“No worker who is not a shareholder, no shareholder who is not a worker,” say the workers of VIOME (Industrial Mineral), a factory in northern Greece. Their plan to take over the factory and to manage it themselves has generated waves of encouragement and support throughout the world. In this report for UNFOLLOW magazine, we investigate the background to current events, and ask what the future might hold for these workers and their plan, what the reaction of the Greek government is likely to be, and whether workers’ self-management is feasible in a capitalist context.
1. VIOME: A workers’ experiment with a global appeal
By Christos Avramidis and Antonis Galanopoulos – Unfollow magazine
“You can’t, we can.” This is more or less how the workers of Viomihaniki
Metalleytiki (Industrial Mineral) reacted to the decision of the Management
Administration to close down yet another factory of the Prefecture of Thessaloniki.
VIOME, its object of operation being the production of chemical products for the
construction sector, was established in 1982 and is a subsidiary company of
Philkeram-Johnson S.A., the property of Philippou family. And, while in 2006 it is
classified among the 20 most succesful enterprises of Northern Greece, 2008 marks
the emergence of the first problems due to the crisis in the construction sector, as well
as the erroneous handlings of management.
In 2011, the Philippou family submitted a debtor’s petition for Philkeram. The
consequences did not take long to appear within VIOME either, when in July of the
same year the management violates the agreed timetable for the payout of the accrued
sums. This was the first indication that the owners are abandoning the factory.
The workers react with repeated 48-hour strikes, and on 12 September begin work
retention. The idea of self-management has already started being discussed from the
first general assemblies is discussed, and, when submitted under voting, it eearns the
97% of votes.
Upon the bankruptcy of Philkeram, the entirety of its assets, including the shares and
the real estate of VIOME, are passed unto the trustee in liquidation. At the tripartite
meeting that was held at the Ministry of Labor in November 2011, in the presence of
Deputy Minister Yiannis Koutsoukos, Mrs Philippou, vice-president of the group,
makes it clear that she is not willing to operate the factory again.
“From that moment onwards we bring out our own banner, and with the basic
slogan “No other 70 unemployed workers. Direct re-operation” we go on
demonstrations and strikes, states the union chairman Makis Anagnostou.
In April 2012, following a period of relative stagnation, the union calls out to
associations and trade unions of the city for aid. The correspondence revived the
workers’ morale and gave a new prospect to their fight, culminating in the creation of
the solidarity initiative in July.
As time passes, a solidarity caravan is being planned, which is realized in October,
with intermediary stops in Larissa and Volos and a final destination in Athens. There,
the workers submit their demands and the proposal for re-operation to the consultant
of the Minister of Labor, who is positive but states that the matter is not under his
jurisdiction and commits to forward the demands to the Minister.
The proposal includes:
- the acquisition of the shares of VIOME without undertaking of the previous
management’s debts
- the creation of a legal framework for the greater safety of workers-shareholders
possible, who are to participate with the initial capital and not with personal property
and with no further commitment
- their financing via the subsidy of OAED (Manpower Employment Organization)
for new enterprises [with part of these funds originating from ESPA (National
Strategic Reference Framework) European programs], plus the lump sum payment of
the unemployment benefit (a practice that has been repeated in the Petzetakis case).
2. - the return to VIOME of the sum of 1,9 million Euros that had been loaned to the
Philkeram parent company
Finally, on 21 January a meeting is held between the workers and the Minister of
Labor Mr. Panagiotopoulos and the trustee of Philkeram.
The workers submit their proposal again, with the Minister answering vaguely that
henceforth the conditions are ripe for the passage of closed factories in the hands of
workers, without, however, undertaking concrete commitments. The workers,
however, do not content with the words of the Minister and clarify that they will
immediately begin the operation of factory, waiting for the submission of the relevant
bill from the government.
At this point, it should be noted that, according to the chairman of workers, the trustee
did not raise any objections. The declaration is put into action on February 12, 2013,
when the workers open the factory’s gate.
THE WAY OF OPERATION AND THE ARGENTINIAN EXPERIENCE!
As we have been informed by the union’s chairman, the first days are utilized in order
to conduct the inspection of the quality of products that are in the warehouse, to
proceed to the procession and recycling of materials, and improve the surrounding
space after months of abandonment.
Subsequently, during first two months of operation they will place the supplies in
stock at 2/3 of the price, with an estimated income of roughly 200.000 Euros.
It is reported that trade unions from other countries have already decided to give their
financial support via this road. This appears to be the workers’ first capital. In any
case, the workers do not remain inactive until they get the answer of Ministry and
have already been investigating alternative sources of financing. One from these is the
Working World NGO, known from financing related undertakings in Argentina,
which we will discuss below.
However, is survival possible under these conditions? As it was made clear to us
by the union’s chairman, the production will proceed according to their abilities
possibilities, acknowledging at the same time that they possess a number of potential
advantages. The triptych of their economic plan includes a combination of the old
clientele, a turn to cheap, popular product and opening up to the Balkan countries.
Initially, the idea of production of low-cost, immediately marketable products is
promoted, such as biological detergents for domestic use, at a percentage of 15% of
the total production, which will secure money for reinvestment. It is believed that in
this way, bonds with the people that support the undertaking will also be
strengthened. The reduction of the price of products will also be of crucial
importance. In particular, M. Anagnostou mentions that the price of glue will fall at
25%, simply and solely due to the replacement of a specific material that they were
forced to use in its production up to now, since this had been produced by another
subsidiary company of Philkeram. And while they wish to maintain the previous
clientele, they will extend at the same time the turnover of products through their sale
even to the last stockyard.
Provisions concerning the distribution of income have already been included in the
union’s financial plan, including certain provisos. According to M. Anagnostou, 2-
3% of the income will go to a solidarity fund, 8% to the reserve fund, and 30%
will be reinvested. An important role will also be played by the opening to new
markets of the Balkans and the big market of Russia, something about which contacts
have already been made. As M. Anagnostou states, “we have found other, more
3. economical ways that those who had been serving capitalism – and not we – ought to
have known.”
Finally, it is the workers’ conviction that the fact that they will henceforth produce to
the advantage of collective effort and not of a businessman will automatically
improve many aspects of operation of the enterprise.
The private contract of VIOME workers states among others that they undertake “the
operation of the factory in terms of complete self-management and workers’ control
[…] with a basic issue being equality in participation and decision-making, direct
democracy ]…] also, discriminations and exclusions are prohibited.” “No worker
without being a shareholder, no shareholder without being a worker,” as stressed
to us by M. Anagnostou.
The Argentinian experience comes to strengthen, but also to pose reflections on
many of the objectives of the workers of VIOME. In 2001, the unemployment rate in
Argentina was 25%, with another 20% being underemployed and 60% of the
population living in conditions of poverty. The workers began to occupy the factories
in an effort to fight for their survival. Today, there exist about 300 workplaces with
over 13.000 employed people, which are operated democratically by the workers
themselves. The “one worker = one vote” principle was applied in all the factories.
An emblematic example of the movement is the factory Zanon.
It is remarkable, however, that few factories have received a final operation permit,
while this has been recalled for many ones, with the owner “re-occupying” the factory
with the blessings of the courts.
Apart from this, the workers were forced in many cases to shoulder the debts or even
to pay for the machinery, something that contributed to work for a period of time
without being paid. Moreover, there are examples, where the factories in their effort
to stand in the capitalist market, adopted a line of conditions, such as hiring salaried
workers, the engagement of lessees, henceforth resulting in appertaining more to
“formal” enterprises of the free market.
SOLIDARITY: FROM POLITICAL SUPPORT TO FINANCIAL AID
One of the most hopeful aspects of the VIOME struggle is the solidarity movement
that has developed around it. The open solidarity initiative in Thessaloniki frames
the workers’ struggle excellently and has played a decisive role in its course. From the
gathering of food, the organization of propaganda events and concerts for financial
aid to the powerful demonstrations of support, the initiative is on the workers’ side in
every step of their struggle.
The movement has expanded internationally, as solidarity committees have already
been organized in America, Argentina, Australia, Vienna, Copenhagen, Poland.
Moreover, big international mass media, up to Japan, have broadcasted extensive
reports.
Personalities, such as David Harvey, Naomi Klein, Avi Lewis, John Holloway,
Silvia Federici, and David Graeber, have declared their support to the undertaking,
while the workers have received a message of support from the Zapatistas as well.
We communicated with John Holloway in particular, who made the following
statement: “The workers’ undertaking of the factory of VIOME constitutes
exceptional news. The crisis in Greece cries out to the whole world that capitalism has
failed. Our own turn to take over has come. There is no other way forward.”
The support is not limited to the moral or political level, but effort is made for the
financial aid of workers.
4. Another statement of support comes from Brendan Martin, founder of Working
World, who, confirming is in contact with VIOME, stated in Unfollow that the
undertaking can be viable and constitutes an exceptionally important struggle. “It is
something we have seen working hundreds of times. We praise and intend to support
this effort in any way. We are examining the enterprise’s prospects and are aiding in
the drafting of a plan so as to recover from the pause of operation.”
Working World, an NGO which was established in the USA and has its headquarters
located in Argentina, functions as a solidarity fund and finances, in the form of small
loans, groups of workers that operate co-operative or small enterprises. Its income
originates from a governmental program of Argentina whose aim is the support and
financing of lower layers, from donations, as well as from the very network of co-
operative enterprises that contribute to the fund.
As a non-profit company, it does not bring in profits to its owners. The fund’s
objective is its self-preservation, and, as mentioned by Brendan Martin, “the role of
the capital is subordinate and instrumental. The profits of the co-operatives are the
most important thing. The loan payout is made only from the profits of the
cooperatives. Contrary to the obvious risk, 98% of the loans in Argentina were paid
out and brought profits to the workers. The workers are a good bet; it seems to be
paying off.”
THE GOVERNMENT’S FLIRTATION WITH SELF-MANAGEMENT
The Samaras government, having another bomb in its hands ready to explode, has
also the privilege to determine how the issue will initially develop, as it keeps the
capital to ensure the beginning of production, but also the possibility of enacting or
not the essential legal framework for the operation of such an enterprise.
Controlled explosion or disarmament? “We ask to produce. We request paying
taxes to them. Capitalists have abandoned production, they are interested only in
profit,” states M. Anagnostou. It is precisely this reasoning that deprives the
government of the usual arguments for the negative response to the proposal. Those
that constitute the real “problem of VIOME,” the unemployed unpaid workers,
provide a way out to themselves alone.
Although the government until now has been obstructing and keeping open the
possibility of repressing the VIOME struggle, there are indications that the idea of a
controlled explosion, namely the decision to allow the workers to open the factory,
aiming from the very start at their respective manipulation, can eventually constitute a
choice. In the memorandum-era Greece, with unemployment having reached 27% and
almost four million Greeks under the limit of poverty, the government finds itself in
desperation and seeks to block this course immediately. A mutilated VIOME seems to
be an exceptional occasion. A VIOME, that is to say, that will function without the
progressive elements, without the political implications, with an illusion of self-
management. Re-operation would absorb investments from the European allocations,
and thus would strengthen growth, in particular through “real economy” and with
“healthy business spirit.” Thus, job positions would be created, instead of having
“other 70 unemployed workers.” VIOME might even become an example of
“modernized syndicalism.”
Which is the road to assimilation? Dilemmas the government gradually poses,
always under the threat of ceasing the operation of the enterprise, provided that the
demands are not adopted. Hiring of non-shareholding employees and abolition of the
solidarity fund are some of the government’s likely objectives. In the case of a likely
retraction, VIOME would cease to constitute an example of emancipation for
5. workers. Moreover, it could pave the way for new compromises, keeping the workers
and the unemployed in the line of production, away from the streets of struggle
SELF-MANAGEMENT WITHIN CAPITALISM?
The effort of workers is being criticized both from the right and the left. The most
important question is how self-managing can an undertaking that requests the
help of the government and EU be. If this help is eventually given, it is probable
that the workers, in order to maintain their factory open, will confront a series of
dilemmas. They might overcome some dilemmas with legal maneuvers, while other
ones they might not.
So dynamic is the situation, that we cannot anticipate the outcome, as the workers do
not appear to be selling out their vision so cheaply either. The plan of the European
Union for a social economy in conditions of exploitation is not so easy to be achieved.
The dozens of workers who have sought contact with VIOME in order to imitate its
example will also agree to this. Consequently, the question of how many dilemmas
will be posed by the government and how pressing they will be depends in the final
analysis on the spread of the example of VIOME, as well as on constant solidarity.
It is certain that the danger of workers to become, within the bounds of the
system, new “collective” property-owners, loyal to the conditions of the market,
will always be lurking. Most of the undertakings in the past did not achieve precisely
what they had set as their objectives. This, however, does not entail the invalidation
of possibility, but its weakness to be fulfilled in the given social and economic
limitations. Yet, are these limitations so given today?
Probably not.
6. workers. Moreover, it could pave the way for new compromises, keeping the workers
and the unemployed in the line of production, away from the streets of struggle
SELF-MANAGEMENT WITHIN CAPITALISM?
The effort of workers is being criticized both from the right and the left. The most
important question is how self-managing can an undertaking that requests the
help of the government and EU be. If this help is eventually given, it is probable
that the workers, in order to maintain their factory open, will confront a series of
dilemmas. They might overcome some dilemmas with legal maneuvers, while other
ones they might not.
So dynamic is the situation, that we cannot anticipate the outcome, as the workers do
not appear to be selling out their vision so cheaply either. The plan of the European
Union for a social economy in conditions of exploitation is not so easy to be achieved.
The dozens of workers who have sought contact with VIOME in order to imitate its
example will also agree to this. Consequently, the question of how many dilemmas
will be posed by the government and how pressing they will be depends in the final
analysis on the spread of the example of VIOME, as well as on constant solidarity.
It is certain that the danger of workers to become, within the bounds of the
system, new “collective” property-owners, loyal to the conditions of the market,
will always be lurking. Most of the undertakings in the past did not achieve precisely
what they had set as their objectives. This, however, does not entail the invalidation
of possibility, but its weakness to be fulfilled in the given social and economic
limitations. Yet, are these limitations so given today?
Probably not.