Part II
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5. Democracy
For the middle classes the fact that there was a problem in Argentina was undeniable. But this was not seen to be due to capitalism, but to moral issues which were superimposed on it - like the brutality of the military regime. Furthermore the crisis was not seen as a question of class struggle, but as the problem of the corrupt 'trade union barons' who were asking too much. In fact, this perception became the bourgeoisie's pretext for its need to carry on and intensify its attack against a working class reluctant to be sacked and sacrificed at the altar of the new monetarist and neo-liberal policies -- as was expressed in the Radical Alfonsín's electoral pledge to 'clip the wings of the trade union barons', and to deal with the problem of 'uncontrolled union demands'. Alfonsín triumphantly won the elections in 1983 with the support of the middle classes and the petit bourgeoisie but soon faced the problems of recession and inflation by prosecuting the neoliberal policies of his predecessors. In 1987 the Radical government restricted the wages to fight inflation and it introduced a second currency, the austral, a move which did not solve the inflationary crisis. Between 1983 and 1989 the wages of State employees were substantially reduced, while discontent and strikes grew. Unable to stop inflation, Alfonsin resigned in 1990.
In the same year the Peronist Menem was elected as president of Argentina in the midst of the economic crisis, with the electoral promise to stabilize the economy, devalue the peso, increase wages, and provide 'social justice' (words which appealed to the memory of the old Peronist times). On the other hand, he assured the USA of his commitment to neo-liberal policies: With this commitment, the magic word 'justice', key word of the old Peronist class compromise, was deprived of any chance of a concrete backup.
In fact there was no choice for Menem. During the 1990s the International Monetary Fund intervened in Argentina in order to bail the country out of the debts that it had been piled up since the dismantling of the import-substitution economy. The enormous loans that were conceded to Argentina were conditional on the adoption of concrete steps ('Structural Adjustment Programmes') whose stated aim was to guarantee the influx of foreign capital to enable Argentina to pay back its international creditors. In order to make Argentina attractive to investors, the IMF recommended the stabilization of the Argentinian currency with respect to the dollar, a rise in interest rates and continuation of the process of privatization of state companies (water, gas, airports...) -- together with further cuts in State spending. Whatever the Peronist promises might have meant to the electors, Menem had to be subservient to the IMF's requirements. Under Menem the austral, which was then worth one ten-thousandth of a peso, was suppressed, and a different monetary strategy was taken. In 1991, the government passed the 'Convertibility Law', which fixed the ratio between peso and dollar to 1:1. New laws on state reform sanctioned more deregulation of the economy, the privatization of gas, water, telecommunications and the postal service. The government also removed all restrictions on the transfer of foreign capital in or out of the country. Menem dealt with economic 'inefficiency' with a reformulation of labour laws, which allowed the extension of the working day to 12 hours with no overtime paid, the possibility for employers to postpone weekend and rest days at will, deprived women and young people of labour rights (e.g. protection against dismissal), took away the right to paid days off and to strike and gave the employers the right to define job description to allow for introduction of multiple tasks. This practice heavily restricted those collective negotiations which still survived and rendered the workers more atomized and weaker in their bargaining with the employers. Industries, above all textiles, were allowed to relocate from the coastal towns to inland, where there was a "more tranquil labour environment'', and where labour regulations were less restrictive, with the conscious intent of making the country more attractive for investment.
Under this neo-Peronist government the exposure of Argentina to international competition was speeded up. In 1990 the government signed bilateral agreements (the Act of Buenos Aires) with Brazil that aimed to establish a new trade bloc modelled on the European Union. The following year Uruguay and Paraguay joined this agreement with the treaty of Asuncion which established the Mercado Comun del Cono Sur (MERCOSUR). Under these agreements it was decided to establish a custom union between the four countries by January 1995. All tariff barriers were to be dismantled between the four countries exposing Argentina's industry to the full competition of Brazil. However, Menem's policy of a highly restrictive monetary policy to counter inflation meant that capital was unavailable for the medium and small companies to prepare themselves for liberalization. The weakest industries were closing while capitals were concentrated into large Transnational Corporations and domestic 'Great Economic Groups'.
By 1993 Menem's neo-liberal policies had begun to bear fruit. This dismantling of financial regulations, along with tough anti-labour laws, wholesale privatization and the pegging of the peso to the dollar, had transformed Argentina into an enticing prospect for foreign investors. With diminished investment opportunities due to the recession in the USA and Europe, international capital flooded into Argentina, preying on the national services, land, natural resources (oil) sold off by the government. The government of Argentina was duly praised by the IMF and the USA In contrast to the period under Alfonsín, in which the incomes of all but the very rich failed to keep pace with hyper-inflation, Menem's rule was a time of relative prosperity for the majority of the Argentinian population. With the stabilization of the peso the middle class no longer had to fear inflation eating into their savings and financial deregulation opened up opportunities for profitable investment for even small or moderate savers. For the part of the working class which was still in secure jobs, wages began to rise faster than prices.
However, a large part of the wave of foreign capital encouraged by Menem's neoliberal policies did not go into productive investments. Foreign capital was more interested in buying up industries if they could quickly make profits by running them more efficiently -- i.e. by sacking half the work force and making the other half work harder and more flexibly -- rather than in building new factories and equipping them with up to date machinery. As a consequence, the inflow of foreign capital tended to increase, rather than decrease, unemployment at the same time as depressing wages for those at the bottom of the labour market. Between 1991 and 1999 both unemployment and underemployment more than doubled according to official figures.
As a result, the burst in economic prosperity of the early to mid 1990s was far from being evenly spread. Those amongst the Argentinian bourgeoisie and middle classes who were in a position to become local agents for international capital -- bankers, lawyers, consultants, accounts, managers and politicians -- were able to make a fortune. At the same time those who lost their jobs through downsizing and public spending cuts found themselves swelling the ranks of the poor. Inequality rose sharply between the richest and the poorest. In 1990 the richest ten per cent of the population had an income fifteen times greater than the poorest ten per cent. By 1999 the richest ten per cent had increased their income to twenty three times that of the poorest tenth of the population.
With many of its more militant sections 'downsized', the bulk of the Argentinian working class faced the prospect of steadily rising wages if they kept their heads down or the poverty of unemployment if they did not. As a consequence, militancy declined in the workplace and, as we shall see, the site of struggles shifted to the poor and the unemployed.
Yet this burst of prosperity under Menem was to be short lived. The flood of international capital into Argentina had allowed Menem to adopt more expansionary monetary and fiscal policies. Although a large part of the money pumped into the economy by higher public spending or through tax cuts would end up being spent on imports, thereby increasing the demand for dollars, this would be offset by foreign investors wanting to sell dollars for pesos in order to invest in Argentina. Such expansionary fiscal and monetary policies then gave a further boost to Argentina's economic prosperity which in turn attracted foreign investors anxious not to miss out on the profits to be made from this 'newly emerging market economy'. However, in the mid-1990s the dollar began to rise against the other main world currencies dragging the peso up with it. As a consequence, Argentina's exports lost their competitiveness leading to a strong deterioration in its balance of trade.
The rise in the dollar had caused similar problems for the 'newly emergent market economies' in Asia and in 1997-98 led to financial crises in Indonesia, the Philippines, and South Korea. After the crisis reached Russia in 1999 fears spread that next in line would be Argentina. As a result the financial flows into Argentina went sharply into reverse as foreign investors sought to get their money out of the country before the peso collapsed. The IMF stepped in with a $40bn loan to defend the peso and settle the nerves of international financiers. But in return the IMF insisted on major cuts in public spending, further privatization and more liberalization. As a consequence, Argentina went into recession. The "virtuous circle" of high levels of foreign investment, expansionary policies leading to economic growth and more foreign investment went into reverse.
The IMF-inspired austerity measures deepened the recession, discouraging foreign investment that then led to the IMF demanding even more austerity measures before it would roll over its loans. Tension increased between the Argentinian government, increasingly unable and unwilling to make further cuts to appease the IMF, and the IMF, increasingly reluctant to bail out recalcitrant governments. In 1999 the Radical de la Rúa became President, after Menem was involved in a corruption scandal. In his electoral campaign, de la Rúa promised "order and honesty" in Argentina's political affairs. However, the scandals which were going on discouraged investors and undermined Argentina's economic credibility. By November 2001, with the government unable to impose further cuts without causing public outcry and fearing that the IMF would carry out its threat of not renewing its loans, (leading to the collapse of the peso), the well-off started converting their credits from peso to dollars or other reliable currencies and withdrawing money from the banks. In order to prevent a collapse of the banking system, de la Rúa imposed the corralito, restrictions on the money that could be withdrawn from the banks ($1,000/month).
The middle classes, who had supported policies of successive governments since the 1970s, and who had prospered quietly during the 1990s, were now hit with the full brunt of the crisis, losing not only their savings but often also their jobs. Swathes of the Argentinian middle class were proletarianized almost overnight! Driven in to the street, the middle class now joined the protests of the working class (the piqueteros) that had been going on since 1997.
6. The Piqueteros.
The new forms of organisation which emerged drew some of their very strength from the drastic nature of this "neo-liberal" restructuring. Whilst the economic experts were accusing Argentina's political class of implementing the changes too slowly, the bourgeoisie in fact created a new problem for itself by having implementing them too quickly. When a large number of closures and redundancies hit almost overnight, the workers laid off en mass found themselves with common needs in a new situation where their social ties and continuing links of solidarity could be turned into new form of organisation. The mass worker becomes the mass unemployed worker. The first visible expression of these proletarians against their growing immiseration were sporadic street riots. In 1989 the province of Chubut in Patagonia exploded in a week of struggle, which ended with the resignation of the governor. The same year riots started in Rosario and Buenos Aires, where supermarkets and grocery stores were looted. From then on riots occurred throughout the country. However, the growing number and worsening situation of unemployed workers deprived of their means of survival necessitated more concerted action.
Whilst the tactic had been used from about 1993 onwards, the co-ordinated piqueteros movement was born in Cutral Có and Plaza Huincul, two towns of Patagonia created around the State oil company, Yacimientos Petrolíferos Fiscales. It was privatised by Menem in 1994-95, and as a result 80% of its workers were suddenly laid off. Privatisation means more efficiency: whilst in the past it was the only major oil company in the world to report losses, due to the high wages and benefits conceded to its workers, after privatisation its profits rocketed while the living standard of the populations of the oil towns declined. By 1996 the two towns had an unemployment rate of 37.7%. The first riots exploded in June 1996 when the local government failed to reach an agreement with a Canadian corporation to set up a fertiliser plant in the area. The rioters were placated by promises made by the authorities. In March 1997, a teachers' strike against layoffs and wage reductions evolved into the first of the now famous road blockages. When the police attacked the blockade, the towns of Cutral Có and Plaza Huincul mobilised in support. The popular assembly set up to negotiate with the authorities demanded jobs, tax moratoria and investments in the oil company. They decided to demobilise when some promises were made, including the creation of 500, (badly paid) jobs. The moderation of the assembly was due to the fact that people could see no good, in the situation, in an escalation of the protest. By the same token, the intervention in the assembly by local politicians was accepted.
The piqueteros' tactic of blocking roads was soon being taken up in other towns. It was used in Jujuy and Salta the following year, provinces in the north of the country. In Jujuy on May 7th 1997, piqueteros blockaded the Horacio Guzmán Bridge, Argentina's main link to Bolivia. Over the following four days, protests and blockades spread through the province, amongst both employed and unemployed. The movement was attacked by troops, (tear gas and rubber bullets were used), but provincial officials eventually capitulated and promised to create 12,500 jobs and increase welfare. The spread of piquetero tactics and their forms of organisation moved first through the provinces, but then came closer to the capital when they reached La Matanza, in Greater Buenos Aires. This sprawling industrial suburb, with a population of two million, had been badly affected by unemployment. Here piquetero numbers grew substantially to 4,000-6,000 people. This new area of piquetero activity was also important because piquetero actions could now strangle the capital by blocking its major arteries, all within easy reach. We should also mention at this point events in Tartagal and Mosconi, both towns were occupied and held for a few days from the police in winter 1999/spring 2000, by forces including piqueteros. After the death of a demonstrator in November 2000, Tartagal was again rocked by riots -- government buildings were set alight and cops taken hostage.
Typically, a piquetero highway blockage would have demands such as the withdrawal of police, the repudiation of state repression, the release of jailed comrades, unemployment benefits, food, health facilities, and demands for both ?genuine? jobs and Planes Trabajar or Work Plans -- the later being effectively small unemployment subsidies (120-150 pesos a month per family, only available to those with families, and paid in "Lecops", a national parallel currency or "bond") . The state would give out these work plans to defuse situations. Over the years, piquetero actions for Work Plans have often met with success. The subsidies are given to heads of families -- say, 100 out of 800 piqueteros -- rather than forming the basis of a universally-shared benefit, miniscule though it would be. Work Plans are normally intended to be taken in exchange for light public works, like municipal gardening or the upkeep of roads. They amount to a pittance, representing in their value about an eighth of the material needs of a family of four. Echanges et Movements however, also mention "organised looting" by piqueteros in 1999, and an escalation of violent, direct appropriation of goods in 2000, especially around the December events of 2001. Goods vehicles trapped in pickets were looted, warehouses and supermarkets attacked in a concerted way, and anger expressed in attacks on government buildings. Already in June 2000, a violent riot in General Mosconi which left 2 dead, led to a country-wide response with 300 road-blocks. We must not forget these more violent and direct expressions of piquetero organisation, some of which may be more hidden.
Small groups of piqueteros, organising locally in their neighbourhoods in the first instance (eg MTD Lanús -- MTD stands for Movement of Unemployed Workers), are often affiliated to a larger "Coordinator" group, which is in turn affiliated to one of the four major piquetero confederations. These are the CCC (Class Combative Current) group and the FTV (Federation for Land and Housing); the Bloque Piquetero, and the Coordinadora Anibal Verón, which once formed part of the Bloque Piquetero but which has increasingly distanced itself from it, insisting on its total independence from parties and unions.
The FTV has a large membership and wide support in La Matanza, in the west of Buenos Aires province. It also includes groups under the banner "Barrios de Pie" -- neighbourhoods on their feet. The CCC is the (relatively autonomous) organised piquetero union arm of the (Maoist) Revolutionary Communist Party (PCR), It too has a strong base in La Matanza, and also in the northern provinces of Argentina. The Bloque Piquetero gathers together dozens of piquetero groups including the Polo Obrero, (linked to leftist parties such as the trotskyist Partido Obrero -Workers' Party), and a handful of other leftist groups.
The CCC and FTV-CTA group are considered the most reformist elements of the piquetero movement, with a tendency to negotiate with the government. Divisions within the movement over this led to the suspension of the third National Assembly of piqueteros planned for December 2001. A report from the Coordinadora Anibal Verón describes Anibal Verón's eight-hour picket of seven bridges and access routes to Buenos Aires city on the 21st November 2001, contrasting it with another action, by the FTV grouping, which had started a few days before. The FTV piquete had in fact allowed transport to circulate on one side of the street from 5am to 10am and again from 5pm to 9pm, so as not to cause too much disruption in La Matanza. But, as they say, "While in La Matanza the third day of roadblocks -- with alternative routes -- passed without a response: the firmness and organization of each of our bridge-blocks meant that, in spite of public declarations by the Ministry of Work that they would not receive the unemployed because we were 'blocking roads', in a few hours the same Ministry was sat in front of us at a negotiating table, publicly ratifying the commitment we sought." The statement goes on to criticise the FTV picket: "That which is generated by a road-block -- born as a tool of the unemployed with which they can interrupt the movement of goods via national highways, to generate economic problems which, from a position of intransigence, forces the government to make concessions to the demonstrators -- in the hands of these sectors ends up being a blocking -- of the pavement, by the side of the road, while transport freely circulates!?"
Importantly, Anibal Verón, (and perhaps other piquetero groups), eschew mediation, literally refusing to meet the state on its own terrain, forcing government negotiators to come to the pickets. This helps to ensure that negotiations over limited aims take place on the piqueteros' terrain politically. "Work Plans" and the rest are given out to families, rather than individuals, everyone can take part in the negotiations, the work plans are given out in a transparent manner, and everyone can decide on when to clear the road etc. Limited aims, which from the outside look to be merely within the reformist dynamic of capital, are achieved with an understanding of the needs of proletarian struggles (such as refusal of mediation), which point to the importance of the process of struggle -- social recomposition against the atomisation of capitalist social relations -- as the real subversive current.
Groups like Anibal Verón criticise the CTA and CCC piquetero groupings for sending delegations to put their case to both government and employers (for example in January 2002 CCC-organised piqueteros sent delegates to the oil company YPF-Repsol to demand 40,000 "genuine jobs", and that working hours should be shared between those working and those who had been sacked; and another delegation was received by the Casa Rosada to demand Work Plans and food and the release of political prisoners). More generally, we can also see the incursions of the official unions into the piqueteros movement as just an attempt at recuperation, or as an opportunity for cross-sector solidarity, maybe partly initiated by the base, which could eventually break free from its present limits. The bureaucracy may well have a need to increase its membership and leverage on the class by recruiting piqueteros under the banner of coordination and organisation, but piqueteros have their own reasons to understand the need for this coordination, one which, in a generalised proletarian offensive, could contradict the mediation of unions.
In February 2002 Duhalde, perhaps trying to regain some of the ground lost to mediating channels, declared that there would be a universal dole of 150 Lecops per family (piqueteros have demanded 380 -- both at pickets and in the assemblies). The contemptuous response to this measly benefit was clear in the two huge piquetero mobilisations of May 2002 when hundreds of roads were blocked. The governments' inability to implement a meaningful, universal level of unemployment benefit and its insistence on Work Plans has caused it endless problems. During De La Rúa's presidency, the Ministry of Social Development removed the administration of Work Plans from the local authorities in favour of their distribution by NGOs, partly to curb municipal clientelism in the province of Buenos Aires, and to limit the growth of small piquetero groups in the city. The policy backfired when unemployed organisations created their own NGOs to administer the plans and to set up their own social projects using the funds from them. This was a factor in the growth of the large and increasingly powerful coordinations of groups of unemployed activists in the poorest neighbourhoods, which form one aspect of the assemblies movement that we will discuss later. Today, many of the grassroots MTDs (Unemployed Workers Movements) such as the MTD Solano, part of the Coordinadora Anibal Verón, are making use of the work plans to set up projects in their own barrios, such as bakeries, metal and wood workshops, schools and vegetable plots, as well as running workshops to discuss political questions. The projects are staffed by piqueteros in receipt of work plans (direct to their bank accounts) who put the four hours a day they are supposed to do in exchange for the money to the service of their immediate communities. The northern town of General Mosconi is perhaps the most advanced in the use of work plans, with piquetero groups setting up around 300 projects. Here we can see that the organisation of the piqueteros is not demobilised by government concessions; the state does not have strong enough mediating structures to individualise people and recuperate them in a settlement. Whilst the moneys are given to heads of families or other individuals and go to their bank accounts, they effectively end up becoming funds for further collective, autonomous organisation. With the withering of mediating structures, the piqueteros, forced to meet their everyday needs autonomously, experience an almost constant state of mobilisation -- with the heightened level of communication between social subjects that this entails - in which the existence of the "political" as a separate sphere is increasingly challenged. Ironically, the very practical nature of official piquetero demands, (jobs, food parcels), are an expression of this, and are in fact the other side of the coin to the much publicised "rejection of politics", which seems to contradict them. Even though it forms part of the attack against the living standards of the working class -- is capital shooting itself in the foot by reducing the mediating structures of its state?
One problem with "work plans" on the other hand is that they sometimes help to further undermine the salaries and security of waged workers. One kind of Work Plan for women called Madres Cuidadores (caring mothers) is little more than a way to replace teachers on the cheap, and has been denounced as such by teachers' unions. We must also recall at this point that a neo-Peronist liberaliser like Menem was able to fall back on the semi-autonomous, tentacular Peronist neighbourhood organisations when he was attacking state provision, channelling funds through this network to cushion the effect. De La Rua, as we have just seen, had similar policies. Other bourgeoisies across the region have also opened the doors to NGOs, charities and aided the informal, grassroots sector as part of the same process of economic liberalisation. In this maybe the executives of capital lean too much on forms of organisation which they will find difficult to control in the long run.
However, we must not fall into the trap of simply cheerleading this process as the rediscovery of grass roots autonomy and empowerment -- the type of facile endorsements we criticise elsewhere in this issue. The problem is maybe precisely there -- "autonomy". There is a tendency for this class experience to become merely the management of survival within capitalism, tied loosely into the system through aid, charity and clientelism, but understanding itself to be autonomous from capitalist social relations. Identifying capital narrowly with international capitalism, (multinationals, financial institutions, the US and EU bourgeoisie) and the comprador bourgeoisie which manage their operations within the country, "grassroots"experience may be "naturalised", seen as a given "thing". Capitalism is not seen as a social relation which includes all social interaction including those within the barrio, but a rapacious, exploitative class outside the barrio. To put it another way, the relationship of exploitation within self-exploitation is externalised. If the class can externalise this relationship it will always end up preserving capitalism, in preserving its life and rebelling against the "capitalist class". Another important feature of the piqueteros movement is the fact that it has become a node of struggle for different sectors of the class. People in work, especially those whose jobs are threatened, have participated extensively in piquetero actions, (as we noted, the first pickets were initiated by teachers). This is a critical point to keep in mind if we want to evaluate the long-term possibilities of the Argentinean movement. Although the work plans meted out to the unemployed may sometimes lower the wages of other workers, more importantly maybe different sectors of the class are recognising their needs in each other's struggles. The bourgeoisie is finding it very difficult to decompose the class into antagonistic sectors fighting over jobs. The reserve army of labour is not performing its designated duty! As an example of this solidarity, on the 4th of April 2002 a Bloque Piquetero march, in the coastal town of La Plata, passed by the provincial government building before heading for the Family Office, to offer its support to state workers on strike there. Protesting at cuts in overtime, wages and other benefits, the workers had taken over various buildings and were in permanent assembly. When the piqueteros arrived, the gendarmería were inside and the assembly had been suspended. But when the workers saw the size of the crowd which had come to support them, they shouted at the gendarmerie to leave and continued with their assembly. Piqueteros have also defended the occupied factories from eviction, pushing back police attacks on numerous occasions, as have members of local assemblies and other neighbours.
Although in the early years of the movement the state and the bourgeois press could manipulate broad middle class opinion against what was painted as a dangerous, lumpen-proletarian threat, the increased immiseration of the middle classes has narrowed the gap between the two sectors. The new possibility of this situation was evident in the practical solidarity of the events of December 2001on the streets. It emerged in the days following the national cacerolazo of the 25th of January, that the police had blocked Pueyrredón Bridge, the gateway to Buenos Aires, to stop hundreds of piqueteros crossing to join the cacerolazo in the Plaza de Mayo. Furthermore, on the 28th of January 2002, a march of piqueteros from La Matanza to the Plaza de Mayo was greeted and given food by the neighbourhood assemblies who accompanied them the rest of the way. The slogan "Piquete y cacerola, la lucha es una sola" (Picket and "pot-banger", the struggle is the same) was heard that day and soon became popular. In February 2002, after the announcement of the abandonment of the dollar-peso parity, a piquetero march coming into Buenos Aires from the poor suburbs, was again greeted by the "middle classes" of the centre of Buenos Aires with food and drinks. It was of course understood that the inflation that would result from the devaluation, (together with the effect on savings), would affect everyone. Whether these expressions of solidarity can be further concretised remains to be seen.
In order to discredit the piqueteros in public opinion and possibly to prepare the terrain for repression, the State has attempted to smear the movement. In March, in a calculatingly menacing tone, Duhalde stated that: "in the piqueteros movement we believe that there is a part of authentic protest which is becoming smaller....and another part financed by extremist groups. We have been told that the finances [for the piqueteros in Salta, north of Argentina] may come from the FARC of Colombia, or in other words, from narco-trafficking." It is important to note that a US military base is planned for the area of Salta that Duhalde is referring to; the same place where, last year, US marines carried out joint exercises with Argentinean troops. This rhetoric also serves to separate the "good" piqueteros from the "bad". The looting panic whipped up by the media following the December events (when rumours, intended to keep people off the city centre streets, flew around the poor Buenos Aires suburbs that "looters" were attacking people's home and were on their way; fires were lit on many residential street corners and people prepared to defend their blocks against attacks which never came) was another attempt by the state to split the piqueteros from the "middle classes". As we have seen from the links formed in January, the attempt failed.
On the 30th May, the piqueteros blocked 1,000 highways, bridges and roads throughout Argentina, as well as railway lines. Their mass mobilisation was accompanied on the same day by strike action by airport workers that brough Ezeiza, Buenos Aires' airport, to a standstill. President Duhalde indicated his impatience with piquetero tactics, saying that road-blockings could be tolerated no longer. In light of this, it is clear that the police attack on the piquetero action of the 26th of June, in Avellaneda, that left the young piqueteros Dario Santillán and Maximiliano Kosteki dead and some 40 injured, were not simply the work of "maverick cops". Importantly, thousands immediately descended on the Plaza De Mayo in response to the murders, growing to some 50 000 people two days later. The alert response to state repression reduces the options for the bourgeoisie.
7. The factories
Whilst the most striking and original feature of the Argentinian movement is the piqueteros, our interest in this highly organised and radical movement, based on disrupting the sphere of circulation of capital, should not blind us to the question of what the class as a whole in Argentina is doing. The aspects of radical practice in the movement which go so far as heralding new social relations should not make us forget to look at the totality. The question that has come up in recent months for observers of the events is -- what are the workers in the sphere of production doing? It is a fact that the radical organisations in the factories which we have discussed above in the context of the struggles of the 1970s, were severely repressed during the years of the military regime. Almost all the authors we have come across who spoke of the situation in Argentina today complain of a lack of militancy in the workplace. The complaint is that the unions are completely tied into the system, and so are cowardly and given to manipulating workers in tokenistic strikes, demos or days of action in order to both safely channel worker discontent and to increase their bureaucratic power. The reasons given for this situation in the work place range from the somewhat vague contention that the workers are simply sold into this official union structures (this, understandably, from a member of the independent motoqueros base union), to the belief that the workers in work are just too scared to lose their jobs; whilst Mouvement Communist sketch an effective class compromise recently patched up between Duhalde and workers in key sectors. They think that with the possible rejection of electoral politics "the support of the CGT, the only mass organisation capable of ensuring social peace" is essential. Its inclusion into the government is a possible hypothesis given the independent progress of the class struggle. This is why Duhalde is trying to make the middle classes, the petit-bourgeoisie and the workers of the state sector [organised by the CTA] pay for the State's fiscal crisis. He traces out a new "alliance of the producers" composed of the bosses of heavy industry, the workers in these industries organised by the CGT and some unemployed workers bought off by some precarious jobs within the state administration. "To fly the flag of this new Peronist settlement [Duhalde] didn't hesitate to promise the general secretary of the CGT -- Rudolpho Daer -- to withdraw the restrictions on bank accounts as far as they concerned salaries." We cannot at this point comment much more on this, although it is an important point to keep in mind. Some of the moneys saved in the huge cuts of the past two decades could well be used to try and buy off the diminished number of workers in key strategic industries like oil production. It also gels with the political events in Argentina since December 2001 -- the rejection of the Radical De La Rua, opening the way for the Peronist Duhalde to try and limit the damage of the uprising by re-opening the clientelist Peronist channels still connected to the workers, through the medium of the CGT.
We have mentioned the frequency of general strikes in recent years. Although union led and of course limited by the union's own agenda, we must not assume that the workers simply march in step behind their mediators. We note that railway workers have been on strike more than once over the last year, and in September 2002 the transport workers of Metrovia mobilised to demand a reduction of their working day to six hours, a concession they held until only a few years ago. There are also numerous, "hidden" strikes in small factories over closures, non-payment of wages etc.
We must not forget the instances of common piquetero struggles by (mostly) state workers and the unemployed in the provinces from the mid-90s onwards. Workers in state industries threatened with privatisation have also used road blocking tactics on numerous occasions, for example at Cutral-Co and Plaza Huincul, when the petrol company YPF was sold to Repsol. 36.8% of all road pickets between December 1993 and December 1999 were made by waged workers! The struggles of the state workers has been a major feature of the Argentinian movement and is still very much a live issue. It is a question intimately involved with state clientelism. As we have already noted, with the expansion of the state, the clientelist structure Peron tried to incorporate into his Justicialist settlement was partly achieved with the explosion of "phoney" jobs in the central state and local administration. More recently, Menem, no doubt to placate the IMF which was making business with the central state and so complaining about its spending, sacked 110 000 federal state workers (as well as 107 000 provincial state workers). He also transferred 200 000 teachers from the federal budget to local government budgets. In Buenos Aires province for example (where Duhalde was governor), the number of state workers rises substantially from 280 000 in 1991 to 400 000 in 1999, no doubt soaking up the 110 000 workers sacked from the central state in Buenos Aires. The need for the Peronist governors (and at one remove, the Peronist president) to keep their huge electoral clientele is the reason for these machinations. This reluctance to attack state jobs decisively show how deep the Peronist class settlement was rooted, even in the ultra-liberal Menem years. As we have seen however, the attack did start in the late 90s, but is still contentious -- recent negotiations with the IMF have revolved around the issue of the provincial budgets, the IMF asking for 60% cuts. One would think that more massive redundancies might ensue, but the game is not so simple for the bourgeoisie, with an insurrectionary movement in near permanent mobilisation. Duhalde's administration is squeezed between the IMF and the movements -- during a bout of negotiation with the IMF, one government negotiator complained that the IMF didn't understand that the administration is constrained by the fact that there are at least 30 actions a day in Argentina! Most workers may now be keeping their heads down at work but what has emerged is that many of them are involved through the neighbourhood assemblies. They take part simply as neighbours and also report on the workplace organising that does go on. For example, at one neighbourhood assembly meeting, a worker from the nearby Buquebus ferry service across the River Plate to Uruguay, described the actions that were being taken against redundancies and asked for support, to the assembly's great approval, as did another who worked at the Clarín newspaper. Many other workers take part in the cacerolazos as well, a form of protest usually associated with the "middle class". It is vital to keep these things in mind. Workers not actively in struggle at work may be in touch with the needs and actions of other sectors in struggle through neighbourhood organisations. Furthermore they take part in decision making, in demos and other organisations, as neighbours in concert with other neighbours, through these organisations. The positive thing in this is that a directly social dimension of struggle is available to many workers, one which looks beyond their specific, sectoral interests in particular industries. But the limitation may be that workers separate their everyday needs (which they see as belonging to their experience as neighbours), from their role as producers of surplus value at work. The later would have to be socialised too, and this understanding turned practically against capitalist social relations, to really paralyse the system.
The other form of worker organisation to discuss are the much publicised factory occupations. We must not forget that these occupations, and the startling expressions of solidarity that they have engendered, are few, but at the same time they do come out of a material situation now nearly universal for the Argentinian proletariat, hence their radical potential and their maybe inflated fame. The most widely reported factory occupations are those of Zanon ceramics factory in the province of Neuquén, and Buenos Aires' Brukman textiles. The Zanon occupation started when the 400 workers were threatened with losing their jobs as the bosses of the factory stopped paying them and effectively started winding down the business. The workers responded by occupying the factory, setting it in motion using the materials still inside. Within two days they had produced enough ceramics to pay all their wages for a month. They sell their products at 60% of their previous price through a network of young supporters who take them from door to door. Organised through their trade union, SOECN, though with no support from the national ceramic-workers' union FOCRA (part of the CGT), the workers have refused the owners? attempts to negotiate the fate of the factory. They have totally rejected the ridiculous terms of a possible return of the bosses -- wage-cuts, laying off 360 of the 400 workers. Instead they demand ?the immediate opening of the plant under workers' control, with no redundancies and no wage cuts, and with full payment of all outstanding salaries. If the bosses refuse to do this we will demand the nationalisation of the factory under workers' control, as part of a scheme to provide public works to build houses, schools and hospitals, all which are much needed in our province. In this way, we can help provide an answer to the problem of unemployment by creating real jobs." They propose to share the jobs amongst as many unemployed as possible. In the 2002 National Assembly of Piqueteros, a motion was passed that abandoned factories, or those that made many redundant, should be expropriated from the owners and self-managed by the workers. This has also been voted for on numerous occasions at the Interbarrial, the weekly general assembly of the neighbourhood assemblies. Zanon workers have, from the start, forged fruitful links with other groups and won great respect for their resistance and level of activism. In the first month of their occupation, October 2001, they joined piqueteros and other groups to blockade bridges and highways in Neuquén, and they have visited Buenos Aires and other cities to take part in assemblies and demonstrations. In return, as we have already noted, they have been successfully assisted by piqueteros and others in attempted evictions. The Brukman workers in Buenos Aires, capital, decided to occupy on the 18th of December 2001 after a collapse in wages in the autumn months, (they were being paid in "vouchers" of dubious value), and general contempt from the bosses. One 28 year old worker died after they refused to pay for vital medicines. They had not originally planned to set the plant in motion, but when an order of textiles became due in January, they decided to sell it to pay their wages. They have since taken responsibility for the plant - paying bills, fixing a boiler, and reorganised the factory floor to save on energy costs. "We maintain our struggle not through stubbornness but through principles and logic. The owners have demonstrated that they are incapable of running this factory -- all they know is how to exploit us, steal our money and invest in non-existent companies. If we could get the company on its feet, why couldn't they" Brukman has a total debt of 8 million dollars, and its major creditor is the State, with more than 2.5 million owed to the National Bank. So the demand we make is that the company be municipalized -- under workers' control. [Footnote: "Trabaja y vende", from Argentina Arde newspaper #8, 11th April 2002, p5] Like Zanon, as we have seen, they are not waiting for the state's endorsement, but are running the plant with the assistance of neighbours and others. They also offer to turn the plant's production to providing for the needs of the "community" -- especially for hospitals, schools and the unemployed. In La Mantanza, the closed Panificadora Cinco bakery was occupied by its workers with the support of the whole neighbourhood and put back to work to provide bread at reduced prices for the locals. There also, the piqueteros defended the occupation against a police intervention.
The workers' own statements and some of the information above point to the limits of self-management. Their belief that they can run the firm better than the bosses may originally come from their antagonistic relationship to the capitalist imposition of work on the shop floor. Running it better may mean making it easier for the workers to work there, contradicting the valorisation needs of the bosses. The fixing of the boiler may be one such example -- workers may experience this both as an everyday nuisance as well as recognising its need in the smooth running of the factory, whilst the bosses for their part want to cut costs. The boss is then both a problem because he doesn't recognise the workers needs, but at the same time, he is seen as a sort of philistine of production, who ignores the qualitative aspects of production. As the workers occupy their work place and put it into motion under their own control however, this once antagonist relationship based on their immediate and intimate experience of the production process becomes a necessary identification with the business in itself -- paying bills etc.
At this point the understanding of exploitation fixes narrowly on the incompetence of their particular bosses, as the workers, now in charge, need to prove to themselves and others that there's a better way of doing things. In other words, it is forgotten that the bosses are themselves constrained by capitalism to fuck their workers over. And when the workers forget this, they gloss over their own link, as "self-managers", to this constraining social relation. Isolated in this situation where an inward looking, voluntaristic mindset is required, the burden of exploitation may end up being doubly hard, and splits may emerge, with the most committed and militant driving the others and effectively becoming the new capitalist bosses as they try to make the (once collective) project work. Or the hard won collective control of the production process may not be relinquished resulting in the workers not having the necessary capitalist discipline required to make their enterprise survive in the unforgiving capitalist market. One way or another, the law of value will re-impose itself on the activity of the workers.
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