by Oliver Nathan (ZACF)
Introduction
Worker co-operatives in post apartheid South Africa have all too often been championed by certain sections of the labour movement and some on the left as part of the solution to the ‘structural unemployment’ facing the popular classes in the current dispensation. Moreover, and often framed in purely ideological, often Proudhonist terms (in particular from the SACP and from various ex SACP members); worker co-operatives are understood as an equitable way of organizing production so that workers have control over the labour process, on the one hand, and ownership of the means of production, on the other.
Certain ‘enabling’ legislation and policy such as the Co-operatives Act of 2005, the National Co-operatives Policy of 2007 and the national Department of Trade and Industry (DTI) stepping in as the ‘custodian’ of co-operative development South Africa has, at least on paper, meant that co-operatives are part of the national development agenda currently embodied by the New Growth Plan (NGP) policy framework.[1] However, if one does some research into how various co-operative development projects, including trade union, state initiated, and community initiated and worker occupation-type co-operatives have fared in the post-apartheid era, one would see the dismal performance of these co-operatives in relation to their original objectives. These are, in particular, providing sustainable employment for their members while at the same time maintaining member control and popular participation in administration and production.
This article seeks to tease out some of the pitfalls of organizing worker co-operatives trying to compete in the market and often with the ‘assistance’ of the state. The benefits and limitations of co-operatives have long been the topic of discussion amongst anarchists and other libertarian socialists. This paper draws on the ideas of Bakunin (as against Proudhon) around the question of how co-operatives relate to and are affected by the state and the market in capitalist society. It subsequently evaluates the realities faced by co-operatives operating in the market through an analysis of ‘worker control’ and ‘social ownership’ in the former Yugoslavian co-operatives and ‘degeneration of worker control’ in the Mondragon Co-operative Complex in Spain. We then move onto the Ekurhuleni Metropolitan Municipality’s state sponsored co-operative development project as the South African case study.