While I don’t have enough data to draw firm conclusions, I believe this structure produces decisions that are both different from and better than those of capitalist firms in two specific ways. 10. This is the question that brought me, and most of my traveling companions, to Mondragon in the first place. While the rest of Spain struggled to maintain economic stability after the Great Recession of 2008, areas around Mondragon remained fairly unaffected. Die Kooperativenmitglieder, die davon betroffen waren, hatten jedoch trotzdem weiter Arbeit. … Today, it is the wealthiest, with the majority of its residents as worker-owners of Mondragon. There are a host of intractable social problems in the US — homelessness, racism, addiction, obesity, violence, to name just a few — that may have economic elements, but cannot be solved even by a cooperative economic utopia. But all of these issues cited here exist in the United States and elsewhere, regardless of whether our economies are organized under capitalist or cooperative principles. WE ARE MONDRAGON A PROJECT SPANNING MORE THAN 60 YEARS, COMPETING IN GLOBAL MARKETS WITH ITS OWN MODEL BASED ON PEOPLE AND INTERCOOPERATION. There has been an increase in the number of women in managerial positions, conversations around using green energy in their R&D facility, and the development of a social transformation team. Der Grund: Sie wurden mit Maßnahmen gerettet, die heute noch in Krisenzeiten angewandt werden. Mondragon has been slowly making changes to take on a larger role in pushing for equitable changes locally. The Mondragon Cooperative Group, which is the 10th-largest entrepreneurial group in Spain, is one of the most outstanding examples of worker cooperatives in history (Mondragon Corporation, 2013). In Mondragon, all cooperatives must allocate a minimum of 10% of their net profits to the co-op’s social fund used for community investments. Workers in those other locations are not members of the cooperatives, and thus do no participate in democratic governance. According to what I’ve read, this happens very rarely (as one would hope and expect), but when it has happened, the decisions of the General Assembly have gone both ways — sometimes supporting “management” (i.e. The Mondragon cooperatives talk about social transformation, a more far-reaching, future-oriented goal that seeks the creation of social and economic systems that reinforce the best in human nature. Mondragon has become the world’s largest and most advanced cooperative economy. In Mondragon and elsewhere, there are still far fewer women than men studying engineering, a critical issue in Mondragon’s engineering-heavy industrial economy. It is the largest cooperative in the world. I went to Mondragon to see this system in action and to explore its relevance to the US. The General Assembly meets at least once a year to act on what sounds like a mostly pro forma agenda. And, of course, not all people want to be worker-owners.”. Your host throughout your stay will be a member of the Cooperative Outreach team, who will explain MONDRAGON’s story and its current situation, as well as answer your questions. As for K-12 education, the current U.S. educational establishment’s emphasis on improving STEM (science, technology, engineering and math) education is not misplaced. Worker cooperative … In 2011, the Basque Culinary Center was created and became part of Mondragon University. There is nothing in cooperativism that is inherently greener than any other structure. Few, if any, of these new workers have been offered membership in the cooperatives. That’s oppression. Size and success make Mondragon unique among cooperative experiments, and there is a great deal more that is admirable. This means organizing and building institutions together for what we need.”. That said, for the public part, the Mondragon system faces the same basic funding issues of defined benefit programs worldwide: uncertainty about where the money will come from in a volatile economy where current workers paying into the system are not keeping pace with the extended lifespans of retirees. A majority of the Mondragon cooperatives are in the industrial manufacturing sector, an increasingly sophisticated part of the economy, where the need for math and science skills is clear — and the US ability to compete successfully is marginal. The thing that was so refreshing about Mondragon was its willingness and ability to deal with facts on the ground, to allow practice to modify theory without losing sight of values. Mar 25, 2009 Kris rated it really liked it. This blog post reflects the author’s personal views and opinions, and does not represent the views and opinions of Beneficial State Bank and/or Beneficial State Foundation. The Mondragon Cooperative Group has engaged in a domestic expansion process since the early 1960s and internationally since the 1990s. “ There are three kinds of power. Cities across the U.S. are embracing worker cooperatives, writes Oscar Perry Abello at Next City. As for the availability of capital, all cooperatives — and the Mondragon cooperatives in particular — require that their member-owners invest seed capital in the enterprise, giving them a definite sense of “having skin in the game.” While these contributions are unlikely to be sufficient to meet the capital requirements of the enterprise, they are an important start. The priest of Mondragón, José María Arizmendiarrieta, wanted to help his community out of economic hardship. The thing that was so refreshing about Mondragon was its willingness and ability to deal with facts on the ground, to allow practice to modify theory without losing sight of values. In Mondragon, “large is beautiful” because large makes it possible to compete in global markets and thereby maximize employment — the ultimate goal of the worker-owned system. In all cases, they remained true to their core value — providing long-term employment (and other benefits) to their worker-owners — but they did so with creativity, self-sacrifice, an emphasis on fairness, and an impressive commitment to collaborative decision-making. In a difficult year of widespread crisis, the exports of the MONDRAGON cooperatives saw a spectacular leap accounting for close to €53.5m (8.9bn pesetas) which was a rise of more than 54% although the starting position (€35.3m, 5.9bn pesetas) seen from the perspective offered by time, was very modest. Finally, because these machines play a critical role in their customers’ production processes, they tend to compete on quality and reliability rather than price, and the customer necessity of maximizing “up-time” (that is, the time in which the machines are running properly and production is not halted) creates an important after-market service opportunity. Even with businesses they have acquired in Spain, an educational process must take place before assuming people are ready to be worker-owners. Although there were a handful of cooperatives where women were in the majority (such as the food service operation supporting the cooperatives) and we did see women in administrative positions in offices, I did not see or talk to enough women to get a feeling for their position in the Mondragon system. Mondragón’s history starts after the Spanish Civil War. Final reflections: Could the Mondragon system work in the US? 1 View comments Dec. 16. Second, as the environmental crisis worsens, it will create many new business opportunities for companies with the technical skills to address them. Although Mondragon cooperatives now operate in multiple sectors, the most significant cooperatives are worker-owned industrial enterprises competing globally in niche markets. her work on mission-led employee-owned firms and their potential as the next generation enterprise design that could be key to building a just economy. Founded in 1956 by Father José María Arizmendiarrieta, the Mondragon Cooperative Corporation currently consists of 102 federated cooperatives employing over 73,000 people. The most compelling reason we heard for why these international workers are not also owners is that there is not a culture of cooperatives in these foreign markets and Mondragon does not believe in, or have the capabilities for, proselytizing the cooperative form. Mondragon University is a cooperative university, founded in 1997 and officially recognised under Act 4/1997 of 30 May, albeit comprised of three educational cooperatives (Mondragon Higher Polytechnic School S.Coop, Enpresagintza S.Coop and Teacher Training School S.Coop). Qu'est ce que les "Learning Exploration" ? Power can assist us and we must guide it. But only 98 of those are federated cooperatives, while the rest are international production subsidiaries. [3] Sie hat ihren Sitz in Mondragón im spanischen Baskenland und ist global tätig. Over and over, I was struck by the non-doctrinaire adaptability articulated by our guide and demonstrated by the history of the individual cooperatives. At MONDRAGON, we welcome people from all over the world who want to visit and learn about the MONDRAGON Cooperative Experience. the Governing Council and Managing Director) and sometimes supporting the “workers” (i.e. In a cooperative, where the democratic process has a direct daily impact on people’s lives and livelihoods, the participation rate and level of thoughtfulness would be expected to be higher than in the more distant matters of representative government. MONDRAGON is the outcome of a cooperative business project launched in 1956. And in times of trouble, the General Assembly is a place for the entire cooperative to thrash out difficult issues. That’s advocacy. Lagun Aro pension funds are invested conservatively, thereby avoiding some of the self-inflicted insolvency problems created by the US profit-maximizing system. The assumption of the dominant culture — reinforced by our current economic system — is that each of us is on our own, out for ourselves (and our immediate families), and that the pursuit of material rewards (including extraordinary rewards) is the primary motivation for our economic behavior. Second, it is a highly technical niche, relatively insulated from competition from countries with large numbers of low-wage, unskilled workers. … I also noticed a lack of emphases on social and environmental impacts. The two other obstacles — culture and K-12 education — seem far more intractable at this point. Cleveland, Rochester, Madison, Oakland, Austin and New York City, to name a few. For U.S. citizens sharing an affinity for a leftist critique of capitalism, the very name “Mondragon” conjures up a humane, economic alternative in which the interests of workers trump the dictates of capital and the well-being of the many trumps the self-interest of the privileged few. Like many Americans who are concerned with rising inequality and environmental degradation, I was seeking an alternative to our current system’s focus on maximizing shareholder value. While the rest of Spain struggled to maintain economic stability after the Great Recession of 2008, areas around Mondragon remained fairly unaffected. The legacy of the past and present of the Mondragon cooperative experience, capitalised through an inmense experience and knowledge accumulated during these years, offers the opportunity to share it through unique educational offers and research areas. 3. One can imagine a sophisticated, cooperatively organized, service-based economy that would also require significant technical expertise. Mondragon may offer a worthy alternative. Mondragon Team Academy (LEINN) together with MONDRAGON and other companies, Foundations and NGOs united to mobilize young people to create solutions for the coronavirus. But always there is another day: so long as democracy continues, there is the opportunity for another vote, a different outcome. First, as environmental responsibility becomes an important consideration for both customers and worker-owners, it is likely to find its way into the mission and function of the cooperatives. They are given skill trainings and social safety nets to ensure sustainable employment. the Social Council). On this issue, there is good news on three fronts. The Mondragon Corporation is a corporation and federation of worker cooperatives based in the Basque region of Spain. And third, just as the cooperative’s expanded capacity came on line, the recession hit and the bottom fell out of the market. Created in 1997 and officially recognised by Law 4/1997 of 30th May. As a consequence, they do not participate in the benefits of worker-ownership. In a cooperative, the janitor and the CEO have the same voice in the General Assembly — in contrast to the capitalist shareholder system, where the number of votes is based on the amount of money invested in shares of the enterprise — typically by absentee shareholders who have no other interest in the firm. And all participants in the system are free to make choices with broadly defined benefits — not the narrow capitalist dictates of maximizing returns to shareholders. Shelves: econ. Jill Bamburg is a Co-Founder of the Bainbridge Graduate Institute and on the Faculty of Presidio Graduate School in San Francisco. The basic principle of democracy, in cooperatives and in nation-states, is one person, one vote. While I had imagined a “local living economy,” somewhat focused on bartering in line with E.F. Schumacher’s Small is Beautiful philosophy, that is not how Mondragon functions. At the heart of this transformation is the desire to emphasize cooperation as opposed to competition as the most likely path toward creating a future that maximizes the well-being of all. She informed me about her work on mission-led employee-owned firms and their potential as the next generation enterprise design that could be key to building a just economy. Creating for Humanity is a massive call to action that invites social innovators to present ideas, solutions or start-ups that respond to the needs created by the health crisis Power can assist us and we must guide it. Power than can crush us and we can and must resist it. It was founded in the town of Mondragon in 1956 by José María Arizmendiarrieta and a group of his students at a technical college he founded. Its first product was paraffin heaters. A case in point: “intercooperation” and the bankruptcy of Fagor Electrodomésticos. The fundamental issues that are well addressed by cooperativism — a reduction in economic inequality and a better alignment of the interests of workers, owners and managers — are critical. That’s oppression. In addition, the Mondragon cooperative system owns its own bank, university, social welfare agency, several business incubators, and a supermarket chain. Today, it consists of 98 cooperatives with more than 80,000 employees in areas of finance, industry, retail, and knowledge development. However, if an issue is particularly contentious and the Social Council is opposed to the decision of the Governing Council and Managing Director, it can bring the issue to the General Assembly for a vote of the broader membership. As I review my experience of Mondragon, I’m thinking this may well be its “secret sauce,” the key to its long-term success. At the time, the small town was plagued by mass unemployment and poverty. Our local guide was Ander Etxeberria, Director of Cooperative Dissemination. We didn’t have an opportunity to discuss the thousand relevant details, large and small, that would give us the basis for a good comparison to the rest of the US system, but we already know our ailing system offers the worst care for the highest price of any system in the developed world. As a result, Mondragon had to set up its own social safety net, which it organized as a cooperative called Lagun Aro. The tour I took was organized and led by Georgia Kelly of the Praxis Peace Institute. The coops have retained members’ jobs in Spain’s Basque country even during economic crises. This structure has created a group of people, who aren’t owners, but whose labor Mondragon now depends on. The Mondragon group of cooperatives is likely the most successful in the world with nearly 90,000 employees, 260 companies and an annual revenue of over 19 billion dollars. According to our tour leader, Georgia Kelly, “You cannot impose a cooperative culture where nothing like it exists,” she said. In Mondragon, the worker democracy explicitly seeks to balance the general interests of the firm with the particular interests of the individual workers, which are not always internally aligned. The government pension program is an unfunded system (pay-as-you-go), while Lagun Aro is an individual capitalization system. In the United States, a social justice culture focused more on creating our own alternatives, as opposed to fighting old paradigms needs further nurturance. Die Mondragon-Kooperative ist eine große Bewegung, die ihren Sitz in der Stadt Mondragon im Baskenland hat und in der der Besitz den Arbeitern gehört. The second contradiction at Mondragon relates to environmental issues. Worldwide, cooperatives are even more significant, representing well over $3 trillion in turnover, 12.6 million in employment, and over a billion people in total membership. It has over €35 billion in assets, €14 billion in revenues and has over 80,000 employees. Here are ten takeaways from the trip: I was not aware of my assumptions about Mondragon until I arrived and found myself surprised. I recently had the opportunity to visit Mondragon, Spain to immerse myself into the world of worker-cooperatives. And sometimes it is. His goal was social transformation and the economic structure of the cooperative enterprises was simply a means to that end. As Winston Churchill and others have observed, “democracy is the worst form of government except for all those other forms.” I’ve certainly had occasion to reflect on that statement since the 2016 election and the advent of the Trump administration. We visited one of the industrial cooperatives, ULMA Packaging, which makes machines that make packaging for perishable food products. In an export-led economy, such as Mondragon, much of the “local living economy” is based on what Michael Porter and others call “industrial clusters.” In fact, according to Etxeberria, Michael Porter created a strategic plan for the Basque government in the 1990s and helped to shape the industrial clusters operating today. When asked about specific issues at Mondragon that were troubling to me, our guide would sometimes shrug and say, “This is a democracy.” To me, that shrug said it all: sometimes people make thoughtful decisions, sometimes not; sometimes they take the time to participate in decision-making, sometimes not. When facts fail to conform to theory, there is a strong tendency on both sides to throw out the facts in order to preserve the theory. The Mondragon Corporation has over 266 business and cooperatives, in 32 countries. On October 27th, the United Steelworkers and Mondragon Internacional, the worldwide network of cooperatives based in Basque territory, announced a new alliance: PITTSBURGH - The United Steelworkers (USW) and MONDRAGON Internacional, S.A. today announced a framework agreement for collaboration in establishing MONDRAGON cooperatives in the manufacturing sector within the United … The Mondragon Corporation has over 266 business and cooperatives, in 32 countries. General Assembly: In most of the Mondragon industrial cooperatives, this is the organization of all worker-owners. The surprise was in the scale of the experiment. How cooperatives show resilience to the crisis can be watched in English, French, Spanish, Italian, Polish, Japanese, Greek, Turkish, Bulgarian and Korean here! So, ownership has compounding social benefits, stable wages and livelihoods reduce income inequality and improve public health. We were also told that to achieve a livable family wage, most families required two incomes. Even as “sustainability” issues have found a place in most global firms, I did not see much traction in Mondragon in either practice or articulated values. The governance structures supporting that critical difference are the General Assembly and the Social Council. Power than can crush us and we can and must resist it. Faculty of Humanities … Mondragon Worker Cooperative Documentary (---Must Watch---) It's 50 minutes and incredibly interesting. Die Bewegung wurde 1956 nach den Lehren von Jose Maria Arizmendietta aufgebaut. I find I have a deeper understanding of the limitations of the social justice approach as a viable platform for social change, as opposed to building the institutions that undergird economic transformation, like cooperative structures. The Governing Council is roughly equivalent to the Board of Directors; the Audit function corresponds to the audit committee of the board; the Managing Director to the CEO; the Managing Council to the executive leadership team; and the Departments to standard departments, whether organized functionally, divisionally, geographically, or along some other line. Zur MCC gehören mehr als 100 Unternehmen verschiedener Sektoren wie Maschinenbau, Automobilindustrie, Haushaltsgeräte, Bauindustrie, Einzelhandel (u. a. Supermarktkette Eroski), Banken und Versicherungen. The cooperatives are structured consistently, roughly as depicted below: Most of these structures have simple analogs in conventional capitalist firms. But it’s not just manufacturing. The graduates of this school founded the city’s first cooperatives. There are ways to overcome this issue, beginning with loan guarantees from those who understand and support the model. OUR ROADMAP MORE COMPETITIVE, COOPERATIVE AND FLEXIBLE. Building wealth thru worker coops. Disputes are resolved by the “owners” (i.e. Since its founding in 1956 by Father Jose Maria Arizmendiarrieta, Mondragon has become the world’s largest and most advanced cooperative economy. The critical difference, as noted previously, is that the purpose of the firm is to benefit its members rather than its shareholders. Michael Peck also offered specific examples of women in leadership positions, as the General Secretary for Mondragon’s Governing Council, the Mondragon Corporation’s CFO, and the CEO positions in several of the individual cooperatives. At one point our guide reminded us that Father Arizmendiarrieta was not interested in creating a cooperative economy. Because of the principle of “intercooperation” among the Mondragon cooperative enterprises — that is, the idea of connectedness and reciprocity among all the participants in the system — most the employees were relocated to other cooperatives. OUR AIM IS TO CONSTITUTE A BUSINESS It has an advisory role and does not make decisions. Workers buy into the cooperative with a fixed sum of money; usually a few hundred to a few thousand dollars. [5] Es ist damit nach eigene… The Mondragon Cooperative Group, which is the 10th-largest entrepreneurial group in Spain, is one of the most outstanding examples of worker cooperatives in history (Mondragon Corporation, 2013). In the “second level” cooperatives, that is, the cooperatives that serve other cooperatives, such as the bank and the health system, member-owners include both employees and representatives of the cooperatives served. Definition: Was ist Mondragon-Kooperative? Spain's Basque Country is home to the world’s largest co-operative Mondragon - a rare success story in a nation mired in recession. But then we can also be power ourselves. However, while individuals can evaluate complex issues, they don’t always take the time to do so. That said, its members elect the Governing Council, which in turn selects the Managing Director. Votes in the General Assembly are strictly apportioned on a one-member, one-vote basis. The third issue of concern had to do with the status of women. I am deeply grateful for the lessons learned in the 60 years of the Mondragon experiment and hope we can apply some of them here in the U.S. as we work to create a more equitable, sustainable economy. The Mondragon Cooperative Corporation (MCC) is a holding company for 110 cooperatives and 147 subsidiary companies. The surprise was in the scale of the experiment. Mondragon, with its strong technical and industrial skills, will be well positioned to take advantage of these new markets. Workers in Mondragon have the right to participate in a democratic decision-making governance structure. These are old, ingrained habits of thinking that will continue to persist among large segments of the US population, reinforced by neoliberal orthodoxy and business-driven consumerism. Although Mondragon offers numerous benefits through its distribution of wealth and power, the model is not entirely absent of inequities. This is an issue that I think Mondragon has figured out really well, striking an important balance between the need for democratic decision-making and managerial discretion. Together with the inhabitants of the town he founded a vocational school. First, I think it strikes the right balance between the economic survival of the firm and the economic benefits to the individual workers. By the time of our 2017 visit, only 60 former employees (three percent) remained unplaced. There are 2000 cooperatives in the Mondragon region with 97 of those connected under the Mondragon Cooperative Corporation (Etxeberria, 2019, n.p.). 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