South Africa: Workers take over factory

[Crux]

South Africa

Workers take over factory

23/12/2010
On Wednesday 20 October, the workers of the Mine Line/TAP Engineering factory in Krugersdorp, just outside Soweto, started an occupation of their workplace to stop the former owner from stripping the factory of machinery and other assets and to fight to save their jobs.

Reporters from DSM (CWI South Africa)

Interviews with the strikers. (http://www.socialistworld.net/doc/4740)

The workers are organised by the Metal and Electrical Workers Union of South Africa (MEWUSA) in which the Democratic Socialist Movement (sister party of the Socialist Party), plays a leading role. They are occupying the plant and mobilising a mass solidarity campaign, demanding state takeover of the factory, so that it can be reopened as a democratically run workers’ co-operative.

Mine Line/Tap Engineering, which produces valves, locomotives etc for the mining industry, was shut down in August as the owner, Mr. Mulder, was trying to escape responsibility for the deaths of three workers in a 4 August accident, caused by his gross disregard for workers’ health and safety. Despite the economic crisis, Mine Line has remained a viable business. The insolvency is the direct result of Mulder’s criminal looting, fraud and theft. He took R15m in cash from the company account, in addition to the fleet of luxury cars and helicopters he had bought himself with company money, and filed for bankruptcy the following day. While he has since been colluding with the liquidator, Commonwealth Trust, to loot the company, stealing its funds to set up business elsewhere, the 107 workers and the families of the workers who were killed are left with nothing to show for, in most cases, over 25 years of service.

Workers decided on Wednesday 20 October to guard the premises to stop the ex-owner and the liquidator from stealing any more machinery or other assets from the factory. Workers are fighting to save jobs, pensions and benefits, but also to show that production and society in general can be run without the capitalist bosses. The workers are demanding that the state should transfer ownership to the workers and inject capital to revive the business, and are forming a co-operative to run the factory, as a step towards the nationalisation of the company under workers’ control and management.

The occupation of Mine Line is the first action of this kind by workers in South Africa (SA) to defend jobs since the onset of the recession in 2008. Over 1 million jobs have been lost in SA since the recession set in – according to the IMF this is the world’s highest rate, relative to growth rates. 55% of SA’s working age population is not economically active (although the official unemployment rate is “only” 25%).

Regrettably, the trade union movement’s leaders have reacted to the recession as if it is a natural phenomenon for which no-one can be blamed. Instead of coordinating a united mass action campaign to push back the bosses’ offensive and defend jobs, they have focused on signing deals with the bosses and government for the “common good” – in effect, bailing out the bosses. The Mine Line workers are refusing to pay for the crisis caused by their boss and are sending a loud and clear message to workers everywhere to do the same. The economic crisis has exposed to millions that the capitalist system is unable to take society forward and this struggle will provide important lessons for organised workers, struggling working class communities and youth organisations in SA and internationally on how to fight for a socialist alternative.

The workers are mobilising and appealing for the support of other workers and their communities. Already, the Democratic Socialist Movement, COPAC and the wider Conference of the Democratic Left, a new united left initiative, are taking an active part in support for the occupation. There is now an urgent need to unite the weight of the entire labour movement and the mass struggles of communities and youth into a mass solidarity campaign. Pressure also needs to be put on the company’s main creditors: ABSA (bank) to pursue the ex-owner, not the company, to recover what is owed to it (he borrowed R35m on false pretenses and never invested it in the company). The same applies to the R15m owed to the South African Revenue Services (SARS).

The workers are inspired by the courageous examples set by workers at INNSE in Italy and the Vestas and Visteon occupations in Britain. The Socialist Party sends solidarity greetings to MEWUSA and the Mine Line Workers Committee. We wish them well with their brave struggle.

[Comrade1]

South Africa

Workers take over factory

23/12/2010
On Wednesday 20 October, the workers of the Mine Line/TAP Engineering factory in Krugersdorp, just outside Soweto, started an occupation of their workplace to stop the former owner from stripping the factory of machinery and other assets and to fight to save their jobs.

Reporters from DSM (CWI South Africa)

Interviews with the strikers. (http://www.socialistworld.net/doc/4740)

The workers are organised by the Metal and Electrical Workers Union of South Africa (MEWUSA) in which the Democratic Socialist Movement (sister party of the Socialist Party), plays a leading role. They are occupying the plant and mobilising a mass solidarity campaign, demanding state takeover of the factory, so that it can be reopened as a democratically run workers’ co-operative.

Mine Line/Tap Engineering, which produces valves, locomotives etc for the mining industry, was shut down in August as the owner, Mr. Mulder, was trying to escape responsibility for the deaths of three workers in a 4 August accident, caused by his gross disregard for workers’ health and safety. Despite the economic crisis, Mine Line has remained a viable business. The insolvency is the direct result of Mulder’s criminal looting, fraud and theft. He took R15m in cash from the company account, in addition to the fleet of luxury cars and helicopters he had bought himself with company money, and filed for bankruptcy the following day. While he has since been colluding with the liquidator, Commonwealth Trust, to loot the company, stealing its funds to set up business elsewhere, the 107 workers and the families of the workers who were killed are left with nothing to show for, in most cases, over 25 years of service.

Workers decided on Wednesday 20 October to guard the premises to stop the ex-owner and the liquidator from stealing any more machinery or other assets from the factory. Workers are fighting to save jobs, pensions and benefits, but also to show that production and society in general can be run without the capitalist bosses. The workers are demanding that the state should transfer ownership to the workers and inject capital to revive the business, and are forming a co-operative to run the factory, as a step towards the nationalisation of the company under workers’ control and management.

The occupation of Mine Line is the first action of this kind by workers in South Africa (SA) to defend jobs since the onset of the recession in 2008. Over 1 million jobs have been lost in SA since the recession set in – according to the IMF this is the world’s highest rate, relative to growth rates. 55% of SA’s working age population is not economically active (although the official unemployment rate is “only” 25%).

Regrettably, the trade union movement’s leaders have reacted to the recession as if it is a natural phenomenon for which no-one can be blamed. Instead of coordinating a united mass action campaign to push back the bosses’ offensive and defend jobs, they have focused on signing deals with the bosses and government for the “common good” – in effect, bailing out the bosses. The Mine Line workers are refusing to pay for the crisis caused by their boss and are sending a loud and clear message to workers everywhere to do the same. The economic crisis has exposed to millions that the capitalist system is unable to take society forward and this struggle will provide important lessons for organised workers, struggling working class communities and youth organisations in SA and internationally on how to fight for a socialist alternative.

The workers are mobilising and appealing for the support of other workers and their communities. Already, the Democratic Socialist Movement, COPAC and the wider Conference of the Democratic Left, a new united left initiative, are taking an active part in support for the occupation. There is now an urgent need to unite the weight of the entire labour movement and the mass struggles of communities and youth into a mass solidarity campaign. Pressure also needs to be put on the company’s main creditors: ABSA (bank) to pursue the ex-owner, not the company, to recover what is owed to it (he borrowed R35m on false pretenses and never invested it in the company). The same applies to the R15m owed to the South African Revenue Services (SARS).

The workers are inspired by the courageous examples set by workers at INNSE in Italy and the Vestas and Visteon occupations in Britain. The Socialist Party sends solidarity greetings to MEWUSA and the Mine Line Workers Committee. We wish them well with their brave struggle.
Hell Yeah!

[Reznov]

Really interesting stuff.

I wonder, will the workers keep the factory and will they capitalize on this situation?

[Amphictyonis]

Really interesting stuff.

I wonder, will the workers keep the factory and will they capitalize on this situation?

If there is a functioning state it seems likely the state will get the factory back to the capitalist or at the least let him get all of the equipment/machinery. I can't comment on the nature of the current South African state though.

[Crux]

The current demands made by the workers is to force the state to nationalize it as well as forcing them to maintain production and keeping everyone employed. As far as I am concerned this is active worker's power in action.

[Thirsty Crow]

The current demands made by the workers is to force the state to nationalize it as well as forcing them to maintain production and keeping everyone employed. As far as I am concerned this is active worker's power in action.
Two questions:

1) What kind of control over matters of production does this demand for nationalization entail? Or in other words, what is the relation of workers to the state officials responsible for management of production? Will they remain in their position of wage labourers, without any chance of access to the means of decision making/control over the workplace or do they insist on some form of direct involvement in these crucial matters?

2) What do you all think, how do these actions and potential results affect the woprkers' movement, especially its revolutionary wing? Can events and actions such as these be taken as signals of a rise in potentially revolutionary class consciousness as opposed to defensive economic actions (keeping the job and the wage;although I do not, by no means, wish to degrade this kind of actions, but I do think we should distinguish between the two)?

EDIT: okay, I admit it, I haven't been concentrated enough, obviously, while reading the article. Now I may attpemt to answetr my own question, the first one:


Workers decided on Wednesday 20 October to guard the premises to stop the ex-owner and the liquidator from stealing any more machinery or other assets from the factory. Workers are fighting to save jobs, pensions and benefits, but also to show that production and society in general can be run without the capitalist bosses. The workers are demanding that the state should transfer ownership to the workers and inject capital to revive the business, and are forming a co-operative to run the factory, as a step towards the nationalisation of the company under workers’ control and management. Another crucial question arises from the formulation in bold...We all know that any sociey does not need capitalist appropriators/bosses, but the crucial thing is whether society needs capital itself.
In other words, the "socialist alternative" may very well be taken as compounded by interlinked cooperatives, still operating under the premises of capitalist mode of production (AKA market socialism).
Another factor that reinforces the suspicions I ahrbou regarding the revolutionary effect of such actions is the stance of union leadership...The danger of co-optation, by both the unions and state structures, once a hierarchy of productive relations is established within the newly nationalized company is acute, in my opinion. And I don't think there can be doubt whether these hierarchical relations, extensions of the previous mode of exploitation, will persist even if the company is nationalized under a regime of workers' management(which would still be faced with specific problems of operating under a capitalist, market economy).

These are my initial opinions on the subject and I would like if someone pouinted out where I go wrong.

[Crux]

Two questions:

1) What kind of control over matters of production does this demand for nationalization entail? Or in other words, what is the relation of workers to the state officials responsible for management of production? Will they remain in their position of wage labourers, without any chance of access to the means of decision making/control over the workplace or do they insist on some form of direct involvement in these crucial matters?

2) What do you all think, how do these actions and potential results affect the woprkers' movement, especially its revolutionary wing? Can events and actions such as these be taken as signals of a rise in potentially revolutionary class consciousness as opposed to defensive economic actions (keeping the job and the wage;although I do not, by no means, wish to degrade this kind of actions, but I do think we should distinguish between the two)?

EDIT: okay, I admit it, I haven't been concentrated enough, obviously, while reading the article. Now I may attpemt to answetr my own question, the first one:

Another crucial question arises from the formulation in bold...We all know that any sociey does not need capitalist appropriators/bosses, but the crucial thing is whether society needs capital itself.
In other words, the "socialist alternative" may very well be taken as compounded by interlinked cooperatives, still operating under the premises of capitalist mode of production (AKA market socialism).
Another factor that reinforces the suspicions I ahrbou regarding the revolutionary effect of such actions is the stance of union leadership...The danger of co-optation, by both the unions and state structures, once a hierarchy of productive relations is established within the newly nationalized company is acute, in my opinion. And I don't think there can be doubt whether these hierarchical relations, extensions of the previous mode of exploitation, will persist even if the company is nationalized under a regime of workers' management(which would still be faced with specific problems of operating under a capitalist, market economy).

These are my initial opinions on the subject and I would like if someone pouinted out where I go wrong.
Indeed, but at this point this is primarily a defensive struggle, but the fact that worker's are taking on the company themselfes is, as I said, in itself an assertion of power. As the article also notes the revolutionary left has intervened. This is just the beginning.

[Thirsty Crow]

Indeed, but at this point this is primarily a defensive struggle, but the fact that worker's are taking on the company themselfes is, as I said, in itself an assertion of power.Of course one can take it as an assertion of power. Personally, I am very glad this kinds of actions are hapeening (which may be redundant to state on a forum like this one).

As the article also notes the revolutionary left has intervened. This is just the beginning.
Pardon my ignorance of South African political situation and my cynicism, but I cannot but deeply suspect that this "Democratic Socialist" movement will exhibit a strong tendency towards reformism as struggle intensifies and first fruits of it appear.
Can anyone shed some light on this movement? Does it function as a political party on an electoral basis? Any information would be appreciated since this seems like a potentially significant development.

EDIT: once again, my bad. I've learned that DSM is in fact CWI's South African section.
The name itself got me. I've grown accustomed to reformism in the guise of "Democratic Socialism".
Majakovskij, can you provide further information?

[Crux]

Of course one can take it as an assertion of power. Personally, I am very glad this kinds of actions are hapeening (which may be redundant to state on a forum like this one).

Pardon my ignorance of South African political situation and my cynicism, but I cannot but deeply suspect that this "Democratic Socialist" movement will exhibit a strong tendency towards reformism as struggle intensifies and first fruits of it appear.
Can anyone shed some light on this movement? Does it function as a political party on an electoral basis? Any information would be appreciated since this seems like a potentially significant development.

EDIT: once again, my bad. I've learned that DSM is in fact CWI's South African section.
The name itself got me. I've grown accustomed to reformism in the guise of "Democratic Socialism".
Majakovskij, can you provide further information?
Yes, name traditions apparently differ, but then again we wouldn't call ourselfes Revolutionary Socialism (like the latin american comrades do) in sweden, so I suppose I can't judge. DSM used to be the Marxist Tendency in ANC, sadly quite a few comrades drifted after the fall of apartheid and I suppose our organizational break with the ANC after the rotten deals they made with the old regime and the direction they were taking. At present there is a resistance to the government particuarly from the independent unions but there has also been a rumbling inside the official trade union which is a junior government partner in the ANC SACP government. There has also been a left split from SACP recently which, I believe, form the main forces of the Conference of the Democratic Left, who we have written on here: http://www.socialistworld.net/doc/4274
I am confident in the DSM comrades, despite the name. ;)

[scourge007]

Good for those comrades. I'm glad the Democratic Socialist Movement is involved in this. Any other Socialist or Communist groups joining ?

[Crux]

Good for those comrades. I'm glad the Democratic Socialist Movement is involved in this. Any other Socialist or Communist groups joining ?
Well, the CDL more generally seems to be intervening as well.

[redz]

The current demands made by the workers is to force the state to nationalize it as well as forcing them to maintain production and keeping everyone employed. As far as I am concerned this is active worker's power in action.


So is this workers' factory seizure still happening? What's the current status of this struggle?

Redz

[scourge007]

Well, the CDL more generally seems to be intervening as well.
That's good. Hopefully they succeed in their struggle.

[redz]

South Africa
Workers take over factory
23/12/2010
On Wednesday 20 October, the workers of the Mine Line/TAP Engineering factory in Krugersdorp, just outside Soweto, started an occupation of their workplace to stop the former owner from stripping the factory of machinery and other assets and to fight to save their jobs.
...
The workers are organised by the Metal and Electrical Workers Union of South Africa (MEWUSA) in which the Democratic Socialist Movement (sister party of the Socialist Party), plays a leading role. They are occupying the plant and mobilising a mass solidarity campaign, demanding state takeover of the factory, so that it can be reopened as a democratically run workers’ co-operative.


This is certainly a supportable work action, but its aims seem quite modest (appealing to the South African bourgeois state to take ownership of the factory), and it's unclear what the current status of this action is - I can't find any reference online except for a mention that, as of mid-November, the occupation was still under way.

Even small victories for modest goals are important, as they bolster the workers' confidence and can contribute further to the raising of class consciousness and the workers' understanding of their longer-range historic tasks. However, it's unclear whether any of this has happened, or has a chance of happening, in this case.

An effort by a small workforce of just over 100 to compel the SA state to nationalize the factory, on its own, seems Quixotic - it would almost surely depend for success on the external "mass mobilization" mentioned ... but I've seen no evidence that such a mobilization has been happening, at least to the significant extent necessary to contribute to success here.

I would also point out that, depending on the terms of the nationalization, within the context of SA's capitalist society, the status of the factory and a "democratically run workers’ co-operative" would be extremely precarious, and likely subject to rescission when it's convenient to the rulers and authorities of the capitalist state.

That said, from thousands of miles away (in my own case) one can only hope and wish for a successful outcome for the workers in this struggle.

Redz

[Tavarisch_Mike]

Sounds like a South African version of the Argentinian FaSinPat :thumbup1:

[Crux]

This is certainly a supportable work action, but its aims seem quite modest (appealing to the South African bourgeois state to take ownership of the factory), and it's unclear what the current status of this action is - I can't find any reference online except for a mention that, as of mid-November, the occupation was still under way.

Even small victories for modest goals are important, as they bolster the workers' confidence and can contribute further to the raising of class consciousness and the workers' understanding of their longer-range historic tasks. However, it's unclear whether any of this has happened, or has a chance of happening, in this case.

An effort by a small workforce of just over 100 to compel the SA state to nationalize the factory, on its own, seems Quixotic - it would almost surely depend for success on the external "mass mobilization" mentioned ... but I've seen no evidence that such a mobilization has been happening, at least to the significant extent necessary to contribute to success here.

I would also point out that, depending on the terms of the nationalization, within the context of SA's capitalist society, the status of the factory and a "democratically run workers’ co-operative" would be extremely precarious, and likely subject to rescission when it's convenient to the rulers and authorities of the capitalist state.

That said, from thousands of miles away (in my own case) one can only hope and wish for a successful outcome for the workers in this struggle.

Redz
DSM's website is still down, but the point of the left intervening, as well as the independent unions, is to bui8ld support elsewhere. You are right in that the occupation would have a very precarious existence on it's own, but right now it comes after a series of massive strikes, particularly in the public sector. The aim should of course be to link up these struggles, and if possible spread the occupation movement. I'll put up updates as soon as I get them.