Posted 4 years ago on Jan. 29, 2012, 3:43 p.m. EST by abin22
This content is user submitted and not an official statement
Democratic economics is not socialism.The workers at the Mondragon Co-operative Corporation, make equal salaries according to their services and time. They split the dividends every 15 years equaly. It is a capitalist system based on worker ownership and democratically controlled capitalism. Our system we have now is failing. The financial institutions in the world have been bailed out by the taxpayer,the workers. Yet the M.C.C. is growing right now not failing. Mondragon has 120 different companies, 42,000 worker-owners, 43 schools, one college, does more than 4.8 billion dollars of business annually in manufacturing, services, retail and wholesale distribution, administers more than $5 billion in financial assets. In 1941, a bishop sent a young priest to teach in a vocational school in Spain's "Basque Country." In addition to the technical curriculum, young Father Jose Maria Arizmediarrieta taught the social doctrine of the Catholic Church to his students. Some of the students began a small cooperative that built kerosene stoves. In 1959, they started what we would today call a credit union. Today, the associated Mondragon Cooperatives manufacture automobile parts, electronic components, valves, taps, appliances. They have a full line of retail outlets (small & large) offering consumer products, food, appliances, and a wholesale food business catering to restaurants. Their bank has more than 100 branches, they offer a full range of insurance, and take care of their own social security and health insurance programs. They are not only holding their own within the "globalizing" economy, they are expanding. This principle is an evident truth, the priority of labor over capital, that emerges thru the whole of man's history. This is one of the success stories of people who take social doctrine seriously, in particular, the teachings regarding (1) the dignity of the human person and his or her labor, (2) social solidarity, (3) the primacy of labor over capital. In most for profit businesses, labor is hired at the service of capital. For the Mondragon cooperatives, capital is something they rent to benefit the worker-owners. To Americans, this sounds like an Employee Stock Ownership Plan, but the Mondragon model is not only about distribution of the profits, it is also about the control of the business. Management is elected by the workers, not hired by the money men, and the managers are part of the cooperative process in the enterprise. Each enterprise has a social committee that considers issues of health, safety, environment, and the social responsibilities of the enterprise. Capital is borrowed, stock is not sold for financing. All new employees become worker owners. A new cooperative begins with a group of friends. Experience in starting 120 businesses over a 40 year period has taught the Mondragon cooperators that the pre-existing bonds of friendship are a good basis for building a productive working relationship. The Mondragon association provides business and marketing research and assistance; their bank provides capital. The workers themselves must invest some of their own money, either as an upfront contribution or as deductions from wages paid over a 2 year period (about $5,000). Their bank sticks with the new co-op until they can go it alone; if the business gets into trouble, interest on their loans is waived, payments may be suspended, and parts of the loans may be forgiven. The group may be assisted into another line of business or work. As a result, since 1956, they have had only one total failure of a cooperative. Put that against the system we have in place today. Acorrding to the Mondragon history co-operation is more succesfull than competion.This system creates job security as well as capital security. Remember it is still a capialist sytem. Just based on employee ownership with democratic control.
Check out my Workers Bill of Rights based on the Mondragon system.
http://www.facebook.com/groups/371547969526901/doc/371550456193319/ Join myn group to show your support of this bill.