Collectivist anarchism (also known as anarcho-collectivism) is a revolutionary doctrine that advocates the abolition of both the state and private ownership of the means of production. It instead envisions the means of production being owned collectively and controlled and managed by the producers themselves.
For the collectivization of the means of production, it was originally envisaged that workers will revolt and forcibly collectivize the means of production. Once collectivization takes place, money would be abolished to be replaced with labour notes and workers' salaries would be determined in democratic organizations based on job difficulty and the amount of time they contributed to production. These salaries would be used to purchase goods in a communal market. This contrasts with anarcho-communism where wages would be abolished, and where individuals would take freely from a storehouse of goods "to each according to his need." Thus, Bakunin's "Collectivist Anarchism," notwithstanding the title, is seen as a blend of individualism (specifically mutualism) and collectivism.
Collectivist anarchism is most commonly associated with Mikhail Bakunin, the anti-authoritarian sections of the First International, and the early Spanish anarchist movement.
From the Anarchist FAQ:
The major difference between collectivists and communists is over the question of "money" after a revolution. Anarcho-communists consider the abolition of money to be essential, while anarcho-collectivists consider the end of private ownership of the means of production to be the key. As Kropotkin noted, "[collectivist anarchism] express[es] a state of things in which all necessaries for production are owned in common by the labour groups and the free communes, while the ways of retribution [i.e. distribution] of labour, communist or otherwise, would be settled by each group for itself." Thus, while communism and collectivism both organise production in common via producers' associations, they differ in how the goods produced will be distributed. Communism is based on free consumption of all while collectivism is more likely to be based on the distribution of goods according to the labour contributed. However, most anarcho-collectivists think that, over time, as productivity increases and the sense of community becomes stronger, money will disappear.
Application of many collectivist anarchists projects have been successful, sources during the Spanish Revolution noted that in the Catalan region:
In distribution the collectives' co-operatives eliminated middlemen, small merchants, wholesalers, and profiteers, thus greatly reducing consumer prices. The collectives eliminated most of the parasitic elements from rural life, and would have wiped them out altogether if they were not protected by corrupt officials and by the political parties. Non-collectivised areas benefited indirectly from the lower prices as well as from free services often rendered by the collectives (laundries, cinemas, schools, barber and beauty parlours, etc.)
Tom Wetzel describes another collectivization...
Another industry that was totally re-organized was hair-cutting. Before July 19th, there had been 1,100 hairdressing parlors in Barcelona, most of them extremely marginal. The 5,000 assistant hairdressers were among the lowest-paid workers in Barcelona. The Generalitat had decreed a 40-hour week and 15 percent wage increase after July 19th – one of the Esquerra’s attempts to woo worker support. This spelled ruin for many hairdressing shops. A general assembly was held and it was agreed to shut down all the unprofitable shops. The 1,100 shops were replaced by a network of 235 neighborhood haircutting centers, with better equipment and lighting than the old shops. Due to the efficiencies gained, it was possible to raise wages by 40 percent. The entire network was run through assemblies of the CNT barber’s union. The former owners became members of the union.