40+ years a co-operator 1972 joined Cardiff Peoples Paper, a - - PowerPoint PPT Presentation

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40 years a co operator
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40+ years a co-operator 1972 joined Cardiff Peoples Paper, a - - PowerPoint PPT Presentation

Nov 06, 2023 101 likes •487 views

40+ years a co-operator 1972 joined Cardiff Peoples Paper, a radical tenant led local paper. Eventually became second longest surviving in UK 1974 founded Fingerprints in shop premises bought from Council. Finance from CLAP and

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SLIDE 1

40+ years a co-operator

  • 1972 – joined Cardiff People’s Paper, a radical tenant

led local paper. Eventually became second longest surviving in UK

  • 1974 – founded Fingerprints in shop premises bought

from Council. Finance from CLAP and Cardiff Women’s Action

  • 1976 – joined newly formed CDA – elected as Vice

Chair

  • 1981 – Fingerprints moved to larger premises.
  • 1982 - Founded Cardiff Peace Shop in the old
  • shopfront. Sold peace themed Xmas cards through

Guardian small ads – over 150,000 each year

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SLIDE 2

40+ years a co-operator

  • 1991 - Fingerprints became Wales’ longest surviving

co-op

  • 1995 – we decided to move on and sold to another

co-op formed by NGA colleagues

  • 1995 – I went to work for Cardiff Council.
  • 1998 - Merger with another co-op formed in Council

workshop I ran. Sadly now converted to company

  • 1999 – Joined Cardiff YMCA Housing Association
  • 2011 – Founded another worker coop -

consultancy.coop

  • 2013 – YMCA HA converted to mutual status
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SLIDE 3

MONDRAGON

HUMANITY AT WORK

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SLIDE 4

Our visit to Mondragon

  • 6 delegates on visit
  • 3 days intensive visits
  • OTALORA – central management centre
  • FAGOR ELECTRODOMESTICOS
  • EROSKI supermarket
  • GSR (Co-operative Residencies for elderly people)
  • MONDRAGON UNIVERSITY (Faculty of Business)
  • SAIOLAN - Company Incubation Centre
  • IKERLAN - Technological Research Centre
  • CAJA LABORAL (credit co-operative)
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SLIDE 5

Our visit to Mondragon

With our host, Mikel Lezamiz (centre)

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SLIDE 6

Footsteps

  • We were conscious of following in the footsteps of

a previous Wales TUC visit at the end of 1980 :-

– George Wright, Wales TUC General Secretary – Les Paul, Wales TUC Vice Chair – Viv Balmont, TASS – Gwyn Jenkins, Aberystwyth Engineering Co-op – Jim Ryan, West Glamorgan Trades Council – Joyce Schutt, Bargoed Blouse Co-op – Barry Scragg, UCATT – Robin Reeves, Financial Times

  • That visit led to the creation of the Wales Co-
  • perative Centre in 1982 with the support of the

Wales TUC. We want this visit to have a similar impact if we can

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SLIDE 7

Eroski

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SLIDE 8

Eroski

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SLIDE 9

Ikerlan

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SLIDE 10

GSR Care Home

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SLIDE 11

Mondragon University

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SLIDE 12

Mondragon University - Business School

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SLIDE 13

Otalora

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SLIDE 14

Don Jose Maria Arizmendiarrieta

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SLIDE 15

Don Jose Maria Arizmendiarrieta

  • The instigator of Mondragon, Don Jose Maria

Arizmendiarrieta was born in 1915 in Barinaga about 25 miles away, and joined a catholic seminary at age 13.

  • Like many Basque priests, he served on the Republican

side during the Civil War. He had lost an eye as a boy so could not join up, but served as a war reporter for a Basque language paper. Arrested by the fascists, he was one of the lucky ones – sentenced to death then

  • released. In 1941, having completed his training he was

sent to Mondragon as a curate, to replace the local priest shot by the Franco’s forces.

  • He took on the role of religious instructor in the local

technical school which was funded by the Unión Cerrajera company

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SLIDE 16
  • In 1943 he founded his own independent, community owned

technical school funded by public donations.

  • In 1955, he selected five students (Luis Usatorre, Jesús Larrañaga,

Alfonso Gorroñogoitia, José María Ormaechea and Javier Ortubay.) who were working at the Unión Cerrajera company to take over a local factory making paraffin stoves under licence.

  • They raised £60,000 in loans

from100 local people to buy the factory

  • The name ULGOR was made up

from the initial letters of the surnames of its five founders: Luis Usatorre, Jesús Larrañaga, Alfonso Gorroñogoitia, José María Ormaechea and Javier Ortubay.

  • ULGOR is now known as Fagor Electrodomesticos – Spain’s

largest manufacture of white goods

Don Jose Maria Arizmendiarrieta

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SLIDE 17

History of the Mondragon Co-operative Corporation (MCC)

ULGOR FOUNDERS 1956 ULGOR 1956

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SLIDE 18

Javier Ortubay today

History of the Mondragon Co-operative Corporation (MCC)

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SLIDE 19

History of the Mondragon Co-operative Corporation (MCC)

1941 - DON JOSÉ Mª ARIZMENDIARRIETA arrives in Mondragón 1943 - DON JOSÉ Mª sets up the Polytechnic School 1956 - THE FIRST CO-OP IS CREATED: ULGOR (FAGOR) 1959 - CAJA LABORAL (Bank + Entrepreneurial Division) 1959 - LAGUN ARO (Own Social Welfare System) 1964 - FIRST CO-OPERATIVE GROUP (ULARCO-FAGOR) 1966 - ALECOP (Students working in a worker co-op) 1974 - IKERLAN (Research Centre)

  • Design and Production Technologies
  • Information Technologies
  • Energy

1987 - 1st CONGRESS of Co-ops: Creation of Mondragon Co-operative Group (GCM) 1991 – 3rd CONGRESS: of Co-ops: Creation of Mondragon Co-operative Corporation (MCC)

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SLIDE 20
  • l4th April 1956 - many inhabitants of Mondragón

were discreetly celebrating the 25th anniversary

  • f the Second Republic when Father

Arizmendiarrieta was celebrating the start of ULGOR

  • Nov 20th 1975 - the inhabitant’s celebrated more
  • penly this time on the passing of the

Generalissimo Francisco Franco y Bahamonde

History of the Mondragon Co-operative Corporation (MCC)

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SLIDE 21

ULGOR 1961 CAJA LABORAL 1959 ASSEMBLY 1963

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SLIDE 22

CO-OPERATIVES WITHIN MONDRAGON

  • INDUSTRIAL

87

  • CREDIT

1

  • CONSUMER

1

  • AGRICULTURAL

4

  • EDUCATION

8

  • RESEARCH

12

  • SERVICES

7

  • TOTAL

120 co-operatives

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SLIDE 23

MEMBERSHIP RULES TO ENTER MCC

  • Relocation of staff among co-operatives
  • Profit sharing

– Within the sectorial groups (15% - 40%) – Within corporate funds in MONDRAGON (Investment 10%, Education 2%, Solidarity 2%)

  • Solidarity in profit distribution

– 10% Education Fund (Law 10%) – 45% Fund or Reserve of Co-op (Law 20%) – 45% Returns to workers à Capitalise à Interest 7.5%

  • Initial capital (€14,000 in 2009)
  • Solidarity in compensation (6:1)
  • Reporting of data to MCC
  • Not internal competition between co-ops within MCC
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SLIDE 24

MCC’s BASIC CO-OPERATIVE PRINCIPLES

  • 1. Open Admission
  • 2. Democratic Organization
  • 3. Sovereignty of Labour
  • 4. Instrumental and Subordinate Nature of

Capital

  • 5. Participatory Management
  • 6. Wage Solidarity
  • 7. INTERCO-OPERATION
  • 8. Social Transformation
  • 9. Universality
  • 10. Education
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SLIDE 25

MONDRAGON Structure

CONGRESS Permanent Council

Training and Research Centres FINANCIAL GROUP RETAIL CHAIN GROUP

INDUSTRIAL GROUP

Automotive Components Construction Industrial Equipment Domestic Appliances Engineering and Capital Goods Machine-Tools

GENERAL COUNCIL

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SLIDE 26

Basic Structure within a Co-operative

MANAGEMENT COUNCIL

DEPARTMENT MANAGER A DEPARTMENT MANAGER B DEPARTMENT MANAGER C DEPARTMENT MANAGER D DEPARTMENT MANAGER E

ACCOUNTING AUDITORS

WATCHDOG COMMITEE

GENERAL ASSEMBLY

GOVERNING COUNCIL

GENERAL MANAGER

SOCIAL COUNCIL

ADVISING BOARD

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SLIDE 27

Mondragon business development

  • Education and Training

– Technical school established 1943 ~ now Mondragon University

  • Inter co-op support – financial and

labour – organised via MCC

  • 10% of profits to MCC central fund
  • Financial contribution from workers

€3,000 to €14,000

  • Plan for 100% workers ownership
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SLIDE 28

Business development

  • Emphasis on product or service
  • €140 million on R&D each year

– IKERLAN established 1974

  • Business incubation support

– SAIOLAN established 1985

  • Caja Laboral
  • Funding from MCC and others for new

ventures

  • Split ownership at launch
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SLIDE 29

Mondragon business development

  • Income equality – no milking of

profits

– Most co-ops work on 6:1 ratio – Exceptions up to 8:1 – FTSE100 = 262:1

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SLIDE 30

Mondragon business development

  • Works with conventional

businesses

– Gaztempresa established 2,600 local businesses since 1994 – Partnerships with Toyota, General Motors, Microsoft, worldwide – Owns enterprises worldwide ~ Brandt, Thomson

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SLIDE 31

Mondragon worldwide

Production Plants (75) Offices (9)

Alemania (2)

  • Rep. Checa (4)

Tailandia (1) Iran India Marruecos(2) Francia (4) Brasil (5) Brasil Mexico (4) Mexico Polonia (1) China China (6) U.S.A. U.K.(3) India(2) Italia (2) Rumania (1) Rusia Turquía (1)

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SLIDE 32

Worldwide model

  • Wholly owned subsidiary
  • Information transparency
  • Same management style as in co-
  • ps
  • 30% of shares belong to workers
  • 5% of profits dedicated to local

development

  • Developing a methodology for

integration into MCC

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SLIDE 33

MCC Results

2003 2004 2005 2006 2007 2009 2010 2011 SALES €9,638M €10,406M €11,859M €13,390 M €16,300 M €14,780 M €17,80 0M €14,832 M ASSETS €16,309 M €18,593 M €22,977 M €27,550 M €32,840 M €33,499 M €33,090 M €32,450 M PERSONNEL 68,625 70,884 78,455 83,601 103,731 85,066 83,859 83,569 NET PROFITS €411M €502M €545M €677 M €792 M €61 M €178 M €125 M

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SLIDE 34

MONDRAGON’s STRATEGY

  • 1. People are the mainstay of the enterprise
  • 2. We are all owners and protagonists
  • 3. One person, one vote
  • 4. The involvement of everyone in Management,

Ownership and Results

  • 5. Self-management
  • 6. Decentralised organisation
  • 7. Real inter-cooperation in funds and people
  • 8. Reinvestment of surplus
  • 9. Social responsibility
  • 10. Innovation: Technical/Technological, Organisational,

Financial, Social

  • 11. Balance between job creation and financial profitability
  • 12. Internationalization
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SLIDE 35

Secrets of success

  • Capturing their own money – the initial loans
  • Repatriating their own money – the bank – Caja

Laboral

  • Substantial investment by every new member
  • Wage solidarity – senior wages based on lowest paid
  • R&D led business development - Saiolan
  • Product prototyping and incubation – Ikerlan
  • Development finance & support from MCC
  • The tithe – 10% of all profits to MCC
  • Solidarity between co-ops – finance and labour swops
  • Maintaining and developing the co-operative ethos –

MCC management school - Otalora

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SLIDE 36

Can we have one here?

We would need:-

  • Social solidarity – still strong in many places in the UK
  • A substantial bank that puts co-ops first
  • Cash - no shortage if we repatriate it to our movement
  • Worker involvement and wage solidarity
  • To be product/service led
  • To do Principal 6 properly
  • To share profits within the movement
  • The will and the courage to take the risk
  • We don’t necessarily need Govt. support – Mondragon

didn’t get any at all until after Nov 20th 1975 – but it would help!

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SLIDE 37

MONDRAGON

HUMANITY AT WORK

Alex Bird

alex@consultancy.coop With special thanks to MIKEL LEZAMIZ mlezamz@mcc.es www.mondragoncorporation.com Leading the Dragon http://www.iwa.org.uk/en/publications/view/216