The most evident demonstration of solidarity of Mondragon worker-members is contained in the principle of Social Transformation. Pursuing social and economic justice as well as solidarity with the community, Mondragon endeavors first and foremost to create jobs. In fact, the creation of employment is one of the main stated objectives of Mondragon. (p. 9)
The appendix lists the 10 basic principles of Mondragon, quoted in turn from
J M Ormaechea (1993).
1. Open Admission
Mondragon is open to all persons who are capable of carrying out the available jobs. There is no discrimination based on religious or political grounds, nor due to race, gender, age, or socio-economic levels. The only requirement is the acceptance of these Basic Principles.
2. Democratic Organisation
Workers are owners, and owners are workers. Each cooperative is managed by a system of “one person-one vote.”
3. Sovereignty of Employee’s Work Over Capital
Workers join Mondragon and become owners after making a capital contribution at the end of a trial period. All workers are entitled to an equitable distribution of profits. The return on saved or invested capital is just but limited, and it is not tied up to the surpluses or losses of the cooperatives.
4. Subordinate Character of Capital
Capital is a means to an end, not an end in itself. Available capital is used primarily to create more jobs.
5. Participatory Management
Worker-owners participate in decision-making and the management of the cooperatives. This implies development of self-management skills. Formal education and adequate information is provided to improve worker-owners’ ability to participate competently in decision-making.
6. Payment Solidarity
Remuneration is regulated internally and externally. Internally, an agreed differential between the highest and lowest paid job is applied. Externally, a remuneration level is maintained in relationship with similar local industries.
7. Interco-operation
Cooperatives form Groups to pool profits, to absorb worker-owner transfers when necessary, and to attain synergies.
These Groups associate with each other to support corporate institutions. Mondragon associates with other Basque cooperative organisations to promote the cooperative model.
8. Social Transformation
Mondragon cooperatives invest a majority of their profits in the creation of new jobs. Funds are also used in community projects and in institutions that promote the Basque culture and language.
9. Universal Nature
Mondragon proclaims its solidarity with other cooperative movements, with those working for economic democracy and with those who champion the objectives of peace, justice and human dignity. Mondragon proclaims its solidarity especially with people in developing countries.
10. Education
Mondragon cooperatives commit the required human and economic resources to basic, professional and cooperative education in order to have worker-owners capable of applying all basic principles mentioned above.