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Mondragon (Spain)

 

Short Description:

Mondragon is a dynamic cooperative business group located in the Basque region of Spain made up of 218 organizations, which focuses on industry, finance and distribution. It also employs co-operative principles to education and progressive social development.

 

Related Groups and Practices:

Par Econ

Co-Operatives

 

Contact Information:

Corporate Centre:
Pē Jose MĒ Arizmendiarrieta nē 5
20500 Mondragón - Guipuzkoa
Tel: 34 943 779 300
Fax 34 943 796 632
Web-site (English): http://www.mondragon.mcc.es/ing/index.asp

 

Locus of Activity:

Mondragon, and its affiliated co-operatives, operate primarily in the Basque region of Spain. However, it engages in international trade with other co-operatives, making it global in scope.

 

Time of Activity:

The Mondragon co-operatives began in 1956 and have proven to be a sustainable system of economic and social organization (see History).

 

History:

For an extensive history of the Mondragon Co-operative, see “The History of an Experience” (Pdf File)

 

Self Description:

MONDRAGÓN CORPORACIÓN COOPERATIVA, MCC, is a business group made of 218 companies and entities organised in three sectorial groups: Financial, Industrial and Distribution, together with the Research and Training areas.


Mondragón Corporación Cooperativa is the fruit of the sound vision of a young priest, Don José María Arizmendiarrieta, as well as the solidarity and efforts of all our worker-members. Together we have been able to transform a humble factory, which in 1956 manufactured oil stoves and paraffin heaters, into the leading industrial group in the Basque Country and 7th in the ranking in Spain, with sales of 9.655 million euros in its Industrial and Distribution activities, 9.247 million euros of administered assets in its Financial activity and a total workforce of 68.260 at the end of 2003.


MCC’s mission combines the basic objectives of a business organisation competing in international markets with the use of democratic methods in its organisation, job creation, promotion of its workers in human and professional terms and commitment to the development of its social environment.

Chairman of the General Council, Jesús Catania
(From http://www.mondragon.mcc.es/ing/quienessomos/presidente.html)

 

Modes of Social Change Advocated:

Though the Mondragon co-operatives operate to some extent like corporations (in that they are interested in generating profit), they are still motivated by progressive social change such as workplace and economic democracy, as well as sharing the common objectives of the international co-operative movements: “Peace, Justice and Development” (see the History section for more detail). Overall, Mondragon has proven to be extremely successful in sustaining itself economically and socially by adhering to particular tenets: 1) Open Membership, 2) Democratic Organization, 3) Worker Sovereignty, 4) Instrumental or Subordinate nature of capital, 5) Participation in Management, 6) Wage Solidarity, 7) Co-operation between co-operatives, 8) Social Transformation, 9) Universal Nature, and 10) Education.
Succinctly, Mondragon uses it’s productive and wealth generating capacity to directly reinvest profits in not only working members, but also the communities in which its co-operatives are located.

 

Academic Studies:

Meek, Christopher B. and Woodworth, Warner P. (1990) ‘Technical Training and Enterprise: Mondragon’s Educational System and its Implications for other Co-operatives’ in Economic and Industrial Democracy Vol. 11:4, 505-528.