Producer co-operatives in South Africa: their economic and political limits and potential

Title: Producer co-operatives in South Africa: their economic and political limits and potential
Creator: Philip, T Kate
Subject: Cooperative societies -- South Africa
Subject: Producer cooperatives -- South Africa
Date: [1987?]
Type: text
Type: book
Identifier: http://hdl.handle.net/10962/75250
Identifier: vital:30391
Description: The social and political effects of mass unemployment in South Africa mean there is an urgent need for strategies of job- creation. In this context, the Congress of SA Trade Unions (Cosatu), the South African Youth Congress (SAYCO), and the National Unemployed Workers' Co-ordinating Committee (NUWCC) have all expressed support for producer co-operatives, which are not only seen to have the potential to create jobs, but at the same time, are seen as providing a democratic alternative to capitalist enterprises. Thus firstly, this dissertation is exploring the potential for producer co-ops to fulfil these roles. However, for co-ops to make any contribution at all, they have to be economically viable. Thus this dissertation also attempts to analyse the terms on which this may be possible. In Chapter One, I analyse the roots of mass unemployment in South Africa, locate the problem and its effects within the framework of the current economic and political crisis, and analyse state strategies for overcoming this problem. I then turn to analysing the social and psychological effects of unemployment, and the implications of this for the growth of democratic organisation in the factories and township communities. I look at the strategies emerging for organising the unemployed, and conclude that the potential to organise the unemployed hinges largely around the extent to which unemployed workers' organisation manages to create jobs. In this regard, co-ops are a strategy of job creation that allows the unemployed to take the initiative in creating their own jobs, and on terms that build different forms of work organisation. On the basis of the priorities defined by the NUWCC, I then turn to analysing the limits and possibilities of co-op production. In Chapter Two, I address the theoretical issues that have emerged in relation to co-ops in capitalist society internationally, and attempt to analyse the reasons for their widespread economic failure, and for their tendency to degenerate into capitalist enterprises. From this, I draw out the potential terms on which collapse and/or degeneration can be countered, and refer to Mondragon in Spain and Lega in Italy as case studies. I then look at the potential political role co-ops can play, and conclude this chapter by focussing the issues discussed onto South African questions. In Chapter Three, I attempt a typology of co-op development in South Africa today, highlighting the extent to which a broad range of social forces see co-ops serving their own interests. Then, on the basis of a list of production co-ops in Addendum A, I analyse some of the overall features of the democratic co-ops that do exist at present, and point to the existence of degenerative tendencies in the South African context, with specific reference to Thusanang. I then focus on three case studies - the Pfananani co-ops, a carpentry co-op, and Nonthutuzelo. Each of these co-ops has arisen under different conditions, and they illustrate different aspects of the issues co-ops in SA will have to address if they are to survive. Chapter Four focusses on the production co-ops of the Sarmcol Workers Co-op (SAWCO), particularly the t-shirt co-op. The analysis of SAWCO constitutes the main case study of this dissertation. I have prioritised SAWCO because at the time I began the research, it was the only co-op with structural links to a Cosatu union; it is a co-op that arose out of the context of a workers' struggle, and contains important lessons for the establishment of co-ops with a clear relationship to democratic organisation. Furthermore, it relies on the 'solidarity' market to sell its products, and highlights certain important features and contradictions within this market. Finally, it highlights key issues in relation to the structures of ownership and control in democratic co-ops. In my conclusion, I attempt to draw together the material in the dissertation as a whole. I apply the theoretical discussion to the South African context, assess the implications of the nature of SA's economy for the development of co-ops, and attempt to provide some pointers to the terms on which democratic co-ops can be economically viable, thus creating jobs, at the same time as making a broader contribution to the extension of democracy in South Africa.
Description: Labour studies research report (University of the Witwatersrand); v 4
Format: 176 pages, pdf
Publisher: Sociology of Work Programme, University of the Witwatersrand
Language: English
Rights: University of the Witwatersrand
Rights: No part of this publication may be reproduced or transmitted in any form or by any means without prior permission from the publisher

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