Co-Ops: The Future of Capitalism
We’ve heard a lot recently about Spain’s economic woes, so it would seem an unlikely place to spot the future of businesses. A future where workers are in charge & where CEOs are paid a more moderate wage. A system that looks after everyone fairly. A socialist spin on capitalism. And the proof of concept is already massive in Spain. As soon as I read the Spain’s 10th largest corporation (in terms of sales or employees) was a co-op, I was ready to be convinced…
- Mondragon Corporation has 85,000 members
- Founded in the town of Mondragón in 1956, its origin is linked to the activity of a modest technical college and a small workshop producing paraffin heaters.
- 80-85% of the workers collectively own and direct each enterprise run by MC
- Workers choose and employ a managing director and retain the power to make all the basic decisions of the enterprise (what, how and where to produce and what to do with the profits
- MC worker-members collectively choose, hire and fire the directors, whereas in capitalist enterprises the reverse occurs
- MC limits top-paid worker/members to earning 6.5 times the lowest-paid workers
- Total student enrollment in all its educational centers in 2010 was 9,282
- Largest corporation in the Basque region
- Has its own bank, Caja Laboral, with $25bn in deposits
- MC has expanded internationally, now operating over 77 businesses outside Spain
No wonder the region had a separatist movement!
Full story at The Guardian.
Note that in the UK, the third largest privately owned business is also a co-op: John Lewis Partnership. They are primarily the John Lewis and Waitrose businesses, and they have 81,000 employee members.
It looks like all that we need is for large co-ops like John Lewis to be brave and expand into new territories. But at the same time, we need to be careful that eventually there are multitudes of co-ops rather than a few super co-ops that wield too much power!