That said, for the public part, the Mondragon system faces the same basic funding issues of defined benefit programs worldwide: uncertainty about where the money will come from in a volatile economy where current workers paying into the system are not keeping pace with the extended lifespans of retirees. Mondragon cooperatives. Faculty of Engineering 2. The Mondragon Corporation has over 266 business and cooperatives, in 32 countries. Few, if any, of these new workers have been offered membership in the cooperatives. As the documentary trailer says, Mondragon is a Federation of 120 worker cooperatives, which collectively have 100,000 employees and produce $25 billion in sales. … In Mondragon, all cooperatives must allocate a minimum of 10% of their net profits to the co-op’s social fund used for community investments. One can imagine a sophisticated, cooperatively organized, service-based economy that would also require significant technical expertise. Second, as the environmental crisis worsens, it will create many new business opportunities for companies with the technical skills to address them. [5] Es ist damit nach eigene… First, in global terms, this is a relatively small niche market, less likely to attract a large number of competitors. While I had imagined a “local living economy,” somewhat focused on bartering in line with E.F. Schumacher’s Small is Beautiful philosophy, that is not how Mondragon functions. This is an issue that I think Mondragon has figured out really well, striking an important balance between the need for democratic decision-making and managerial discretion. Documentary Trailer—A New Economy from Domain7 Studios on Vimeo. At one point our guide reminded us that Father Arizmendiarrieta was not interested in creating a cooperative economy. And in times of trouble, the General Assembly is a place for the entire cooperative to thrash out difficult issues. The fundamental issues that are well addressed by cooperativism — a reduction in economic inequality and a better alignment of the interests of workers, owners and managers — are critical. On this issue, there is good news on three fronts. It has over €35 billion in assets, €14 billion in revenues and has over 80,000 employees. The surprise was in the scale of the experiment. Third, the sustainability orientation of Mondragon is potentially further along than I could observe on the ground. Even as “sustainability” issues have found a place in most global firms, I did not see much traction in Mondragon in either practice or articulated values. This has necessitated hiring new workers in those new markets. How cooperatives show resilience to the crisis can be watched in English, French, Spanish, Italian, Polish, Japanese, Greek, Turkish, Bulgarian and Korean here! That said, its members elect the Governing Council, which in turn selects the Managing Director. Jill Bamburg is a Co-Founder of the Bainbridge Graduate Institute and on the Faculty of Presidio Graduate School in San Francisco. STEM education is the right approach, but we are far from figuring out how to deliver it effectively. The Mondragon cooperatives talk about social transformation, a more far-reaching, future-oriented goal that seeks the creation of social and economic systems that reinforce the best in human nature. Also at work, however, was the notion of the “tyranny of the majority.” In winner-take-all voting decisions, the will of the majority is imposed on all, including the dissenting minority. Michael Peck also offered specific examples of women in leadership positions, as the General Secretary for Mondragon’s Governing Council, the Mondragon Corporation’s CFO, and the CEO positions in several of the individual cooperatives. Although it may not be the perfect utopia many envision, there is room for growth and change. MONDRAGON is the outcome of a cooperative business project launched in 1956. Faculty of Humanities … … When asked about specific issues at Mondragon that were troubling to me, our guide would sometimes shrug and say, “This is a democracy.” To me, that shrug said it all: sometimes people make thoughtful decisions, sometimes not; sometimes they take the time to participate in decision-making, sometimes not. the Social Council). In total, they receive 80 percent of their former salary, enabling them to retire without having to make major shifts in their lifestyle. Spain offers universal health care to its citizens and Mondragon offers its own universal coverage system. The cause of the failure was a “perfect storm” of three related issues. In the United States, a social justice culture focused more on creating our own alternatives, as opposed to fighting old paradigms needs further nurturance. Spanischen Baskenland und ist global tätig question that brought this truth home need.... 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