Ep 002: How Argentinian workers took over an abandoned luxury hotel

Cover art for Episode 002 on Argentina’s worker-owned businesses.

A 20-year experiment in salvaging what our economy discards — a shuttered hotel, reclaimed by workers, and why it matters now.

In March 2003, a group of former employees walked up to a dark, abandoned luxury hotel tower in the middle of Buenos Aires, broke a single padlock, and slipped in through the basement. They weren't there to loot the place. They were there to reopen and run it themselves.

For nearly two decades, they succeeded — running the twenty-two-story Hotel Bauen as a worker cooperative, with no owners and no bosses. This episode of Talking Trash tells the story of how they pulled it off, and what a five-star hotel in Argentina can tell us about a much bigger question: what happens to the buildings, businesses, and workforces that our systems decide to discard?

Our guide is ethnographer Katherine Sobering, author of The People's Hotel: Working for Justice in Argentina (Duke University Press, 2022), and an assistant professor of sociology at the University of North Texas. To understand the Bauen, she didn't just interview its workers over the course of a decade — she worked there herself, rotating between departments, and drinking more yerba mate than any person should.

Built for the World Cup, while masking a violent dictatorship

The Bauen was one of the hotels built to welcome the world for the 1978 World Cup — a tournament Argentina hosted and won at home, its first championship ever. It was a glittering arrival on the world stage: seven lounges, two restaurants, an auditorium, a pool, a nightclub, all draped in dark glass.

But the glamour had a dark foundation. At the time, Argentina was in the throes of a violent, US-backed military dictatorship that "disappeared" more than 30,000 people in five years — many of them organizers, labor activists, and dissidents. The regime wanted to clean up the city and impress the world for the games, and it backed the construction of hotels like the Bauen to do it. As Sobering puts it, the building was at once a luxury destination for international tourists and a monument to authoritarian power.

That origin turned out to matter enormously. The hotel was built with a state loan the original private owners never repaid — a detail the workers would later use to argue that a building financed by public money, and never paid back, belonged, in some sense, to the public.

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The rise of Argentina’s recuperated-business movement

Through the 1990s, Argentina deregulated its economy, manipulated its currency, and rewrote long-standing labor laws. By 2001, it all converged into one of the worst economic collapses of the modern era. Roughly 40% of the population was unemployed or below the poverty line; most people were locked out of their own bank accounts.

Out of that collapse came a movement: “empresas recuperadas” – worker-recuperated businesses. Across the country, workers whose employers had shut down began reopening those workplaces and running them themselves, this time without a boss. Factories. A hospital. A school. And, in the heart of downtown Buenos Aires, a luxury hotel.

The Bauen had been hollowed out for years before it closed. Owners subcontracted work, changed their name to strip workers of seniority and dodge taxes and labor obligations, all while smuggling profits outside the country. When it finally shut its doors in 2001, about 70 workers were left, down from hundreds at its height. They walked out assuming that was the end. Then the movement found them.

Sharing the work a hotel is designed to hide

Taking the hotel back was only the beginning. What made the Bauen remarkable was the democratic architecture that workers chose to run its everyday operations.

Members rotated through the hotel's departments rather than staying locked into a single role. The idea was that no one should be permanently stuck with the hardest or lowest-status work — and no one permanently above it. Sociologist Rosabeth Moss Kanter asks, “In utopia… who takes out the garbage?” At the Bauen, the answer was that everyone did it, in turn.

That job rotation was tied to an even more radical choice: everyone was paid the same. That said, there were democratically approved variations for things like overtime, back-to-school expenses, or long tenure. And because pay hovered near minimum wage, the co-op built other systems to support members — a time bank, emergency credit, and bulk-buying that passed grocery savings along — what Sobering calls "survival finance.”

These principles were the co-op's way of dismantling the hierarchies that most workplaces take for granted, where the labor we call "unskilled" is valued least, and paid less accordingly. At the Bauen, the argument ran the other way: without every job, the hotel doesn't function — so every job, and every person doing it, counts the same.

As a built environment, Sobering observes, a hotel is designed to make certain things visible and certain things invisible. There’s the polished lobby that welcomes guests, and behind and beneath it, the hidden spaces that keep the business running. At the Bauen, trash moved down through the service elevators to sub-levels and out through tunnels. The laundry — which hotels generate an enormous amount of — sat at the very top of the tower, above even the ballroom with its 360-degree views, reachable only by a set of stairs.

Another thing hidden? A daily social ritual that proved essential to Katie's fieldwork: the mate break. A shared gourd of loose-leaf, highly-caffeinated tea, passed hand to hand and refilled from a thermos. It was too informal to happen in front of guests, so it circulated in the break rooms, the back offices, the spaces behind the reception desk. It was there people talked freely, and Katie learned the ins and outs of the workplace, while battling sleep problems.

Building equality, from Buenos Aires to Baltimore

Working at the Bauen changed people, often in ways they never expected. Members who'd been apolitical or comfortably middle-class before the crisis became deeply invested in the co-op's mission, and one worker who hadn't finished elementary school was elected to a seat on the administrative council, bringing his daughter to work to see what he'd become. But Sobering is careful not to make it a fairy tale: some people took the job and quit, meetings were often dominated by overpowering veterans, and the job rotation had limits that broke down along familiar gender lines. It was far from a realized utopia.

She studies the Bauen as an "equality project": an organized, deliberate, imperfect effort to build more equal relationships inside a workplace. The word project matters: to project is to throw something forward, into the future. Equality, in her telling, isn't a thing you find lying around and protect; it's something you imagine first and build toward, knowing you might not arrive. And it points to a real gap in the research, she notes — we've studied inequality exhaustively, but spent far less effort on the opposite question of how to proactively build equality. Hotel Bauen is one imperfect, time-bound answer.

After running as a cooperative for the better part of two decades, the workers couldn't finance the building's mounting repairs — and in 2020, a state-mandated, COVID-era closure shut the doors for good. The cooperative outlived the address: some members went on to start a café nearby, and the recuperated-business movement continues, with roughly 400 worker-run businesses operating in Argentina today and some 15,000 people involved.

Around the world, as downtowns struggle and a generation of small-business owners retire, the same question surfaces: when an owner walks away, who inherits what’s left? I first discovered Katie’s book at the worker-owned Red Emma’s bookstore and cafe in downtown Baltimore, which has proved this model can work for over two decades running. In recent years, local stores like The Wine Source and Common Ground Cafe have seen workers buy out retiring or negligent owners. The Bauen's workers had to break a padlock to get there. Others can start a conversation with owners, while the door's still open.

When I raised these examples, Sobering pointed to a much larger shift — what economists call the "silver tsunami." Roughly half of America's small businesses are owned by people over 55, and by some estimates more than two million of them will change hands over the next decade as their founders retire. Many have no succession plan, no interested heir, and no obvious buyer — which means the default outcome for a huge number of beloved local businesses is simply to close, or to be absorbed by a chain or a private-equity roll-up. 

But inside that looming loss is a rare generational opening: the people who already know how to run these businesses — and who've produced their value, shift after shift — have a real shot at finally owning the value of their labor.

Additional resources

If this episode left you curious to learn more, start with Katie’s book and the documentary work on Argentina's empresas recuperadas movement. Then, dig further into reporting on the American co-op wave and fights over abandoned buildings around the world. Most importantly, use the directories below to support worker-owned businesses near you that are keeping profits within the community. 

READ

WATCH

  • DiFilm's Hotel BAUEN, Taken Over by Its Workers (2006) — a news report filmed inside the occupied hotel, with archival footage of the workers who took it over.

  • Avi Lewis and Naomi Klein's The Take (2004) — a documentary following Argentina's worker-recuperated factories in the wake of the 2001 collapse.

  • Denise Zmekhol's Skin of Glass (2023) — a documentary on an abandoned São Paulo glass tower, designed by her own architect father, occupied by homeless families — where seizing an empty building was legal, housing being a constitutional right in Brazil.

ACT

  • Find and support a co-op near you. workerowned.info maps worker-owned cafés and restaurants by city, and the U.S. Federation of Worker Cooperatives directory lists hundreds more nationwide — spending your money at one is the lowest-effort way to back the model.

  • Help a retiring owner sell to their workers. Project Equity guides business owners through employee buyouts — a first stop if you know a local business facing the "silver tsunami."

  • Learn how to start or convert a co-op. The Democracy at Work Institute offers national tools and resources for launching a worker cooperative or transitioning an existing business into one.

  • Back the incubators doing local work. Groups like the Baltimore Roundtable for Economic Democracy (BRED) seed and support worker co-ops city by city — a model for what a local cooperative ecosystem can look like.

Episode 2 designs for Talking Trash | Art Director: Frances Miller | Photography courtesy of Martin Barzilai: https://martin-barzilai.com/

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Ep. 001: Cleaning up the largest industrial disaster in US history