Ander Etxeberria is in charge of the Cooperative Expansion of the Mondragon Corporation. In this interview, Ander shows us how Mondragon is working in the face of the current social and economic crisis. Apart from that, it also explains the special features of the Mondragon Corporation.

Before the questions related to the crisis, we want to get to know Mondragon better. Can models like the Mondragon Corporation be found all over the world? What makes it special?

In terms of the industrial sector, Mondragon is the largest cooperative group in the world. The difference it makes to the second industrial cooperative group is staggering. Mondragon, together with industrial cooperatives, includes educational cooperatives (including MU University), credit cooperatives, consumer cooperatives, agricultural cooperatives, service cooperatives… We have a total of 97 cooperatives and, together with other companies around the world, 82,000 employees. It is the autonomous nature of cooperatives. We are together because we want to; because we are better that way. Each cooperative is owned by its members, each member has one vote, and the pay gap is relatively small between the employees who earn the least and the most. This feature set is unique in the world.
Hundreds and hundreds of people come to Mondragon every year; what they have heard, what they have been told, to see firsthand is true. Mondragon works, despite the contradictions (and not a few). And it has a positive impact on society. Upper Deba, with many co-operative companies, is one of the countries with the lowest economic disparities in the world.

How does a crisis of this kind affect a corporation, and specifically the Mondragon Corporation?
Many times the crises are sectoral and, if the corporation is made up of companies from different fields (which is our case), other businesses that are members of the corporation help to bear the brunt. The current crisis, and the previous one, however, is global and affects all businesses in one way or another. Thus, some of our companies are working with more jobs (distribution, agriculture, major care, cleaning, supply…), many others with less (automotive, among others) and there are also changes, with similar work activity (some plants abroad, especially ).

In your case, how did you deal with it?

In addition to setting up their own emergency committee for cooperatives, the Corporation’s services also launched a crisis cabinet from the outset to determine protocols, among other things, and to coordinate with public administrations.

In terms of activity, many cooperatives, in addition to their usual work, are involved in mitigating the effects of the crisis: the manufacture of protective visas, clothing and food donations, fundraising, the manufacture of respirator components, the initiative to find solutions to the virus crisis for young people. we also have supply channels that we have (especially to bring products from China). It is also worth noting that we are making machines for the manufacture of masks.
In terms of the way the work is carried out, safety measures must be taken strictly: UN, distances, agreed procedures for special situations… In some cases (for health reasons or conciliation problems, for example) the formula is telework.

Any other features?

Yes. We have the resources to support group companies at the corporate level. The so-called employment support benefit from LagunAro EPSV is basic. In this sense, we have set up a mobile calendar tailored to this crisis at the beginning of the crisis: now if the hours of working partners are lost, they can join later and, if not possible, Lagun Aro will compensate them to some extent. Instead of a membership contract, we have established a temporary employment regulation dossier with employees with an employment contract.

On the other hand, in the case of cooperatives for extreme cases, the Corporation's funds (funds provided by the cooperatives) could be used as loans and guarantees.

Also, to deal with the crisis, several cooperatives have already decided to lower their salaries / advances (the payment we receive every month, which is linked to the annual results).

Finally, one of the songs we did for the Humanity At Music project last year, Recordamur vos, we sang from home (and recorded a video) to pay tribute to the victims of the pandemic. Gratitude and artistic expression must also have their place.

Does this health and economic crisis have a different impact on a corporation or cooperative compared to a private company?

As employees and owners of the cooperative at the same time, it is easier for us all to share the same vision and take action with that in mind. It’s natural in a cooperative to understand that we’re all in the same boat. Communication is very important in this, even in a situation where uncertainty prevails. The richer the contact between the bodies (especially the board of directors, the board of directors and the social council) and the rest of the staff, the better. In the same way, the information we send from common services to cooperatives is continuous, for example through newsletters.

On the other hand, as a group, we have the measures mentioned in the previous point to alleviate the crisis.
What are the advantages and disadvantages of this corporation compared to other companies in this situation?
I only see the advantages of being Mondragon. In general, although the survival of companies in the world is not high, in our Corporation there are several cooperatives that are over thirty years old. Why? Because they have made progress with the support of the team.

The corporation brings together years of knowledge to learn how to deal with serious situations. The measures applied in other crises (good practices and economic measures) show us where and how we can go. And, in any case, we have in mind what the founder of the Mondragón Cooperative Experience, Arizmendiarrieta, said: even if the moment is hard and full of doubts, “always forward!”.

How do you think there will be a recovery-recovery in your case?

The recovery will come not with the V shape that was initially said, but also with the U shape. We think that here and there we will get used to the new normalcy as the deconstruction takes place, the spirit will gradually increase, we will start to see things in a different way and that (too) will be contaminated. In any case, and realizing that those who suffer the most from the crisis are the poorest countries and groups, the dynamics of the Sustainable Development Goals that have been sidelined for weeks will once again take place.

Do you think a new way of working will emerge after this?

Yes, probably not all the changes that are said to be in the whirlwind of the crisis will come because we will take a measure of the risk of the virus. We will reach a new balance, where there will be behaviors such as staying at home if there is a sign of the flu, hygiene-related behaviors (use of gel and mask, disinfection of places), procedures that can reduce the presence in the workplace, customers, students, suppliers and others. video conferencing with agents will become more common, we will use more online training…

Now, for example, we need to provide an answer to a specific issue in all cooperatives: how to hold annual General Assemblies in cooperatives. We are about to add online systems.

Have the challenges for the future of the Mondragon Corporation changed as a result?

All the cooperatives in Mondragon will hold their annual meeting, the Congress, in July, as we had planned. The challenges we will be voting on this year (some sort of Strategic Plan for the coming years) are months that we have been working on and maintaining. These include attracting and developing digital transformation and talent in line with the Sustainable Development Goals.

How does the Mondragon Corporation deal with digital transformation?

As mentioned, it is a strategic axis leading to the Mondragon Congress. In each cooperative we want to make a diagnosis based on a transformation plan that will take into account several components: automation, predictive maintenance, data analysis to make decisions or provide new services ... In total, we aim to create new activities and new jobs.

Of course, all of this will require new skills. As a result, we need to increase training at all levels and also attract talent.