Mondragón Worker-Cooperatives Decide How to Ride Out a Downturn

If the economy is any indication, it should have prompted us to rethink the economy as it is currently. From its stubbornness to recover from a slump to the increasing polarization of wealth distribution between the rich and the poor (source: Key Household Income Trends, 2010), it should have provided good motivations to look at alternative economical models to the usual top-down management.

In comes the Mondragón Cooperative Corporation (MCC). It is a consortium of worker-owned companies that is worker-centric. The business is driven by egalitarianism: workers are each given equal voting powers on issues; all workers are subjected to distribution of profit and loss because success is a result of collective efforts.

MCC’s innovation in doing business ensured that workers were safe unemployment during the global economical downturn, furthermore generating revenue of $24 billion in 2007. Their success should give even the toughest of sceptics enough reasons to take a long hard look at MCC’s business model.

“Mondragón is proof that a commitment to the common good is not an obstacle to commercial success. Instead, a dedication to innovation and training at all levels can bring forward the best of the community. That quality of life continues outside the workplace, multiplying the benefits for those who choose a cooperative path.”

Now we can all discuss the possibility of social equality without the tough sell of forgoing commercial success. 

Further reading: The Old Economy's Not Coming Back. So What's Next?