The President of Bolivia, Evo Morales, approved a law decree that will enable workers to take control of bankrupt or abandoned factories in order to set up social enterprises, including co-operatives.
The decree, marking the 62nd anniversary of the Confederation of Workers of Bolivia, is based on article 54 of the constitution adopted in 2009, and states that workers can reopen and reorganise enterprises that have gone bankrupt, are being liquidated or abandoned without justification.
“From now on workers will no longer be subject to owners’ bankruptcy threats when they do not wish to comply with the laws. If they are threatened in this way, in case the enterprise goes bankrupt, the workers can become the new owners,” said President Morales.
The Minister of Productive Development, Teresa Morales also said the new decree would help workers set up social enterprises, right already stipulated in the Bolivian constitution.
Bolivian Minister of Labour, Daniel Santalla, agreed that this measure could lead to more private social enterprises.
President Morales also argued the new decree would protect employees from being subject of blackmail by owners who refuse to increase their salary on the ground that the enterprise is going bankrupt.
“Now if employers threaten them in this way – if the company is going bankrupt or is being closed, they can become owners. These will be new social enterprises,” he said.
Mr Santalla added that this decree was accompanying a ministerial resolution against companies that fail to respect the rights of employees, such as forming trade unions. Those who fail to respect to comply with the new resolution will no longer receive support from the state in exporting their products. According to the Minister, sometimes companies go bankrupt due to bad management or lack of innovation. He revealed that another ministerial resolution would restrict the use of CCTVs within the workplace, if they affected the dignity of workers.
Last year the Bolivian Senate passed a new co-operative law designed to bring together all co-operative acts that the co-operative movement had managed to insert in the Political Constitution of the State. The new law also demands co-operatives to register as limited liability companies and show this in their naming.
Photo: Evo Morales signing the Co-operative Act.
