In Defence of Marxism

Venezuela's experiments with workers' co-management and in some instances workers' control, are at the cutting edge of the global movement against capitalism. With the bosses' lockout in 2002-2003, which shut down much of the Venezuelan economy for a period of two months, hundreds of factories were closed down and workers turned out onto the streets to fend for themselves. However, workers have stepped up to the challenge and it is estimated that some 1,200 factories have been taken over and occupied after being shut down. In 2005 the Chavez government initiated a series of decrees to allow for expropriation of industry and workers' co-management in the interests of 'public utility.' Inveval  is a valve manufacturing company that has been under workers' control since April 2005,  Here activists discuss  their struggle, their history, their experience of workers' control, the challenges they face  and the broader question of how workers work out strategy to transform Venezuelan society in the struggle for 'Socialism in the 21st Century'.

Meetings between the state sector, president Chávez and the Commission for Economic Planning began last April. The aim was to follow up the different enterprises of social production, such as INVEVAL. The balance of the meeting was good for the workers of the valve factory; it has allowed them to directly inform the president about the production problems the factory faces - problems mainly generated by the lack of support provided by the government bureaucracy. The ineptitude and lack of revolutionary commitment of a sector of the oil bureaucracy was exposed.

Six months has passed since the first meeting at Presidential Palace Miraflores with President Chavez and the Planning Commission. This time around the concerns of the comrades at INVEVAL had grown bigger, because the productive situation at the factory had not improved much and the support promised by the bureaucracy, following Chávez's instructions, had not materialised either.

Prior to the meeting at Miraflores, the comrades were informed of the items on agenda: the question of the socialist enterprise, the nature of ownership and social character of the socialist enterprises, the role of the workers in the revolution, the wage scale in INVEVAL, the growth in the number of workers at INVEVAL, the price of the valves, the distribution system, production costs, as well as the relation between income and expenses and the production curve.

The meeting with President Chávez, the ministers and the Planning Commission began late in the evening. Firstly, the President highlighted the revision and the increase in the national budget due to the need to develop the country economically, politically and socially, which requires a greater effort. He announced, in that sense, that he had sent the "nation's first socialist plan" to the National Assembly. He said that socialism must be built with decisiveness, to go from capitalist anarchy to the centralised planning of the economy, to later define what model of socialism will be followed. For this, three fundamental categories must be considered:

1) The concept or category of property, in this sense the property must be social and must not be confused with cooperatives, as these do not yet have a genuine socialised character; social property has two forms: direct, when it is exercised by the people, and indirect, when it is exercised by the State in representation of the people.

2) Distribution. Goods and services cannot be considered commodities only for those who can afford them. Distribution should be based on a permanent exchange to meet the needs of society.

3) Consumption. A productive economy is necessary to improve the quality of life of the people.

After this introduction, president Chávez went onto review the situation faced by the different companies of social production. A series of inefficiencies came out, above all in the area of milk processing, which is of extreme importance at this moment in time due to the lack of milk products in shops and markets. The workers pointed out that the main reason for this was because the national producers refuse to supply the processing plants. Chávez's response came straight away: "without conflict it is impossible to change the world. Strong measures must be taken against capitalism; quick action. If you have the government then what is preventing us from sorting out the problem? I want you to present me with an expropriation decree for the five or ten most reactionary milk producers. Let us occupy their lands with the army; if they use violence then we will confront them."

An example to follow

When the turn came for our comrades at INVEVAL, Chávez focused his questions on the political plane saying that now this is more important than productive matters. He was interested in knowing how the wage scale works at the company; it had emerged during the meeting that in the other companies the wages of the workers depended on their position within the company. The comrades explained that at INVEVAL all workers, from the president to the people who clean the toilets, receive the same wage. Chávez ask for a round of applause saying: "you have truly understood the object of this process".

He also congratulated them for the way the company is being run by the factory council and, again, pointed out that they were the only ones to understand how things must be done, stating that they should be an example for the rest of the enterprises; that their experience must be publicised because that is how the socialist enterprises should be run.

After that, he added that INVEVAL was going to be 100% state property, though it would be kept under workers' control through the factory council, as it has been running so far. He said that the workers must be the vanguard of the revolution and that the enterprises must be points of leadership in the search for solutions in conjunction with the communities; they should be constituted as command centres for the surrounding communities (Communal Councils, Student Councils, etc.)

Finally, Chávez mentioned a few last things.

a) a percentage of production should be allocated for the areas in greater need, through decree or a different mechanism;

 b) if the bureaucracy becomes a hindrance, decisions should be taken in assemblies, written down and acted upon;

c) Workshops on management methods must be put in place, as well as appraisals and reports;

d) Setting up of productive "battalions" to control the land and its production;

e) Political debates, consciousness, egalitarian wages and salaries, social security fund, all in an enabling law;

f) setting up of workers' militias in every factory;

g) In addition to producing goods and services, it is necessary to produce a "new man". After this, he congratulated them all again and told them that he would like to film an episode of Aló Presidente (his weekly TV programme) at INVEVAL soon.

Many conclusions can be drawn from this, but perhaps, the most important one is found in the correctness of our appraisal of President Chávez and the Bolivarian revolution, Even at moments when Chávez seems to shift to the right (probably under the influence of the reformists that surround him) he is still very sensitive to the reactions of the people, in this case, from the workers; if these reactions are positive he is prepared to advance and correct course straight away. Chávez is an honest man who, like the Venezuelan masses, is seeking ideas for the revolution and a path that would lead us out of what none of us want; capitalism.

Unfortunately, Chávez is not a Marxist, as we have noted several times previously. However, it is undeniable, as this meeting clearly demonstrates, that upon seeing, through the experience at INVEVAL, an example of what the workers can achieve, he takes a hold of this with both hands and goes back to speaking about workers' control - but this time from a more left-wing position, accepting the comrades' argument for a 100% nationalisation and putting aside the cooperative model, which has been the banner of the bureaucrats and reformists.

In this sense, the intervention of the INVEVAL comrades was very timely; because if it had not been delivered in the way it was, it is quite likely that a good part of the process involving factories under co-management would have failed or, at least, it would have been completely distorted.  

The comrades presented the real face of the workers movement before Chávez. The comrades left a very positive impression on President Chávez, in contrast to the daily spectacle of the UNT trade union federation leader, Orlando Chirino and co., along with the co-management enterprises set up by the bureaucracy. Besides, they left the impression that they are serious people, with serious ideas and a correct method of building.

Another lesson that can be drawn from this is that even a small organisation like the Revolutionary Marxist Current can play a relevant role in the revolutionary process by using the correct ideas of Marxism. These events must be an encouragement to all comrades to redouble their efforts; we have taken the right path and are building; these are the first fruits of what could become a great harvest.