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- From: dreitman@oregon.uoregon.edu (Daniel R. Reitman, Attorney to Be)
- Newsgroups: bit.listserv.politics
- Subject: Mondragon update
- Date: 30 Dec 1992 12:58 PST
- Organization: University of Oregon
- Lines: 32
- Distribution: world
- Message-ID: <30DEC199212583090@oregon.uoregon.edu>
- NNTP-Posting-Host: oregon.uoregon.edu
- Keywords: Mondragon, cooperative, wages
- News-Software: VAX/VMS VNEWS 1.41
-
- Several weeks ago I wrote a brief note on the Mondragon Cooperative Group in
- the Basque region of Spain. An update on the status of the Mondrago experience
- is now available.
-
- Mondragon Cooperative Corporation, as it has recently been renamed, has 170
- cooperatives, 90 industrial and 80 other. 21,000 area residents are
- worker-owners; 40% of the city labor force is employed in cooperatives.
- Deposits at Caja Laboral Popular, the cooperative bank, exceed $3 billion and
- Lagun-Aro, the cooperative social security fund, over $1 billion. 1990
- industrial sales exceeded $2.6 billion. Mondragon's R&D center, Ikerlan, has
- been invited to join the European R&D consortium.
-
- The successes of the Mondragon system have been attributed to a series of
- factors: Basque nationalism, the intellectual guidance of Don Jose Maria
- Arizmendiarrieta (d. 1976), and pro-cooperative Spanish laws, including a
- higher interest rate at Caja Laboral Popular, a limit on non-member employment
- to 20%, an anti-speculative provision on distribution of liquidation profits,
- and a reduction in income tax.
-
- In response to the upcoming change in economic conditions under Common Market,
- Mondragon is reorganizing. The system is being centralized, with cooperatives
- to be combined along industrial sector lines, a major increase in the
- top-to-bottom salary ratio (traditionally 3 to 1), and investments in
- non-cooperative firms. The Mondragon leadership is not happy about the
- changes, but consider them a response to a dramatic restructuring of markets.
- Jesus Larranga, a founder of the original cooperative, ULGOR, considers the
- upcoming years a test of social and community based economic structures.
-
- See David Morris, "Mondragon: Cooperative at Work", Co-op America Quarterly,
- Winter 1992, at 6.
-
- Dan, ad nauseum
-