Showing posts with label Workers Cooperatives. Show all posts
Showing posts with label Workers Cooperatives. Show all posts

13 May 2013

BOOKS / Bill Fletcher Jr. : Gar Alperovitz and Visions of a New World


What Then Must We Do?:
Political economist Gar Alperovitz
and visions of a new world
The struggle for structural reforms is essential to changing the 'common sense' of the U.S. political arena. But it is not enough to wound the rabid beast; one must ultimately bring it down.
By Bill Fletcher Jr. / Jacobin / May 13, 2013
Gar Alperovitz, author of What Then Must We Do?, will be Thorne Dreyer's guest on Rag Radio, Friday, May 17, 2013, from 2-3 p.m. (CDT) on KOOP 91.7-FM in Austin, and streamed live to the world. They will be joined by Rag Blog economics writer Roger Baker. The show will be rebroadcast by WFTE-FM in Mt. Cobb and Scranton, PA, Sunday morning, May 5, at 10 a.m. (EDT), and the podcast will be posted at the Internet Archive.
[What Then Must We Do?: Straight Talk About the Next American Revolution, by Gar Alperovitz (2013: Chelsea Green); Paperback; 224 pp; $17.95.]

I read Gar Alperovitz’s What Then Must We Do?: Straight Talk About the Next American Revolution with a level of skepticism. He set out to make an argument as to what can be done right now to demonstrate to a growing population weary of neoliberal capitalism that another world is not only necessary and possible, but that one can already see the first glimmers of that new world.

Alperovitz’s views are shaped by several assumptions. First, that actually existing capitalism is not working. Second, that socialism, as we have known it in the 20th century did not work. Third, that people need to actually see what an alternative world would look like in order to be encouraged to fight for one.

He then proceeds to identify actual examples of different struggles and projects that have been undertaken by progressives that show that a different way of organizing life and the economy is not only a great idea, but living realitiy.

Alperovitz spends little time critiquing 20th century socialism. For the most part he is interested in demonstrating that capitalist dogma, in particular neoliberal capitalist dogma, is both a myth as well as fundamentally unworkable. He suggests that there are projects that can be undertaken -- like worker cooperatives -- that will build power for the everyday person and actually move towards social transformation.

Advocating for these institutions, Alperovitz helps the reader to understand the differences that exist under the rubric of worker ownership, showing that there are forms of alleged ownership that really do not amount to control while at the same time there are processes that can be undertaken that alter workplace dynamics as well as the relationship of an enterprise to the broader community.

Alperovitz links his proposed process with what he sees as the next American Revolution. In that sense he believes that it is critically important that new transformative change in the United States must be rooted in lived reality in the country and also viewed by the public as “American.” For that reason, demonstrating to the “99%” that alternatives are underway and that they are not the creatures of foreign ideologies and foreign powers is absolutely essential.

What Alperovitz proposes are the equivalent of what has been traditionally known as “structural reforms” or in some cases “non-reformist reforms” along with a variation on what the Black Panther Party once called “survival programs.” This is reason enough that this book should not only be read but studied carefully.

The structural reforms and survival programs that Alperovitz is suggesting respond to the irrationality of neoliberal capitalism and the inability of the existing system to meet the needs of a growing percentage of the population. The reforms proposed are both clear and compelling and, in many cases, achievable.

In reading What Then Must We Do? I found it less a platform for revolutionary change than a platform for a frontal assault on neoliberal capitalism. To borrow the terminology of activist Carl Davidson, it is a program of a “popular front” against finance capital. It is the sort of platform and approach that can help to unite a broader progressive movement and make it more than the sum of its parts.

Alperovitz’s concern that the “99%” needs to see examples of the future is not grounded in 19th century utopian socialism. This book is not suggesting that various alternative experiments can be built, exist alone, and somehow convince the larger population -- by their example -- that this is the way to go. Rather he is suggesting that progressive and left forces undertake a multi-decade process of expanding democracy at all levels, within which the various experiments in alternatives are actualized.

Again, this is very much in line with certain more traditional leftist strategic directions regarding structural reforms and survival programs that can be fought for within the context of democratic capitalism.

But is this enough?


In the fall of 1988, I had the opportunity to tour Northern Ireland, meeting with the leaders of Sinn Féin. One of the areas to which I was introduced were worker cooperatives that had been established by Sinn Féin or its allies.

I arrogantly asked Sinn Féin President Gerry Adams what these cooperatives had to do with the liberation of Ireland from the British. Adams, very patiently, explained to me that, while these cooperatives would not liberate Ireland, at the same time the nationalist population was impoverished and needed a way to survive. With my tail between my legs I acknowledged the profundity of his point.

One of the strengths of What Then Must We Do? is that, much like Sinn Féin in the late 1980s, it is responding to an immediate challenge among the population. It is suggesting that there are things that can and must be done right now particularly within sectors of the population that have been largely written off by either the state or by private capital. The “dead cities” of this country come to mind, like Camden, which have become modern reservations for redundant populations.

A second strength is that the objectives that would fall more within the rubric of structural reforms actually do link with a larger democratizing movement that is necessary to take this country away from its drift toward neoliberal authoritarianism (or, for that matter, right-wing populism).

If thought of as part of a larger strategy, struggles around genuine healthcare reform, banking reform, or alternative economic development become battlegrounds not only in favor of the “99%,” but sites where the people are actually engaged in their own liberation.

But Alperovitz does not answer key questions. What, for example, is neoliberal capital doing while we are moving this democratization process? Alperovitz acknowledges that there remain dangers from the Right, including the use of violence. But this factor is critically important for all leftists and progressives.

The ruling power bloc has largely consolidated around a notion that huge chunks of this population -- at least 47%, according to Romney -- are nothing more than parasites and should be written off. They see no need, at least at the present time, to construct anything approaching an alliance with the working class generally, or organized labor in particular, along the lines of the New Deal coalition. Rather they seek to either crush the organized forces of the working class altogether or completely marginalize them.

While Alperovitz is correct to argue that this platform can be critical for a progressive movement, he may understate the challenges that face the Left. At each moment when we win, the forces of reaction not only seek to overturn the victory, but they also seek to overturn the means through which the victory was actually won.

None of this is to suggest that anything other than a movement for consistent democracy should be proposed. Rather, that the struggle that is undertaken in the name of structural reforms, survival, and democracy will inevitably reach a fundamental impasse with capital over the basic rules of society. At that point there should be nothing to lead anyone to believe that capital will handle this peacefully and humbly.

As a result What Then Must We Do? seems incomplete. I was persuaded by Alperovitz that a glimpse into the future is critical largely due to reality of the failure of 20th century socialism, or more accurately, what is better described as the crisis of socialism.

We are not, in other words, starting off with a clean slate. There are experiences with socialist and so-called socialist projects and those experiences are uneven in their outcome, and failed over the longer term to provide an alternative to capitalism.

Yet this does not mean that an evolutionary path into the future is realistic. That may sound contradictory since the direction proposed by Alperovitz is one that I praise. But one must remember the context: his book serves as a platform for a popular front against finance capital. It is not, however, a platform for a new society.

Where Alperovitz and I disagree seems to be on the question of how “elastic” democratic capitalism is and will be over the coming years. I think that democratic capitalism is far more flexible in adjusting to circumstances and crises than many of us on the political Left have believed over the decades.

At the same time, the combination of the economic and environmental squeeze leads me to believe that the ruling elite is on a mad dash to secure as much as it can while it can. If this means political disenfranchisement of millions through voter suppression and other efforts, or more direct forms of terror, there is nothing in the history of capitalism that leads me to believe that they will fail to exercise such an option.

Given this, Alperovitz’s platform is at best one component in a much more long-term socialist strategy. By this I mean not only the vigorous fight for structural reforms, but a level of popular organization and mobilization that ultimately pushes for a different constitutional framework, a fundamentally different arrangement in favor of empowering working people, an end to imperialism, and a new relationship between humans on planet Earth.

Such change necessitates a revolutionary transformation and an active process of eliminating the forms of oppression central to capitalism.

In using the term “revolutionary” I am emphasizing a break with actually existing capitalism rather than a slow transformation away from the current toxic system. Such a break, however, is not something that can be led by a small yet spirited sect, and neither is it something that is simply proclaimed. In that sense what Alperovitz suggests at the level of timeline is correct; we are speaking about a process over decades that is then followed by a process of actual transformation lasting decades into centuries.

For many this may all seem like a distinction without a difference, but the importance of clarifying this lies in both matters of expectations as well as strategy. The “Chilean option” succeeded in part because the forces around Allende underestimated what it would take to defeat the political Right. The struggle for structural reforms and survival presented by Alperovitz is essential in cornering the political Right and changing the “common sense” of the U.S. political arena. But it is not enough to wound the rabid beast; one must ultimately bring it down.

This article was first published at Jacobin / a magazine of culture and polemic." 

[Bill Fletcher Jr. is a racial justice, labor and international writer and activist. He is the immediate past president of TransAfrica Forum; a Senior Scholar with the Institute for Policy Studies; and an editorial board member of BlackCommentator.com. His latest books are They’re Bankrupting Us!: And 20 Other Myths about Unions and Reimagining Labor Unions: Busting Myths, Building Movements. Find more articles by Bill Fletcher Jr. at The Rag Blog.]

The Rag Blog

[+/-] Read More...

06 October 2011

Bill Meacham : Mondragon: Reinventing Humanity

The Mondragon Corporation. "The present, however splendid it may be, bears the seeds of its own ruin if it becomes separated from the future." -- José María Arizmendiarrieta.

Mondragon: Reinventing humanity
It is a striking vision, and a welcome alternative to the dog-eat-dog competition that is rampant both within and between conventional enterprises.
By Bill Meacham / The Rag Blog / October 6, 2011

The human capacity for second-order mentation -- the ability we have to consider in thought and imagination not just the world around us but ourselves as well -- has led existentialists such as Jean-Paul Sartre and Simone deBeauvoir to say that the human being is always free to recreate himself or herself, that we have no fixed essence, but are what we make of ourselves.

There is certainly a germ of truth in this assertion. If you suffer from some behavioral or psychological problem, the first step in fixing it is to admit that you have a problem; that is, to be conscious enough of yourself to know that there is something you are doing or feeling or thinking that is causing trouble. Then you can mentally step back, reassess the situation, and start doing something different.

In practice, of course, this is often more easily said than done, and there is in fact quite a bit that is fixed about human nature. But within that fixity we have the freedom to reinvent ourselves. By virtue of second-order mentation, we are not fully constrained by the past.

In the individualistic West we tend to think of this freedom in purely personal terms. A young man asks whether he should leave his ailing mother to join the resistance or stay and take care of her, and Sarte’s answer is that the only answer is the young man’s freedom to choose: “You are free, therefore choose, that is to say, invent.”[1] But a more powerful form of self-invention is to be found in the social realm. Case in point: The Mondragon cooperatives.

The Mondragon cooperatives are a federation of worker-owned cooperatives based in the Basque region of Spain. Founded in 1956 through the efforts of a visionary Catholic priest, Father José María Arizmendiarrieta, Mondragon started as a small, worker-owned enterprise making kerosene stoves in 1956. It has since grown to become the seventh-largest business group in Spain, with annual sales of 14 billion Euros and over 100,000 workers. It comprises over 260 affiliated enterprises, including 120 core cooperatives, and has affiliates not just in Europe but around the globe.

The worker-owned cooperative is the core Mondragon social institution and the most ingenious reinvention of what it is to be human. In the cooperative, the workers themselves own the enterprise. There is no outside owner, unlike the capitalist corporation or the communist state-owned collective.

Each worker-owner has one vote, and decisions are made by democratic vote of all owners. Structurally, it is like a sole-proprietorship, except that there are many proprietors, the workers. Nobody gets a wage; instead each is paid a monthly advance on his or her share of the year’s projected profit.

The worker cooperative is a fundamental inversion of the corporate model we take for granted in the capitalist world. In a conventional company, the owners of capital have ultimate authority, and the laborers are subservient. In a worker-owned cooperative, labor has ultimate authority, and capital is subservient, a principle known as Sovereignty of Labor.

What it means in practice is that the workers, being the owners, run the enterprise for their own benefit, not for the benefit of a separate class of people who own it but do not do the work. No outside owner can shut down a factory, fire the workers, and move production somewhere else. No outside owner can mandate overtime, reduced pay, or hazardous working conditions.

The objective is not to make as much profit as possible for a few, but to make a good living for all. And in fact the worker-owners make, on average, 10 percent more than their counterparts in neighboring non-cooperative businesses.

Sovereignty of labor has several implications:
  • Democratic control: one worker, one share, one vote.
  • Distribution of profits only to workers, the cooperative, or the local community, not to outside investors.
  • Egalitarian income spread. On average, the highest-paid worker in a Mondragon enterprise makes four to five times as much as the lowest. The maximum is nine times as much. (Contrast this to many big corporations, whose ratio may be as much as several hundred to one.)
  • Participation in decision making. Each cooperative elects its own management team and has an annual meeting at which the worker-owners make strategic decisions about the enterprise. And there is a general council consisting of representatives from all the member cooperatives that makes decisions about the corporation as a whole.
Three things were of crucial importance from the very start: school, credit union, and factory. In 1943, well before the first manufacturing enterprise, Father Arizmendiarrieta started a trade school, so students would have necessary skills to make a living and to form and run a cooperative. He also started a credit union, so people could pool their savings to provide start-up capital. Only when these were in place did the first manufacturing operation begin. A factory alone would lack ongoing sources of credit and new innovative skills.

In addition, the Mondragon cooperatives correct a fatal flaw that has historically led to the demise of worker-owned enterprises. In the Mondragon co-ops, a retiring worker’s share cannot be sold to just anyone, not even another co-op member, but only to a new incoming worker or back to the co-op. This prevents external stock buyers, speculative capitalists, from taking over successful co-ops.

Many an ESOP (Employee Stock Ownership Plan) enterprise has collapsed because shares were sold to non-employees who, after acquiring enough of them, terminated or radically changed the business. In the Mondragon cooperatives, capital and ownership of the business stays with the workers.

Sovereignty of labor is only one of the 10 core principles of the enterprise. The complete list includes such things as a ban on discrimination for religious, political, ethnic, or sexual reasons; democratic and participatory management; cooperation among member co-ops and with other cooperative movements world-wide; and a commitment to social transformation and education.

Visionary Catholic Priest José María Arizmendiarrieta, founder of Mondragon, shown at age 70.

It is a striking vision, and a welcome alternative to the dog-eat-dog competition that is rampant both within and between conventional enterprises.

Certainly the worker-owners think so. Even if offered more pay somewhere else, most would not leave. They like the job security and the fact that they have a vote. The cooperative meets fundamental human needs: not just the needs for sustenance and social contact, but for self-determination as well.

The cooperative model is promising for a sustainable future, because it is not driven to grow in the same way as the capitalist model and because it allows its worker-owners benefits other than increased material consumption.

Democratically-controlled firms do not have the same drive for growth as capitalist firms. Capitalist firms aim at maximizing total profit, while cooperative firms aim at maximizing profit per worker. If a capitalist firm grows, doubles its workforce and doubles its profit, the owners get richer. If a cooperative firm grows, doubles its workforce and doubles its profit, each worker-owner gets the same amount of money. There is no internal motivation to grow.[2]

There are external motivations to grow, of course. Growth can provide economies of scale, driving costs down. Growth can provide more share of the market, so the firm is more assured of continued operation. The Mondragon cooperatives are enterprises in a market economy, subject to the same constraints and imperatives of competition that capitalist enterprises are.

But there is an important difference. When innovation brings about a productivity gain, worker-owners are free, if they wish, to opt for more leisure or investment in other market opportunities instead of higher pay, which would lead to increased consumption. Reduced consumption makes for reduced environmental impact.

In a world of vast but limited resources, an expanding population and more and more pollution, it is crucial to find ways of satisfying human needs without degrading the environment. Over-consumption -- buying stuff we don’t really need – is a threat to the environment because it uses up more resources and produces more waste than necessary.

A capitalist owner would be unlikely to allow workers to work less because they have become more productive. There’s no profit in that. But worker-owners, once they reach a certain level of income, might well opt for such a solution, preferring time with family and friends to the means to buy more goods.[3]

The success of the Mondragon co-ops is undeniable, so it is natural to want to replicate it elsewhere. One wonders how much that success is due to factors unique to the Basque country where it started. Perhaps there is something special about the Basque culture. Mondragon is the best known but not the only cooperative enterprise there. The area is rife with producer co-ops (where farm owners, but not their workers, are members), marketing co-ops, consumer co-ops, transport co-ops, housing co-ops and cooperative schools.[4]

The Basque people have a strong sense of ethnic, linguistic, and cultural identity, and they were an oppressed minority under Franco, leading to an even stronger internal cohesion. They have a tradition of equitable land distribution. The first business produced a much-needed product at a good price; and the area is strategically located, with easy access to large ports like Bilbao, and short distances to major export markets.[5]

Which of these factors is most important for a successful worker’s co-op? Beyond the ability to make and sell a product, which is essential to any economic enterprise, my guess is that in-group cooperation in the face of external hostility had a lot to do with it in the Basque country.

Cooperation, of course, is an inherent human ability and activity. We are most cooperative in the face of an external threat, but we have the ability, in common with our bonobo cousins, to cooperate among groups as well. If we want to replicate Mondragon’s success, we need to foster a sense of empathy, solidarity, and compassion among all humans, a sense that we are all members of one tribe, one family, the human family.

Can we do that? Can we emulate the vision and drive of Father Arizmendiarrieta, without whom the Mondragon co-ops would not have begun? A journalist once remarked that Arizmendiarrieta had created a progressive economic movement anchored in an educational institution. He replied “No, it is just the reverse. We are creating an educational movement for social change, but with anchors in economic institutions.”[6]

It is the whole of humanity that matters most. Perhaps we can form a more cooperative society if we take as our common enemy ignorance, rather than some other group of humans.

Notes

[1] Sarte,
Existentialism is a Humanism.
[2] Schweickart,
Is Sustainable Capitalism Possible? p. 112.
[3] Idem., p. 113.
[4] Davidson,
New Paths to Socialism, p. 26.
[5] Long,
The Mondragon Co-operative Federation.
[6] Davidson,
New Paths to Socialism, p. 25.

References

Davidson, Carl.
New Paths to Socialism: Essays on the Mondragon Cooperatives. Pittsburgh, PA: Changemaker Publications, 2011.
Long, Mike.
The Mondragon Co-operative Federation: A Model for our Time? On-line publication, http://www.cooperativeindividualism.org/long_mondragon.html as of 18 September, 2011.
Mondragon Corporation. Corporate website. On-line publication, http://www.mcc.es/ENG.aspx as of 17 September 2011.
Sartre, Jean-Paul.
Existentialism is a Humanism. On-line publication, http://www.marxists.org/reference/archive/sartre/works/exist/sartre.htm as of 17 September 2011.
Schweickart, David.
Is Sustainable Capitalism Possible? In Davidson, New Paths to Socialism, pp. 103 – 126.
Wikipedia. “Mondragon Corporation.” On-line publication, http://en.wikipedia.org/wiki/Mondragon_Corporation as of 17 September 2011.


[Bill Meacham is an independent scholar in philosophy. A former staffer at Austin's 60s underground paper, The Rag, Bill received his Ph.D. in philosophy from the University of Texas at Austin. Meacham spent many years working as a computer programmer, systems analyst, and project manager. He posts at BillMeacham.com, where this article also appears. Read more articles by Bill Meacham on The Rag Blog]

Also:
The Rag Blog

[+/-] Read More...

15 September 2011

Rag Radio : Carl Davidson on Mondragon and Workers' Cooperatives

Rag Radio's Tracey Schulz (left) and Thorne Dreyer, with guest Carl Davidson at the KOOP studios in Austin, Friday, Sept. 9. Photo by Jim Cleveland / KOOP Radio / The Rag Blog.

Noted writer and political activist Carl Davidson on
Rag Radio with Thorne Dreyer. Listen to it here:



The Rag Blog and the New Journalism Project brought writer and political activist Carl Davidson to Austin to give a multi-media presentation on "The Mondragon Corporation and the Workers' Cooperative Movement" at the 5604 Manor community center last Thursday, Sept. 8, and Carl also discussed the subject with Thorne Dreyer on Rag Radio the next day.

Carl talked about the history of Mondragon, its unique organizational structure -- involving factories, schools, and credit unions -- and its role as a model and an inspiration for the cooperative movement worldwide. The Mondragon Corporation is a 50-year-old network of factories and agencies, involving close to 100,000 workers (who are also, collectively, the owners) -- centered in Spain’s Basque country, but now spanning the globe.

Carl also discussed the thriving cooperative movement in the United States, as well as his concept of 21st century socialism and how it differs from the socialism of the last two centuries. Socialism for a new century, he said, must incorporate ecological thinking and sustainable development; must acknowledge that markets will be a part of any socialist society; and must affirm human rights as a natural "attribute of our humanity."

Carl Davidson, a regular contributor to The Rag Blog, is a co-chair of the Committees of Correspondence for Democracy and Socialism, a national board member of Solidarity Economy Network, and a local Beaver County, PA member of Steelworkers Associates. In the 1960s, he was a national leader of SDS and a writer and editor for the Guardian newsweekly. He is also author of several books, including, with Jerry Harris, CyberRadicalism: A New Left for a Global Age, and New Paths to Socialism, essays on worker coops, Marxism, and the green economy.

Rag Radio -- hosted and produced by Rag Blog editor Thorne Dreyer -- is broadcast every Friday from 2-3 p.m. (CDT) on KOOP 91.7-FM in Austin, and streamed live on the web. The show, which has been aired since September 2009, features hour-long in-depth interviews and discussion about issues of progressive politics, culture, and history. After broadcast, all episodes are posted as podcasts and can be downloaded at the Internet Archive. Rag Radio is also rebroadcast on Sundays at 10 a.m. (Eastern) on WFTE, 90.3-FM in Mt. Cobb, PA, and 105.7-FM in Scranton, PA.
Musician Bill Oliver leads a group in singing labor songs after Carl Davidson's presentation at 5604 Manor in Austin. Photo by Alan Pogue / The Rag Blog.

The Rag Blog

[+/-] Read More...

23 August 2011

The Rag Blog Presents : Carl Davidson on Mondragon and Workers' Cooperatives

CLICK ON IMAGE TO ENLARGE
The Rag Blog, Rag Radio, and the New Journalism Project
Present Noted Writer and Political Activist Carl Davidson:
'Mondragon and the Workers' Cooperative Movement'
A Multi-Media Presentation

Thursday, Sept. 8, 2011, 7-10 p.m.
At 5604 Manor Community Center,
5604 Manor Road, Austin, Texas

Austin singer/songwriter Bill Oliver will perform.
Refreshments, including beer and wine, will be available.
$5 Suggested Donation

Go to our Facebook event page.
Carl Davidson in Austin:
'The Mondragon Corporation and
the Workers' Cooperative Movement
'

The Rag Blog, Rag Radio, and the New Journalism Project present noted writer and political activist Carl Davidson with a multi-media presentation on "The Mondragon Corporation and the Workers' Cooperative Movement," from 7-10 p.m., Thursday, Sept. 8, 2011, at 5604 Manor Community Center, 5604 Manor Road, Austin, Texas. There is a suggested donation of $5. After the presentation, Austin musician Bill Oliver will perform live. Refreshments, including beer and wine, will be available.

The Mondragon Corporation is a 50-year-old network of factories and agencies, involving close to 100,000 workers -- centered in Spain’s Basque country, but now spanning the globe. Mondragon is an experiment, at once radical and practical, in how the working class can become masters of their workplaces and surrounding communities.

Carl Davidson, a regular contributor to The Rag Blog, is a co-chair of the Committees of Correspondence for Democracy and Socialism, a national board member of Solidarity Economy Network, and a local Beaver County, PA member of Steelworkers Associates. In the 1960s, he was a national leader of SDS and a writer and editor for the Guardian newsweekly. He is also author of several books, including, with Jerry Harris, CyberRadicalism: A New Left for a Global Age, and New Paths to Socialism, essays on worker coops, Marxism and the green economy.

Bill Oliver, known as the “Environmental Troubadour,” is an Austin-based singer/songwriter and entertainer.

5604 Manor is a community center run by the Workers Defense Project, Third Coast Activist Resource Center, and the Third Coast Workers for Cooperation.

The Rag Blog is a progressive internet newsmagazine based in Austin, Texas. The Rag Blog is published by the New Journalism Project, a 501(c)(3) Texas nonprofit corporation. Rag Radio is a weekly public affairs program hosted by Rag Blog editor Thorne Dreyer, Fridays, 2-3 p.m., on KOOP 91.7-FM in Austin.

Carl Davidson will also discuss the Mondragon Corporation and workers cooperatives on Rag Radio, Friday, Sept. 9, from 2-3 p.m. on KOOP 91.7-FM, and streamed live on the World Wide Web.The Rag Blog

[+/-] Read More...

06 October 2010

Carl Davidson : Mondragon Diaries V: Innovation and Transformation

Image from Mondragon website.

Mondragon Diaries, Day Five
Innovation and transformation
towards a third wave future


By Carl Davidson / The Rag Blog / October 6, 2010
“The world has not been given to us simply to contemplate it, but to transform it. And this transformation is accomplished not only with our manual work, but first with ideas and action plans.” -- Father Jose Maria Arizmendiarrieta, founder of the Mondragon Coops
[This is the fourth of a five-part series by Carl Davidson about the Mondragon Cooperative Corporation, a 50-year-old network of nearly 120 factories and agencies, involving nearly 100,000 workers -- centered in the the Basque Country but now spanning the globe. Go here for the series so far.]

BASQUE COUNTRY, Spain -- Today the Mondragon valley is misty and grey, with small clouds drifting close to the valley floor between the mountain peaks. It's somewhat otherworldly, I think to myself on the bus ride up the slopes, almost like a scene from “The Lord of the Rings.”

Today is also our last day, and we're full of mixed feelings. Melancholy that our week-long seminar is coming to a close and that the new friends we've made will scatter. But there's also excitement that we'll soon be back home and able to share it all with our communities.

Our first stop is another component allied with Mongragon University called SAIOLAN. It's an incubator project for helping to launch new coops and high-tech businesses.

We're greeted in a classroom by a young woman from Mexico, Isabel Uriberen Tesia, who is also our presenter. She wastes no time bringing up her powerpoint on the screen and getting into the topic.

“Our aim is generating employment, creating new jobs,” she says. “our purpose is to do this by developing new business projects and training new entrepreneurs.”

A few years back, as the economic crisis was developing, nearly 60 percent of the students graduating in the Basque Country were having a hard time finding employment. The government, the MCC coops, and other businesses, as well as the students themselves, all turned to SAIOLAN to help launch new enterprises that could put young people to work.

“There are five levels in the training of entrepreneurs,” Isabel explained. “First is motivation. Second is finding opportunities. Third is defining a suitable project for the student, in tune with his or her interests and ideas. Once you get past these three, the next two, planning the startup and launching what you have developed, also involves finding resources, such as grants and loans, that can get the new businesses operating.”

What kind of businesses were being started? One involved processing plants for cleaning waste water in a new and better way, another was called "micro-manufacturing," producing very small components accurately, quite a few were new software products. One from FAGOR, the large home appliance worker-cooperative, involved finding new uses for stainless steel, including exterior products, like one-piece transit stop structures.

Some in our group were concerned that many of the new startups were simply new businesses rather than also coops. This was 80 percent, or 138 out of 172 new small enterprises over the last few years, with 2,281 new employees. SAIOLAN didn't seem worried. “It's their choice,” was the explanation. “Some of them will later transform into coops, and in any case, it's good to create new employment for our entire Basque community, not just the minority in cooperatives.”

We got deeper into the subject in our next session. It was further up the mountainside at Otlalora, and we had as our resource person Jesus Herrasti, one of the senior MCC leaders, the head of the “Innovation Group," who had been with Mondragon for 48 years.


After laying out some of the basic features of innovation -- infrastructure, science, technology, strategic planning -- Herrasti made it much more real by talking about a fundamental conflict facing all manufacturing businesses, not just MCC.
Take FAGOR, our home appliance manufacturing coop. It's a mature business. We can continue to compete by making some additional improvements in quality, or cutting our profit margins. But in the end, it's going to be very hard to compete with similar products produced in Asia. We should keep at it as long as we can operate in the black and our worker-owners can maintain their standards, but where, really, is our new growth potential?
He named three broad areas -- renewable energy, health and eldercare, and information technology. It got even more interesting to me as he became more specific about new product lines -- fuel cells, wind turbines, photovoltaics, embedded software, wireless, ambient intelligence, and bioprocessing in supercomputers. He was presenting the shift from second wave manufacturing to the high-design and high-touch products of a third wave future in a knowledge economy, and he had 200 people working full time on coming up with new ideas and plans.

I asked a question.
Have you had any inquiries from those countries trying to define a new 21st century socialism, in whatever way, such as Venezuela, Cuba, China, Vietnam, or even South Africa, on how they might use Mondragon's ideas and services? Do you think you have something to offer here?
“Yes and no,” was the cautious answer.
We get queries from all of them. We've been to China and other places, and there is some genuine interest, to a point. But since spreading knowledge and worker's power at the workplace also often runs against the clinging to control by bureaucrats, socialist or otherwise, the interest often comes to a dead end. But it's not always the case, and we keep working on doing what we can.
He went on to discuss the problems of cultural differences.
We Basques are often risk-adverse when it comes to business, unlike Americans. We often avoid risks when we shouldn't. On another hand, when we talk with Mexican workers about taking over and owning the firms we start there for themselves, and where they elected the leadership, they simply don't believe us. They want to know where "the trick" is hidden, since businesses, in their culture, are always owned by bosses, never by workers. There is no trust, at least trust with us, that it can be otherwise.
So what are the basic things needed to start worker-cooperatives in our countries, asked one of our group?
First the workers themselves must FEEL THE NEED. Without that, it's hard to get anywhere. Second there must be a culture of TRUST, since you are sharing money, sharing risks, and supporting new leaders. Third, is to BE REALISTIC. You need successes, especially in the beginning. Too many early mistakes, and you are finished. Finally, you need friends and collaborators -- but pick them carefully!
This had us inspired and buzzing all through lunch, another amazing sampling of Basque cuisine. I had steamed artichokes with a delicious sauce and braised pork, finished off with dark strong coffee and ice cream with slivers of dark chocolate.

The afternoon session featured a presentation of one of the students in MUNDUKIDE, a small overseas assistance program with the people of Mozambique, Brazil, Cub, and a few other countries. One discussion was largely about microloans, which weren't working very well, and another about road-building, which was rather successful.

Our final session was with Fred Freundlich, the American professor, who was a veteran of the movements against plant closings in the U.S. a few decades back, who now was a faculty member at Mondragon University. Since he understood both our realities and those at MCC, he could handle any outstanding questions.

There were a lot of them. The first was how much was MCC's success a result of factors unique to the Basque Country. “It's somewhat important, but not decisive,” Fred answered.
One very important factor was it started at just the right time. If it had started 10 years earlier, conditions may have been too harsh. But the first coops were launched at a time when people really needed a lot of things, and finally had a little savings to spend. Many businesses grew in this period. If it started 10 years later, MCC may have had much stronger competition, and may not have gotten off the ground so well.
I asked what was the response of the socialist and communist groups in the Basque County and Spain to MCC? “Mixed and confused,” was the answer. Some thought it utopian. Others dismissed it as a diversion, as making workers into capitalists. "But they still keep sending delegations for visits, and going away impressed," Fred noted. The Basque left was also fragmented over violence, when ETA, the Basque armed resistance group, assassinated a former leader of one of the MCC coops who was also a socialist official.

After a thoughtful pause, Fred made a point that applied to the U.S. Left as well. “There's two trends in the left,” he explained. “Those who think long and hard about business and what to do with it. And those who mainly like to discuss left ideas.” The implication was that the two trends most often didn't overlap, even if it was wise to do so, both tactically and strategically.

Mikel brought the session to an end by asking us all for our new ideas on how we might implement what we had learned, and possible projects for doing so. There were all sorts of plans in the works on the part of our group, from networking food coops, to producing new green products, to making a new film about Mondragon for a U.S audience.

We clearly all had our imaginations fired up by the experience. Mikel gave us each a certificate for completing a 40-hour study seminar, which was a lovely touch. But the truth was that most of us would need no reminder hanging on our walls. What we had learned here had changed us, in some ways deeply, and we would be looking at people and projects in new ways for some time to come.

[Carl Davidson is a national co-chair of the Committees of Correspondence for Democracy and Socialism, a national board member of Solidarity Economy Network, and a local Beaver County, PA member of Steelworkers Associates. His website is Keep on Keepin' On, where this series also appears. Davidson is also available to speak on the topic. Contact him at carld717@gmail.com. For more info on these tours, go here.]

Also see:The Rag Blog

[+/-] Read More...

Robert Jensen : The Cooperative Alternative

Art by Joseph Bau / Fearless Fathers.

The cooperative movement:
Doing business as if people mattered


By Robert Jensen / The Rag Blog / October 6, 2010

There’s no shortage of political blather in this year’s mid-term election campaigns, but most of us yearn for substantive discussion of the serious problems we face. What should the politicians be discussing? The University of Texas at Austin asked faculty members who teach about politics “to analyze, examine and provide their perspectives” on key political issues for the university’s website, with new essays posted each weekday throughout the campaign season.

I contributed three short essays that raise critical questions about economics, empire, and energy that are routinely ignored by most politicians. Here is one of them.


When politicians talk economics these days, they argue a lot about the budget deficit. That’s crucial to our economic future, but in the contemporary workplace there’s an equally threatening problem -- the democracy deficit.

In an economy dominated by corporations, most people spend their work lives in hierarchical settings in which they have no chance to participate in the decisions that most affect their lives. The typical business structure is, in fact, authoritarian -- owners and managers give orders, and workers follow them. Those in charge would like us to believe that’s the only way to organize an economy, but the cooperative movement has a different vision.

Cooperative businesses that are owned and operated by workers offer an exciting alternative to the top-down organization of most businesses. In a time of crisis, when we desperately need new ways of thinking about how to organize our economic activity, cooperatives deserve more attention.

First, the many successful cooperatives remind us that we ordinary people are quite capable of running our own lives. While we endorse democracy in the political arena, many assume it’s impossible at work. Cooperatives prove that wrong, not only by producing goods and services but by enriching the lives of the workers through a commitment to shared decision-making and responsibility.

Second, cooperatives think not only about profits but about the health of the community and natural world; they’re more socially and ecologically responsible. This is reflected in cooperatives’ concern for the “triple bottom line” -- not only profits, but people and the planet.

The U.S. government’s response to the financial meltdown has included some disastrous decisions (bailing out banks to protect wealthy shareholders instead of nationalizing banks to protect ordinary people) and some policies that have helped but are inadequate (the stimulus program). But the underlying problem is that policymakers assume that there is no alternative to a corporate-dominated system, leading to “solutions” that leave us stuck with failed business-as-usual approaches.

It’s crazy to trust in economic structures that have brought us to the brink of economic collapse. But even in more “prosperous” times, modern corporations undermine democracy, weaken real community, and degrade the ecosystem. New thinking is urgently needed. Politicians who talk about an “ownership society” typically promote individual ownership of a tiny sliver of an economy still dominated by authoritarian corporate giants. An ownership society defined by cooperative institutions would be a game-changer.

None of this is hypothetical -- there are hundreds of flourishing cooperative businesses in the United States. The United States Federation of Worker Cooperatives, provides excellent information and inspiring stories. In Austin, a cooperative-incubator group, Third Coast Workers for Cooperation, offers training and support for people interested in creating democratic workplaces.

Putting our faith in institutions that have become too big to fail has failed. Institutions that are too greedy to defend can’t be defended. Cooperative businesses aren’t a magical solution to the critical economic problems we face, but a national economic policy that used fiscal and tax policies to support cooperatives would be an important step on a different path.

[Robert Jensen is a journalism professor at the University of Texas at Austin and board member of the Third Coast Activist Resource Center in Austin. He is the author of All My Bones Shake: Seeking a Progressive Path to the Prophetic Voice, (Soft Skull Press, 2009); Getting Off: Pornography and the End of Masculinity (South End Press, 2007); The Heart of Whiteness: Confronting Race, Racism and White Privilege(City Lights, 2005); Citizens of the Empire: The Struggle to Claim Our Humanity (City Lights, 2004); and Writing Dissent: Taking Radical Ideas from the Margins to the Mainstream (Peter Lang, 2002). Jensen is also co-producer of the documentary film Abe Osheroff: One Foot in the Grave, the Other Still Dancing, which chronicles the life and philosophy of the longtime radical activist. Robert Jensen can be reached at rjensen@uts.cc.utexas.edu.]
  • Also see Carl Davidson's "Mondragon Diaries" series on The Rag Blog -- about the 50-year old Mondragon Cooperative based in the Basque Country of Spain.
The Rag Blog

[+/-] Read More...

01 October 2010

Carl Davidson : Mondragon Diaries IV: Banking on the Future

Arrasate-Mondragon in the Basque Country of Spain. Image from SolidarityEconomy.net.

Mondragon Diaries, Day Four
Worker coops, worker banks, worker skills:
Weathering today's crises


By Carl Davidson / The Rag Blog / October 1, 2010

[This is the fourth of a five-part series by Carl Davidson about the Mondragon Cooperative Corporation, a 50-year-old network of nearly 120 factories and agencies, involving nearly 100,000 workers -- centered in the the Basque Country but now spanning the globe. Go here for the series so far.]

BASQUE COUNTRY, Spain -- Most new small businesses fail. That's a fact, whether they are in the Basque Country or in the U.S. Or anywhere else. Yet the Mondragon Coops, which all started as small worker-owned businesses, have hardly ever failed. Why? The key is in Father Jose Maria Arizmendi's original founding conception of cooperatives as the interlocking of school, factory, and credit union.

This was the thought I was rolling over in my mind as our bus again climbed the slopes on the Arrasate-Mondragon valley, this morning with grey skies and a light drizzle. We were headed for an administrative office of Caja Laboral, the worker-owned banking network of the MCC Coops. The ride wasn't far, and we were soon whisked into a small auditorium. Our mentor, Mikel, introduced the staff member who would introduce us to the world of banking, and Mondragon's modification of one corner of that reality.

Some people might question why workers for social change would want to be involved with banks at all. But certain kinds of credit and finance are important components of any society -- capitalist, socialist, or somewhere in between.

Father's Arizmendi's conclusion that two of the many reasons cooperative movements failed in the past was the lack of reliable credit and the lack of innovation and new ideas. Hence the reason he started with a school, but was soon to add a small credit union formed from the small deposits of his parishioners and their neighbors. To start a factory, you had to borrow some money, and borrowing the money of people close to you at low cost was the best way to go.

By 1959, the small credit union had grown and transformed into Caja Laboral. Today it is one of the major banks in Spain, with assets of 21 billion euros and 1.5 billion in equity. It has 18.6 billion in customer deposits, offset by 16.4 billion in credit loans. It has 1,2 million clients, only 120 of which are the MCC coops.

It has 2,000 people working for it, and all are worker-owners. Actually, the bank is owned 55% by the MCC coops and 45% by the staff workers. But the rule they have adopted is that the factory coops pick eight of the board members, while the staff workers elect four. Since Caja Laboral, is a coop of coops, it is what MCC calls a "second degree" coop. Other second degree coops are their schools, medical clinics, and insurance agencies.

“We are rated the best bank in Spain in customer satisfaction,” says our presenter. “One reason is that we are worker-owners ourselves, and not socially distant from them. We work closely with our clients. We are prudent and conservative

Mikel gave a wry laugh from the back of the room, and interjected: “Except for the Lehman Brothers fiasco...” It turns out Caja Laboral had taken a hit of 160 million euros it had tied up in Lehman Brothers securities when the Wall Street investment bank collapsed at the beginning of the financial crisis two years back. Not only had MCC's bank been hurt, but

“Yes,” said our presenter. “But we followed our rule of transparency. You and everyone else knew it the same day, and we announced it to the press the next morning.”

This opened up a discussion among all of us on the proper role of banking and credit unions, including cooperative ones. It's not a subject progressive activists are all that familiar with, but we had it anyway.

First it was clear that Caja Laboral's big sin in the Lehman Brothers case was believing in the validity of the AAA ratings of its securities, set by U.S. Government agencies, which turned out to be a sham. Second, it was also clear from the numbers presented that Caja Laboral was really something on the order of a strong and relatively cash-rich savings and loan operation and consumer services bank. Its managers didn't get rich, but had incomes within the same narrow and modest salary spread as all MCC coop members. Its profits were plowed back in to building new coops.

It was not in the same league as the giant Wall Street speculators in derivatives, with their billion dollar bonuses, who were trying to gain wealth not by creating new wealth, but by pure gambling with other people's money.

Most of us concluded that Caja Laboral was a sound and necessary part of MCC and its growth, but the arguments continued out the door and on the bus ride further up the mountainside to our next talk at the Otalora conference center.

Here we had a new topic, the training of governing boards of the coops. It did no good to elect workers to coop governing boards, and then just let them sink or swim. A skills transfer and training program was in order.

Our presenter was Juan Ignacio Aitpunea. He was a well-seasoned and tough-minded older Basque worker with strong cooperative values in his heart.

“We use a Basque word, ORDEZKARI, for our program,” he started off. “It means 'representative,' because that's the task of the boards, to represent the workers. Our boards are elected to four-year terms, but we stagger them. Every two years, only 50% change, but with 120 coops, that means we have about 1,000 new board members to train every two years.

“We do it in steps. In the first six months, we get the new people to do self-evaluations, to find out their competencies, or the lack of them, so we know what to stress over the next year or so.

What were the skills needed?

“First,” Juan continued, “you have to know the basics, the laws on cooperatives and the functions of coop leaders. Second, you need common skills -- teamwork, how to communicate, how to lead, how to make timely decisions. Third, you have to know how to design and work through a followup plan."

All this was crucial because the governing board not only shaped policy, it hired and fired managers. Worker-owners, by their nature, cannot be fired. Over 50 years there was only one case, where a small group got caught embezzling.

Juan went into more detail on this, but our crew had other questions: how were people nominated, and what was involved in running?

First, if there are two vacancies, there must be at least three candidates, he explained. Any worker could volunteer to run, but he or she had to get signatures of 10% of the workforce. Next, the workplace's social council, which serves some of the functions of a trade union, could suggest a candidate. Finally the old board could name one new candidate itself. But an initial vote was taken so each of the final minimum of three candidates to get a 50% minimum, then the vote was held to determine the final two.

“We need this to make sure board members have a wide respect throughout the workplace,” Juan added. “This is especially important in hard times, like now, when hard decisions often have to be made." This meant firing the temp workers or cutting salaries to deal with the downturns.

"Leading is not just about friendship, or making friends. This is not mainly a place for that. But it is a great school where you can learn what it means to be responsible. You may also make a few new friends. In fact, in tough times, that's when you can make the best and truest friends.”

Juan also stressed the need for diversity and the need to bring forward younger leaders. “When you get old like me, you get too used to having your own way. A time comes when you need to let new people in, but still find other ways to make a contribution.”

Mondragon University. Image from Universidad.es.

Our last stop of the day was Mondragon University. It was formed as a second degree coop by joining the engineering school, the business studies program, and the humanities and pedagogy teaching coop. It currently has about 3,600 full time students. Tuition is about 5,000 euros a year, considered moderate for a European university. Most of the students are from middle-income families in the area or from the workers in the coops.

Fred Freundlich was our faculty presenter, an American who had been in the coop movement in the U.S. in the 1980s, but had lived in the Basque County for a good number of years. He gave frank and critical answers to our questions.

I raised my hand, and asked: “Suppose I'm a young worker in one of the local industrial coops, and I decide I want to become part of the management. How does MU help me? Do they?”

The short answer was, "Yes." But Fred added that management usually required a college degree, and you didn't necessarily need to get it from MU. If you had a good resume and vita from elsewhere, you'd still be considered. On the other hand, if your coop saw that you were eager to gain new skills, they would give you a good deal of support, including financial, and going through MU for your degree would be a plus.”

Others raised the general question of activism among youth.
Frankly, Basque youth aren't all that active inside the coops. They're into third world global justice issues, environmentalism in general, and Basque nationalism. About the coop managers, I'd say a strong minority, maybe 30 percent, have solid cooperative values at heart, another minority pays lip service to them, and the rest are somewhere in between. We clearly need a new surge of activism to spread cooperativism beyond the factories, but my guess is only about 30 percent of the workers today are activists on the matter. You really need to talk more with Mikel, who's really a leader on this topic.
Mikel went up front and drew us a wave-like graph, showing an initial surge in the early MCC decades, then a leveling off, then a dip at the beginning of the crisis, and now a small upward turn.

“This is the beginning of a rich discussion, how we need to redefine and reinvent ourselves for the 21st century? But the bus is waiting to take us to dinner in San Sebastian. We can return to it tomorrow.”

[Carl Davidson is a national co-chair of the Committees of Correspondence for Democracy and Socialism, a national board member of Solidarity Economy Network, and a local Beaver County, PA member of Steelworkers Associates. His website is Keep on Keepin' On, where this series also appears. Davidson is also available to speak on the topic. Contact him at carld717@gmail.com. For more info on these tours, go here.]

Also see:The Rag Blog

[+/-] Read More...

27 September 2010

Carl Davidson : Mondragon Diaries III: Visions of the Future

Otalora: This old blockhouse fortress now houses a worker-owned credit union. Image from Udalatx / Flickr.

Mondragon Diaries, Day Three
Visions of the future, ties to the past:
Tools for shaping organization for tomorrow

By Carl Davidson / The Rag Blog / September 27, 2010

[This is the third of a five-part series by Carl Davidson about the Mondragon Cooperative Corporation, a 50-year-old network of nearly 120 factories and agencies, involving nearly 100,000 workers -- centered in the the Basque Country but now spanning the globe. Go here for the series so far.]

BASQUE COUNTRY, Spain -- This morning our bus again takes us far up the winding mountain road to the 15th Century blockhouse fortress now transformed into a conference center. I've since found out it's called Otalora, after an old noble family that owned the whole area reaching back 600 years. In those days, in was an armed way station on a trade route between the center of Spain and the sea, and the Otalora family extracted heavy taxes on the traffic going both ways.

This led to wars among the noble families over these spoils, and at one point the tall armed tower on one end of the building was destroyed by a rival. In the years that followed, to bring a degree of stability, all the armed towers on other castles in the area
were also lopped off . This imagery brought smiles to the faces of the women in our group, who caught the symbolic significance immediately, even if the men took a moment or two to catch up with the laughter.

In any case, Otalora is now owned by Caja Laboral, the worker-owned credit union of the Mondragon Cooperative Corporation, which operates on the scale of a major bank with outlets across the country, in addition to serving as a source of finance to all the MCC coops, that dominate its governing council. The other voice on the council is a bloc of representatives from the Caja Laboral staff workers themselves. A few farmers use the land for dairy cows and sheep, but otherwise, the whole area looks like a well-tended national park.

After the Otalora story, our more serious topic this morning is the wider range of the cooperative movement, both in the Basque Country and Spain. Mikel introduces Lorea Soldevilla, a young worker-owner from KONFEKOOP, the Basque Cooperative Confederation. MCC is part of this, but it turns out that there are many more cooperatives in the region that are not from MCC. From the group's acronym, I also learn that the Basque language does not use the letter "C."

There are currently 755 cooperatives in the Basque Country, she explains, and only 80 of them are the worker-owned MCC coops. There are a total of 537,000 members of all the coops, but only 54,919 are worker members, and 37,860 of these are the MCC worker-owners.

Where did these other nearly 500,000 come from? Lorea brings up a spreadsheet on a screen to show us that there are all kinds of cooperatives and members. Eroski, the supermarket chain, for instance, has consumer members as well as worker members, and there are other consumer coops. There are also producer coops, such a dairy farms where the farm owners are members, but not necessarily the farm workers. There are also marketing coops, transport coops of independent truckers, cooperative schools, food coops, and housing coops.

At the center of KONFEKOOP's work as a confederation is the concept of "inter-cooperation," the idea that coops should help each other. "Inter-Coop," as it's called, has several organized components. ELKAR-LAN helps people with the legal and organizational consulting needed to form new coops. ELKAR-IKERTIGIA is a volunteer policy and research center. PromoKoop helps find new markets and helps coops enter new markets. OLINARRI helps to link coops to the wider social economy.

But there is another vital function as well. MCC is nonpartisan; it's not tied to any political party, and the same is true of many of the others. Still, they need to influence and work with the Basque and Spanish governments, especially on matters of law and regulations that can help or hinder them.

Konfekoop enables them to do this, both as a lobbying arm and by directly having its people serve on government bodies and study groups. It's a way of working with favorable politicians of all parties without directly being members of any of them. The Basque government, for its part, is largely favorable to MCC and the other coops, since they have helped to bring a higher-than-average degree of prosperity to the region.

We all gave Lorea a round of applause for expanding our horizons. It was now time for our caffeine break, and we all headed downstairs to a room in the old castle that was now a coffee bar. There were three workers getting us expressos and cafe con leches, so I asked, 'Are you guys worker-owners of this fancy Caja Cabral enterprise too? I asked. “Of course,” was the answer, as if it was the most natural thing in the world.


As we returned for the next round, I heard a few groans about the title: "The Corporate Management Model." Some gritted their teeth for a technical lecture; a few said, “can't they find a better word than 'corporate'?” “Give it a chance,” I replied. “'Corporation' doesn't always translate with the same meaning we put on it.”

Mikel introduced Jose Luis Lafuente, whose title, accordingly, was "Director of Corporate Management Model." Jose started off by explaining that their model was developed over decades, going back to Father Arizmendi's Ten Principles, but in a 1990's update, was also deeply rooted in the TQM outlook, or Total Quality Management. Again a few eyes were rolled, because a version of TQM was used against U.S trade unions back in those days, and a few around the table remembered it.

But as Jose continued expanding on MCC's approach, which put the core values of worker ownership and democracy at the center of an ever-widening set of values and organizational principles, the mood in the room began to change. He then took each component, and in a wonderful set of inter-linked graphic images, he unfolded a number of powerful tools that could be adapted to any progressive organization to build its strength, grow its size, and achieve its goals.

He posted "people in cooperation" as the first starting circle, then went on to connect that concept to the necessity of participatory organization, wage solidarity, social transformation, and many others. By the time he was done, everyone was wide-eyed. “So what do you think?” he asked. “I love it,” I blurted out. “But I'm going to adapt it to building my socialist and other political organizations.”

He laughed, but in the front of my mind was the conclusion that I had a powerful, modernized framework to update and supplement Lenin's "What Is To Be Done" and a number of other classics on organization.

It was time for lunch, and all the tables were buzzing with excitement over the presentation. Jose sat across from me, but he immediately asked about other matters. “We made an agreement with the U.S. Steelworkers about a year ago to form some worker coops in the U.S. How's it going?”

“From what I know,” I replied, “they want to proceed with caution, finding a few profitable firms to buy up and then transform into coops. Plus a lot of their members had bad experiences in the past with Employee Stock Ownership Plans or ESOPs, and they have an educational task to show how the MCC model is not at all the same as ESOPs.

He countered that it was often easier to form a worker coop as a new startup, but he understood my points. He went on to speak highly of GAMESA, the Spanish wind turbine outfit that had opened up three new plants in Pennsylvania in cooperation with the USW. GAMESA got along fairly well with MCC, even though it wasn't a coop, but simply a high-road green capitalist firm.

After lunch, we boarded our bus and headed back down the mountainside to the town of Assarte-Mondragon. We were next visiting IKERLAN, one of MCC's 13 Research and Development cooperatives. It was the first and the largest, and had a number of research lines. It included 209 full-time research scientists as worker-owners, and another 54 trainees.

“Effective Innovation at the service of our company clients” was how Maria, our presenter, summed up their mission. She went on to describe energy saving power stations, micro-needles for bio-tech medicine, new computer components for smart electrical grids, touch screen control panels for home automation, and so on. “Less energy, with lighter materials at lower costs” is a common thread, she added.

Again I was impressed by seeing the advanced productive forces, created by high design, that would be critical to solving problems like the climate change crisis. One of our team, however, asked an interesting question: “Does serving your clients mean working on nuclear weapons or other military instruments?” No, she said firmly, we turn these down. “Is that written down somewhere?” She wasn't sure, but added that with their values, “We would simply not think of doing things like that.”

The comment served as a transition to the last part of our day, a 40-minute bus ride even higher into the mountains. We were headed to a Franciscan monastery with a new secular institution, BAKETIK, the Basque Peace Center of Aranzazu, far above the small town of Onati.

Basque Country denizens. Image from Epicurean Ways.

The ride itself was a joy, with forest broken up by high mountain meadows with dairy cattle and, once you got higher, the sheep the Basques are known for raising. The cathedral at the top was a powerful piece of modern architecture, one you had to walk down through cut stone to enter.

The peace center itself had taken on a tough task. There were hundreds of undocumented refugee children, mainly from bloody civil conflicts in Africa, who had wound up on the streets of Spain, homeless. Many were brought here, and paired with volunteer "big brothers" and "big sisters" to help them regain trust and their own physical and mental health. It took patience, but it served the children well.

On the way back we stopped for an hour in Onati, known for good chocolate stores. It was true, as I picked up a large bar of truffle-flavored 80% cacao dark for only two Euros. But as I strolled through the town square at evening, I noticed something of far greater value. The town's working-class families were sitting in the town square, drinking beer and coffee, engaged in conversation. Children had the run of the streets, playing games and riding bikes -- and there wasn't a bevy of police cars to be seen. It was a place of community and solidarity, where people still enjoyed the simple company of one another and the smaller pleasures of life.

[Carl Davidson is a national co-chair of the Committees of Correspondence for Democracy and Socialism, a national board member of Solidarity Economy Network, and a local Beaver County, PA member of Steelworkers Associates. His website is Keep on Keepin' On, where this series also appears. Davidson is also available to speak on the topic. Contact him at carld717@gmail.com. For more info on these tours, go here.]

Also see:The Rag Blog

[+/-] Read More...

23 September 2010

Carl Davidson : Mondragon Diaries II: It Starts With a School

Mondragon Cooperative Corporation in Basque Country. Image from PermcultureCooperative.

Mondragon Diaries, Day Two
It starts with a school:
Knowledge and the path to workers power


By Carl Davidson / The Rag Blog / September 23, 2010

[This is the second of a five-part series by Carl Davidson about the Mondragon Cooperative Corporation, a 50-year-old network of nearly 120 factories and agencies, involving nearly 100,000 workers -- centered in the the Basque Country but now spanning the globe. Go here for "Mondragon Diaries I: Bridges to Socialism."]

BASQUE COUNTRY, Spain -- This bright and sunny morning in the Basque Country mountain air again begins with our bus slowly winding up the mountain slopes. But this time it's a short ride. We stop at ALECOP, a unique worker-student cooperative that is at once part of Mondragon's production units and its educational system. Think of it as a small worker-owned community college, but with technology shops that actually produce items for sale in industrial markets, and you won't be far off.

Once we get settled in a classroom, our MCC mentor, Mikel Lezamiz, introduces us to a young 30-something worker-technician who is going to explain ALECOP to us, and a good deal more.

“First of all, we are a mixed cooperative,” he states. “This means we are made up of both worker-owners and students. There are 59 worker members and about 300 student members. Some of our students also work in other coops part-time, but our students are mainly working as part of their studies, and to earn a little money to support themselves as students.”

He goes into some history, reminding us that MCC started back in the 1940s, with the polytechnical school started by Father Arizmendi, the innovative priest who envisioned MCC, as his very first effort to help the war-torn Basque workers find a path out of the devastation of World War II. The first school's students helped form the first factory, but the school also continued, and over the decades, it evolved into what is now ALECOP, several more coop high schools, and what is now Mondragon University.

“To democratize the power, we have to share the knowledge,” interjected Mikal, summarizing Arizmendi's theories. “Thus continual study throughout life must not only be for the rich, but also for the workers.”

What kind of jobs do the ALECOP students have? Our young guide shows us a list: R & D assistant, storekeeper, publisher, process technician, electronic assembler, and several others

What kind of products do they make? “Most important, we design educational tools, to help in teaching electricity, electronics, automation, telecommunications, and other subjects needed in high schools and in factory training. But we are also a nonprofit. We make money, but our hope is mainly to cover our expenses. He goes on to describe a list of 'competencies' that they hope to instill in the students, so they can go to work in FAGOR or other MCC factories with a good degree of skill.

It all becomes much clearer once he takes the 25 of us out into the shop area. As someone who taught computer repair to inner city youth and ex-offenders by recycling old computers, I step away from the group and examine some of the teaching stations.

Teaching stations at Mondragon worker-student cooperative. Image from The Syndicalist.

They are large panels with, for example, critical automotive parts on one side, connected with various testers and gauges. I examine the back side and find the motherboards and circuitry connecting them all. A student who wanted to become an auto mechanic, for example, could test and work through the key components of dozens of vehicles on the front side, while the programming embedded in the back side would give him or her the proper positive or negative training responses.

Very cool, I thought. Even cooler was the fact that the students not only used these machines for their own learning, they also made the circuit boards and wrote the software to make these instructional learning tools in quantity, ready to be sold and used anywhere.

After ALECOOP, our bus makes a quick stop at Mondragon University's top-line coffee bar. We're in a hurry, so Mikel gets busy: How many with milk? How many black espresso? He turns in the bulk order, and with our caffeine fixes, we're back on the road in 20 minutes.

The late morning session is at Mondragon Assembly, a mind blowing and thought bending state-of-the art high-tech and high-design worker cooperative competing on a world scale. Its products are the software and hardware of room-sized automatic assembly machines making solar photovoltaics and many varieties of electronic components for robotics.

“It's rather easy to design a machine that can make a switch or solar cell every 1.8 seconds,” explains a young coop member. “But it's very hard to make the same switch or cell in 1.2 seconds. Yet that is what our clients are demanding of us, and it changes every six months, with higher and faster standards. We either do very well, and make lots of money for the cooperative, or we fail and we lose a lot.

“But this is what we want to be doing,” he adds. “We don't have too many workers in this coop in the 40 to 55 age range. We're all younger. Some say we try to make up in attitude and spirit what we lack in experience!” This brings a round of laughter, but we all know exactly what he means. He goes on to describe the global market for these advanced means of production, with China leading the way in many of them.

“We can't just produce for the Basque Country, or even Spain and Europe. We have clients everywhere, and we are setting up factories everywhere -- Germany, Mexico and China, too.” While owned by MCC, none of these abroad are yet full worker-owned coops. But neither are they sweatshops; they are very advanced production units with skilled workers.

Still, it is a contradiction, and MCC's aim is to eventually convert them all to cooperatives. But they have to move in accordance with the host country's laws and customs on the matter. Or simply make the decision to abandon proposed startup projects in that region to other regular capitalist firms.

How are his clients spread around? “Right now, we have 85 here in Spain, 30 in Mexico, 25 in France, six in China and 20 in Germany. For this kind of equipment, you don't get a large number of orders. Maybe 10 a year. But each one is worth millions, but only if we are successful! But keep in mind that for every two jobs we create globally on the outside, we also create one new job here inside MCC.”

As we left, many in our group were debating the pros and cons of global economic justice. I shared their concerns, but I also saw something else. Here were the beginnings of some of the most advanced productive forces in the world, the means of both economies of abundance and the means of clean and safe renewable energies and far lighter ecological footprints.

n any dynamic socialism of the 21st century, these young people and their creative efforts would be invaluable. I would want to shape their boundaries, but I would not want to stifle them or just send them off to work for the neoliberal globalists. We needed them with us.

As is the custom in this part of the world, our main meal was a long mid-day "lunch," really a dinner. We were driven higher up into the mountains on a winding road to an immense building that looked like a blockhouse or small fortress of stone. "When was it built?" someone asked. We checked the carvings, and translated. Around 1400 to 1500, before the time of Columbus. But now it was updated into long stone-walled dining rooms, with a conference center on the upper floors. Needless to say, lunch was exquisite and Basque cuisine deserves its reputation.

In our last session for the afternoon, Mikel gives us all a detailed technical talk about cooperative structures, how they can vary, and especially, how they are financed and governed.

“People are the core, not the capital. This is the main point,” he starts off. “If capital has the power, then labor is simply its tool. But if labor has the power, then capital is subordinate. It becomes our tool.”

This is part of Father Arizmendi's 10 principles, which he presented yesterday. “Labor is sovereign" is one of them. “This means one worker, one vote -- whether you have more money or less or anything else, it doesn't matter. You have an equal voice and the access to knowledge and transparent information.

“One journalist once said back in the 1970s that Father Arizmendi had created a progressive economic movement that was anchored in an educational institutions. When Arizmendi heard it, he said, 'No, its just the reverse. We are creating an educational movement for social change, but with anchors in economic institutions.'”

It's the whole of humanity that matters most.

[Carl Davidson is a national co-chair of the Committees of Correspondence for Democracy and Socialism, a national board member of Solidarity Economy Network, and a local Beaver County, PA member of Steelworkers Associates. His website is Keep on Keepin' On, where this series also appears. Davidson is also available to speak on the topic. Contact him at carld717@gmail.com. For more info on these tours, go here.]

Also see:The Rag Blog

[+/-] Read More...

Only a few posts now show on a page, due to Blogger pagination changes beyond our control.

Please click on 'Older Posts' to continue reading The Rag Blog.