Workers collaborate to rebuild a factory, symbolizing worker empowerment and economic recovery.

Workers Takeover: How Worker-Recovered Businesses Are Changing the Game

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Avery Sinclair in Business & Economy August 2025 • 4 min read.

"Exploring the rise and impact of worker-managed enterprises in Argentina and Brazil, where resilience meets innovation."


In the ever-shifting landscape of global economics, stories of resilience and reinvention often emerge from the most unexpected corners. Since the 1990s, amid the surge of neoliberal policies across Latin America, a unique phenomenon has been taking root: the rise of worker-recovered businesses (ERTs). As traditional industries faltered and unemployment soared, resourceful workers in Argentina and Brazil began reclaiming abandoned or bankrupt companies, transforming them into collectively run enterprises.

These worker-led initiatives represent more than just a fight for survival; they embody a profound challenge to conventional capitalist structures. By democratizing management and prioritizing social values over individual profit, ERTs are pioneering a new model of economic organization that emphasizes cooperation, solidarity, and community engagement. This movement taps into the potential for innovative solutions born from crisis.

This article delves into the world of worker-recovered businesses in Brazil and Argentina, examining their origins, strategies, challenges, and impact. We will explore how these enterprises are reshaping local economies, empowering marginalized communities, and contributing to a broader global conversation about the future of work.

From Crisis to Collective: The Birth of Worker-Recovered Businesses

Workers collaborate to rebuild a factory, symbolizing worker empowerment and economic recovery.

The story of worker-recovered businesses is inextricably linked to the economic upheaval of the late 20th century. The implementation of neoliberal policies across Latin America in the 1990s led to widespread privatization, deregulation, and austerity measures. This, in turn, resulted in the collapse of many industries, mass layoffs, and a growing sense of economic insecurity for working-class communities.

In the face of these challenges, workers began to explore alternative models of economic organization that prioritized job preservation and community well-being. Drawing inspiration from historical traditions of labor activism and cooperative economics, they started to take direct action by occupying abandoned factories and organizing themselves to restart production.

Key factors driving the emergence of ERTs:
  • Neoliberal economic policies: Privatization and deregulation led to business failures and job losses.
  • Lack of social safety nets: High unemployment rates with minimal support systems pushed workers to find their own solutions.
  • Traditions of labor activism: A history of worker organizing and resistance provided a foundation for collective action.
  • Community solidarity: Strong social networks and mutual aid initiatives helped sustain these new ventures.
The initial steps in recovering a business often involved complex legal battles, physical occupation of facilities, and intense negotiations with former owners, creditors, and government officials. However, these challenges also fostered a strong sense of camaraderie and collective identity among the workers, who were united by a shared determination to create a more just and equitable economic system.

A New Economic Vision

The worker-recovered business movement in Argentina and Brazil offers a compelling vision for a more equitable and sustainable economic future. By challenging traditional power structures and prioritizing social values, these enterprises are demonstrating the potential for worker-led initiatives to revitalize local economies, empower marginalized communities, and inspire broader social change. While challenges remain, the ongoing efforts to support and expand this movement offer a promising pathway towards a more democratic and just world of work.

About this Article -

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Everything You Need To Know

1

What factors led to the emergence of worker-recovered businesses in Argentina and Brazil?

Worker-recovered businesses (ERTs) in Argentina and Brazil emerged as a response to the economic upheaval caused by neoliberal policies in the 1990s. These policies led to privatization, deregulation, and austerity measures, resulting in widespread business failures and job losses. Workers, facing a lack of social safety nets, took direct action by reclaiming abandoned or bankrupt companies and transforming them into collectively run enterprises. This movement was also fueled by traditions of labor activism and community solidarity.

2

How do worker-recovered businesses challenge traditional capitalist structures?

Worker-recovered businesses (ERTs) challenge traditional capitalist structures by democratizing management and prioritizing social values over individual profit. They emphasize cooperation, solidarity, and community engagement, fostering a more equitable and sustainable economic future. This model empowers workers, revitalizes local economies, and promotes broader social change by challenging conventional power structures.

3

What are the initial steps and challenges in recovering a business according to the worker-recovered business model?

The initial steps in recovering a business for worker-recovered businesses (ERTs) often involve complex legal battles, physical occupation of facilities, and intense negotiations with former owners, creditors, and government officials. Overcoming these challenges fosters a strong sense of camaraderie and collective identity among the workers, who are united by a shared determination to create a more just and equitable economic system.

4

In what ways did neoliberal economic policies contribute to the rise of worker-recovered businesses?

Neoliberal economic policies, characterized by privatization and deregulation, significantly contributed to the rise of worker-recovered businesses (ERTs). These policies led to business failures and mass layoffs, creating a situation where workers had to find their own solutions for survival. The absence of adequate social safety nets further incentivized workers to reclaim abandoned companies and establish worker-managed enterprises.

5

Why are worker-recovered businesses considered an important development in economics, and what are their broader implications?

Worker-recovered businesses (ERTs) are important because they represent a new model of economic organization that prioritizes social values, cooperation, and community engagement. They demonstrate the potential for worker-led initiatives to revitalize local economies, empower marginalized communities, and challenge traditional capitalist structures. While the article focuses on Argentina and Brazil, the implications extend globally as ERTs offer a pathway towards a more democratic and just world of work.

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