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This quote without context might give impression that Chomsky is critical of Mondragon. A bit of context around it helps to understand his point. From [1]:

“LF: So it sounds as if you might support something like the Cleveland model where the ownership of the company is actually held by members of the community as well as the workers…

NC: That’s a step forward but you also have to get beyond that to dismantle the system of production for profit rather than production for use. That means dismantling at least large parts of market systems. <<here this quote about Mondragon>>

Markets also have a very bad psychological effect. They drive people to a conception of themselves and society in which you’re only after your own good, not the good of others and that’s extremely harmful.

LF: Have you ever had a taste of a non market system — had a flash of optimism –– oh this is how we could live?

NC: A functioning family for example, and there are bigger groups, cooperatives are a case in point. It certainly can be done. The biggest I know is Mondragon but there are many in between and a lot more could be done.”

1 - https://www.counterpunch.org/2012/04/30/talking-with-chomsky...