FagorMastercook Unionists Repressed. Workers Ready to Strike
What Mondragon's Capitalism Really Looks Like
The low-paid workers of FagorMastercook, a Mondragon company in Poland, have had enough. After taking action, a wave of repression followed in the factory.
Fagor's not a Workplace but a Workcamp: Mondragon Capitalists Fuck Workers in Poland. Strike is Imminent
Fagor is a large appliance manufacturer owned by the Mondragon "Cooperative" capitalist enterprise. In Poland it cooperatives FagorMastercook in Wroclaw. Currently there are serious labour problems in FagorMastercook. Members of the Warsaw group of Union of Syndicalists (ZSP) went Friday to a protest in front of the factory.
The place has become quite militarized. On Friday the firm had over 200 armed security guards from the notorious firm Impel there to protect the factory. The place was surrounded by metal barricades and each worker going in was throughly searched. Some employees say that there is often heavy security and searches.
Despite the heavy security, or perhaps because of it, about hundreds of workers joined in the demonstration on Friday. About 300 people, workers and supporters, were there after the morning shift, and about 200 before the afternoon shift began. The demo was organized by the August 80 union which has been negotiating with the firm for many months to get people a pay raise.
The workers in FagorMastercook have noted many instances of people being fired for belonging to unions or even just agreeing with their postulates. At least 20 members of August 80 were fired.
In FagorMastercook there are a few unions: Solidarity, August 80 and OPZZ Metalworkers. Solidarity and August 80 are calling for pay raises. In June a warning strike took place. Over 90 percent of the workers went on strike. Then a wave of repressions started. Besides firing some unionists and others who supported them, they started to pick out people, have supervisors stand behind them on the line watching their every move, threatening to fire them if they got even a second behind production. This sort of intimidation was probably used to show people that if they tried to organize themselves, the company would find any small pretext to fire them.
On July 9, two members of August 80 were fired for "leaving their workstations". They had been collecting votes on a strike referendum.
Members of ZSP at the demonstration were told that people were threatened with dismissal for demanding pay raises. They also heard that the workers will probably vote to go on strike.
Production workers at FagorMastercook make around 1200 zloties (400 euros) a month. Minimum wage in Poland is currently 1126 zloties a month but this will be raised to 1276 next year. So workers at this highly profitable factory are making almost nothing. That's why one of the slogans of the workers is FagorMastercook: A Workcamp, not a Workplace.
At the end of 2006, the EBRD decided to 17.5 million euro to FagorMastercook. This money was given as part of a restructuring project. FagorMastercook wants to increase production in Poland and achieve economies of scale while making Poland its production hub for Central Europe. The company moved production from Spain when it started new production of gas stoves in Poland about 5 years ago. The production of refrigerators also got moved to Poland. Over 80 percent of the production is meant for export. They increased turnover by about 29% last year.
FagorMastercook works in a Special Economic Zone and received subsidies from the Polish state; it received a direct subsidy of 3.5 million zloties for creating jobs, plus a CIT and corporate real estate tax exemption. So in addition to money from the EBRD, FagorMastercook got help from the Polish state of about 52 million zloties. That's equal to the EBRD's 17.5 million euros at the current exchange rate. This means that the EBRD and Polish state invested more in the FagorMastercook facilites in Wroclaw than Fagor.
Although Mondragon still pushes its "cooperative" worker-friendly image, publishing bullshit reports on how it is concerned about the effects on globalization on the local workforce, for example in Spain, Mondragón Cooperative Corporation (MCC) is a typical capitalist employer operating plants in low-wage countries like Poland, Egypt, Morocco, Mexico, Thailand and China. Employees in these countries are not co-op members. (Some employees in other countries, even in Spain are also non-members; as many as 1/3 of Mondragon workers are not cooperative members. Any cooperative can also apply to MCC to employ up to 40% non-cooperative workers.)
It pretends to be "one of the world's top 10 best employers" and pays completely shit wages here in Poland and is actively repressing unionists. This is even worse than having typical capitalism disguised as a cooperative; it's just typical exploitation of people from poorer countries by those in the richer ones.
If you would like to send a protest letter, click here for the addresses and a sample: