers to organise, most famously in Minneapolis, but because of the strong growth of US manufacturing industry.  Between 1936 and 1939 workers occupied 583plants in sit-down strikes in defence of their terms and conditions, protection of wages, achievement of union recognition, or prevention of sell-outs where recognition already existed. These were often successful.

Unfortunately there followed 70 years of union-management collaboration – no strike agreements during the second world war; the witch hunt and expulsion of socialist activists in the McCarthy period; mob penetration of the union movement and the turning of the union bureaucracy into a world-wide vehicle of the US state in its cold war with the Soviet Union.  The US union movement has now declined so much that in most of the private sector it is irrelevant, with unionisation accounting for only 7.5 per cent in the private sector in 2008.  In some workplaces where unions do ‘organise’ workers are not even aware there is a union!

The history of American workers’ militancy drives home a lesson to be  learnt from the British experience of the 1970s and 1980s – that politics are not only determined by workers militancy and their experiments with workers control but that politics can influence decisively the short and long-term success of these experiments.

In the end the question of politics is crucial, which is why Marxists believe that working class conquest of state power – revolution – is decisive.  It is important however not to telescope the path to this destination.  Revolution is decisive only if the material basis for working class rule is present.  This is not simply a question of the level of economic development but of the social and political development of the working class.  Without both of these the question of revolution is not posed practically i.e. in reality, no matter what more general ‘crisis of capitalism’ is evident.

The analysis of workers’ control in these posts is based on the belief that working class conquest of state power is necessary but that the immediate question is how to make that a widely shared goal given the low level of class consciousness and struggle than now pertains.

It is therefore important to attempt to draw lessons from the impact of political developments on workers attempts at independent organisation in the workplace.  In turn we can then look at the role of workers’ organisation in the workplace for its impact on wider political struggle.  This will reveal the limits as well as the strengths of a workplace-based strategy and what political demands should be raised as a result.  Such lessons informs the opposition to calls for nationalisation that have been argued in many earlier posts.

For example in the Spanish revolution in the 1930s it was the Republican state that strangled the workers’ and peasants’ collectives rather than the fascist counterrevolution.  Clearly in this case a call for this government to nationalise such collectives would not have made much sense.  Anarchists believed these collectives were a means of controlling the Republican authorities but clearly what was needed was an alternative Government and state – perhaps built on these bodies.

In Yugoslavia self-management was a means of mobilising the population against economic blockade and potential invasion, boosting production, minimising the power of the trade unions during a labour shortage and hoping that the workers would discipline themselves.  Unfortunately self-management as then practised led to accusations of workers’ neo-capitalism in which the enterprises were seen as the workers property, narrowly conceived, so that they competed with each other in a capitalist-like manner.  Self-management became not a means of workers self-realisation but a trade union-like bargaining system of clientelism and patronage.  Increased enterprise autonomy acted to dissolve wider working class solidarity leaving enterprise loyalty and territorial state loyalty as the alternative, one which ultimately descended into bitter and bloody nationalist war.  On the way to this dénouement it has been argued that enterprise autonomy became a mechanism to insert the Yugoslav economy directly into the capitalist world market.  Increased autonomy became the means of strengthening management power not workers’ autonomy.

Both Spain and Yugoslavia are testament to the fact that without real working class political and state power workers’ control can be subverted and/or crushed.  I have argued that it is the lack of workers’ economic power and experience before revolutionary crises that has weakened the struggle for their class rule thus making revolutionary success less likely in such crises.  But it is also true that such episodic economic power is doomed without a political project.  In Poland workers councils existed in 1945, 1956, 1970 and 1980-81 but revolution there became a restoration of capitalism.

In nationalist revolutions, such as in Indonesia, the most radical actions of workers are betrayed by a backward political consciousness; as when workers control is achieved and defended not as an extension of workers’ power as a class but as the property and achievement of the new independent (still capitalist) state.  This state can indulge in the wildest revolutionary rhetoric but as long as its power is not an extension of that of the workers it is just rhetoric, to be retracted when the new state feels itself more in control.  It succeeds in this as long as workers power is mistakenly seen by its holders as the gift of the newly independent state.  The examples of nationalism trumping the radical actions of workers are legion and proof again that revolutionary action does not automatically generate revolutionary socialist politics and consciousness.

What is clearly decisive is workers’ own consciousness and workers control, self-management or councils are not in themselves decisive in determining it.  This however is not the question and not the argument being put.  There is no ‘magic’ strategy guaranteeing a workers’ victory but there are more or less adequate roads and strategic conceptions.

The argument here is that workers’ control, and in the longer term, workers’ ownership can provide a more solid, permanent and robust material basis for the development of the necessary socialist consciousness than simple trade unionism, no matter how militant.  More realistic than reliance on spontaneous political revolutions to do all the work of consciousness raising in the necessarily short space of time in which they take place and certainly more than demands for nationalisation, which for example were obviously meaningless in both Yugoslavia and Poland.

What workers ownership should do is provide a basis and foundation for a political programme that seeks to extend and deepen this form of ownership and give it a political dimension, to make easier removal of the division between the political and the economic that characterises capitalism.  Workers’ collective control and ownership of the state can be more easily argued for on the basis of their wider ownership in the economy.

The argument is more easily advanced if there exists a successful worker owned and controlled sector of the economy that can be presented as an alternative to the capitalist owned sector or the illusion that a benevolent state can take ownership of the latter in order to benefit workers.  On this basis the socialist project can become a political one for which the ideal form to advance it is a mass workers’ party.  Such a project can begin to win the battle for hegemony within societies which are currently dominated by capitalist ideas despite the objective failures of that system.  A real material basis for an alternative is provided that can focus generalised discontent that now expresses itself in free-floating ethical concerns for justice and can find no more specific or concrete alternative than vague calls that ‘another world is possible.’  Instead through development of workers’ cooperatives and the wider labour movement another world is built in front of our eyes.

The absence of such hegemony of ideas, and its corollary – that no alternative to the capitalist system seems possible – results in the upheavals that returned societies to capitalism in Eastern Europe and the Soviet Union.  This wider and deeper lack of legitimacy of the socialist project weighs heavily on the spontaneous activity of workers even when they have engaged in the most radical activity.

In the Portuguese revolution in 1974 a movement within the army overthrew the dictatorship and between May and October of that year 4,000 workers’ commissions were established following mass meetings.  Not only factories but empty houses and apartments were occupied.

Within these commissions political competition developed between the Portuguese Communist Party and smaller revolutionary currents.  A failed right wing coup shifted events further to the Left.  Workers councils became not just organs of control in the workplace but organisations of struggle that could potentially threaten the power of the capitalist state.

In the end however they proved too weak and were unable to pose a political alternative to the quickly developing normal organisations of capitalist democracy – trade unions, political parties, parliament and the state.  In the end the Portuguese Socialist Party became the mechanism for a stabilisation of capitalist rule and bourgeois democracy.

Short-lived experiments in workers control and ownership were not in themselves capable of establishing hegemony for the project of workers’ state power.  A deeper and wider radicalisation was required.

The point is that this can take time and can only come about through the development of socialist consciousness in the working class over a more or less extended period and this must rest on a material base.  This can only be the development of the power of the workers in existing capitalist society, expressed in democratic trade unions, political parties, cultural organisations and workers cooperatives.

The opposite of this road is reliance on the state, expressed in the demand for nationalisation.  In Spain, Eastern Europe, Indonesia and Portugal it was the State which became the guarantor of capitalist ownership and power.

Today we are in circumstances where workers must not only defend themselves against the depredations of capitalism – battling against austerity – but socialists must also look to ways in which to advance a workers consciousness that seeks permanent expression of their needs and powers.  Not just defending immediate interests but looking and taking care of the future of the movement and workers’ position in society.

But it is not simply about the needs of the present as against the needs of the future because Marxism is the belief, confirmed by nearly two centuries of industrial capitalism, that it is not possible to satisfy the needs of workers today by only fighting today’s battles.  A socialist society is the future only because it is the answer to the challe-nges and problems of the present.  The demands for workers control and ownership express this view and are rejection of the clam that the existing capitalist state, by nationalisation etc, can provide the answer.

Workers’ control of production

Posted on by
1

rr06[1]In my review of the programme put forward by the left in Ireland, generally no different from other countries across Europe and further afield, I have argued that while it may be better for workers than the current austerity policies it is not socialist.  By this I mean that it does not involve a class alternative, an alternative to capitalism, one that involves ownership of the means of production moving to the working class.

Only in one area is this not the case: the Left’s occasional demand for workers’ control.  Even in these cases I have argued that the proposals are not put forward within any real practical perspective but put forward in such a way that they must assume a near revolutionary situation.  Demands for widespread workers’ control are only a practical proposition in such circumstances.

In current conditions demands for workers’ control simply demonstrate a lack of seriousness by those proposing them.  In the article by Trotsky previously quoted, he states that “before this highly responsible fighting slogan is raised, the situation must be read well and the ground prepared. We must begin from below, from the factory, from the workshop.”

This is to be done by revolutionaries gauging the moods of other workers – “to what extent they would be ready to accept the demand to abrogate business secrecy and to establish workers’ control of production. . . . Only in the course of this preparatory work, that is the degree of success, can (we) show at what moment the party can pass over from propaganda to further agitation and to direct practical action under the slogan of workers’ control.”

“It is a question in the first period of propaganda for the correct principled way of putting the question and at the same time of the study of the concrete conditions of the struggle for workers’ control.”

One small means of doing this recently was, when the banking crisis erupted, members of Socialist Democracy leafleted bank workers in Dublin asking them to let other workers know what was going on in the banks through leaking internal emails etc.  This small step abrogating business secrecy is a first step to workers’ control.  The poor response showed that the preparatory work described by Trotsky had yet to begin.

In this post I want to look at what is meant by workers’ control and how this is a result of the working class’s historical experience of this means of struggle.  The experience shows that it inevitably arises as a result of a crisis, and crises are by their nature temporary, occasioned by a society-wide political crisis or by the threatened closure of a particular factory that is producing unnecessary products, is working in an obsolete manner or is otherwise failing to compete successfully in the capitalist market.

How to institutionalise such control in periods of relative calm is a central problem we will look at in future. Relying on temporary crises to quickly provide workers with answers to the problems posed by their taking control has not resulted in success.  Revolutions of themselves do not give all the answers to the problems posed by revolution, at least not unless they are prepared for and prepared for well.  Since revolution is the task of workers themselves we are talking about how they can be prepared to take on the tasks of control.  Such preparation involves convincing at least some of them them that they should want to control or manage their own places of work as well as how they might be able to do so.  Only in this way can the superiority of worker owned and managed production be demonstrated.

The historical understanding of what workers’ control means derives mainly from the experience of the Russian revolution in 1917; the only successful workers led revolution.  Yet the goal of this revolution was initially a democratic republic, not a workers’ state, with the result that only a ‘transitional’ social and economic programme was on the agenda.  A decision to seize power by the Bolshevik Party could not change the level of economic and social development in itself.  We can see from an earlier post that this informed Lenin’s view that the immediate economic programme was one more akin to state capitalism than complete working class ownership and  power over the economy.

This is decisive in understanding the development of the revolution.  The workers could seize state power in order to stop the war, support distribution of land to the peasantry and attempt to put some organisation on production but workers could not by an act of will develop the Russian economy under  their own control and management, at least not outside of a successful international revolution, and this never came.

Workers’ control in such a situation did not, and at least initially could not, equate to complete management.  In Russian ‘kontrol’ means oversight; a “very timid and modest” socialism, as the left Menshevik Sukhanov put it.  The Bolsheviks understood that workers’ control was not socialism but a transitional measure towards it.  Capitalists would and did continue to manage their enterprises.  (The historian E H Carr reported that in some towns workers who had driven out their bosses were forced to seek their return.)

This approach was supported by the factory committees created by the workers during the revolution.  These committees initially hardly went beyond militant trade unionism but did not accept management prerogatives as inevitable and, as the bosses increasingly sabotaged production, they increased their interventions to take more radical measures of control.

The workers nevertheless saw the solution to their problems as soviet power and state regulation, evidence by their acceptance of a purely consultative voice in state-owned (as opposed to privately owned)enterprises.  This reflected the worker’s weakness, expressed by one shipyard worker on the eve of the October revolution at a factory committee conference: “often the factory committees turn out to be helpless . . . Only a reorganisation of state power can make it possible to develop our activity.”  Thus much of the activity of the factory committees was attempting to find fuel, raw materials and money simply to keep factories going and real management was sometimes consciously avoided.

Trade union leaders criticised the factory committees for only looking after the interests of their own plants and for not being independent of the capitalists who owned them. The workers in the committees were themselves keenly aware of being compromised by the capitalist owners, of being given responsibility without effective power.

While the revolution was supposed to have a transitional character in economic terms, workers were faced with greater and greater sabotage and recognised that the worsening crisis required a solution that could only come from the state, which would provide the centralised control that would combat economic dislocation. The weakness of the workers themselves can be quantified by the decline in their number.  In 1917 the industrial workforce in Petrograd was 406,312 but fell to 339,641 by the start of 1918 and only 143,915 by May of that year.

Although more active forms of workers’ control were sanctioned after the revolution, it had been increasing anyway, the steps towards the central state regulation that had been championed were constrained by the lack of an “organised technical apparatus, corresponding to the interests of the proletariat”, as the resolution unanimously adopted by the January 1918 Factory Committee conference put it.  Nevertheless the conference called for the immediate nationalisation of factories in a good physical and financial situation.

The economic situation however was desperate as the new state faced immediate armed attack.  The Factory Committee conference noted that: “Every one of us knows that our industrial life is coming to a standstill and that the moment is fast approaching when it will die.  We are now living through its death spasms.  Here the question of control is no longer relevant. You can control only when you have something to control.”

Widespread nationalisation was introduced but it was viewed as a necessity compelled by circumstances, not a positive choice and not one driven by socialist ideology.  Alongside this nationalisation was increasing centralisation of economic decision making, which was imposed on the factories.

But of course if the workers were unable to run the factories how could they run the state?  Complaining that the factory committees were ignoring everything but their own local interests and themselves disorganising production one section of the state’s economic organisation stated that reorganisation would not happen “without a struggle of the worker’s government against the workers’ organisations.”

All these quotes are taken from the article by David Mandel in the collection of articles on workers’ control in the book ‘Ours to Master and to Own: Workers control from the Commune to the Present.’  In this he states that the contradiction between planning and workers self-management can be resolved if there are conditions allowing for significant limitations on central control and these conditions also provide workers with security and a decent standard of living.  Both, he says, were absent in Russia.  More important for the argument here is his view that there must be a working class capable of defending self-management.

This too did not exist in Russia and our very brief review shows this.  The Bolsheviks were acutely aware of the low cultural development of Russian workers, evidenced through their lack of education, high levels of illiteracy, lack of technical skills and lack of experience in the tasks of economic administration and management.  That their numbers declined dramatically, not least because of the demands of the Red Army, leaves no grounds for surprise that this experiment in workers’ control did not prove successful.

The limited character of the initial steps in control and the awareness workers had of their lack of skills were revealed in their calls for the state to reorganise production.  While certain centralised controls over the economy are a necessity, and this is doubly so in order to destroy the power of the ruling classes, the socialist revolution is not about workers looking to any separate body of people to complete tasks that it must carry out.

If workers could not control production they could not be expected to control state power.  This was to turn out to be the experience of the revolution and in its destruction by Stalinism the state turned into the ideal personification of socialism.

This identification of socialism with the state in the minds of millions of workers across the world continues, a product of Stalinism and of social democracy but gleefully seized on by the right.  Since the state is organised on a national basis this also entailed socialism’s corruption by nationalism.

The path required to developing and deepening a genuine workers’ revolution lay not in seeking salvation in the state but in workers creation of this state themselves out of their own activity in the factory committees and soviets.  The coordination, centralisation and extension of the functions of these bodies would ideally have been the means to build a new state power that could destroy and replace the old.  It would also have been the organisation that would have combatted economic dislocation and provided the means for cooperative planning of production and trade with the independent peasantry.

In this sense the Russian revolution is not a model for today.  While workers control came to the fore in this revolution its limitations must be recognised and a way looked to that would overcome them in future.

It might be argued that the backward cultural level of the Russian working class, while acknowledging its high class consciousness, is not a problem today.  After all the working class in Ireland, Britain and further afield is literate, educated and with a large number educated to third level education.  The working class is the vast majority of society, which it was not in Russia in 1917.  Many workers are now highly skilled albeit specialised.  This however is a one sided way of looking at things. 

Firstly on the technical side the very specialisation that makes some workers skilled reflects an increased division of labour that in so far as it is deep, widespread and reflected also in a division of social roles militates against the widespread accumulation of the skills and experience of management and control.

Many workers reflect their specialisation in a narrowing of outlook but illustrates that the increased division of labour is foremost a question of political class consciousness which is at least in part a reflection of social and economic stratification of the class.  Thus some workers see themselves as professionals – engineers, accountants, managers etc. and regard themselves as middle class.  Just like white collar workers and state civil servants in the Russian revolution they do not identify themselves as workers with separate political interests along with other workers slightly below them in the social hierarchy.  They do not identify with socialism.

Modern society in this way reflects early twentieth century Russia: the working class does not rule society, even at the behest of the capitalist class, but there are numerous social layers (the middle classes) who help the capitalist class to do so, and they imbue into themselves and others the political outlook of their masters.

Because the division of labour is increasingly an international phenomenon the road of revolution at initially the national level poses even bigger problems for workers management of production than existed in Russia in 1917.  Especially in Ireland production is often a minor part of an internationally dispersed process so that control of the whole is exercised elsewhere.  How then do workers take control of such production in any one country especially one lower down the value chain?

For these reasons revolution needs to be prepared.  It needs prepared in the sense that workers must be won to a fully conscious commitment to their becoming the ruling class of society; a rule based on their ownership and management of the forces of production.  In order to achieve this, the force of example rather than simply the power of argument is necessary.  In other words workers must have seen and experienced ownership and management.  This can provide many with the experience and knowledge necessary to lead the whole class to own and manage the whole economy when such control is the basis for their own state power, after capitalist state power has been destroyed.

The best, in fact only way, to prepare for socialism is through practice, practice in asserting the interests of the working class as the potential new dominant class of society.  Demands for nationalisation are demands that someone else, the state – because the state is a group of people – create the good society.  And when anyone is asked to create the good society it is always what is good for them.

Such dominance is more than simple resistance to the exploitation of the old society but must in some way herald the new.  Opposition to austerity for example can only ameliorate the effects of capitalism and does not provide panaceas – not even ‘taxing the rich.’  The real importance of fighting austerity therefore lies in the building of the organisation and class consciousness of the working class. This is what Marx meant when he wrote in ‘The Communist Manifesto that:

“the Communists fight for the attainment of the immediate aims, for the enforcement of the momentary interests of the working class; but in the movement of the present, they also represent and take care of the future of that movement.”  The future is that in its “support (for) every revolutionary movement against the existing social and political order of things” communists “in all these movements, (they) bring to the front, as the leading question in each, the property question, no matter what its degree of development at the time.”

This then is the importance of workers’ control and workers ownership.  It is the question of the future of the movement of the working class because it brings to the fore “the property question.” 

I shall look at it some more in future posts.