Frequently, mondragon in the spanish basque region widely considered the most successful workerowned cooperative enterprise in the world is discussed as a model. The worker cooperative movements in italy, mondragon and france. Usw mondragon agreement more about the mondragon cooperative corporation. A critical analysis of the strengths, weaknesses and potentialities of the model. The mondragon cooperatives were restructured about 1992 into three divisions, namely industrial, finance and retail. The largest worker cooperative in the world, mondragon corporation, is based in the basque region of spain, best exemplifies this claim. Oct 19, 2016 mondragon corporations corporate video, 2016. How are managerworker pay differentials determined within the various mondragon enterprises. It was founded in the town of mondragon in 1956 by graduates of a local. Mar 12, 2012 the mondragon corporation is based on a commitment to solidarity and on democratic methods for its organisation and management, says mikel lezamiz, director of mondragons cooperative. Danobat is part of the industrial branch of the mondragon corporation, and is one of the main machine tool. It is the tenthlargest spanish company in terms of asset turnover and the leading business group. In the following 20 years, the cajas holdings experienced a 953% growth, the collective sales of the complex grew by 1200%, and employment grew by 346%. Established in 1954, this constantly expanding group includes over 280 companies employing 80,000 people.
Mondragon cooperative corporation mcc is an entrepreneurial socioeconomic entity with deep cultural roots in the basque country, created by and for the people, inspired by the basic principles of our cooperative experience, committed to the community, to the improvement of competitiveness and to the satisfaction of customers, to create. Mar 14, 2014 the mondragon corporation is a corporation and federation of worker cooperatives based in the basque region of spain. Mondragon corporation is an extraordinary 80,000person grouping of. The experience launched in 1943 by arizmendiarrieta with the foundation of a democratically run poly. Thanks also to praxis board member laurie gallian for support and suggestions and to keith wilson for his assistance and support of the praxis mondragon seminars. Mondragon assembly is an international group specialising in the development of automation and assembly solutions. In an oped for the british newspaper the guardian 1, wolff argues that a successful alternative to capitalism already exists. Cooperative bodies and terminology, mondragon corporation. The mondragon cooperative corporation is a 35 year old experiment in building a comprehensive cooperative society in which labor plays the primary and dominant role. In the late 1990s these units reorganized themselves as the mondragon cooperative corporation mcc that is now among the largest and most successful spanish firms competing in the european union. Jul 31, 20 the mondragon corporation is an inspiration.
Democratic organization all authority is vested in the general assembly, which consists of. Translations, transportation, hotel, and most meals included. Mondragons cooperatives and the legacy of catholic priest jose maria arizmendiarrieta duration. The cooperative also has many of the attributes of a corporation in that its individual cooperatives are increasingly coordinated by a central administration.
Oct 03, 2017 mondragon today consists of 102 individual cooperatives united in a federation called the mondragon cooperative corporation, which is also organized as a cooperative. I was recently made a member of an industrial cooperative. Once known as one of the poorest regions in spain, the basque region is now the richest, prospering due to a strong sense of selfdetermination, grassroots participation and nongovernmental intervention. Taking its name from the small town in the basque country of spain where it was founded, the mccs reach now extends across spain, europe and the globe. The mondragon cooperative experience is open to all men and women who accept these basic principles without any type of discrimination. In 2007, the mondragon networknow the mondragon cooperative corporationhas 85 companies employing,000 people globally. Governance of the mondragon corporacion cooperativa. Jul 27, 2011 in the following 20 years, the cajas holdings experienced a 953% growth, the collective sales of the complex grew by 1200%, and employment grew by 346%. The mondragon cooperative was started in 1954 by a jesuit priest named don jose maria arizmendiarreta i will refer to him as don jose from here on and five young men. Mondragon cooperative complex, of which ulgor was the first of many connected cooperatives, had 21,241 member employees. Cooperatives have been merged into functional product lines. Are workers cooperatives the alternative to capitalism. It is made up of 650 members who are delegated by the cooperatives, and it meets on an annual basis. The mondragon cooperative was started in 1954 by a jesuit priest named don jose.
Yet unlike traditional corporations, the mondragon cooperative corporations 6s ebl ow f radi s cu nth gv m o. Irizar, 2005 through which they aimed to combine their cooperative values with the. Of these 91 are worker cooperatives and 44 are holding companies that are partly or. It is located in the town of elgoibar in the province of gipuzkoa in the basque country spain. Praxis peace institute has established a special relationship with the mondragon cooperatives and is a proud educator of cooperatives and the ethics and values of cooperatives. All workers and the mondragon cooperatives must use this bank. I honestly havent given much thought to coops in terms of v. Business ethics order description issues concerning shareholders and employees are of critical importance to the good functioning of any organization. An innovative cooperative group with a worldwide footprint, made up of different businesses and committed to intercooperation. Simply put, the mondragon cooperative bank risks its capital to grow and develop the job base of the community. The present form was designated by the mondragon congress of coops in 1991. Corporacion mondragon grupo empresarial internacional. The basic principles of the mondragon cooperative experience were approved at our first cooperative congress held in october 1987.
The bakery in michael moores capitalism, a love story is fairly innocuous but since mondragon is the 7th largest corporation in spain and is expanding across the globe using contract labor, id have to describe it as a capitalist firm even though it is obviously different than general motors. Spains giant cooperative where times are hard but few go bust this article is more than 7 years old the northern spanish town is dominated by its eponymous 15bn corporation that. It is often said that a company cannot be both efficient and equitable at the same time. In 1969, eroski was founded by merging ten small local consumer cooperatives. The mondragon model a new pathway for the twentyfirst. Mondragon corporation bermuda economic development. Jul 09, 2012 this summary consists of both direct quotes and our summary of the mondragon text. The mondragon cooperative corporation is a 35 year old experiment in building a. It seems mondragons annual report mon 06 leaves much to be desired when it comes to looking at performance. There are major cooperatives in retail as well as manufacturing.
Cooperatives in spain mondragon leads the way guardian. Apr 30, 2014 mondragon is a cooperative that has 147 companies employing 80,000 workers. Richard wolff on the mondragon cooperatives youtube. The usw and mondragon, the worlds largest workerowned cooperative, announced our collaboration on oct. Posted by catemccrea on july 9, 2012 leave a comment in most forprofit businesses, labor is hired at the service of capital. It holds the savings and retirement funds of the workers and processes all the funds flowing through all the mondragon enterprises.
The mondragon corporation is based on a commitment to solidarity and on democratic methods for its organisation and management, says mikel lezamiz, director of mondragons cooperative. Mondragon corporation is the embodiment of the cooperative movement that began in 1956, the year that witnessed the creation of the first industrial cooperative in mondragon in the province of gipuzkoa. Fordist factories, the assembly line, a rigid mentalmanual division of labor. In 1974 a research centre was born, and progressively the vast empire of what is now the mondragon cooperative corporation developed.
The mondragon corporation is a corporation and federation of worker cooperatives based in. Mondragon today consists of 102 individual cooperatives united in a federation called the mondragon cooperative corporation, which is also organized as a cooperative. Mondragon is the result of the cooperative movement began in 1956, when he created the first industrial cooperative in donostia of this name, its business philosophy is reflected in its corporate values. The cooperatives do not discriminate on the basis of religion, politics, ethnicity, or sex when it comes to becoming a member of the cooperative. In the process of restructuring, some cooperatives were merged with others in the. For seven of these seminars, praxis received generous donations from. Many scholars have studied mondragon as a strong example of an industrial cooperative with a.
Pdf corporate governance and the mondragon cooperatives. Much of the later information is based on reference mon 02. It was established by a catholic priest, jose maria arizmendiarrieta jma, in the basque country in spain. The mondragon corporation is a corporation and federation of worker cooperatives based in the basque region of spain. Institutions and social relations born in the basque region of spain in 1956, mondragon cooperative corporation is a federation of cooperatives whose impressive size and economic success has drawn international attention. Industrial, retail, finances, knowledge, and corporation. The mondragon cooperative corporation, or mcc, is often considered the most successful example of workerowned enterprise in the world. Oct 29, 2016 the largest worker cooperative in the world, mondragon corporation, is based in the basque region of spain, best exemplifies this claim. Also there is bank within the mondragon corporation also owned by workers that gives mortgages with lower rates to the cooperative partners so buying a home is something very normal for a coop partner. Started in the 1950s as a catholic action project, today, the mondragon group includes 257 financial, industrial, retail, and research and development concerns, employing.
The case of the mondragon cooperative corporation article pdf available in annals of public and cooperative economics 744. Dec 06, 2009 i honestly havent given much thought to coops in terms of v. In 1969, eroski was founded by merging ten small local consumer co operatives. The mondragon cooperative corporation has grown from its initial 25 workers in. Jun 29, 2014 you will learn about the history of regional autonomy in spain and of the mondragon cooperatives, visit service and industrial cooperatives, engage the mondragon innovation and knowledge research center, receive presentations on careers at mondragon university including on the new career of leadership and entrepreneurial innovation leinn and team academy, and attend a reception at the. I was recently made a member of an industrial cooperative member of the mondragon cooperative corporation. Basic principles of the mondragon cooperative corporation. It is the tenthlargest spanish company in terms of asset turnover and the leading business group in the basque country. The mondragon cooperative group today the mondragon cooperative corporation mcc is a highly complex federation of cooperatives bound together by much more than a formal contract of association. Mondragon is one of the leading spanish business groups, integrated by autonomous and independent cooperatives with production subsidiaries and corporate offices in 41 countries and sales in more than 150. It was founded in the town of mondragon in 1956 by graduates of a local technical college.
The mondragon cooperative corporation mcc, a system of worker. Drawing from a qualitative case study of the mondragon cooperative group, this. From a shareable article that was published by too much, june 30 2015, titled. In just over four minutes, mondragons new video sums up. The evolution of management in the mondragon cooperatives.
The largest cooperative in the world, they are a federated network of over 250 cooperative businesses who together are the seventh biggest group in spain. A manufacturer of equality, josu ugante, a 27 year employee and 7 year president of mondragon international was interviewed with the following excerpts. The mondragon cooperative corporation united diversity. Taking its name from the small town in the basque country of northern spain where it was founded, the mccs reach now extends across spain, europe and the globe. We are part of the mondragon corporation, the largest cooperative group in the world. The cooperative group has amassed technical, managerial and financial resources comparable to those of a major corporation and used. The mondragon cooperative corporation founded its first enterprise, ulgor in 1956. In the last half of the twentieth century, mondragon has grown and. Eroski is a big box retail store that is owned by its employees and customers and has kept walmart out of spain simply by being a more competitive. In an academic essay format, compare and contrast the mondragon cooperative corporation mcc with a traditional capitalist corporation of your choice and determine how the treatment of these stakeholders impacts on ethical outcomes. The mondragon cooperative corporation mcc is composed of a group of industrial, retail, service, and support cooperatives primarily in the arrasatemondragon valley in the basque country in spain. The bakery in michael moores capitalism, a love story is fairly innocuous but since mondragon is the 7th largest corporation in spain and is expanding across the globe using contract labor, id have to describe it as a capitalist firm even though it is obviously different than general motors et al.
Such management structures concentrate power in the hands of managers, and it seems that policy setting and control of management activities have moved away from owners producers, workers towards an upper level of senior. This summary consists of both direct quotes and our summary of the mondragon text. At the same time, much of the recent literature on mondragon has questioned whether mondragons democracy has degenerated, without drawing definitive conclusions. June 29 to july 5, 2014 tour is june 30 july 4 cost. The mondragon model a new pathway for the twentyfirst century. We believe cooperatives are an excellent example of a sustainable and socially just economic business model for the 21st century. The corporations mission combines the core goals of a. Governance of the mondragon corporacion cooperativa article in annals of public and cooperative economics 751. The parent company in spain was created in 1977, one of the pioneers in the development of production and assembly technologies.
Mondragon divides the cooperative firms and secondary cooperatives into five categories. Thanks to sarah ford for editing assistance, proof reading, and helpful suggestions. Enterprise, a new university initiative affiliated with the mondragon cooperative corporation. Danobat is a cooperative company that provides solutions for machine tools, and is mainly aimed at the manufacture of grinding machines, lathes and band saws. Mondragon corporation mc is the most successful business group in the basque country, and the seventh largest in spain. In the last half of the twentieth century, mondragon has grown and developed a unique worker democracy in. Corporate governance and the mondragon cooperatives article pdf available in management research 42. Don jose was a fascinating man whose background shows courage and a willingness to stand up for his beliefs. Following the global financial crisis in 2008, the mondragon cooperative corporation was used as an example of an alternative to capitalist development. Mondragon is a cooperative that has 147 companies employing 80,000 workers. The first mondragon cooperatives date from the mid1950s, and the overall effort has. Discover innovative thinking, an innovation model based on cooperation and knowledge sharing among professionals with different. They employ over 80,000 people, have their own banks, universities, research laboratories and social security systems.