Intercooperation, flexicurity and their impact on workers: The case of Fagor Electrodomésticos

Abstract

Mondragon cooperatives have used flexible employment, training and labour protection policies to deal with economic crises since the 1970s. These policies were also used in 2013 to alleviate the social consequences of the demise of their biggest industrial cooperative, Fagor Electrodomésticos. This article aims to analyze—through 40 interviews with different stakeholders—the advantages and limitations of wage, working time and functional flexibility policies by framing them under the flexicurity concept. In contrast with previous research on Mondragon cooperatives, this study has found a strong worker-owner resistance to flexicurity policies, mainly before the firm's bankruptcy. The study has also found the main reasons for worker resistance and for some successful Mondragon cooperatives’ reluctance to offer permanent relocations to redundant Fagor Electrodomésticos’ members. This research will help cooperatives to maintain and improve their flexicurity policies and their resilience. Some findings can be extrapolated to the growing number of firms that aim to implement flexicurity policies without harming their workers’ social welfare.