Ask Prof Wolff: The Transition to Worker Ownership

A Patron of Economic Update asks: "I’d like to ask a question because it seems to me that whenever a situation occurs where unionized workers try to take over a business from their employers, offering to buy it, the employers would rather shut down than sell to the workers. Is there an economic reason for this? Even small businesses have had this happen where I don’t think they have a general anti-union strategy. Thank you!"

This is Professor Richard Wolff's video response.

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“Marxism always was the critical shadow of capitalism. Their interactions changed them both. Now Marxism is once again stepping into the light as capitalism shakes from its own excesses and confronts decline.”

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[alloomis]

anarcho-syndicalists have been singing this song for well-over 100 years, now. and worker co-ops have appeared here and there. but they do not flourish in a political atmosphere of 'capitalism.' they are not a cure, not even a band-aid.
once you get a political umbrella of democracy, various kinds of socialist enterprise become attractive. but you must first break the grip of wealth from the law of the nation.

[oursalvationisinunity]

We are divided and manipulated, but we can change everything, but only all together! Friends, the International Social Project CREATIVE SOCIETY is gaining tremendous momentum in the world. People from different countries, nationalities and religions are coming together to build a just society. Only together we can change our world!

[xvx]

My aunt recently did this actually. She sold her business to her employees for $14, 000, 000.00. It was really win-win because now she gets to retire comfortably and her employees get complete control over the company and its profits. Many of her employees were her friends so she was actually the one who initiated the sale.

[gariochsionnach]

Jeremy Corbyn will save the UK if he becomes PM - alas instead we have one corporate lame-duck after another!

[petersepall]

The real question is how do we strategize against a small group of sociopaths who would rather see the extinction of the species than give up their power and the delusional ego trips they derive from it. Any positive functional change will be opposed regardless of how well it might work.

[GhostOnTheHalfShell]

At least at the local level, can credit unions play financier to coop transitions? Or even something a bit more beefy than a go-fund me? Like a bond or sommat.

[crimony]

Just buy some shares of stock and vote them. There are plenty of corporations where you only need 10% of the shares to gain effective control of the company.

[davidluckens]

great video-especially when one considers how much dirt cheap money the FED has poured into the "shadow economy /casino" on wall street over the past decade or so-As the professor often says, "the problem isn't getting the money to do projects which directly benefit the general public, its the lack of political will to do so.We need to furlough the ideological goddess, TINA, and get on with these democracing enhancing projects.

[nickdac]

There is currently nothing stopping a group of people; employees; friends, starting any type of cooperative enterprise they wish! Only obvious barriers include; initiative, creativity, business acumen, and courage to face risks, uncertainties and challenges inherent in being an entrepreneur and business owner!

[interstellarphred]

What happened to the Chicago and North Western Railway? "employee owned" used to grace the logos on the rolling stock. there is a case study for us.

[jeromyrutter]

I remember last year or the year before DaW posted a video that mentioned an English study of CoOps around the world, and in that study it was said that coops are more stable and more capable of enduring recessions and such. If you wanted to leave your legacy intact, selling to the workers would be the better bet.

[Roxor]

I like the idea of requiring that the employees get the right of first refusal when selling a business. Take the idea and apply it to housing and give the tenants the right of first refusal when the house gets sold.

[hank-zw]

Thanks. This is the kind of discussion we should be having.

[ottocubed]

Tremendous explanation professor Wolff. Thanks!

[clarestucki]

I've never heard of any union buying the company that their members work for. but more power to them! All they've gotta do is buy all the company's stock, and they can run it however they wish.

[PartisanGamerDE]

I think with the advent of ever more capable AI this concept might be outdated. I think our policy in the coming decades must become one of an aggressive transition towards a post-monetary post-work society.

[jakeshota]

I like the idea that a community won't be potentially let go or displaced by a new owner or no owner of the company, but when EVERYONE'S TAX DOLLARS is used to fund a business that is newly run by people that had no experience running that business, I see problems there. Even if they were competent to run said business, they aren't immune to their business failing and I wouldn't want people's tax dollars, who would have no say in the running or profits of that business, to potentially see a business that they funded go under.

[arrowgoldenbird]

Will the workers borrow from a bank? How much of a pay cut would the worker have to bear?

[seamusmcfitz]

If workers were so great at ownership they would have started their own companies.
Workers are risk averse, not good at organizing, have poor work ethic, low capital funds, no business savy, no real discernible skills....
They are workers for a reason...and thus should stay workers.

[jeffthecoder]

If corporations were mandated in such a way that any employee they ever hire must be given decision making power in said company, many established companies would refuse to hire teens and young adults. All that would be left for teens and young adults would be the gig economy..ie no benefits, no guarantee of hours, no paid time off, nothing. Wake up