Worker Cooperatives as Alternative Production Systems

Abstract

This article assesses the role of worker cooperatives in reviving industrial production. Although the focus is on the performance of worker cooperatives in Kolkata, India, the study tries to examine the features of such organizations to understand their strengths and weaknesses. Kolkata was once a premier industrial center, but it has witnessed a rapid decline in industries since the 1970s. In some cases, workers attempted to save their jobs by forming cooperatives to manage their industries. Five such cases are discussed in this study. Four of the organizations still exist, whereas one failed in the late 1990s. These cases help in understanding the conditions needed for the survival of such organizations. Support from the state, availability of financial capital, and facilities for marketing are seen as some of the prerequisites. At the same time, the most crucial factors for survival are support from trade unions and maintenance of internal democracy in the decision-making process.