A ‘recuperated’ business

In the aftermath of Argentina’s 2001 economic crisis, more than 180 factories and businesses were taken over by the workers. Grouped in a federation, such firms now employ 60,000 people directly and are now pushing for a stronger legal framework to be able to access credit.

hotel bauen

In 2001, the Bauen Hotel management began to fire their workers and by 2003, the last 80 workers were put on the street at a time when unemployment hit record levels – over 20% unemployed and 40% of the population unable to find adequate employment.

On March 21 2003, the workers decided to take over the building in the heart of Buenos Aires to safeguard their livelihood. They set up a workers’ cooperative and occupied the rundown hotel. Before the workers took home a paycheck, they reinvested all capital back into the hotel’s infrastructure: repaired the living areas, fixed the dysfunctional bathrooms, renovated the front café, hotel rooms, fire proofing salons and reopened the pool area before finally accommodating guests— while providing better wages and working conditions for the people running it.

The hotel (video link) now has 150 workers, a street-side cafe selling many products produced by other worker-owned shops, and over 200 renovated hotel rooms.

The co-operative makes its decisions collectively at assemblies of its 142 staff, pays all workers the same basic $800 (£540, €650) a month (with just a few incentives, of less than $100, for length of service, timeliness and for staff handling cash, for example) and prides itself on its alternative management philosophy.

On a local level, Bauen Hotel has become a prime example of coalition building, a political centre for movement organizing and a modern day commune.  

Crisis in 2007

The Mercoteles business group claimed to have purchased the hotel in 2006, when the Bauen workers cooperative was already inside the hotel administering services and an eviction notice was served in their favour.

hotel bauen employees outside court 06 A protest in front of Buenos Aires City Hall

Workers and supporters mobilised and in front of the Buenos Aires central courts, nearly 2,000 came out to defend the hotel.. The workers cooperative presented an appeal and are continuing to lobby for the definitive legal right to the hotel.

A bill of expropriation, which would entitle the Bauen workers to ownership of the hotel, was drafted to be considered at the municipal and federal levels. The bill has passed through the Cooperative Commission and will now move on to the General Legislation Commission in the National Congress.

Through this project, it is reported, the workers hope to secure their legal future and pave the way for the many other recuperated enterprises and cooperatives fighting to maintain their constitutionally protected right to work.

No reference to the ongoing action was reported recently in the Co-op’s upbeat blog recording that Hotel Bauen now spans 20 floors, with 150 worker-owners and over 200 hotel rooms. Its profits are rising and it is at the centre of cultural and political activity in Buenos Aires. The words of Diego Bandera from the Argentinian co-operative are quoted:

“We know that we should be aware of what we can do to help other co-operatives grow.  To this end, we have created a confederation of over 300 different co-operatives across Argentina to share their experiences of success and failure. Hotel Bauen worker-owners feel connected to a greater co-operative movement. We are not alone and each day we continue to grow.”

We hope to hear, one day, that the threat of  eviction has been lifted and the co-operative has a legal right to the premises.


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