Dinerstein, AC (2013) From Corporatist to Autonomous: Unemployed Workers Organisations and the remaking of labour subjectivity in Argentina In Howell,

J (2013) Non Governmental Public Action and Social Justice, Vol. 2, Palgrave Macmillan 36-59 From Corporatist to Autonomous: Unemployed Workers Organisations and the remaking of labour subjectivity in Argentina
Ana Cecilia Dinerstein

Introduction
This chapter is about the transformation of the subjectivity of labour during the second half of the 1990s in Argentina, and in particular, the role of unemployed workers in the politicisation of labour issues and the emergence of new forms of nongovernmental public action. The subjectivity of labour refers to the historical forms of identity, organisation, mobilisation and political contestation through with labour subjects articulate collective action within a particular context. The chapter focuses on the contentious political dynamics around neo-liberal reforms between what is called here labour subjects and the state. These dynamics include the relationship between the labour movement and new labour subjects in search of adequate forms of resistance to new forms of subordination that emerged out of the process of transformation. During the past decade a significant amount of research has documented the worldwide transformation of labour produced by neo-liberal globalisation. The growth of the service sector, the increase in casual and flexible labour on the one hand, and unemployment, the growth of female participation in the labour market and the crisis of trade unions on the other hand, have been seen as the most important aspects of neo-liberal transformation (Munck, 2000, also Rifkin, 1995; Aronowitz and DiFazio, 1995). The effects of these transformations on trade union strategies have also been addressed. Notions such as new internationalism (Munck, 2000; Munck and Waterman, 1999; Costa, 2006; Lambert and Webster, 2006; Hyman, 2005) and social movement unionism (Moody, 1997), together with analysis of new patterns of labour resistance (Waddington, 1999) and organisation (Pollert, 1996; Taylor and Mathers, 2002; Mathers, 1999) have been mobilised to account for the innovation of

working class organisations after the neo-liberal dismantling of the world of work (Boltanski and Chiapello, 2006). Studies of labour in Latin America have also taken trade union crisis as the focus of their analysis. For example, Zapata (2004) argues that such crisis can be explained by considering how structural reforms have affected the two main sources of union power (i.e. control over the labour process and over the labour market, and access to political power and the state) within a context marked by both the transition from the import substitution model of industrialisation to the trans-nationalisation of the domestic market, and from authoritarian political regimes to new democracies. While changes in trade unions, have been the main focus for those concerned with the paralysing effects of neo-liberal globalisation on labour collective action, less attention has been given to the processes through which new labour subjects emerge and influence labour resistance. This is important in those cases where the mobilisation of new labour subjects has overwhelmed trade union actions (de la Garza Toledo, 2005) and become paramount to the politics of the country. The theoretical premise in this study of the transformation of labour subjectivity in Argentina is that capital cannot exorcise labour since labour is the presupposition of social existence as a whole, a presupposition from which capital cannot autonomise itself (Bonefeld, 1996: 181). Thus, the forms of identity, organisation, mobilisation and politics through which the subjects of labour articulate collective action within a particular context (which I call the subjectivity of labour), change permanently as an intrinsic aspect of the production of the social relation of capital, process which subordinates, transforms and utilises human productive activities for the purpose of profit making. This does not mean that the latter determines the former, but rather that the former is permanently being (re)constituted through the different forms of subordination of labour that emerge out of changes in the process of capital accumulation , such as unemployment. In short, the forms of identity, organisation and so through which labour subjects engage in collective action are temporary and historical. A focus on the temporality and historical specificity of the subjectivity of labour helps us to both move away from disempowering interpretations of the crisis of trade unions and the defeat of labour and to craft a better picture of the processes underpinning the transformation of the subjectivity of labour.

By exploring this case, I show that neo-liberal policies did not obliterate the power of labour resistance by emasculating the trade unions, but rather that they triggered, instead, a process of re-defining the nature and institutional boundaries of trade unions in particular, and of the subjectivity of labour in general. Whilst the traditional union bureaucracy remained financially powerful as it simultaneously became increasingly detached from the rank-and-file, the mobilisation of the latter within the workplace combined with grassroots mobilisation outside the workplace to nourisha trade union renewal and the emergence of new labour subjects, such as unemployed workers. As a result these new labour subjects, either jointly with or separately from the trade unions, politicised society in new ways, constructing an antineo-liberal discourse and introducing new values and practices to reinvent the world of work. Autonomous forms of organisation and collective action gradually emerged and overwhelmed the corporatist tendencies of the labour movement. They redefined the nature of union power in that they participated in the mobilisation of wider sectors of civil society. They were able to articulate the demands of different labour subjects on the one hand, and also enabled new labour subjects to develop alternative ways of conceptualising unemployment and work, and translate these into innovative practices that challenged mainstream conceptions of social justice. Paradoxically, they militated against the bureaucratisation and collapse of unions, thus democratising rather than disempowering the Argentinean labour movement. The chapter begins with a critical review of neo-liberalism, labour and subjectivity in Latin America. It provides a general overview of neo-liberal structural adjustment in Argentina and the rise of resistance to it. The next two sections explore three developments that have reshaped the labour movement, including the birth of the movement of the unemployed, and their role during the protests against the IMF (1999-2002) leading to the crisis of 2001. The final section discusses the contribution of unemployed workers organisations to reshaping the subjectivity of labour.

I. Labour on the road to (in)stability

During the second half of the 1970s, the supply of international loans in Latin American countries created an enormous external debt, which reached a critical point

in 1982. In the Southern cone countries (Argentina, Brazil, Chile), military regimes had created the conditions for financial speculation that was supported by state subsidies to business, which became a means of making quick and substantial profit. The eventual crisis of the external debt fostered the subsequent democratisation processes with the new governments being squeezed between civil societys demands for a solution to poverty and human rights violations, and international creditors pressures for economic stability to service the external debt. Inspired by the Washington Consensus (WC), stabilisation policies in the region were seen as a precondition for economic growth. The WC diagnosis claimed that the roots of Latin American instability and lack of growth lie in the import-substitution strategy of industrialisation (ISI) adopted in the post-war period (Fanelli et al, 1994, p. 102). According to this discourse, the ISI had led to both the hypertrophy of state apparatuses and functions and to economic populism, i.e. the infirmity of the governments which tolerated pressures for wage increases in the public and private sectors, leading to deficit and inflation (Boron, 1993, pp. 62-63). During the transition to democracy (1982-1999), the General Confederation of Labour (Confederacin General del Trabajo, CGT) strongly rejected the WC diagnosis, which blamed unions for being the prime cause of instability. The Confederation organised 13 general strikes to demand both wage increases and a moratorium on paying the external debt created during the dictatorship of the three consecutive Military Juntas led by General Jorge Rafael Videla (1976-1982), without which no social justice could be achieved. In 1989, a run against the dollar by those financial institutions involved in the earlier creation of the external debt, produced what is called a market cup (as opposed to a cup detat), which brought about unmanageable hyper-inflation in a political context where pressure from trade unions, human rights activists, the military and business was mounting. President Alfonsn was forced to hand in his resignation before completing his term of office. The recently elected candidate from the Justicialista (Peronist) party, Carlos Menem, was prepared to take power. In April 1991, a stabilisation programme based on the devaluation of the national currency and the pegging of the Argentine peso to the US dollar at a rate of one to one reduced inflation and set the country on the course to stability. The taming of hyper-inflation by Minister Cavallos Convertibility Plan was considered to be an economic miracle, given the chronic economic and political instability of the country. Unlawful methods 4

of administration such as emergency legislation and Need and Urgency Decrees, gave the executive sweeping powers (Adelman, 1994, p. 82) to implement a drastic reform which changed the very organizational principles of the welfare state (Barbeito and Goldberg, 2007, p.187). In the general elections of May 1989 the majority of trade union leaders and workers voted for the Peronist candidate, Carlos Menem. But, Menem came to power as a populist hope to both stabilise the economy and provide a renewed emphasis on social justice what workers actually received, however, was something quite different. (Richards, 1995, p. 60). Menems political conversion to neo-liberalism initially shocked the trade union bureaucracy. When it became clear that the objective of the governments stabilisation policies was to pacify the labour movement and obliterate its financial and political power, disagreements over strategy emerged within the CGT. This led to a three-way split in the CGT. Two new poles of trade union opposition were created outside of the CGT. The first was the Argentine Workers Central (Central de Trabajadores Argentinos, CTA) that was established in 1992. This soughtto organise the fragmented struggles against unemployment and for welfare reform, and involved trade unions in the public sector, in ex-state-owned companies, mining and ports, some metallurgical, maritime and rubber industries, The second new pole of trade union organisation was the Argentine Workers Movement (Movimiento de Trabajadores Argentinos, MTA), founded in 1994. This brought together more than twenty transport unions that had previously been part of the CGT but that were now opposed to the labour reforms implemented by Menem. . These two new trade union federations mobilised workers against the reforms and confronted head on the Menemist sectors of the CGT about their strategic orientations towards the transformation of labour under Menem. Yet, at the same time, a heterogeneous movement of unemployed workers was emerging and becoming ever more critical to the politics of the country.

II. The neo-liberal reforms: An overview

A detailed analysis of the neo-liberal reforms in Argentina is beyond the scope of this chapter. Instead, it focuses on the key areas of reform, which are paramount for an understanding of the transformation of labour and the labour movement. The Law of

Reform of the State (23,696/89) established the legal framework for the privatisation of state-owned companies and gave the executive the power to eliminate unprofitable sectors in the public sector. Privatisation was a welcome option for external creditors, for local and foreign investors, and for the Argentine government, which was under pressure from foreign creditors to pay off its debts and which was eager to re-establish its cash flow and put its foreign accounts into order (Gerchunoff 1993, pp. 18-19). So the selling of state-owned companies offered the possibility of achieving a quick reduction of the external debt by means of debt-equity swaps (Fuchs, 1993). Once the waiver from creditors was obtained (as state-owned companies had been given as a guarantee for the external debt to creditors, during the previous administration), the government sold all ninety-three companies, allowing the rapid recomposition and re-grouping of the capitalist class. Not only was genuine income generated through privatisation restricted due to the debt equity swap system, but it also was not reflected in the structural and fundamental changes in the economy. Privatisation was also an obscure process secured by the use of bribes and illegal commissions, by the governments coercion of institutions in charge of monitoring transparency, through the repression of the unions, which opposed privatisation, and through the corruption of parliament (Dinerstein, 1993; Basualdo 2002a: 69). The new business community of less than ten corporations in the areas of energy (water, electricity, gas and oil, water) transport and iron and steel industries, premised their purchase of state-owned enterprises on having favourable collective agreements, which modified employment and working conditions, and deregulated industrial relations in the public and private sectors before privatisation (Tomada, 1999, p. 185). Between 1989-1991, workers opposition to the privatisation euphoria of the Menem administration spread despite the anti-strike decree (No. 2,184/91) that forced all workers from state-owned enterprises to provide what the government decided were essential services (which meant 90 per cent of services) during any strike. The law of Economic Emergency (23,697/1989) restricted the hiring of new employees in public sector and state-owned enterprises, and authorised efficiency and productivity policies in the public sector. The financial decentralisation of education and health services, and provincial budget adjustments were the next two policies introduced to achieve fiscal balance. As demanded by the World Bank, responsibility in the provision of social services was passed down to the provinces, while simultaneously reducing their revenues 6

(Richards, 1997, p. 34), which left local governments in several provinces and districts (already in a critical economic situation) unable to pay wages on time, and unable to deliver public services properly. In 1994 provincial public sector workers mobilised against these policies and in particular against overdue wages, cuts in education investment, suspensions and dismissals in the public as well as private sectors, wage reductions, payment of debts to employees with bonuses, against adjustment and redundancies, as well as against the corruption of the local governments. A series of wildcat protests began in the northern province of Santiago del Estero and spread throughout the country over the next two years. In terms of sources of industrial conflict, the significane of unpaid wages and redundancies rose from 40.6 per cent in 1992 to 70 per cent in 1995 (Gomez et al, 1996, p. 134). The New Employment Law (NEL) of 1991 was the first legal step towards the flexibilisation of labour, further reinforced by the Flexibilisation Bill for Small and Medium Enterprises (PYMES) and the modification of the Employment Contract Law. The law introduced four types of hitherto illegal fixed-term contracts, which allowed employers to reduce their contributions to pensions, the national employment fund and family benefit schemes by 50 to 100per cent (see Feldman, 1995). Additionally, as will be discussed below, new legislation and decrees re-regulated pension schemes, workers compensation insurance, the reduction of employers contributions to social security and to union-managed health systems (Obras Sociales, OS), and the decentralisation of collective bargaining. But the key outcome of the neo-liberal reforms of the 1990s was the staggering increase in unemployment. In August 1995 it was revealed that since the implementation of the convertibility plan, unemployment had risen from 6 per cent in 1991 to 18.5 per cent in that year (EpdH INDEC May, 1995). Official pronouncements claimed that rising unemployment had to do with the success of stability i.e the influx of non-traditional job-seekers attracted by new economic opportunities in the context of a still rigid labour market (McGuire, 1997, p. 222). The opposition argued that unemployment was the product of the failure of stability, that is the simultaneous rise in the number of job-seekers due to unemployment, low wages and poverty that forced women, pensioners and even children to try to enter into the labour market or to find a second job (Beccaria and Lpez, 1995) on the one hand, and economic growth based on job destruction on the other hand.

New policies were launched that sought to protect the economy from the full effects of run-away unemployment. First, the Regional Agreement for Employment in the North of Argentine between unions and the government as well as Regional Agreements were signed in 1994. Second, a New National Direction of Employment was created to deal with all aspects related to (un)employment. Third, Job Centres and Regional Employment Departments were opened throughout the country. Fourth, a policy to fight non-registered employment was launched insofar as non-registered workers earned 40 per cent less than a worker under a legal contract and were excluded from social security during work time and from pensions at the age of retirement. Fifth, in the absence of a universal employment benefit, the NLE included a new contribution system funded by the National Fund for Employment that entitled all unemployed workers who had previously worked to 50 per cent of their highestwage over the last six months, for one month to one year maximum. However, the benefit covered only ten per cent of the urban unemployed.

III. The reshaping of labour

Business-like unionism: the CGTs accommodation to the neo-liberal times Although initially workers mobilisation and organisation was led by anarchist, syndicalists and socialists trade unions, at the beginning of the twentieth century, the working class was only included in political life with entry the into government of Colonel Pern in 1943. Thereafter, labour relations came to be considered a state affair and a highly politicised state-sponsored trade unions movement was formed. Since then, trade unions have been organised in a pyramidal form based on the monopoly of one union per activity or industry. Legislation enabled a very centralised, hierarchical and financially powerful trade union system to emerge for two reasons. First, the Law on Collective Bargaining forced employers to negotiate with the national union on an industrial sector basis. This gave the union a monopoly of representation recognized by the state, and established the right of unions to negotiate with employers on the retention of extraordinary quotas, which applied to members and non-members alike because the outcome of collective bargaining included every worker (Murillo, 1997, p. 76). Second, legislation allowed national leaders to collect union dues and compulsory fees for welfare funds through

a system of automatic retention at source by the employers (Law 14,250 and 23,551) (Murillo, 1997, p. 75). Welfare funds finance the trade union-managed health system of Obras Sociales (OS) run by each union per branch of activity for their members and families, which together with public hospitals and private medicine form the health system as a whole. Union power at stake The introduction of collective agreements at the company level without the intervention of the unions at the branch or industry level, the suspension of compulsory retention of welfare funds at source and the reduction of employers contributions to the OS were long-term demands of both the Argentine Industrial Business Union (UIA) and the IMF. Under Menem, a series of decrees aimed to partially modify collective bargaining and wage policy. Decree 1757/90 swept away the obstacles to flexibilisation by revising those clauses within collective agreements, which according to employers distorted productivity (Goldin, 1997, p. 31). Three decrees (2,284/91, 1334/91 and 470/93) allowed collective bargaining below the industry-wide level, introduced wage negotiation at a lower level than those of branch, including the level of the enterprise, and linked wages to productivity, thus imposing a flexible wage policy, which required decentralised negotiation, respectively. In January 1992, the government announced its intention to reduce the number of OS from 340 to 30-40, introduce free affiliation of workers to the OS and create a special body that would collect the employers contributions and redistribute them back amongst unions, instead of the unions retaining the contributions at source. The deal: retaining financial power at the expense of workers rights Being under the direct pressure of both the IMF to deregulate the OS and reduce the power of trade unions, and also the unions to put a limit to the IMF, President Menem offered the CGT leader a deal: if the CGT accepted the reduction of employers contributions to social security by decree 2609/93, the National Treasury would provide extra financial support to those unions OS affected by such a reduction of employers contributions and more union leaders would be appointed to governmental posts. The CGT unions had to participate actively in the elaboration of new

flexibilisation schemes, new legislation for workers compensation and accidents at work, the reform of the industrial relations system, and Menems re-election campaign. On July 25 1994 the CGT, the government and eight employers organisations reached the National Agreement for Employment Productivity and Social Equity, (AMEPE). Four pieces of legislation delivered the 16 points of the agreement between the government, employers organised in the Argentine Industrial Union (UIA) and the CGT in 1995. First, the Law of Flexibilisation of Labour in Small and Medium Enterprises (PyMES) stated that an agreement at the company level could rule over a collective agreement or even a decree or a law (i.e. the so called collective disposal) Secondly, the reform of the Labour Contract Law (LCT, no 24,465) introduced a training contract for three to 24 months for young people aged 14 to 25. The first three months of the fixed-term contract were considered a probation period, that could be extended to six months if this was agreed with the union at the company level. Employers were exempted from contributions to pensions and to the FNE. Third, the pension system was opened to market competition (Law 24.241/933) The previous system constituted in the 1940s required all workers to contribute an equal percentage of their earnings to common pension funds and in return they received an equal sum of basic, decent state pension. The new system, which was based on previous projects designed by the IMF and inspired by the Chilean system, combined the old individual distribution system based on a solidarity mechanism sustained by the basic universal pension (PBU) plus a compensatory pension (PC) provided by the state, with a new system of capitalisation open to market competition. The latter induced the creation of privately administered retirement funds, namely, Insurance Pensions Funds (Aseguradoras de Fondos de Jubilaciones y Pensiones, AFJyP). The AFJP funds were constituted as a limited company involving an administration, bank and an insurance company whose function was to manage investment funds. However, the contributors to the funds were essentially `captive contributors, who were not consulted about the use of their contributions. In addition, each worker needed to buy a life insurance. Workers contributed 11 per cent of their salaries, the insurance contributed between 1.5 to 2 per cent and the AFJP commission contributed between 2 and 4 per cent. Only between 6 and 7.5 per cent out of eleven per cent went to the capitalisation fund from which, if everything went well, workers would get their pensions. This mechanism 10

gave the AFJPs extraordinary profits with absolute no risk (Muchnick, 2000: 83-4). As will be discussed below, it also became a business opportunity for the unions joining CGT. Fourthl, Law 24,557 eliminated the clause requiring the protection of workers that had been established under the previous the labour code and civil code. This law was successful in reducing legal disputes labour costs. It also raised the level of uncertainty among workers who were banned from initiating a case against their employers. The counterpart of the withdrawal of protection by the law was the creation, by the same bill, of new private entities with lucrative ends hired by the employers to protect themselves from accident compensation: the Risk at Work Funds (ART). Unions were allowed to create their own ART and collaborate in the company risk assessments. Employers were thereby exempted from their responsibility for accidents since, with some exceptions, an accident was considered a civil and not a labour issue. In exchange for the legitimisation of these policies, unions joining the CGT not only retained their power of bargaining and secured their financial resources (OS) but they also even increased their power by participating in business that emerged out of the reforms. In addition to this, some of these unions were successful in `doing business out of the privatisation of state-owned companies, as well as the deregulation of pensions, safety at work, and health. . Strong unions created firms that hired laid-off workers, they took advantage of outsourcing; managed the Property Shareholders Programme, which gave workers 10per cent of the sale of the company by authorising the sales of the workers shares; and participated actively in the new deregulation of the pension system either by creating together with a bank and an insurance company their own AFJP or by mediating between AFJPs and workers. Similarly, trade unions and employers jointly participated in the constitution of the workers compensation insurance schemes (Aseguradoras de Riesgo de Trabajo, ARTs). As promised, the government first, compensated the union bureaucracy for the reduction of employers contributions to social security and to the OS, which fell by fifty per cent total in 1994, and second, delayed the deregulation of the OS. In addition to this, and ignoring IMF discontent with the labour reforms (Memorandum of April 1998), the government reassured the CGT leaders of the organisational power of their unions. They did thisfirst by reinforcing the role of centralised collective 11

bargaining. This was done through Law 25,013/ 98, which made unions at either branch level or according to their activity, the legal representative again in collective bargaining at the company level, unless this representation was delegated by the central unions to the committee of enterprise. They also did this byk , by separating out the Solidarity Fund for the OS from the national budget and transferring it to the control of a tripartite body constituted by the CGT, capital and the government. The decree aimed to bring back both the power of negotiation over the funds for the OS and the power to manage financially the annual $ 360 million pesos in the funds. However, the decree was suspended by the courts after the CTA claimed it was anticonstitutional.

Challenging state-sponsored unionism: the Syndicalist Movement (Sindicalismo Movimientista) of the CTA The Argentine Workers Central (CTA) was created in 1992 as a new pole of opposition to neo-liberal reforms with the aim of organising the fragmented resistance that had emerged in the course of casualisation, unemployment, poverty, and the criminalisation of poverty. The CTA brought together mostly public sector and some industrial and service unions to become the voice of the unemployed, poor and marginalised (Dinerstein, 2001; 2003). The CTA founders argued that the old trade union model, which was sustained by its dependence on political power and its complicity with economic power, was no longer the tool to channel workers demands and defend workers achievements and rights (Senn Gonzlez and Bosoer, 1999: 76). The CTA pursued what has been called social movement unionism (Moody 1997): the central redefined trade unionism on a wider and more social and pluralist basis than before, becoming the force for a process of networking with other social movements and social and political organisations at the local, national and international level. The CTA contested the traditional state-sponsored Peronist trade unionism by proposing three new premises: independence from the state, independence from political parties, and direct affiliation to the central union, the latter including the unemployed and those who were technically socially excluded. These three premises stood consciously in contrast to the three pillars that underpinned the previous forms of trade unionism: statism, political dependence on

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the Peronist Justicialista Movement, and centralisation and bureaucratisation of the labour movement. At the workplace, they encouraged individual membership and a relationship between individual workers and the central union. At the political level, they aimed to give voice to the public sector and state workers as well as the diversity of subjects emerging from the process of transformation such as the unemployed, pensioners and the poor. With regard to membership, the CTA made some key changes so that individual workers and the unemployed as well as pensioners or other social groups could join the central union and vote for the executive committee directly, avoiding the traditional hierarchical system. In addition to general strikes, strikes, marches and demonstrations, the CTAs tactics against neo-liberalism moved outside of the workplace towards an engagement of the unions with other organisations in civil society and the general public. Reappropriating the public space: teachers hunger strike under the White Tent of Dignity One of the best examples of the CTAs re appropriation of the public space and the expansion of unions concerns and struggles is the White Tent of Dignity. Whilst the decentralisation of education (1992) reinforced inequality in working conditions and wages among teachers, the new Federal Law of Education passed in 1993 provoked resistance from teachers joining the Argentinean Confederation of Teachers (Confederacin de Trabajadores de la Educacin de la Repblica Argentina, CETERA within CTA as it altered the allocation of national resources to the provinces and limited the possibility of investing in education. As strikes, demonstrations and negotiation with provincial authorities did not produce any results, in April 1997, the National Congress of the Teachers Union initiated a hunger strike under what was called the White Tent of Dignity located opposite the National Congress in Buenos Aires. Alongside the teachers hunger strike were marches and general strikes organised by unions joining CTA and MTA. These broad protests served to nationalise and universalise teachers demands. These demands included increased funding for education, the suspension of the Federal Law of Education, payment of overdue wages, job stability and wage increases. They also served to link problems of education with unemployment, poverty, and exclusion and

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underlined the significance of education to overcoming uneven development and inequality. The CTAs First National Meeting for the Unemployed A second example of the CTAs intention to network and represent wider sectors of society was the organisation of the First National Meeting for the Unemployed in August 1997. Whilst the CGT leadership argued that a unions job is to represent the workers and not the unemployed, the organisation of the unemployed and casual workers became one of the key CTAs goals. At the gathering, representatives of incipient unemployed workers organisations with diverse backgrounds and political affiliations from all over the country shared their experiences and provided the CTA leadership with a picture of the collective action that was being undertaken by unemployed workers. These ranged from achieving special treatment for the unemployed with regard to the payment for public services, to tax exemption, suspension of mortgages with no interest paid to the Housing National Fund (FONAVI), free public transport, training courses for the unemployed in telecommunications temporary jobs by agreements with small companies, and training for small businesses and professional counselling, particularly for treating male unemployed workers traumatised through unemployment. As will be shown later on, the CTAs goal of organising the disorganised and in particular the unemployed, was only partially achieved by the creation of the Housing and Land Federation (FTV) within the Central (Dinerstein, 2001) Piqueteros! The birth of a labour subject Roadblocks: Making unemployment visible In June 1996 and March 1997 two popular demonstrations supported by roadblocks and general and hunger strikes, were initiated by public sector workers, the unemployed and their communities in Cutral-C and Plaza Huincul, Neuqun. These communities had been deeply affected by the process of privatisation and public sector reforms and company restructuring. The roadblocks also became battlegrounds, where entire communities resisted state repression until negotiations, usually

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mediated by the Church, took place to discuss social programmes and benefits, job creation for those dismissed through privatisation, discounts in gas and electricity bills, and productive investments in the area. The roadblocks in Neuqun consolidated a new form of protest that spread widely in the following three years in the north and south of the country progressively involving retirees, students, and workers They facilitated the visibility of the unemployed (Dinerstein, 2002) and the formation of the Piquetero identity of resistance, as well as allowed the local communities to reconstruct solidarity and implement grass-roots action restoring the social fabric. The Unemployed Workers Organisations (UWOs) The UWOs were created piecemeal and patchily out of incipient local organisations undertaking collective action to fight against the effects of privatisation public sector reforms and company restructuring. The UWOs evolved from ad hoc and spontaneous protest organisations born at the roadblocks and grew into flexible but relatively stable organisations, deploying a broad repertoire of newly devised and traditional forms of collective action such as trade unions and social movements. The organisations differed according to distinct strategic orientations and political projects. The Land and Housing Federation (FTV) was created within the CTA in July 1998 to represent unemployed workers from the La Matanza County (greater Buenos Aires). The history of the FTV goes back to the creation of the Neighbourhood Network and the land occupations in El Tambo by a group of 200 families in 1986. The leader of El Tambo, now leader of the FTV, became a member of the executive committee of the union central, and manager of the unemployment programs for the region. The CTA also developed a close alliance with the Classist Combative Current (CCC) and forged political links with the Maoist Argentine Communist Revolutionary Party. Both the FTV and the CCC agreed with the CTAs demand that income redistribution and job creation should constitute the basis for a political project based on national economic development, sovereign autonomy and democratisation. The National Piquetero Block (BPN) united the UWOs linked to left political parties, rejecting what they believed to be the reformist demands for inclusion of the CTA. For them, the unemployed were a fundamental protagonist of the political struggle for socialism. For the BPN the idea of jobs for everyone and a fair distribution of income, that was promoted by the CTA, represented a deeper subordination of labour into the

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capitalist logic. Autonomous groupings were also reluctant to join the CTA. They devoted their energies to transforming neighbourhoods into territories of democratic participation and to exploring new forms of producing solidarity (Dinerstein, 2008). In contrast to the CTAs demand for income distribution and the BPNs struggle for socialism, the autonomous sector (UTD Mosconi, MTD Solano) aimed to construct a counter-power from below (see Chatterton, 2005; Colectivo Situaciones, 2001; MTD Solano, 2002; MTD Solano and Colectivo Situaciones, 2002). Contesting workfare: the UWOS cooperative projects It was at the roadblocks that the UWOs won their ability to negotiate and manage employment and social programmes, and learned to negotiate with the provincial or national governments for social programmes, and for individual benefits to be distributed by them to their unemployed worker members. In other words, in the absence of a universal employment benefit, monthly payments for a fixed period of time from several different specialised schemes and social programmes were paid by the government to the unemployed but distributed by the UWOs among those unemployed workers who were registered with the organisation, and were willing to undertake community work that had been agreed by that community. These unemployed workers were therefore simultaneously workers in projects run by the UWOs (e.g. housing construction) and recipients of state programmes. As a female unemployed worker from the MTD Solano put it, I have been working as an unemployed worker since 2001 (MTD Solano, 2002) Each of the many extant UWOs learned soon how to move between the road and the neighbourhood (Svampa and Pereyra, 2003), that is to simultaneously maintain high levels of grass-roots mobilisation and organisation, and to implement autonomous endeavours that have influenced both local communities and the politics of the country to the present day. The resources obtained via mobilisation and resistance allowed what had been earlier strategies of alleviating the effects of neoliberal reforms to evolve into sophisticated community ventures. These community projects ranged from land occupation and housing construction to the creation of work cooperatives and community farms, recycling, the negotiation of temporary jobs for the local unemployed and the creation of ad hoc job exchanges.

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A common feature of the ventures is their political dimension: their goal was to replace the individualism of social policies with innovative forms of sociability, reallocating resources from federal employment and social programmes to community ventures in housing, education, employment and environmental issues. These endeavours challenged workfare by transforming the shortcomings of workfare as seen in the workfare employment and social programmes into opportunities to develop locally crafted community-based projects. For example, the Unemployed Workers Union (UTD), that was created in 1996 by former workers from the former state-owned oil company Yacimientos Petrolferos Fiscales YPF, established a local cooperative project and supplanted the state in addressing significant public concerns such as recycling, environmental protection, street and road cleaning, education and housing. In order to form cooperatives the UTD sought the help of local companies. Among the most important projects were the housing co-operative project, -which developed through an agreement between the UTD and the Salta Provincial Institute for Housing under the Federal Programme of Housing Emergency; the recycling of plastic bottles project; the project of bean selection and packaging; the garment factory; the wood recycling and environmental protection project; and the creation of a new college. The UWOs union-like role Some of the UWOs also mobilised the unemployed to discuss with local firms the creation of temporary jobs, wages and working conditions for the unemployed. In doing so, they deployed different forms of collective action and organisational devices which were not led by trade unions. Some of thesewere traditional forms of union action while others were more innovative. The UTD constructed and constantly up-dated a register with the personal details and job history of each unemployed worker. It organised a team which systematically visited the main companies in charge of large projects in such as construction, engineering, and oilin the area. It listed the needs of the company and put pressure on them to hire unemployed workers frorm UTD. Once the workers got a job, the UTD agreed hourly or monthly wages, working conditions, pensions and training. Interestingly, the UTD was recognised by local firms as a legitimate representative, signing macro agreements and collective 17

agreements with companies to keep social peace. Before a company started working in the area, they held a meeting with the UTD to discuss labour conditions and the basic terms of employment. If the companies needed workers with specific skills, the UTD decided collectively which of its registered workers were able to take the job and did the administrative work for workers to start receiving their wages. If the company did not comply with the agreement, the UTD implemented simultaneously two forms of direct industrial action. Outside the company, the access blockade (corte de acceso) by the UTD members prevented the flow of trucks in and out of the company . Inside the company, those who had been hired temporarily by the company through the UTD, undertook a production line stoppage (corte de lnea). Through this direct action, the UTD pressed its demands for genuine jobs, better labour conditions, negotiation of benefits and extras, respect for agreements, donations of raw materials, and fees for the UWO.

IV. Social mobilisation and the re-politicisation of labour: trade unions and the UWOs against the IMF (1999-2002)
The labour reform under de la Rua (1999-2001): corruption, roadblocks and cabinet reshuffle towards the crisis The political collapse of the ruling coalition government in 2001 was largely due to both the corruption within the Senate around the voting for labour reforms and the persistence of the roadblocks and general strikes. The de la Rua administration started its term in office by ruthlessly repressing a roadblock in Corrientes, which resulted in the death of two workers During April and May 2000, a new country-wide wave of roadblocks reached massive proportions in the north and south. Despite the two-digit unemployment rate and the social unrest, the governments two obsessions were still the decentralisation of collective bargaining and the deregulation of the OS. These were achieved by decree despite the strong opposition from the unions. . In April 2001 the ongoing dispute within the national cabinet between those defending the countrys financial performance and obligations and those pushing for social reform, especially related to unemployment broke, the coalition in power: those cabinet members who belonged to the centre-left wing of the political front Solidarity Country (Frente Pas Solidario, FREPASO) within the Alianza left the government in

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opposition to the subordination of the de la Rua administration to the IMF and the demands of the banks (Dinerstein, 2001). This breakdown of the coalition was followed by increasing economic and financial instability . Internal struggles within the Cabinet led to resignations and reshuffles. Then, Domingo Cavallo returned to the Ministry of Economics to launch the Zero Deficit Plan demanded by the IMF. This prompted white-collar workers and the middle class to join the popular protests that were led by the trade unions and the UWOs. The government reduced wages and pensions by 13per cent affecting 92per cent of the public sector workers wages. On July 19th 2001, a general strike was organised by the CGT and the CTA. This was followed by protests, in which the increasingly impoverished middle classes now took part. . Nationalisation of the Roadblocks, the National Front Against Poverty and the CTAs popular referendum In July 2001, for the first time, fifty roadblocks took place simultaneously throughout the country. Moreover, these were not taking place in remote areas of the country but on the outskirts of Buenos Aires. Whilst the struggle of the UWOs was supported by other sectors of the population of Buenos Aires, who had, not long ago, remained indifferent to the struggles of the unemployed Concerned about continuing negotiations with the IMF, the government refused to acknowledge the significance of social and labour protest and, in understating their magnitude, continued to criminalise their activities. The presence of the G7 leaders, as well as the direct intervention of the US in national matters, in addition to the Zero Deficit Bill, inflamed the climate of social unrest. A two-day nation-wide protest took place on August 7 and 8, involving roadblocks, strikes, neighbourhood and workplace assemblies, strikes, soup kitchens, public classes, and marches in several provinces of the country. Whilst the governments economic team was pouring over the question of how to eliminate the deficit, almost three million people voluntarily participated in a fourday popular referendum organised by the National Front Against Poverty (FRENAPO) on 13-16 December 2001, which resulted in massive support for the CTAs proposal of a redistribution shock. The CTA-FTV Income Distribution Shock, National Autonomy and Democracy entailed a more comprehensive strategy of income distribution, which would spur demand and rejuvenate the domestic 19

economy, suppress recession, force capital to respond more closely to the needs of the population, and force the state to invest in the unemployed, pensioners and young people rather than in subsidising capital. Unlike the governments patchy employment programmes, the CTAs project set out to have an impact on the level of demand and the development of the domestic market so as to reactivate the economy, move out of recession and discipline capital in line with the needs of the population (IDEP-CTA, 2002) Crisis and institutionalisation In December 2001, there was both a financial collapse and the country defaulted on the external debt, as the IMF failed to provide Argentina with another loan. There were also mass protests, mainly in the capital and other large cities. Dollar peso convertibility was ended. All this spelled the end of the de la Rua government. Suffice it to say that December 2001 embodied both the collapse of neo-liberal and stabilisation policies and the consolidation and expansion of the resistance which emerged against the violence of stability (Dinerstein, 1999; 2002). The demonstration of 19th and 20th December 2001 under the banner of Que se vayan todos! (Out with them all!) was not led by any political party or trade union but was driven by the people, who, occupied public space, demanded an end to the effects of neo-liberal globalisation, IMF rule in domestic matters and corrupt politics and business (Dinerstein, 2004). The new governments devaluation policy accelerated poverty, as inflation eroded the incomes of wage earners, so that by mid-2002 more than 57 per cent of Argentines lacked sufficient income to cover their basic needs. The new social programme Male and Female Unemployed Heads of Household (Jefas y Jefes de Hogar Desocupados, JyJHD) sought to assist heads of household and to achieve constitutional family rights to social inclusion that were enshrined in the National Constitution. This social programme provided a cash transfer of 150 pesos (30) per month to eligible individuals who were required to engage in productive work or training, and ensure that their children were in education (Dinerstein 2008). The launching of this mega plan was coupled with the systematic repression of the most radical autonomous groupings of the movement of the unemployed, which ended in the deaths of two unemployed activists from the UWO Anibal Veron, MTDAV) in

20

June 2002. This marked a turning-point in the politics of the country, as the impunity of the crime unleashed a cross-class solidarity action with the UWOS and forced President Duhalde to call for presidential elections in 2003(See Dinerstein, 2008). As a result of these events, the UWOs have been integrated into the state agenda. New social programmes, such as the National Plan for Local Development and Social Economy: Lets Work! were launched by the Nestor Kirchner administration from 2003 onwards, in an attempt to both recognise and depoliticise the UWOs, by incorporating the communitarian and solidarity principles and social practices that underpin the UWOs endeavours into a new policy ethos. Inspired by World Bank funded social programmes that support community work and microventures aimed at community sustainability, these programmes included the provision of technical and financial support to the Piqueteros, and encouraged the social economy. Whilst the government recognised the UWOS as legitimate actors, it also kept them outside the orbit of the Ministry of Labour. Governmental support for the community projects is channelled through the Ministry of Social Development which forced the UWOs to become officially registered NGOs. This involved a process of authentication by government inspectors, and assessment of the worth of their proposed project. Nonetheless, the state attempt to institutionalise the UWOs action was contested (Dinerstein, 2007; Dinerstein, Contartese and Deledicque, 2010). Despite being at risk of incorporation into state projects, the experience of the UWOs shows that the practice of autonomy can open up the frontiers for resistance and change towards radical practices, an equal society and self-organisation (Bhm, Dinerstein and Spicer, 2010: 28). Thus, the risk of incorporation can be mitigated.

V. The contribution of unemployed workers organisations to the renewal of the subjectivity of labour
So far, this chapter has addressed the political dynamics around neo-liberal reforms in the 1990s. These dynamics involve on the one hand, labour subjects and on the other hand, the state in Argentina. The analysis brought to light the transformation of the subjectivity of labour during this period. The chapter focused on both the process of contestation between trade unions and the state, and the emergence of unemployed workers organisations as key aspects of the reshaping of the labour movement.. Rather than focusing on the crisis of trade unions and the dilemma of how best to

21

categorise those outside the labour market, this chapter instead has focused on the process of transformation. The theoretical premise expounded here has been that the forms of subjectivity of labour are historical, and achieved through processes of contestation and struggle in and against the state and capital. Capital cannot exorcise labour; but it is able to transform permanently the conditions for the production of subjectivity. Neo-liberal adjustment unleashed a struggle over the subjectivity of labour, that is over the forms of identity, organisation, mobilisation and politics through with labour subjects articulate collective action within a particular context, Unemployed workers with their local communities and unions inject into labour resistance an element which has been overlooked by sociologists mainly concerned with the study of unemployment and social exclusion: the political capacity of unemployed workers to overcome the barriers to collective action (Wolff, 2007) to organise themselves and to put forward an active critique of hegemonic political projects. To be sure, the existence of unemployment per se cannot be seen as a sufficient condition for the emergence of a movement. Historical and ethnographic accounts of the mobilisation of unemployed workers (Hannington, 1936/1977; Bagguley, 1991; Mathers, 2007) illustrate how, under certain conditions, the unemployed beg[i]n to define their personal hardship not just as their own individual misfortune but as misfortune shared with many of their own kind (Piven and Cloward, 1977, p. 49). In Argentina, two such conditions are significant: the history of grassroots resistance and the form of social and employment policy. Since citizenship relied historically on notions of social justice and workers rights, social policy always depended on the capacity for negotiated settlements between corporations, trade unions and the state (for example, in healthcare provision) or the capacity of marginalised groups to get organised and put forward specific demands (Barbeito and Lo Vuolo, 1995). The lack of universality, the low supply of benefits, the absence of clear criteria for beneficiary selection (Garay, 2007, p. 306; also Giraudy, 2007) gave the UWOs the opportunity to consolidate their negotiation skills with the local and national governments. As Bagguley (1991, p. 70) rightly suggests, the state played an important role in the formation of the movement of the unemployed. In this case, it facilitated their participation in the management of employment programmes, which otherwise would have been assigned to individual beneficiaries by local or national governments. (Dinerstein, 2010) 22

But none of this would have happened without the mobilisation and resistance of the unemployed at the roadblocks. The CTA and the UWOs were key actors in the mobilisation before the crisis of 2001, when the space for negotiation narrowed and the power of the union bureaucracy was displaced. This was indeed the dilemma of the Menem administration: whilst on the one hand, the government relied on the support of the union bureaucracy to implement drastic reforms, on the other hand, the reforms fragmented the labour force, disempowering the union bureaucracy in two ways. First, new forms of production and management techniques in the auto, metallurgical, iron, electronics and telecommunication sectors, empowered shop-floor representatives and enterprise committees (comisiones internas) as they required daily negotiations at the workplaces rather than the national bureaucracy, freeing them from the constraint imposed by union verticalism. Second, the participation of unemployed workers in these social struggles called into question the idea that the unemployed constitute a residual subjectivity vis--vis the working class as conceived by the CGT leadership. Since the birth of the UWOs, and particularly during and after the crisis of December 2001, labour collective action could not be identified only with workplace struggles and industrial disputes run by powerful trade unions. Labour conflict could not be reduced to a single principle of organisation but progressively became a complex jigsaw of labour subjects. For some of them, less corporatist and more autonomous forms of action vis--vis the state had become a powerful tool for critique and resistance. Decentralised and non-institutionalised forms of protest which spread in and against the neo-liberal reforms, and particularly during and after the December 2010 crisis, made apparent the incompetence of the CGT strategy to retain power by lobbying and negotiating with the government. Such super-structural policy missed the significant transformation of the politics of labour that was evident in the fragmentation, decentralisation, geographical dispersion and politicisation of labour conflict, owed in great part to unemployment, one of the main products of the labour reforms agreed by the CGT. The mobilisation of the unemployed was a key factor in forcing trade unions to rethink the meaning of union power. For the CTA, that had its origins inthe sindicalismo movimientista of the CGTA in the late 1960s, power meant the political capacity to articulate geographical, political and social differences and diverse experiences of exploitation and subordination (CTA leader cited in Cuadernos del 23

Sur 22/23-1996, p. 107). The CTA leaders also realised that the unemployed were becoming an identity and a distinctive social category (Standing, 2009, p. 115). The creation of the FTV within the CTA structure allowed the latter to expand its scope and fulfil some of the Central goals. But as mentioned the CTAs efforts to integrate other UWOs into its structure proved difficult (Dinerstein, 2003). During the period under consideration, these autonomous forms of organisation and collective action overwhelmed the corporatist tendencies of the labour movement. This does not mean that trade unions became less important but rather that they redefined the nature of union power. They achieved this by mobilising more broadly in civil society and by articulating the demands from different labour subjects. They also allowed new labour subjects to develop alternative ways of conceptualising unemployment and work, and to translate these into innovative practices that have challenged mainstream conceptions of social justice. The autonomous collective identity that emerged from the roadblocks and became the heart of the UWOs had two strands: the first was the Piquetero strand, which contested the idea of the unemployed as powerless victims of the labour market and passive subjects of policy. They challenged the stereotypes of the jobless as inactive, demobilised, excluded, and marginalised, disadvantaged. This resistance identity (Castells, 1999, p. 8) is illustrated by the following statement: I am Piquetera, I am a social fighter (luchadora social). Everything we have is thanks to our struggle (Female participant UTD, 2005). The second strand concerned a labour identity captured in the notion of 'unemployed workers. This strand is reflected well in the following statement by an unemployed, female workers, I have been working as an unemployed worker since 2001 (cited in MTD Solano, 2002). This strand included not just the temporarily jobless but also the beneficiaries of employment programmes, who worked in projects organised by the UWOs or who had temporary jobs that had been negotiated with local firms by the UWOs. This strand contained some elements of a project identity, in that it redefined their position in society and, by so doing, sought the transformation of the overall social structure (Castells, 1999: 8). Clearly, the UWOs collective action is but one of numerous types of collective action carried out by those experiencing unemployment and poverty as a result of the neo-liberal reforms (Dinerstein 2010; also Pearce, 2010). These endeavours, which point to a new role for civil society in development (Howell and 24

Pearce, 2001), have been described in various ways such as : third sector, social economy, community self- help alternatives, local development initiatives; new cooperatives, solidarity economy (Moulaert and Ailenei, 2005) and alternatives to development (Santos, 2006). In this particular case, the new labour subject put forward a threefold critique of capitalist work: first, the unemployed re-entered the world of labour by treating unemployment as a form of, rather than the lack of, capitalist work, wherein the subsumption of labour in capital is invisibilised and interpreted as social exclusion. Unemployed workers regained their visibility at the roadblocks and repositioned themselves vis--vis one of the most excruciating forms of subordination brought about by the neo-liberal reforms: unemployment with almost no state protection. Second, they also denaturalised paid work (Cole, 2008; Levitas, 2001; Gorz, 1999) by creating what they called genuine work, that is true and dignified work as opposed to false (temporary, subsidiary) and undignified work associated with the work(fare) involved in focused policies, or casual work (Dinerstein, 2010). The cooperative projects functioned as nodes that facilitated sociability and social cohesion through the articulation of collective needs in confined territory: a neighbourhood or a network of neighbourhoods. Finally, the UWOs projects offered dissident meanings (Cornwall and Brock, 2005) to official discourses on public needs, particularly regarding employment and social policy and could be seen as the delivering of welfare policy from below (Steinert and Pilgram, 2003). These cooperative experiences, that go back to the practice of reciprocity (Quijano, 2006: 423), have moved from survival strategies (424-425) to the articulation of real utopias (Wright, 2010; c.f. Quijano, 2006). The focus of this enquiry was on the transformation of the subjectivity of labour and in particular the contribution of unemployed workers and their organisations to the renewal of labour subjectivity in Argentina. The key conclusion here is that unemployed workers organisations have opened up many autonomous spaces, not only for contestation and protest, but also in the search for social justice, which has had a significant influence on trade unions, civil society and the state. Their endeavours have democratised rather than disempowered the Argentinean labour movement and society.

Acknowledgment

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This research was supported by the Economic and Social Research Council (ESRC, UK), award RES -155-25-0007 The Movement of the Unemployed in Argentina, Non-Governmental Public Action programme (NGPA). I would like to thank the ESRC and to the NGPA programme director Jude Howell for their support. Thanks to all the interviewees, workers from the organisations of the unemployed and governmental senior functionaries for providing priceless information and access to material and documentation used in this chapter. I am also indebted to Daniel Contarese and Melina Deledicque for their contribution to the research fieldwork, and to Gregory Schwartz for his generosity and his helpful commentaries on the previous versions of this chapter. Suggestions from those who attended my presentations at the ESRC workshops on NGPA and Theory, NGPA and Labour, and NGPA in Latin America, and at professional meetings of Work, Employment & Society, European Group of Organisation Studies, Latin America and European Meeting for Organisation Studies, and Society for Latin American Studies between 2006 and 2010, have greatly enriched this chapter too. All the habitual disclaimers apply.

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