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The Mondragon Corporation is a
corporation A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity (a legal entity recognized by private and public law "born out of statute"; a legal person in legal context) and r ...
and
federation A federation (also known as a federal state) is a political entity characterized by a union of partially self-governing provinces, states, or other regions under a central federal government (federalism). In a federation, the self-governin ...
of
worker cooperative A worker cooperative is a cooperative owned and Workers' self-management, self-managed by its workers. This control may mean a firm where every worker-owner participates in decision-making in a democratic fashion, or it may refer to one in which ...
s based in the
Basque Basque may refer to: * Basques, an ethnic group of Spain and France * Basque language, their language Places * Basque Country (greater region), the homeland of the Basque people with parts in both Spain and France * Basque Country (autonomous co ...
region of
Spain , image_flag = Bandera de España.svg , image_coat = Escudo de España (mazonado).svg , national_motto = ''Plus ultra'' (Latin)(English: "Further Beyond") , national_anthem = (English: "Royal March") , i ...
. It was founded in the town of Mondragon in 1956 by
José María Arizmendiarrieta Father José María Arizmendiarrieta Madariaga ( Marquina-Xemein, Bizkaia, Spain, April 22, 1915 - Mondragon, Gipuzkoa, Spain, November 29, 1976) was a Basque Catholic priest and promoter of the cooperative companies of the Mondragon Corporat ...
and a group of his students at a technical college he founded. Its first product was paraffin heaters. It is the seventh-largest Spanish company in terms of
asset turnover Asset turnover (ATO), total asset turnover, or asset turns is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue or sales income to the company. Asset turnover is considered to be an Activity ...
and the leading business group in the Basque Country. At the end of 2016, it employed 74,117 people in 257 companies and organizations in four areas of activity: finance, industry, retail and knowledge. By 2019, 81,507 people were employed. Mondragon
cooperative A cooperative (also known as co-operative, co-op, or coop) is "an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically-control ...
s operate in accordance with the Statement on the Co-operative Identity maintained by the
International Co-operative Alliance The International Co-operative Alliance (ICA) is a non-governmental co-operative federation or, more precisely, a co-operative union representing co-operatives and the co-operative movement worldwide. It was founded in 1895 to unite, represent an ...
.


History

In 1941, a young Catholic priest,
José María Arizmendiarrieta Father José María Arizmendiarrieta Madariaga ( Marquina-Xemein, Bizkaia, Spain, April 22, 1915 - Mondragon, Gipuzkoa, Spain, November 29, 1976) was a Basque Catholic priest and promoter of the cooperative companies of the Mondragon Corporat ...
settled in Mondragón, a town with a population of 7,000 that had not yet recovered from the poverty, hunger, exile, and tension of the
Spanish Civil War The Spanish Civil War ( es, Guerra Civil Española)) or The Revolution ( es, La Revolución, link=no) among Nationalists, the Fourth Carlist War ( es, Cuarta Guerra Carlista, link=no) among Carlists, and The Rebellion ( es, La Rebelión, lin ...
. In 1943, Arizmendiarrieta established a technical college which became a training ground for managers, engineers and skilled labour for local companies, and primarily for the co-operatives. Arizmendiarrieta spent a number of years educating young people about a form of
humanism Humanism is a philosophical stance that emphasizes the individual and social potential and agency of human beings. It considers human beings the starting point for serious moral and philosophical inquiry. The meaning of the term "humani ...
based on solidarity and participation, in harmony with
Catholic social teaching Catholic social teaching, commonly abbreviated CST, is an area of Catholic doctrine concerning matters of human dignity and the common good in society. The ideas address oppression, the role of the state (polity), state, subsidiarity, social o ...
, and the importance of acquiring the necessary technical knowledge before creating the first
co-operative A cooperative (also known as co-operative, co-op, or coop) is "an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically-control ...
. In 1955, he selected five young people to establish the first company of the co-operative and industrial beginning of the Mondragon Corporation. The company was called Talleres Ulgor, an acronym derived from the surnames of Usatorre, Larrañaga, Gorroñogoitia, Ormaechea, and Ortubay, known today as "
Fagor Fagor Electrodoméstico was a large domestic and commercial appliance manufacturer based in the Basque Country, Spain and run by the Mondragon Corporation. Fagor was Spain's largest consumer appliance company and the fifth largest electrical ap ...
Electrodomésticos". In the first 15 years many co-operatives were established, thanks to the
autarky Autarky is the characteristic of self-sufficiency, usually applied to societies, communities, states, and their economic systems. Autarky as an ideal or method has been embraced by a wide range of political ideologies and movements, especially ...
of the market and the awakening of the
Spanish economy The economy of Spain is a highly developed social market economy. It is the world's sixteenth-largest by nominal GDP and the sixth-largest in Europe. Spain is a member of the European Union and the eurozone, as well as the Organization for Eco ...
. During these years, also with the encouragement of Don José María Arizmendiarrieta, the
Caja Laboral Caja Laboral Popular Cooperativa de Crédito or Caja Laboral (Workers' Credit Union) was a Spanish credit union established in 1959 as part of the Mondragon Corporation and headquartered in Mondragón, in the Basque Country of Spain. The major ...
(1959) and the Social Welfare Body Lagun Aro (1966) were established that played a key role. The first local group was created, Ularco. In 1969,
Eroski Eroski is a Spanish supermarket chain with nearly 1,000 outlets spread across Spain (excluding franchises). It is run as a worker-consumer hybrid co-operative within the Mondragón Corporation group. The establishments vary in size from the la ...
was founded by merging ten small local
consumer co-operative A consumers' co-operative is an enterprise owned by consumers and managed democratically and that aims at fulfilling the needs and aspirations of its members. Such co-operatives operate within the market system, independently of the state, as a fo ...
s. During the next 20 years, from 1970 to 1990, the dynamic continued, with a strong increase in new co-operatives promoted by Caja Laboral's Business Division, the promotion of co-operative associations, the formation of local groups, and the founding of the Ikerlan Research Centre in 1974. With Spain scheduled to join the
European Economic Community The European Economic Community (EEC) was a regional organization created by the Treaty of Rome of 1957,Today the largely rewritten treaty continues in force as the ''Treaty on the functioning of the European Union'', as renamed by the Lisb ...
in 1986, it was decided in 1984 to establish the "Mondragon Co-operative Group", the forerunner of the current corporation. In-service training for managers was strengthened by creating Otalora, dedicated to training, and the dissemination of co-operatives. The Group consisted of 23,130 workers at the end of 1990. On the international stage, the aim was to respond to growing
globalisation Globalization, or globalisation (Commonwealth English; see spelling differences), is the process of interaction and integration among people, companies, and governments worldwide. The term ''globalization'' first appeared in the early 20t ...
, expanding abroad by establishing production plants in a number of countries. The first was the Copreci plant in
Mexico Mexico (Spanish: México), officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatema ...
in 1990, followed by many others: up to 73 by the end of 2008, and 122 at the end of 2013. The goals were to increase competitiveness and market share, bring component supply closer to customers' plants, especially in the automotive and
domestic appliance A major appliance, also known as a large domestic appliance or large electric appliance or simply a large appliance, large domestic, or large electric, is a non-portable or semi-portable machine used for routine housekeeping tasks such as cook ...
sectors, and to strengthen employment in the Basque Country by promoting exports of co-operatives' products by means of new platforms. Between 2002 and 2007, Fagor and Eroski issued bonds (). While they were commercialized as safe deposits, the courts classed them as riskier debt instruments. When the yields fell during the financial crisis, bond-holders sued against the cooperatives. In 2008, the worker-owners of the cooperatives Ampo (metal casting) and
Irizar Irizar i4LE in Madrid Irizar Group is a Spanish-based manufacturer of luxury buses and coaches. Established in 1889, the company is located in Ormaiztegi in the Basque Country, Spain. With a commercial presence in over 90 countries, its ...
(coaches) voted to leave the corporation. In October 2009, the
United Steelworkers The United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, commonly known as the United Steelworkers (USW), is a general trade union with members across North America. Headquar ...
announced an agreement with Mondragon to create
worker cooperative A worker cooperative is a cooperative owned and Workers' self-management, self-managed by its workers. This control may mean a firm where every worker-owner participates in decision-making in a democratic fashion, or it may refer to one in which ...
s in the United States. On 26 March 2012, the USW, Mondragon, and the Ohio Employee Ownership Center (OEOC) announced their detailed union co-op model. The industrial sector ended 2012 with a new record of €4 billion in international sales, beating sales figures from before the
financial crisis of 2007–2008 Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of fi ...
. Mondragon opened 11 new production subsidiaries. International sales that year accounted for 69% of all sales, a 26% increase from 2009 to 2012, and with 14,000 employees abroad. Mondragon's share in the
BRIC BRIC is a grouping acronym referring to the developing countries of Brazil, Russia, India, and China, which are identified as rising economic powers. It is typically rendered as "the BRIC," "the BRIC countries," "the BRIC economies," or alte ...
markets increased to 20% compared to the previous year. In 2013, international sales grew by 6.7% and accounted for 71.1% of total sales.Internationalisation and innovation, keys to the evolution of MONDRAGON cooperatives in 2013
8 September 2014, mondragon-corporation.com
On 16 October 2013, domestic appliance company Fagor Electrodomésticos filed for bankruptcy under Spanish law to renegotiate €1,1 billion of debt, after suffering heavy losses during the
eurocrisis The European debt crisis, often also referred to as the eurozone crisis or the European sovereign debt crisis, is a multi-year debt crisis that took place in the European Union (EU) from 2009 until the mid to late 2010s. Several eurozone membe ...
putting 5,600 employees at risk of losing their jobs. This was followed by the bankruptcy of the whole Fagor group on 6 November 2013. In July 2014, Fagor was bought by Catalonian company Cata for €42.5 million. Cata pledged to create 705 direct jobs in the Basque Country and to continue the brand names Fagor, Edesa, Aspes, and Splendid. In 2022, the worker-owners of ULMA Group (scaffolding) and
Orona Orona atoll, also known as Hull Island, is one of the Phoenix Islands in the Republic of Kiribati. It measures approximately by , and like Kanton, is a narrow ribbon of land surrounding a sizable lagoon with depths of . Numerous passages connec ...
(elevators) voted to leave the corporation. As successful cooperatives they were contributing 10% of their profit to a common fund supporting ailing cooperatives. They will not contribute to the solidarity fund but they will keep insuring their workers with Lagun Aro and collaborate with Mondragon Unibertsitatea and other cooperatives in the group.


Business culture

Mondragon co-operatives are united by a
humanist Humanism is a philosophical stance that emphasizes the individual and social potential and agency of human beings. It considers human beings the starting point for serious moral and philosophical inquiry. The meaning of the term "humani ...
concept of business, a philosophy of participation and solidarity, and a shared business culture. The culture is rooted in a shared mission and a number of principles, corporate values and business policies. Over the years, these links have been embodied in a series of operating rules approved on a majority basis by the Co-operative Congresses, which regulate the activity of the Governing Bodies of the corporation (Standing Committee, General Council), the Grassroots Co-operatives and the Divisions they belong to, from the organisational, institutional and economic points of view as well as in terms of assets. This framework of business culture has been structured based on a common culture derived from the 10 Basic
Co-operative Principles The Rochdale Principles are a set of ideals for the operation of cooperatives. They were first set out in 1844 by the Rochdale Society of Equitable Pioneers in Rochdale, England and have formed the basis for the principles on which co-operativ ...
, in which Mondragon is rooted: Open Admission, Democratic Organisation, the Sovereignty of Labour, Instrumental and Subordinate Nature of Capital, Participatory Management, Payment Solidarity, Inter-cooperation, Social Transformation, Universality and Education. This philosophy is complemented by four corporate values: ''Co-operation'', acting as owners and protagonists; ''Participation'', which takes shape as a commitment to management; ''Social Responsibility'', by means of the distribution of wealth based on solidarity; and ''Innovation'', focusing on constant renewal in all areas. This business culture translates into compliance with a number of Basic Objectives (Customer Focus, Development, Innovation, Profitability, People in Co-operation and Involvement in the Community) and General Policies approved by the Co-operative Congress, which are taken on board at all the corporation's organisational levels and incorporated into the four-year strategic plans and the annual business plans of the individual co-operatives, divisions, and the corporation as a whole.


Wage regulation

At Mondragon, there are agreed-upon wage ratios between executive work and field or factory work which earns a minimum wage. These ratios range from 3:1 to 9:1 in different cooperatives and average 5:1. That is, the general manager of an average Mondragon cooperative earns no more than 5 times as much as the theoretical minimum wage paid in their cooperative. For most workers, this ratio is smaller because there are few Mondragon worker-owners that earn minimum wages, because most jobs are somewhat specialized and are classified at higher wage levels. The wage ratio of a cooperative is decided periodically by its worker-owners through a democratic vote. Compared to similar jobs at local industries, Mondragon managers' wages are considerably lower (as some companies pay their best paid managers hundreds of times more than the lowest-paid employee of the company) and equivalent for middle management, technical and professional levels. Lower wage levels are on average 13% higher than similar jobs at local businesses. Spain's
progressive tax A progressive tax is a tax in which the tax rate increases as the taxable amount increases.Sommerfeld, Ray M., Silvia A. Madeo, Kenneth E. Anderson, Betty R. Jackson (1992), ''Concepts of Taxation'', Dryden Press: Fort Worth, TX The term ''progre ...
rate further reduces any disparity in pay. These comparatively low wages can make it very difficult to recruit managers from investor-owned firms.


Business sectors

Mondragon Corporation operates in four areas: finance, industry, retail, and knowledge, with the latter distinguishing Mondragon from other business groups. In 2013, the corporation posted a total revenue of over €12 billion (roughly US$16 billion), and employed 74,061 workers, making it Spain's fourth-largest industrial and tenth-largest financial group.


Finance

This area includes the banking business of Laboral Kutxa, the insurance company ''Seguros Lagun Aro'', and the Voluntary Social Welfare Body ''Lagun Aro'', which had an asset fund totaling €5,566 million at the end of 2014. The yield obtained from this fund is used to cover long-term retirement, widowhood, and invalidity benefits, complementary to those offered by the Spanish
social security Welfare, or commonly social welfare, is a type of government support intended to ensure that members of a society can meet basic human needs such as food and shelter. Social security may either be synonymous with welfare, or refer specificall ...
system.


Industry

The corporation's companies manufacture consumer goods,
capital goods The economic concept of a capital good (also called complex product systems (CoPS),H. Rush, "Managing innovation in complex product systems (CoPS)," IEE Colloquium on EPSRC Technology Management Initiative (Engineering & Physical Sciences Researc ...
, industrial components, products, and systems for construction, and services. The latter includes very diverse business groups such as Abantail: Adaptive design optimization, Alecop: Engineering training, LKS Consultores: Attorneys etc., KREAN: Architects and engineers. MCCTelecom: Telecommunication engineering. Mondragon Lingua: Translation and language schools, Mondragon Sistemas: Automation, Industrial Computing and Telecommunications. Ondoan: Turnkey projects in the energy and environmental sector. In the leisure and sports area, it manufactures
Orbea Orbea is a bicycle manufacturer based in Mallabia, Spain. It is part of the Mondragón Cooperative Corporation and Spain's largest bicycle manufacturer. Orbea manufactures and assembles bikes at their own factory in Mallabia, the other models ...
bicycles, exercise equipment and items for camping, garden and beach. In capital goods, Mondragon posted a turnover of €976 million in 2009 and is the leading Spanish manufacturer of machining (Danobat Group) and sheet metal forming (Fagor Arrasate Group) machine tools. These machines are complemented by automation and control products for machine tools, packaging machinery, machinery for automating assembly processes and processing wood, forklift trucks, electric transformers, integrated equipment for the catering industry, cold stores, and refrigeration equipment. Specifically focusing on the automotive sector, the corporation also manufactures a wide variety of dies, molds and tooling for casting iron and aluminium, and occupies a leading position in machinery for the casting sector. In Industrial Components, Mondragon posted a turnover of €1.5 billion in 2009, a sector in which it operates as an integrated supplier for the leading car manufacturers, offering from the design and development of a part to the industrialization and supply of components and assemblies. It has different business units such as brakes, axles, suspension, transmission, engines, aluminium wheel rims, fluid conduction, and other internal and external vehicle components. It also produces components for the main domestic appliance manufacturers in three business areas: white goods, home comfort, and electronics. And it manufactures
flange A flange is a protruded ridge, lip or rim (wheel), rim, either external or internal, that serves to increase shear strength, strength (as the flange of an iron beam (structure), beam such as an I-beam or a T-beam); for easy attachment/transfer of ...
s and pipe accessories for processing oil-gas, petrochemical plants and power generation, copper and aluminium electrical conductors, and components for conveyors. In construction, sales totaled €974 million in 2009. Mondragon has constructed buildings and important infrastructure projects. It designs and builds large metallic (URSSA), laminated wood and prefabricated concrete structures; supplies prefabricated parts in polymer concrete; offers solutions for
formwork Formwork is Molding (process), molds into which concrete or similar materials are either precast concrete, precast or cast-in-place concrete, cast-in-place. In the context of concrete construction, the falsework supports the shuttering mold ...
and structures ( ULMA Group) as well as public works machinery and the industrialization of the construction process, including engineering and assembly services. The ORONA Group produces elevators. In services to business, sales totaled €248 million in 2008, including business consultancy services,
architecture Architecture is the art and technique of designing and building, as distinguished from the skills associated with construction. It is both the process and the product of sketching, conceiving, planning, designing, and constructing building ...
and
engineering Engineering is the use of scientific method, scientific principles to design and build machines, structures, and other items, including bridges, tunnels, roads, vehicles, and buildings. The discipline of engineering encompasses a broad rang ...
, property consulting, design and innovation (LKS Group),
systems engineering Systems engineering is an interdisciplinary field of engineering and engineering management that focuses on how to design, integrate, and manage complex systems over their enterprise life cycle, life cycles. At its core, systems engineering util ...
for electromechanical installations, and integrated logistics engineering. It also offers a modern language service, manufactures educational equipment, and provides graphic arts services (mccgraphics S.Coop). In 2013, 71.1% of turnover came from international sales. Sales resulting from the export of products abroad and production generated in the 122 subsidiaries located in several different countries: China (15), France (17), Poland (8), Czech Republic (7), Mexico (8), Brazil (5), Germany (4), Italy (4), United Kingdom (3), Romania (3), United States (4), Turkey (2), Portugal (2), Slovakia (2), India (5), Thailand (1) and Morocco (1). Overall, in 2013 these 122 plants provided work for more than 11,000 people. The corporate industrial park in
Kunshan Kunshan is a county-level city in southeastern Jiangsu province with Shanghai bordering its eastern border and Suzhou on its western boundary. It is under the administration of the prefecture-level city of Suzhou. Name There is a strong pos ...
, close to
Shanghai Shanghai (; , , Standard Mandarin pronunciation: ) is one of the four direct-administered municipalities of the People's Republic of China (PRC). The city is located on the southern estuary of the Yangtze River, with the Huangpu River flow ...
houses seven subsidiaries. In 2012, it opened 11 new subsidiaries abroad, employing around 14,000 people. Its international sales that year marked a record number of 69% of its total sales (€5.8 billion, with a 2% fall compared to the previous year). Mondragon also participated in 91 international R&D projects. In 2014, the industrial cooperatives created 1,000 jobs, and internationalization continued with 125 production subsidiaries abroad – 3 more than the year before.Tu Lankid
MONDRAGON cooperatives in industrial sector create 1.000 jobs in 2014
14 July 2015


Retail

Mondragon runs
Eroski Eroski is a Spanish supermarket chain with nearly 1,000 outlets spread across Spain (excluding franchises). It is run as a worker-consumer hybrid co-operative within the Mondragón Corporation group. The establishments vary in size from the la ...
, one of the leading retail groups all over Spain and in southern France, and maintains close contacts with the French group
Les Mousquetaires Les Mousquetaires, known as in Portugal, is a privately owned retailing symbol group based in France and operating internationally. Its head office is in Bondoufle, France France (), officially the French Republic ( ), is a country pri ...
and the German retailer
Edeka The Edeka Group is the largest German supermarket corporation , holding a market share of 20.3%. Founded in 1907, it consists today of several co-operatives of independent supermarkets all operating under the umbrella organisation ''Edeka Zentr ...
, with whom it set up the Alidis international purchasing group in 2002. The worker-owners and consumer-members participate in the co-operative's decision-making bodies and management of Eroski. At the end of 2013, Eroski posted a turnover of €6.6 billion, operating 2.069 stores made up of 90 Eroski hypermarkets, 1,211 Eroski/center, Caprabo, Eroski/city, Aliprox, Familia, Onda and Cash & Carry supermarkets, 155 branches of Eroski travel agencies, 63 petrol stations, 39 Forum Sport stores and 221 IF perfume stores. In southern France Eroski had 4 hypermarkets, 16 supermarkets and 17 petrol stations, and 4 perfume stores in Andorra. Retail includes the food group ''Erkop'', for catering, cleaning, stock-breeding, and horticulture with ''Auzo Lagun'', a co-operative in group catering and cleaning of buildings and premises, and integrated service in the health sector. In 2008, worker-members voted to expand the cooperative transformation to the retail group as a whole, turning subsidiaries into
co-operative A cooperative (also known as co-operative, co-op, or coop) is "an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically-control ...
s, and making salaried workers worker-members.


Knowledge

This area has a dual focus: education-training and innovation, which have both been key elements in the development of the corporation. Training-education is mainly linked to the dynamism of
Mondragon University Mondragon University ( eu, Mondragon Unibertsitatea, MU) is a non-profit cooperative private university in the Basque Country, officially established and recognised in 1997. It is part of Mondragon Corporation. Its main campus is in Mondragó ...
, the significant role that Politeknika Ikastegia Txorierri, Arizmendi Ikastola and Lea Artibai Ikastetxea play in their respective areas and the activity of the Management and Co-operative Development Centre Otalora. Mondragon University is a co-operative university, which combines the development of knowledge, skills, and values, and maintains close relations with business, especially Mondragon co-operatives. Technological innovation is generated through the co-operatives' own R&D departments, the Corporate Science and Technology Plan, the corporation's 12 technology centers and the Garaia Innovation Park. The 15 technology centers play a fundamental role in the development of the sectors of focus. In 2009 they employed 742 people and had a budget of €53.7 million. In 2013 its network of technology centers and R&D units provided employment for 1,700 people and the commitment to R&D&I matters amounted to 136 million Euros, 8.5% of added value. Mondragon has 479 families of Patents for Inventions, which accounts for 25% patents in the Basque Country, participating in more than 30 R&D cooperation projects at the European level.


Reactions

In 2012
Richard D. Wolff Richard David Wolff (born April 1, 1942) is an American Marxian economist known for his work on economic methodology and class analysis. He is professor emeritus of economics at the University of Massachusetts Amherst and a visiting professor ...
, an American professor of economics, hailed the Mondragon set of enterprises, including the good wages it provides for employees, the empowerment of ordinary workers in decision making, and the measure of equality for female workers, as a major success and cited it as a working model of an alternative to the capitalist mode of production. In an April 2012 interview
Noam Chomsky Avram Noam Chomsky (born December 7, 1928) is an American public intellectual: a linguist, philosopher, cognitive scientist, historian, social critic, and political activist. Sometimes called "the father of modern linguistics", Chomsky is ...
said that while Mondragon offers an alternative to capitalism, it was still embedded in a capitalist system which limits Mondragon's decisions: Vicenç Navarro wrote that from a business perspective, Mondragon is successful in matching efficiency with solidarity and democracy. However, he writes that the number of employees who are not owners has increased more rapidly than worker-owners, to a point that in some companies, for example in the supermarket chains owned by Mondragon, the first is a much larger group than the second. In Navarro's view, this establishes a two-tier system – for example, in terms of whom to save in the case the company collapses. In the collapse of Fagor, the relocation of employees to other companies belonging to Mondragon favored those who were worker-owners, which may affect labor relations:Vincent Navarro
What About Cooperatives as a Solution? The Case of Mondragon
, ''
CounterPunch ''CounterPunch'' is a left-wing online magazine. Content includes a free section published five days a week as well as a subscriber-only area called CounterPunch+, where original articles are published weekly. ''CounterPunch'' is based in the Unit ...
'', 2014.04.30
The Mondragon system is one of four case studies analyzed in ''
Capital and the Debt Trap ''Capital and the Debt Trap'' is a research monograph by Claudia Sanchez Bajo and Bruno Roelants. The first four chapters provide a general summary of the economic instability afflicting the international economy at the time of publication (20 ...
'', which summarized evidence claiming that
cooperative A cooperative (also known as co-operative, co-op, or coop) is "an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically-control ...
s tend to last longer and are less susceptible to
perverse incentive A perverse incentive is an incentive that has an unintended and undesirable result that is contrary to the intentions of its designers. The cobra effect is the most direct kind of perverse incentive, typically because the incentive unintentionall ...
s and other problems of organizational governance than more traditionally managed organizations. The founders of
Cooperation Jackson Cooperation Jackson is an emerging network of worker cooperatives in Jackson, Mississippi, United States. It aims to develop a series of independent but connected democratic institutions to empower workers and residents of Jackson, particularly t ...
, a network of worker cooperatives in Jackson, Mississippi in the United States, cite Mondragon as a key inspiration.


Mondragon in fiction


Works of Kim Stanley Robinson

In '' 2312'', a
science fiction Science fiction (sometimes shortened to Sci-Fi or SF) is a genre of speculative fiction which typically deals with imaginative and futuristic concepts such as advanced science and technology, space exploration, time travel, parallel unive ...
novel by
Kim Stanley Robinson Kim Stanley Robinson (born March 23, 1952) is an American writer of science fiction. He has published twenty-two novels and numerous short stories and is best known for his ''Mars'' trilogy. His work has been translated into 24 languages. Many ...
, the Mondragon Corporation has evolved into a planned economy system called ''the Mondragon Accord''. The Mondragon Accord is controlled by means of a network of
AIs AIS may refer to: Medicine * Abbreviated Injury Scale, an anatomical-based coding system to classify and describe the severity of injuries * Acute ischemic stroke, the thromboembolic type of stroke * Androgen insensitivity syndrome, an intersex ...
running on ''quantum computers'', and rules large parts of the
Solar System The Solar SystemCapitalization of the name varies. The International Astronomical Union, the authoritative body regarding astronomical nomenclature, specifies capitalizing the names of all individual astronomical objects but uses mixed "Solar S ...
, including
Mercury Mercury commonly refers to: * Mercury (planet), the nearest planet to the Sun * Mercury (element), a metallic chemical element with the symbol Hg * Mercury (mythology), a Roman god Mercury or The Mercury may also refer to: Companies * Merc ...
and most of the
moons A natural satellite is, in the most common usage, an astronomical body that orbits a planet, dwarf planet, or small Solar System body (or sometimes another natural satellite). Natural satellites are often colloquially referred to as ''moons'' ...
of the
gas giant A gas giant is a giant planet composed mainly of hydrogen and helium. Gas giants are also called failed stars because they contain the same basic elements as a star. Jupiter and Saturn are the gas giants of the Solar System. The term "gas giant" ...
s; only part of
Earth Earth is the third planet from the Sun and the only astronomical object known to harbor life. While large volumes of water can be found throughout the Solar System, only Earth sustains liquid surface water. About 71% of Earth's surfa ...
, and its colonies in space, retain remnants of
capitalist Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, priva ...
economies, while
Mars Mars is the fourth planet from the Sun and the second-smallest planet in the Solar System, only being larger than Mercury (planet), Mercury. In the English language, Mars is named for the Mars (mythology), Roman god of war. Mars is a terr ...
has withdrawn from the Accord in the century preceding the story. The Mondragon Corporation already appeared in Robinson's earlier ''
Mars trilogy The ''Mars'' trilogy is a series of science fiction novels by Kim Stanley Robinson that chronicles the settlement and terraforming of the planet Mars through the personal and detailed viewpoints of a wide variety of characters spanning almost tw ...
'', as one of the Terran groups involved in the colonization and
terraforming Terraforming or terraformation ("Earth-shaping") is the hypothetical process of deliberately modifying the atmosphere, temperature, surface topography or ecology of a planet, moon, or other body to be similar to the environment of Earth to make ...
of
Mars Mars is the fourth planet from the Sun and the second-smallest planet in the Solar System, only being larger than Mercury (planet), Mercury. In the English language, Mars is named for the Mars (mythology), Roman god of war. Mars is a terr ...
; the coop is also portrayed as the inspiration of both the ''bogdanovist'' movement and the libertarian-leaning ''Praxis Corporation'' two of the main forces leading the revolution for the independence of Mars. In Robinson's book ''
The Ministry for the Future ''The Ministry for the Future'' is a climate fiction ("cli-fi") novel by American science fiction writer Kim Stanley Robinson published in 2020. Set in the near future, the novel follows a subsidiary body, established under the Paris Agreement, ...
'', the Mondragon Corporation is introduced in chapter 58 as a model for a future, post-capitalist, cooperative economy.


See also

* Cecosesola, association of cooperatives in Venezuela *
Distributism Distributism is an economic theory asserting that the world's productive assets should be widely owned rather than concentrated. Developed in the late 19th and early 20th centuries, distributism was based upon Catholic social teaching prin ...
*
Horizontalidad ''Horizontalidad'' (, horizontality or horizontalism) is a social relationship that advocates the creation, development, and maintenance of social structures for the equitable distribution of management power. These structures and relationships ...
*
John Lewis Partnership The John Lewis Partnership plc (JLP) is a British company which operates John Lewis & Partners department stores, Waitrose & Partners supermarkets, its banking and financial services, and other retail-related activities. The privately-held publ ...
* List of worker cooperatives *
Workers' self-management Workers' self-management, also referred to as labor management and organizational self-management, is a form of organizational management based on self-directed work processes on the part of an organization's workforce. Self-management is a def ...


References


Further reading

* Azurmendi, Joxe 1984:
El hombre cooperativo
'
''Spanish white goods company Fagor seeks protection from creditors''
(October 2013) *

(October 2013) * ttp://evertiq.com/news/32967 ''White-goods giant Fagor goes into administration''(October 2013) *''Cooperation for Economic Success. The Mondragon Case (2011) in Analyse & Kritik, 33 (1), 157–170 ''. Ramon Flecha & Iñaqui Santa Cru
http://www.analyse-und-kritik.net/en/abstracts_current.php#562
*''Making Mondragon: The Growth and Dynamics of the Worker Cooperative Complex'' (1991), William Whyte. *''We Build the Road as We Travel: Mondragon, A Cooperative Social System'', Roy Morrison. *''The Mondragon Cooperative Experience'' (1993), J. Ormachea. *''Cooperation at Work: The Mondragon Experience'' (1983), K. Bradely & A. Gelb. *''Values at Work: Employees participation meets market pressure at Mondragon'' (1999), G. Cheney. *''Mondragon: An economic analysis'' (1982), C. Logan & H. Thomas. *''The Myth of Mondragon: Cooperatives, Politics, and Working-Class Life in a Basque Town'' (1996), by Sharryn Kasmir, State University of New York Press. *''From Mondragon to America: Experiments in Community Economic Development'' (1997), by G. MacLeod, University College of Cape Breton Press. *"Jobs of Our Own: Building a Stakeholder Society" (1999), by Race Mathews, Pluto Press (Australia) and Comerford & Miller (London). . US reprint 2009, The Distributist Review Press. .

Interview by Thorne Dreyer (44:05) * ttp://theragblog.blogspot.com/search?q=mondragon Articles about the Mondragon Corporation on ''The Rag Blog'' {{Authority control Basque companies Cooperative federations Conglomerate companies established in 1956 Spanish companies established in 1956 Gipuzkoa