The Worker Co-Operative Movements in Italy, Mondragon and France: Context, Success Factors and Lessons

[pic]
Canadian Worker Cooperative Federation
Fédération Canadienne des Coopératives de Travail

The Worker Co-operative Movements in Italy, Mondragon and France:

Context, Success Factors and Lessons

By Hazel Corcoran and David Wilson
Canadian Worker Co-operative Federation

May 31, 2010

Funding for the research and drafting of this paper was generously provided by the Canadian Social Economy Research Partnerships, based at the University of Victoria and supported by the Social Sciences and Humanities Research Council.
The Worker Co-operative Movements in Italy, Mondragon and France:
Context, Success Factors and Lessons

By Hazel Corcoran and David Wilson

Abstract

The objective of this paper is to analyze the public policy environment, capitalization environment, availability of federation support, and the context for the worker co-op movements in each of Italy, Mondragon (Spain) and France. These three countries or regions have the largest, most dynamic worker co-op movements in the world. To grow a large worker co-op movement, a system of supports is required to enable the transfer of appropriate knowledge to many people, in addition to having access to worker coop-friendly sources of capital. Although there were some success factors in each region which could not be easily replicated in other places and although there were significant differences among regions, there were many common elements contributing to the success of the worker co-op movement in all three places. These were: (1) sufficient capital accessible to worker co-ops; (2) technical assistance provided to worker co-ops in the start-up phase; (3) a mandatory indivisible reserve, at least for those “mostly mutual” worker co-ops which were able to receive government support; (4) significant federation and consortia structures which support, guide, direct, and help educate the worker co-operatives; (5) significant concentrations by industry; (6) a

Bibliography: Adeler, M.A. (2009). Enabling Policy Environments for Co-operative Development: A Comparative Experience. Social Eonomy Hub. Antoni, Antoine. (1980). La Coopération Ouvrière de production. CG Scop. Arteau, M. (1994). Rapport de la mission d’exploration réalisée en France. FQCT. Unpublished. Bradley, K. and Gelb, A. (1981). The Mondgragon Experiment. British Journal of Industrial Relations, 19(2), 211-31. Bradley, K. and Gelb, A. (1982). The Replication and Sustainability of the Mondragon Experiment. British Journal of Industrial Relations, 20(1), 20-33. Chomel, A. (1994). The Evolution of Co-operative Thought in France. International Co-operative Information Center. Retrieved from: www.uwcc.wisc.edu/icic/orgs/ica/pubs/review/vol-88/france.html CICOPA Clamp, C.A. (2000). The Internationalization of Mondragon. Annuals of Public and Cooperative Economics, 71(4), 557-577. Cote, D. and Vezina, M. (2001). The Co-operative Movement: European Experiences. In Restakis, J. and Lindquist, A (Eds.), The Co-op Alternative: Civil Society and the Future of Public Services. Toronto: The Institute of Public Administration Canada. Defourney, J. (1983). Le Renouveau des coopératives de travailleurs: une analyse économique. Work and Social Change. Centre européen, Maastricht. Ellerman, D. (1984). The Mondragon Cooperative Movement. Boston: Harvard Business School, Case No.1-384-270. Errasti, A.M., Mari, A., Heras, I., Bakaikoa, B., and Elgoibar, P. (2003). The Internationalisation of Cooperatives: The Case of the Mondragon Cooperative Corporation. Annals of Public and Cooperative Economic, 74(4), 553-584. Espagne, F. (1996). Histoire, problemes et projets de la cooperation ouvriere de production en France. Retrieved from: www.scop.coop/p978_FR.htm Espagne, F Flessati, Dominic. (1980). The Mondragon Experiment. BBC - Television. Fici, A. (2009). The New Italian Co-operative Law and Co-operative Principles, pp.6-7. Co-operative Legislation and Public Policy Symposium at St. Mary’s University. Retrieved from: www.smu.ca/academic/sobey/mm/policysymposium.html Freundlich, F Gutierrez-Johnson, A. and Whyte, W.F. (1977). The Mondragón System of Worker Production Cooperatives. Industrial and Labor Relations Review, 31(1). Herrera, D. (2004). Mondragon: A For-Profit Organization That Embodies Catholic Social Thought. Review of Business, 25. Kelly, G. and Massena, S. (2009, June). Mondragon Co-operatives Decide How to Ride out a Downturn, Yes! Magazine. Retrieved from: www.yesmagazine.org/issues/the-new-economy/mondragon-worker-cooperatives-decide-how-to-ride-out-a-downturn Labelle, Luc Lappe, F.M. (2006). The Sweet Taste of Success. Democracy’s Edge. Retrieved from: http://www.democracysedge.org/action-success.php Lasne, L Lenancker, P. (2010, April 4). La France peut garder ses PME industrielles. Le Monde. Retrieved from: www.lemonde.fr/opinions/article/2010/04/19/la-france-peut-garder-ses-pme-industrielles-par-patrick-lenancker_1336507_3232.html Logue, J Mazzonis, D. (1996). “The Changing Role of ERVET in Emilia-Romagna.” Chapter 7 in Local and Regional Response to Global Pressure: The Case of Italy and Its Industrial Districts, ed. Mungall, C. (1986). More Than Just A Job: Worker Cooperatives in Canada. Ottawa: Steel Rail. Pérotin, V. A. (1997): What Makes Coops Work? Institutional Viability, Firm Creation, Survival and Closure Among Workers ' Cooperatives in France. Ph.D. dissertation, Department of Economics, Cornell University. Putnam, R. (2000). Bowling Alone: the Collapse and Revival of American Community. New York: Simon & Schuster. Restakis, J. and Filip, O. (2008). Enabling Policy for Health and Social Co-ops in BC. Retrieved from: http://auspace.athabascau.ca:8080/dspace/bitstream/2149/1960/1/BALTA%20A2%20-%20Enabling%20Health%20Co-ops%20Report%20-%20Final.pdf Richleycase, B Sibille, H. (1982). Les coopératives ouvrières de production en France et dans la CEE, La Documentation française. Thompson, D. (2005). Building the Future: Change, challenge, capital, and clusters at Italy’s market leader. Retrieved from: www.cooperativegrocer.coop/articles/index.php?id=623 Webb, T Whyte, W.F. (1995). Learning from the Mondragon Cooperative Experience.William. Studies in Comparative International Development, 30(2), 58-67. Yalnizyan, Armine. (2010). The Temporary Recovery. Canadian Centre for Policy Alternatives. Retrieved from: www.policyalternatives.ca/publications/commentary/temporary-recovery ----------------------- [1] Labelle, Luc. (1999). Development of Cooperatives and Employee Ownership, Quebec Style. Retrieved from: http://cog.kent.edu/lib/Labelle.htm [2] Interview on January 25, 2010 with Bruno Roelants, General Secretary, CICOPA. [3] Interview on January 25, 2010 with Bruno Roelants, General Secretary, CICOPA.