Bolivian government authorizes workers to take over closed or abandoned firms October 20, 2013Posted by rogerhollander in Bolivia, Labor, Latin America.
Tags: Bolivia, bolivia labor, Evo Morales, labor, labor unions, labour, richard fidler, roger hollander, workers rights
Richard Fidler, La Paz, Life on the Left, http://boliviasc.org/
On October 7, President Evo Morales issued a government decree that allows workers to establish “social enterprises” in businesses that are bankrupt, winding up, or unjustifiably closed or abandoned. These enterprises, while private, will be operated by the workers and qualify for government assistance.
Morales issued Supreme Decree 1754 at a ceremony in the presidential palace marking the 62nd anniversary of the founding of the Confederación General de Trabajadores Fabriles de Bolivia (CGTFB – the General Confederation of Industrial Workers of Bolivia). The Minister of Labour, Daniel Santalla, said the decree was issued pursuant to article 54 of Bolivia’s new Constitution, which states that workers
“in defense of their workplaces and protection of the social interest may, in accordance with the law, reactivate and reorganize firms that are undergoing bankrupty, creditor proceedings or liquidation, or closed or abandoned without justification, and may form communitarian or social enterprises. The state will contribute to the action of the workers.”
In his remarks to the audience of several hundred union members and leaders, President Morales noted that employers often attempt to blackmail workers with threats to shut down when faced with demands for higher wages.
“Now, if they threaten you in that way, the firm may as well go bankrupt or close, because you will become the owners. They will be new social enterprises,” he said.
Labour Minister Santalla noted that the constitutional article had already been used to establish some firms, such as Enatex, Instrabol, and Traboltex, and that more such firms could now be set up under the new decree.
Business spokesmen predictably warned that the new provisions would be a disincentive to private investment and risk the viability of companies.
Santalla also said that firms that do not comply with their workforce obligations under the law will lose preferential mechanisms to export their products to state-managed markets. And he cited some recent cases in which the government had intervened in defense of workers victimized for their attempts to form unions. In one such case last month, Burger King, the company was fined 30,000 Bolivianos ($4,300 US), ordered to reinstate the fired workers and to recognize the union.
In the following article Alfredo Rada, Bolivia’s Deputy Minister of Coordination with the Social Movements, draws attention to some important developments within the country’s labour movement and suggests some means by which the unions can be more effectively incorporated within the “process of change” being championed by the government of the MAS-IPSP, the Movement for Socialism – Political Instrument for the Sovereignty of the Peoples.
My translation from the Spanish.
– Richard Fidler