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The Employee Solution: Make a job, don't just get a job.
WORKER COOPERATIVE
BUSINESS MODEL
Based on the Mondragon Experience and others
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The Employee Solution: Make a job, don't just get a job.
Common Corporate Model
STAKEHOLDERS
< Corporate Heads
< Middle Management
< Workers
Primary
DIRECTION OF ACCOUNTABILITY
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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.
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The Employee Solution: Make a job, don't just get a job.
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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 aren’t motivating people as they
once did.
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TEDTalk - Yves Morieux: As work gets more complex,
6 rules to simplify http://bit.ly/1eFHbJv
The battle between the two pillars of
management
• Hard – Structures, processes, systems,
metrics, etc.
• Soft – Feelings, interpersonal relationships,
traits, etc.
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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
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?
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The Employee Solution: Make a job, don't just get a job.
Morieux’s solution…
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The Employee Solution: Make a job, don't just get a job.
COOPERATE
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The Employee Solution: Make a job, don't just get a job.
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
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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: Ireland’s 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
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Not all cooperatives are small
• Evergreen Cooperatives
http://evergreencooperatives.com/
• Evergreen Laundry – launched 2009
• Evergreen Energy Solutions – Incorporated 2008
• Green City Growers – officially opened on 2/25/2013
• Mondragon Corporation
http://www.mondragon-corporation.com/eng/
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The Employee Solution: Make a job, don't just get a job.
Mondragon Corporation
• Basque region of Spain
• Arrasate/Mondragón, Guipuscoa province
• 2007 pop. 22,112
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The Employee Solution: Make a job, don't just get a job.
Mondragon Corporation
1956 – Don José María Arizmendiarrieta
founded Talleres Ulgor
(FAGOR Electrodomésticos S. Coop.)
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Mondragon Corporation
Ulgor’s first product: paraffin heaters
Initial funding: local organizations & private investors
• 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
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Mondragon with FAGOR in center
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Mondragon Corporation
12/2012 – 80,321 worker/owners in 289 companies and organizations
Talk about
Empowerment!
Areas of finance, industry, retail and knowledge
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The Employee Solution: Make a job, don't just get a job.
Mondragon Model
Built from top-down
• College
• Fagor – industrial
• Bank
• All others followed
The supportive
infrastructure became
fertile ground for the
growth of many autonomous
cooperatives.
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Worker Cooperative Structure
Based on the Mondragon Model and others
MARKETPLACE
Business Direction & Market Adaptability
] worker-owners
Direction of Accountability is Organic
< Core & Basic Cooperative Principals
SUPPORT MECHANISMS
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Mondragon’s Annual Congress
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Mondragon Corporation
• 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.
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ICA Statement of Cooperative Identity
VALUES
Definition
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 selfhelp, 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.
PRINCIPALS
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
__________________________________________________________________________________________________________
http://ica.coop/en/what-co-op/co-operative-identity-values-principles
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Where would you rather work?
Here?
Or here?
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What type of businesses make good
worker cooperatives?
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Accounting firms
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Antique stores
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Appliance stores
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Appraisers
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Architectural firms
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Art Galleries
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Auto repair
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Bakeries
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Banks
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Batting cages
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Bed & Breakfasts
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Beekeepers
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Bicycle shop
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Building supply stores •
Business supplies
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Butchers
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Car dealerships
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Car washes
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Carpentry shop
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Cemeteries
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Clothing store
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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
Farmer’s markets
Feed stores
Fish market
Formal wear rentals
Furniture stores
Gas stations
General stores
Graphics and web
design
Grocery stores
Groomers
Gun shop
• Hotels
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Housecleaning business •
Housesitting services
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Insurance sales
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Jewelry stores
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Kitchenware stores
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Landscapers
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Laundromats
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Law firms
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Lending locations
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Medical & Dental care •
Miniature Golf
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Motels
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Network business
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Newspapers
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Nurseries
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Office rental services
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Office supplies
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Optometrist
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Painters
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Party rentals
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Pet stores
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Pharmacies
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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
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BRAINSTORMING
(work+shop)
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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
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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 you’ve always
dreamed of and just haven’t gotten around
to doing?
• Perhaps a complement or supplement to
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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)
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Part 2 – Example
1. Auto Mechanic
2. Children’s Boutique
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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?
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Part 3 – Example
1. Auto Mechanic
Jim Smith
Keith Bowen
Mark Thompson
Joe Harding
2. Children’s Boutique
Karen Sharp
Ella Stevens
Mary
Jennings
Jennifer Teal
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Keynote Talk
Flavia Krieg
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Finally – What’s Next?
1. We’ll process the data you’ve compiled.
2. We’ll 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. We’ll let
you know more details when we contact
you.
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Finally – What’s 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.
To solicit interested and skilled
workers to share in the conversion
of my existing graphics and web
design business.
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Two quotes of Empowerment…
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“Whatever the mind can conceive,
and believe,
the mind can achieve.”
Napoleon Hill
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“…no heart has ever suffered
when it goes in search of dreams,
because every second of the search
is a second’s encounter
with God and with eternity.”
The Alchemist