Willy Robinson, iNova Credit Union November, 2005

Willy Robinson, iNova Credit Union November, 2005

Sales and Assets—Caja Laboral

010002000300040005000600070008000900010000

1983 1993 2002 2003

Sales(MofEuro)Assets-Caja

Willy Robinson, iNova Credit Union November, 2005

Jobs 1983-2004

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

1983 1993 1998 2004

Jobs

Willy Robinson, iNova Credit Union November, 2005

Basque Flag

Willy Robinson, iNova Credit Union November, 2005

José María Arizmendiarrieta

Willy Robinson, iNova Credit Union November, 2005

José María Arizmendiarrieta

“Despite being an unverifiable hypothesis, all of us at MCC share the firm conviction that without his (Jose Maria’s ) influence, the so-called Mondragón co-operatives would never have been formed.”

Willy Robinson, iNova Credit Union November, 2005

1943— Set-up Polytechnic School

1956—set-up Ulgor 2005—Spain’s 7th largest corporation

MONDRAGON

Willy Robinson, iNova Credit Union November, 2005

"To build cooperativism is not to do the opposite of capitalism as if this system did not have any useful features... Cooperativism must surpass it, and for this purpose must assimilate its methods and dynamism.“José María Arizmendiarrieta

Willy Robinson, iNova Credit Union November, 2005

Ten Basic Principles

1. Open membership2. Democratic organization3. Worker sovereignty4. Instrumental or subordinate

nature of capital5. Participation of management

Willy Robinson, iNova Credit Union November, 2005

Ten Basic Principles (cont’d) 6. Wage solidarity 7. Co-operation between co-ops 8. Social transformation 9. Universal nature10. Education

Willy Robinson, iNova Credit Union November, 2005

Employee PictureEmployee capital account• One times salary• Adjust CPI• BonusesEmployee remuneration• Fair wage and 80%-110% of pay• 7.5% on average interest on investmentParticipation• Training and Social Council

Willy Robinson, iNova Credit Union November, 2005

Organizational Structure

Willy Robinson, iNova Credit Union November, 2005

Pre-profit Allocation

• 15-40% to sectoral group• 10% investment in MCC• 2% education fund• 2% losses fund for group• 21% corporate taxes

Willy Robinson, iNova Credit Union November, 2005

Profit Allocation

• 10% Basque government for education• 45% retained in co-operative• 45% to employees capital account

Willy Robinson, iNova Credit Union November, 2005

Education

• Mondragón university– Engineering– Management– Teaching

• Otalora• Alecop

Willy Robinson, iNova Credit Union November, 2005

Innovation

• Saiolan• Ikerlan• Garaia Innovation Center

Willy Robinson, iNova Credit Union November, 2005

Financial Group

Includes banking, social welfare, insurance and leasing businesses.

• Bank—Caja Laboral• Lagun-Aro

Willy Robinson, iNova Credit Union November, 2005

Recap

• Build a network• Put employees needs foremost• Design a structure for MCC• Promote education and innovation• Share best practices

What Else

???

Willy Robinson, iNova Credit Union November, 2005

“equilibrio”

focus

Workers’ Futures

Willy Robinson, iNova Credit Union November, 2005

“The present, however splendid it may be, bears the seeds of its own ruin if it becomes separated from the future.“

José María Arizmendiarrieta

Willy Robinson, iNova Credit Union November, 2005

Outlook for the Future

• Size and scope-to address market needs• Change to dual personality• Collaboration agreements• Distributing wealth through knowledge• Generation of employment TOP priority

People and Products

Willy Robinson, iNova Credit Union November, 2005

"Those who opt to make history and change the course of events themselves have the advantage over those who decide to wait passively for the results of the

change.”

José María Arizmendiarrieta

Willy Robinson, iNova Credit Union November, 2005

???