Please refer to the Editorial entitled “Social Doctrine of the Church” in which you will see the sequence of the Encyclicals of the Popes in favor of the Partnership Contract, from Pope Leo XIII’s Rerum Novarum in 1891 up to Pope John Paul II’s Laborem excensens of 1981.

With the phrase “men, knowing they are working on what belongs to them, work with far greater eagerness and diligence”, Pope Leo XIII starts down the long road to revising the worker/employer relationship where the situation of the workers of the era can be deduced when the Pope says:

“it has come to pass that working men have been surrendered, isolated and helpless, to the hardheartedness of employers and the greed of unchecked competition.”

To work in what belongs to them, a great concept related to the inviolable right of property. They ask for new laws oriented towards the access of workers to the property, but not just any property, because the idea that the workers have their own property is intimately related to the idea that by working in something that belongs to them, they will put greater eagerness and diligence. The Popes advocate for the workers to have access to the means of production, that they become co-proprietors of these means and in this way gain the notion that work and capital complement each other, to the point of one not surviving without the other. It is a vision of the future from which a new economic order can and should arise, with the beneficiaries being, equally, work and capital.

The worker-employer relationships have experienced substantial changes throughout the 20th Century although they were limited to consolidating important rights in working day, salaries, social security and accident protection. All the reforms expand on the rights of the workers but these rights have arrived at a ceiling that is difficult to surpass. Only by incorporating the Partnership Contract will the salaried workers be able to revalue their work.

The Social Doctrine of the Church, inspired by the Partnership Contract in favor of the workers is the main pillar.


Capital and Work as equals

The association between capital and work must be one of parity. It is a new way of understanding the worker-employer relationships that requires the joining of interests and not the confrontation of classes. This confrontation, based on the idea of asking for the maximum and giving the minimum, is substituted by the distribution of the benefits in equal parts. The responsibility of the workers and employers will eliminate labor problems. The workers will no longer work for others but instead for themselves, and the employers will not be paying a salary but rather a normal cost item. The company must function as a community of objectives, with initial provisions that include: goals to achieve, costs of these goals and profitability as a final result.

These provisions of business administration and management are common rules in the organization charts of present-day companies, but with a fundamental difference: in the capitalist economies, the benefits obtained from fulfilling the work programs, are capital gains exclusively benefiting capital; work does not participate in the capital gains obtained and the workers can only aspire to personal prestige in order to ascend to more highly remunerated positions.

In THE THIRD WAY, the benefits plus derivatives from proper planning and execution of the goals set are distributed fifty-fifty between capital and work. The planning is no longer an exclusive function of the employers once they share the company with the workers.

When I say that the salaried costs are predetermined, it should not be interpreted in the sense that by being real partners the workers should receive a minimum salary since the rest would be earned as a dividend. Thinking like this is inappropriate, since the salaries and wages will be determined according to the external parameters that correspond to the sector. The mentality of working the minimum and earning the maximum, or of waiting to see what the workers’ demands are in order to see where they can be cut, is excluded in the new work mode.

The workers should act together. This new form of labor relationship must be homogeneous, not admitting differentiations that would lessen the value of the system. It is a new form of work and therefore, it is not permitted that part of the workers are included in it and others not. It is not a question of adhering to a system, but rather of being integrated in a job that is executed under this system. The workers will seek productivity out of their own interests, when fulfilling a program of annual production is demanded of them. They know that, by fulfilling it, they will achieve a salary revision and the company will have greater benefits, whose proportional part will correspond to them. Their recompense will not be a bonus conceded by the employer, but rather the dividend earned as a consequence of their participation in the business.

When in the Partnership Contract I say that the workers should be proprietors of 50 percent of the capital of the company, there is only one way to understand it if we want the promotion of the workers to be real; their participation in the company cannot be fixed with nominative titles, and therefore, with their first and last names, but rather their participation must be in an abstract form. The workers will be proprietors of 50 percent of their company in the form of pro-undivided property, in joint ownership and, therefore, each one of them is proprietor of a share quota instead of a concrete number of portions. These quotas are non-transferable and will only vary according to the entries or withdrawals that occur in the payroll. (Details can be seen in the Forms of Participation.)

Increasing productivity requires greater efforts, which will not be attained if they are not compensated for. The workers accept their responsibility for problems that involve them directly. If they are only liable to a work contract, they will limit themselves to completing their working hours. Don’t talk to them about goals to reach without giving them compensation in prizes or other incentives.

The only device that will make the economy prosper will be the promotion of greater production, being able to stabilize and lower prices of manufactured goods. To increase production, human incentives are needed in the form of higher income for the working class, making it participate in the results of the companies as co-proprietors. This will be the way to program productivity and reach increasing profitability.

An invariable condition is that all the workers are co-participants in the company in order to achieve the effectiveness of the system. We start from the principle that the effort that the workers make will only be for their own interest, not for abnegation towards someone else’s company. If a group of workers were allowed to be outside the system, they would become a bone of contention, with sufficient force to convert the best intention in waste. With all of the workers making up the innovative force that is put in motion, self-discipline, self-control and job completion will occur automatically as a consequence of the contraposition of interests.

Absenteeism is reduced to insignificant indices, controlled by the Work Discipline Committee, an organism of the worker partners.


It is not sufficient to try to transform the labor relationship by implanting the Partnership Contract. Before, we should explain, without any doubt, how to get the money necessary for the workers to pay for fifty percent of the capital of the different mixed capital-work company that can be formed. Here the reader is obliged to go to the “globalizehousing” page and check the results obtained with a program of building 500,000 houses and observe the volume of “ordinary”, “financial” and “remainder” reserves that originate in each phase of construction. Part of them are destined to formalize the Partnership Contract.


There can be no doubt that the substitution of the Labor Contract for the Partnership Contract is a long process that requires, first, accepting the idea; second, the productive organization today in the hands of small, medium and large companies, is in the process of concentrations of all types, determining that both the production as well as the distribution of goods and services tend to break the present organization chart. On the other hand the investment of the reserves that appear in the productive process of “globalizehousing”, available from the first moment, are necessarily destined to the creation of industrial complexes whose incorporated economic activities will be administrated by large companies. The conclusion is that the change in the type of labor contract will be done slowly, but unceasingly and without discarding any possibility.

The direct sources of financing of the Partnership Contract are the reserves that are formed in each issue of Bonds, some as a consequence of the normal execution of the programs for constructing houses and others, much more important, derived from financial operations linked to the system. Both are extensively explained in “globalizehousing”.

Once the reserves are defined, it will be the States that administer them, observing three priorities: 1. Financing of the Partnership Contract; 2. Consolidating pension funds: 3. Aid to the Third World that is obligatory, materialized in the creation of jobs, infrastructures, health and education. A valid system for any country on any continent.


Next Editorial March 30, 2002

Access of the workers to the co-proprietorship of the means of production.

Francisco Montaner

Globalizing housing with zero cost