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"I only see advantages in being Mondragón"

Ander Etxeberria is responsible for the Cooperative Dissemination area of Mondragón Corporation. In this interview, Ander explains how Mondragon is working before this social and economic crisis. However, apart from this, it also tells us about the special characteristics of Mondragón Corporation.

Before the crisis-related questions, to position ourselves, we want to know Mondragon better. Is there an example in the world similar to the Mondragón Corporation? What makes it special?

As for the industrial sector, Mondragon is the largest cooperative group in the world. The second industrial cooperative group is at a huge distance. Together with industrial cooperatives, education cooperatives (including MU university), credit, consumption, agriculture, services, are part of Mondragon... In total, we are 97 cooperatives and, adding up the other companies that we have all over the world, 82,000 people working. Cooperatives are self-employed. We are together because we want to; because that's how we're better. The members own their cooperative, each member has one vote and the pay difference between the least earner and the one who earns the most is relatively small. This feature set is unique in the world.

Hundreds and hundreds of people come every year to meet Mondragon; to see in situ that what they have heard, what they have been told, is true. Mondragon works, despite its contradictions (which are not few). And it has a positive impact on society. For example, the Debagoiena region, where many cooperative enterprises are located, is one of the areas in the world with the lowest economic inequality.

How does such a crisis affect a corporation, and in particular the Mondragón Corporation?
In many cases the crises are sectoral and, if the corporation is made up of companies from different fields (as is the case), the other businesses that are part of the corporation contribute to alleviate the blow. The current, and the previous, however, crisis is global and affects all businesses in one way or another. Thus, some of our companies have more workload (distribution, agriculture, care for adults, cleaning, sourcing...), in many others has declined (automotive, among others) and we also have companies that, with some changes, maintain a similar activity (some plants abroad, above all).

In your case, how have you coped with the crisis?
Just as cooperatives constituted its emergency committee, the Corporation's services launched from the outset a crisis cabinet to, inter alia, define protocols and be in coordination with public administrations.

As for the activity, many cooperatives, beyond their usual work, are spending time mitigating the effects of the crisis: manufacturing protective visors, donating food and clothing, collecting funds, manufacturing components for respirators, initiative aimed at young people to seek solutions to the crisis, manufacture of aprons for health... In turn, we have made available to the authorities the supply channels we have (especially to bring products from China). It is also worth noting that we are building machines to make masks.

As for how to carry out the work, it should be carried out with strict safety measures: EPIs, distancing, agreed procedures for specific situations... In some cases (for health or conciliation reasons, for example) the formula is telework.

Other features?
Yes. At the corporate level we have resources to help the Group's companies. The so-called employment aid benefit by LagunAro EPSV is essential. Within it, we have launched from the beginning of the crisis the mobile calendar modality adapted specifically for this crisis: the hours that work partners now cannot work remains when the burden increases later and, if not possible, Lagun Aro would compensate them within a margin. In the case of workers with employment contracts, and not a company contract, the figure in the temporary employment regulation dossier is being applied.On the other hand, for extreme cases, the Corporation's funds (nurtured by cooperatives) could be used in the form of loans and guarantees.

In addition, in order to deal with the crisis, several cooperatives have already decided to lower wages/advances (the monthly payment we receive and which is linked to the annual results).

Finally, one of the songs we did last year for the Humanity At Music project, Rememberamur vos, we have sung it (and recorded a video) from home to honor the victims of the pandemic. Recognition and artistic expression must also have its place.

Does this health and economic crisis have a different impact on a corporation or cooperative relative to a private company?
As workers and owners of the cooperative at the same time, it is easier to share the same vision and take action in line with it. In the cooperative it is natural to understand that we all go in the same boat. Communication plays a very important role in this, especially in a situation of great uncertainty. The richer the contact between the bodies (especially the governing council, the steering committee and the social council) and the rest of the people, the better. Likewise, the information we channel from common services to cooperatives through, for example, newsletters is constant.

On the other hand, as a group, we have the measures mentioned in the previous point to cushion the crisis.

What advantages and disadvantages does this Corporation have in this situation compared to other companies?

All I see is advantages in being Mondragón. While business survival in the world is generally not high, in our Corporation a good number of cooperatives are over thirty years old. Why? Because with the help of the Group they have been able to move on.

The Corporation accumulates years of knowledge about how to deal with serious situations. Measures applied in other crises (both good practices and economic measures) show us how and where to act. And, in any case, we are mindful of what Arizmendiarrieta, the creator of the Mondragón Cooperative Experience, said: no matter how uncertain or adverse the moment is, "beti aurrera!".

How do you think recovery will be in your case?
The recovery will not come in the form of V, as was initially said, but also in the form of U. We believe that as the decon confinement takes place we will get used to the new normal; gradually the mood will increase, we will start to see things differently and that (also) will catch. In any case, and aware that the poorest countries and groups are the ones most affecting the crisis, the dynamics of the Sustainable Development Goals that have been set aside in the weeks will be back in full.

Do you think that after this a new way of working will emerge?
Yes, surely not all the changes that are being discussed in the whirlwind of the crisis will materialize, since we will face the risk of the virus and we will reach a new balance where there will be practices such as: staying at home when there are signs of flu, hygiene-related behaviors (use of gel and masks, disinfection of places...), procedures will be devised to reduce the presence nearby in the workplaces , it will be more common the relationship by videoconference with customers, students, suppliers and other agents, we will use more online training...

At the moment, for example, we need to respond in all cooperatives to a specific topic: how to hold the annual General Assembly in each cooperative. We'll probably include systems online.

Have the future challenges of the Mondragón Corporation changed as a result?
The Congress, which is the annual meeting of the Mondragon cooperatives, will be held in July as planned. The challenges we are going to vote on this year (in a way the Strategic Plan for the coming years), and which we have been working on for months, have been maintaining them. These include sustainability in the line of the Sustainable Development Goals, digital transformation and attracting and developing talent.

How does the Mondragon Corporation cope with digital transformation?
As I mentioned, this is a strategic axis that is presented to the Congress of Mondragón. We want to make a diagnosis in each cooperative and build on it to develop a transformation plan that takes into account different elements: automation, predictive maintenance, data analysis for decision making or provision of new services... All in all, the goal is to create new activities and new jobs.

Of course, all this will require us to have new skills. As a result, we must enhance training at all levels in addition to attracting talent.

Apart from the crisis, what will a person find when he starts working at the Mondragón Corporation?

In the companies of Mondragón we have demanding jobs, equipped with state-of-the-art technology and with the proximity of people who know a lot. The person who joins cooperatives will also find a peculiarity: we do not work to enrich a few, but to enrich the whole (society). In fact, thanks, for example, to the relatively narrow pay gap mentioned above, cooperatives contribute to the development of a less unequal society.

We understand that companies not only have an economic aspect, they are located in a society of which they must be a part. At the Mondragon Corporation we have been working on this path for years and years, which gives us special satisfaction.

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