More About Mondragón
Left: José María Arizmendiarrieta (1915-1976) provided the vision for – and was the driving force behind – the Mondragón Corporation, which is situated in the Basque Country. Centre: A female worker employed at the Mondragón Corporation headquarters building. Right: A male production worker at one of the many co-operatives that make up the Mondragón Corporation. Picture credits can be found under our article
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EARLY last month we looked at José María Arizmendiarrieta, who was the founder of the Mondragón Corporation (which is situated in the Basque Country).
He arrived in Mondragón in February 1941. Just two years later he established a technical school (now part of Mondragón University) to train young workers in skills like engineering. From here, in 1956, he encouraged five graduates to establish the first industrial co-operative in Mondragón.
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HUMBLE BEGINNINGS
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From these humble beginnings the Mondragón Corporation grew to become the largest worker co-operative network in the world.
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To this day, it’s still rooted in – and strictly adheres to – its core objectives. They include worker ownership, democratic governance, solidarity, and social responsibility. All this is done whilst competing globally in various sectors including industry, finance, retail & knowledge.
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The latest available statistics that we’ve come across (from 2024) are very impressive:
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- Employment: Over 70,000 workers worldwide (approximately 30,660 in the Basque Country, 29,340 in the rest of Spain, and nearly 10,000 abroad). Around 85% in core co-operatives are member-owners.
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- Sales/Revenue: €11.213 billion in 2024 (a 1.6% increase from 2023’s €11.056 billion).
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- Profitability: Net profit of €632 million. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) up 11.8% to €1.661 billion.
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- Investments: €377 million in 2024, contributing to €1.692 billion over the past five years.
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- Structure: The Mondragón Corporation is comprised of approximately 81 core co-operatives.
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The above statistics remind us of the well-known saying, ‘From little acorns, mighty oaks grow.’ As we’ve previously noted, the Mondragón Corporation grew from José María Arizmendiarrieta’s vision of a social economy based on co-operation.
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LEADING FORCE
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From very humble beginnings it’s grown to become Spain’s 10th-largest business group and a leading force in the Basque economy.
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It generates wealth through competitive enterprises in manufacturing (producing the likes of appliances, vehicle components & machine tools), retail (Eroski supermarkets), finance (Laboral Kutxa bank), and education/research (Mondragon University).
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Interestingly, the failure rate of co-operatives is very low (historically around 5%). And when co-operatives do fail, the workers tend to get new jobs very quickly.
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SOCIAL IMPACT
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It’s also interesting to look at the social impact of these co-operatives:
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- Worker Democracy and Equity: One-person-one-vote governance. Pay ratios are capped between 3:1 to 9:1 (with the average being 5-6:1). This is way below the typical corporate CEO-to-worker gaps. (Incredibly, this can be up to & over 300:1.)
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- Solidarity Mechanisms: Inter-cooperation funds support struggling co-ops. This minimises layoffs. The fund also provides internal relocation/unemployment benefits.
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- Community Commitment: There is an intense focus on job creation, education, and local development within the Basque Country. (It should also be noted that the Basque Country has lower than average unemployment than the rest of Spain.) Initiatives promote growth, talent attraction, and alliances for social transformation.
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- Sustainability and Innovation: Mondragón aligns with the UNs Sustainable Development Goals. This places emphasis on the circular economy, digitalisation, AI, and reducing any impact on the environment. Projects here include energy cooperatives, Research & Development in green tech, as well as commitments to health and local products. The Mondragón Corporation invests heavily in innovation (for instance, there are well over 2,000 R&D staff) and has launched initiatives like MONDRAGON Sostenible for sustainable transitions.
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With the above in mind, it’s probably safe to say that both José María Arizmendiarrieta and the Mondragón Corporation remain an inspiration to many people around the world.
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We National Liberals are deeply interested in alternative economic systems. And we’re fascinated by Mondragón in particular, as it’s a practical & visible example of where a co-operative benefits both the workforce & local community.
Picture Credits:
José María Arizmendiarrieta: https://revistacentinela.es/
Female worker: https://www.mondragon-
Date: January 5, 2026
Categories: Articles