Mondragon Corporation

[Enishi]

I figured I would post this here since this section hasn't seen much action lately.

Mondragon a possible way out

For the last 30 years we on the left have had our rear-ends handed to us by the disciples of a B movie actor (Reagan revolution). In 1965 unionized workers were 40-46% of the private sector work force. Today unions represent only 7% of the private workers and 36% of public employees.

We lose most of the time because we (workers) are only guests in someone else's game. How can one collectively bargain when the human beings on the other side reduce one of your most valuable assets (your labor) to the level of the cost on a balance sheet? If democracy provides a desirable model for society in general, why is it not practiced more in the free-market?

Cooperatives like the Mondragon Corporation in Spain may serve as a basic model in creating a more democratic free market.

The MONDRAGON Corporation is a federation of worker cooperatives based in the Basque region of Spain. Founded in the town of Mondragon in 1956, its origin is linked to the activity of a modest technical college and a small workshop producing Paraffin heaters. Currently it is the seventh largest Spanish company in terms of turnover and the leading business group in the Basque country. At the end of 2009 it was providing employment for 85,066 people working in 256 companies in four areas of activity: Finance, Industry, Retail and Knowledge. The MONDRAGON Co-operatives operate in accordance with a business model based on People and the Sovereignty of Labor, which has made it possible to develop highly participative companies rooted in solidarity, with a strong social dimension but without neglecting business excellence. The Co-operatives are owned by their worker-members and power is based on the principle of one person, one vote.

This model should appeal to the libertarians who have invested their faith in the free-market. Cooperatives should operate in the market (externally) just as if they were any normal corporation. The major difference being ownership shifts from investors on Wall Street to worker-owners. Basically, what Mondragon Corporation represents is a democratic model for corporations. The top pay for any person is no more than 10 times the pay of the lowest paid worker. This was put to a vote and democratically arrived at by the workers.

Yes, I understand that we are bombarded with images and platitudes reaffirming the myth of the rugged individual. Isolation makes it so much easier for us to be picked off one by one. I value my privacy: joining a commune or living on a kibbutz is not my cup of tea. One can participate with the group without becoming a member of the herd. That being said, I appeal to you so-called free-marketers out there to be part of the evolution and democratization of Capitalism.

[Shaun]

Think I read about this a few years ago and forgot . I really like the idea. I think there are a few cooperatives here in the states, though I doubt any are as large as Mondragon. Would be sweet to see them become more common.

Edited November 6, 2011 by Shaun