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WORKER COOPERATIVE BUSINESS MODEL Based on the Mondragon Experience and others 1/25/2014The Employee Solution: Make a job, don't just get a job. 1.

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Presentation on theme: "WORKER COOPERATIVE BUSINESS MODEL Based on the Mondragon Experience and others 1/25/2014The Employee Solution: Make a job, don't just get a job. 1."— Presentation transcript:

1 WORKER COOPERATIVE BUSINESS MODEL Based on the Mondragon Experience and others 1/25/2014The Employee Solution: Make a job, don't just get a job. 1

2 Common Corporate Model 1/25/2014The Employee Solution: Make a job, don't just get a job. 2 < Corporate Heads < Middle Management < Workers Primary DIRECTION OF ACCOUNTABILITY STAKEHOLDERS

3 This system used to work because… The owners carry the weight of business expenses, decisions, and risks (liabilities) allowing workers to focus on specific tasks. The owners pay for employee benefits – medical, dental, time off, etc. The owners are looked up to for handling disputes and making things run smoothly. 1/25/2014The Employee Solution: Make a job, don't just get a job. 3

4 But the system is failing because… Business is getting too complex. Productivity is down There is less engagement at work Workers have trouble getting enough hours or enough wages. They are miserable and complain more. They are actively disengaging. Incentives arent motivating people as they once did. 1/25/2014The Employee Solution: Make a job, don't just get a job. 4

5 The battle between the two pillars of management Hard – Structures, processes, systems, metrics, etc. Soft – Feelings, interpersonal relationships, traits, etc. 1/25/2014The Employee Solution: Make a job, don't just get a job. 5 TEDTalk - Yves Morieux: As work gets more complex, 6 rules to simplify

6 Cannot be balanced when solutions… Require organizing for a competitive advantage… Cutting overhead while fulfilling new requirements Adding new systems, strategies, functions… Updating equipment and re-educating employees 1/25/2014The Employee Solution: Make a job, don't just get a job. 6 Which often takes precedence over… The interplay of how the systems fit together… Is the new process making it easier or harder on the workers? Can the work be done more efficiently and with less cost to the consumer as well as management?

7 Morieuxs solution… 1/25/2014The Employee Solution: Make a job, don't just get a job. 7

8 COOPERATE 1/25/2014The Employee Solution: Make a job, don't just get a job. 8

9 What did we hear earlier? No hierarchy means cooperation Democratically operated Decisions made by consensus Workers enjoy working And… Customers liked shopping there Stability of location Have medical/dental benefit packages 1/25/2014The Employee Solution: Make a job, don't just get a job. 9

10 What cooperatives have we seen so far? The Cheeseboard, Berkeley, CA Arizmendi Bakery, Berkeley, CA Rainbow Market, Berkeley, CA Inkworks Progressive Printing, Berkley, CA The Sleepless Goat Café, Kingston, Ontario, Canada Rebuilders Source, Green Worker Cooperatives, S. Bronx Your Local Market Co-op, Stratford, Ontario, Canada Others included: Irelands Cooperative Support Services, Gavin & Co. Accounting, Suma Wholefoods, JustBooks Collective, Dublin Community TV, Belfast Cleaning Society, Meitheal Mid West (promotes worker cooperatives in Limerick, IR); in San Francisco Other Avenues Food Store Co-op, Tech Collective, A Taste of Denmark Bakery; and in Oakland Mandela Foods Co-op 1/25/2014The Employee Solution: Make a job, don't just get a job. 10

11 Not all cooperatives are small Evergreen Cooperatives Evergreen Laundry – launched 2009 Evergreen Energy Solutions – Incorporated 2008 Green City Growers – officially opened on 2/25/2013 Mondragon Corporation 1/25/2014The Employee Solution: Make a job, don't just get a job. 11

12 Basque region of Spain Arrasate/Mondragón, Guipuscoa province 2007 pop. 22,112 1/25/2014The Employee Solution: Make a job, don't just get a job. 12 Mondragon Corporation

13 1/25/2014The Employee Solution: Make a job, don't just get a job. 13 Mondragon Corporation 1956 – Don José María Arizmendiarrieta founded Talleres Ulgor (FAGOR Electrodomésticos S. Coop.)

14 Ulgors first product: paraffin heaters Initial funding: local organizations & private investors 1/25/2014The Employee Solution: Make a job, don't just get a job. 14 Mondragon Corporation Town councils of Mondragón, Arechavaleta, Escoriaza and Oñate Provincial Savings Bank of Guipúzcoa Provincial Council Chamber of Commerce Ministry of Education local companies family men associates

15 Mondragon with FAGOR in center 1/25/2014The Employee Solution: Make a job, don't just get a job. 15

16 1/25/2014The Employee Solution: Make a job, don't just get a job. 16 Mondragon Corporation 12/2012 – 80,321 worker/owners in 289 companies and organizations Areas of finance, industry, retail and knowledge Talk about Empowerment!

17 Mondragon Model 1/25/2014The Employee Solution: Make a job, don't just get a job. 17 Built from top-down College Fagor – industrial Bank All others followed The supportive infrastructure became fertile ground for the growth of many autonomous cooperatives.

18 Worker Cooperative Structure Based on the Mondragon Model and others 1/25/2014The Employee Solution: Make a job, don't just get a job. 18 < Core & Basic Cooperative Principals SUPPORT MECHANISMS MARKETPLAC E ] worker- owners Business Direction & Market Adaptability Direction of Accountability is Organic

19 Mondragons Annual Congress 1/25/2014The Employee Solution: Make a job, don't just get a job. 19

20 Mondragon cooperatives operate in accordance with the Statement on the Co-operative Identity maintained by the International Co-operative Alliance. The ICA was founded in 1892, headquartered in Geneva, Switzerland. 1/25/2014The Employee Solution: Make a job, don't just get a job. 20 Mondragon Corporation

21 ICA Statement of Cooperative Identity 1/25/2014The Employee Solution: Make a job, don't just get a job. 21 A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise. Co-operatives are based on the values of self- help, self-responsibility, democracy, equality, equity and solidarity. In the tradition of their founders, co-operative members believe in the ethical values of honesty, openness, social responsibility and caring for others. 1. Voluntary and Open Membership 2. Democratic Member Control 3. Member Economic Participation 4. Autonomy and Independence 5. Education, Training and Information 6. Co-operation among Co-operatives 7. Concern for Community VALUES PRINCIPALS Definition __________________________________________________________________________________________________________

22 1/25/2014The Employee Solution: Make a job, don't just get a job. 22

23 Where would you rather work? Here? 1/25/2014The Employee Solution: Make a job, don't just get a job. 23 Or here?

24 1/25/2014The Employee Solution: Make a job, don't just get a job. 24

25 What type of businesses make good worker cooperatives? Accounting firms Antique stores Appliance stores Appraisers Architectural firms Art Galleries Auto repair Bakeries Banks Batting cages Bed & Breakfasts Beekeepers Bicycle shop Building supply stores Business supplies Butchers Car dealerships Car washes Carpentry shop Cemeteries Clothing store Computer repair Construction contractors Consultants firm Convenience stores Craft supply stores Cyber Cafe Dance studios Daycare centers Deli products Delivery services Drycleaners Entertainment agents Event Coordinators Farmers markets Feed stores Fish market Formal wear rentals Furniture stores Gas stations General stores Graphics and web design Grocery stores Groomers Gun shop Hotels Housecleaning business Housesitting services Insurance sales Jewelry stores Kitchenware stores Landscapers Laundromats Law firms Lending locations Medical & Dental care Miniature Golf Motels Network business Newspapers Nurseries Office rental services Office supplies Optometrist Painters Party rentals Pet stores Pharmacies Photographers Pottery stores Print shops Recycle-Upcycle shops Rental yards Repair shops Restaurants Retail stores Roof Installations Secretarial services Senior care assistance Shipping services Shoe stores Sign painters Sporting goods store Storage units Theatres Tile & Flooring stores Training centers Transportation services Travel agencies Trophy stores Warehouse rental 1/25/2014The Employee Solution: Make a job, don't just get a job. 25

26 BRAINSTORMI NG (work+shop) 1/25/2014The Employee Solution: Make a job, don't just get a job. 26

27 We want to fulfill Three Objectives 1. Create a team for the Foundation Support Group 2. Create new business ideas for our community 3. Create a team for our first conversion cooperative 1/25/2014The Employee Solution: Make a job, don't just get a job. 27

28 Part 1 – What businesses do we need here? Something you go off the hill to get? Something you think is missing here? Something you would love to do here? Maybe that venture youve always dreamed of and just havent gotten around to doing? Perhaps a complement or supplement to an existing business (raw materials, services)? 1/25/2014The Employee Solution: Make a job, don't just get a job. 28

29 Part 2 – Consolidate our ideas 1. Combine like businesses on a single large paper. 2. What type of business(es) could each group of interests become? Write it/them across the top of one half-sheet leaving ¾ of each section blank. (Categories and sub-catgories) 1/25/2014The Employee Solution: Make a job, don't just get a job. 29

30 2. Childrens Boutique Part 2 – Example 1. Auto Mechanic 1/25/2014The Employee Solution: Make a job, don't just get a job. 30

31 Part 3 – What abilities can you offer? Personal work experience? Your favorite pastime or hobby? A skill you want to learn or improve? Something you know others are doing and would like to build upon? Resources you have access to that could assist the community? 1/25/2014The Employee Solution: Make a job, don't just get a job. 31

32 2. Childrens Boutique Part 3 – Example 1. Auto Mechanic 1/25/2014The Employee Solution: Make a job, don't just get a job. 32 Jim Smith Keith Bowen Mark Thompson Joe Harding Karen Sharp Ella Stevens Mary Jennings Jennifer Teal

33 Keynote Talk Flavia Krieg 1/25/2014The Employee Solution: Make a job, don't just get a job. 33

34 Finally – Whats Next? 1. Well process the data youve compiled. 2. Well contact you individually and send you the contacts for those with like interests. 3. There is a follow-up gathering next Sat. Feb. 1, 10 AM, Little Red School House on Step #1 – Feasibility Studies. Well let you know more details when we contact you. 1/25/2014The Employee Solution: Make a job, don't just get a job. 34

35 Finally – Whats Next? MY FOCUS… Continue to promote Worker Cooperatives as a local economic solution. Foundational Support Group & Website (AnzaBusinessCenter.com) To provide speakers and resources for new worker cooperative start-ups and business conversions. 1/25/2014The Employee Solution: Make a job, don't just get a job. 35 To solicit interested and skilled workers to share in the conversion of my existing graphics and web design business.

36 Two quotes of Empowerment… 1/25/2014The Employee Solution: Make a job, don't just get a job. 36

37 Whatever the mind can conceive, and believe, the mind can achieve. Napoleon Hill 1/25/2014The Employee Solution: Make a job, don't just get a job. 37

38 …no heart has ever suffered when it goes in search of dreams, because every second of the search is a seconds encounter with God and with eternity. The Alchemist 1/25/2014The Employee Solution: Make a job, don't just get a job. 38


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