Worker Co-operatives and Pensions

I've added a new Blog to my blog-roll following a comment to my Blog On Unions and Pensions from John Atherton at UK Worker Co-operatives. Why I'd not come across John's Blog before I don't know, but I'm already finding it a mine of useful information. I was particularly interested in this blog about Pensions at Mondragon, which shows that on my calculation the average Pension paid to its workers is around Euros 17,000 a year (£13,600 pa.). As John's Blog shows this is calculated on the basis of 60% of the inflation adjusted 30 years best earnings.

In Spain average earnings are considerably lower than the UK, so this pension has also to be seen in that light. It compares even so favourably to the pitiful State pension in the UK. We are frequently being told about the "Gold Plated" Public Sector pensions in the UK. But, the average UK Public Sector Pension only pays out around £3,500 pa. or a quarter of the Mondragon Co-op Pension! Nor from the figures that John provides does it appear that Mondragon will have any problems maintaining this level of Pension as the current Net revenue for the Fund is double the amount being paid out in Benefits!