The Cooperative Experience

[Askatasun_haizea]

I live in a region where the cooperative model has been implemented. The Mondragón Cooperative Corporation has become one of the world's largest worker cooperatives and an example of workers' self-management.

Since its creation after the Spanish civil war, it has become the Basque Country’s largest corporation that constitutes 150 companies (including a bank and an insurance company) with 100.000 employees (company owners) and a University with 4000 students.

The MCC views capital as only a means to an end, the goal is for a happy and productive work environment and capital is a tool needed to achieve that. Ten percent of the annual net profits are donated to charity, 40 percent is retained to the common good of the cooperative (research, development, job creation, etc) and the rest goes to the capital accounts of each worker.

Management is elected by the workers; each enterprise has a social committee that considers issues of health, safety, environment, and the social responsibilities of the enterprise. Capital is borrowed; stock is not sold for financing. All new employees become worker owners of the company.

Basic Principles (if you are interested I can expand on each of these principles).

1.OPEN ADMISSION

2.DEMOCRATIC ORGANIZATION

3.SOVEREIGNTY OF LABOR

4.INSTRUMENTAL AND SUBORDINATE NATURE OF CAPITAL

5.PARTICIPATORY MANAGEMENT

6.PAYMENT SOLIDARITY

7.INTERCOOPERATION

8.SOCIAL TRANSFORMATION

9.UNIVERSALITY

10.EDUCATION


What’s your opinion on this kind of model? Could it be a viable alternative to Pure Capitalism?

[Lightweaver]

That sounds like a good idea. How has it been working out?

I'm wondering what "payment solidarity" refers to. I believe that one who works harder and does more should be paid more than someone lazy who does as little as they can get away with. I'm sure we've all encountered both types in the workplace.

[Askatasun_haizea]

The Cooperative was formed in 1956.

Payment solidarity refers to the fact that the payment received by the least qualified worker-member and the top executive of the cooperative is 1 to 3. (Although this has slightly changed and the differences now are a bit bigger).

Moreover, it is also an attempt to ensure that the payment received by the members is equivalent to that received by salaried workers in the same sector and geographical area.

[Lightweaver]

Thanks for explaining that, Askatasun. :)

I like idea of executive pay being limited like that. I sure wish more companies would do this. I remember reading years ago that one of the more progressive companies, possibly Ben and Jerry's although I forget exactly which one, capped executive pay as no higher than four times what the lowest-paid worker received. I thought it was a great idea since all employees could do well when times were good and an executive couldn't get a raise without others also receiving one.

It is unconscionable that some executives receive millions per year as salary with other millions in stock options and bonuses piled on top of that even as workers are being laid off when the company doesn't do well. Linking executive pay to the workers' pay as this cooperative has done would be far more equitable than the way most companies act in the US now. :)

The Cooperative was formed in 1956.

Payment solidarity refers to the fact that the payment received by the least qualified worker-member and the top executive of the cooperative is 1 to 3. (Although this has slightly changed and the differences now are a bit bigger).

Moreover, it is also an attempt to ensure that the payment received by the members is equivalent to that received by salaried workers in the same sector and geographical area.