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submitted 1 day ago* (last edited 1 day ago) by Yondoza@sh.itjust.works to c/asklemmy@lemmy.ml

The overarching goal of communism is for laborers to own the means of production instead of an owning/capitalist class. Employee owned businesses are the realization of communism within a capitalist society.

It seems to me that most communist organizations in capitalist societies focus on reform through government policies. I have not heard of organizations focusing on making this change by leveraging the capitalist framework. Working to create many employee owned businesses would be a tangible way to achieve this on a small but growing scale. If successful employee owned businesses are formed and accumulate capital they should be able to perpetuate employee ownership through direct acquisition or providing venture capital with employee ownership requirements.

So my main questions are:

  1. Are organizations focusing on this and I just don't know about it?
  2. If not, what obstacles are there that would hinder this approach to increasing the share labor collective ownership?
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[-] Madzielle@lemmy.dbzer0.com 2 points 37 minutes ago* (last edited 31 minutes ago)

Everyone here seems to be talking about co-ops... And I'm really confused by the conversation in this thread, alas,

I worked for some years for a manufacturing company that was 100% employee owned. We were a multinational manufacturer for: wire and cable, aerospace, and medical. The company began around 1972, started the EO process in the early 90's becoming 100% employee owned by 2000.

The [National Center for Employee Ownership] (nceo.org) is a good resource for businesses looking at employee ownership. The most common ESOPs are manufacturing companies in the states last I heard at one of the nceo conferences.

The obstacles that I see, is that most companies have Investors. Obviously we all know what the investors want as they own the stock. It takes a generous leadership/company founder to sell their stock to the company for employee ownership. It's a long process with lawyers and other legal hurdles. Not impossible, but finding generosity in the white collar business class, especially today, is not common it seems. You must have initial generosity and care for your employees from the initial owners. They decide to go employee owned or not. They either see the investment EO is, or they keep greedy.

The founder of the EO I worked for sold his last stock to the company for the same price he sold his first stock (which in the ten-ish years it took to get to 100% EO, raised considerably).

Profit sharing is dope. Basically we all got an extra large paycheck every quarter. This company I worked for paid $3-$4 more per hour to start than any other manufacturing company in the area, and bennies began the day you were hired. They literally held financial literacy classes for all employees, to better understand our financial reports, as the company was super transparent. They believed that the best ideas come from the ones running the machines, and the founder often could be found sweeping floors of his shops to better know his employees and their struggles. In 2019, the company stock was valued at over $6K a share.

The original owner passed away, then covid hit, (I left) then the leadership changed to new people who never met the founder. It's gone down hill since. Im to be paid out this year, and the stock is half was it was when I left. I still carry a card with the original founders mission and values listed for the company. That card is no longer what they follow. It's been sad to see.

However, I still believe Employee Ownership is a solid pathway to restoring the middle class.

Folks who began in the 90s were retiring after 25 years with the company with $1-$2 million dollars in their esop accounts alone. I know what a Roth IRA is, what it means to diversify, and what dividends are all because of this company's financial literacy classes.

It also is possible a company becomes too big to support the EO model. This company was hitting that point around the time I left, they told us "we're hiring lawyers to make sure that it doesn't happen", but as I've watched the stock price drop year over year, yeah bet-

Because communists wont/can't orginize in numbers that would allow for it.

[-] rainrain@sh.itjust.works 3 points 1 hour ago

Because fear/greed is the greatest organizer. Abandon that and we're just a chaotic mob.

Is that harsh?

No, also fear/greed are simple and easy for everyone to understand. Like love could be a great motivator but you need to lay down principles, boundaries, etc. Fear/greed just goes.

[-] bstix@feddit.dk 1 points 33 minutes ago

It can be difficult for coops to play on the capitalist market.

A company with a top-down hierarchy can make decisions much faster than an organization where the decisions are made ground up through internal democratic policies. The democratic process also very likely limits the co-op from doing shady stuff.

It's possible though, but it requires a really good community backing.

[-] serenissi@lemmy.world 11 points 2 hours ago

Co-op is using capitalism to fight some harmful effect of capitalism itself. Many Conmunist movements believe there are better and stronger alternatives.

This can be especially true for industries that are centralized by nature. You can't set up production ready silicon factory or power plant today to set up a co-op. The more practical alternative is to set up union to protect rights of workers.

[-] kittenzrulz123@lemmy.blahaj.zone 12 points 3 hours ago

Thats more syndicalist in nature, also the very idea is absurd. Why on earth would you willingly play the capitalist game with the capitalist rules when the entire system is rigged against the workers? What can possibly be gained? The way I see it if organizations like the IWW started making co-ops then the FBI would make sure they fail.

[-] silentjohn@lemmy.ml 5 points 1 hour ago

the FBI would make sure they fail.

This is kind of the point. If any of these things remotely threatened the capitalist status quo, they would be obliterated by the CIA, etc.

[-] mvirts@lemmy.world 11 points 10 hours ago

Something something they do sometimes

[-] silentjohn@lemmy.ml 20 points 19 hours ago

Employee owned businesses are the realization of communism within a capitalist society.

Right, but we want the whole system changed. Coops are inherently at a disadvantage in monopoly capitalism.

[-] innerwar@lemm.ee 5 points 10 hours ago* (last edited 10 hours ago)

Sorry my ignorance is showing here but I thought coops might be stronger than a company in a way they have more staying power before a company is forced to enshittify. I naively thought people would recognize the better quality of stuff provided from coops because they don’t have to fulfill the shareholders dreams of line must go up. Edit: I see down below the willingness to exploit is a severe disadvantage to coops

[-] silentjohn@lemmy.ml 3 points 1 hour ago

I think you already read the reason/s but in a monopoly capitalist society, but companies can just smother smaller ones by leveraging their exploited workforce (more output for less cost), out-competing, buying up all competition, much better economies of scale, and access to capital and market forces.

Just take an example of a small business owner who sells sporting goods (I use this example because I love Freak and Geeks lol). How can you possibly compete with Walmart when Walmart has bigger and better inventory, cheaper prices, more locations, basically no competitors, better advertising, etc? Sure lots of people value 'small businesses' from a moral/ethical point of view, but enough for this company to grow and grow and grow and compete with friggin Walmart? That just doesn't happen often.

Now, something like REI, which is a coop, does compete with Walmart in a very niche market. REI has a strong brand and loyal customer base, allowing it to compete effectively in the outdoor and sporting goods sector. However, its focus is more on quality and specialized products rather than mass-market items. Do you think Walmart couldn't just destroy REI if it felt like it was being threatened and it wasn't one of the largest mcap companies on the planet?

[-] psion1369@lemmy.world 8 points 14 hours ago

The more we get, the better it becomes. Trying to just change the whole system at once is just an excuse for not making the small changes that move the needle.

[-] silentjohn@lemmy.ml 2 points 2 hours ago

Do find it interesting that every anti-capitalist society was achieved through revolution? Not by voting or incremental changes, but by ugly, violent, revolution?

By all means go and create some coops! I became a member of a local food coop. But I am under no delusion that this impacts capitalism whatsoever.

Capitalists aren't going to just let the system slowly change. The mass murder campaigns waged by the CIA have taught us that (read The Jakarta Method).

[-] sudo@programming.dev 12 points 13 hours ago

Making more co-ops doesn't make them any more competitive against companies that exploit their workers for extra profit.

If you can make a successful co-op then go for it. But they absolutely aren't a path to any sort of revolution, which communists are all about. Forming a labor union in a critical industry is a much higher priority for communists than starting another co-op.

[-] serenissi@lemmy.world 1 points 2 hours ago

It isn't communism, but sometimes making a co-op turns out to be more successful than forming union inside fragmented industry. A prominent example is amul from India. Instead of of forming union against highly capitalistic dairy industry, milk farmers and workers made a co-op that replaced those capitalist industries with market force.

The point was though this initiative got direct support from the government not some agenda against it.

[-] TheBeege@lemmy.world 3 points 9 hours ago

I'm not convinced of this. One could argue that profit is waste. It's an overhead of wealth delivered for value provided. If co-ops are less incentives towards profit, e.g. by not having a tradeable stock to manage, then the pursuit of profit is a lesser priority. This means the overhead is less, which could mean lower prices.

To put it bluntly, if you don't need to pay dividends to shareholders who deliver no value or huge bonuses to executives at the top, maybe the operating costs could be lower. Yes, the cooperative members would take some of that money as profit sharing among the members, but the working class tends to be less sociopathically greedy than those in power.

Definitely open to feedback. This kind of thinking is newer to me

[-] creamlike504@jlai.lu 3 points 10 hours ago

Small, local communist Ws would enable more state and national communist Ws.

"Well, that co-op just outside of downtown is doing fine. Molly's daughter worked there when she was in high school and said it was the best job she ever had. I guess communists can do some things right."

is an improvement over

"I've never met a communist, but I know they're all stupid and evil. I'm going to vote against anything with the word socialist or communist next to it because [media personality] told me so."

[-] interdimensionalmeme@lemmy.ml 1 points 10 hours ago

What?? Why would an organisation free of parasites, not trounce the "meritocratic" system?

[-] silentjohn@lemmy.ml 2 points 1 hour ago

Because they cannot compete with the economies of scale, the availability of capital, market power, an exploitable workforce, etc.

It's like asking why you can't win at checkers when your opponent is cheating at 4d chess.

Read: Imperialism, the Highest Stage of Capitalism by Lenin

[-] opsecisbasedonwhat@lemmy.ca 7 points 21 hours ago* (last edited 21 hours ago)

I think worker cooperatives are sometimes bashed too much but worker cooperatives are fundamentally a lower petty-bourgeois form of organizing. Cooperatives can only be an ally to the movement of the proletariat and not a driving force. That said, they might have minor use.

I have been thinking about how to sublate the lower petty-bourgeoisie into the movement of the proletariat. I think it would be cool for a bunch of workers in a worker's state to make a worker cooperative as a startup, make it big and then sell the cooperative off to the worker's state. As long as the land and the banks are owned by the state anyway, the worker cooperative would be financed and largely owned by the people indirectly anyhow.

But in terms of pre-revolution, worker cooperatives may help educate the workers who are part of it, and cooperatives can help ease the transition of class suicide for petty-bourgeois and labor aristocracy class traitors.

There's a bit of a trouble for educating the workers compared to unions due to the class situation and nature of ownership. But I think it would be less harmful for a small business owner to create a cooperative than to go out of business during an economic bust and with unexpected declassing become a reactionary blaming their debt on minorities.

I think the trouble is where to focus the limited time and effort of the communists. It's not that cooperatives are bad necessarily, it's just that it's more helpful and important to focus elsewhere.

I do think some communists get weird about strata other than the proles proper such as the reserve pool of labor, lower petty bourgeoisie and the labor aristocracy. The foundation of the communist movement should be the proletariat but these other strata are not inherent enemies. There's not a fundamental antagonism of exploiter and exploited here.

[-] communism@lemmy.ml 13 points 1 day ago* (last edited 1 day ago)

The hell of capitalism is the firm itself, not the fact that the firm has a boss.

The forces of the market and of capital do not go away just because the workers own the company. In worker-owned cooperatives, the workers exploit themselves, because the business still needs to grow. They simply carry out the logic of the capitalist themselves on themselves, using their surplus value to expand the business's capital, and paying for their own labour-power reproduction. i.e., the workers all simply become petit-bourgeois.

There are extant organisations (some political parties, some NGOs) that push for more workers' cooperatives, and none of them are communist nor call themselves communist. If you believe in a cooperative-based economy, you are not a communist. I don't mean that as an insult, it's just a fact, the same as if you want, for instance, the current US economic system, you are not a communist. You can advocate for coops but you would fare much better in that political project if you didn't try to put it under the banner of something it's not, and something far more controversial than just "worker coops are good" anyway.

[-] witten@lemmy.world 7 points 22 hours ago

Why does a worker-owned coop need to grow? Are you presuming they take outside investment / capital?

[-] Cowbee@lemmy.ml 10 points 21 hours ago

Capitalism compels firms to grow or die, in order to fight the tendency for the rate of profit to fall. We'd need to move beyond a profit-driven economy to move beyond this issue.

[-] merdaverse@lemmy.world 5 points 17 hours ago

There is no tendency of the rate of profit to fall. The theory is inconclusive, as is empirical research. If TRPF were true, then growing a company would, in fact, accelerate the process.

[-] Cowbee@lemmy.ml 4 points 13 hours ago

It's a tendency, not an ironclad law. Competition forces prices down, and rates of profit with it, but this process can be struggled against by expanding markets or finding new industries, which is why Capital always pours into "new fads" in the short term. Imperialism is actually quite a huge driver of this.

There are numerous studies showing broad rates of profit falling over time, as well. Moreover, Marx never lived to see Imperialism as it developed in the early 20th century, where the TRPF was countered most firmly.

[-] merdaverse@lemmy.world 1 points 5 hours ago* (last edited 5 hours ago)

Competition forces prices down, and rates of profit with it

This is not true in the general case. If prices for input materials are down, profits rise for the company using them. One company's profit loss is another's gain. That is even with the shaky assumption that competition can exist long term in a free market. Imperialism, as defined by Lenin, results in concentration of capital and the removal of competition.

this process can be struggled against by expanding markets or finding new industries

There are counteracting forces for it, but expanding is not one of them. Expanding does not change the rate of profit (profit/capital invested); at most, it changes the total profit.

[-] Cowbee@lemmy.ml 4 points 5 hours ago

If it costs 5 dollars to make one widget on average, and company A creates a machine that improves production so as to lower the cost of widgets produced by them to 3 dollars, then they temporarily make more profit until other companies that make widgets find ways to lower their cost of production to around the same level. This new lower price has a higher ratio of value advanced from machinery as compared to labor, lowering the rate of profit. This is a general tendency, but can be fought against by many measures, including monopolization and using regulations to prevent companies from properly conpeting, ie by copyrighting machinery and production processes.

Imperialism didn't just allow for expansion, it also came with violent means of suppressing wages and extracting super-profits. It wasn't just an expansion that would raise total profitd while rate of profits fell, it also created new avenues for exploiting labor even more intensely, and selling goods domestically at marked up prices.

Really, I don't know what your issue with the TRPF is, are you under the assumption that Marxists claim it's an ironclad law over time and not a tendency, or are you against the Law of Value in general?

[-] merdaverse@lemmy.world 2 points 2 hours ago

You didn't address any of my concerns, nor was I talking about productivity. Let's try again for the the first one with a simple example:

Company 1 makes a product (let's say timber) at 50 surplus value. That 50 is a cost for company 2 that uses the product as an input material (it makes wooden chairs). We can calculate the total rate of profit of both companies. Now company 1 is forced to lower the price to 40 because of competition. We calculate the total rate of profit again and the total rate of profit has actually increased.

Thus, it does not follow that lowering prices/profits leads to a decrease in the overall rate of profit

[-] Cowbee@lemmy.ml 2 points 1 hour ago* (last edited 54 minutes ago)

What you have described is the pure moment of input costs lowering (and you're confusing surplus value with price, 50 being surplus would also imply 10 in variable and 10 in constant, so 70 would be the input for company 2 if you simplify for the sake of example absolutely no tool usage in company 2). However, unless company 2 has a pure monopoly on chairs, this lowering of cost of production would also apply to other chair companies, and costs would lower. When wood prices are low, wooden chairs cost less than when wood prices are higher.

Further, the TRPF isn't really about competition, or even surplus value. That's one-sided. The TRPF is about rising organic composition of Capital, ie as c increases in ratio with v, or c/v. Competition pushes for this, as increasing automation can allow temporary advantage (as you've somewhat shown) before other companies follow suit. What you've shown is one company lowering the ratio of c/v, ie lowering the costs of their constant Capital over their variable, but that would imply that this company should never reduce wages nor increase automation as a rule.

In order to outcompete, constant Capital must rise in ratio, as it can lower prices of production below what others can offer, even though this raises c/v. Hence total profits rise, but rates of profit trend downwards.

Your argument would only hold true if this was the final part of the process and competition didn't exist for company 2, allowing them to charge monopoly prices and never worry about increasing automation and productivity.

Now, the rate of profit falling is often wholly combatted by increasing exploitation, or e=s/v. This, however, gives rise to stagnating real wages while the Capitalists get ever wealthier, sharpening class contradictions.

[-] communism@lemmy.ml 5 points 20 hours ago

Because they are subjected to market forces. I'm not referring to the decisions an individual worker in a coop might make—an individual may well decide to give away all their money and become homeless, that doesn't mean it's in people's interests to. In a market, you must compete with other businesses, otherwise you will be out-competed and not survive. The "profits" obtained by a coop are still surplus-value; all the laws of capital outlined by Marx are still at play. Marx's critique of political economy did not really hinge upon the specific boss/employee relationship; it's about impersonal domination of the market over people who live in a capitalist mode of production. In Capital Marx spends quite a bit of time talking about how even capitalists are subjected to and dominated by capital; the domination is impersonal, and the domination of (hu)man by (hu)man is only secondary to that impersonal domination.

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this post was submitted on 17 May 2025
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