Evolution of the Equity Participation of Labor Communities

Abstract

The evolution of the equity participation of Labor Communities has undergone significant changes over time, reflecting a series of modifications in their original function. Within this framework, this article analyzes the equity participation of labor communities in strategic companies in Peru. In this regard, it highlights that the qualification of strategic industry does not stem exclusively from specific criteria, but also from the state participation of no less than thirty percent in the capital. In addition, the article discusses the use of equity participation as a mechanism for negotiating joint investments between the State and other national or foreign partners, since it has been used to encourage reinvestment, attract new investments and finance company acquisitions by the State. Finally, the author alludes to the tendency to curtail the right of the Labor Communities to participate in the ownership of the capital of the company, especially in strategic companies, in which the Community does not participate in the capital. In these cases, the concept of co-determination attributed to the Community is distorted, turning it into a redistributive and economicist institution. As a result, the equity participation has gone from being a mechanism of ownership and management for the workers to an instrument used to encourage reinvestment and to finance state acquisition operations.