Mondragon Corporation: A Federation of Worker Cooperatives
Mondragon Corporation – a federation of co-operatives
Founded in 1956 by Father José María Arizmendiarrieta, the Mondragon Corporation has grown into a massive federation of worker cooperatives in the Basque Country. With over 70,000 employees and billions in revenue, it operates across finance, industry, retail, and knowledge sectors. The organization balances global expansion with a unique humanist philosophy, enforcing strict wage ratios between executives and workers while navigating challenges like the Fagor bankruptcy and the recent departure of major subsidiaries.
At Mondragon, there are agreed-upon wage ratios between executive work and field or factory work which earns a minimum wage. These ratios range from 3:1 to 9:1 in different cooperatives and average 5:1.