Venezuela: Class struggle heats up over battle for workers’ control

Federico Fuentes, Caracas
25 July 2009
http://www.greenleft.org.au/2009/804/41392

On July 22, Venezuelan President Hugo Chavez again declared his
complete support for the proposal by industrial workers for a new
model of production based on workers’ control.

This push from Chavez, part of the socialist revolution, aims at
transforming Venezuela’s basic industry. However, it faces resistance
from within the state bureaucracy and the revolutionary movement.

Presenting his government’s “Plan Socialist Guayana 2009-2019”, Chavez
said the state-owned companies in basic industry have to be
transformed into “socialist companies”.

The plan was the result of several weeks of intense discussion among
revolutionary workers from the Venezuelan Corporation of Guayana
(CVG). The CVG includes 15 state-owned companies in the industrial
Guayana region involved in steel, iron ore, mineral and aluminium
production.

The workers’ roundtables were established after a May 21 workshop,
where industrial workers raised radical proposals for the socialist
transformation of basic industry.

Chavez addressed the workshop in support of many of the proposals.

But events between the May 21 workshop and Chavez’s July 22 recent
announcement reveal much of the nature of the class struggle inside
revolutionary Venezuela.

Chavez’s announcement is part of an offensive launched after the
revolutionary forces won the February 15 referendum on the back of a
big organisational push that involved hundreds of thousands of people
in the campaign.

The vote was to amend the constitution to allow elected officials to
stand for re-election — allowing Chavez, the undisputed leader of the
Venezuelan revolution, to stand for president in 2012.

With oil revenue drying up due to the global economic crisis, the
government is using this new position of strength to tackle corruption
and bureaucracy, while increasing state control over strategic
economic sectors. This aims to ensure the poor are not made to pay for
the crisis.

Workers’ control

On May 21, Chavez publicly threw his lot in with the Guayana workers,
announcing his government’s granting of demands for better conditions
in state-owned companies and the nationalisation of a number of
private companies whose workers were involved in industrial disputes.

“When the working class roars, the capitalists tremble”, Chavez told the

To chants of “this is how you govern!”, Chavez announced his agreement
with a series of measures proposed by workers.

However, like an old train that begins to rattle loudly as it speeds
up, more right-wing sectors within the revolutionary movement also
began to tremble.

With each new attack against the political and economic power that the
capitalist class still holds in Venezuela — and uses to destabilise
the country — the revolution is also forced to confront internal
enemies.

The radical measures announced at the May 21 workshop were the result
of the workers discussion over the previous two days.

Chavez called on workers to wage an all-out struggle against the
“mafias” rife in the management of state companies.

Chavez then designated planning minister Jorge Giordani and labour
minister Maria Cristina Iglesias, who both played a key role in the
workshop, to follow up these decisions by establishing a series of
workers’ roundtables in the CVG industries.

The CVG complex is on the verge of collapse in large part due to the
privatisation push by pre-Chavez governments in the 1990s. State
companies were run down in preparation to be sold off cheaply.

In the Sidor steel plant, for example, the number of workers dropped
from more than 30,000 to less than 15,000 before it was privatised in
1998.

Chavez’s 1998 election stopped further privatisation. But the
government has had to confront large scale corruption within the CVG,
continued deterioration of machinery and, more recently, the sharp
drop in prices of aluminium and steel.
The plan drafted up by workers and given to Chavez on June 9 raised
the possibility of “converting the current structural crisis of
capitalism” into “an opportunity” for workers to move forward in “the
construction of socialism, by assuming in a direct manner, control
over production of the basic companies in the region”.

The report set out nine strategic lines — including workers’ control
of production; improvement of environmental and work conditions; and
public auditing of companies and projects.

Measures proposed include the election of managers and management
restructuring; collective decision-making by workers and local
communities; the creation of workers’ councils; and opening companies’
books.

The measures aim to achieve “direct control of production without
mediations by a bureaucratic structure”.

The report said such an experience of workers’ control would
undoubtedly act as an example for workers in “companies in the public
sector nationally, such as those linked to hydrocarbons or energy
companies”.


Bureaucracy bites back

Sensing the danger such an example represents to its interests,
bureaucratic sections within the revolutionary movement, as well as
the US-backed counter-revolutionary opposition, moved quickly to try
and stop this process.

A wave of strikes and protests were organised in the aluminium sector
during June and July, taking advantage of workers’ disgruntlement with
corrupt managers and payments owed.

The protests were organised by union leaders from both the Socialist
Bolivarian Force of Workers (FSBT), a union current within the mass
party led by Chavez, the United Socialist Party of Venezuela (PSUV),
and those aligned with opposition parties such as Radical Cause.

Revolutionary workers from Guayana condemned the unholy alliance of
bureaucratic union leaders and opposition political forces, which
aimed to stifling the process initiated on May 21.

This alliance was supported by Bolivar governor, retired General
Francisco Rangel Gomez, who called on the national government to
negotiate directly with local unions.

Opinion pieces began to appear in the local press, calling on the
government to once again make Rangel president of the CVG in order to
bring “stability”.

The alliance between Rangel and union bureaucrats in Guayana is long running.

Officially part of the Chavista camp, Rangel has long been accused of
being corrupt and anti-worker. During his term as CVG president before
becoming governor in 2004, Rangel built up a corrupt clientalist
network with local union and business figures.

He stacked CVG management with business partners and friends.

While on the negotiation commission to resolve the 15-month long
dispute at Sidor, Rangel ordered the National Guard to fire on
protesting Sidor workers.

Also on the commission was then-labour minister and former FSBT union
leader from Guayana, Jose Ramon Rivero, who was similarly accused by
Sidor workers of siding with management.

He was also criticised for using his position as labour minister to
build the FSBT’s bureaucratic powerbase by promoting “parallel unions”
along factional lines and splitting the revolutionary union
confederation, National Union of Workers (UNT).

In April last year, Chavez disbanded the Sidor negotiation commission
and sent his vice president, Ramon Carrizales to resolve the dispute
by re-nationalising the steel plant.

Rivero was then sacked. Today, he works as the general secretary in
Rangel’s governorship.

The forces behind Rivero and Rangel hoped not only to stifle the
radical proposals from the May 21 workshop, but also remove basic
industry minister Rodolfo Sanz.

Sanz has moved to replace Rangel’s people with his own in the CVG management.

In the recent dispute, Sanz accused aluminium workers of being
responsible for the crisis in that sector. He worked to undermine the
proposals of the roundtable discussions.

After several days of negotiations union leaders — essentially
sidelining the workers roundtables — Sanz agreed on July 20 not only
to pay the workers what they were owed, but also to restructure the
board of directors in the aluminium sector.

Through this process, the radical proposals for restructuring the CVG
appeared to have been push aside — which suited both Sanz and Rangel.

Revolutionary leadership

However, Chavez intervened with his July 22 announcement, which came
after a meeting with key ministers and advisors involved in the May 21
socialist transformation workshop.

Chavez said his government was committed to implement the
recommendations of the “Plan Socialist Guayana”, placing himself
clearly on the side of the workers.

He said the workers’ proposals, embodied in the plan, would “guide all
the new policies and concrete and specific measures that we are
beginning to decide in order to consolidate a socialist platform in
Guayana”.

When a journalist directed her first question to Sanz regarding the
plan, Chavez stepped in to respond, by-passing Sanz and handing the
microphone over to Giordani, who many revolutionary workers identify
as strongly committed to the process of socialist transformation.

Rangel, who had been at the May 21 workshop, was not at the July 22 meeting.

Chavez also appeared to differentiate himself from other sectors
within the revolutionary movement, such as those behind the “A Grain
of Maize” daily column, whose authors are linked to a political
current involving oil minister Rafael Ramirez.

This current has recently been vocal in arguing that socialism simply
entails state ownership and central planning from above — with minimum
participation from workers.

For Chavez, state-owned companies “that continue to remain within the
framework of state capitalism” have to be managed by their workers in
order to become “socialist”.

The Plan Socialist Guayana is Venezuela’s first example of real
“democratic planning from below”, Chavez added.

The battle in Guayana is not over. Workers from the Alcasa aluminium
plant told Green Left Weekly that management at aluminium plants met
on July 25 to continue the process of restructuring agreed to by Sanz
and union leaders — in direct opposition to Chavez’s statements.

Other fronts of intense class conflict have opened up. Various
struggles have emerged involving different forces and interests in the
electricity sector, as well as the still-emerging communes, which
unite the grassroots communal councils, to name a few.

A central arena of struggle is the PSUV, which is in a process of
restructuring ahead of its second congress in October.

But the battle in Guayana may be one of the most decisive as it
involves the largest working-class population. This is in the context
of a revolution whose weakest link has been the lack of a strong,
organised revolutionary workers’ movement.


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