CO-OP NEWS: MAY 2019

MAY 2019
WORKERS
The heart of people
-centred businesses
Plus ... The future
of work ... new models
of co-operation ... 100
years of the ILO
ISSN 0009-9821
9 770009 982010
01
£4.20
www.thenews.coop

dear co-operators
Over the next few weeks members of Co-op retail societies will have the chance to
vote at their respective AGMs on continuing their partnerships with the Co-operative
Party. I hope they will, because the case is as strong as it has ever been.
In solidarity with shop workers, Usdaw and Co-op retailers we have sought to strengthen the law
that offers protection to shop workers from a rising tide of threats and violence. Co-operative
Parliamentarians have initiated and participated in debates in Westminster and the Scottish
Parliament. Co-operative MPs visited Co-op stores during Retail Workers Week and showed
support via their own social media channels; and we welcomed Roger Grosvenor, from East of
England Co-op, to brief Parliamentarians on crime and security issues affecting retailers.
The Party has expanded on its previous work with the Co-op to tackle modern day slavery.
Our Charter for Councils has built cross-Party support through Co-operative leadership, ensuring
there is no place for modern slavery in their supply chains. The number of signatories now totals
more than 80 Local Authorities, including SNP and Conservative administrations. Co-operative
MPs have worked tirelessly with others to press government on the implementation of the Modern
Slavery Act. This has led to a Home Office audit of 17,000 businesses, pledging to name and
shame those that are non-compliant.
We know that a bigger co-operative sector – at least double its current size – would mean a
fairer economy and a stronger society. So, we commissioned the New Economics Foundation to
write Co-operatives Unleashed, a routemap to achieve this bold ambition and we are proud that it
has sparked a debate across the movement about the ‘what’ and the ‘how’.
Our history shows that the partnership between the Party and the movement is a powerful force
for good. But there is so much more still do to. Now is the time to make our voice heard more
loudly than ever, not to step out of the ring. To find out more about our work since last years AGM
visit www.party.coop/campaigns/Motion8.
Yours in co-operation,
Claire McCarthy
General Secretary of the Co-operative Party
Promoted by Claire McCarthy on behalf of the Co-operative Party, both at 65 St John Street, London EC1M 4AN. Co-operative
Party Limited is a registered Society under the Co-operative and Community Benefit Societies Act 2014. Registered no. 30027R.

The workers at the heart of
people-centred business
CONNECTING, CHAMPIONING AND
CHALLENGING THE GLOBAL CO-OP
MOVEMENT SINCE 1871
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EXECUTIVE EDITOR
Rebecca Harvey
rebecca@thenews.coop
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Anca Voinea | anca@thenews.coop
DIGITAL EDITOR
Miles Hadfield | miles@thenews.coop
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Keir Mucklestone-Barnett
DIRECTORS
Elaine Dean (chair), David Paterson
(vice-chair), Sofygil Crew, Gavin
Ewing, Tim Hartley, Beverley Perkins,
Barbara Rainford and Ray Henderson.
Secretary: Richard Bickle
Established in 1871, Co-operative
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cooperativenews
In 1919 the International Labour Organization was founded to advance social
justice and promote decent work by setting international labour standards.
As it celebrates its centenary this year – and as 1 May marks International
Workers Day – this issue we put workers front and centre.
But ‘workers’ means different things in different organisations, even
within co-operative organisations and structures. ‘Worker-owned’ and
‘employee-owned’ are sometimes used interchangeably, but have different
consequences for participation, rights and benefits. Co-operatives UK
policy officer, James Wright, and Deb Oxley, chief executive of the Employee
Ownership Association, are among those discussing the differences (p27-29).
This year’s Ways Forward conference also focused on workers, from
sociocracy models of worker governance to union-co-op collaborations – and
looked at how workers in Syria and Mississippi are using the co-operative
model as a tool of revolution and liberation (p30-33). This is happening in
India, too, where the Self-Employed Women’s Association (SEWA) has been
helping women in the informal economy since 1972 (p42).
We also hear from co-operative consultant Alex Bird, who asks if workers
should have a bigger stake in consumer co-ops (p34), and from Amanda
Gibbons, personnel manager at Heart of England, who is focusing on
colleague training and development, along with retention of staff (p35).
As part of the ILO’s 100th anniversary, we speak with Simel Esim, who heads
the organisation’s Cooperatives Unit (p36-37), and from Hagen Henrÿ, chair
of the ICA’s Co-operative Law Committee, who edited the third edition of the
ILO’s Guidelines for Cooperative Legislation (p40-41).
Also in this issue author and journalist Andrew Bibby reports on an exhibition
in Catalonia which explores the region’s co-operative heritage (p44-45), while
Paul Gosling looks at the regulatory failures behind the Co-op Bank debacle
on the back of Mark Zelmer’s investigation into the FSA and PRA (p46-47).
REBECCA HARVEY - EXECUTIVE EDITOR
Co-operative News is printed using vegetable oil-based
inks on 80% recycled paper (with 60% from post-consumer
waste) with the remaining 20% produced from FSC or PEFC
certified sources. It is made in a totally chlorine free process.
MAY 2019 | 3

ISSN 0009-9821
9 770009 982010
01
THIS ISSUE
CLOCKWISE FROM TOP LEFT
Workers from Calverts (p27); Amanda
Gibbons, personnel manager at Heart
of England Co-operative (p35);
ILO and the future of work (p36-37); SEWA
(p42); and Catalonia’s co-operative
heritage (p44-45)
22-23 MEET... NICOLA HUCKERBY
The co-operator and marketing specialist
behind Co-op Brand Ltd
38-39 ILO CENTENARY
Stirling Smith on 100 years of the
International Labour Office
26 CONGRESS AND THE CECOP-CICOPA
EUROPE GENERAL ASSEMBLY
Preview of the two events taking place in
Manchester this June
40-41 Q&A WITH HAGEN HENRŸ
A history of the ILO’s Guidelines for
Co-operative Legislation
news Issue #7307 MAY 2019
Connecting, championing, challenging
MAY 2019
WORKERS
The heart of people
-centred businesses
Plus ... The future
of work ... new models
of co-operation ... 100
years of the ILO
£4.20
www.thenews.coop
27-45 WORKERS
27-29 WORKER-OWNED CO-OPS AND
EMPLOYEE-OWNED BUSINESSES
What’s the difference – and why does
it matter?
30-33 WAYS FORWARD CONFERENCE
Updates from the event which covered
sociocracy, mutualisation, union-co-op
hybrids and more
34 Q&A WITH ALEX BIRD
Should workers have a bigger stake in
consumer co-operatives?
42 THE SELF-EMPLOYED WOMEN’S
ASSOCIATION
SEWA’s role in India’s changing world
of work
43 CO-OP COLLEGE CENTENARY
Sophie McCulloch on historic working
conditions and employee rights
44-45 CATALONIA CELEBRATES
The region’s co-operative heritage
explored
46-47 THE CO-OP BANK DEBACLE
Regulatory failures: Paul Gosling on Mark
Zelmer’s investigation into the FSA and PRA
COVER: Ms Uma Devi
Kami, who is working on the
rehabilitation of the Dhampus
Road in Kaski District under the
ILO’s Strengthening National Rural
Transport Programme (SNRTP)
Credit: Crozet M / ILO ©
Read more: p27-45
35 THE PEOPLE PERSON
Amanda Gibbons, personnel manager
at Heart of England, on looking after
people in a people-centred business
36-37 Q&A WITH SIMEL ESIM
The ILO, co-ops and the Global
Commission on the Future of Work
REGULARS
5-14 UK updates
15-21 Global updates
24-25 Letters
48-49 Reviews
4 | MAY 2019

NEWS
RETAIL
Co-op Group announces profits, with members and communities receiving £79m
The Co-op Group has announced a
positive performance for the year
ending 5 January 2019, with profit
before tax on continuing operations up
27% on the previous year, although its
underlying profit before tax remained
flat at £43m.
The retailer said its food stores benefited
from a hot summer and a good England
performance in the World Cup – but that
its funerals business had a “challenging”
year. 2018 also saw the Group’s acquisition
of the Nisa wholesale business, the
sale of its insurance underwriting
business and the purchase of the Dimec
platform to prepare for its return to
healthcare services.
Members received nearly £60m through
the 5% reward scheme, while a further
£19m was distributed to 4,000 local
causes through the 1% reward scheme
and funds from the sale of carrier bags.
Chair Allan Leighton said that while in
2019 the organisation would be marking
the 175th anniversary of the Rochdale
Pioneers opening their first co-op shop,
now is “not a moment for looking back”.
“We were in the wilderness for a long
period of time,” he said. “My view, is that
this co-op was not a co-op for 50 years –
but it’s been one for the last three to five
years. In my view the way you celebrate
175 years is by going back to what the
co-op used to do, but executing it with
modernity. All of our core values are still
very much in play, but we’re trying to
make them in such a way that they’re very
relevant to society today.”
He added: “It’s pretty uncertain times
to say the least, but we believe that
co-operation can really be part of the
solution. So we’re investing to further
align our businesses with the needs
of our members.
“We’re really trying to increase
our understanding of what goes on
in communities, and the best way
to tackle those issues.”
The Group’s total revenues grew
by 14% to £10.2bn, driven by the Nisa
acquisition and a strong performance
from Food, where like-for-like revenues
grew 4.4%. Capital expenditure was at
£414m, £326m of which was attributed to
store investment, refits and infrastructure.
Net debt rose to £792m due to the Nisa
acquisition, but remained below its
£900m debt ceiling target. Surplus on
pension schemes increased by £300m to
£1.8bn (2017: £1.5bn). The figures for the
planned sale of its insurance underwriting
business (for £185m) are not included
within its Profit Before Tax line, but within
discontinued items.
Chief executive Steve Murrells said the
plan for 2019 was to “continue to grow our
business and reach more customers with
our Co-op difference [by] opening more
Co-op Food stores, through revitalising our
Funeralcare business, through developing
more Co-op Insurance products, and via
our new Healthcare venture”.
He added: “Overall, we’re confident
about the progress we’ve made in 2018
and the investment decisions we’ve taken.
But there’s still much to do to achieve our
Stronger Co-op, Stronger Communities
ambition. In 2019 we want to further
develop our community work through
a deeper understanding of the needs
and challenges faced by our members.
Our plan is to create practical resources,
founded on co-operative thinking.”
On Brexit, Mr Murrells said: “Like
other businesses, we’ve been preparing
as best we can for the possibility of a
no deal departure. Our commitment to
British farming provides our members
and customers, as well as our suppliers,
with some welcome protection from any
increase in tariffs. However, we still source
many of our fresh food products from
the EU and we are making contingency
plans to the best of our ability. Our
priority is to do our best for our members
and customers through what could be
a challenging time for the whole nation.
“The thing that’s always troubled me
through this whole process is how Brexit
is dividing communities. That’s what
worries me as much as whether it’s a
hard or soft deal. Many of the issues that
are opening up in communities around
crime, around creating jobs, around
homelessness, need to be talked about
a lot more.”
On the return of profits to members,
he added: “Our focus has been on
putting more money into colleagues’
pay, into creating more jobs and into our
IT infrastructure to make sure that we
can serve customer needs better than
ever before. And that’s going to be the
continued focus for a number of years.
The £60m that we’re giving to members
[through the 5 and 1 scheme], we could
choose to take that to the bottom line –
but we don’t because it’s important that
at this time members are getting benefits
from our success.
“We are making sure that we are
building a successful Co-op for the future,
focusing more on how we can help with
the issues facing society. That’s where
a lot of our energy is going.”
MAY 2019 | 5

ANNUAL RESULTS
Heart of England Co-op reports operating profit of £2.9m
Heart of England Co-op has reported
a rise in sales despite “one of the most
challenging and difficult years in
recent times”.
The society, which operates a network
of 32 food stores and 13 funeral homes
in Coventry, Warwickshire, south
Leicestershire and Northamptonshire,
saw a 3.45% rise in turnover in the year
ending 19 January, to £74.2m.
But operating profit fell to £2.9m, down
from £5.5m the previous year, its annual
report revealed.
The co-op’s net worth increased by
12.9% to more than £46.2m.
The society said its food division
had performed strongly in a fierce
market, against stiff competition from
multinationals and discounters. Sales
were helped by a cold winter, a hot
summer and England’s World Cup
performance.
Recent investments in both the Barwell
and Market Bosworth stores resulted
in both performing above budget, the
society added, while the Long Lawford
and Meriden food stores recorded double
digit sales increases.
Long Lawford was rebuilt in early
2017 while Meriden was extended in the
summer of that year.
The strong performance has continued
into 2019 with food sales up by almost 6%
in week nine, says the retailer.
The funeral division recorded a minor
decrease of 0.66% in like-for-like sales
over the same period, against a strong
performance in the two previous years,
and reflecting a fall in the number
of deaths.
In the Food division the sales of 5p
carrier bags over the 52 weeks helped
raise more than £54,000 which Heart
of England distributed among various
charities. The society also presented a
further £16,000 to corporate charity Zoe’s
Place Baby Hospice.
Chief executive Ali Kurji said:
“Consumer confidence remains at an alltime
low due to a great deal of uncertainty
about the economy and the slow progress
over Brexit negotiations.
“This has been further compounded by
the recent increase in interest rates, which
will inevitably add further pressures on
retail prices.
“We face an extremely challenging
and very uncertain 2019 and all the
economic indicators are pointing
towards a slowdown in the economy as
it appears to be losing momentum amid
Brexit concerns.”
Mr Kurji added: “Despite the challenges
we had a satisfactory year ... The policies
put in place are being successfully
implemented and will help to create a
strong regional co-operative business
which will withstand the economic
challenges ahead.”
Ali Kurji, chief
executive of
Heart of England
Co-operative
Society
ANNUAL RESULTS
Central England Co-op announces 4.4% increase in trading profit
Central England Co-op has enjoyed a good
year’s trading, with its annual results to
26 January showing gross sales up 2.5%
£869.9m, and trading profit up 4.4%
to £18.1m.
Outgoing chief executive Martyn
Cheatle said: “The society delivered
another strong performance in 2018, with
good progress being achieved across the
business from both a financial and nonfinancial
perspective.”
This performance was made against
a difficult backdrop, he added, noting
competitive markets and a steady
decline in consumer confidence because
of concern and uncertainty over Brexit.
“Against this intensely competitive
environment and uncertain economic
backdrop, our total gross sales (excluding
VAT) rose by 2.5% to £869.9m (2017/18:
£848.3m),” he wrote.
“Increased sales in our convenience
stores, including growth from new
openings, were partially offset by
continued pressure in our larger food
stores and supermarkets. We traded
particularly well during the harsh winter
and long hot summer together with strong
sales during key seasonal events such
as Valentine’s Day, Mother’s Day, Easter
and Christmas.”
Mr Cheatle said there had also been
strong performances in the society’s
funeral and travel decisions, and hailed
an investment programme which has seen
10 new food stores and six new funeral
homes open during the year, alongside
refurbishments at 35 existing food retail
sites and 17 funeral homes. Capital
expenditure for the year was £28.7m.
The society shared Community
Dividend Fund grants of £173,000 between
more than 140 community groups and
charities, while its charity partnership
with Dementia UK hit the £1m milestone.
Over 250,000 items were donated
by customers and members to food
bank collection points and over 130
food stores operating as part of a food
redistribution project.
And stakeholder groups of members,
colleagues and communities shared
a £3.5m dividend payout.
The society continued its work on
positive mental health with the training of
100 dedicated mental health and wellbeing
champions. And its carbon footprint
6 | MAY 2019

East of England Co-op
reports 30% growth in
trading profit
East of England Co-op has reported an
increase in trading profits across its food,
funeral and property businesses in its
annual results for 2018/19.
Alongside underlying trading profit,
which is up 33.2% to £5.6m, members’
funds have risen by £12.1m to £224.6m.
The food business saw a 2.2% increase
in sales, with stores benefiting from
the harsh winter and long hot summer,
as well as reaping the rewards of their
store refurbishment programme and
investment in technology.
Following the expansion of its funeral
business in 2017/18, market share is
growing, while the society’s property
investment business has seen continued
success, with rental income nearing £8m
per year from over 450 properties.
Joint chief executive Doug Field said:
“We are seeing the benefits of doing
business the co-operative way and
investing in our business. Our ability to
leverage the technology we have invested
in within our food business has made
a big difference.
“Leading the agenda on food waste,
we will continue to develop our Co-op
Guide to Dating initiative to save more
edible food from going to landfill. We
have now introduced fresh and frozen
lines to the scheme, which has seen
over 200,000 items saved from going
to waste.
“We will continue to offer our
apprenticeship programme, which has
seen 100% retention rates with many
graduates going on to higher level
education and management opportunities
within the business, retaining local talent.
“Following a re-launch in 2018, our
security business, Co-op Secure Response,
continues to experience significant
growth, with sales now approaching
£1.5m, having extended its availability
across the United Kingdom.
“I am incredibly proud of the efforts
of all our colleagues.”
Market conditions remain challenging,
said the society, with the rising costs
of doing business including the National
Living Wage and rising inflation.
But Mr Field added: “Our long-term
strategy remains the same – to continue
to maintain a strong and sustainable
business, to generate profits and support
our communities.
“We are continuing our successful food
strategy, investing in technology and
ensuring we have a contemporary food
store estate. The success of recent years
is in part due to making sure we have the
right stores in the right place. While this
led to a small number of store closures in
2018, we continue to look for new food
store opportunities.”
He said coming investments for 2019
include funeral branch refurbishments,
additions to its property investment
portfolio, and the development of Co-op
Secure Response.
dropped by 48% against the society’s 2010
baseline position.
Society president Elaine Dean said:
“Our strategy remains focused on
maintaining the society’s position as
a strong, member-owned co-operative
business. We firmly believe that our values
and principles of co-operation are as
relevant today as they have ever been and
our positive results again demonstrate the
society’s resilience to operate in a highly
competitive market.”
ANNUAL REVIEW 2018/19
For the year to 26 January 2019
MAY 2019 | 7

ANNUAL RESULTS
Scotmid Co-operative profits up 11%
Scotmid Co-operative has reported a
£5.3m trading profit for the year ended
28 January 2019 – up £0.5m (11%) on the
previous period.
The retailer, which celebrates its 160th
anniversary in November, confirmed the
value of its net assets had risen to £103m,
its highest ever level. It also recorded
turnover of £378m, an increase of £4m on
the previous year.
As with other UK societies, sales figures
were boosted by the World Cup and the
hottest summer for 40 years, while at the
same time it faced into significant external
cost increases, a lacklustre economy and
Brexit uncertainty.
John Brodie, chief executive, said: “Our
Scotmid food convenience business bore
the brunt of the cost increases including
business rates, energy and employment
costs, but delivered a strong like-forlike
sales performance assisted by range
improvements and the good weather.
“The market conditions for Semichem
were very poor, with the Scottish Retail
Consortium reporting non-food sales
down 2.2% (like-for-like) and Northern
Ireland being particularly hard hit by
the Brexit uncertainty with the potential
for less cross-border trade. In this
climate, Semichem did well to deliver an
underlying result marginally down on last
year with a number of trials underway and
hard decisions taken.”
Mr Brodie added that the society’s
funeral business had a mixed year but
recovered to finish strongly, while Scotmid
Property performed well, in line with its
diversification strategy.
“In line with our core purpose, which
is to serve our communities and improve
people’s everyday lives, our membership
initiative, Community Connect continues
to grow – in the last cycle we awarded
£75,000 to nine good cause groups across
our trading areas in Scotland,” he added.
“In 2018, we awarded funding to nearly
1,200 local good cause groups through our
Community Grant programme – enabling
worthwhile projects to come to life.
“As we head towards our 160th
anniversary on 4 November 2019, the
society will continue with the continuous
improvement philosophy and focus on
innovation, effective investment and
tight control of costs to continue to
make progress in an unforgiving and
uncertain market.”
EMPLOYEE OWNERSHIP
Hitting the road and spreading the word on employee ownership
p Sarah Deas, director of CDS
A new events programme, Selling a
Business to an Employee Ownership
Trust, will raise awareness of employee
ownership among professional advisers.
The Law Society of Scotland, the
Institute of Chartered Accountants
Scotland (ICAS) and Co-operative
Development Scotland (CDS) have
joined forces to run the roadshow across
Scotland in May and June.
It will target members of the legal,
accounting and banking professions, who
play an important role in informing clients
about employee ownership as a business
succession model. The events also aim to
increase the number of firms that are able
to offer specialist guidance.
Sarah Deas, director of CDS, an arm
of Scottish Enterprise, said: “Promoting
employee ownership helps drive growth
in the economy and create greater wealth
equality in society.
“Our partnership with the Law Society
of Scotland and ICAS will enable us to
raise professional advisers’ awareness of
the advantages of this model of business
succession. And increasing the number
of firms which are able to offer indepth
specialist guidance on employee
ownership to their clients will greatly
benefit businesses all over Scotland.”
Alison Atack, president of the Law
Society of Scotland, said: “Employeeowned
organisations have proven
highly successful in recent years and
were particularly resilient during and
following the economic downturn, with
research showing that employee-owned
firms outperformed similar companies
and achieved higher sales turnover and
maintained higher employee numbers.
“We want to ensure that as professional
advisers, Scottish solicitors understand
the particular needs of employee-owned
businesses, as well as any specific
challenges they face, and can provide the
advice and support to help them thrive in
the long term.”
Bernard Dunn, ICAS council member,
added: “Ultimately, a business needs to
choose the model, which helps it achieve
its objectives and best fits its culture. It is
important that advisers are well placed to
inform employees on both the risks and
opportunities so they can make the right
decision for their business.”
8 | MAY 2019

p The new employee owners of ITEC Training Solutions
EMPLOYEE OWNERSHIP
Two more Welsh firms take the worker buyout route
Wales Co-operative Centre is helping
two more firms – a TV company and a
training provider – make the switch to
worker ownership .
The centre delivers the Social Business
Wales project, funded by the EU’s
European Regional Development Fund
and Welsh government, to develop co-ops,
mutuals, social enterprises and employeeowned
companies.
In what is believed to be a UK broadcast
industry first, it has helped Caernarfonbased
independent TV company Cwmni
Da move to an employee trust model.
Managing director Dylan Huws is
selling his shares in the £5m-a-year
business to the trust. There will be a staff
representative among the three trustees
looking after staff interests.
“Shares will be held on behalf of the
workforce in a trust fund and the trading
company will need to prove to the trustees
that their decisions are beneficial to the
workforce,” said Mr Huws.
Cwmni Da employs 50 staff and makes
factual, entertainment, drama and
children’s programmes, mainly in Welsh,
for broadcaster S4C.
Mr Huws added: “An employee-owned
trust feels like a perfect fit because
I believe passionately that the staff are a
key part of the business and that they can
all benefit from their efforts.”
ITEC Training Solutions, which provides
training and employability services for
those most affected by the emerging skills
gap, has also moved to an employee trust.
Founded in 1982, ITEC has grown from
£2m turnover in 2007 to a group turnover
of £14.3m in 2018.
Staff numbers also increased from 35 in
2007 to 140 in 2019.
Co-owner Steve Doyle said: “Having
built the business to where it was we
did not want it to become part of just
another large corporate or college. The
real challenge was finding a suitable
succession plan for the business.
“We had considered selling and received
a number of offers over the last few years
but that did not sit comfortably with us
so we got in touch with Social Business
Wales to discuss employee ownership.”
ITEC has delivered training packages
including apprenticeships and adult
employability programmes to a number of
clients, including a £13m-a-year contract
with the Welsh government.
Mr Doyle added: “Going employeeowned
gave us the opportunity to maintain
our independence while continuing to
grow the brand. I expect it to improve
efficiency and facilitate further growth
by being able to attract high-calibre staff
and offering them what no other training
company currently offers.”
The business is looking to expand
in England where it already delivers
apprenticeships. It plans to deliver
commercial training through a Londonbased
subsidiary.
“We have a very loyal and highly
motivated team who we hope will see real
p Cwmni Da’s new employee owners outside their office
benefit from employee ownership,” said
Mr Doyle. “I would advise any companies
considering employee ownership to give
it serious consideration. It may not be the
solution for every business but if you have
a good team to take the business forward,
it is a great vehicle.”
Wales Co-operative Centre’s business
advisor Paul Cantrill, who worked with
both businesses on their transitions, said:
“Employee ownership offers a succession
approach that is fair to everyone. Business
owners can leave their business in the
knowledge the future of their employees
has been safeguarded. Employees get
to take control of their own destiny
and continuity of supply is assured for
suppliers and customers.
“Evidence shows that employee-owned
businesses are resilient. When employees
retain ownership of a business, it is
much harder for that business to be sold
to external competitors, allowing it to
grow whilst staying firmly rooted in the
community where it was started.”
Since 1994, Wales Co-operative Centre
has worked with over 50 companies in
their transition to employee ownership,
including Tower Colliery, The Urbanists,
Tregroes Waffles, ETL Solutions, Aber
Instruments and Gateway Dental Practice.
MAY 2019 | 9

FINANCE
Plymouth City Council
backs new memberowned
bank
p Cllr Chris Penberthy
Co-operative society South West Mutual –
set up to provide a member-owned bank
in the south west of England – has been
backed by Plymouth City Council with an
investment of £60,000 in founder shares.
The council – which is part of the
Co-operative Councils Innovation
Network – has become a founder
member alongside more than 60
individuals, organisations and other
local authorities. The investment from its
Co-operative and Mutuals Development
Fund will buy shares that can be traded
with other members once the bank
becomes profitable.
Subject to authorisation by the Bank of
England and Financial Conduct Authority,
the bank aims to launch in 2020. It will be
the first ever member-owned high street
bank dedicated to the residents and small
businesses of Cornwall, Devon, Somerset
and Dorset. And it will provide a full
range of services to rival high street banks,
including local branches, digital channels
and current accounts.
Cllr Chris Penberthy, cabinet member
for housing and co-operative development
at Plymouth City Council, said: “Plymouth
is leading the way in growing the
co-operative and social enterprise
economy. We are committed to supporting
small businesses and want to see a fairer
financial system.
“That is why we are honouring our
commitment to support the establishment
of South West Mutual, a new co-operative
bank for the region, by becoming the
largest investor.”
Tony Greenham, executive director
of South West Mutual, said: “More of
the important decisions that affect our
economy should be made, not in the City
of London, but closer to home.
“We believe that a mutual bank
dedicated to the sustainable prosperity
of the South West will make a vital
contribution to levelling the economic
playing field for the region’s people and
businesses.
“Having the support of Plymouth City
Council is a huge boost to this project and
we are looking forward to working with
stakeholders across the region’s largest
city to make the new bank a reality.”
DIGITAL
Virgin Media joins Tameside Digital Infrastructure Cooperative
Virgin Media is the latest business to
join the Tameside Digital Infrastructure
Coop (TDIC), which brings together local
authorities, the NHS and local businesses
to share digital infrastructure.
Initially a Greater Manchester project,
the co-op is looking to change its name to
the Digital Infrastructure Cooperative as it
grows beyond Tameside.
TDIC was set up over a year ago to
create a single infrastructure to serve the
public sector, businesses and residents.
Participants contribute passive assets,
such as ducting, that they own or have
built. They retain ownership and charge a
market rate to the co-op for their use.
Businesses are able to use TDIC
facilities to create advanced internet and
telecommunications services for both
businesses and consumers in the region,
while public sector members can improve
services and save costs.
The co-op is run on a one-member,
one-vote basis, which guarantees that
all partners are equal, and that no one
can take it over. There are three types
of member: user members pay wholesale
fees to access dark fibre and rack space;
contributor members provide duct or
floor/roof space and receive a fee from
the co-op; and investor members put in
money for an interest-style return.
So far, the co-op provides access
to 40km of fibre spine network. Virgin
Media will be a user member.
Tony Reddington, Virgin Media’s
Project Lightning build director, said:
“I am very much looking forward to
working with the Tameside Digital
Infrastructure Cooperative and supporting
its aims to maximise the availability
of high capacity digital infrastructure
across the region. Having overseen recent
Project Lightning investment in Tameside,
including the expansion of our fibre
network to over 7,000 premises in Hurst,
I am passionate about supporting the
region’s digital ambitions.”
TDIC has benefited from a £2m
investment from the Department of
Culture, Media and Sport (DCMS). Minister
for digital, Margot James, said: “As part of
our Local Full Fibre Networks Programme,
the government has invested over £2m
in unlocking public infrastructure in
Tameside for wider commercial use. We are
delighted to see the Digital Infrastructure
Cooperative improving the availability of
gigabit-capable infrastructure locally and
strengthening the case for it to be adopted
as a model by other local authorities
across the UK.”
10 | MAY 2019

CO-OP GROUP
Co-op Group announces
gender-neutral
gingerbread person
The Co-op Group is preparing its
latest product line – a gender-neutral
gingerbread person – as part of its drive
for more inclusion and diversity.
The retailer is now asking
members to suggest a fitting name
for the product, which will include
special seasonal releases, giving it
“a distinctively Christmassy look for
December and something rather spooky
around Halloween”.
It adds: “We’ll need a name that works
for any time of year and is gender neutral.
Our Food team will create a shortlist of the
ones they think will best fit the bill and
we’ll be back to ask you to vote for your
favourite next month.”
A spokesperson said: “Inclusion
and diversity lie at the heart of the
Co-op’s values and we’re looking to create
a character which can be used to celebrate
different occasions through the year and
will appeal to all our customers.
“We’ve got some great ideas for what the
new characters might look like and we’re
pleased our first one is already famous.”
This is not the first time the Group has
turned to its members for help in naming
and designing products. Over the past
three years it has sought input on dozens
of products – including pizzas, wine
and beer.
Contributions from members range from
tasting sessions to writing descriptions on
the labels for beer bottles.
All aboard Southern Co-op’s animal magic bus
A community bus in Southwich got a
makeover thanks to a Southern Co-op
funeral co-ordinator. Thomas Parfitt from
the Co-operative Funeralcare in Frome
spent five days painting the bus at Hope
Nature Centre, using materials bought
through a £300 donation from the Southern
Co-op. The bus will be used at the centre to
help train people with learning disabilities
in animal care and catering skills.
Successful growth for South Manchester Credit Union
South Manchester Credit Union (SMCU) has
reported a successful year of growth – with
lending and assets increasing by around
a third in the year, surplus almost tripling
and membership reaching just under 4,000.
The increases follow a successful merger
with Fallowfield Credit Union, and a new
approach to marketing through Facebook,
said the credit union at its AGM.
Central England Co-op’s Martyn Cheatle bids fond farewell
Martyn Cheatle has retired as
chief executive of Central England
Co-operative, with the society hailing a
legacy of growth and modernisation over
his nine years at the helm. Mr Cheatle
supported significant investment of over
£300m, which has grown the number
of food stores from 168 to 266. He is
succeeded by Debbie Robinson.
Co-operative lender celebrates best ever year
Co-op loan fund BCRS Business Loans has
reported a record year with a 38% growth
in lending to small businesses in the West
Midlands. Run on a non-profit distributing
basis and owned by its member investors,
BCRS is committed to lending to viable
businesses in the West Midlands that have
been unable to find mainstream funding.
Labour/Co-op candidates standing for local election
A total of 503 Labour/Co-op candidates
are standing for this year’s local elections
across England – up 123% from when
these seats were last contested in 2015.
The Co-op Party has candidates in 149
councils out of 248 (60%), with another 28
town/parishes, one metro mayor and one
mayoral candidate.
MAY 2019 | 11

CO-OP GROUP
Fairtrade, responsible
sourcing and colleague
safety on the 2019 Co-op
Group AGM agenda
The Co-op Group AGM takes place in
Manchester on Saturday 18 May, with
members able to vote on decisions
(motions) that affect the way it does
business and in directors and Members’
Council elections.
What do this year’s motions cover?
Motions put forward by the board
and Members’ Council cover topics
including political donations, colleague
safety, a commitment to Fairtrade and
responsible sourcing.
Motion 9, a joint board and council
motion, welcomes the Group’s Safer
Colleagues, Safer Communities campaign
launched in December 2018, but notes
with great concern “the unprecedented
levels of violent, weaponised attacks on
Co-op colleagues in stores throughout
the UK”. “This level of violence reflects
that in wider society which has been so
tragically highlighted in recent months,”
it reads.
The motion asks members to support
the board as it maintains levels of
investment in technology and security
measures to keep colleagues safe, and
builds on increased support to community
groups who tackle the root causes
of violent crime.
Motion 10, a council motion,
acknowledges the Group’s performance
in Fairtrade and “applauds our Co-op’s
decision to sign up to the International
Fair Trade Charter at a time when some
retailers are reducing their commitment
to Fairtrade.” But, it adds, “working
with Fairtrade groups and our members,
this AGM wishes to further strengthen
support for Fairtrade producers.”
The motion calls for greater
emphasis on Fairtrade campaigns and
communications, for increased visibility
of Fairtrade products throughout the
year, and for the organisation to “fully
report our financial support of Fairtrade,
including the value of Fairtrade and its
impact on producer communities, in
a transparent way”.
Motion 11, another council motion,
addresses responsible sourcing in the
context of climate change. It applauds the
progress made on responsible sourcing
to date, but “calls upon the board to
accelerate action to mitigate and reduce
the impacts of the Co-op on the natural
world,” to ensure a natural environment
“we are proud to pass on to future
generations”.
Co-op Group elections
Members are also invited to vote in the
member-nominated director (MND) and
Council Member elections.
The Group’s board includes four seats
for MNDs. This year there are two 3-year
MND vacancies, and three candidates
to choose from: existing MNDs Paul
Chandler and Gareth Thomas, and a
new candidate Sarah McCarthy-Fry.
Ms McCarthy-Fry is finance director at
12 | MAY 2019

Electing your Member Nominat
p Paul Chandler, Gareth Thomas and Sarah McCarthy-Fry are standing for two member-nominated director seats
GKN Aerospace and a former Labour and
Co-operative MP (2005-2010).
The 100-strong National Members’
Council has 24 seats up for election across
11 of its constituencies, with 128 candidates
on the ballot sheet. Full details of all
candidates by constituency is available at
co-operative.coop/council-elections.
“I’d like to thank Council Members for
their continued commitment, creativity,
passion and ingenuity,” said Council
president, Nick Crofts. “Our positive and
constructive relationships with the board
Co-operative businesses traded with in
ENVIRONMENT
the last 12 months
Midcounties Co-op launches awareness drive to cut plastic pollution
Food, Electrical and Insurance
Midcounties Co-operative has launched a
new initiative, 1Change, to reduce singleuse
plastic throughout its operations.
The scheme will display information in
40 Midcounties stores, to help consumers
make better purchasing decisions and
change their behaviour around the
disposal of single-use plastic. The society
hopes to inspire people to take small steps
that can collectively make a big difference.
The signage will also highlight key
changes the society is making to reduce
and the executive are a testament to
what we collectively want to accomplish
for our members. As 2019 is the Co-op’s
175th year, I’m excited to celebrate and
share the co-operative difference that
unites us.”
Members are eligible to vote if they
spent over £250 in Co-op Group food
Occupation
stores (or bought a qualifying product
from one of its other businesses).
Members can vote online at ersvotes.com
Gareth Thomas
/coopagm2019 using the two voting codes
found in the letters or emails that will be
single-use plastic. Midcounties wants to
reduce waste in its operations by 20%
by 2022, while maintaining its current
99% recycling rate. Achieving this target
will mean diverting 3,000 tonnes of
operational waste from landfill and save
£200,000 a year on costs.
Social responsibility manager Mike
Pickering said: “We have been working
hard to raise awareness of the important
issues of waste, plastic and sustainability,
as well as changing our own operations,
sent to them by 29 April 2019. Voting on
motions can be done online by 13 May or
in person at the AGM. Voting for MNDs
and Council Members closes on 13 May
and results will be announced online
on 16 May.
Members are also welcome to attend the
AGM in person, at Manchester Central on
Saturday 18 May, where they can vote on
motions in person, take part in workshops,
meet colleagues and other members in
Co-op Member Nominated Director
the marketplace, and hear the results
of the elections.
and 1Change is designed to help us, our
members and the next generation, deliver
tangible results.
“The introduction of the unique pointof-sale
material will help inform and
guide the public on single-use plastic and
clearly signpost where they can make a
change in their own purchasing or waste
disposal behaviour.”
The messages on display range from
advising shoppers to bring in their own
container to use at the deli counters,
sharing information on Midcounties’
products such as tomatoes that are
now in cardboard packaging, through
to choosing loose fruit and vegetables.
Midcounties is also engaging the next
generation through 1Change as part
of its ‘Plastic is Not Fantastic’ schools
programme, with a target of reaching 50
educational establishments by 2022.
And the public can get involved by
making their own 1Change pledge to
reduce single-use plastic, at s.coop/22fgb
As a current MND, I’ve engaged fully in
Board discussions - bringing leadership
experience from my former role as retail
director of the UK’s biggest
employee-owned business (John Lewis).
I’ve learnt through listening to
Co-op colleagues and members, visiting
stores, Academy schools and other
co-operatives, and by participating in
every Members’ Council meeting.
I’ve championed the importance of
colleagues as a priority, and through
them, enhancing all aspects of member
experience.
MAY 2019 | 13

4

GLOBAL UPDATES
AUSTRALIA
New co-op law sets ‘milestone’ example for other countries
Australia’s Business Council of
Co-operatives and Mutuals (BCCM)
has welcomed landmark legal reforms
through the Treasury Laws Amendment
(Mutual Reforms) Act 2019.
BCCM has been at the forefront in
advocating and developing the new law,
which opens up new opportunities for
co-ops and mutual businesses to grow
while safeguarding their mutuality for
future generations.
It includes a legal definition of mutual
entities, which recognises mutuals as
a legitimate business model in highly
competitive sectors.
And a major change for mutuals and
members is the expanded ability to raise
capital, enabling growth in a broad range
of industries.
“It highlights the valuable role of
mutuals and creates more competition in
business, giving customers more choice,”
said Melina Morrison, BCCM’s CEO.
“This levels the playing field and gives
mutuals the opportunity to compete with
the larger, listed entities including the
big banks. Stakeholder-owned business
models ensure customers are put first
in all transactions.
“In this era of accountability, we are
pleased for our members that all sides of
parliament have acknowledged the social
conscience of our sector. We thank both
major parties for the ongoing bipartisan
support that has led to the changes.”
Michael Lawrence, CEO of the Customer
Owned Banking Association (Coba), also
welcomed the changes, and praised the
bipartisan support from legislators.
He said: “From its inception right
through to its passage, this bill has had
resounding support from all sides of
politics. There is a clear understanding
among members of parliament that this
bill will help customer-owned banking
institutions become more competitive and
take on the ‘Big Four’.”
He added: “Our sector is grateful for
the support and advocacy from both
sides of politics and the Parliamentary
Friends of Mutuals and Co-operatives for
their unwavering commitment to passing
this Bill.
“Being able to raise capital will allow
customer-owned banking institutions to
allocate more funding to projects that will
deliver greater choice and competition
for consumers.
“With greater competition comes
greater consumer outcomes. This is a
milestone for competition in the banking
sector and one that will only help improve
customers’ outcomes.”
Brian Branch, president and chief
executive of the World Council of Credit
Unions (Woccu), said other countries
could learn from the reforms because they
had given Australia’s credit unions and
mutual banks greater flexibility than their
overseas peers to grow their businesses.
Mr Branch told news website Banking
Day: “In other countries such as the
United States, credit unions are limited
to funding their businesses through
retained earnings, which puts a break on
their growth.
“We’ve seen some experimentation
in Canada that was largely around
subordinated debt but it was simply too
expensive. The Australian reforms are
a milestone.”
Mr Branch was leading a delegation
from the US credit union sector to
Australia, which also included Jim Nussle,
president of the Credit Union National
Association (Cuna). The delegation was
hosted by Coba.
Connecting people with progress
Securing future economic development
What do we need for
economic development?
Health and wellbeing
Australians have a high quality
of health and wellbeing.
Environmental stewardship
Australia’s built and natural
environment is managed well
and sustainably.
Social cohesion
Our society is cohesive,
enhances wellbeing and provides
equality of opportunity supported
by a strong social compact.
Education
An accessible, world-class
education, enabling people
to realise their potential.
Global links
Australia has strong
economic, diplomatic
and cultural links to the
rest of the world.
Competitive business
A vibrant and trusted business
sector that is globally competitive
and connected.
Effective government
Governments are stable and
effective and working well
together, to balance budgets,
deliver critical services,
provide a social safety net
and maintain law and order.
Jobs and participation
People participate in the
workforce and society to the
greatest extent possible.
Financial security
Australians have sufficient wealth
and income to meet their needs
through their life.
p Melina Morrison, chief executive of BCCM
An infographic from the ‘Connecting people
with progress’ report
What have we done well?
What do we need to
improve?
Education
Today almost 85 per cent of
secondary school students
complete Year 12 compared
to 23 per cent 50 years ago.
Australian students’ PISA results
for science, maths and reading
have consistently declined.
Effective infrastructure
Australia’s infrastructure is
well planned, built, funded
and utilised, providing
convenience, amenity and
opportunity for business
and the community.
Effective infrastructure
The volume of domestic freight has
tripled in the last 30 years.
Australia’s quality of infrastructure
lags other advanced economies.
The costs of traffic congestion are
expected to rise to $30 billion by 2030.
Social cohesion
Overall levels of inequality
have not risen since the GFC.
Indigenous Australians
Health and wellbeing
Australians’ average life expectancy
at birth has increased by more than
10 years since 1960.
MAY 2019 | 15
The burden of preventable diseases
is increasing.

USA
US credit unions respond to Trump’s housing finance reform
As the Trump administration looks to
reform housing finance, US credit unions
are calling for new measures to ensure
member-owners are not at a disadvantage.
On 27 March, president Trump signed
a memorandum instructing federal
agencies to develop a plan to overhaul
the US housing finance system. This
sets out a reform plan for the Federal
National Mortgage Association – Fannie
Mae – and the Federal Home Loan
Mortgage Corporation – Freddie Mac.
The government-sponsored enterprises
(GSA) have been in conservatorship since
their federal bailout in September 2008.
Mr Trump has pledged to end this
conservatorship, improve their regulatory
oversight, and promote competition in the
housing finance market.
The Senate Banking Committee also
held a two-day hearing in which it heard
from Carrie Hunt, executive vice president
of government affairs and general counsel
of the National Association of Federally-
Insured Credit Unions (Nafcu). She
said Nafcu members used both Fannie
Mae and Freddie Mac to sell and securitise
their loans and used the Federal Home
Loan Bank system for liquidity.
She added that credit unions must
have guaranteed access to the secondary
mortgage market and that access must
be fair. Credit unions must be able to
participate on a level playing field and
have access to pricing that is focused on
quality not quantity, she said.
“We do not support a pricing structure
based on loan volume, institution asset
size, or any other issue that will put our
member-owners at a disadvantage,”
she told the committee, adding that an
explicit government guarantee should be
part of any reform effort.
Nafcu also believes Congress should
not be mandating requirements, such as
a minimum down payment percentage.
“This is a requirement that may be put
in place by the regulator and should
be flexible to account for economic
fluctuations in the housing market,”
said Ms Hunt.
And she stressed the need for a single
independent regulator to provide stability
and confidence in the market and
said credit unions had general concerns
about overall costs and workability,
including the transition, to any new
housing finance system.
The Credit Union National Association
(Cuna) has set out its own concerns in a
letter to committee chair Mike Crapo.
“As important as it is to act to reform
the secondary mortgage market, it is
even more important to get it right,” it
said. “Cuna and our members continue
to believe that for credit unions and their
members, getting it right should mean
one thing: Community lenders must
be at the core of the future secondary
mortgage market.”
Cuna has identified several principles
crucial for credit unions and other small
lenders to continue to provide affordable
mortgage credit. These are equal access to
lenders of all sizes; affordable mortgage
payments; a reasonable and orderly
transition to a new system; strong
oversight for market entities; a federally
insured system for durability; and
preservation of things that work in the
current system.
Credit unions have also called for
fairer regulation at global level, during
a meeting with the Basel Committee on
Banking Supervision.
Leaders from credit union sectors
in the USA, Canada, Australia and the
World Council of Credit Unions (Woccu)
voiced their support for proportionality
in the meeting, held at the end of March.
They argued that credit unions
should not face expensive compliance
standards that were written for
multi-national banks.
In a follow up letter sent on 3 April,
Woccu urged the committee to issue
a set of high-level principles or weighingfactors
that national or regional-level
regulators can consider.
Now Woccu wants the committee to
welcome public consultation on the
issue from a range of smaller banking
institutions, including co-operatives.
p Woccu representatives with the chair of the
and Basel Committee
16 | MAY 2019

SRI LANKA
Co-operative condolences to Sri Lanka
The global co-operative community has
been sending messages of condolences
to Sri Lanka following the coordinated
terrorist attacks on 21 April 2019 in which
over 350 people were killed and at least
500 were injured.
The first co-operative society in the
country was set up in 1904 and the first
co-operative law enacted in 1911. The
Sri Lanka civil war (1983-2009) and the
2004 Indian Ocean earthquake and
tsunami caused substantial damage to the
movement, but the country is now home
to over 14,500 co-operatives in sectors
including banking, insurance, agriculture
and retail.
The UK’s Co-operative College has run
training programmes in Sri Lanka, in
consultation with local partners, to help
co-operative development in the north
of the country. It tweeted: “As Sri Lanka
comes together for a day of mourning,
we’d like to send our condolences to all
those affected by the terrible events. As
an organisation that has worked there, we
know that it’s a country full of wonderful,
kind and compassionate people.”
In a statement, the International
Co-operative Alliance-Asia and Pacific
(ICA-AP) said: “Our deepest sympathy
and solidarity to friends, colleagues and
co-operators in Sri Lanka. On behalf of cooperatives,
and the Global Youth Forum
team, we stand with you during this
difficult time. We are closely monitoring
the situation on the ground and are in
contact with our partners & friends.”
Sri Lanka is due to host the 2019
Co-operative Global Youth Forum (GYF) in
the capital, Colombo, from 22-26 July.
A statement from the International
Co-operative Alliance (ICA), which is
organising the event, said that following
the attacks it was “currently monitoring
the situation on the ground and in close
contact with our partners”. The ICA hopes
to confirm if the event is still going ahead
at the start of May.
ICA-AP regional director, Balu Iyer
said: “It is early days and we need to see
p Credit: Instagram: @apsi_doodles
how the situation evolves. I am hoping
things will settle down. We hope to have
a meeting with our members to take
stock and provide guidance. The GYF
is three months away, so I would keep
my fingers crossed and hope things stay
on track.”
The ICA added: “Please submit your
messages for peace at contact@gyf19.coop
and we’ll send them to our Global Youth
Forum 19 partners.”
USA
US financial co-op donates to flood disaster relief fund
Co-op Financial Services – payments and
technology partner to the US credit union
movement – has donated $10,000 to the
American Red Cross for disaster relief after
devastating floods in the Midwest.
“Overwhelmed levees, water quality
concerns and more recent rains are
contributing to the need for aid,”
said Todd Clark, president & CEO for
the organisation.
“Our donation is tied to the foundation
of the credit union movement – people
helping people. We have also been
contacting clients and co-op employees
in the Midwest to assess needs and
determine where we can additionally help.
The safety of credit union employees,
their members and our own employees is
our paramount concern.”
Co-op Financial Services has more
than 200 credit union clients in the worsthit
states of Iowa, Missouri, Nebraska
and Wisconsin. The organisation
manages two industry networks that
p The National Guard lay sandbags along a levee in Elwood, Kansas, during March’s flooding
(U.S. Air National Guard photo by Tech. Sgt. Patrick Evenson)
can service credit unions members
throughout the USA whenever they
are away from home – and can play a
critical role in times of natural disaster.
The Shared Branch network includes
5,700 credit union branches nationwide,
enabling members to enter any branch
and conduct business as if they were
at home.
Donations to the American Red Cross
can be made at: redcross.org/donate/
disaster-relief
MAY 2019 | 17

SINGAPORE
Freelancers co-op joins campaign to have
hawker culture recognised by Unesco
p Above: The six founding members of Istoria co-op; a hawker food stall in Singapore
A freelancers’ co-op from Singapore is
contributing to a campaign to have the
country’s hawker (street food) culture
recognised by Unesco.
In March, the Singaporean government
submitted its nomination for inscription
into Unesco’s Representative List of the
Intangible Cultural Heritage of Humanity.
The UN agency is expected to make
a decision by the end of 2020.
An integral part of the life of
Singaporeans, hawker culture in the
island can be traced back to the mid-1800s.
Between 1968 and 1986 the government
licensed and resettled street hawkers into
purpose-built hawker centres – there are
now more than 110 such centres.
Istoria Co-operative, which brings
together freelancers from creative
industries, is playing a key role in
promoting Singapore’s hawker culture.
The co-op presented its portfolio of
pictures to representatives from the
Ministry of Communications and
Information and Makansutra and was
selected to take part in an exhibition.
Istoria is a Greek word for story
telling, says Ronald Low, one of the
founding members of the co-op, whose
photos formed part of the exhibition.
“It was heartening to be part of the
#OurHawkerCulture campaign, which
is not just about food,” he said. “It
represents our memories of growing up
and spending time with family and friends
over delicious and affordable food”
Founded in November 2018, Istoria has
more than 15 freelancers on its roster. It
is run by its six founding members who
have experience in the creative industries,
as well as corporate and financial sectors.
Mr Low, who has taught at various
schools as well as the Singapore
University of Technology & Design, says
Istoria champions the sustainability
of freelancers in the creative industries,
particularly in sectors like design,
photography and videography.
To become a member, freelancers
submit a portfolio of work and references,
and pay a one-off membership fee of S$60
(£33.96).
In today’s disruptive and competitive
environment, the co-op can help
freelancers pool resources and share
experience, says Mr Low.
“We believe the co-operative model is
an appropriate structure as freelancers
need to come together as a collective for
greater bargaining power and also to
address clients’ needs. Photography skills
are often a subset of a bigger assignment
such as editorials or events management.
The co-operative would also provide the
necessary admin/other support so that
the freelancers can focus on their craft.”
The co-op received advice from
the Singapore National Co-operative
Federation (SNCF) during the process
of setting up. It is currently applying to
receive the New Coop Grant administered
by SNCF on behalf of the Central
Cooperative Fund.
Official statistics from 2016 revealed
there were 180,000 freelancers in
Singapore, accounting for about 8%
of Singapore’s working residents. As
the figure is expected to rise due to
technological advances, SNCF chief
executive Dolly Goh is encouraging other
freelancers to consider setting up co-ops.
She said: “The co-operative model
offers freelancers a means to secure a
sustainable future as the values and
principles that underpin co-operatives are
the same issues that resonate with them.
“It will help them to create a shared
vision of the kind of work environment
and the type of clients they want as well as
the impact on the community. We would
like to encourage more people to come
together to form co-operatives.”
18 | MAY 2019

ARGENTINA
Worker co-op creates free co-operative video game
An Argentine worker co-op that develops
free software has created a video game
to promote and encourage co-operation
among young people.
Entitled Simón Pugliese, the game
was developed by Argentinian tech
co-operative Gcoop in association with
the Institute of Co-operation (Idelcoop)
and the National University of José C.
Paz (Unpaz) – as part of the university’s
Co-operativism and Social Economy
Programme.
The game pays homage to renowned
tango musician Osvaldo Pugliese (right),
whose melodies are used in a playful,
didactic way for the user to learn about
co-operative values and principles.
The rules of the game are very similar
to those of the traditional Simon Says,
with players required to copy Osvaldo
Pugliese’s melodies. There are also
materials for teachers to work on the
co-operative theme inside and outside the
classroom.
Unpaz provided academic support to
the project, Gcoop provided technical
development and Idelcoop contributed
the co-operative content. Illustrations
were created by Claudio Andaur and the
melodies that play at the end of each level
were made by Mateo Monk.
The game is free to download for all
devices at simonpugliese.com.ar
SPAIN
Eroski Co-op
signs agreement to hire
people over 45
Spanish retail co-op Eroski has signed
an agreement with the government
of the Balearic Islands to encourage
hiring people over 45 who have been
long-term unemployed.
The agreement was signed by Balearic
Islands minister of labour, commerce and
industry, Iago Negueruela and Alfredo
Herráez, Eroski’s territorial director in the
Balearic Islands.
The food retailer, which forms part
of the Mondragon Group, has a 5.6%
market share of grocery stores in Spain,
with a network of 1,651 outlets.
Under the Balearic Islands Employment
Service’s (SOIB) ‘Visible’ programme,
Eroski will promote the recruitment
of long-term unemployed people over
the age of 45 – who have more difficulty
accessing the labour market.
The Visible programme works with
organisations in the Balearic Islands
to help long-term unemployed people
into work and gain the skills and
confidence to compete in the labour
market. The year-long agreement with
the programme will see Eroski select, hire
and train long-term unemployed people
– and gain certification from SOIB for
doing so.
The signing of the agreement formed
part of the Eroski 50th anniversary
celebrations that took place in Palma on
the island of Mallorca.
MAY 2019 | 19

EUROPE
Cecop calls for stronger social economy in run-up to EU elections
With European elections approaching,
Cecop, the European federation of
industrial and service co-operatives, is
calling on EU institutions to continue
their support for the sector.
Cecop joined six other European
networks in calling for stronger social
economy and social innovation measures.
Along with the European Microfinance
Network, the Euclid Network, the
Microfinance Centre, RREUSE, Caritas
Europe and ENSIE, it has developed a
set of recommendations for candidates
standing for election.
Founded in 1979, Cecop has 27
member organisations across 15
European countries.
The manifesto notes that 2.8 million
social economy enterprises employ 19.1
million people and account for 6.3% of the
total paid workforce in Europe.
It argues that Europe could transition
towards a more sustainable, inclusive
economy – if it has the right policy
framework and financial support.
The network calls on European
institutions to set the European Pillar of
Social Rights as a priority in the future EU
agenda, and encourage member states to
implement it.
It calls for consistent legal frameworks
for social enterprises and microfinance
institutions and improving the ease of
access to EU (financial) support for social
enterprises and microfinance institutions.
EU elections candidates are also
advised to encourage public authorities
to increase the number of public
procurement contracts awarded to social
enterprises.
The network suggests incentivising
member states to reduce value-added tax
for activities contributing to social welfare
and maintaining the Social Economy
Intergroup in the European Parliament
during the next parliamentary cycle.
EUROPE
Election time is
coming to the EU – and
the co-op movement
wants its voice heard
at the ballot box
With European elections approaching,
sector body Cooperatives Europe has
published a strategy paper outlining its
key priorities and recommendations.
It has also started a campaign, Coops
Inspire Change, to build a new network of
co-op supporters – candidate MEPs who
pledge to support the recommendations
of the co-operative movement. This will
also encourage co-operative communities
to vote and ask members to share stories
of co-operation.
Another strand of the campaign is the
newly launched elections.coopseurope.
coop website, which showcases existing
co-op supporters, and a social media
campaign, #CoopsInspireChange.
According to Cooperatives Europe, one
in five people in the EU is a member of a
co-operative. It says the social economy
should be recognised as a key segment
of the economy and the European Pillar
of Social Rights (EPSR) should remain a
priority on the political agenda.
Other policy goals include an
appropriate and enabling regulatory
framework for co-ops; investment in
young people to help them develop
co-operative entrepreneurial projects;
and recognition of co-ops as development
actors. The strategy also touches on
environmental sustainability, gender
equality and female entrepreneurship
policies, among others.
Cooperatives Europe has also signed a
partnership with the European Parliament
to encourage people to vote. It is asking
co-operators and supporters to pledge
#ThisTimeImVoting at www.ttimv.eu/
cooperatives and share the link.
Jean-Louis Bancel, president
of Cooperatives Europe, said: “In building
up a sustainable Europe, the incoming
members of the new European Parliament
can rely on the co-operative movement to
link their actions to citizen’s needs. This
campaign is not only about the election,
but about a new vision for the future.”
20 | MAY 2019

GLOBAL
ICA launches
Rochdale Pioneers
Award 2019
p Dame Pauline Green with her award at the
Rochdale Pioneers Museum
Nominations are open for the International
Co-operative Alliance’s (ICA) Rochdale
Pioneers Award.
The award is the highest honour the
ICA bestows, to recognise – in the spirit
of the Rochdale Pioneers – an individual
who has contributed to innovative and
financially sustainable co-operative
activities that have significantly
benefited co-operative members. Under
special circumstances, a co-operative
organisation can be recognised.
Previous winners include former
Co-operative Union chief executive Lloyd
Wilkinson; former Co-operatives UK chief
executive and ICA president Dame Pauline
Green; and the Plunkett Foundation.
The 2019 award will be presented in
Kigali, Rwanda, during the biennial ICA
Conference on Development and General
Assembly, which takes place from 14 to
17 October 2019.
A nominee’s achievements must:
• Visibly demonstrate benefit to the
global co-operative movement
• Be innovative
• Be financially sustainable and
of a permanent nature
• Be a leader in the co-operative
movement
• Demonstrate commitment to the
co-operative principles
The winner will be selected by an ICA
board-appointed committee.
For further details and to download
nomination forms, visit www.ica.coop. Fully
completed forms and required documents
should be sent to hacquard@ica.coop. The
deadline for nominations is 1 July 2019.
Fund for co-op and social enterprise PhD students
The 7th EMES Research Conference takes
place in Sheffield on 24-27 June 2019 –
and a new fund aims to help unfunded
PhD students and early career researchers
participate in the event. The funding
would cover the travel, accommodation
and conference fees of at least five
researchers from non-OECD countries.
For more info, visit s.coop/22f7o
Social Co-operatives International School 2019
Federsolidarietà – Confcooperative,
Italy’s largest federation of social
co-operatives, has announced the dates
for its fifth annual Social Co-operatives
International School (SCIS). The three day
event will be held on 24-27 October 2019
at the Hotel Royal Continental in Naples,
Italy. It is open to social co-operators and
social entrepreneurs.
Desjardins services now available via Google Assistant
Desjardins members are now able to access
their accounts by using voice commands
in English or French. The service,
available to users with devices powered by
the Google Assistant, will enable them to
check their latest transactions and credit
card balance. To access their accounts,
users will have to provide a four-digit
security code. Consumers use voice for 20%
of their Google searches now.
Need for a global knowledge platform for health co-ops
The International Co-operative Health
Organisation (IHCO) is assessing the
possibility of creating a global knowledge
platform to promote and support co-ops
and mutuals in providing health services.
The ILO has launched an online survey to
help gain an understanding of the needs
for such a global knowledge platform.
Uruguayan government backs co-ops in tourism sector
A co-op development programme
in Uruguay has added two tourism
enterprises to the latest projects it has
chosen to support – as part of its remit to
develop co-ops in sectors not traditionally
associated with the business model. In its
latest funding round, six projects will be
supported, with two of them in tourism.
MAY 2019 | 21

MEET...
Meet ... Nicola Huckerby,
marketing specialist
Nicola Huckerby is a co-operator and marketing specialist who lives in Devon
with her husband and three dogs. She runs Co-op Brand Ltd and works with
organisations including the Co-operative Councils Innovation Network and
Co-operative College. She is also is vice-chair of Revolver Co-op.
HOW DID YOU FIRST GET INVOLVED WITH
CO-OPERATIVES?
I won a job with the Co-op Group as membership
officer for the south west, providing support to
area committees. That was in June 2010; in the
December, a job came up at the International Cooperative
Alliance, on secondment from the Co-op
Group, based in Geneva. I asked if I could apply
for that and had 100% support from the Group. I
started in the January, and moved to Geneva for
sixth months, with the post funded by the Group
as part of its commitment to the International
Year of Co-operatives. I put the communications
plan together with the ICA board, working with 23
individuals from different countries, and did the
launch with the UN in New York – it was a pretty
amazing experience to work with people around
the world; it was a once in a lifetime opportunity
that I grabbed with both hands.
WHERE DID YOU GO FROM THERE?
At the end of that six months I was offered the role
of director of communications for the ICA, working
at home from Devon. I did that for a couple of
years. In my final year there I was given the task of
developing a global brand for co-ops to replacing
the rainbow flag with a brand for co-ops all over
the world to use alongside their own, to position
themselves as part of the global movement. We
CO-OPERATIVES GIVE
YOU AN OPPORTUNITY TO
DO THINGS DIFFERENTLY.
WE SHOULD WELCOME
CHANGE AND NEW IDEAS
searched globally for an agency and ended up
working with Calverts, the London-based worker
co-operative. The Coop marque was launched in
Cape Town, South Africa at the end of 2013 – we hit
the target of 100 countries using the brand ahead
of schedule.
After that I moved to domains.coop, a subsidiary
of the ICA where I promoted the global Coop
Marque and dotcoop domain, and had the chance
to develop my own business, Co-op Brand Ltd.
My first major contract was in June 2016, when
I began working with the Co-operative Councils
Innovation Network (CCIN) promoting their
communications, membership and events. I was
thrown in at deep end organising their attendance
at Co-operative Congress, two weeks after I started.
It was ideal for me because I’d been in movement
for five years and knew a lot of people.
WHAT DO YOU THINK THE CO-OP MOVEMENT
COULD BE DOING BETTER?
My role at CCIN was perfect for me because I always
thought there were two things we could do better
– promote co-ops in local authorities, and promote
them in schools. So this job was a real coup, I was
over the moon. Since June 2016, the network has
gone from 19 council members to 53 councils and
organisations.
Then, last year, I was asked to coordinate
centenary celebrations for the Co-operative College
– which, in a way, delivers that other element:
promotion in education. Everybody is touched by
their local authority; and on the education side,
kids have parents, grandparents, neighbours ...
It’s an exciting opportunity to promote co-ops, and
to promote an international event for the College.
22 | MAY 2019

The 2019 Co-operative Press
Annual General Meeting
WHAT OTHER OPPORTUNITIES ARE THERE
FOR THE MOVEMENT TO COMMUNICATE ITS
POTENTIAL?
One of the challenges is in local authorities. The
movement is very interlinked and networked – but
although the politicians and officers on councils
understand it, how do you disseminate that
understanding across all council departments?
It’s exciting at the moment with the Greater
Manchester Combined Authority setting up its
co-operative commission. It is looking at how
co-ops can deliver more effectively – it’s the first
regional government to be called a co-op region,
and it’s had the foresight to bring in people from
different sectors. The next opportunity is to get
regional government more involved elsewhere in
the country – in Merseyside we’ve got Halewood
and Knowsley councils, and Liverpool. Then on
the other side of the country we have Newcastle,
Sunderland, Hull and South Tyneside. How do you
get them to work together and push those ideas
down within the councils? It’s OK for the leader
to have co-operativism in their portfolio, but how
do you push it down across all levels, so residents
can see policy being implemented with them at the
centre of decision-making?
WHAT ARE YOUR OTHER ROLES?
I’m vice-chair of Revolver, the coffee co-op; and
in 2017 I helped set up Bovey Futures in my home
town – Bovey Tracey in Devon – which works with
the council to develop services. There’s no point
talking about things, you have to participate and
have your say. There’s no challenge to which there
isn’t a co-operative solution. If you look around the
world there’s other ways of delivering services, and
that’s what is so exciting because you can never
know everything. Working for the ICA gave me a
wonderful perspective to bring people together
from other places.
HOW CAN THE CO-OP MOVEMENT IMPROVE WHAT
IT IS DOING?
Co-ops give you an opportunity to do things
differently. We should welcome change and new
ideas. If you look at the demographics in a lot of
sectors of the movement, it’s an older one, and
we need to get younger people in so they can add
their experiences and learn from older people. If
you look at tech and platform co-ops, there’s some
really exciting developments. There’s also room
for more engagement and involvement. If you ask
people to involve themselves, they say yes.
10.30am –3pm, Friday 31st May 2019
Pauline Green Room, Holyoake House, Manchester
(10.30am coffee | 11–12.30 AGM | 12.30 –1.30
lunch 1.30 –3pm 150th anniversary workshop)
In accordance with Rule 20 of the Co-operative
Press Rules, any member may submit a proposal
to the Annual Meeting of members in writing to
the Secretary. The timetable is as follows:
Friday 17 May 2019
Closing Date for Receipt of Proposals
Monday 20 May 2019
Agenda and Proposals sent out to members
Monday 27 May 2019
Closing date for receipt of amendments
With regard to amendments to any proposals
(as stated in Rule 21), any member may send to
the directors any amendment to any proposal
appearing on the agenda or any amendment to any
matter forming part of the business of the meeting,
and provided such amendment be received by the
secretary prior to the Annual Meeting, it shall be
circulated to members as soon as is practicable as
an additional business paper for consideration at
the meeting.
Please note that by submitting a proposal,
members are committing themselves to attend
the Annual Meeting if their proposal is accepted
onto the Agenda.
The Secretary
Co-operative Press Ltd, Holyoake House, Manchester, M60 0AS
secretary@thenews.coop

YOUR VIEWS
KEEP SANITARY PROTECTION SAFE
Great news that co-ops are contributing
to assisting girls who can’t afford sanitary
protection at school. Just a word of
warning though: toxic shock syndrome
is caused when bacteria (usually
a strain of Staphylococcus aureus,
which lives harmlessly in the vagina)
comes into contact with rayon in the
tampon. So please ensure that you only
provide all-cotton tampons to vulnerable
school girls.
I’d also like to add that the Alice Kilvert
Tampon Alert group assisted the Co-op
Group with warnings about toxic shock
syndrome, following the death of 15-yearold
Alice Kilvert in Manchester in 1991.
Good luck with the campaign.
Peter Kilvert
(Alice’s father)
Have your say
Add your comments to our stories
online at www.thenews.coop, get
in touch via social media, or send
us a letter. If sending a letter, please
include your address and contact
number. Letters may be edited
and no longer than 350 words.
Co-operative News, Holyoake
House, Hanover Street,
Manchester M60 0AS
letters@thenews.coop
@coopnews
Co-operative News
GLORY DAYS OF A CO-OP FLAGSHIP
In Hull the former co-operative department
store in Jameson Street is being knocked
down to make way for shop units, an ice
arena and flats. This used to be a major
department store in the city, but closed
some years ago and has been empty
for years.
It was a flagship store with many
departments and area offices for the
Hull and East Riding Co-op Society. The
building had most services, including
not only food, but also a chemist,
opticians and a nightclub. The building
was also joined onto the British Home
Stores (BHS) store, which only closed in
recent times.
Many people use to go and shop in the
city centre Co-op store and it was regarded
as a flagship store in the city. Many people
were employed in this store and will still
be alive today. My parents Margaret and
Albert Treacher were members of the Hull
and East Riding Co-op Society before it
became the Co-op Group, as I am today a
member and proud of this fact.
This store being knocked down will
improve the landscape and bring new
life to the site. But many will remember
this store with great memories and the
shopping they did there.
David Treacher
Hull
LOSS OF THE CO-OP BANK
Have just cancelled my bank account with
The Co-operative Bank when I found out it
was not owned by the Co-operative Group
but majorly owned by American hedge
funds, which I will have nothing to do with.
I trusted the Co-op but not them. Another
piece of Britain sold to America.
Terence Banham
Via email
CORRECTION: George Conchie has
requested that his edited letter which
appeared in the April edition of Co-op
News is reproduced in its entirety.
Peter Hunt endeavours to make the
case for the leaving of the Labour Party,
Co-operative News March 2019, by
attributing it to Jeremy Corbyn’s
“hard left brand of politics” to which
he does not, in my opinion, state
where his complaint really lies.
However, I, in my opinion, as a member of
the Labour and Co-operative Parties, for
many years, suffered, under Tony Blair and
Gordon Brown the Iraq war and PFI leading
to which situation this country is still trying
to extricate itself from, and people who
tried to justify their “destruction”. Having
experienced the right in both the two
parties I was and am glad to no longer be
in parties that do not bear any relation to
why I joined them all those years ago.
George Conchie
CORRECTION
A correction and apology to Mike
Gapes MP: A letter published in the
April 2019 edition of Co-op News made
allegations about historic expenses
claimed in 2009 by Mike Gapes MP,
formerly Labour & Co-operative, now
of the Independent Group. These
allegations are untrue. We apologise
to Mr Gapes for publishing these
inaccurate and defamatory allegations.
24 | MAY 2019

CO-OP PARTY DOES EXIST – AND HERE’S
ITS ACHIEVEMENTS AS PROOF
Leslie Freitag’s assertion that the
Co-operative Party ‘never existed’ in
Parliamentary terms is bizarre [Co-op News,
April 2019]. All Labour & Co-operative MPs
are listed on the Parliamentary website
as such, as they are on the individual
references to them in Parliament’s official
record – Hansard.
The Co-operative Party is listed on the
Parliament website as one of the ‘political
parties elected to the House of Commons’.
More substantively in the last year Co-op
MPs have tabled amendments, questioned
ministers, introduced private members
legislation and initiated debates on a wide
range of topics of interest to the movement
including co-operative development,
support for credit unions, democratic
public ownership, banking reform, modern
slavery and tackling violence against shop
workers. As they have done for 100 years.
I was also surprised that Mr Freitag
chose to critique one of the MPs with whom
he disagrees on the basis of his physical
appearance. Given the all too divisive
nature of some political discourse at the
moment – and the urgent need to bring
people together – I would hope that all
co-operators would be part of raising the
level of debate. The Co-operative Party has
committed itself to being part of building a
politics we can all be proud of, one where
we can disagree respectfully and value
pluralism.
I know we will have the support of many
readers of Co-op News in this regard, even
if not from Mr Freitag.
Claire McCarthy
Co-op Party General Secretary
p The ‘Gang of Four’ launched the SDP in 1981
p Claire McCarthy
In 1981 almost the entire Co-op group in
the House of Commons went to the newly
formed SDP. At that time I was an MEP
and vice chair of the Royal Arsenal Coop
Political Committee. We lost both our MPs,
John Cartwright and Jim Wellbeloved, as
well as our political secretary and GLC
member Paul Rossi.
The fact of the matter is that the
Co-op has a penchant for choosing right
wingers to represent its political
ambitions. Indeed with the noble
exception of Stan Newens I cannot think
of a single MP or MEP sponsored by the
Co-op who was not rather to the right
of the political spectrum.
So your moaning Minnie correspondents
should look at the system that produced
the offending members in the first
place. As someone once said, “Don’t
mourn – organise”.
Richard Balfe
Lord Balfe of Dulwich
RE: RECORD NUMBER OF LABOUR/
CO-OP CANDIDATES STANDING FOR
LOCAL ELECTIONS
Things are better than you report.
In Chipping Norton we have nine
candidates for 16 seats; six women
and three men. All described as
Labour Party even though many are
Co-operative Party members too. All
because we are not allowed different
descriptions – a rule frequently broken, in
my experience. And why the rule?
David
Via website
RE: ALLAN LEIGHTON,
CO-OP GROUP CHAIR,
AND ITS ANNUAL REPORT
(CO-OP NEWS MAY 2019)
"We were in the wilderness for a long
period of time … My view, is that this co-op
was not a co-op for 50 years – but it’s been
one for the last three to five years,” [said
Co-op Group chair, Allan Leighton, Co-op
News, May 2019]
Certainly *a* viewpoint. More of
a sole enterprise out for itself and its sole
stakeholders. If he means breaking new
ground and growing areas that stopped
or weren't grown since the 1950s, such
as a common response to privatised
healthcare, mostly absent since 1948,
then maybe.
Luke Blakey
Via website
MAY 2019 | 25

Cecop-Cicopa Europe and Congress
converge in Manchester
Cecop-Cicopa Europe, the International Cooperative
Alliance branch that promotes worker co-operatives,
social co-operatives and producers’ co-operatives
in industry and services, is hosting its 2019
general assembly in Manchester, where a group
of co-operators set up the organisation in 1979.
The event will take place at the at the Mercure
Manchester Piccadilly Hotel from Thursday
20 to Saturday22 June, bringing together
co-operators from industrial and service
co-operatives from across Europe to mark the
organisation’s 40th anniversary.
At the same time, the countdown is on for the
150th Co-operative Congress, which is being hosted
in the same venue on Friday 21 June and Saturday
22 June.
CONGRESS
Organised by Co-operatives UK, Congress is the
co-operative sector’s annual conference, when
members, directors, activists and CEOs from
co‐operatives large and small come together. The
theme for this year’s event is Building Co-operative
Places, focusing on the impact of co-ops on a world
stage, from a UK-wide perspective, across regions,
towns and cities and local communities.
The two-day programme features international
speakers from some of Europe’s leading co-ops,
while on Friday 21, Andy Burnham, Mayor of Greater
Manchester, will give an update on his aim to create
“the most co-operative place in the UK”. Delegates
will also hear how a coalition of organisations are
campaigning to put communities in charge of post-
Brexit economic development funding, and how
community owned co-operatives are making a real
impact on their local economies and the people who
live there.
Workshops will discuss whether unions can
play a role at the centre of co-ops and look at the
Co-operatives Unleashed programme from
a grassroots point of view. There will also be
a Women in Co-operatives networking event
co-hosted by Co-op Press, the Co-operative College
AGM and Co-operatives UK AGM.
Other sessions will cover the use of co-operative
technology to solve everyday problems and
give power back to the workers and users, will
present locally based solutions to responsible
finance, and look at examples of how co-ops are
using the co-operative difference to stand out in
a crowded market.
The Co-operative of the Year Awards take place
at dinner on the Friday evening, where the winners
of the Leading, Inspiring, and Breakthrough
Co-operative categories will be announced.
The award for Co-operative Council of the Year
will also be presented, along with two additional
awards introduced to celebrate 150 years since the
first Congress in 1869. The Co-operator of the Year
and Lifetime Achievement Award aim to honour
individuals who have contributed to shaping the
co-operative movement.
CECOP-CICOPA EUROPE - GENERAL ASSEMBLY
On Thursday, 20 June, delegates to the Cecop-
Cicopa event will be visiting local co-ops including
Unicorn Grocery. They will also go to the Rochdale
Pioneers Museum, the birthplace of the modern-day
co-operative movement, with the day ending with an
informal dinner at the Eighth Day co-operative.
On Friday 21 June Cecop will be hosting its general
assembly, which will feature an open discussion
about the history of CECOP and its future as the
federation of co-ops in industry and services.
UK delegates will also get to learn about how worker
co-ops in other European countries engage with
social co-operatives.
On Saturday the main themes explored will include
co-operation at a time of crisis. Participants will look
at co-op ownership of digital infrastructure, co-ops
as part of wider social and solidarity economy and
how co-ops in UK and Europe are looking to deepen
democratic practice.
> Cecop-Cicopa Europe and Co-operatives UK
delegates will be able to attend certain workshops
from both events on Saturday 22 June – details tbc.
> uk.coop/congress
> cecop.coop/General-Assembly-of-CECOP
26 | MAY 2019

1 May 2019 is International Workers Day – and 2019 is the centenary of the International Labour Organization.
This issue we look at how different models, laws and businesses put people at the heart of their thinking ...
Worker Co-op
What’s the difference
between the two models?
Employee Owned
Written by
Anca Voinea
Employee ownership can take different legal
forms – notably employee owned enterprises and
worker co-ops. James Wright, policy officer at
Co-operatives UK, says these are driven from the
outset by different key processes.
The first is the conversion of SME and familyowned
businesses using the Employee Ownership
Trust (EOT) model, or a hybrid with employee
shareholding schemes.
The second is the start-up of businesses that are
worker-owned either from the outset or very early in
their evolution, using the worker co-op model.
“The EOT model is particularly well-suited to the
conversion of SME and family-owned businesses,”
says Mr Wright. “It allows for a phased, full or
partial transfer of equity and control which locks in
collective employee ownership and stewardship of
the business for the long term, while protecting local
jobs and supply chains.
“From a co-op perspective EOTs can be designed
to allow for genuine accountability and a voice for
employees to a degree that meets the ICA Statement
on Co-op Identity, though that does not seem to be
the default in practice. We want to focus on what we
do like about EOTs, while also advocating for more
democratic governance to be the default.”
He adds: “By the same token, the worker co-op
model is well-suited to start-ups and early evolutions.
It is very simple and flexible in terms of legal and
governance arrangements and can evolve easily as
the business develops.
“The co-operative model can be useful for selfemployed
workers as well as employees. Co-ops use
a wide variety of democratic governance models that
put worker-owners firmly in control of the business.
“The ability of the worker co-op model to meet
the needs and aspirations of workers outside of
traditional employment in SMEs is going to be of
growing importance. Work is changing in ways that
make worker co-op models more relevant than ever.”
Mr Wright says Co-operatives UK has started
working more strategically with the Employee
Ownership Association to make the case for
employee and worker ownership, and to try to
address the biggest barriers to expansion – “a lack
of awareness, practical understanding and advice”.
He adds: “There are sometimes differences in
emphasis between the employee ownership sector
and co-ops but the common ground is so significant,
and the world so complicated and challenging, that
we have to try to work together to cut through.”
Siôn Whellens from Calverts, a design and print
worker co-op in London, says worker co-ops and
other types of employee-owned businesses “both
have the purpose of benefiting workers, but use
different modes of ownership and control. Worker
co-ops have broader social purposes. They are a
global network, with an internationally agreed code.
“The worker co-op version of ownership is at least
partly ‘in common’. Rights of ownership are exercised
collectively, directly and democratically. In EOs,
employees usually have individual share accounts.
Rights of ownership are exercised indirectly – if at
all – by the members of the share scheme, who may
be a minority of the workers. Ultimate control in an
EO company is often vested in a trust for employee
benefit, with minority worker representation.”
Like James Wright, he traces the roots of the
difference to an organisation’s origin. “In a worker
co-op, the main actor is a collective of workers,
starting an enterprise or taking one over in a situation
of crisis or abandonment. EOs are conversions
of existing businesses, by philanthropic owners.
“The EO shares model can be an attractive way
to reduce a firm’s tax bill, by substituting dividends
for wages to reduce national insurance costs,
or by recirculating shares within the firm as they
appreciate in value, to avoid capital gains tax. This
works well as long as the enterprise is growing
and profitable. It’s also the reason EOs are more
complicated, opaque and expensive to set up than
worker co-ops.
“You find that while EOs favour top-down
management, worker co-ops have the goal
of collective self-management and minimising
hierarchy. Where EOs focus on providing employee
benefits by giving workers shares and fostering social
harmony in the firm, worker co-ops try to maximise
wages and practice equality. Worker co-ops develop
the capacities of all workers and elect delegates;
EOs develop individuals with the potential to
be promoted.”
MAY 2019 | 27

“Where EOs
focus on providing
employee benefits
by giving workers
shares and
fostering social
harmony in the
firm, worker
co-ops try to
maximise wages
and practice
equality”
This is why the two forms have different messages
and target different audiences, adds Mr Whellens.
“EO is promoted as a way to ensure durable, efficient
businesses with frictionless labour relations, that
can help underpin a vibrant, healthy capitalism.
Many politicians, policymakers, business owners
and professional advisers are responsive to this idea.
Worker co-operation is more relevant to workers and
community organisers, where people are responding
to injustice or collective need.”
This collective need could mean ‘tech for good’,
changing the food system, mitigating environmental
harm, ethical manufacturing or social interest,
he says, while EOs are more likely to trade in
conventional business areas, and use the language
of corporate social responsibility.
But he adds: “These observations are broad brush.
In reality, worker co-ops and EOs overlap. Some EOs
are relatively ‘co-oppy’, while some businesses set
up as worker co-ops are management scams.”
There are a number of organisations working to
develop EOs and worker co-ops, says Mr Whellens.
The Hive, run by Co-operatives UK and funded
by the Co-operative Bank, puts focus on sectors it
perceives to have more growth potential than classic
worker co-ops. But the Worker Co-op Solidarity
Fund, created four years ago, has raised more than
£110,000 from individual worker co-operators and
supporters. Targeted support for worker ownership is
available in Scotland and Wales, he adds, although
the agencies in those countries lean towards EO-type
models. Some local authorities are also interested
in worker co-operatives, as part of an approach to
community wealth building.
Mr Whellens sees room for more worker co-ops
in sectors like health, social care and technology,
but warns the movement needs to connect more
effectively with the working class.
“I expect that worker leadership will increasingly
be recognised as an ingredient of successful
of community and mixed/multi stakeholder
co-operation” he says. “The same is true of traditional
housing and consumer co-ops, where a relatively
disengaged membership leaves the enterprise open
to management capture – the ‘agent-principal’
problem. Worker and worker-led community co-ops
are leading the way in new techniques of openness
and democratic innovation.”
If co-ops can communicate effectively and work
alongside other solidarity movements – such as
trade unions – there are “limitless possibilities” for
growth, he adds.
“At the moment, there isn’t a widely heard story
about worker co-ops’ potential for improving the
situation of workers and communities, and boosting
workers’ self-confidence. A worker co-op is a type of
union, and a workers’ union is a type of co-op. Unionco-op
collaboration has unrealised potential.”
Mike Ridge, who sits on the Worker
Co-op Council, is planning coordinator at Delta–T,
a Cambridge based co-operative specialising in
instruments for environmental science. He joined
the co-op in 2011 and found it “revolutionary”.
“I had spent all my life in traditional enterprises
and to come to a co-op was extremely eye-opening,”
he says, adding that a worker co-op gives all
employees the information that conventional
businesses reserve for directors.
But, he warns, "the main challenge in a co-op
business is that over time the organisation’s ethos
of everybody working together can disappear.
“We’re running a business so we employ people
with a specific set of skills – and because we are
a high-tech company the emphasis has been on
getting people to do their job before looking at their
suitability to be a member of the co-op.
“The challenges are getting people to want to
contribute and be part of the co-op – everybody is
good at doing their job. Not everybody wants to be
a member.”
As a possible solution, Mr Ridge says the co-op
is exploring having non-members as employees.
28 | MAY 2019

Deb Oxley
Employee Ownership Association
What are the benefits of the
EOT structure?
A transition to employee ownership provides a route
to ensure the legacy of a business, recognise the
contribution of their employees and, at the same
time, allows founders/current owners to recognise
full financial value from their investment. The EOT
provides a route for all employees to have a stake in
the future of the business, sharing in any financial
success through tax-free bonus payments, and to
have a voice in the strategic direction of the business.
What tax breaks are available for
employee owned businesses?
The Employee Ownership Trust (EOT) was
introduced in the Finance Bill 2014 and allows for
complete exemption from Capital Gains Tax on the
proceeds of a sale to owners who sell a minimum of
51% of the equity of the business to the EOT. There
is also an additional benefit to employees, where
bonus payments paid via the EOT can be paid tax
free to the sum of £3,600 per employee per annum.
How are employees engaged in
the enterprise?
This is generally through the sharing of business
information, more transparent financial reporting
and, very often, the holding to account of the board to
its employee owners The flexibility of the EOT model
allows for solutions that include more than one type
of ownership. Big brands to recently adopt the model
include film maker Aardman, which has put 75% of
the business into an EOT while some of the shares
staying in the hands of the founders, and Sawday’s
which has become an employee owned, family
owned charitable trust creating a hybrid model of
both direct and indirect ownership.
How do you see the two movements
working together in the future?
We have many shared values – not least giving all
employees the opportunity of a stake and a say. They
also share some of the same challenges, but both
believe that an increase in the number of businesses
that give employees a voice and a stake will benefit
the economy, making it more inclusive.
Lucy Humphrey & Tony Carr
Social care workers, Leading Lives Co-op
How are worker co-ops different?
They provide a unique opportunity for employees
/ shareholder members to take greater responsibility
in and have greater influence over the running
and development of their enterprise. Shareholder
members within Leading Lives not only elect board
members but also get to vote on other key issues. We
also have a shareholder council that feeds views and
thoughts to the board.
How are Leading Lives employees
involved?
The board is made up of employees (shareholder
members) elected by their peers. Additionally, there
is a staff forum where staff can be elected to be locality
representatives on a staff stakeholder/council forum
which reports to the board. Shareholder members
get to vote on various issues periodically.
What were the main challenges in
setting up?
Establishing a new £11m social care company from
a standing start with no financial history or money,
and a lack of experience in the independent sector –
our 390 employees were all transferred from Suffolk
County Council.
We had to manage the concerns and anxieties
of our customers, their family carers and our staff;
the transfer followed a number of years where we
had to make savings, under austerity, and closed a
number of services. Some people saw moving out of
the council as losing ‘security’.
We had to work to gain new business and customers
while retaining existing ones, and there were issues
around establishing the infrastructure required
to run a business of this size, and embedding a
culture of employee ownership and the co-operative
principles into such a large organisation.
“We had
to manage
the concerns
and anxieties
of our customers
(some of Suffolk’s
most vulnerable
adults), their
family carers
and our staff; the
transfer followed
a number of years
where we had to
make savings”
MAY 2019 | 29

Ways Forward Conference 2019
The UK co-op movement is looking to double itself in size – but what does that mean, and how will
it affect workers? Co-operators gathered in Manchester on 5 April for Ways Forward 7, organised by
Co-operative Business Consultants, with discussion ranging from sociocracy models of worker
governance to the mutualisation of public services
Written by
Anca Voinea
& Miles
Hadfi eld
Co-ops unleashed? A movement critiqued
Moves to double the size of the UK sector came
under the microscope at Ways Forward, with trade
unionists and labour activists warning against backdoor
privatisation.
Paul Bell from public sector union Unison told
a lunchtime session that he was opposed to any
move to grow the co-op movement by spinning off
services from the public sector.
However, he said the union supported moves
to mutualise services which have already been
outsourced to the private sector.
He warned that a public sector mutual, competing
in the market place, could see pay and conditions
suffer, adding: “Pay is not the be all and end all
but it is absolutely of value if you are a poor person,
a working class person, a carer – if you are not from
a background where you have independent means.
“Privatisation wants division because it can
exploit and profit from division ... co-operation is
not competition. ”
Les Huckfield, a former Labour MP and MEP, now
a co-op researcher, said the Co-operatives Unleashed
report, produced by the New Economics Foundation
last year for the Co-op Party as a blueprint for
growing the movement, “is about driving co-ops
into the market ... I don’t want co-ops in the market
– I want them to form something separate from
the market”.
Echoing Mr Bell’s concerns, he added: “I tell you
how co-ops get contracts when bidding against the
public sector – it’s by cutting pay and conditions.”
Mr Huckfield said the co-op movement had been
grown before, in line with its values and principles,
and argued that measures outlined in Labour’s
1983 manifesto had more merit than the NEF report.
He wants to see a revival of the local development
agencies dismantled by the Thatcher government,
which “created alternative local social economies”.
Like Mr Huckfield. Cheryl Barrott, from Change
AGEnts, sits as an individual on John McDonnell’s
policy implementation group. “We need to put
something in front of Jeremy Corbyn and John
McDonnell that doesn’t come back on us,” she said.
“What do we need in the legislation, and what is
already in the legislation where we could do with
good policy and practice?”
In another session, co-op consultant Alex Bird
also looked at Co-operatives Unleashed.
“The NEF report comes from outside the co-op
movement,” he said. “There’s some strengths in that
but also some weaknesses.”
With the retail movement working in a competitive
market and only so many pubs and village shops to
turn into community businesses, worker co-ops are
the key to doubling the movement, he added.
“We’re a long way behind other countries on
worker co-ops. We can grow the co-op sector very
fast with the right infrastructure.”
This infrastructure meant investment,
a supportive legal and fiscal environment, and co-op
experts in the civil service at national level, he said.
From the floor, delegates expressed concern
about workers having the confidence and expertise
to become co-owners – when they might prefer to
remain employees without responsibility.
David Alcock, of Anthony Collins Solicitors,
replied: “Alongside expanding the co-op economy
we need a new model of citizenship ... and to educate
people in what it means to be an active citizen.”
30 | MAY 2019

Solidarity economy in Rojava
& Jackson, Mississippi
Co-ops can be a tool of revolution and liberation,
co-operators from Syria and the USA told delegates.
Sacajawea Hall from Cooperation Jackson,
a co-operative city project in Mississippi, and
Huriye Semdin from Rojava, an autonomous region
of northern Syria, shared their experience via Skype.
In Northern Syria the co-op economy started
growing after the imposition of a blockade on the
region. In 2012, following the Rojava Revolution,
the Union of Cooperative Societies was established,
setting up co-op committees across Northern Syria.
Ms Semdin said 5,000 women were working in
the co-op economy in Northern Syria. The embargo
on the region makes it impossible to import heavy
machinery, leaving co-ops reliant on their members’
skills, resources and manual labour.
“The economy survived because we depended on
ourselves on the basis of a communal economy,” she
said. “The movement is also focusing on empowering
women, who make up 40% of any committee or
council. Every co-operative structure of government
is led by two co-chairs, one male and one female.
“We aim to change the mentality of women here
and make them believe they can make changes.”
Similarly, co-ops are empowering the African
American community in Jackson, Mississippi, the
poorest state in the USA. Cooperation Jackson started
Union co-ops: A new way of working
Unions and co-ops should find new ways of working
together to support freelancers in the gig economy,
delegates were told.
Co-operatives UK researcher Pat Conaty said there
were already fruitful examples of collaboration:
Equity and the Musicians’ Union are both working
with performers' co-ops, and taxi drivers in
Edinburgh are working with Unite.
“The model is spreading,” he said, pointing to the
USA, where unions are backing Denver’s Green Taxi
and Union Taxi co-ops.
Dr Cilla Ross, vice principal of the Co-operative
College, highlighted the example of the union/
co-op hybrids in Cincinnati, run by workers with a
collective bargaining approach.
Started by the United Steelworkers union with the
help of Spanish worker co-op federation Mondragon,
it has inspired moves to build a national network of
unionised worker-owned co-ops.
Although the model can be challenging, with
leaders having to “wear a boss’s hat and a union
in 2014 with the aim of creating a co-operative supply
chain, and was born from a black radical tradition.
The project set up the Kuwasi Balagoon Center
for Economic Democracy and Development to help
establish worker-owned co-ops: so far, three have
been created – urban agri co-op Freedom Farms,
the Green Team compost co-op, and the Center for
Community Production, a multi-stakeholder co-op
which will focus on new tech such as 3D printing.
Through its Fannie Lou Hamer Community Land
Trust, Cooperation Jackson has bought vacant lots,
abandoned homes and commercial facilities in the
West Jackson neighbourhood, which it plans to use
to create housing co-ops and address the need for
affordable housing. The movement has ambitious
plans – it aims to use a 3D fabrication lab to create
buildings that will be used by housing co-ops.
hat”, Dr Ross said she was “blown away” on a visit to
Cincinatti, to see union organisers “working with the
most marginalised people in our society”.
She said the project started when migrant workers
on hourly contracts turned up for work and found the
site closed down. One worker was related to a union
organiser and persuaded his colleagues to join.
“The union in turn invested locally to support
those workers,” said Dr Ross. “The model has spread
across the city ... and transformed workers’ lives.
She said unions and co-ops in the UK have not
worked closely together, adding that “we need to
think about our tradition, the shared values that we
have” to overcome barriers to collaboration.
She gave the example of worker co-op Suma,
where people joined a union in solidarity with other
food industry workers, to access health and safety
training, and so workers could find help if their
relationship with Suma broke down.
Mr Conaty added: “In a union co-op you create
democracy on two fronts”, forming an “important
new strategy against a neoliberal bid to
reduce worker control”.
MAY 2019 | 31

Bringing worker power
to the digital world
The huge shifts in economic power and
working patterns ushered in by the
internet age present major challenges to
21st century workers – but could also empower them,
say co-operators.
Shaun Fensom – whose involvement in the
co-op movement includes a role at Tameside Digital
Infrastructure Co-operative (TDIC) – said the tech
revolution offers “opportunities for participation and
engagement ... and for innovation. It might be true
that sociocracy is more feasible in the digital world”.
In turn, co-operation can bring “order and equity”
to counter the upheaval of the digital transformation,
which has allowed platforms like Uber and Airbnb to
“exploit and extract value in the way capitalism has
never done before”.
But Mr Fensom said the movement needed to
go further than developing platform co-ops, by
developing “the notion of resource sharing”. TDIC
showed how the movement could “own more
of the value chain”, he added. “We have to be flexible
about who the stakeholders are,” he said, with a nod
Why is Unicorn Grocery using sociocracy
principles in governance?
Manchester wholefood co-op Unicorn Grocery set
out the principles of its new governance structure
which uses elements of sociocracy.
Unicorn’s Debbie Clarke and Abbie Kempson told
delegates that the growth of the co-op over the last
couple of years have made it impossible to do things
the same way.
In response, Unicorn started exploring sociocracy
in 2017. This collaborative governance method was
devised in 1851 by French philosopher and sociologist
Auguste Comte. Unlike the one member, one vote
rule used by co-ops, it sees a group of individuals
reasoning together until a decision is reached that is
satisfactory to all.
While members have preferences, they also
have a range of tolerance. The model aims to map
everybody’s range of tolerance to make it easier
for them to agree. It does not aim to produce a
consensus, but rather to have people give their
consent and have no objections to an option.
“Consent is not about everybody getting their
favourite option, but getting an option everyone can
agree on,” said Ms Clarke.
Another principle of sociocratic organisation is a
hierarchy of semi-autonomous circles. The structure
enables all members to raise issues and be listened
to Virgin Media, the latest member of TDIC. “We
need massive infrastructure development as 5G
and electric vehicle charging come online. There’s
opportunity for shared infrastructure: private
companies can use it but it is co-operatively owned.”
Pat Conaty, a research associate at Co-operatives
UK, said the digital revolution had broken the
economic system, creating the need for alternative
economic strategies.
The “feudalistic late capitalism” of the 21st century
has forced workers into self-employment, living in
poverty, with no rights, and forced to carry all the
risks and none of the benefits of digital enterprise,
he argued. To counter this “predatory” market, the
co-op movement needs money – which could come
from community banks and community finance, by
allowing credit unions to leverage pension finance,
or by setting up people’s banks.
“If we’re going to expand industrial democracy we
have to have the tools,” he said, giving the example
of Italy, whose financing mechanisms mean it
has 2,500 worker co-ops – compared to 500 in
the UK.
The rise of data – “the new oil” – means data
co-ops can offer an alternative to the “outrageous”
exploitation by tech giants, he added.
to – without feeling they have to wait for their
message to get across, said Ms Clarke. Everybody in
the circle can participate actively.
Equally important is the principle of circular
steering, with individuals acting as links between
the different circles; they function as full members in
the decision-making process, within their own circle
and also the next, higher one.
Sociocracy also encourages participants to try
something new, said Ms Kempson, and allows
them to record concerns, measure impact and set
review dates. Using this model, Unicorn says it can
experiment for short period of times, as collectively
agreed by members, and search for solutions.
“Consent is not
about everybody
getting their
favourite option,
but getting an
option everyone
can agree on”
32 | MAY 2019

Co-operators look to a radical past to
shape the future
The Luddites, a team of sacked aerospace workers
who campaigned to turn their skills to socially useful
production, and a Victorian reformer who criticised
Robert Owen for a lack of radicalism, were all among
the sources of inspiration for a conference session on
ways to grow the co-op movement.
One speaker was Ian Hewitt, from Co-operatives
East Midlands. A robot engineer by profession,
he worked at the Centre for Alternative Industrial
and Technological Systems in the 1990s. This was
set up in 1978 at North London Polytechnic, based
on the work of shop stewards at defence company
Lucas Aerospace.
After Lucas announced job cuts, union bosses
proposed moving workers from defence projects
to socially useful production. The team proposed
150 ideas, including electric cars, heat pumps,
TV remotes and increased domestic production
of dialysis machines.
Mr Hewitt said the Lucas Plan showed it was
possible for technology to foster co-operation instead
of industrial capitalism.
His experience led him to question the virtues
of Robert Owen’s New Lanark project – a workers’
community viewed as an important forebear of the
modern co-op movement.
“New Lanark was the high tech of its day,” he said,
“but was that tech co-operative or capitalist?”
Other reformers of the era had offered a more
radical spirit, he said, with the Luddites making
“an appeal to commonality” against a system which
failed to distribute the economic benefits of new
technology across society. “We should celebrate
the Luddites,” said Mr Hewitt, drawing parallels
between their campaign and today’s tech revolution,
where the internet means “some people do very well
and a lot do very badly”.
Another inspiration is “socialist, feminist and
co-operator” William Thompson (1775-1833), who fell
out with philosopher Jeremy Bentham – an investor
in New Lanark – accusing his enterprises of not
distributing their profits fairly.
Co-op growth should mean radical thinking, he
said, providing antidotes to the surveillance and
automation brought about by new tech, and building
green industries to drive the carbon transition.
In places like Derby, skilled people who
work for defence industries which are winding
down need new opportunities, he added. So
a challenge for the movement is: “How do we
create techs that prompt co-operation in socially
useful production?”
Democratic ideas like open source software are
important, he said, and social utility is as important
as being a co-op. “London Stock Exchange used to
be a co-op, but was it socially useful? And William
Thompson was too radical for Owen – so why has he
been written out of co-op history?”
Molly Scott Cato, Green MEP for South West
England, said environmental ideas were also
important to take co-operation forward.
This means a wholesale rethink of modern lifestyle
and attitudes, she added – but said this doesn’t mean
a future of scarcity.
“We need a biogreen economy. Capitalism is
selling us stuff we don’t need – it makes us unhappy
and it’s trashing the planet.”
Later, in her keynote speech, Ms Scott Cato said it
was up for the co-operative movement to join efforts
to solve the political crisis engulfing the UK.
She said Brexit would be “a disaster” but, although
it was aimed at the wrong target, it contained the
right message – that “we’re living in a country
that has ignored people and left them behind”,
while nations created “bespoke tax regimes for
the rich”.
In another pointer to the lessons of history,
she added: “Co-ops were created in response to
a political crisis and a broken social contract.”
The same situation applies today, bringing huge
opportunities – but she warned there are risks, too,
with “fascism on the rise”.
She added: “Co-operativism is about practical
approaches and the sharing of power.”
Echoing Mr Hewitt’s concerns on the tech
revolution, she said the undermining of democracy
by Facebook, and the inevitable job losses from
automation, mean “we need to ensure the value
those techs bring is shared fairly.”
And she told delegates: “Co-ops are good at
empowerment, education and inducting working
people into politics. It offers a way to bring
working people into constructive political activity.”
“We should
celebrate the
Luddites,” said
Mr Hewitt,
drawing parallels
between their
campaign and
today’s tech
revolution, where
the internet means
“some people do
very well and a lot
do very badly”
MAY 2019 | 33

Consumer co-operatives
Should workers have a bigger stake?
Alex Bird
of Consultancy.
coop LLP
Workers at Eroski
Credit: Eroski
The precarious world of work - with zero hours
contracts and the gig economy - has brought calls for
new ways to empower workers.
But while the co-operation been held up as a
solution for issues surrounding the future of work,
there has also been concern about the treatment of
workers in some sections of the movement - such as
the consumer co-op movement.
At last month’s Ways Forward conference in
Manchester, Co-operative College vice principal Dr
Cilla Ross said: “Some of our consumer co-ops are
the worst payers, and there’s an urgent need for
proper union organisation.”
Examples include Saskatoon Coop in Canada,
which has just reached a tentative deal with unions
after the introduction of a two-tier salary scheme
sparked a five-month strike.
Alex Bird, from Consultancy.coop LLP, suggests
the solution to such problems lies in switching to a
multi-stakeholder model, which would bring more
worker engagement.
“Some consumer co-ops are making an attempt
at changing their governance slightly, with more
worker representation, but it’s a bit half-hearted,”
he says. “The result means you don’t get all the
advantages of a multi-stakeholder co-op, and keep
the disadvantages of consumer co-ops.”
He suggest Eroski, the Spanish retailer which
is part of the worker co-op federation Mondragon,
points the way forward. Its governance is equally
split between workers and consumers.
“When you go into an Eroski store it’s amazing
how engaged the staff are,” he said.
Mr Bird says there is a view at Mondragon that an
organisation is not a co-op if it is not run by workers.
“I wouldn’t go that far but if the staff aren’t
engaged at all then it’s not a co-op – that’s my view.
Where you see an organisation where the workforce
are engaged, you see a difference.”
Looking at the British retail movement, Mr Bird
said workers are identified as colleagues and given
staff discounts, and attempts are made to engage
them on boards. But there is not enough engagement
in management or governance structures, he argues.
There has been some progress, for instance at
Midcounties. “It has two seats on the board for staff
so there is a lot more engagement.
“It’s a good start, credit where credit is due,
but I really like the Eroski model which is 50/50.”
He says one reason to adopt a multi-stakeholder
model is that staff have a much greater reason to be
engaged in a co-op.
“If a store closes and you’re a customer, you might
feel sad but you can shop somewhere else,” he
says. “But for a worker, if the shop closes the stakes
are higher.”
Even membership doesn't necessarily mean that
much to shoppers at a co-op, he argues. “I’d say only
a small proportion of members understand or are
engaged in membership,” he says. “For the rest it is
just like a loyalty card.”
By focusing on workers, a co-op retailer would
benefit from empowered colleagues working
more effectively.
This could be achieved by setting up a workers’
council alongside a co-op’s members’ council offering
a formal route to a multi-stakeholder structure.
“By empowering staff, by getting them into
governance at high level, and by bringing more
power down to shop manager level, you can improve
the operation.”
He says moving decision-making powers to store
level would offer managers more local buying power,
and would lead to an engaged workforce “driving the
spirit of co-operation on the high street”.
“Our stores should be leading in high street
development. Our store managers should be high
street leaders - but that would mean a complete
change in the management system.”
34 | MAY 2019

Looking after people
In a people-centred business
Taking care of employees is vital in retail – but even
more important in people-centred businesses, such
as co-operatives. At Heart of England Co-operative
Society, colleague training and development, along
with retention of staff, is among the key aims for the
organisation’s new personnel manager.
The move to a role at the 187-year-old society
marks a return to her roots for Amanda Gibbons,
who was born in Coventry – the home of Heart
of England’s new head office – but raised in the west
of Ireland.
After graduating with a BA in human resource
management from the Galway/Mayo Institute
of Technology, Amanda worked as HR manager
for leading Irish retailer Dunnes Stores, and later
SuperValu, also in the west of Ireland, as group HR
manager. Between them, the two retailers hold the
largest grocery market share in Ireland.
Now, her latest job move has brought her to the UK
co-operative sector.
“I joined Heart of England as I wholeheartedly
share its ethos and values,” she said, adding that the
society’s colleague engagement and training was
core to these.
“The society already has an excellent track record
for the training and development of its staff, and
for staff retention, with many colleagues seeing at
least 25 years and some even reaching 50 years,”
said Amanda.
Since her arrival she has worked closely with
senior management and Catherine Evans (training
manager) to devise a framework to give a clear
picture of the capabilities and potential of every
member of staff in the business.
The framework measures capability against
performance, identifying opportunities for every
employee to continue progressing through the
business with the right support, training and
development opportunities. The ultimate aim
is to enable every member of staff to reach their
full potential.
Encouraging education
As of the past year, Food Division employees who
sign up to the society’s own new internal trainee
manager programme are also now encouraged to
complete a Level 3 Team Leader Apprenticeship,
delivered by North Warwickshire and South
Leicestershire College.
The trainee manager programme looks at six
modules including health and safety, people
management, store standards, stock management,
cash and security, and commercial awareness,
while the apprenticeship modules include team
management principles, leadership techniques,
performance management, relationship
management, communications, human resources
and operational and project management, and
financial management.
“The trainee managers are already reaping the
rewards of the apprenticeship,” says Amanda.
“We are now looking at ways to add to the
programme, ready for the next intake of trainee
managers later this year.”
Similarly, in the Funeral Division, every
member of the team is trained to the highest
standard, learning their skills through the National
Association of Funeral Directors’ Diploma in
Funeral Arranging and Administration, and the
Diploma in Funeral Directing.
“While we aim to provide training and
development opportunities to our core employees in
the first instance, we are aware that we may also have
customer service assistants that are with us part time
while studying at university,” says Amanda.
“If, at the end of their course, they are interested in
a career in retail we can give them every opportunity
to progress through our business through the trainee
manager programme, supervisor programme,
personal development and academic programmes.”
Apprenticeship opportunities
It is the first year the society has embarked upon
apprenticeships for its staff but Amanda says the
scheme has already proven to be a huge success and
the retailer is already looking at ways to take the
trainee manager programme to the next level in time
for the next intake of apprentices.
“Succession planning is key for us,” she says.
“We want to recruit individuals with behaviours
and attitudes that are aligned to our own values,
ensuring that we have the right people in place who
are willing to take on new rewarding challenges and
move with us in the same direction.”
Amanda
Gibbons
Personnel
manager at
Heart of England
Co-operative Society
MAY 2019 | 35

Co-ops and the Global Commission
on the Future of Work
Q&A with Simel Esim
Simel Esim has led the International Labour
Organization’s Cooperatives Unit since 2012. She
speaks to Co-op News about the latest findings of the
Global Commission on the Future of Work, released
earlier this year.
What is the Global Commission about?
The world of work is undergoing major technological,
demographic and climate changes. To understand
these, the ILO launched Future of Work, including
an independent Global Commission with 27
members – leading global figures from business,
unions, thinktanks, governments, NGOs and the
Self Employed Women’s Association in India, which
has adopted a dual strategy of trade unionism and
co-operativism for its 1.8 million female informal
economy members.
What does the report say about co-ops?
The report, launched in Geneva on 22 January,
outlines the steps needed to achieve a future of work
that provides decent and sustainable opportunities.
It calls for a new, human-centred approach that allows
everyone to thrive in a carbon neutral, digital age
and affords dignity, security, and equal opportunity.
The report will be submitted to the centenary session
of the International Labour Conference in June.
It mentions co-ops on two issues – supporting
women’s voice, representation and leadership; and
improving the situation of workers in the informal
economy. It also notes the need for enterprises to
account for the impact of their activities on the
environment and on the communities.
How are co-ops responding?
There is growing interest in economic models based
on co-operation, mutualism and solidarity. The
report provides an opportunity to reflect on how
co-ops can contribute to a brighter future and deliver
economic security, equal opportunity and social
justice. Key issues include lifelong learning, youth
employment, gender equality, new forms of work,
care, rural and informal economies, social dialogue,
and technological and environmental changes.
In terms of lifelong learning, co-ops provide
education and training for their members in
order to contribute effectively to the development
of their businesses. The fifth co-operative principle
(Education, Training and Information) focuses on
education activities to foster mutualism, self-help
and collaboration – not only for co-op members, but
also for young people and the community.
On youth employment, each year 40 million
people enter the labour market. Co-ops can help
them find work and gain work experience, and
offer professional and vocational training. Their
collaborative approach of working together, sharing
risks and responsibilities, can also be appealing for
young people.
Faced with the prospect of losing jobs due to
enterprise failures, workers in firms with economic
potential can buy them out and transform them
into worker-owned enterprises. A move towards
a worker co-operative could also be attributable to
the retirement of ageing owners, where there is no
clear plan for the future of the enterprise.
In rapidly ageing societies, co-op ownership
of housing, leisure and care enables senior members
to control decisions and lead more independent
lives. Co-ops play a complementary role to local and
national governments in developing and providing
improved services in all forms of care while meeting
the needs and aspirations of their members and
communities. Compared to other ownership models,
they tend to provide better wages and benefits.
Women’s unemployment rates remain high, and
higher than men’s in many parts of the world, with
persisting gender wage gaps. Fewer than a third of
managers are women, although they are likely to
be better educated than men. Women have opted
Simel Esim
Head of the
International
Labour Organization's
Cooperatives Unit
“Future of Work
... calls for a new,
human-centred
approach that
allows everyone
to thrive in a
carbon neutral,
digital age and
affords them
dignity, security,
and equal
opportunity”
36 | MAY 2019

to come together through co-ops to improve
their livelihoods, enhance their access to goods,
markets and services, and improve their collective
voice and negotiation power. Co-ops have a critical
role to play in lifting constraints for women by
promoting equality of opportunity and treatment,
including through pay equity and the provision of
care, transport, and financial services.
The majority of co-ops are found in rural
areas where they are often a significant source of
employment and are recognised as having a key
role in the transition from the informal to the formal
economy. Co-ops have the potential to provide better
working conditions, including adequate hours
of work, social protection and safe workplaces.
Co-operative action to tackle discrimination
ranges from the provision of services to marginalised
groups, to facilitating labour market access for
discriminated groups such as women, young people,
persons with disabilities, indigenous peoples,
migrants and refugees.
Co-ops represent an alternative organisational
form used by workers’ and employers’ organisations
to advance social dialogue. Co-operatives have
contributed to the representation of workers,
especially in the informal economy and in areas
where other organisational forms are limited.
New tech is changing the way work is organised
and governed, especially in emerging sectors like
the platform economy. There will be significant job
losses, some jobs will be transformed, and new jobs
will be created that will require new skills. Some see
the platform economy as an economic opportunity.
However, there is growing evidence that it creates
unregulated spaces resulting in worker insecurity
and deteriorating working conditions. Policy and
legal frameworks typically lag behind these changes.
For the positive potential of technology to be
realised, and its threats of increased unemployment
and domination of capital over labour to be
countered, new models of collective ownership and
democratic governance could be used.
Climate concerns are affecting the world
of work in various ways. Green jobs and green
enterprises are on the rise. Co-ops can be
instrumental in ensuring a just transition while
working on climate change adaptation and
mitigation. Mutual insurance for crops,
diversification of crops, energy-saving irrigation
and construction techniques are a few adaptation
strategies co-ops can use. Prominent examples
include forestry and renewable energy co-ops.
Social justice through decent and sustainable
work also requires commitment. Co-ops are engaged
in collective satisfaction of insufficiently met
human needs, working toward more cohesive social
relations and democratic communities. They can
be viable means to promote decent and sustainable
work, especially with an enabling environment with
appropriate policy frameworks and financial and
institutional support mechanisms.
“New technologies are changing the
way work is organised and governed,
especially in emerging sectors like
the platform economy. There will be
significant job losses, some jobs will
be transformed, and new jobs will be
created that will require new skills”
How is the ILO working with co-ops?
The ILO is the only specialised agency of the UN
with an explicit mandate on co-ops; since 1920 it has
had a specialised unit on them. The International
Co-operative Alliance (ICA) has a general consultative
status with the ILO, and was involved in the process
leading to the adoption of the Recommendation on
the Promotion of Cooperatives, 2002 (No. 193).
The ILO and the ICA are members of the Committee
on the Promotion and Advancement of Cooperatives
(Copac), which contributed last year’s adoption of
guidelines concerning statistics on co-ops at the 20th
International Conference of Labour Statisticians.
On 24 June this year the ILO and the ICA are
organising an event on co-ops and the future
of work in Geneva. Their leaders will sign a new
memorandum of understanding.
Emmery Matongo,
construction and
solar panel trainee,
cleaning the solar
panels installed and
assembled by local
women as part of the
Zambia Green Jobs
Programme led by
the ILO. Photo by
Crozet M
MAY 2019 | 37

The International Labour Office
From 1919 to current day
Written by
Stirling Smith
Writer, consultant
and trainer
Over the last four years many centenaries of events associated with the Great War
have been marked; most recently, the anniversary of the Armistice in November
last year. There is one more to go: in June, attention will turn to the peace making
process and the Treaty of Versailles, which is generally regarded as a failure, laying
the foundations for war again two decades later.
But a substantial part of the Treaty of Versailles still operates today. Part XIII,
articles 387-427 dealt with “labour”. And I can’t do better than quote from the
Treaty itself:
38 | MAY 2019

Albert Thomas
First director of the
ILO, 1919–1932
Back in 1919, action on these issues was regarded
as essential for preventing war. And to apply these
principles in practice, the treaty went on to set up an
organisation: the International Labour Office. It was
set up as part of the League of Nations.
When the League of Nations was dissolved, the ILO
carried on, and became the first specialised agency
of the United Nations. (The International Labour
Office now refers to the permanent secretariat of the
International Labour Organization.)
International law
Every year, the International Labour Conference
meets in June, in Geneva. Most years, it will adopt
a convention, which members states can ratify,
and incorporate into national labour law, or
a recommendation which is best seen as “soft law”
like the one on promoting co-operatives.
The bottom line is that there is an international
law on co-operatives; and it explicitly references the
statement of co-operative identity adopted by the
global movement in 1995.
The first ILO director general, Albert Thomas,
was from the co-operative movement himself.
A former socialist minister in the French
government, his view was that the ILO should be
concerned not solely with the conditions of work, but
also with the conditions of workers.
It is a distinction that can take a while to grasp. For
example, the earliest activities of the ILO revolved
around standard-setting, through conventions. On
conditions of work, it set maximum hours of work (48
in the very first ILO convention); on the workplace,
it set health and safety standards.
Albert Thomas also believed that co-ops could help
workers outside their work through the provision
of, housing or consumer stores, which would
improve their lives – the conditions of workers.
Thus, a co-operatives bureau was set up within
the ILO in Geneva in the first few years. It still exists,
and does important work in directly promoting
co-ops through projects all over the world.
It has also worked hard to get co-operative
membership properly counted; this does not
sound very exciting, but when a global statistical
body agrees how to count co-operatives, that is an
important step in showing the size of our movement.
The ILO owes a lot to Robert Owen. In 1817 he
travelled to France, Switzerland and Germany. At
that time, the “powers” – the leading countries
of Europe – were meeting at a congress in Aix-la-
Chapelle. Owen presented Two Memorials on Behalf
of the Working Classes. In these he advocated
international action to fix wages and improve
workers conditions.
This was the first time anybody called for
international action to set workers’ conditions and
Owen is seen as an inspiration by the ILO.
Father of the co-operative movement, the trade
union movement, nursery education, the Factories
Acts – and inspiration of a United Nations agency:
there really is no end to Owen’s achievements.
Stirling Smith was previously International
Programmes manager at the Co-operative College
and before that, an ILO official. He wrote the
definitive guide to the ILO’s recommendation on
co-operatives, which can be found at: s.coop/22f9c
Credit:
gallica.bnf.fr
“The bottom
line here is
that there is an
international law
on co-operatives;
and it explicitly
references the
statement of
co-op identity
adopted by the
global movement
in 1995”
MAY 2019 | 39

International Cooperative Alliance
Co-operative Law Committee
Q&A with Hagen Henrÿ
Dr Hagen Henrÿ is an adjunct professor
of comparative law at the University of Helsinki
and chair of the International Cooperative Alliance
Co-operative Law Committee. He was previously
chief of the ILO’s Co-operative Programme and edited
the third edition of the organisation’s Guidelines
for Cooperative Legislation (2012).
How did the ILO come to publish its first
guidelines on co-operative law?
The idea dates back to the mid-1990s, with
the Coopreform program of the ILO under which
the International Labor Office supported ILO
member states in revising their co-operative
policies and legislation. By the time the first
edition, the Framework for Cooperative Legislation,
was published in 1998 the original working
paper had undergone multiple changes which
took into consideration the consultation process
of stakeholders in many countries.
The second edition (2005) reflected the newly
adopted ICA statement of co-operative identity,
and also the material for the UN guidelines for the
development of co-operatives (2001), and for the ILO
Recommendation No. 193 concerning the promotion
of co-operatives (2002).
The reference in UN and ILO documents to the
co-operative values and principles demonstrates
how important those values and principles had
become. More and more co-op laws refer to them.
What has happened since then?
Circumstances have changed again considerably.
This might prompt yet another revision of the
Guidelines, which would have to deal with
the increasing difficulty in setting co-ops apart
from other types of enterprises through law.
While the pressure to approximate the legal
features of co-ops with those of capitalistic
enterprises (companization) is diminishing, the
pressure to harmonise the governance structures
of all types of enterprises (convergence) increases.
This is due to the changing role enterprises are
required to play in society. It reflects the debate on
corporate social responsibility (CSR) in the context
of a shift towards sustainability. While the task
of co-operative law over the past 50 years has been
to distinguish co-ops from capitalistic enterprises,
it must now also distinguish them from other actors
of the social and solidarity economy while ensuring
their position within it.
How important is for co-ops to have
their identity protected by law? What
happens where this is not the case?
Unlike other types of enterprises, co-operatives have
developed, as of the mid-19th century, a set of values
and principles which constitute their identity.
The importance for co-operatives to have this
identity protected by law depends on the importance
they attach to the various functions or roles
of the law.
Given a “school” among lawyers who defend the
idea that the identity of co-ops may be protected
through their byelaws and that a specific law is not
needed, it might be worthwhile considering what
the main functions of “law”, as understood here,
are – namely: a pedagogical one, the function
of protecting third parties, the function
of recognition, and as a policy instrument.
The pedagogical function responds to the needs
of those who do not have the means or knowledge
to protect themselves and others if they had
no guidance through law. The interest of third
parties to be protected through a law, which
prescribes the lines of responsibility and the capital
structure of co-operatives in congruence with
their specific objective/purpose, is a consequence
of the recognition of co-operatives as legal entities
Hagen Henrÿ
Adjunct professor
of comparative law
at the University
of Helsinki (Finland)
and chair of the
International
Cooperative Alliance
Co-operative Law
Committee
40 | MAY 2019

with the shift of liability from individual persons
to an abstract entity.
The recognition of co-ops as legal entities, as that
of any other type of enterprise for that matter, is a
largely underestimated and often even unknown
development factor. As the identity of co-operatives
can only be established against the identity of other
types of enterprises, a diversity of enterprise types is
not only in the interest of co-operatives, but is also
a condition of sustainable development, the source
of which is diversity.
Is co-op law ranked higher on education
and research agendas than in the past?
Yes – but still not where it should be. However,
there are now more courses being taught; more
articles and even books are being published.
Iuscooperativum, a network of co-operative lawyers
established in 2015, has published the first issue of
its International Journal of Cooperative Law and has
(co)organized two international conferences on coop
law, one in 2016 in Montevideo and one last year
in Athens which attracted a relatively large number
of participants. The third will take place next year.
How national co-operative bodies help
campaign for improved
co-op legislation?
They can only play the role their members, and
the members of those co-ops, empower them to.
The action has to start from the bottom.
Most countries allow co-operative members to
elaborate byelaws/statutes that comply with the
co-operative values and principles. They should
make use of this autonomy and – most importantly
– ensure through internal control mechanisms that
they practice these values and principles.
Where necessary, they should empower their
co-ops to unionise and federate at national
and international levels and see to it that their
representative bodies use their power to ask that
legislators respect the obligations governments
accepted by adopting for example the UN Guidelines
and the ILO R. 193.
Equally important is that these representative
bodies build up own expertise concerning
co-op law in order to be an adequate interlocutor
for the government. The ICA has had since 2013
a Cooperative Law Committee; its four regional
organisations have similar entities. As of the end
of 2018 the ICA has also had an Identity Committee.
The conferences organised by the ICA research
committees have had since 2011 an increasing
number of participants presenting their findings on
co-op law. This demonstrates the place co-operative
law has acquired over the past few years.
As it reaches its centenary, where does
the future lie for the ILO?
I attach a high value to this unique organisation,
the ILO. Its unique tripartite has reflected the
antagonism between capital and labour, the two
structuring elements of the economic, social and
political order of industrialised and industrialising
countries over the past 100 years.
This structure gave the acts of the ILO greater
democratic legitimacy than other international
organisations. This must not, however, cover the
fact that this structure excluded all those who
were not represented by employers’ and workers’
organizations – and co-operatives are foremost in
this. Attempts in the 1920s to turn the ILO into a
quadripartite organisation, including co-ops, failed.
Despite the considerable work of the ILO on
co-operative development, this activity has never
matched the work on labour standards in the sense
of labour law in its broadest sense.
With the decrease of formal employment the
focus has shifted to home-workers, freelance
workers, the self-employed, and so on. As social
protection schemes are in many countries linked
to formal employment relationships, this signifies
unknown challenges. Over the past years, the factors
of globalisation have diminished the aggregate
weights of labour and capital in the economy,
relative to the new means of production and product,
namely knowledge.
Digitalisation allows for production processes
free of time and space constraints. This makes
it impossible to maintain the links of solidarity
that have fuelled interest groups that defend
workers’ rights. In addition, the person moves
back into the centre of the economic processes
– and enterprises which succeed in making
democratic participation a principle of all aspects
of their organisation and operations will have
a competitive advantage.
If the ILO, in collaboration with other actors,
succeeds in sharpening the concept of the social
and solidarity economy, of which co-operative
enterprises remain the main actors, it will contribute
to the creation of a balanced society.
A balanced society is a peace-maker. This is not
fantasy, but a paraphrase of the opening sentence
of the constitution of the ILO. The challenge consists
in integrating these new elements into the structure
of the ILO or into a new structure of the ILO.
“As the factors
of globalisation
weaken the
structuring power
of (financial)
capital, the
pressure to
harmonize the
governance
structures
of all types
of enterprises
(convergence)
increases”
MAY 2019 | 41

Self-Employed Women’s Association
SEWA’s role in a changing world of work
Written by
Anca Voinea
“Nowadays the
federation includes
106 co-operatives
across six sectors,
with an annual
turnover of INR
3bn (£35.75m)”
In India the Self-Employed Women’s Association
(SEWA) has been helping women in the informal
economy – which accounts for 81% of the national
workforce – set up co-ops since 1972.
Founded by activist and lawyer Elaben Bhatt, SEWA
is a nationally registered trade union demanding
rights for women workers in the informal economy.
Ms Bhatt realised that while the union provided
a vital service, it was also crucial to bring fair and
decent employment to women workers, who needed
a daily wage to survive.
In 1974, under SEWA’s guidance, women
headloaders set up a co-operative bank, after banks
refused them loans to develop their business. Three
years later, the first trade-based co-operative of quiltmakers
was formed.
In 1992 the Gujarat State Women’s SEWA
Cooperative Federation was registered as a statelevel
apex body to provide services and strengthen
its primary co-operatives members.
Today the federation includes 106 co-ops
across six sectors, with an annual turnover of INR
3bn (£35.75m), all run by women. It focuses on
capacity building, training and marketing. Some
of these enterprises are worker co-operatives; others
are producer and service co-operatives. Many
women members have limited formal education and
skills, and come from poor communities.
Jaya Vaghela, deputy managing director of SEWA
Federation, has been involved in the organisation
for 26 years, starting in the dairy co-operative sector.
Around 30 co-operatives were members at the time,
and she did the accounting for 10 of these. She thinks
the federation continues to play an important role
in the empowerment of self-employed women. “It
enables women to become decision-makers, owners
and users of their own co-operatives,” she says.
SEWA Federation supports women organise
themselves, register their co-ops, develop co-op
by-laws and business plans and become
sustainable. With its network of co-ops across
different sectors, the federation can also refer
co-ops to services offered by other member co-ops,
according to their needs. An individual worker
is often a member of various co-operatives that
not only support her livelihood activities but also
provide services like insurance, healthcare and
financial services.
Salonie Hiriyur, a senior associate with SEWA
Federation, tells the story of a waste picker whose
husband initially opposed her joining the co-op but
changed his mind after seeing her work together
with other women, supporting each other.
“Over the years he became very proud of her
association. She now works as a leader in her
community – helping other women open bank
accounts, form their own collectives and access
government schemes. She also runs a literacy class
in her home, through the SEWA Academy,”
Ms Vaghela adds: “Communities are becoming
more accepting. Perhaps we are not witnessing a
complete break with the social norms but at least a
tiny crack in them.
“Women are becoming economically empowered.
They become board members and earn respect
in their communities because they are managing
big co-ops. They also become decision makers in
their households. It enabled them to educate their
children and drive a shift in literacy ... We will
continue to break the male dominated approach
found in different sectors.”
The co-op is exploring opportunities in organic
agriculture, the caring economy as well as urban
services such as domestic work and beauty services.
But there are still challenges, from expensive tenders
and technology to the cost of paying fair wages.
“In 10 years’ time we want to be a role model,
locally, nationally and internationally. Our vision
is full employment and self-reliance of women, we
want women to take ownership,” said Ms Vaghela.
42 | MAY 2019

Co-operative College centenary
Working conditions & Employee rights
As part of a regular monthly feature throughout the Co-operative College’s centenary
year, archivist Sophie McCulloch explores interesting items from the past. This
month she explores how co-operatives have always championed workers’ rights,
equipping their employees with the skills and knowledge to make a difference in both
their personal and professional lives.
The co-operative movement has always prided itself
in taking care of its employees. In particular, many
innovations taken by co-op societies at the start
of the 20th century pre-dated government legislation
on working conditions and employee rights.
In 1901, for example, the Co-operative Wholesale
Society (CWS) factory at Crumpsall, Manchester,
became the first biscuit factory in the UK to introduce
the eight-hour working day for its employees.
In common with many other CWS factories, the
Crumpsall factory had sports grounds and organised
social activities for its workers. These were often
points that were used in the CWS’s advertising,
attracting prospective employees by making it stand
out as a business that cared about its staff.
In 1907, following a recommendation from the
Amalgamated Union of Co-operative Employees
(AUCE), the CWS adopted a minimum wage of 24s
per week for all adult males working in their offices,
factories and warehouses. Campaigns from the
Co-operative Women’s Guild, among others,
facilitated the introduction of the minimum wage for
women employees of co-op societies six years later.
Some societies also ran convalescent homes
where their staff could recuperate from illness in
comfortable surroundings, and colleagues also often
had the opportunity to go on short holidays and
excursions organised by their societies.
Such trips also had an educational purpose; for the
CWS and other societies, the education of employees
was key to them not only understanding what they
were selling but also having an awareness about
what made working for a co-op society different.
Potential co-op managers were encouraged to learn
about the history of the movement to be able to place
it in context.
Some societies offered staff scholarships to the
Co-operative College, where practical courses
included salesmanship, bookkeeping and even
window dressing; this ‘on the job’ training would
then give staff the potential to progress their careers
and equip them with the skills to train others. Today
the College continues this legacy by running regular
workshops for co-operative organisations and
their staff, as well as offering eLearning packages
and qualifications accredited by the chartered
management institute.
Sophie
McCulloch
Archivist ,
at the National
Co-operative Archive
More information
about the College
and how you can
get involved in its
centenary year is
available at:
co-op.ac.uk/
centenary
Left: Co-op News
January 1916.
Below: Crumpsall
Tennis Courts.
MAY 2019 | 43

Catalonia celebrates!
The region's co-operative heritage explored
Recent visitors to Barcelona’s Museu d’Història de
Catalunya have been reminded of the significant
role of co-ops in Catalonia’s social history.
The museum staged an extensive exhibition
of the region’s co-op past, going back to the
mid-19th century, with rare photographs
of early consumer, productive, agricultural and
fishermen’s co-ops. The display highlighted
the lead the co-op movement took in providing
working-class schools, at a time when education
was privately run or in the hands of the church.
A photograph from the early 20th century, for
example, shows children and their parents from
La Flor de Maig (the May Flower), a Barcelonabased
consumer co-op, on a mass excursion to the
countryside. As well as operating seven branches,
La Flor de Maig ran its own school and owned
a farm.
The early Catalan co-op movement was
influenced by developments in other countries
including France and Britain – two advocates of
co-operation, Fernando Garrido Tortosa and Joan
Tutau i Vergés, travelled to Rochdale in 1861-62
to see what was happening there. But Catalonia
rapidly proved it was fertile ground for its own
co-op movement: the exhibition carried the
appropriate name Catalunya: terra cooperativa
(Catalonia, a co-operative land).
Early Catalan co-operation was informal but
movement became more consolidated later in
the 19th century, with the passing of the Law of
Associations in 1887, and the Catalan movement
really came into its own between 1931 to 1936,
following the end of the de Rivera dictatorship and
the creation of the democratic Second Republic.
But following the victory of fascism in 1939, the
co-op movement went into decline, and surviving
co-ops found themselves effectively controlled
by the state. The Franco years still cast a long
shadow, and arguably much of the strength of
today’s independence movement in Catalonia
comes from the less than fully effective transition
to democracy after Franco’s death.
The exhibition, which closed last month,
was jointly organised by the museum and
the Catalan co-op research organisation La
Fundació Roca Galès, which takes its name
from another Catalan co-op pioneer. Josep Roca
i Galès (1828-1891) was a working-class activist,
co-operator and republican who founded one of
the first co-operative newspapers in Catalonia,
La Asociación, in 1866. Today La Fondació Roca
Galèscarries on his legacy by publishing its own
magazine Cooperació Catalana, bringing together
the different arms of the contemporary movement.
One of those most actively involved in the
exhibition is Marc Dalmau i Torvà, a founder
member of the worker co-op La Ciutat Invisible (the
Invisible City) which runs a community bookshop
and resource centre in the Sants area of Barcelona.
He stresses that the exhibition benefited from
being a genuinely co-operative endeavour.
Andrew Bibby
Author and
journalist
A group of women
of the La Flor de
Maig co-operative
in the Sant Mateu
municipality. Credit:
Museu d'Història
de Catalunya)
44 | MAY 2019

“The work of producing the exhibition was the
fruit of the co-operative efforts of many people,”
he says. “Twenty or so people collaborated in
the research, writing, editing and design of the
display boards.”
Others helped to find the necessary funding and
with administrative tasks. “Working collectively
is perhaps more difficult to coordinate in practical
terms and can be slower,” says Mr Dalmau, “but
the end result is always a richer one.”
One of the main reasons to remember the
country’s co-operative past is to gain insights
for the present and future of co-operation in
Catalonia, he adds. “Recovering the memory of
the past goes far beyond nostalgia. It’s a way
of generating reference points relevant for the
present, feeding the imagination and providing us
with roots which can enable us to build to a future
based on greater social justice.”
Certainly, the emphasis on popular selforganisation
and autonomy which has been
a feature of Catalan co-operation resonates
strongly today, when a significant percentage
of the population is engaged in a lively struggle
for new political and social structures – notably
in the movement to return Catalonia to the
independence from Spain which it had early in its
history and which it also enjoyed again briefly in
the 1930s.
Appropriately, after an extensive review
of Catalan co-operation from the early 19th
century to the dark days of Franco, the exhibition
in the ended with a comprehensive display of the
region’s present-day co-operatives.
And the movement is in good heart. Over 200
new co-ops were established last year (continuing
an upward trend in recent years) – bringing the
total number of registered co-ops in Catalonia
to 4,215. Of these, 3,000 are worker co-ops. The
growth in this model has been driven partly
by worker-run take-overs of failing traditional
companies, partly by activists engaged in social
change but also as a response to unemployment
which was particularly high among young
people following the 2008 financial crash.
A change in the law in 2015, enabling
worker co-ops to be established with just two
worker-members, has also helped this growth.
Worker co-ops are federated in the Federació de
Cooperatives de Treball de Catalunya.
There is also an active consumer co-op sector,
several with many years’ trading experience.
Abacus, for example, has just celebrated its
50th birthday, having been founded in 1968 in
the dying years of the Franco regime. A multistakeholder
co-op with over 1 million members, it
operates a chain of almost 50 shops, selling books,
stationery and toys. Cooperative 70, a consumer
co-op in Caldes de Montbui, also has deep roots
having been formed two years after Abacus.
Catalonia also has some powerful agricultural
co-ops, taking about 40% of total farming output.
Three-quarters of olive oil production is in the
hands of co-ops, and co-ops are very important in
dried fruit and rice production and distribution.
The challenge now, says Mr Dalmau, is to bring
together this established co-op sector with new
agro-environmental co-ops, including recently
established smaller-scale ventures exploring
organic and ecological farming.
Co-operative interest in education also
continues, with around 40 co-op schools coming
together in their own Federació de Cooperatives
d’Ensenyament de Catalunya. And with housing,
Catalonia has been moving in recent years towards
more collective, bottom-up, forms of tenure.
The six independent federations – for worker
co-ops, consumer co-ops, housing co-ops,
schools, farming and for service-based co-ops,
come together in the main Catalan co-operative
organisation Coopcat (la Confederació de
Cooperatives de Catalunya).
What of the future? Mr Dalmau suggests that
the way forward is to engage with key social and
environmental issues. He mentions issues such
as ethical investment and microfinance, socially
useful production, responsible consumption,
renewable energy, recycling and waste
management and the co-operative delivery of key
public services such as education and housing.
Or – as the last display board in the exhibition,
predicting the state of Catalan co-ops in the
year 2030 – puts it: “We can put into practice a
transformative social and economic model which
is at the service of people, the environment and
the territory of Catalonia”.
III Congrés Nacional
de Cooperatives
(1929) Credit:
Museu d'Història
de Catalunya)
“Working
collectively is
perhaps more
difficult to
coordinate in
practical terms
and can be
slower,” says
Mr Dalmau,
“but the end
result is always
a richer one”
MAY 2019 | 45

Co-op Bank
regulatory
failure
By Paul Gosling
The near collapse of the Co-operative Bank in 2013
was the result of a variety of factors and failures. It was
clearly in part caused by weak corporate governance
at board level in both the Bank and its then owner,
the Co-operative Group. Those weaknesses, in turn,
reflected too much control and influence at executive
level and too little challenge at board level.
But why did the regulators not prevent the crisis?
Were they asleep at the wheel? That was the question
posed by the Treasury when it asked a former senior
Canadian banking regulator, Mark Zelmer, to conduct
a review of the failure of the Co-operative Bank.
Zelmer was asked to consider not only what the
former Financial Services Authority (FSA) did wrong,
but also what the replacement banking regulator, the
Prudential Regulation Authority (PRA), and the Bank
of England can learn from the debacle.
“It mainly approved the merger
to contain the potential risk
of a major loss of confidence
in the building society sector
that it judged might emerge in
the event that Britannia failed”
Zelmer’s report has now been published and while
it does not seek to blame the FSA for the Co-op Bank’s
crisis, he is clear that stronger action by the FSA
should have been taken to identify the weakness of
the Bank, to monitor its worsening financial situation
and intervene over the merger with the Britannia
Building Society, which was the main cause of the
near collapse of the Bank. However, Zelmer believes
the FSA was not mistaken in its decision to allow the
Bank’s Project Verde bid for parts of the Lloyds Bank
portfolio to proceed.
As far as the board of the Co-op Bank was
concerned, the merger with Britannia was a great
opportunity to widen the market in which the Bank
operated – it created opportunities to cross-sell
between the mortgages that Britannia focused on, as
well as the banking and insurance products where the
Bank was strong.
But the FSA as regulator had an entirely different
perspective on the transaction.It regarded the Bank
as conducting a rescue of Britannia, preventing
it from folding.
The Bank’s directors were unaware of this
perspective. Nor did the due diligence exercise
conducted by the Bank give the board the necessary
information on Britannia’s weakness. The poison
in the mix was in the Britannia loan portfolio, which
was not properly reviewed in the due diligence.
It was that failure of due diligence that led to the
Bank’s then chief financial officer Barry Tootell, who
was subsequently promoted to chief executive, to be
severely sanctioned. (Tootell was eventually fined
£173,802 and banned from holding a senior position
in an authorised financial institution.)
According to Zelmer, part of the reason for the FSA’s
inadequate response to the Co-op Bank’s crisis – and
specifically its failure to intervene in the right way in
its merger with Britannia – was that the FSA was just
too busy in 2009, the time of the merger. With a wideranging
and systemic banking crisis swirling around
it, the FSA did not have the capacity to address the
specific problems of the Co-op. It seems it was just
thankful that the problems of the Britannia were being
resolved by its incorporation into the Bank.
The context, says Zelmer, was that “from 2008
to 2013, the FSA was busy fighting many fires on
a number of fronts as it managed the failures and
rescues of a large number of financial institutions in
the very febrile economic environment that prevailed
in the aftermath of the worst financial crisis of the
post-war period.”
Zelmer explains that “the FSA was broadly aware
of the prudential risks associated with Britannia
assets when it approved the merger, but the FSA had
to form a view on the Co-op Bank/Britannia merger
in the context of unprecedented conditions that
prevailed in the UK financial system.”
46 | MAY 2019

But it was not part of existing practice of the FSA
to consider whether an acquiring bank conducted
sufficient or appropriate due diligence on an
acquisition target. “The FSA supervision team did not
consider the completeness of the Co-op Bank’s due
diligence work as part of its approval process because
a detailed review of an acquiring firm’s due diligence
was not standard procedure for supervisors at that
time,” says Zelmer.
The report adds: “The FSA approved the merger
because it saw it as desirable for both the Co-op Bank
itself and banking competition more generally, as
well as to contain the potential risk of a major loss of
confidence in the building society sector that it judged
might emerge in the event that Britannia failed. The
FSA and the other Tripartite authorities (HM Treasury
and Bank of England) viewed the Co-op Bank as the
best available safe harbour ... The FSA approved
the merger in 2009 knowing that there would be
vulnerabilities in the merged bank’s balance sheet
and that there was a risk that the bank would need
more capital in coming years.”
Zelmer continues: “In hindsight, challenge by
the FSA supervision team of the Co-op Bank’s due
diligence work might have been helpful in mitigating
that bank management’s lack of risk management
expertise and broader governance weaknesses.”
Another failure followed from the Britannia deal.
The IT system that the Bank had previously procured
was no longer suited to its operations, once the
mortgage business was incorporated.
As a result, a very substantial procurement cost
had to be written off. But the FSA did not pay sufficient
attention to the impact of the accounting write-down
on the value of the Bank’s balance sheet, nor on what
it meant in terms of the Bank’s ability to cope with
further write-offs as the Britannia loan portfolio began
to crystallise large losses. Other large losses followed
because of past mis-selling of payment protection
insurance policies.
As the Bank struggled on, the FSA took insufficient
interest in the Bank’s financial affairs. It underestimated
the challenges the Bank would be faced with in terms
of refinancing. In particular, it failed to take account
that as a subsidiary of a mutual – the Co-op Group –
the Bank could not raise new equity capital without
demutualising. And the FSA took excessive regard
of the clean audit from the Bank’s auditors, KPMG.
(KPMG is expected in the next few days to be fined
£4m by the accountancy regulator, the Financial
Reporting Council, over its flawed audit of the Bank.)
Perhaps surprisingly, Zelmer is not critical of
the FSA for permitting the enlarged but weakened
Bank from bidding for the Project Verde assets of
Lloyds Bank. However, he notes that while the FSA
was concerned about the poor health of the Bank,
HM Treasury was actively promoting the Bank’s
acquisition of the Lloyds Bank portfolio of 632
branches in Project Verde. It would have been better,
Zelmer suggests, if there had been better information
sharing between two bodies which shared regulatory
oversight of the banking sector.
That was then and this is now. The FSA has been
abolished and the PRA takes a stronger approach,
having recognised the things the FSA did wrong. But
that is not to say that the near failure of the Co-op
Bank might not be repeated with another institution.
It could. Zelmer points out that things are getting
better, but are not perfect. The PRA still needs
to build greater capacity. And there remain, he
suggests, particular challenges with smaller financial
institutions. It is to be hoped, though, that we never
see a repetition of something quite so bad as the near
collapse of the Co-operative Bank.
Paul Gosling is author of The Fall of the Ethical
Bank, published by the Co-operative Press
www.thenews.coop/fall
MAY 2019 | 47

BOOKS
Big Brother’s here ... so how do we control him?
Monitored:
Business and
surveillance in a
time of big data
by Peter Bloom
(Pluto Press,
2019, £15)
The rise of digital and the dominance of big data
has been recognised as a challenge for the co-op
movement for some time now. It has prompted the
growth of the platform co-op movement and debate
in sectors ranging from health to agriculture over
the ownership of lucrative data – described at the
recent Way’s Forward conference as “the new oil”.
The implications of this revolution, which brings
the threat of “totalitarianism 4.0” are set out
chillingly by Peter Bloom, head of the People and
Organisations Department at the Open University.
“This new attempt at total control will come in
the form of wearable technology, depersonalised
algorithms and digitalised audit trails,” he writes
– with all movements, actions and preferences
recorded and analysed. And not only that, we
monitor each other, through social media. “Who
hasn’t looked up an old friend or partner on
Facebook?” he asks.
But he also argues that those in power are subject
to less monitoring and scrutiny. “The more morally
and politically unaccountable capitalism and
capitalists are, the more monitored and accountable
the mass majority of its subjects must become.”
Taken to its logical conclusion, this has already
eroded workers’ rights: Bloom discusses the
case of workers in Amazon warehouses, passing
through rigorous security before having their work
electronically timed and tracked.
Much of this has been well discussed elsewhere,
of course, but Bloom offers a useful summary. And
it’s not all doom and gloom: he looks at our use of
the internet for self-surveillance, constructing new
identities for ourselves, and the potent radicalising
effect this can have, for instance with the Black Lives
Matter movement. Even so, these are the exception,
not the rule – and “in the cacophony of publicly
available information now saturating our cultural
landscape, we can easily become deaf to injustice
and the root causes of our collective suffering”.
So what is the solution? Bloom argues for the
“democratisation of big data”, deploying it for
“specific political, ecological and humanitarian
purposes”; this needs the socialisation of digital.
He warns that these efforts may not get past the
stage of “virtual insurgencies” to come to fruition
in real life. Hopefully he is being over pessimistic
– and perhaps the values of co-operation, which
have already seen worker-owned rivals to Uber and
AirBnb, the rise of data co-ops and even a thwarted
attempt to turn Twitter into a co-op – will point
a way forward.
Solidarity: Latin
America and the
US Left in the
Era of Human by
Steve Striffler
(Pluto Press,
2019, £17.99)
Across the borders: The
shifting sands of solidarity
and the left in the Americas
With the Trump era bringing renewed tensions
between the US and Latin America, here’s a useful
reminder that there is also a tradition of solidarity
between the two.
A professor of anthropology at the University of
Massachusetts Boston, where he is also director of
the Labor Resource Center, Steve Striffler (right) tells
the story from the Haitian revolution to the present
day. He explores the impact of US imperialism
on neighbouring countries, analysing early 20th
century events such as the Mexican revolution and
the US occupation of Haiti, the Dominican Republic
and Nicaragua. And he explores the relationship
between the USA and Castro’s Cuba in the context
of the Cold War.
He finds an initial lack of solidarity between the
respective left wing movements in US and in Latin
America, and believes this solidarity void was filled
by the human rights movement, which provided
a professional, legal approach to solidarity,
removing politics from the equation. Modern
Latin American solidarity emerged after 1970s,
when the left in the US went into broad decline.
According to Prof Striffler, the decline of the left,
coupled with the rightward shift of American politics,
the growing influence of neoliberalism doctrine and
Cold War conservatism of labour created a hostile
environment for left internationalism.
He argues that left internationalism has been
crucial for thinking about how forms of liberation,
oppression and inequality are connected across
time and space and how one group of people’s
liberation is linked to the liberation of another.
48 | MAY 2019

How to be a better leader: Key tips from Stefan Stern
Leadership in the world of co-ops and mutuals
will be a key theme at Co-operative Congress in
Manchester on 21-22 June. Fresh from producing his
latest book, writer Stefan Stern, will be sharing his
thoughts in a speech to delegates.
A visiting professor in management practice at
Cass Business School, part of City, University of
London, Mr Stern draws parallels and distinctions
between clichés of leadership, particularly in private
sector business and politics.
His book also provides tips on how to improve
leadership skills and avoid the pitfalls of becoming
a bad leader.
Leadership in co-ops can be very subtle and
powerful, he says, but can also feel more sluggish
than having a big boss in charge.
“Co-ops often show that agreement and common
purpose are much more powerful than commands,”
he says, explaining that this approach can help
address an increasing dissatisfaction with the
traditional command and control approach.
“In a way, co-ops and partnerships are often ahead
of the game in terms of what modern leadership
might look like. You don’t want superstar CEOs but
people who are serving the organisation and sharing
leadership. Leadership is a team effort,” he adds.
The book argues that leaders need to build
a sense of community in their business, which
will give the enterprise a competitive advantage.
Would co-ops be better placed to bring this sense
of community to life? Mr Stern thinks a shared
understanding about what the business is trying
to do means co-operatives have a mental toolkit
already in place, which can help them in terms of
time management.
What are the key qualities for good leadership?
Mr Stern believes leaders have to be sense makers.
“They have to make sense of the world we are in and
tell us why we are doing what we’re doing,” he says.
“If people come to work unclear about what they’re
supposed to be doing then leadership has failed.”
Positivity is another crucial personal trait, he
adds. “No one wants to work for a pessimist or a
deeply anxious or gloomy person, they have to be
positive, this is partially related to purpose and
hoping you are doing something worthwhile.”
The third key factor is that leaders must be aware
that they are serving others.
“Leadership is about everybody else,” says Mr
Stern. “We focus too much on individuals and
personalities. Leadership is a service – it is a big
responsibility being leader and it should weigh
heavily on you.”
“I hope people come away from the book and say,
‘I think I’d be better at leadership if I thought about
more than just myself,’” says Mr Stern.
How to be a
better leader by
Stefan Stern
(Bluebird Books,
2019, £7.99)
MAY 2019 | 49

DIARY
Co-op News AGM 2019
FROM FAR LEFT: CTRLShift: An
Emergency Summit for Change
takes places in Stoke (8-10 May);
Co-op News AGM 2019 (31 May);
Co-operatives Unleashed Conference
held by Co-operative Party Northern
Ireland (22 Jun); and Co-op Fortnight
wants to share values and stories of
co-operative businesses (24 Jun-7 July)
8-10 May: CTRLShift: An Emergency
Summit for Change
An event for change-making
organisations, networks and independent
practitioners, creating a movement
for positive social, economic and
environmental change. Organisers are
looking for ways to shift power over our
democracy, economy and environment to
people and communities across Britain.
WHERE: Stoke-on-Trent
INFO: ctrlshiftsummit.org.uk
10-11 May: Community Led Homes for All
– CCH Annual Conference 2019
The 25th annual conference of the
Confederation of Co-operative Housing
is an opportunity for the sector to come
together to discuss how to build new
homes and grow communities.
WHERE: Chesford Grange, Kenilworth
INFO: s.coop/22faj
18 May: Co-op Group AGM
Voting on motions concerning Fairtrade,
responsible sourcing and colleague
safety, plus elections for membernominated
directors and the
members’ council.
WHERE: Manchester Central
INFO: co-operative.coop/agm-2019
31 May: Co-op News AGM
Come along and meet directors and
staff as we discuss the News’s work.
WHERE: Pauline Green Room, Holyoake
House, Manchester
INFO: thenews.coop/AGM2019
21-22 Jun: Co-op Congress 2019
Includes the Co-op of the Year Awards.
Speakers include writer Stefan Stern
(see book review, p49)
WHERE: Manchester
INFO: uk.coop/congress
22 Jun: Co-op Party Northern Ireland:
Co-operatives Unleashed Conference
The Co-op Party NI launches its manifesto
for Northern Ireland, debates the Party’s
UK policy platform for 2019 and discusses
food justice and climate change.
WHERE: Belfast
INFO: s.coop/22f9a
24 Jun to 7 Jul: Co-op Fortnight
Two weeks of mass co-operation
to spread the co-op word.
WHERE: UK-wide
INFO: uk.coop/fortnight
24 Jun: UKSCS annual lecture
Co-operatives UK secretary general,
Ed Mayo, will expand on his recent
Journal of Co-operative Studies article on
the long history of co-operation, Twelve
Cases of Early Co-operation and Mutuality
WHERE: Leicester Secular Hall
INFO: ukscs.coop
24-27 Jun: 7th EMES International
Research Conference on Social Enterprise
A central meeting place for researchers in
social enterprise, social entrepreneurship
and social and solidarity economy.
WHERE: Sheffield Hallam University
INFO: s.coop/2atdt
1 Jul: Co-operative Education Past
& Future workshop
Organised by Co-operatives East
Midlands to celebrate co-operative
education, in parallel with the Centenary
Year of the Co-operative College.
WHERE: Leicester South Salvation Army
INFO: cooperatives-em.coop
16-18 Jul: Stir to Action Festival
Three days of conversation,
participatory theatre, sustainable
food, livecrowdfunding, idea surgeries,
workshops and virtual reality experiences.
WHERE: Critchill Manor Estate, Somerset
INFO: s.coop/tirfest19
50 | MAY 2019

In partnership with
CONGRESS
MANCHESTER ER 21–222 JUNE
2019
BUILDING
CO-OPERATIVE
PLACES
The flagship conference for the co-operative sector
Inspiring speakers from some of Europe and the UK's leading co-ops
Best practice sharing, practical workshops and networking
Co-operative of the Year Awards
Discounts available for Co-operatives UK members.
Visit www.uk.coop/Congress to book
#CoopCongress

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