Archive for January, 2014

MONDRAGON Corporation opens a period of reflection to plan its future

Txema Gisasola has resigned as President of the General Council, for personal reasons.

The basic characteristics of the future MONDRAGON model will be outlined during this period.

The new President of the General Council will be appointed once the establishment of the new framework project for MONDRAGON has come to an end.

Mondragón, 17 January 2014.- The co-operatives forming part of MONDRAGON Corporation have begun a period of analysis and reflection to design the general framework of action for the next few years. The first step has been to set up a team made up of managers from different co-operatives and areas of the Corporation which is in charge of carrying out an assessment of the current situation, identifying the key lines of action and drawing up the road map to be followed over the next few years.

This period has started after the resignation of the current President of the General Council, Txema Gisasola, for personal reasons. In his farewell, he vindicated the principles of “solidarity, effort, competitiveness, technological innovation and commitment to the community” as cornerstones of the essence of MONDRAGON’s co-operatives and mainstays for the future.

The new President of the General Council will be appointed once the establishment of the new framework project for MONDRAGON has come to an end.

Interim Management Committee

The resignation of the current President will be dealt with immediately by setting up an Interim Committee, at the heart of the General Council, to ensure the operation of the Corporation’s services and establish the bases on which all the members of all the Corporation’s co-operatives can decide what MONDRAGON will be like in the future. These framework lines of action will be presented to the 2014 Congress by the new President, who will lead the Group in the coming years.

In the current situation of economic crisis, MONDRAGON Corporation believes it is necessary to undertake this period of “collective analysis, reflection and debate” in order to tackle confidently the challenge presented by the global economic crisis.

The Corporation completely reasserts its trust in the Co-operative Model, as a driving force for generating wealth, and is firmly committed to the future of the community it is part of.

Statement issued by EROSKI on the MOU in relation to its AFS | EROSKI

Statement issued by EROSKI (a Mondragon coop) on the memorandum of understanding in relation to its AFS, presented by Kontsumobide (the Basque Consumer Affairs Institute)

  • EROSKI wishes to report its positive assessment of the mediation process brokered by Kontsumobide  (the Basque Consumer Affairs Institute) involving EROSKI (issuer), financial institutions (retailers) and several Consumer Associations acting on behalf of those people who have invested in the subordinated debt referred to in Spanish as Aportaciones Financieras Subordinadas (AFS).
  • In the memorandum of understanding signed by EROSKI and various financial institutions, the parties agree to make their utmost effort to ensure that EROSKI is able offer all the holders of its AFS a swap based on the following premises:

– Delivery of a subordinated bond issued by Eroski, whose face value would amount to fifty-five percent (55%) of the current face value of the AFS, with a maturity of twelve (12) years as of the date of the swap and an annual yield of 300 basis points over the Euribor (12 months).

– Cash compensation amounting to fifteen percent (15%) of the current face value of the AFS, to be paid out at the time of the swap.

  • This agreement provides a universal solution for all those people who have invested in the AFS, regardless of the financial institution involved in the purchase, the amount in question or the investors’ place of residence. The acceptance of this option by investors in the AFS is wholly voluntary, which means that those people who wish to remain in possession of their AFS may do so as at present.
  • This agreement does not require the reimbursement of any interest EROSKI has paid out to date for ’permanent’ AFS. Furthermore, EROSKI will pay the interest on the AFS corresponding to the 2013 financial year on 31 January 2014. Since the first issue, EROSKI has always paid the corresponding interest due, which has meant that investors in the AFS have already recouped a considerable part of their face value thanks to the interest accrued, amounting to as much as 63% in the case of the 2002 issues.
  • During this process, EROSKI has responded to all the requests made by the Kontsumobide, and has at all times shown its willingness to collaborate in order to reach an agreement that will satisfy all the parties involved within the framework of our responsibilities as issuer.
  • EROSKI also reports that it maintains a permanent channel of communication with its investors through its Investors’ Club, which can be contacted by phone on +34 946 211 248, or by email at aportacioneseroski@eroski.es

Why Your Employees Should Own Your Business | ASBC

by John Abrams

On the last day of 2012 South Mountain Company (SMC) celebrated the end of its twenty fifth year as a worker cooperative. It was an extraordinary year – rich, demanding, uplifting, and profitable.

In 1987 I re-structured the company from a sole proprietorship to an employee owned cooperative corporation. It was a dramatic hinge point in the history of the company. Ownership became available to all employees, enabling people to own and guide their workplace. The responsibility, the power, and the profits all belong to the group of owners. There are no outside investors and no non-employee owners.

We have been profitable every year since our re-structuring. As we near our 40th anniversary, SMC is a thriving integrated architecture, engineering, building and renewable energy company. As the founders and early employee owners have begun to retire, we are transitioning to the second generation and planning for the next 40 years.

Employee ownership has played a big role in the modest successes we have accumulated over time. Owning our work, and finding meaning there, is as essential to a good life as it is to own our homes. Employee ownership has also proven to be an essential ingredient in building stronger communities and local economies.

Read his blog post via the American Sustainable Business Council.

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