From Squat to Co-op, a Recovered Soap Factory in Greece

Turning existing capitalistic companies into cooperatives has been a persistent topic in cooperative discourse. The most prominent recent examples are the cases during the Argentine Great Depression, in the early 2000s. Factories that were closed and abandoned by their owners were squatted – “recovered” by workers, and turned into worker’s cooperatives. Most notably Zanon, a ceramic tile factory, was squatted and has operated as a cooperative (Zanon FaSinPat) since 2002. Many interesting questions arise around this process of worker’s control through labor struggle: How are these endeavors initiated? What role do unions and social movements play? How has self- management changed the way the factory operates?

In this text, we are going to briefly explore these questions by drawing from the example of VIOME, a “recovered” factory based in Thessaloniki, Greece that since 2013 produces ecological and natural soaps and cleaning products. The setting for this struggle is the Greek economic crisis (2010-18) during which many companies closed, unemployment skyrocketed and severe austerity was imposed by the EU and the IMF. The company group Philkeram Johnson operated VIOME which at the time produced glue for textiles. VIOME was profitable but Philkeram Johnson turned bankrupt in 2011, drawing VIOME down with it. The factory was abandoned by the company within a day, without the 70 employees even knowing about it. They never got officially fired and thus received no compensation. In addition, their salaries had been delayed and remained unpaid for months of work before the closure.

How it all started
A members-lead union had already been formed in the factory and had been involved in confrontations with the company. This laid the foundation for the struggle that would follow the closure. The workers occupied the factory demanding compensation and for the factory to be re-opened. Almost immediately a solidarity assembly was formed around their struggle providing both political and practical support (food etc.). During this time the VIOME union, with the support of other larger unions, started negotiations with the government to achieve their demands. For this process, they commissioned a professional business analyst to create a business plan, to prove that the factory could reopen and be profitable. This plan did not mention or aim for self-management. It was used as a bargaining tool to demand from the government their compensation and the re-opening of the factory with their compensations as capital to save the job positions. Rapidly it was made obvious to the workers that negotiations were in vain. No potential buyer for the factory was in sight and the conservative government was hostile. In addition, the bankruptcy process of the parent company would not bring them any compensation, since through recent changes in the Greek bankruptcy law the workers were the last to be compensated, after banks and suppliers.

The workers felt that they were confronted with a dead end and that’s when the idea of “recovering” the factory and turning it into a cooperative was born. The seed was planted by members of the solidarity assembly, who were experienced social activists and knew about the “recovered” factory movement in Argentina. Members of the movements in Argentina were invited by the assembly in Greece and participated in two major events in Athens and Thessaloniki. The experiences shared inspired the VIOME workers who along with the solidarity assembly decided in February 2013 to completely take over the factory and start operating it again. A large solidarity campaign was mounted in Greece and abroad to support this new beginning, with the notable absence of other labor unions.

What changed in the factory?
What changes when a factory is taken over by its workers? What happens when there is no capital, no boss and workers and owners are the same people? We will try to answer these questions by documenting the changes that took place in VIOME after it went under self-management. First of all the factory needed to change its products. The glue for textiles it used to produce was absorbed by the parent company that no longer existed. In addition, high production costs and limited distribution channels made textile glue completely inappropriate for what was now a self-managed collective in a squatted factory. Instead – an idea again proposed by the solidarity assembly – the collective decided to produce natural and ecological soaps and cleaning products, which were easier to fund, produce and distribute in social centers. There was also a political aspect to that decision. Workers wanted to produce something useful, affordable and ethical, “something for the masses”. Natural soaps, following traditional recipes, were something that every person could buy and use.

The greatest change that the workers were about to face was regarding how the factory itself was now operating. With no boss around workers had to make all the decisions themselves regarding production, packaging, distribution, and marketing. This was a fundamental change for production line workers who had no relevant experience or training. Some of them report it as a sock. All these had to be done with very limited resources, collected at first from the solidarity assembly. The pay was small. Almost half of the 40 workers who participated in the initial squat and the industrial action left in the first months of self-management. Some managed to retire, some tried to find a more well-paying job, some could not handle the legal and practical responsibilities of self-management, and others did not have hope that this was going to work. The pivotal moment was when, after 7 months of self- management, the workers decided to create a legal entity to support their operations. 23 of the workers joined creating the VIOME Coop along with two extra employees who were not workers of the original VIOME. The solidarity movement played a crucial role in paving the way for this. In self- managed social centers and festivals around Greece, VIOME soap bars were bought as an act of solidarity with the only squatted and self-managed factory in the country. In the height of the Greek crisis solidarity groups had been formed around Europe, especially in France and Germany, to support the struggling people of Greece. Through this network, VIOME and the solidarity assembly managed to make important exports that made the venture viable.

Today, a decade away from the creation of VIOME Coop, some things have changed but others have remained the same. The coop continues to operate in the squatted factory. A smaller part of the initial factory, since the rest was sold off to private investors. 14 people continue to work in VIOME Coop, 10 of them had been workers of the original VIOME. Pay is better but does not exceed the minimum wage by a lot. The solidarity campaign plays a less crucial role now. VIOME updated its range of products and now produces and sells additionally to the original natural soaps, soap and softener for washing machines, cleaning products for professionals, care products and others. Through their e- shop and during Covid19 they managed to position themselves as a recognized producer of natural soaps and cleaning products outside the left-wing and social movement circles. Serious obstacles remain. The limited production of olive oil in southern Europe mainly due to climate change has made its prices soar. The VIOME natural soap production, for olive oil is the main ingredient, has halted because of this causing important damage to the coop.

Lessons from VIOME
There are important lessons to be learned from this case. Workers faced with a dead end in their industrial struggle took the difficult decision to take upon self-management. The general condition of the economy surely plays a role in making such decisions, since no other employment alternatives are easily available. One must not underestimate the crucial role of the solidarity movement and the knowledge it can carry. Exchanging experiences, such as the one shared in this text, are an integral part of coop building. Even though it happened miles away and more than a decade before the Argentine example lighted the minds of VIOME workers. Leading by example seems the most straightforward way to create alternatives to the capitalistic economy. Especially when you get to know the people who made this possible and see that they are like you: with families they need to support financially, with doubts and ambitions, with needs and emotions. Turning to self-management is not an easy process. Participants need to learn and unlearn. All the discipline instilled in the working processes of a capitalistic factory is made obsolete. Workers-owners now need to self-discipline and make decisions collectively regarding all matters like a collective boss. This sometimes can be an overwhelming process, even though union organizing can operate as a teaching ground for it. Finally, we need to see the interaction of the coop with the rest of the economic system. Movements and other cooperatives can be there to support new ventures but this is not always enough. Workers taking over factories need to adapt to the situation, finding new products and distribution channels that can’t be blocked by capitalistic or state intervention. Building a larger ecosystem of social and solidarity economy can help such endeavors and offer more options to future factory squatters.

Acknowledgements
A big thank you to the VIOME workers who shared their experiences

About the author