As a result, the wage compression creates greater internal productivity as workers receive a higher share of profits, thereby offering employees greater motivation in their work. 6 known for his love of the Basque language and culture. MONDRAGON Corporation is the embodiment of the co-operative movement that began in 1956, the year that witnessed the creation of the first industrial cooperative in Mondragón in the province of Gipuzkoa; its business philosophy is contained in its Corporate Values: Cooperation. Of these 91 are worker cooperatives and 44 are holding companies that are partly or Tremlett, Giles. One wonders what lessons for productivity, workplace wellbeing and industrial harmony might Australia learn from the Mondragon model of business. Faced in the aftermath of the global financial crisis with circumstances — where unemployment nationally is in excess of 25% and 53% among young people — Mondragon has demonstrated impressive resilience in helping keep jobless levels in the Basque region to under half the national average. 4th ed. Social Responsibility. Copyright © 2010–2020, The Conversation US, Inc. Jobs of Our Own: Building a Stakeholder Society, unemployment nationally is in excess of 25%, http://www.eventbrite.com.au/event/4470958758/. Mondragon on the other hand has realized the importance of technology in the modern economy. Corporación MONDRAGON - Grupo Empresarial Internacional. And supplementary capital can be accessed from centrally held inter-co-operative solidarity funds. To ensure that this demise is avoided, the US firms should strive to follow Mondragon and its associated ideology. It’s the way of life. Essentially, the workers of Mondragon own their labor as well as the products of their labor. Wolff, Richard. Fagor, Spain’s largest manufacturer of domestic appliances (and also part of the Mondragon cooperative), has successfully managed down production by 30 to 40% in the face of a precipitous contraction of the consumer durables market. Mondragon is a highly successful cooperative model with over 60 years of proven success. Overall, Mondragon presents a unique model of collective ownership and democratic capitalism in an age awash with the opposite. He is a former federal MP and state MP and Minister. Since its founding in 1956 by Father Jose Maria Arizmendiarrieta, Mondragon has become the world’s largest and most advanced cooperative economy. Specifically, unlike most traditional US firms, Mondragon does not seek profit maximization at the expense of employee welfare (Tremlett, 2013). Currently, the MCC is comprised of 135 firms. https://www.theguardian.com/world/2013/mar/07/mondragon-spains-giant-cooperative. In the past, Cleveland was a flourishing industrial city. The essentials of the Mondragon story are simple. https://www.theguardian.com/commentisfree/2012/jun/24/alternative-capitalism-mondragon. Details and registration for Monday’s free public lecture and Q&A dinner with Mondragon spokesman, Mikel Lezamiz, are at http://www.eventbrite.com.au/event/4470958758/. At the time of my first visit in 1985, their R&D priorities were already industrial robotics, computer assisted design and control systems, artificial intelligence and sustainable energy sources. Mondragon today consists of 102 individual cooperatives united in a federation called the Mondragon Cooperative Corporation, which is also organized as a cooperative. The Mondragon Cooperative Corporation is a business-based, socioeconomic program that is committed to serving the interests of the environment, individual competitive improvement, and customer satisfaction (Tremlett, 2013). His Therefore, by structuring the cooperative in this way, higher productivity and healthier work environments can be achieved. 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. With such an imperative enforced on extracting surplus value and profit squeezing, the goal of maximizing revenue has occurred at the expense of household and, more specifically, employee welfare. In the last half of the twentieth century, Mondragon has grown and developed a unique worker democracy in Values. In analyzing workplaces and companies in the US, it is important for scholars to reconsider how jobs can better serve the interests and well-being of employees. Mondragon uses this organizational approach to augment the involvement of workers in Mondragon’s initiatives as well as their participation in the management of the company. Remuneration within the cooperatives is egalitarian, with the highest rates payable other than in exceptional circumstances being no greater than six and a half times the lowest. What arose in 1956 as a handful of workers in a disused factory, using hand tools and sheet metal to make oil-fired heating and cooking stoves is today a massive conglomerate of some 260 manufacturing, retail, financial, agricultural, civil engineering and support co-operatives and associated entities, with jobs for 83,800 workers, and annual sales in excess of $US20 billion. For example, capital for expanding existing businesses and establishing new ones is drawn in part from the group’s bank and social insurance funds and workers are skilled to high levels at a university of technology, which is itself structured as a co-operative and attracts students in disciplines such as engineering and metallurgy throughout Spain. David Ellerman, "The Mondragon Cooperative Movement," Harvard Business School Case Study (1982) 8. Another significant aspect of Mondragon is the cooperatives’ mission in helping individuals accomplish personal development as well as foster collective achievement. (May 2007). Libertarian Labor Review. The current chairman, Jose Maria Aldecoa says, “the co-operative model is absolutely flawed, but it has shown itself the least flawed in a crisis of values and models”. Some things speak for themselves: "Mondragon Corporacion Cooperativa or the Mondragon Co-operative Corporation (MCC) is a business-based socioeconomic initiative with deep roots in the Basque Country, created for and by people and inspired by the Basic Principles of our Co-operative Experience. 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). Mondragon’s core values also entail the promotion of healthier relationships between workers and management. Also, although Mondragon is efficient at maintaining low internal layoff rates, due to the fact that income is evenly distributed, it is easier for Mondragon employees to achieve subsistence, but very hard for them to thrive. Through this analysis we can see that the efficiency of capitalism is derived from the exploitation of labor and fierce competition with other firms. At Mondragon, cooperative education is framed as teaching people group process, for example, teaching members how to make decisions together. The collapse in 2013 of Fagor, Spain’s leading electrical appliances manufacturer, was a powerful symbol of the country’s economic woes, and saw 1,895 members of the Basque Country cooperative lose their jobs.For six decades, Fagor, based in the town of Mondragón, … The Mondragon experiment seems to prove that a corporation can be globally competitive without abandoning cooperative ideals and principles of worker participation. Consequently, workers can be less motivated, or even alienated, by their occupations. The structure of Mondragon University provides … The Mondragon System: Cooperation at Work David Morris May 1992 ... model 2will be tested." At the same time, much of the recent literature on Mondragon has questioned whether Mondragon’s democracy has degenerated, without drawing definitive conclusions. The Guardian. For the first time since its inception in 1959, Mondragon’s Eroski worker/consumer cooperative — until now Spain’s largest and fastest growing chain of supermarkets, hypermarkets and shopping malls — experienced losses consequent on reduced consumer demand, and only in the current financial year anticipates a return to profitability. Historically, profit-driven motives have been complementary to longer workdays and, more specifically, lofty output and revenue goals. Participation. 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). Although this has been believed to help boost output and enhance the overall economic welfare of companies, such practices have harmed overall household wellness, as longer working days essentially indicate less leisure time enjoyed (Wolff, 2012). 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