Mondragon picks up the pieces

Since I covered the news last Autumn of the business failure of Mondragon’s federated cooperative Fagor Electrodomésticos, I should probably give you an update – not least because of Mondragon’s iconic status in the coop world.

About 1000-1200 employees of Electrodomésticos were members of the cooperative, and the rest of the Mondragon family of coops is now trying to do what it can to find work for them elsewhere in the group, or to help provide them with favourable terms for early retirement.  According to the international producer coop federation Cicopa, a total of 417 ex-members of Electrodomésticos  are now re-employed in other coops in the group.

Electrodomésticos’s bankruptcy is the biggest test which Mondragon has had to face, but – contrary to what some media comments have suggested – it represents the failure of one particular business entity, and not the whole Mondragon initiative.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.