this post was submitted on 17 May 2025
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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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[–] [email protected] 30 points 4 days ago* (last edited 4 days ago) (1 children)

According to the UK's Labour Party's report on worker co-operatives in 2017, the main difficulty is access to credit (capital). It makes sense since the model basically eliminates "outside investors". It has to

  1. Bootstrap with worker's own investment, or
  2. Get investment from credit unions, or
  3. Have (national or local) government to back it up

Even in the above cases, the credit is often not large or cheap enough for the cooperatives to be competitive. (There are examples in the report that serve as exceptions, I highly recommend giving it a read.)

So at least from this, I'd think the appropriation of means of production would be more fundamental rather than being a simple result of some special way of organizing.

[–] [email protected] 4 points 3 days ago* (last edited 3 days ago)

It makes sense that this is a limiting factor. However, I think it's good that outside investors are kept out so that the business can serve the interests of its employees long term. Once the gears are in motion, I think it could work. Also, if these worker cooperatives were formed by people willing to work for basics like food and shelter initially, as well as equity, then they have a better chance.

[–] [email protected] 3 points 3 days ago

I think that's Richard Wolff's whole thing. I think he's communist? At least socialist.

[–] [email protected] 3 points 3 days ago (1 children)

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.

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[–] [email protected] 8 points 4 days ago* (last edited 4 days 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.

[–] [email protected] 22 points 4 days ago

In my country, the communist party (very watered down version of communism but still) is behind/aligned with most unions and they defend that companies should either be owned by the employees (co-ops) or employees should have a stake and saying on companies governance.

We have another left-wing party that even defends that failing companies should be returned to the employees, with government backed funding (loaned) if necessary to recapitalize the business and relaunch the company under employee governance.

[–] [email protected] 17 points 4 days ago (3 children)

Hey OP, there is a reply from a user from lemmygrad.ml which you cannot see as sh.itjust.works has defederated from 'grad. Check out the post on lemmy.ml to see it.

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[–] [email protected] 18 points 5 days ago* (last edited 5 days ago) (1 children)

The idea for a lot of communist ideologists is we don't need these hyper competitive corporations. The end goal isn't "higher GDP" (or more salary), it's "better quality of life". I think most unions are like that.

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[–] [email protected] 14 points 4 days ago

The overarching goal of communism is for laborers to own the means of production instead of an owning/capitalist class.

No, the overarching goal of communism is to create a stateless, classless and moneyless society.

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

No. At best, you could say that coops are a proto-socialist element within a capitalist society. Firstly, I am using the term "socialist" as separate from "communist" here, and secondly, a proto-socialist element is a very different thing from an enclave of socialism within a capitalist world.

The simple problem is that capital is capital. A capital is a self-reproducing social relation that competes with other capitals in a sort of evolution by natural/sexual/artificial selection on the markets. The problem is capital itself, and the solution is to destroy capital. Creating a new type of capital that is less destructive, or one that operates under less destructive modes is fine for countries where development has not reached to the point that they can directly gun towards communism. However, for advanced, and especially late-stage capitalist economies, the task is not to pursue further development of market forces, because market forces have already matured. The task is to eliminate market forces (although this may take time).

Coops may give a more equal distribution of wealth amongst the workers, but the aim of the communists is to abolish wealth, because the very meaning of wealth is that a private individual gets to command the labor of others. That is the fundamental social relation that money embodies and facilitates. The only way to remove the power to exploit other people's labor is to remove the ability to command labor. But if you cannot command labor, then money becomes worthless and your ownership of the coop doesn't mean anything.

Are organizations focusing on this and I just don’t know about it?

Yes. A quick google search shows examples such as the international labor organisation

If not, what obstacles are there that would hinder this approach to increasing the share labor collective ownership?

Part of the fundamental problem is just that the bourgeois class is not stupid. They want exploitable workers and profits. If you deprive them of that, prepare to face their wrath as they abandon all pretenses of human rights or fairness or the sanctity of markets.

[–] [email protected] 12 points 5 days ago (3 children)

It's really hard to generalize about leftist groups. The communists that feel this way have formed co-ops, or are cooperating with anarchists to do something like syndicalism (focused on unionizing existing businesses).

But the methods to start and grow businesses in a capitalist country inherently rely on acting like a capitalist. Getting loans requires a business plan that makes profit, acquiring facilities and other businesses requires capital. Local co-ops exist because they can attract members and customers that value their co-opness, but it's very hard to scale that up to compete at a regional level. It's not impossible, but it's hard to view it as an engine for vast change.

Communists that focus on voting are delusional (in my opinion) but like all reformists they view the existing government as the mechanism to make widespread change.

[–] [email protected] 6 points 4 days ago (1 children)

Communists that focus on voting are delusional (in my opinion) but like all reformists they view the existing government as the mechanism to make widespread change.

The only state in my country that has a communist party in power has been consistently leading national rankings in education and health, so I guess they're doing something right.

[–] [email protected] 4 points 4 days ago

Hey, that's great. I'm not sure it's a way to reach full communism, but good on them.

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