Power & Practice: The Mondragon Principles

Over the past seven months, we've explored the International Cooperative Alliance (ICA) principles that guide cooperatives worldwide. These foundational principles—from voluntary membership to concern for community—have helped us understand the broader cooperative movement. Now, we're excited to dive deeper into a more specific set of principles that directly address worker ownership and economic democracy: the Mondragon Cooperative Principles.

Why Mondragon Matters

The Mondragon Corporation, founded in the Basque region of Spain in 1956, has grown to become the world's largest worker cooperative. With over 70,000 worker-owners across 81 cooperatives, Mondragon demonstrates how cooperative principles can scale while maintaining a commitment to worker dignity and community wealth building.

‍

‍

Artwork by the incredible Co-op Union Printshop, Worx

Principle 1 Open Admission:

"The co-op will not discriminate in the admission of new worker-owners. Anyone who can do the work and supports these 10 principles can become a worker-owner."

Why It Matters

In Metro Denver, where historically excluded communities face persistent barriers to business ownership, Open Admission prioritizes accessibility. This principle directly challenges traditional business models that often perpetuate exclusion based on race, class, or other factors.

Real World Impact

When cooperatives embrace Open Admission:

• They create pathways to ownership for workers from all backgrounds
• They build more diverse and resilient businesses
• They help close the racial wealth gap by expanding access to ownership
• They demonstrate that inclusion strengthens business success

Putting It Into Practice

Local cooperatives can implement Open Admission through:

• Clear, skills-based criteria for membership
• Transparent paths and timelines to become a member
• Training and mentorship programs
• Fair financial requirements for membership

Building a Solidarity Economy

Open Admission isn't just about non-discrimination—it's about actively creating opportunities for those traditionally excluded from ownership. Combined with democratic management and fair profit sharing, it becomes a powerful tool for economic justice.

Join us next month as we explore Mondragon's second principle: Democratic Organization. Together, we're building a more equitable economy in Metro Denver, one cooperative at a time.

Artwork by the incredible Co-op Union Printshop, Worx

Principle 5: Participation in Management
"The practice goal is for 'Ownership' to become more than just the value of a share. Workers undertake the responsibilities of ownership in their co-op by participating in management positions and as members of the co-op's board of directors, by striving for inter-cooperation and competitive excellence, and by ensuring that the co-op remains accountable to its worker-owners."

Why It Matters
In Metro Denver, true ownership means workers don't just own shares—they actively participate in running their business and making it successful.

Building Participatory Workplaces
Here are key practices that successful cooperatives use to bring this principle to life:

Share Leadership Roles

• Rotate management responsibilities
• Serve on the board of directors
• Join key committees
• Take part in business planning

Build Business Skills

• Learn about finance and operations
• Train in decision-making
• Develop management capabilities
• Understand industry standards

Stay Accountable

• Report regularly to all worker-owners
• Track progress on goals
• Review decisions together
• Keep clear records

In traditional companies, ownership means holding shares. In worker cooperatives, ownership means actively participating in management, sharing responsibility, and working together for business success.

‍
Join us next month as we explore Mondragon's principle of Wage Solidarity. Together, we're building a more equitable economy in Metro Denver, one cooperative at a time.

Artwork by the incredible Co-op Union Printshop, Worx

Principle 6: Wage Solidarity
"Wage solidarity means there is less disparity among workers and the communities in which they live, reinforcing the equality and quality of ownership."

Why It Matters
In Metro Denver, where income inequality continues to grow, wage solidarity offers a concrete way to build more equitable workplaces and communities. This principle ensures that business success translates into shared prosperity by establishing clear ratios between the highest and lowest-paid workers (typically no more than 5:1 in Mondragon cooperatives).

Putting It Into Practice

Successful cooperatives implement wage solidarity through:

Fair Pay Ratios

• Have open discussions about your current wage scales 
• Connect wages to the needs and livability requirements of your worker-owners considering role, geography, hours of work,  and care responsibilities. 
• Share profits equitably among worker-owners based on their patronage of the co-op

Community Impact

• Living wages create higher-quality jobs 
• Reduce income inequality in local communities
• When everyone has more, we build more sustainable local economies

‍