My crystal ball has never worked very well, but the part of me that longs, that aches, for something better than our Ponzi-scheme economy refuses to give up on dreams of a humane future.

This sort of thing – rumored for weeks – could be it:

PITTSBURGH – The United Steelworkers (USW) and MONDRAGON Internacional, S.A. today announced a framework agreement for collaboration in establishing MONDRAGON cooperatives in the manufacturing sector within the United States and Canada.  The USW and MONDRAGON will work to establish manufacturing cooperatives that adapt collective bargaining principles to the MONDRAGON worker ownership model of “one worker, one vote.”

“We see today’s agreement as a historic first step towards making union co-ops a viable business model that can create good jobs, empower workers, and support communities in the United States and Canada,” said USW International President Leo W. Gerard.  “Too often we have seen Wall Street hollow out companies by draining their cash and assets and hollowing out communities by shedding jobs and shuttering plants. We need a new business model that invests in workers and invests in communities.”

Josu Ugarte, President of MONDGRAGON Internacional added: “What we are announcing today represents a historic first – combining the world’s largest industrial worker cooperative with one of the world’s most progressive and forward-thinking manufacturing unions to work together so that our combined know-how and complimentary visions can transform manufacturing practices in North America.”

Highlighting the differences between Employee Stock Ownership Plans (ESOPs) and union co-ops, Gerard said, “We have lots of experience with ESOPs, but have found that it doesn’t take long for the Wall Street types to push workers aside and take back control.  We see Mondragon’s cooperative model with ‘one worker, one vote’ ownership as a means to re-empower workers and make business accountable to Main Street instead of Wall Street.”

Both the USW and MONDRAGON emphasized the shared values that will drive this collaboration.  Mr. Ugarte commented, “We feel inspired to take this step based on our common set of values with the Steelworkers who have proved time and again that the future belongs to those who connect vision and values to people and put all three first. We are excited about working with Mondragon because of our shared values, that work should empower workers and sustain families and communities,” Gerard added.

In the coming months, the USW and MONDRAGON will seek opportunities to implement this union co-op hybrid approach by sharing the common values put forward by the USW and MONDGRAGON and by operating in similar manufacturing segments in which both the USW and MONDRAGON already participate.

…

About MONDRAGON:

The MONDRAGON Corporation mission is to produce and sell goods and provide services and distribution using democratic methods in its organizational structure and distributing the assets generated for the benefit of its members and the community, as a measure of solidarity.  MONDRAGON began its activities in 1956 in the Basque town of Mondragon by a rural village priest with a transformative vision who believed in the values of worker collaboration and working hard to reach for and realize the common good.

Today, with approximately 100,000 cooperative members in over 260 cooperative enterprises present in more than forty countries; MONDRAGON Corporation is committed to the creation of greater social wealth through customer satisfaction, job creation, technological and business development, continuous improvement, the promotion of education, and respect for the environment.   In 2008, MONDRAGON Corporation reached annual sales of more than sixteen billion euros with its own cooperative university, cooperative bank, and cooperative social security mutual and is ranked as the top Basque business group, the seventh largest in Spain, and the world’s largest industrial workers cooperative.

About the USW:

The USW is North America’s largest industrial union representing 1.2 million active and retired members in a diverse range of industries.

Here’s the Ocholphobist – a guy who’s experienced at making beautiful objects with his hands, but who seldom writes on such things any more – weighing and balancing the workers’ cooperative model:

I recently spoke with an old Catholic Worker friend of mine who told me of a talk given recently in which he heard that Mondragón is worried that an EU style bailout of Spain along the lines of what happened in Greece would actually hurt the cooperatives (Mondragón is not the only one) in Spain. Large financiers generally do not like cooperatives like Mondragón because they do not run with the sort of debt load and constant large debt shifting that a typical corporation does, and the debt they have tends to be decentralized – spread out over a number of smaller financial institutions (note that one of the “four areas of activity” Mondragón is engaged in is finance – this is common among worker cooperatives in Europe — just as many communities and groups of workers in America have local credit unions and many large corporations have their own finance divisions) . And these EU bailouts, like the American bailouts, buttress large finance, with the de facto result that midsize, small, and micro finance options are left in a less competitive position than they would be were there no bailouts, or less centralized bailouts.

The labor movement in the U.S. has little leverage against corporations and its impotence is increasingly pathetic. Often in the American context, when a union does manage to maintain some real power it uses it in as corrupt and abusive a manner (often abusive toward their own, these days) as corportatist power brokers do. But usually American unions are in the business of losing what power they have had so this is less and less a concern. It seems to me that if there is to be any future in workers organizing for their own protection and aid in the United States it will primarily be along the lines of models such as the one Mondragón provides. But I rather doubt that will happen beyond a few small scale efforts and the occasional lipservice. Worker cooperatives do not really fit into the destructive plutocratic order in which we find ourselves today.

It should be noted that in most worker cooperatives (I daresay nearly all of them that last for more than a few years) there is not a utopian vision of financial egalitarianism. There is still a meritocracy at play, arguably more so than in current corporatist models. A worker (or a small worker owned business seeking membership in the cooperative) is not guaranteed to be vested in the cooperative, but must earn it over years and invest himself or herself in a manner which shows to others competence and seriousness and follows well established protocols, with a system in place to curb abuses and address complaints. One will see in a worker cooperative, however, more money staying within the communities where the cooperative is found, and nothing like the radical disparity between the wages of workers and the salaries of executives such as we see in most U.S. corporations, in which execs are paid for their skills in social networking and an ability to manipulate government and lying to the public with that perfected air of banality we routinely see from our suits.

All that said, the ethos of Mondragón Corp has undergone something of a change since EU integration and taken something of a more EU character. The EU is a sly dog. Within the EU constitution there is a mandate which requires the EU to follow the principle of subsidiarity, but as we see with the recent bailout of Greece (along with a host of other moves), the EU is often the furthest thing from an institution which follows the principle of subsidiarity. There is the possibility of a convenient use of subsidiarity rhetoric whilst actually following centralized, top-down, corporo-statist models. It is quite conceivable that cooperatives could be formed which, on paper, look like cooperatives, but which actually function more like corporations.

It is now not uncommon for American Orthodox to argue how neo-con, paleo-con, or libertarian political and/or economic orders are somehow in keeping with Orthodoxy. I suppose an Orthodox embracing subsidiarity would simply be another act in that circus. The chief fault of subsidiarity, as I see it, is that the notion is too vague to be of serious use when applied to any macro-economic vision. One finds both Leftists and those on the Right espousing the ‘true’ version of subsidiarity. Subsidiarity works best as a flexible guiding model in particular micro-economic environments, a part of an economic order with a wide array of labor structures, such as we see with Mondragón Corp in the context of Spain. I have a friend who says he would never fly Distributivist Air, were there such a company. I am not sure that a well run worker cooperative airline would be any less safe than the typical corporate airline, but I have worked for a family owned business of which the thought of the coworkers I had at said business owning that business sends shivers down my spine. Another business I once worked for did go for a varient of the subsidiarity model, and is now in dire straights with half of the staff let go, instead of being sold to a friend of mine who could have actually kept the business thriving, seeing as how he had run it successfully for some years. The original owner, instead of selling to my friend, decided to follow a hasty subsidiarity minded scheme presented by an employee with many ideals and little actual experience in the business and now, out of desperation, the company mimics corporate stores more than it ever did. I suppose that in business, as in most of life, there is a charism to doing things well and any economic order can get in the way of a given charism at a given time.