What Does Mondragon Teach Us About Workplace Democracy?

Abstract

Purpose

The Mondragon cooperatives are the most thoroughly studied and well-known example of worker cooperatives in the world. Yet while there has been much discussion and wide recognition of the empirical growth of the Mondragon co-ops, there is substantial confusion about the lessons we can draw from this case in thinking about workplace democracy more broadly.

Design/methodology/approach

The normative and empirical literature on Mondragon is carefully analyzed to draw out the main implications from this case study for the broader issue of workplace democracy.

Findings

I contend that Mondragon teaches us two main lessons. First, that workplace democracy can indeed operate in a way that is economically sustainable and socially superior to conventional firms. Second, Mondragon sheds light on the question of whether co-ops are doomed to degenerate.

Research limitations/implications

This paper advances our understanding and conceptualization of workplace democracy.

Practical implications

This paper provides practitioners with an up-to-date and comprehensive analysis of the world’s most successful cooperative network.

Social implications

This paper provides insight into the practical feasibility and normative desirability of alternative organizations of workplaces in the form of worker cooperatives.

Originality/value

This paper will be of particular interest to scholars and activists interested in democratic alternatives to conventional hierarchical firms by illustrating the strengths and weaknesses of the Mondragon cooperatives and drawing out the lessons that this specific yet influential example has for issues of workplace democracy more broadly.

Citation

Malleson, T. (2013), "What Does Mondragon Teach Us About Workplace Democracy?", Sharing Ownership, Profits, and Decision-Making in the 21st Century (Advances in the Economic Analysis of Participatory & Labor-Managed Firms, Vol. 14), Emerald Group Publishing Limited, Leeds, pp. 127-157. https://doi.org/10.1108/S0885-3339(2013)0000014007