Steelworkers to explore worker-owned Mondragon model

In case you missed it, in October the United Steelworkers of America signed an agreement with Spain’s Mondragon worker-owned cooperative industries to help the USW develop cooperatives in the United States. This initiative represents the best of traditions in American labor leadership and offers workers (white and blue collar) a constructive, practical remedy to the 30-year decline in manufacturing jobs and a path to economic security.

The Mondragon co-ops of Spain, employing 100,000 people, are widely recognized as the most successful in the world and compete head-to-head with private industries. Mondragon does so on a world-class scale from the building of sophisticated machine tools to managing banking, distribution and retail operations. Their nearly 60 years of experience is an example that workers collectively owning their own means to make a living is a realistic alternative to suffering the consequences of capitalist financiers’ games and corporate abuse and mismanagement.

In a press release announcing the agreement, USW president Leo Gerard put it succinctly: “Too often we have seen Wall Street hollow out companies by draining their cash and assets and hollowing out communities by shedding jobs and shuttering plants. We need a new business model that invests in workers and invests in communities.”

The USW release calls the agreement historic. I cannot agree more. Ideas matter. This idea is one labor has long needed on the bargaining table and in its member educational materials. Although struggles to regulate and reform capitalism can be fruitful, in the long run to build a more just, democratic society we also need ideas and experiences that mark a path for “outgrowing” capitalism.

Worker-owned cooperatives provide one such route. And they demonstrate that workers do not have to be at the mercy of capital for jobs, but instead can retain control of the value they produce and invest it to secure the well being of their communities and families. Thanks to the Steelworkers for pointing a way forward.

For more information, check out the URL’s listed below and the attached article from Dollars & Sense, a publisher of real world economic news and educational materials. This is the website where I first noticed the news of the USW initiative.

Wayne Nealis

p.s. For some years the USW and other unions have been promoting the building a system of world class high-speed passenger trains in America. I understand that the Obama Administration is considering a few lines that could receive funding. It may be possible that some of the first worker-owned co-ops could develop for building railway equipment, as Mondragon has considerable experience in making products for rail transport.

For further info please see:
United Steelworkers @ http://www.usw.org/media_center/releases_advisories?id=0234.

Mondragon @ http://www.mondragon-corporation.com/ENG.aspx.

Dollars and Sense: http://www.dollarsandsense.org/blog/2009/10/steelworkers-form-collaboration-with.html
And here is the rest of it.