Co-op News October 2019: Sustainable Development

OCTOBER 2019
SUSTAINABLE
DEVELOPMENT
How are co-ops
helping to make
the SDGs a reality?
Plus … ICA Global
Conference preview ...
Meet Fairtrade Foundation’s
Michael Gidney ... positive
impacts of the Preston Model
ISSN 0009-9821
9 770009 982010
01
£4.20
www.thenews.coop

PRACTITIONERS
FORUM 2019
Manchester
7 November 2019
PROFESSIONAL DEVELOPMENT
FOR CO-OP PRACTITIONERS
A series of specialist forums: communications
finance governance HR and membership
Mix and match across forums to create
a bespoke programme of learning
A fantastic professional development
opportunity for co-operative practitioners
Learn from experts and network with peers
Discounts available for
Co-operatives UK members
www.uk.coop/pf

Sustainable development
to build a future for all
CONNECTING, CHAMPIONING AND
CHALLENGING THE GLOBAL CO-OP
MOVEMENT SINCE 1871
Holyoake House, Hanover Street,
Manchester M60 0AS
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Rebecca Harvey
rebecca@thenews.coop
INTERNATIONAL EDITOR
Anca Voinea | anca@thenews.coop
DIGITAL EDITOR
Miles Hadfield | miles@thenews.coop
WRITER
Jen Banks
DESIGN
Keir Mucklestone-Barnett
ART & DESIGN PLACEMENT
Owais Qazi
INTERNATIONAL OUTREACH OFFICER
Elaine Dean
DIRECTORS
Barbara Rainford (chair), David Paterson
(vice-chair), Gavin Ewing, Tim Hartley,
Beverley Perkins and Ray Henderson.
Secretary: Richard Bickle
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cooperativenews
“The history books of the future are being written daily.” This was Glenn Bowen,
speaking at the Social Business Wales conference (more on that on p34). But it
stuck with me. The climate crisis, the economy and global politics are all moving
so fast that every news cycle becomes a race to keep up with what monumental
changes have taken place today. What new developments – good or bad – will we
read about in the morning?
In 2015, the UN launched an idea for sustainable development: an agenda of 17
goals to make the world a better place for more people by making it fundamentally
fairer. The timetable for this was 2030. But with 11 years to go, the world is already
set to miss the deadline.
Deadly conflicts, the climate crisis, gender-based violence and persistent inequality
have all played a part in the delay – as was acknowledged at a high-level political
forum on sustainable development at the UN General Assembly in New York in
September (p38). But there is still time to make a difference.
At the forum, member states agreed a concise, negotiated political declaration,
which included an accelerated action plan. They committed to, among other things,
leaving no one behind; strengthening institutions for more integrated solutions;
bolstering local action – and solving challenges through international co-operation.
Conveniently, the International Co-operative Alliance’s General Assembly is
taking place in Kigali, Rwanda less than three weeks later (14-17 Oct), and the role
co-ops can play in implementing some of the SDGs will form the basis of many
conversations there. This issue we’ve caught up with a few of those who will be
facilitating some of those discussions (p42-45). We also hear from the ICA’s own
international development director (Marc Noël, p40) and one of the keynote
speakers (environmental activist Dr Vandana Shiva, p41).
There are more conferences on the horizon, too, with events hosted by the UK’s
Co-operative Councils Innovation Network (p29); the Co-operative Party (p28),
Co-operatives UK (p27) and the Co-op College (p26) – not to mention the NCBA
CLUSA Co-op Impact Conference and the Platform Co-op Conference in the United
States (p50).
The unifying central theme for most of these is development and growth – changing
things for the better through working co-operatively. Whether they’re in local
communities, countries, regions or sectors, co-operatives are resilient – and
hopefully the new developments we’ll read about in the morning will reflect that.
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.
OCTOBER 2019 | 3

Conference preview ...
Meet Fairtrade Foundation’s
Michael Gidney ... positive
impacts of the Preston Model
ISSN 0009-9821
01
9 770009 982010
THIS ISSUE
CLOCKWISE FROM TOP LEFT
Michael Gidney on the future of Fairtrade
(p22-23); How Preston (inspired by
Cleveland) is making a difference through
co-operation (p30-31); Social businesses
impacting Wales (p34-35); Community
engagement at Brighton’s Bevy Pub
(p32-33); and the future of ICA-EU
partnerships (p40)
news Issue #7312 OCTOBER 2019
Connecting, championing, challenging
OCTOBER 2019
SUSTAINABLE
DEVELOPMENT
How are co-ops
helping to make
the SDGs a reality?
Plus … ICA Global
COVER: The 2019 ICA Global Conference
takes place in Kigali, Rwanda on 14-17
Oct. This issue we hear from some of
the speakers who will be taking part
in conversations around co-ops and
the implementation of the Sustainable
Development Goals. Read more: p38-47
£4.20
www.thenews.coop
22-23 MEET... MICHAEL GIDNEY
CEO of the Fairtrade Foundation
26 EVENT PREVIEW: CO-OP COLLEGE
CENTENARY CONFERENCE
27 EVENT PREVIEW:
PRACTITIONERS FORUM
28-37 POLITICS
28 EVENT PREVIEW:
CO-OP PARTY CONFERENCE
29 EVENT PREVIEW:
CCIN CONFERENCE
30-31 THE PRESTON MODEL
The Preston Model is held up as a great
example of co-operation. What are the
differences it has made?
32-33 CLASS IN THE UK
Case study: community engagement
in the Bevy Pub in Brighton
34-35 SOCIAL BUSINESS WALES
Conference report: How are
social enterprises safeguarding
Wales’s future?
36-37 THE COLLAPSE
OF THOMAS COOK
Paul Gosling on the causes – and
chaos around the travel agent’s demise
38-47 SUSTAINABLE DEVELOPMENT
GOALS (SDGS)
39 THE SDGS IN MALAWI
40 INTERVIEW: MARC NOËL
The ICA’s international development
director on what next for development
41 Q&A: VANDANA SHIVA
The Indian scholar, author and activist
on the importance of co-operation
42 Q&A: BALU IYER
SDG 10 (Reduced Inequality)
43 Q&A: MARÍA EUGENIA PÉREZ ZEA
SDG 5 (Gender Equality)
44 Q&A: JÜRGEN SCHWETTMAN
SDG 8 (Decent Work)
45 Q&A: PATRICK DEVELTERE
SDG 12 (Sustainable Production
and Consumption)
46-47 TECHNOLOGY AND THE SDGS
Where do co-ops fi t in?
REGULARS
5-13 UK updates
14-21 Global updates
24 Letters
48 Reviews
4 | OCTOBER 2019

NEWS
ENERGY
Octopus and Co-op Energy agree takeover deal
Co-op Energy has struck an agreement
with Octopus Energy, which will see the
latter take on ownership and responsibility
for the management and supply of
energy to the 300k customers currently
supplied by Co-op Energy, Flow and
GB Energy.
As part of the deal, Octopus will
retain the Co-op Energy brand, while
the Midcounties Co-operative will
retain responsibility for acquiring new
customers under the Co-op Energy brand
as part of its wider utilities strategy
The deal, completed for an undisclosed
sum, will increase Octopus’s customer
base to over a million. Co-op Energy
customers will have access to its
proprietary tech platform and will
receive the same service as Octopus’s
existing customers.
The two businesses say the transaction
also includes the creation of a joint
venture to further develop the community
energy market in the UK. The joint venture
will invest in projects, provide practical
support to community groups and
increase the volume of energy purchased
from community schemes, encouraging
more small-scale generation across
the UK.
Customers of GB Energy and Flow will
now become Octopus Energy customers
while Co-op Energy customers who are
members of the Midcounties Co-operative
will remain as Midcounties members.
The deal could result in some
redundancies, confirmed a Midcounties
Co-op spokesman, adding that the
number of roles affected had not
been confirmed.
Midcounties chief executive Phil
Ponsonby said: “The Midcounties board
is extremely proud of what has been
achieved by our energy business since we
entered a market dominated by just a few
energy companies back in 2011.
“At that time 99% of supply came from
the Big Six and there were fewer than 12
companies in the market. Today there
are over 70 and we firmly believe that
we disrupted the market and played our
part in reducing the dominance of the big
players by providing fair prices, supplying
100% green electricity and supporting
community energy projects all across
the UK.”
Co-op Energy losses affected the most
recent annual results at Midcounties.
While the energy business had grown
its sales to £423m, it was hit by rising
wholesale costs. The society had taken
160,000 customers from GB Energy
Supply in 2016 and 130,000 from Flow
in 2018.
Mr Ponsonby added: “The market is
now more competitive than ever, and it is
clear to us that having the best technology
is absolutely critical to delivering the best
service to customers while maintaining
a sustainable business for the longer
term. Octopus have developed what we
consider to be the most innovative and
customer-focused technology anywhere
in the industry today. But it isn’t just about
technology, one of our strategic objectives
is to make our members lives easier and
our board was insistent that in looking for
a partner, we found an organisation that
shared our values, and put customers,
colleagues and the environment at the
heart of what they do. Octopus firmly meet
these requirements and we are delighted
to be partnering with them.”
Greg Jackson, CEO of Octopus Energy,
said: “This acquisition and our ongoing
partnership with Midcounties is another
step on the road to improving the domestic
energy market for good. Our renewable
energy supply and outstanding technology
is now delivering award winning service
to over a million homes in the UK with
100% green electricity as standard.
Co-op is one of the most well-respected
British brands and we’re delighted to be
working with them alongside our other
cherished partners.
“I am also very excited about our
joint venture for community energy. We
have been hugely impressed by Co-op
Energy’s achievement in this area and we
believe that together we can help even
more people from across the UK to come
together in developing new sourcesof
sustainable power.”
Peter Earl, head of energy at
comparethemarket.com, believes the
move could lead to confusion among
consumers in an already complex
market. “Co-operative Energy customers
will see the management and supply of
their energy change to Octopus Energy
– a different company entirely – yet
Co-operative Energy will maintain its
brand and continue to sell energy,”
he said. “The potential for confusion
amongst consumers is real.
“Only three years ago, GB Energy
customers were moved to become
customers of Co-operative Energy as
a result of GB Energy ceasing to trade.
At a minimum, consumers need clarity
on who is supplying their energy, and
not to be unsure who to contact for
customer support.
But he added: “The rise of start-up,
challenger energy suppliers provides
consumers with greater choice beyond the
Big Six, and healthy competition typically
leads to customers securing the best
value tariffs.”
OCTOBER 2019 | 5

p The Group’s headquarters at Angel Square, Manchester
CO-OP GROUP
Half-year results hit by drop in funeral business
The Co-op Group announced its half-year
results last month, with pre-tax profit
down to £25m in the 26 weeks to 6 July –
from £44m in the same period last year.
The retailer says the drop in profit was
the result of an unexpected 10% fall in
the death rate, which affected its funeral
business. The division saw a 6% drop in
revenue, with fewer funerals adding to its
decision not to increase prices.
Food sales rose 3% to £3.7bn with the
retailer recording 22 straight quarters of
like-for-like sales growth. Strong food
sales and the retailer’s acquisition of
Nisa led to a 12% rise in Group revenue
to £5.4bn. Net debt also increased from
£714m in January to £784m.
During the six months, the Group
returned £29m to members and £6m to
4,000 local causes.
Co-op Health is expected to be rolled
out nationally by early 2020, in an effort
to bring convenience to pharmacy and
health services.
The Group said its forecasts had taken
into account the potential impact of Brexit
on the business. It warned about increased
risk of some disruption to its supply chain
and said it would be stockpiling items
including water and toilet paper ahead
of Brexit.
Chief executive Steve Murrells said:
“We’ve enjoyed another good six months
where the strength of our business
has led to a further £35m of value
being generated for our members and
their communities.
“Our food business continues to
perform strongly in a highly competitive
market and has now recorded 22
consecutive quarters of like-for-like
sales growth. As our largest business,
it is providing the fuel for our growth
in terms of member value and
community impact.
“In funerals we are actively repositioning
the business to meet the
changing needs of our members. We are
the market leader but we will also lead
the market in providing better choices
and options for our customers in the years
ahead. Likewise, the development in our
insurance, legal and health businesses
will enable us to significantly broaden
the range of services, in areas where our
members know the co-op difference can
be clearly seen.”
Chair Allan Leighton said: “We have
made further progress during the first
six months of this year and the strength
of our business can be seen by our
underlying financial position and through
the increasing impact we’re having in
local communities.
“The Co-op is now 175 years young,
and we have worked hard to ensure
that we remain relevant to all generations
and in particular younger co-operators
– whether this is using our presence
at eight music festivals to introduce
people to our values and ways of doing
things, or by developing motor insurance
products specifically with the needs of
young drivers in mind.”
He added: “The Co-op Group is thriving
and we are committed to growing our
co-op difference and impact for
generations to come.”
u Group signs UN climate pledge: p9
u More retail results: p7-8
6 | OCTOBER 2019

Food chief calls for action to tackle shock rise in retail crime
Crimes against shop workers are at
epidemic proportions, according to a new
report funded by the Co-op Group.
The research, by Dr Emmeline Taylor
from City, University of London, describes
the impact and motivations of violence in
the retail sector.
Figures from the British Retail
Consortium show that workers fell victim
to 42,000 violent incidents last year, with
115 workers physically attacked every day
and many more cases of verbal abuse
and threats.
Meanwhile, the Home Office Commercial
Victimisation Survey shows that assaults
and threats toward retail and wholesale
staff are at the highest level since 2012.
According to Dr Taylor’s research,
shop workers report severe mental health
consequences from violence, including
long-lasting anxiety and post-traumatic
stress disorder.
Challenging shop thieves is the number
one trigger for violence and verbal abuse
in the retail sector, accounting for 25% of
incidents, says the report.
“Multiple data sources show that the
frequency and severity of violence towards
shop workers is increasing,” said Dr
Taylor. “Often ignored as ‘retail crime’ and
therefore somehow victimless, let’s not
forget that behind each and every statistic
is a person who has directly experienced
violence or verbal abuse while simply
doing their job... More needs to be done to
protect shop workers.”
She added: “There are several
actionable recommendations for the
industry, government and communities
that, if implemented, I believe will
begin to reverse the upsurge in violence
occurring in our shops. But tackling
violence requires long term meaningful
investment in communities coupled with
an effective criminal justice system that
works to address the root causes of crime.
Violence is preventable, not inevitable.”
In light of these findings, the report asks
for a review of the Anti-Social Behaviour,
Crime and Policing Act (ASBCPA) 2014, to
consider the impact that financial values
set in the Act have had on levels of theft.
Co-op Food CEO, Jo Whitfield, said:
“Nothing is more important to me than
protecting our colleagues at the Co-op.
I’ve worked in retail businesses for more
than 20 years and I’ve never seen such
high levels of violence and abuse. And
it’s having lasting effects on the lives of
workers, both mentally and physically.
It is not part of the job to be verbally
abused, threatened or attacked.
“We hope the report’s recommendations
force the government, businesses, law
enforcement and trade unions to act
together to develop a strategy to protect
all shop workers.”
In another area of concern over worker
welfare, the Group has teamed up with
Wellcome and public engagement
consultancy Liminal Space to investigate
the effects of night shifts on health.
The research project, Night Club, brings
sleep experts and workers together. It is
visiting all of the Group’s distribution
depots, starting with Newhouse in
Motherwell, where shift workers can talk
directly with qualified sleep specialists
and get health advice.
RETAIL
Trading profit rises 8% in Scotmid’s interim results
Scotmid Co-op has recorded a trading
profit of £2.5m for the 26 weeks to 27 July,
up 8% on the equivalent period last year.
The society, which celebrates its
160th anniversary on 4 November, said
its turnover was up £3m to £190m, and
reported a “strong balance sheet with
assets of £104.5m”.
Chief executive John Brodie said: “We’re
pleased to announce another strong half
year performance – achieved in the face
of challenging cost pressures and the
uncertainty surrounding Brexit.
“Food convenience and property were
the main drivers. The performance of our
food stores was particularly encouraging
with the continued work on our ‘famous
for food’ strategy helping to drive growth.
“In the face of significant market
challenges for non-food retailers,
Semichem held its position assisted by
successful cost control. Funerals conducted
were down compared to a strong result at
the interim stage last year, reflecting the
cyclical pattern of this business.”
He added: “Scotmid has been serving
our communities for 160 years and in
recent times this has been demonstrated
by a range of community support
including the Community Grant scheme,
Community Connect and funds raised for
our charity partners.
“A few weeks ago saw the conclusion of
our charity partnership with the Scottish
SPCA, RSPCA and USPCA with the
magnificent sum of £325,000 being raised
to help fund the education of primary
schoolchildren about animal welfare.”
Mr Brodie said the society has performed
strongly despite less favourable weather
compared with last summer and the
ongoing uncertainty surrounding Brexit.
“The position on Brexit remains unclear
and the possibility of a no deal makes it
p John Brodie
hard to predict the impact on the society’s
second half performance.
“The society will therefore continue to
focus on matters within our control and
celebrate the success of Scotmid’s 160
years of serving our communities and
improving people’s everyday lives.”
OCTOBER 2019 | 7

RETAIL
Central England hails growth in half-year sales
In its half year results to 10 August 2019,
Central England Co-op hailed an increase
of sales by £7.7m to £484.6m, aided by
new store openings and an expanded
Travel Shop network.
Trading profit was £11.4m, down from
£12.9m the previous year, but chief
executive Debbie Robinson said this was
“in line with budget and reflects a steady
performance for the society in the face of a
highly competitive retail environment and
uncertain economic backdrop”.
Investment over the period saw the
opening of four new food stores and one
funeral booking office, alongside the
refurbishment of nine other sites. Further
investment is planned for the second half
of the year and on into 2020.
Capital expenditure over the period
totalled £10.7m, with the society enjoying
strong cash generation of £25.3m.
Sixty groups and good causes shared
£90,000 from the society’s Community
Dividend Fund and £2.3m was distributed
to members, colleagues and the wider
community. And the co-op pioneered
a scheme to redistribute food to local
causes, as it linked up with FareShare East
Midlands to donate the equivalent of over
1.6 million meals to people in need.
The rollout of a raft of new security
measures in food stores has seen burglaries
drop by 6% and robberies drop by 30%.
Ms Robinson added: “In difficult times,
I believe our co-operative difference will set
us apart and see us thrive while others may
flounder. Together we will grow and prosper
by embracing our values of self-help, selfresponsibility,
democracy, equality, equity
and solidarity.”
Society president Elaine Dean said: “So
far this year we have seen the arrival of
our new chief executive, Debbie Robinson,
following the retirement of her predecessor,
Martyn Cheatle. Debbie joined us in March
and really hit the ground running from
day one – you may already have spotted
the many changes taking place as Debbie
p Debbie Robinson
drives us forward as a community retailer.
“Despite facing difficult trading
conditions, our society is holding its own in
a competitive and challenging market.
“The board has commenced a detailed
review of our strategy with the aim of
confirming our ambition to be the best
UK co-operative and to be a leader in the
movement when it comes to good practice.”
Central England’s full year results are
due at the end of January 2020.
RETAIL
John Lewis reports half-year loss and warns of Brexit impact
Employee-owned retailer John Lewis
Partnership has reported a half-year loss
of £25.9m, down from a profit of £0.8m
last year.
Chair Sir Charlie Mayfield said the UK
retail map is being “re-drawn” and trading
conditions remain difficult – and repeated
his warnings in previous results that
a no-deal Brexit would have a significant
impact on the business.
Results at the Partnership’s grocery
business Waitrose & Partners rose £14.1m
to £110.1m, largely due to property profits
this year, but also from an improvement
in gross margins and a strong
operational performance.
At John Lewis & Partners, operating
losses rose £42.5m to £61.8m, reflecting
lower sales in categories with more
considered purchasing, cost inflation
(including non-management pay) well
ahead of the level of sales growth,
and higher IT costs.
Profit before tax was £191.5m,
up £185.5m.
Sir Charlie said: “We have historically
made the majority of our profits in
the second half of the year. Although
we expect retail conditions to remain
challenging, we are pressing on with
key areas of innovation such as Waitrose
Unpacked and the renewal of key ranges
in areas like menswear and home.
“Over the next 12 months, we will also
accelerate our transformation of the
Partnership to deliver innovation faster
and increase emphasis on the competitive
difference of Partners.
“However, should the UK leave the EU
without a deal, we expect the effect to
be significant and it will not be possible
to mitigate that impact. In readiness, we
have ensured our financial resilience
and taken steps to increase our foreign
currency hedging, to build stock
where that is sensible, and to improve
customs readiness.
“Brexit continues to weigh on
consumer sentiment at a crucial time
for the sector as we enter the peak
trading period.”
In his statement Sir Charlie, who
stands down as chair next year, saluted
his replacement, Sharon White, who
will be the sixth chair of the John
Lewis Partnership. He said: “She is an
inspirational leader with the skills to take
the Partnership forward and will take up
her position in early 2020.”
8 | OCTOBER 2019

ENVIRONMENT
Co-op Group signs UN’s
climate pledge – while
Ecology BS leads way on
banking commitment
The start of the United Nations’ General
Assembly in New York saw the launch
of new pledges on the environment and
banking – and from the UK, the Co-op
Group and the Ecology Building Society
are among the first signatories.
The Co-op Group is the first UK retailer to
sign the Our Only Future climate campaign,
which calls on global businesses to help
cap global temperature increases to 1.5°C
above pre-industrial levels.
The move follows the Group’s
commitment earlier this year to further
reductions in its greenhouse gas emissions
of 50% by 2025. It said it has halved
emissions in the 10 years from 2006 and
by 20% in the last year alone.
Measures taken by the retailer include
the use of natural refrigerants, and
minimising environmental impact
through responsible sourcing on products
such as sustainable soy. All its stores,
offices and funeral homes already use
100% renewable electricity.
Its Only Future targets are aligned to a
net-zero future and will be independently
verified and assessed by the Science
Based Targets initiative (SBTi). Scientists
say these targets are necessary to prevent
the worst impacts of climate change.
Michael Fletcher, chief commercial
officer for retail at the Group, said:
p Paul Ellis, chief executive of the Ecology Building Society
“Today is an important day in the global
fight to combat climate catastrophe and
we commend the UN in initiating such
a large-scale call to action. It’s pleasing
to see our co-op take its place alongside
other prominent businesses who share
our desire to take immediate and
decisive action.
“Accelerating efforts, by working
collaboratively with independently
agreed, accountable science-based targets
in place, is the only way to proceed.”
Another climate action from the UK
co-op movement saw sector body
Co-operatives UK join the global Climate
Strike, held around the world on 20
September, and called on other co-ops to
join the action.
General secretary Ed Mayo said:
“Co-ops have always been at the forefront
of climate change activism, and we’re
standing in solidarity with young
campaigners, who are the co-operators
of the future.”
Meanwhile, Ecology Building Society
became one of the founding signatories
of the UN’s Principles for Responsible
Banking, a global initiative to align
banking business with the Sustainable
Development Goals and the Paris
Agreement on climate change.
An ethical finance pioneer, Ecology
specialises in environmental lending and
sustainable communities.
It is the first building society to sign
the principles, and joins a coalition
of 130 banking providers worldwide,
representing over US$47tn in assets.
Ecology CEO Paul Ellis said: “Given the
scale of the climate and ecological crisis,
we need finance that serves people and
planet. The principles have the potential
to drive systemic change, ensuring that
the purpose of banking extends beyond
profit to creating positive social and
environmental impacts.
“Signing up to the principles wasn’t
a difficult decision for Ecology as we’ve
been acting as pioneers of environmental
finance since we were established. We’re
proud to support these concerted efforts to
build a sustainable future.”
Other signatories include Dutch banking
co-op Rabobank, European ethical banking
specialist Triodos, Canadian credit union
federation Desjardins, Costa Rican credit
and services co-op Coopeservidores, and
French co-op bank Credit Agricole SA.
“The principles are a guide for the
global banking industry to respond to,
drive and benefit from a sustainable
development economy,” said UN secretary
general Antonio Guterres. “They create
the accountability that can realise
responsibility, and the ambition that can
drive action.”
OCTOBER 2019 | 9

POLITICS
Co-op agenda is ‘common sense’ for all parties, says Co-operatives UK
With a general election looking imminent,
Co-operatives UK has launched a
campaign encouraging parliamentary
candidates to support the sector.
Themed “It’s common sense”, the policy
agenda calls on the next government to
unleash the potential of the co-op economy.
It urges action to aim for one million
employee and worker owners by 2030,
help communities take control of their
local economies, support high-impact
co-op development, improve the
operating environment for co-ops and
mutuals and support sector investment.
To achieve this, Co-operatives UK
suggests measures such as providing
funding for local awareness and
support programmes, and extending the
£3,600 income tax free allowance on
bonuses for employees of trust-owned
companies to bonuses paid to members
of worker co-ops.
Other steps include earmarking 25% of
the new UK Shared Prosperity Fund for
community-led economic development or
using the next tranche of dormant assets
to establish ‘community wealth funds’.
Another proposal is to offer corporation
tax exemption of a percentage of
any surplus that a co-op chooses to
pay into an accredited co-operative
development institution.
LEPs and combined authorities
should also include support for co-op
development in their Local Industrial
Strategies and ensure they have the
funding to make an impact, adds
Co-operatives UK.
In terms of legislation, the policy
agenda proposes giving co-ops the option
of applying statutory protection to their
common, non-distributable capital. At
the same time, it believes legislative
responsibility for co-ops should be moved
from the Treasury to the Department
for Business.
To support investment in co-ops
and mutuals, the trade body advises
establishing criteria and a checking
process that allows some co-operative
societies to benefit from Social Investment
Tax Relief; creating a new tax relief
that exempts from corporation tax a
percentage of any surplus that a co-op
pays into its non-distributable reserves;
and supporting the British Business
Bank to create a new equity-based
impact investment fund that responds
to the distinct nature of co-ops and
other mutuals.
Co-operatives UK is asking members
to share its policy agenda through their
networks and email it to their local MP and
prospective parliamentary candidates.
BREXIT
Co-op Party MPs attack government on Brexit
Co-op Party MPs have been vocal in their
opposition to the government’s handling
of the Brexit process and decision to
prorogue Parliament.
The prorogation was ruled unlawful
by the Supreme Court on 24 September,
and when MPs met the following day
Barry Sheerman, Labour/Co-op MP
for Huddersfield, reacted furiously to
comments by attorney general Geoffrey
Cox, who said Parliament had “no moral
right” to sit.
Mr Sheerman responded: “Every word
he has uttered today shows no shame ...
The fact is that this government cynically
manipulated the prorogation to shut
down this house, so that it could not work
as a democratic assembly.
“For a man like him, a party like his, and
a leader like this prime minister to talk
about morals and morality is a disgrace.”
Meanwhile, Party chair Anna Turley,
MP for Redcar, told the BBC she still
wants to see a referendum on a Brexit deal
before a general election. “In an area like
mine, Brexit will increase unemployment
– specifically a no-deal Brexit but even a
soft Brexit,” she said.
“Any agreement is going to the economy
of my region. So Brexit to me is all about
jobs and livelihoods and child poverty.”
From elsewhere in the co-op movement,
Steve Murrells, chief executive of the
Co-op Group, has said the vote to leave the
EU might have been avoided if the UK had
a more inclusive, co-operative economy.
Speaking to the Yorkshire post, he
pointed to a disconnect between voters
and politicians in Westminster.
“What was affecting people locally
in the north wasn’t being recognised by
Whitehall and government,” he said.
“Those problems that were starting
three years ago have now got considerably
worse. One of the solutions is having more
social enterprises and more co-ops to run
business in a different way.
“At a time when there is real division,
the country needs more co-ops and it
needs more collaboration.”
p Barry Sheerman MP
Mr Murrells has also discussed the
Group’s preparations in the event of a nodeal
Brexit, confirming that the retailer
would be stockpiling essentials like toilet
rolls, water and long-life grocery products.
“We’re confident that our supply
chains, certainly in the grocery and longlife
products, will be sufficient to get
through this period of time if we crash
out with no deal,” he said, but warned
“there will likely be some gaps” on the
shelves by November.
10 | OCTOBER 2019

RETAIL
Retail societies
grateful for bumper
food bank donations
p A food bank appeal at Central England
Food bank campaigns at Midcounties and
Central England co-ops look set to receive
donations of more than 250,000 items.
In response to Central England’s
Summer Food Bank Appeal, 165,000
items were donated during a three-month
period – enough food to feed 42,500
children. It was used to create packed
lunches for projects that tackle holiday
hunger during the summertime,
as well as meal parcels for families.
Central England Co-op chief executive,
Debbie Robinson, said: “I and everyone
involved with our Summer Food Bank
Appeal have been overwhelmed with the
stunning generosity of our customers
and members.
“They have ensured that thousands of
children at risk of going hungry have been
fed during the school holidays – ensuring
they remain fit and healthy and could
enjoy their holidays to the full.”
Meanwhile, Midcounties is on track
to surpass last year’s figure of 100,000
donations to its food bank partners.
The co-op works with food banks in the
Trussell Trust’s network, as well as linking
up with schools and community-based
start-ups. In addition, colleagues have
supported the project by volunteering at
the Warwick and Leamington Food Bank.
Mike Pickering, CSR manager at
Midcounties, said: “Our colleagues,
members and shoppers are really engaged
with our efforts knowing that they are
helping to make a difference to the lives
of people in their area. We’ll continue to
work closely with our partners so that we
can continue offering help to those who
need it most.”
Leisure services provider picks up social business gong
Aura Leisure, which manages leisure and
cultural services in Flintshire, was named
Welsh Social Enterprise of the Year at
the Social Business Wales Awards. The
event, hosted by the Wales Co-operative
Centre ahead of the Social Business Wales
conference in Llandudno, north Wales.
u Read more about the conference and
award winners, p34-35
Organic co-op Omsco wins big at Global Cheese Awards
Omsco, the Organic Milk Suppliers
Co-op, has received six awards for its USDAcertified
Organic Kingdom Cheddar range
at the 2019 Global Cheese Awards. The
UK’s largest farmer-owned and farmer-run
organic dairy co-op, which supplies over
70% of the UK’s organic Cheddar, was
awarded three gold results in the categories
of UK organic cheese, finest mature Cheddar
and cheese for export.
Shortlist announced for Community Energy Award
Community Energy England (CEE) and
Community Energy Wales (CEW) have
announced the shortlisted entries for
the 2019 Community Energy Award.
Registration for the conference and awards
is free, and CEE and CEW encourage all
those interested in community energy
to attend. More information is available
tinyurl.com/y6dsrs8n
Heart of England Co-op appoints new director to board
Scott Arlidge was voted on to the board of
the Heart of England Co-op. Mr Arlidge has
been a member of the Society for nine years
and has an extensive background in retail.
He works with the society’s Coventry
Member Committee, and with the Co-op
Group as a Coventry Member Pioneer,
promoting community engagement.
Scotmid aims to raise £300k for stroke survivors
Scotmid Co-operative has announced
Chest Heart & Stroke Scotland as its
2019/20 charity of the year – and that
it aims to raise £300,000 to support
stroke survivors. The retailer is also
partnering with Northern Ireland Chest
Heart & Stroke (NICHS) and England’s
Different Strokes.
OCTOBER 2019 | 11

AWARDS
Revolver coffee co-op celebrates fifth award-winning year
The Revolver World Coffee Co-operative
has won a Great Taste Award for the fifth
consecutive year.
The awards, organised by the Guild
of Fine Food, are an acknowledged
benchmark for fine food and drink.
Winners are presented with a star rating
for the taste and quality of their products.
Although many coffees are entered into
the awards, there are comparatively few
winners and only a small percentage are
Fairtrade coffees.
West Midlands-based Revolver’s
specialty Sumatra coffee achieved a onestar
rating. Judges described it as “big
and bold, smooth within its strength
boundary, perhaps a tad astringent.
Some debate about the strength of
extraction. But it fulfils amply extractions
of Sumatran coffee, a sound choice.”
Revolver’s chair, John Boyle, said: “It’s
the people behind the scenes who make
the magic happen, the credit goes to the
farmers and their co-operatives who
care deeply about the product and our
co-operative colleagues in stores.”
CEO Paul Birch, said: “This is the fifth
year running we have won. It’s great to
work with expert buyers and roasters who
are able to get the best out of the product.”
The co-op has also launched a new
range of luxury Belgian drinking
chocolate in partnership with renowned
Belgian chocolatiers Callebaut. The
product is made out of real shards of milk
or white chocolate.
The chocolate is part of the Cocoa
Horizons Foundation – a programme that
improves the livelihoods of cocoa farmers
and their communities through the
promotion of sustainable, entrepreneurial
farming, improved productivity and
community development.
Revolver is organised as a multistakeholder
co-operative, and members
include producers in the developing
world. It ranks first for ethics as judged by
Ethical Consumer Magazine.
EMPLOYEE OWNERSHIP
Award-winning Scottish
TV firm switches
over to EO model
Eighteen staff at Stornoway-based
production company MacTV have been
given a stake in the organisation after
it became Scotland’s newest employeeowned
business.
Established in 2001, award-winning
MacTV is the largest independent TV
company in the Highlands and Islands.
Specialising in factual documentary, arts
and music programmes, it is one of the
largest producers of programming for BBC
ALBA – the Scottish Gaelic-language freeto-air
television channel jointly owned by
the BBC and MG ALBA.
In recent years, the company has also
been involved in a variety of international
co-productions, working with companies
in Canada, Ireland, Iceland and Wales.
MacTV made the switch to employee
ownership after the retirement of
managing director Bill Morrison, who
wants it to remain in Stornoway and to
retain the company’s positive community
ethos and culture.
With the support of Co-operative
Development Scotland – the arm of
Scotland’s Enterprise Agencies that
promotes employee ownership business
models – an employee ownership
trust has been formed which will
hold 90% of the shares on behalf
of the employees.
Mr Morrison said: “In the 18 years since
it was established, the hugely talented
and hard-working team here at MacTV
have helped build a highly regarded
production company.
“With a workforce truly rooted in
the community, the passion, skills and
local knowledge of our staff is vital to
the quality of our output. A traditional
trade sale may have seen us bought by a
competitor, potentially risking job security
and compromising our offering. Employee
ownership ensures the company is owned
by and run for the benefit of those closest
to it, while providing ongoing economic
benefit to the area by anchoring the work
and jobs in the local community.”
Head of Co-operative Development
Scotland, Clare Alexander, said: “It’s
great to see that a business with such a
distinct and important offering is handing
over the reins to its staff. We wish MacTV
every success and look forward to seeing
how the workforce shapes its future.”
12 | OCTOBER 2019

GLOBAL UPDATES
GLOBAL
Co-ops and credit unions respond to Hurricane Dorian
The Worldwide Foundation for Credit
Unions is sending US$10,000 (£8,149)
in Project Storm Break funds to the
Caribbean after Hurricane Dorian.
Seven people lost their lives and 13,000
homes were damaged or destroyed when
the storm hit the Bahamas on 1 September.
The foundation, the charitable arm of
World Council of Credit Unions, launched
Project Storm Break to allow an immediate
response to natural disasters.
The money will go to the Caribbean
Confederation of Credit Unions (CCCU)
to help credit unions get back up and
running to provide cash and other
financial services.
According to CCCU, one credit union has
suffered flooding up to the second floor of
its building. The federation continues to
assess Dorian’s impact on credit unions
on Grand Bahama and Abaco, the two
Bahamian islands that suffered the most
severe wind and flood damage.
“We want to help these communitybased
institutions get back in business
and servicing members as soon as
possible – even if it is in a parking lot
tent or other temporary location for now,”
said Mike Reuter, executive director of the
Worldwide Foundation.
“Getting these credit unions back on
their feet is the best step we can take to
getting their members back on a path to
a sustainable future.”
After hitting the Caribbean, Dorian
p Storm Dorian taken by Nick Hague on-board the ISS (Photo: NASA)
struck the USA, where electric co-ops have
been assisting with recovery efforts.
Lineworkers – from Southwest
Tennessee Electric Membership
Corporation in Brownsville and
Sequachee Valley Electric Cooperative
in South Pittsburg, Tennessee, headed
for Georgia and North Carolina to
restore power.
“Lineworkers have a desire to serve
others,” says David Callis, executive
vice president and general manager
of the Tennessee Electric Cooperative
Association. “It always impresses me how
quickly our crews volunteer to help, even
without knowing the conditions they will
face or how long they will be away from
their families.”
North Carolina Electric Co-op said its
co-ops were also ready to respond quickly.
“Our state has seen its share of
destructive hurricanes during the last
few years, and co-operative line crews
are storm-tested,” said Nelle Hotchkiss,
senior vice president and chief operating
officer of association services for North
Carolina’s Electric Cooperatives. “They
are highly trained, highly experienced and
committed to restoring power to members
as quickly as is safely possible.”
USA
Jessica Gordon Nembhard is a finalist for the Not the Nobel prize
Political economist Jessica Gordon
Nembhard is one of the finalists for the
Not the Nobel prize.
The prize was created by charity
Promoting Economic Pluralism, which
argues that the Nobel Prize has been given
to ideas which have led to ecological
breakdown and financial crisis.
Dr Nembhard is professor of community
justice and social economic development
in the Department of Africana Studies at
John Jay College, City University of NY.
Her work includes study of communitybased
economic development, alternative
urban development, co-op economics and
worker ownership, racial and economic
inequality, credit unions and communitybased
asset building.
In 2014, she published Collective
Courage: A History of African American
Cooperative Economic Thought and
Practice based on 15 years of research,
and she was inducted into the into the US
Cooperative Hall of Fame in 2016.
Nominations for the prize, who did not
make the final, include Ed Mayo, secretary
general of Co-operatives UK and solidarity
economy project Cooperation Jackson.
14 | OCTOBER 2019

GLOBAL
Big corporates
make ethical pledge
– but co-operative
leader greets it with
‘a dose of cynicism’
A group of 181 chief executives from
some of the world’s largest corporations
have signed a joint statement of purpose,
committing them to delivering value for
all stakeholders.
In addition to generating long-term
value for shareholders, the companies
pledged to deliver value to customers,
invest in their employees, deal fairly and
ethically with their suppliers and support
local communities.
A symbolic document, the joint
statement was announced on 19 August
by Business Roundtable, a non-profit
association.
“This new statement better reflects the
way corporations can and should operate
today,” said Alex Gorsky, chair of the
board and chief executive of Johnson
& Johnson and chair of the Business
Roundtable Corporate Governance
Committee. “It affirms the essential
role corporations can play in improving
our society when CEOs are truly
committed to meeting the needs of
all stakeholders.”
Not all members of Business
Roundtable signed the document, with
seven declining to put their names on it.
State Farm, a mutual insurer, abstained
from signing on the grounds that it has
no shareholders.
Under fiduciary duty, CEOs of
corporations have a legal obligation to
protect shareholder interest.
Commenting on the statement, Doug
O’Brien, chief executive of US co-op
sector body NCBA Clusa, said co-ops are
still the main enterprises contributing to
building an economy for all.
He wrote: “As a member of the
co-operative community, I read this
statement with some optimism, curiosity,
and a dose of cynicism: Optimism because
it is good to see more of the business
community joining co-operatives in
realising the need for businesses to
help create a more inclusive economy;
curiosity as I wondered why it took so
long; and cynicism because I doubt
that the C-Corporation model is an
effective vehicle for this goal given the
overwhelming policy environment that
suggests the continued priority toward
institutional investors.”
Mr O’Brien encouraged those
considering the interests of a broader
array of stakeholders to look at what
co-operative businesses were doing.
“These businesses are owned, controlled,
and benefit the people who use the
business,” he wrote. “Because of this,
co-operatives tend to keep more wealth
local and reflect the values of the people
who use the business – rather than
institutional investors.”
He said co-operative business
models had helped farmers cope with
industrialisation challenges in the 20th
century, enabled rural communities to
bring electricity to the farther reaches
of the country when for investor-owned
utilities refused to do so and allowed
people to control their own financial
futures and keep more local dollars in
their community.
“Co-operatives have been used for
generations and have gone to scale in
empowering people in their businesses
and communities,” he wrote. “Now is time
to look at how this business model can
help empower people and communities in
the future.
“Co-ops are poised to help tackle the
challenges facing this nation and the
globe, such as inequality, climate change
and the sometimes-negative influence
of information technology on our work
and lives.
“We think it’s nice that leaders
from the biggest corporations have
recognised the dissatisfaction with
the status quo. We know that co-ops
are a key strategy to empower people
and communities in building a more
inclusive economy,”
OCTOBER 2019 | 15

GLOBAL
Agropur joins G7 business coalition
to promote inclusive growth
Canadian dairy co-op Agropur is teaming
up with 33 other global companies to
advance human rights throughout their
value chains, build inclusive workplaces
and strengthen inclusion in their internal
and external business ecosystems.
The Business for Inclusive Growth
(B4IG) coalition is the first business-led
initiative of its kind and will work with the
Organisation for Economic Co-operation
and Development (OECD).
It will focus on advancing the G7’s efforts
to strengthen equality of opportunity,
tackle regional disadvantages and fight
gender discrimination.
The coalition was launched on 23
August by French president Emmanuel
Macron at the G7 Leaders’ Summit in
Biarritz, France. The 34 businesses have
committed to investing US$1bn in more
than 50 initiatives. The projects have
already helped 100 million people.
The coalition has developed a threepillar
strategy, with a pledges on
inequalities and advance human rights;
workplace inclusion and diversity; and
value chain inclusiveness. The businesses
will also create an incubator to design or
expand new inclusive business models
and an inclusive growth financing forum,
involving business, governments and
philanthropic actors.
The coalition will share its lessons
during an annual board meeting, with
CEOs and key figures from public and
civil society sectors, including the
International Labour Organization and
the Bill & Melinda Gates Foundation.
Robert Coallier, CEO of Agropur, said:
“We are very pleased to be part of the B4IG
coalition and contribute, with our unique
business model based on co-operative
values, to the necessary shift towards
more inclusive growth.
“We believe we can generate positive
social impacts by helping to build a
stronger, more inclusive workplace and
rural communities. These are important
steps towards a more sustainable future,
a vision that is embraced by our members
p Business leaders from Agropur and the
other companies announcing the Business
for Inclusive Growth coalition
and in line with our promise: ‘Better Dairy,
Better World.’”
Gabriela Ramos, OECD chief of staff
and G7 Sherpa, said: “Growing inequality
is one of the biggest social challenges in
the world today. Sustainable economic
growth means inclusive economic growth.
It means giving every individual the
opportunity to fulfil her or his potential,
the chance not only to contribute to a
nation’s growth but to benefit from it,
regardless of their background or origins.
“The OECD welcomes this initiative
to involve some of the world’s most
important companies to work hand in
hand with governments and the OECD. We
will continue to lead the way in its policy
analysis, research and expertise.”
USA
US farming co-op launches landmark sustainability programme
Land O’Lakes Sustain – the sustainable
solutions arm of the US agri co-op – has
partnered with global food producer Tate
& Lyle to bolster the sustainability of 1.5
million acres of US-grown corn.
The programme will use the Truterra
Insights Engine – technology from Land
O’Lakes Sustain – to help midwestern
American corn farmers measure their
efforts to protect the environment.
Participants will receive customised
support to help them make measurable
improvements on greenhouse emissions,
nitrogen efficiency, water and wind
erosion and soil quality.
Tate & Lyle aims to enable more
sustainable farming practices, support
its customers’ environmental initiatives
and impact reporting, and increase
transparency throughout the food and
beverage industry.
As part of the programme, Tate
& Lyle will use the technology to access
information on the enrolled acreage and
have greater visibility of the improvements
it is helping to drive in air and water
quality and soil health, providing a more
transparent value chain for its customers.
Nick Hampton, Tate & Lyle CEO, said:
“Corn is our main raw material and we are
proud to have the opportunity to make a
positive impact on the lives of US farmers.
Through this unique programme, we are
helping to protect farmer livelihoods and
supporting their work to protect natural
resources by encouraging sustainable
agriculture best practices.”
Beth Ford, president and CEO of Land
O’Lakes, Inc, said: “As a farmer-owned
co-operative, Land O’Lakes knows
stewardship starts at the farm gate, with
the farmer. The Truterra Insights Engine
is changing the game for sustainability
led by farmers and their retailers. It’s
equipping them with new solutions
that help protect the air, soil and water,
and benchmark their progress in a way
that’s meaningful.”
16 | OCTOBER 2019

CANADA
Calgary Co-op pulls its business out of co-op distribution network
Canadian retailer Calgary Co-op is to
cease purchasing from procurement
and distribution co-op Federated
Co-operatives Ltd (FCL), which warns the
decision will have a “significant” impact
on its business.
Calgary Co-op, which reported $1.3bn
in sales in 2018, said in an email to
its 400,000 members that will switch
suppliers to the Alberta-based distribution
arm of supermarket chain Save-On-Foods,
a private company.
The move takes effect in April 2020,
although the retailer will still obtain
gasoline and convenience store products
from FCL. Calgary Co-op says the move
will “better serve members and ensure
long-term sustainability”, and allow it to
add exclusive private brands to its range.
Calgary Co-op spokeswoman, Sage
Pullen McIntosh, said its food business
“operates in an increasingly challenging
economic and competitive market.
“Positioning our food business model
for unique differentiation will allow us
to reflect our members’ needs. We are
accountable to them.”
Calgary Co-op will continue to work with
an increasing number of local producers
and stocking more local produce, she
added, and will be hiring staff to deal with
the change
But FCL, which is collectively owned
by 170 retail co-ops across the prairies
of western Canada, said its largest
wholesale customer’s decision to take its
grocery business elsewhere will have a
“significant” impact on its operations in
Calgary and cut into its bottom line.
FCL’s executive vice president for
customer experience and stakeholder
engagement, Vic Huard, said around 200
jobs will be affected in Calgary, and there
would also be impact on jobs at its head
office in Saskatoon.
“It puts Calgary Co-op in a situation
where they’re sourcing from a direct
competitor, which for us, to be honest,
raises all sorts of questions about the long
term,” Huard said.
But while Calgary Co-op’s decision
is “disappointing”, Mr Huard says the
business will recover. “We’ll weather this
and come out the other side,” he added.
Academic and co-op specialist
Murray Fulton from the University of
Saskatchewan told the Calgary Herald the
switch to a private supplier is an unusual
move for a co-op.
“It’s certainly necessary for co-ops to
be constantly adapting,” he added. “But
under a co-op model, you’re part of a
system and your success is dependent on
the success of the entire system. And in
this case, Calgary Co-op has decided to go
out entirely on their own.”
Toronto housing co-op receives $2.2m from Canadian government
A housing co-op in Toronto has been
awarded CA$2.2m (£1.3m) from the
Canadian government’s National Housing
Co-Investment Fund (NHCF).
Harmony “B” Housing Co-operation
Corp is a 78-unit rental co-op in the
heart of the city. The construction of
its apartments and town houses was
completed back in 1981, and the funds
will enable the property to undergo repair
and modernisation.
The National Housing Co-Investment
Fund (NHCF) is a pillar initiative of the
Canadian government’s National Housing
Strategy – and the largest programme of
its kind in Canadian history.
With a budget of $13.2bn (£8.1bn),
NHCF gives priority to projects that help
those in greatest need, including women
and children fleeing family violence;
indigenous peoples; veterans; young
adults; people with disabilities and those
dealing with mental health problems
and addictions.
The National Housing Strategy (NHS)
is a 10-year, $55bn (£34bn) plan to create
125,000 new housing units; lift 530,000
families out of housing need; repair
and renew more than 300,000 housing
units and reduce chronic homelessness
by 50%.
Adam Vaughan, parliamentary
secretary to the minister of families,
children and social development, said:
“Our government continues to invest in
affordable housing here in Toronto and
across Canada to improve the quality of
life of those who need it most. With this
funding, we are able to give a helping hand
to individuals in need, and in doing so,
we are contributing to the economic and
social wellbeing of the entire community.”
Vit Hrdlicka, treasurer of Harmony
“B” Housing Co-operative, said:
“We are pleased to receive $2.2m in
financial commitment from the federal
government under the National Housing
Co-Investment Fund programme. Access
to this funding will allow us to complete
urgent repairs.”
OCTOBER 2019 | 17

IRELAND
Lakeland Dairies co-op announces 68 redundancies
A major all-Ireland dairy processing co-op
is making lay-offs at its site in Monaghan
to reduce operating costs.
On 30 August the board of Lakeland
Dairies co-op approved a plan to adjust
its processing activities at the site
in Monaghan, which will see some
operations cease or transfer to other
locations. A total of 130 staff are employed
at the Monaghan site, 68 of whom will
be made redundant. Some employees
will be redeployed elsewhere within
the business.
The Monaghan site belonged to
LacPatrick, which merged with Lakeland
in April to form the second-largest dairy
processor in Ireland.
The co-op said the Monaghan site had
faced significant and recurring losses
prior to the merger. It also argued the site
had “little or no investment in processing
capabilities over the years.”
Michael Hanley, CEO of Lakeland
Dairies said: “It is essential for us to realise
efficiencies from within our merged group
of processing facilities and to achieve
sustainable profitability in the interests of
our farm families on a long-term basis for
the future.”
He argued the plan would reduce
operating costs while providing for
the continuation of strategic units for
the business. “Arising from this
adjustment of operations, it is regrettably
the case that a number of redundancies
will be required in Monaghan and we will
enter into consultation to discuss the roles
that will be affected.
“We will also be providing details of any
redeployment opportunities available in
other parts of the Lakeland Group. Of the
130 jobs in Monaghan, there will be some
68 redundancies on the site while some
will be redeployed elsewhere within the
Lakeland Group.
“Lakeland Dairies processes over
1.85 billion litres of milk annually
and allocates this milk as flexibly and
profitably as possible to different sites
and into different product areas which are
in the highest market demand, yielding
the highest milk price, at different times
throughout any given year. While this
development is difficult for everyone
concerned, it is necessary to ensure we
operate our business in the most efficient
manner. It has been the core strategy
of Lakeland Dairies to ensure that all
sites are run as profitably as possible to
ensure we are well-positioned to meet
the demand of a competitive global dairy
market while protecting the future of our
3,200 farm families.”
u Irish co-ops in milk price row - p20
DENMARK
Arla Foods reports positive half-yearly
results but warns about hard Brexit impact
Multinational dairy co-op Arla Foods
has managed to increase its revenue
and profits during the first half of its
financial year.
Revenue for Arla – owned by 10,300
dairy farmers in Sweden, Denmark,
Germany, the UK, Belgium, Netherlands
and Luxembourg – increased to £987m
for the first half of 2019, 3% more than the
same period in 2018.
During the six months, Arla was also
able to provide its farmer-owners the
same milk price. Revenue increased for
some of its brands such as BoB (46%),
Lactofree (6%), Organic (12%) and Arla
Pro (48%), helping to drive the total
Arla strategic branded revenue growth
by 7%.
The co-op said the positive results had
been determined by decreased market
volatility, the success of its transformation
programme, a strong branded agenda
and a co-operative mindset.
Natalie Knight, group CFO, said: “We
have continued to build engagement
and relevance of our brands through
innovative products, brand activation
and digital content. Consumers are
pushing for more nourishing and
sustainable food choices, which is why
our intensified climate agenda will help
increase both the understanding of our
farmer owned co-operative model and our
competitive advantage”.
In October 2018 Arla launched its UK
360 programme, which aims to develop
an animal welfare and farm management
standard for its farmer members. The
co-op is working with retailers to support
farmers during the transition.
Also in 2018, Arla started a threeyear
transformation programme called
Calcium which has delivered €97m of the
€75-100m full year target for 2019.
The co-op believed the programme
could deliver at €100m in 2019 although
it admits that savings will be significantly
lower in the second half of the
year compared to the first half.
In terms of full-year expectations,
Arla warns that external factors that
could negatively impact these, along
with the volatility of the global milk
markets. The co-op’s revenue projections
for full year 2019 are €10.2-10.6bn
with the net profit share at 2.8-3.2% of
the revenue.
But a potential no-deal Brexit could
negatively impact the outlook, warns Arla.
18 | OCTOBER 2019

SWEDEN
Coop Sweden
begins same-day home
delivery service
Coop Sweden has launched same-day
grocery deliveries for online purchases in
the Greater Stockholm area.
The retailer launched the service on
2 September, to meet consumer demand
for flexibility and convenience.
It has partnered with logistics company
Widrikssons Åkeri on the venture,
which uses delivery vehicles that run
on fossil-free fuels certified by the
Swedish eco-label, Bra Miljöval (Good
Environmental Choice).
Customers must place their order
by 11.30am for same-day delivery can
choose from three time slots – 6-8pm,
7-9pm and 8-10pm.
“This is the next step in our bid to
offer the best and smoothest solution for
shopping food online,” said Niklas Zeitlin,
operational manager at Coop Online.
“In recent months, we have continued
to develop our offering and launched
several new delivery methods, but
also started several pilots with new
delivery solutions.
“We want to ensure that our members
and customers receive the service and
flexibility they expect by shopping
on coop.se.”
Coop plans to extend the service to other
areas after initially offering the service in
Greater Stockholm.
Widrikssons CEO Johan Nyblom said:
“Same-day deliveries require smart
logistics, the right vehicles and personnel,
and close cooperation between us as
a carrier and the dealer.
“We are really proud that we have
now come up with a really good solution
alongside Coop, for their members
and customers.”
$24m grants given to worker ownership transitions
US funding institute Kendeda is giving
US$24m in grants to four projects to boost
“democratic employee ownership”. The
fund says it is “dedicated to exploring
how human beings can build a more just
and equitable world, one in which we use
resources wisely and relate to one another
more mindfully”. The grant will enable
more than 100 business transitions.
Woccu helps Venezuelan refugees in Colombia
Hundreds of Venezuelan refugees living
in Colombia can now access savings and
loans through a World Council of Credit
Unions (Woccu) programme. Developed in
the Colombian departments of La Guajira
and Arauca, Woccu’s pilot project is funded
through a donation from the Financial
Center First Credit Union. 25 savings and
credit groups have been established.
Walking the corridors of power ... in co-op shoes
South Korean president Moon Jae-in buys
his shoes from a local co-op called Agio.
The brand was nicknamed The President’s
Shoes after Mr Moon Jae-in was seen
wearing the shoes at an international
meeting. He bought the first pair of Agio
shoes in 2012 and has been a client
ever since. AGIO was set up in 2010 by
current CEO Yoo Seok-young, to provide
employment for people with disabilities.
Philippines pass new law to empower co-op sector
The president of the Philippines, Rodrigo
Duterte, has signed a law that re-organises
the country’s Co-operative Development
Authority (CDA), giving it greater power
to promote co-ops. The Co-operative
Development Authority Charter of 2019
repeals a previous law that was passed in
1990 to revise the CDA’s charter.
Jamaican credit union awards grants to 29 students
The Manchester Co-operative Credit Union
(MCCU) in Mandeville, Jamaica, has
awarded grants to 29 students totalling
$1.9m (£115,000) to assist their secondary
and higher education. Twenty-one students
receive the MCCU’s Primary Exit Profile
(PEP) Bursary award and seven receive the
Sydney Carter Bursary.
OCTOBER 2019 | 19

IRELAND
Row continues
over milk prices paid
by Irish co-ops
The row over milk prices paid by Irish
co-ops to dairy farmers continues, with
sector leaders demanding to know why
payments are falling.
Tom Feelan, chair of the national
dairy committee at the Irish Farmers
Association, has called on co-ops to
address farmers’ questions as to why are
milk prices falling, and why have they
fallen so much behind European levels.
“Is it because of Brexit, is it because
of markets, is it because of supplies?”
he asked. “Why is the gap between the
purchase price index and the price co-ops
pay farmers widening? Farmers need
answers, they need to plan ahead.”
Mr Phelan said average EU dairy market
returns, spots and futures have all been
inching up in recent weeks, and gave the
example of two large European co-ops –
Friesland Campina and Arla – which are
keeping prices steady.
“So why have Irish co-ops been cutting
milk prices several times since the
beginning of 2019?” he asked. “While
overall milk price levels have eased over
that period, European averages have
clearly stabilised since March, yet Irish
prices have continued to dip.”
He added: “Co-ops must send a clear
signal to farmers that they will hold the
milk price to year-end.”
Dairy co-ops blame uncertain product
prices brought on by excess supply
for the problems, with a Dairygold
spokesperson saying: “Dairy markets
have been challenging and uncertain,
with butter returns falling significantly,
far outweighing the marginal increases in
powder prices.
“More recently, cheddar cheese returns
have been negatively impacted, primarily
due to the uncertainty over Brexit.
Regrettably, a downward milk price
adjustment is necessary.”
The spokesperson added: “Dairygold
will continue to monitor market
developments on a monthly basis
and remains vigilant with regard to
maximising the commercial return and
ensuring operational efficiency.”
Ornua, another co-op which has been
revising prices downward, also blames
a fall in cheese and butter prices.
USA
US credit unions to include diversity as the eighth co-op principle
Diversity, equality and inclusion will
become a co-operative principle for credit
unions in the USA.
The Credit Union National Association
(Cuna) voted in favour of a resolution to
adopt the principle, building on the work
of former board chair of Cuna, Maurice
Smith, CEO of Local Government FCU in
Raleigh, who appointed a working group
to examine what the movement could do
to drive diversity.
In February, which is commemorated as
Black History Month, Mr Smith called on
US credit unions to include diversity and
inclusion as a co-operative principle.
While co-operative principles one and
two – open and voluntary membership
and democratic control – imply diversity
and inclusion, he said, there is no explicit
emphasis on these issues.
“The credit union way is, and has
always been, keenly fixated on members,”
he wrote at the time. “Therefore, it stands
to reason that all members should be
engaged in the movement.
“Still, there is more to diversity and
inclusion than financial access for
members. We need to hold each other
accountable for equality, equity, and
opportunity for members, volunteers, and
credit union professionals.
“It must be everywhere from the
grassroots of our communities to the top
of our credit unions or we will not fully
serve our purpose.”
The co-operative principles date back
to 1844 when they were set out by the
Rochdale Pioneers. In 1937 they were
adopted by the International Co-operative
Alliance, which updated them in 1966
and 1995.
“Diversity, equity and inclusion are a
part of what credit unions do each and
every day. Our co-operative principles
have guided us to fulfil our mandate and
be a resource to all consumers – no matter
their income, race, religion. But we’re
committed to doing more,” said Cuna
president and CEO Jim Nussle. “In passing
this resolution, we’re continuing our work
to embrace diversity, equity and inclusion
efforts within our organisation while
we support measures throughout our
movement and across all co-operatives.”
20 | OCTOBER 2019

CANADA
Astronaut Chris Hadfield to launch
Desjardins’ Cooperathon 2019
Canadian co-operative financial group
Desjardins launches its fourth annual
Cooperathon on 2 October, with $100,000
(£62,000) to be won for innovative projects
with positive social impact.
The competition kicks off at the Olympic
Stadium in Montreal with speakers
including Chris Hadfield, the first
Canadian astronaut to walk in space, and
Peruvian teenager José Adolfo Quisocala
Condori, who founded an eco children’s
saving bank aged seven.
Students, professionals, entrepreneurs
and the socially conscious are invited to
bring ideas and innovative solutions for
a series of social challenges. Hundreds
of people are expected to help develop
projects that create a positive impact in
their communities, and work together in
teams to put their ideas into action.
The challenges cover six areas: finance,
environment, agriculture, energy, health
and education, and have been set by
experts in each field. Once the challenges
have been announced and ideas
submitted, Desjardins and Cooperathon
partners will monitor and support the
semi-finalists for 28 days.
Each participant will receive guidance
and support worth $5,000 (£3,000). The
personalised support includes project
meetings, workshops and training with
a variety of accredited experts.
Day one is open to the general public
and features internationally renowned
speakers addressing innovation,
entrepreneurship and social impact.
Guy Cormier, president and CEO of
Desjardins, said: “I’m very proud of the
programme we’ve put together. It relates
directly to our values of engagement,
interco-operation and community
solidarity. I’m honoured to be welcoming
Chris Hadfield and to have the opportunity
to speak with the world’s youngest
co-operative banker.”
p Astronaut Chris Hadfield is among the
opening speakers (Photo: Nasa)
The competition ends on 20 November
with a grand finale at L’Olympia de
Montréal. The winners will receive grants
and funding totalling over $100,000.
NEW ZEALAND
Dairy co-op
Fonterra unveils net
loss of $605m
Dairy co-op Fonterra has announced a
net loss after tax of NZ$605m (£310m) in
its annual results. Chief executive Miles
Hurrell noted an “incredibly tough” year,
but added that the co-op had also made
decisions to set it up for future success.
“These included us reflecting changing
realities in asset values and future
earnings, lifting our financial discipline,
getting clear on why we exist and
completing a strategy review,” he said.
“Many of these calls were painful, but
they were needed to reset our business
and achieve success in the future.
“We made the decision to reduce
the carrying value of several of our
assets and take account of one-off
accounting adjustments.
“When it came to DPA Brazil, Fonterra
Brands New Zealand and China Farms,
we saw there were either some changes
in their local economies, increased
competition or business challenges
impacting their forecast earnings. This
meant we needed to reduce their carrying
value. Clearly, any write-down of an asset
is not done lightly. But what I hope people
can also see is that we’re leading the
co-op with a clear line of sight on potential
opportunities as well as the risks.”
Mr Hurrell said Fonterra’s normalised
earnings per share for the year was 17
cents, which was above the last forecast
for the year of 10-15 cents.
“The gross margin from our largest
business, New Zealand Ingredients, was
$1,332m (£681m), up 3% on last year due
to increased sales and price performance.
“Our Foodservice performance also
improved on last year, with gross margin
up 10%. This was despite lower total sales
volumes, following a slow start to butter
sales in Greater China and Asia.
“But we can’t ignore that we had a
number of challenges across the year.”
In September 2018, Mr Hurrell set out
a three-point plan – take stock of the
business, get basics right and ensure more
accurate forecasts. He said: “I’m pleased
with the progress we’ve made with our
financial discipline. You can see it in our
improved cashflow, reduced debt and
significant cost savings.
“As part of taking stock of our business
we reviewed our asset portfolio and
made significant calls on three assets
we identified as no longer core to our
strategy. We sold Tip Top for $380m
(£194m) and our share of DFE Pharma for
$633m (£323m). We also wound back our
relationship with Beingmate and are now
looking at options to reduce our financial
stake in this company.”
Fonterra also exited its Venezuela
businesses, is closing its Dennington
plant in Australia and is reviewing DPA
Brazil and two of our farm-hubs in China.
“This sort of discipline around
reviewing our asset portfolio isn’t a oneoff.
We need to be continuously reviewing
our assets and making sure they are
meeting the changing needs of our
co-op,” said Mr Hurrell.
“We also set ourselves a target to reduce
capital expenditure by $200m (£102m)
in FY19 and we achieved $261m (£133m).
We reduced our operating expenses by
$185m, year on year.”
OCTOBER 2019 | 21

MEET...
Meet … Michael Gidney,
CEO of the Fairtrade Foundation
As the UK-based Fairtrade Foundation celebrates 25 years of the Fairtrade Mark,
we speak with CEO Michael Gidney about what the future looks like – and how
Fairtrade can weather the changes being seen across the grocery sector.
HOW DID YOU GET INVOLVED IN FAIRTRADE?
Around the time Fairtrade launched in the UK,
I was living and working as a teacher in Kenya and
I saw at first hand the enterprise, creativity and
dynamism in local markets which was a million
miles away from the way Africa was described in
the British media. Certainly aid played a vital role
– as it still does today – but there was so much
untapped potential to fight poverty through trade.
I’ve been working in international development
ever since, with roles at VSO and others, often with
a focus on small-scale enterprise development.
I joined Traidcraft in 2001 – they’re a founding
pioneer of the movement and among the first to sell
Fairtrade products. I’ve been CEO at the Fairtrade
Foundation since 2012.
WHAT HAS BEEN THE BIGGEST IMPACTS
OF FAIRTRADE?
Fairtrade is a movement, bringing millions
of people in the UK closer to the millions of men
and women in developing countries who grow and
make the things we buy. That movement has created
a revolution in the way food is traded – consumers
have shown they really care about provenance,
about where products come from and who made
them. And smart companies have responded.
We have gone from just four Fairtrade products to
5,000, but that would not have happened without
sustained campaigning from the public and
I am incredibly proud of all that our supporters
have achieved.
People across the UK have really taken Fairtrade
to their hearts, perhaps because fairness is a value
that resonates with British identity – most people
wholeheartedly agree with the concepts of a ‘fair
price’ and a ‘fair wage’ for those who produce
No one wants their
coffee to come at the
price of exploitation
our food. This is all the more important when the
people behind our food, clothes, jewellery and
other goods remain exploited by trade. Fairtrade’s
response to that is to rebalance power and price:
through Fairtrade farmers and workers get a better
deal and have more power over their trade. This
helps ensure they are better equipped to tackle
the immense challenges they face – they are
more likely to be able to have enough food year
round, to have a better income, to be organised
and to have a voice. Every Fairtrade purchase
matters, not only because it delivers real impact for
producers, but also it sends a signal to business,
to government and society that the people behind
our goods matter.
WHAT IS THE CO-OPERATIVE CONNECTION?
Fairtrade is all about co-operation. Around the
world there are approximately 1,600 certified
Fairtrade producer organisations – the majority of
which are co-operatives, with membership ranging
in size from a couple of hundred to upwards of
100,000. Together with a smaller number of workers
on plantations, there are now 1.6 million producers
involved in Fairtrade across Latin America, Africa
and Asia.
A cornerstone of the co-operative movement
is the partnership between producers and
consumers and this is also a founding principle of
Fairtrade. In the UK, members of co-operatives are
among Fairtrade’s strongest supporters, actively
campaigning for trade justice and regularly
tabling motions at their AGMs for more Fairtrade
products to be available in stores. This has created
a mandate on which organisations such as the
22 | OCTOBER 2019

Co-op Group have acted with real leadership.
The Group was the first UK retailer to source all
cocoa on Fairtrade terms, and last year saw the
launch of their 100% commitment to Fairtrade
African roses, making them the largest retailer
of Fairtrade flowers in the UK. And in celebration
of Fairtrade’s 25th anniversary they produced a TV
ad promoting their range of Fairtrade wines.
FAIRTRADE IS NO LONGER THE ONLY ETHICAL
MARK AROUND - HOW DOES IT COMPARE TO
OTHERS?
The ‘ethical market place’ is becoming more
crowded, so it’s more important than ever that
people understand that not all certifications are the
same. Fairtrade is by far the best-known and most
trusted ethical trading scheme, partly because of
our independence (we were established by NGOs
and aid agencies including Oxfam, Christian Aid
and the Women’s Institute). Fairtrade has always
been squarely focused on social justice: it is the
only certification scheme that guarantees better
terms of trade for producers, through the safety net
of a minimum price plus an additional premium.
That safety net is as important now as it has ever
been and coffee is a case in point.
The world commodity price for coffee has
plummeted to less than $1 per pound – nowhere
close to covering a farmer’s costs. It’s a scandal,
particularly when consumers are being asked
to pay more than ever. Fortunately, those coffee
farmers able to sell to the Fairtrade market receive
more: farmers earn a minimum price of $1.40 per
pound, together with an additional Fairtrade
Premium of 20 cents per pound which goes to their
co-op for investment in shared priorities, such as
climate change adaptation and mitigation. It is
important that coffee lovers choose their coffee
with care. No one wants their coffee to come at
the price of exploitation.
The coffee crisis shows how much further the
world needs to go to make trade fair. Even though
Fairtrade certification remains absolutely vital
in helping protect producers from the vagaries
of the ‘free’ market, we are also working with
farmers on the ground to deliver innovative new
programmes to drive yet more impact. And the
Fairtrade campaign goes from strength to strength,
with a clear call to government to step up its role
in shaping trade that works for people and planet.
Voluntarism can achieve a great deal but we also
need smart regulation. This is why we also work
hard on a range of public policy areas, from reform
of Competition Law, to government support for
Living Incomes and our support for Human Rights
Due Diligence (HRDD).
HOW CAN FAIRTRADE MAINTAIN ITS VISIBILITY?
AND WHAT DO THE NEXT 25 YEARS HOLD?
Our latest analysis, conducted by GlobeScan,
shows Fairtrade is the most visible ethical label
in the UK; recognised by nine out of 10 shoppers
and trusted by 84% of people. And nearly one third
of the population say they would actively choose
Fairtrade when given the choice. What farmers and
workers need most is to sell more of their goods as
Fairtrade so they can benefit from the better deal
they can get, so of course we do need to maintain
this visibility, to keep encouraging consumers to
buy and businesses to source from them.
It’s reasonable to expect some change over time
in the range of companies supporting Fairtrade.
The good news is that more companies are
increasing their Fairtrade commitments each year:
Waitrose & Partners has now joined the Co-op in
sourcing 100% Fairtrade cocoa for its own-brand
confectionery. The John Lewis Partnership is also
extending their coffee and cocoa ranges and other
recent commitments include Honest Coffee and
a range of cotton T-shirts in White Stuff. We are
proud of our achievements globally but less than
10% of the world’s cocoa for example is Fairtrade
certified, so of course my hope is that Fairtrade
becomes even more part of the norm over the next
25 years.
The people behind goods such as tea, cocoa
and bananas, worth £34bn to the UK economy,
continue to suffer poor living conditions and an
increasingly uncertain future. Poverty is at the
JOIN THE
PARTY!
It’s time to get crafty with some fun bunting you can make at home!
Print out the page, cut out each triangle (you might need an adult to help you), punch a hole
in the top corners and thread through some string. You’re ready to party!
JOIN THE
PARTY!
heart of many of the problems in global trade and
we will not achieve sustainability unless charities,
industry and governments in the global north
and south come together. At Fairtrade we are
totally committed to doing our bit to meet the
targets of the Sustainable Development Goals by
2030 – we are as ambitious now as we were when
we first began. The key to so many problems starts
with tackling poverty and exploitation. Fairtrade
is a proven and valuable means through which
this can be achieved. And remember, to quote
Nelson Mandela, ‘it always seems impossible
until it is done’.
JOIN THE
PARTY!
It’s time to get crafty with some fun bunting you can make at home!
Print out the page, cut out each triangle (you might need an adult to help you), punch a hole
in the top corners and thread through some string. You’re ready to party!
JOIN THE
PARTY
OCTOBER 2019 | 23

YOUR VIEWS
FAIRTRADE FESTIVITIES?
I wonder if co-operatives have plans for
celebrating 25 years of the Fairtrade Mark?
There are planned celebrations in local
groups in October.
Jane Walby
via email
LEGAL LICENSES
Just about everyone except the Home
Office agrees that this policy is ridiculous
but the explanation of what has happened
to Hempen [CBD oil-farming co-op fears
£2.4m loss News website, July 2019] is
extremely misleading.
Prohibition of use of the flowers and
leaves has been written into section 37(1)
of the Misuse of Drugs Act since 1971!
Why is Hempen behaving as if it is news
48 years later? Nothing has changed in
Home Office policy. This is simply a licence
holder breaking the terms of their licence.
It is well established and published
policy for many years that a low THC
industrial hemp licence will not allow
extraction of cannabinoids.
A licence for such an application is
much more difficult to get and much more
expensive. You will need to apply for it on
the same basis as any other controlled
drugs licence and not using the ‘off the
shelf’ low THC industrial hemp application.
Peter Reynolds
via email
RE: GENERATION SHARE – THE CHANGE
MAKERS BUILDING THE SHARING ECONOMY
A fantastic and inspiring book that allies
very well an effective message with
compelling images across the world.
Generation Share brings global citizens
a step closer to embracing this new
phenomenon – which many call the sharing
economy, and which has been widely
perceived as being a Radial Category.
Have your say
Add your comments to our stories
online at 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
João Miguel Oliveira Cotrim
via website
The way we look is changing.
But what we stand for is staying the same.
We deliver vegetarian, natural and
responsibly-sourced products to businesses
and communities across the UK, and worldwide.
And as a worker-owned, equal pay co-op, we’ve
been doing it differently for more than 40 years.
We are Suma.
24 | OCTOBER 2019

The Co-operative Party: a political
manifestation of radical roots
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 looks at some of the early records and
marketing materials of the Co-operative Party – which demonstrate why it was set up in the first place...
Looking at the objectives of the Rochdale Pioneers,
as set out in 1844, it may seem unusual that the
co-operative movement eventually branched out
into politics. One of their principles was to have
political (and religious) neutrality as they wanted
anyone to be able to join their society regardless
of their political or religious beliefs. However,
in later years, and as a reaction to the changing
political climates, co-operators began to re-think
this notion.
In 1881, the Co-operative Union (now
Co-operatives UK) formed a parliamentary
committee. This was in response to increasing
government intervention in economic affairs which
was affecting the radically growing co-operative
movement. Its role was to act as a watchdog on any
legislation which might affect the co-op movement.
From its establishment in 1883, the Co-operative
Women’s Guild was involved in numerous
political campaigns.
The Co-operative Party itself was established
in 1917. A resolution was passed at the
Co-operative Congress of that year, the aim of
which was to seek direct parliamentary and local
government representation. The context of this
was that co-operators felt they had been harshly
treated throughout the First World War. This
meant that despite the movement’s commitment
to political neutrality, it was felt necessary
that there was representation in Parliament.
The first Co-operative MP was Alfred Waterson
in Kettering.
An important landmark in the Party’s
history was the 1927 Cheltenham Agreement.
Made with the Labour Party, this was a formal
recognition of the relationship between the
co-operative movement and the Labour Party.
By the time of the outbreak of the Second World
War, the Party had nine MPs and many
representations on local administrative bodies.
In comparison to the First World War, with the
outbreak of the Second World War in 1939 the
movement had much greater representation in
Parliament and could, therefore, have its voice
heard in the debates on food supplies.
As the 20th century progressed, the co-operative
movement took an active role in politics and
political campaigns such as the anti-Apartheid
protests in the 1960s, when some co-operative
societies refused to sell goods from South Africa.
After a dip in membership and representation in
the 1980s, the Party saw a resurgence of interest
in the 1990s when the movement as a whole
re-discovered its ethical and radical roots.
Today, the Party continues to be active in many
environmental and social campaigns.
The Co-operative Heritage Trust Archive
holds the records of the Co-operative Party,
with the catalogue accessible online through
the Archive Hub: s.coop/23rdl
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
OCTOBER 2019 | 25

Co-operative College
centenary conference
The Co-operative College’s centenary conference is
the highlight of its 100th year. It is taking place in
Rochdale, the birthplace of modern co-operation,
with a three day programme looking at what
makes co-operative education unique – and how
it can offer radical solutions to some of society’s
biggest problems.
Each of the three days will cover a different
theme. The first, Co-operation for a New Generation,
dedicates a day to tackling the issues that most affect
young people, and includes workshops focused
on youth social action and what life is like in a
co-operative school. There will also be plenary
sessions on the future of work.
Day two, Co-operative Education Across the
World, takes an international outlook with speakers
including Ariel Guarco (president of International
Co-operative Alliance), Dame Pauline Green (former
president of the ICA) and Angela Rayner MP (shadow
secretary of state for education) examining what
solutions co-operative education can provide to some
of the biggest challenges facing society.
The third day looks to the future, with workshops
on how to build a co-operative economy, the progress
made on bringing a Co-operative University to life,
and the unique relationship between co-ops and
unions. There will be keynote addresses from Bruno
Roelants (director general of the ICA) and Julie Ward
MEP, plus the unveiling of the College’s new fiveyear
strategy.
Other speakers include: Professor Esther Gicheru
(Co-op University of Kenya); Dr Sonia Novkovic,
(professor, St Mary’s University, Canada); and Andy
Burnham (mayor of Greater Manchester). The event
also includes an inaugural gala dinner and awards
ceremony celebrating the College’s history.
“We can’t wait to welcome delegates from
across the world to our centenary conference, the
flagship event of our centenary year,” said Simon
Parkinson, chief executive and principal of the
Co-operative College.
“As we approach the 175th anniversary of the
Rochdale Pioneers and the birth of the modern
co-operative movement in the UK, we are delighted to
be holding this prestigious event in Rochdale.
“The challenges we’re facing today are no less
profound than those faced by those original 28
pioneers and history teaches us that through working
together, co-operative education can act as a catalyst
towards building a fairer world.”
The Co-operative
College’s centenary
conference
Dates:
Tuesday 26 – Thursday
28 November 2019
Location:
Rochdale Town Hall
More info:
co-op.ac.uk/
centenaryconference
EDUCATION
TO CHANGE
THE WORLD
26 | OCTOBER 2019

Practitioners Forum 2019
The Practitioners Forum, organised by Co-operatives
UK, is a day of learning sessions for people operating
in key roles in co-operative businesses large and
small. There are five strands (communications;
finance; governance; HR; and membership), with four
sessions in each. Delegates can pick and mix sessions
across the strands, which are led by experts from
co-operatives and companies who have experience
and insight to share.
One such expert is Maria Borstnar, a behavioural
insight trainer and consultant who helps businesses
develop “behaviourally informed campaigns and
propositions that are user-friendly and easy to
engage with”. She is the founder of Nudge2Engage,
which aims to help organisations benefit from
behavioural insight, and will be leading a session in
the Membership strand.
“The ‘Nudge’ approach is based on Nobel prizewinning
research,” she says. “Rather than just
focusing on rationality, it takes into account our
emotions, cognitive biases, mental shortcuts and
environmental factors that impact on how we
realistically make decisions – in our own lives and
at work.
“If you are unaware of factors influencing
your customers’ decision-making, you may be
(unknowingly) investing in inefficient marketing
strategies, and developing services that are not
user-friendly.”
Also presenting is Chris Sands, founder of Totally
Locally – a grassroots campaign to bring struggling
high streets back to life. Totally Locally is built around
a message that £5 can make a difference.
“It started with the idea that if every adult in
Calderdale spent £5 per week in their local shops and
businesses instead of online, at the supermarket or
with huge multinationals, it would be worth £20m
going directly back into the local economy,” says
Chris. “That’s a huge amount of money with massive
benefits to the area, for just a tiny bit of effort from
each person who lives there.”
The campaign focuses on collaboration,
encouraging business owners, traders and producers
to work together to create vibrant and sustainable
high streets. A free toolkit means there are now Totally
Locally campaigns taking place in towns across the
world – and a big part of this is #FiverFest, where
towns and high streets taking part put on special £5
offers over one week, to show the diversity and value
of what they sell. The next is 5-12 October 2019.
Other speakers include James Roberts from
the MemberWise Network, who will look at the
importance of understanding member value; Josh
Wheeler from Good Broadcast UK, who will offer
advice on how to generate broadcast media coverage;
and Mel Harris from Sparklab Productions, a podcast
production company.
Colleague wellbeing is a theme for the HR strand,
with Sharon Pegg giving an introduction to employee
wellbeing, Lincolnshire Co-op leading a session on
promoting colleague wellbeing and the Co-op Group
following with a look at how to use what you already
know to shape a wellbeing programme.
The Finance strand will hear about tax updates
from KPMG, which is also presenting a view on the
UK’s economic outlook. And Diana Finch will share
her experience of the Bristol Pound CIC.
Co-operatives UK’s Linda Barlow and Co-op
Culture’s Dr Mark Simmonds will talk delegates
through the nuts and bolts of sociocracy in the
Governance strand, exploring how co-ops are using
this set of tools and principles that ensure shared
power. Participants can also choose sessions on
the importance of member inductions, engaging
employees and involving member bodies and
co-operative governance.
Practitioners
Forum 2019
Dates:
Thursday 7 November
Location:
The Studio,
Manchester, UK
More info:
uk.coop/PF
OCTOBER 2019 | 27

CO-OP PARTY GETS
READY FOR ITS AGM
Focusing on community power and climate change
Registration is open for this year’s Co-op Party
conference, held in Glasgow from October 11-13.
Organisers are expecting hundreds of members
and supporters from across the UK to debate policy
and hear from speakers in the co-operative and
labour movements. They say the event will help
the Party shape its work and campaigns in the
year ahead.
This year’s theme is Building a Fairer Future, with
the Party focusing on “some of the big challenges
our economy and communities face”.
There will be a particular spotlight on climate
change and community, says the Party, with
a showcase for some of the best co-operative
solutions that can be expanded and supported to
build the fairer future we so desperately need.
Policy debates will be held on the Green New
Deal and community, place and power, and there
will be topical discussion on mental health and
modern slavery.
Keynote speakers on Saturday 12 October
include Keir Starmer MP, shadow secretary of
state for exiting the European Union, and Richard
Leonard MSP, leader of the Scottish Labour
Party. On the Sunday, delegates will hear from
Christina McAnea, assistant general secretary
at Unison.
Before the conference opens, on the Friday, there
will be delegation meet ups for the different Party
regions, a welcome reception in association with
Social Enterprise UK, and a Youth Network social.
Other events on Saturday include fairer future
information workshops, an LGBT+ network social,
and the conference party, organised with Scotmid
Co-op, which includes an awards ceremony,
speeches and live band.
The Sunday morning programme opens with
a BAME network breakfast and is followed by the
Party’s AGM and a Women’s Network lunch.
The event comes hot on the heels of the
conference by the Party’s sister organisation, the
Labour Party. In blog, the Co-op Party hailed a
number of co-op successes at the conference – with
Labour reaffirming its commitment to doubling the
UK’s co-operative economy and signalling support
for a co-operative university.
The Party also hosted fringe sessions on safety
for shopworkers and communities, barriers facing
disabled people in self-employment, food justice
and leaseholds.
WRITTEN BY:
Miles Hadfield
28 | OCTOBER 2019

HOW DO WE BUILD
CO-OP PLACES?
CCIN prepares for national conference
The Co-operative Councils Innovation Network
meets in Rochdale on 2 October to share its stories of
people-led local policy making.
This year’s event take the theme of Building
Co-operative Places, which will be discussed in
the afternoon plenary. Cllr Sharon Taylor, chair
of the network and leader of Stevenage Council,
says this means “people in a local area having
more involvement in decision-making about
spacial planning in their area and the services that
are delivered”.
The conference will also feature feedback from the
network’s policy labs, which it has been funding for
INTERVIEW
Cllr Sharon Taylor, chair of the CCIN
HOW DO COUNCILS IN THE NETWORK SELL
THE IDEAS OF THE CCIN TO THEIR PUBLIC?
It’s different in different places. In Preston, the key
driver behind the co-op council was unemployment
– so they speak to people about how it delivers jobs
and supports local businesses. In my own local
authority, Stevenage, unemployment is lower, so
our driver is to design skills programmes to make
sure that people who live here get the qualifications
they need to work.
But we also want to use our local government
spend to support local businesses, keeping that
money in the local economy. We spend around
15% in the Stevenage area, which goes up to
30% if you include the wider area, but that could
be more.
HOW CAN ORGANISATIONS LIKE
CO-OPERATIVE COUNCILS COMMUNICATE
THE IDEA OF CO-OPERATION ITSELF?
As people get more sceptical of mainline politics,
they do understand that if you work together you
get better outcomes; the essence of co-operation is
people working together for common benefit. If a
council works to incorporate people into its policy
making, you get better value for money – because
they tell you what they actually need, it’s not just
some decision makers in a room. And getting
people to contribute to decision making goes right
back to the origins of the co-op movement.
the last two years. “With funding tight, it’s very hard
for councils to find the money to research a policy
idea to see if it works,” says Cllr Taylor. “But we are
an innovation network so this is part of our job – so
we are offering member councils funding of up to
£10,000 to research ideas.”
Keynote speeches come from Steve Reed MP,
honorary president of CCIN and shadow minister for
digital, culture, media and sport, and for children
and families; Andrew Wynne MP, shadow secretary
of state for communities and local government;
and Lord Kennedy, shadow spokesperson for
communities, local government and housing.
WHAT SHOULD DELEGATES LOOK OUT FOR
AT THE CONFERENCE?
There are some great sessions on community wealth
building. And some of our newer members will be
coming up – for instance, Tameside Council, which
has done work on social care. They’d had a difficult
regulator’s report, and in response developed some
much more people-based services.
HOW IS THE CO-OP COUNCIL MOVEMENT
PROGRESSING?
Our great strength is the variety of things going on
in the network – there aren’t any of the challenges
we’re facing that don’t have a co-operative
solution. For instance, we’re taking on climate
change, with councils like Oxford developing real
co-operative approaches; and also the economy,
with Plymouth committed to doubling the size of its
co-op economy.
Our other strength is that we don’t set a formulaic
approach – we want to see our councils innovate
in real time for their own population, and to share
with the rest of us what they find out as they do it.
The conference is a great chance to find out what
everyone is doing, on issues such as housing,
domestic abuse and food.
We’ve been very pleased with the development
of the network – it’s grown hugely; we now have 28
full council members and a huge range of affiliate
members. The Greater Manchester Combined
Authority is an affiliate member, and Andy Burnham
was our first metro mayor to become a member;
we now also have Marvin Rees from Bristol.
Cllr Sharon Taylor,
chair of the CCIN
Politics section _ Co-op Party and CCIN Conference
OCTOBER 2019 | 29

DELIVERING
DEVELOPMENT
What has the Preston model achieved so far?
WRITTEN BY:
Miles Hadfield
The Preston model of community wealth building
has prompted widespread interest in and outside
the co-op movement, with its use of local spending
and people-led employment models to lift the
local economy.
The model was developed by Preston City Council
and the Centre for Local Economic Strategies
(CLES), working with local anchor institutions to
play a collective role in delivering better outcomes
for workers and service users. The model drew
inspiration from the work of the US Democracy
Collaborative in Cleveland, Ohio.
But, six years on from the start of the project,
what results has the Preston model had?
An analysis of anchor institution spend – from
organisations such as the University of Central
Lancashire (UCLan), and the city’s police force and
hospitals – found the procurement spend retained
within Preston was £112.3m, a rise of £74m from
2012/3. Taking in the wider Lancashire economy,
the retained spend is £448.7m, up £200m.
After researching local businesses, the council
found there was a lack of local suppliers to provide
certain services, and worked with UCLan to
encourage worker-led businesses to fill the gap.
Between them, they set up the Guild Co-operative
Network and Preston Co-operative Development
Network, which helped to develop worker co-ops in
the catering, tech and digital sectors.
Individual anchor institutions have taken their
own steps to drive inclusive development. The city
“ To support people
locally, we have got
to change the current
economic model – and
to do that we have to
establish alternatives
and make them
popular with the
people who live here”
council pays all staff at or above the Living Wage,
and is pushing for all employers in the city to do
the same. And it helped develop CLEVR Money,
a credit union operating in Preston, Blackpool
and Fylde, with which council workers can make
payroll savings.
Lancashire Constabulary has also become an
accredited Living Wage employer and is using its
procurement process to drive social value. It has
put social value requirements into its tender and
contract process, is developing mechanisms to
monitor the application of social value, and hosts
‘meet the buyer’ events for local suppliers.
30 | OCTOBER 2019

This led to several small and micro local
businesses taking part in the construction and fit
out of the new police station in Blackpool.
The Office of Police and Crime Commissioner’s
local spend rose from 52% of the total in 2012/13 to
71% in 2017/18.
Preston College had already been incorporating
social value into its procurement process, but after
the anchor institution work began, it has focused
on creating employment opportunities by bringing
in local suppliers to redevelop its premises.
And it works to improve the local economy
and society, delivering English as an additional
language as part of Preston’s City of Sanctuary
status, offering voluntary experience in the local
fire and rescue service and working with local SMEs
to provide employment pathways for students and
community members.
Cardinal Newman Sixth Form College
introduced the Living Wage for all its staff in
2014, later extending this to staff working for its
catering contractor.
This process has seen Preston named most
improved city in the UK in Good Growth for Cities
2018. It has moved from 143rd to 130th in the
Social Mobility Commission Index (out of 324
local authority areas) and has seen 4,000 extra
employees receive the Real Living Wage.
The council has two new worker-owned
businesses, the Larder and Preston Digital
Foundation, and is now working with Liverpool
and Wirral to create a fully licensed North West
Community Bank.
“It is close to securing the £20m in initial funding
which is needed to begin the process of applying
for a banking licence.
“We’re keen to enable the financially excluded
– people and businesses who find it difficult to
borrow money – to get access to banking services,”
council leader Matthew Brown told the Lancashire
Evening Post.
“To support people locally, we have got to
change the current economic model – and to do
that we have to establish alternatives and make
them popular with the people who live here.”
The plan – would see the bank open high street
branches, with accounts and loans limited to
individuals and businesses in the north west.
Cllr Brown added: “If 2% of people move their
accounts to the new bank – or open their first
accounts with us – then we can lend half a billion
pounds to local people.
“But if you could get real grassroots uplift and
support for the concept and encourage 10% of
people to bank with us, then we could recirculate
£4bn locally.”
He said the bank would offer extra resilience
to the region’s economy, insulating it from the
domino effects brought by financial crises like that
of 2008.
Politics section _ Preston Model
OCTOBER 2019 | 31

SERVING UP CO-OP IDEAS
ON A BRIGHTON ESTATE
Lessons from the Bevy on reaching communities
Co-op ideas are moving towards the forefront
of discussion around social and economic
inequality in the UK, with widespread discussion
of the Preston model and co-op councils – and the
Co-op Party continuing to push its agenda.
On the ground, there are many examples
of co-operation in working class communities –
from pioneering housing mutuals like Rochdale
Boroughwide Housing to community businesses
such as Kitty’s Launderette in Liverpool.
This is only natural, says worker co-op advocate
Siôn Whellens, of Principle Six and Calverts:
“Co-operatives are one of the two main historical
products of working class inter co-operation – the
other being unions.”
He argues that the strategy of the movement
should be to “identify when and where working
class groups are organising to further their interests,
get involved on a solidarity basis, learn what the
problems and potentials are, and when appropriate
offering co-operative organising technology and the
co-op system as useful additions to the ‘toolbox’.
This is the opposite of proposing co-ops
as the ‘solution’ to poverty and inequality,
which is the ideology of social enterprise,
charity, David Cameron’s ‘Big Society’ and
state-sponsored co-ops, says Mr Whellens.
Instead, he believes co-operatives should be
projected as a means of working class mutual aid
and independence.
He gives the example of Kitty’s Launderette:
"This is shaping up to be a success because the
group did careful market research on the working
class demographic of its potential customer base,
and carefully aligned the project with the traditions
of working class self-organising in the city.”
One success story of grassroots co-operation is
the Bevy, a community pub on the Moulsecoomb
and Bevendean estates in Brighton.
General manager Iain Chambers said the
community was engaged using the message that
an important local resource – the sole pub in the
neighbourhood – would be otherwise be lost.
He says it’s important to use this sort of
campaign to win people over – “that sense of peril,
of something that will be lost forever. Talking to
the community, it was a sense of, if we don’t have a
pub, we have nowhere to go.”
The best way to organise, he adds, is to put
everyone in a room together to source their
knowledge and make the project inclusive – in the
Bevy’s case, this also meant the minimum buy-in
for community shares was set at £10.
“If you want to raise a large amount, that can be a
disadvantage but on that estate, which has pockets
of extreme low income but also people with decent
jobs, it’s important to bring everyone in,” he says.
The large number of members also helped
change the narrative, he adds, “from one of an
antisocial, abandoned, estate pub to one that says,
these people are pitching and joining together,
even the skint ones are sticking a tenner in.
“It was a dream. The premises had no bar, no
cellar, no nothing, it had been gutted – these
people had to buy into a dream.”
Bringing in large numbers of people meant “a lot
of door knocking”, he adds. “People were totally
new to idea of community ownership. It took a
lot of meetings to really get that message through
that you can come along and contribute – even if
it’s stuffing envelopes, sweeping up, painting some
walls, there’s so much you can do because there’s
so much to be done.
“I say it to any group – to take a community
space, knock on as many doors as possible, meet
as many people as possible. There’s a humility
WRITTEN BY:
Miles Hadfield
32 | OCTOBER 2019

“I say it to any
group – to take a
community space,
knock on as many
doors as possible,
meet as many people
as possible. There’s a
humility involved to
asking people rather
than just saying we
know best”
involved to asking people rather than just saying
we know best.”
Once the idea gained momentum the local
authority and health department came in. “They
realised it was important for people to have
somewhere to meet; loneliness is as dangerous as
alcoholism.
“The local vicar got involved – he is deeply
embedded in community and he gave it
respectability – we held meetings in the church, on
the pews.”
Now, the team is looking to refurbish the pub.
“We’re knocking on doors again; it reminds people
we’re there, and we can ask if they have anything
to offer. You get a better outcome than if you
just spend money without consulting people.
Collaboration brings good ideas.”
In this way, says Mr Chambers, “our spirit of
co-operation is deeply embedded in what we do
– not because people believe in the co-op
movement, but because it’s a natural thing for
neighbours to do when needing a resource.”
That sense of collaboration is spreading across
the estate, he says; for instance, the team from the
Bevy introduced the local school and table tennis
club; as a result, the school now provides the club
with a venue. “It felt like pushing at an open door
because this area is now used to working together.”
He adds: “I hope this will mean that when the
next issue comes up we can say, ‘we can do it’,
rather than have it done to us.
“There’s a sense of planning being done to us,
without us being consulted. The new report from
Oxford Consultants for Social Inclusion says that
when there are no spaces to gather, you don’t even
have a place to protest about not being helped. We
need to count communal spaces as positives.”
For such ideas solutions to be adopted by more
communities like Bevendean, the co-op movement
needs to work hard on its communication, says Mr
Chambers. “More Than A Pub is well resourced,
they’ve put up some fantastic and inspirational
stories but in areas like this, you need more
examples that look like people you know.
“When those stories are represented, you get a
picture of the people involved, the area involved,
and more rounded stories.”
He adds: “Working class means a great many
things – it’s not just about deprivation, although
working class people can be in difficult places.
You’ve got to show what co-ops can do – for
instance in care; care co-ops are an amazing
example of what can be achieved; it’s needed,
it works, it’s what people can understand.”
It’s also important to stress that there’s no real
risk. “You’re putting in sweat and commitment
but you’re not going to lose your house if things
go wrong. There’s a feeling that ‘it’s not for me’ so
you need to show that people can do it, in a very
ordinary way. I’d love to see co-op hairdressers, dogwalking
co-ops – you can give yourselves jobs that
way; you’re not going to make yourselves rich but
you will keep things going.”
But, he warns, there is a danger in telling too
positive a story. “We’re very open about how hard
it is. It’s important, ethically, to be honest; and it
makes people get ready and robust.
“I’ve seen people with poor health drop out or
become ill from the graft of setting up a project like
this and it concerns me that people aren’t given the
full picture. Working class people aren’t stupid,
they can see through things that are happy clappy.”
He says the lack of secondary co-ops to support
the movement is a key obstacle. “It’s too difficult
on your own; you need someone to ask advice.
We were tired from setting up the Bevy and we then
we found we had to work out how to run it.
“Running a community pub is not the same as
running a normal one – you can’t say ‘my gaff my
rules’, it doesn’t work. And barring someone from
the only pub in the area is a big deal.
“But it’s also important that nothing happens
that might close us down – there are people at risk
of isolation, such as elderly people with dementia,
who would have nowhere else to go.”
Despite the difficulties, there is a power in
the Bevy’s co-op nature, he says. “We own the
building, we are allowed to do things in it – that
is very powerful. People realise they can piggyback
on our trust – local councillors and our MP have
their surgeries at the Bevy. It reflects well on them.”
Politics section _ The Bevy Pub
OCTOBER 2019 | 33

SOCIAL
BUSINESS:
Safeguarding the future of Wales?
Wales is home to 2,022 social businesses, which
together employ 55,000 people and are worth
£3.18bn. These people-centred businesses are going
to be integral to the future of Wales, delegates were
told at the 2019 Social Business Wales conference,
held in Llandudno on 25 September.
“The UK is entering its most challenging
period in decades,” said Jennifer Jones, BBC
presenter and host of the event. “There are new
pressures on businesses and communities in
Wales. But the social business sector is one of the
most resilient.”
Social Businesses Wales (SBW) is a project
providing intensive one-to-one support to social
businesses which are looking to expand or create
jobs. It is funded by the European Regional
Development Fund and the Welsh government and
is being delivered by the Wales Co-operative Centre.
Speaking at the conference, SBW enterprise
director, Glenn Bowen, said social businesses can
have the most impact in communities left behind
by post-industrialisation, austerity and poverty.
“The history books of the future are being written
on a daily basis,” he said. “None of us will know
where this mad rollercoaster of Brexit will end …
But people living in post-industrial communities
where well-paid jobs were close to home now have
to commute further, leaving economically inactive,
vulnerable people alone and isolated, especially in
rural areas. We can’t rely on the jobs we used to rely
on. These communities are struggling for a future.”
Social businesses have a critical role to play
here, he said, in creating services and well paid
jobs within communities.
Mr Bowen added: “Every community needs an
economic anchor to exist. For some that will be
a hospital or a university. For others it will be a
private firm established for generations – although
wouldn’t it be great if more of these firms ended
up in the hands of employees? But for many areas
there are no economic anchor institutions. That’s
where the social business sector comes in. We
know we can create jobs. We have immense power
within this movement to make a difference.”
But, he said, it’s not just about jobs, it’s about
people: “Social businesses are people businesses.
We work with people in communities, we help
them highlight the problems they face and
help them find their own solutions.”
And he thinks the future is exciting. “The policy
agenda is moving into our space for the first
time. The traditional economic model is looking
to do things differently and we can do that. As
a movement we are coming together. And we
have new services: The Social Business Wales
New Start initiative is a £3m project supported by
the EU that is aiming to create 200 businesses in
Wales over the next three years; and the Wales
Co-operative Centre and Creating Enterprise
are launching the Social Enterprise Academy
in Wales, which will provide innovative
learning and development programmes for
leaders of companies, social enterprises and
public bodies.”
But for all of this to make a difference the dots
need joining up. In a video address, Lee Waters,
deputy minister for economy and transport,
stressed the need for a “candid conversation about
what we need to do next”.
“We are entering extremely difficult times … the
message of mutual help, solidarity and working
with communities to stop money leaking out
will be crucial,” he said. “We need to focus on
changing the way these patterns of the economy
work and mainstream the principles of local wealth
building. And we absolutely must urgently address
the way our economy works. Because it’s not
working now.”
WRITTEN BY:
Rebecca Harvey
34 | OCTOBER 2019

One way this is being addressed is through the
development of a new social business roadmap.
“We haven’t had a strategy for our sector for 10
years,” said Derek Walker, chief executive of the
Wales Co-operative Centre. “It is clear that we need
one. We won’t realise the potential of the sector if
we don’t put in place a vision for its future.”
He acknowledged there had been a lack of
co-ordination among the agencies that support
social businesses in Wales and highlighted how
feedback from the strategy consultation stressed
the need for better collaboration.
“Now we’re taking charge of our own future,” he
told delegates. “We’re responsible for making that
happen. This is our journey.”
Delegates also heard from ultra marathon runner
Lowri Morgan and author Sam Conniff Allende, who
looked at how to approach different challenges,
and took part in a series of masterclasses that
offered inspiration, ideas and practical skills.
“I want to challenge the perception that it’s
only awesome people who do awesome things,”
said Lowri Morgan. “It’s actually the ordinary
folk that do the most remarkable of things.” She is
one of six people to have completed the Amazon
Ultra Marathon and has also finished the 350-mile
6633 Ultra in the Arctic. Achievements like this are
in part about not giving up, she said, but it’s also
about addressing the fear that we won’t achieve our
goals. “I am somebody who doesn’t have that much
confidence or the biggest belief in themselves, but
I don’t want to be rubbish at life and fail at making
the most of the opportunities I have.”
Sam Conniff Allende, author of Be More Pirate,
has the firm belief that the biggest mistake we
can make is to believe the way things are is the
way things have to be. “The 20th century has
no shortage of rules that need to be broken,” he
said. “It’s time to rewrite some of these rules.”
He believes pirates are some of the original
pioneers, through their sophisticated ways of
organising equally and democratically, with their
own written code of governance. “There’s even a
genealogical link between co-operatives and the
pirates,” he said. “There are seven co-op principles;
six of them appear in the pirate code.”
Jessica Morgan (aka Jessica Draws) spoke about
the power of telling stories and being authentic
in all interactions. “Telling stories matters,” she
said. “Starting conversations about things that
matter to you – and showcasing your process as
well as the end product – will help to build genuine
relationships between people. There is a big
difference between being professional and being
corporate; being your actual self will help your
passion come through.”
Marcus Fair from Eternal Media spoke about his
journey from the depths of addiction to founding
an award-winning film company which makes
“Hollywood-quality productions on a Holyhead
budget.” The business now employs other former
addicts and operates out of a nuclear bunker in
Wrexham. “It keeps me clean every single day and
has done for five years. I now see it doing the same for
others – not just addicts, but hundreds of people –
working through their own myriad of issues [...]
We are saving lives on a daily basis.”
The conference also celebrated the winners of
the Social Business Wales Awards, presented the
previous evening. Aura Leisure was named Welsh
Social Enterprise of the Year, with other winners
including Community Impact Initiative, Down
to Earth, Fern Partnership, Awel Aman Tawe and
Innovate Trust.
Top: Lowri Morgan
Below: Sam Conniff
Allende (Credit: Keith
Freeburn)
Facing: Aura Leisure
was named Welsh
Social Enterprise
of the Year (Credit:
Eye Imagery)
Politics section _ Social Business Wales
OCTOBER 2019 | 35

THE COLLAPSE
OF THOMAS COOK
Retail co-ops say their own travel businesses are secure
More than 150,000 holiday makers had to be
repatriated following the collapse of travel agents
Thomas Cook. The business failure could lead to
the loss of the firm’s 21,000 employees’ jobs – 9,000
of these in the UK – unless the administrators can
sell at least part of the business as a going concern.
While some of those staff are cabin crew and pilots,
a much larger proportion work in retail outlets.
And thousands of those are likely to be former
employees of the Co-operative Group.
The Group entered into a joint venture with
Thomas Cook and the Midlands Co-op back in
2011 – called Thomas Cook Co-operative Travel –
to merge the three high street operations. The
arrangement was intended to reduce operating
costs across the three businesses by £35m a year.
Under the terms of the joint venture, Thomas
Cook owned 66.5% of the merged business,
the Co-op Group owned 30% and the Midlands
Co-op (which subsequently became Central
England Co-op) held 3.5%. The joint venture had
9,000 staff and 1,200 branches, of which 400 had
been Co-op Travel outlets owned by the Group.
Hundreds of jobs were lost through the merger.
A ‘push’ provision in the deal meant the Group
could require Thomas Cook to buy out its share
of the merged business after five years. This was
triggered three years ago, leading to Thomas Cook
paying the Group £50m in instalments – which
have all been paid. Central England received £5.8m
for its stake. Thomas Cook had two years to wind
down the use of the Co-op Travel branding.
Rod Bulmer, the then chief executive of
consumer services at the Co-op Group, said at the
time: “Going forward, having a minority stake in
a travel business does not fit with the strategy of
the Co-op. The financial arrangements for exit
that were put in place as part of the original joint
venture agreement represent the best value for our
members. The payments we receive from the exit
will be used to invest in our core business areas.”
However, there was confusion because the
Co-operative Travel brand has continued.
Several regional co-operative societies operated
travel agency operations under the same
Co-operative Travel branding, unaffected by the
tie-up with Thomas Cook. These societies included
Midcounties, Lincolnshire, East of England and
Chelmsford Star. There was further confusion
because, although the Midlands Co-op sold its
Co-op Travel business, it then merged its core
business with Anglia Co-op to become Central
England Co-op – taking on Anglia Co-op’s travel
business, which is also branded as Co-operative
Travel. That continues as a division of Central
England Co-op.
Both brands have a long heritage. Thomas
Cook was considered the pioneer of package
holidays – beginning in 1841 with a railway
excursion from Leicester to Loughborough (which
is commemorated with a statue outside Leicester
rail station). Co-operative Travel was founded
as an excursion department of the Co-operative
Wholesale Society in 1905, and also initially
focused on rail journeys. Its first overseas holiday
guide was launched in 1920. By the 1950s it was one
of the industry’s top five and was called Travelcare
until its relaunch as Co-operative Travel in 2007.
It had debts of £1.1bn, which
were costing £170m a year to
service. In 2018 it recorded a loss
of £163m on revenues of £7.4bn
The acquisition of the Group and Midlands’
Co-operative Travel businesses is now regarded
as one of the factors in the failure of Thomas
Cook. While mergers with Co-operative Travel
and previously with MyTravel in 2007 were seen
as potentially generating substantial economies
of scale, these were not delivered with sufficient
speed. Many cities and towns continued to have
more than one branch of the enlarged business,
which was operating with excessive overheads.
Moreover, the debt involved in achieving the
merger has proven crippling for Thomas Cook.
It had debts of £1.1bn, which were costing £170m a
year to service. In 2018 it recorded a loss of £163m
on revenues of £7.4bn.
What is strangest about the Thomas Cook
operating strategy is that this debt burden was
taken on as part of the process of enlarging the
retail footprint of the business just at the time
WRITTEN BY:
Paul Gosling
36 | OCTOBER 2019

when increasing amounts of travel commerce were
moving online. Not only were consumers booking
package holidays online rather than in store, but
many more were bypassing travel agents altogether
through mix-and-match flights and hotel bookings,
via specialist websites. Airlines such as easyJet and
Ryanair were also encroaching on Thomas Cook’s
traditional territory.
Brexit was in a sense the nail in the coffin.
Many British consumers were reluctant to travel to
European destinations with the lack of clarity over
issues such as visas, the European Health Insurance
Card (EHIC) and driving licence validity. The loss
of EHICs will drive up travel insurance costs –
and make European travel in effect impossible for
some patients with chronic or acute conditions.
The Brexit impact on sterling – down 20% against
the euro at one point recently – is perhaps an even
more important factor.
Those co-operative societies still running
the Co-operative Travel brand say they remain
optimistic about the viability of their operations.
“Midcounties did not enter into the agreement and
has continued to operate the Co-operative Travel
brand independently throughout, growing quickly
and profitably from 2011 – with turnover rising from
£65m to over £400m today, operating 60 high street
shops, 160 home-based agents and 80 independent
agents as part of the Co-op Consortium,” said a
Midcounties spokesman. He added: “Midcounties
is not affected by the Thomas Cook failure.”
Similarly, Channel Islands Co-op refers to its
own travel business – branded as Travelmaker - as
“successful”. Carl Winn, head of Travelmaker, said:
“We would like to advise all our customers who
have booked a Thomas Cook, Manos or Airtours
holiday through a local Travelmaker branch that
they are protected with ABTA and ATOL bonding.
All our in-store travel advisors are happy to guide
any customers with outstanding booked holidays
through the process of claiming their money back.”
A spokeswoman for Central England
Co-operative said: “We have been truly saddened
by the news regarding Thomas Cook as we have
worked closely with them as part of our travel
business for many years. As an independent travel
agent our priority has been to ensure that all of our
customers currently out in resort get back safely to
the UK... We can reassure our customers that their
package holiday booked with a Central England
Co-operative Travel branch is financially protected
under the CAA ATOL scheme.”
The Co-op Group took the decision to extract
itself from the travel business when the Group
was under the leadership of Peter Marks, who, as
part of the joint venture arrangements, became a
director of Thomas Cook Group plc in October 2011,
stepping down in February 2014.
In 2009, the last year that the Group separately
reported trading figures for Co-operative Travel
it made a small operating profit of £2.5m, down
from £7.9m the year before. In the following year,
Travel’s financial performance was reported in the
annual report along with other items in a loss on
discontinued activities. It looks as if Travel would
have itself been on a journey towards a large loss
without either major restructuring or else the
sale to Thomas Cook. Instead it not only avoided
potentially substantial losses, but also actually
generated a significant capital sum.
Politics section _ Thomas Cook
OCTOBER 2019 | 37

CO-OPS & THE
SDGs
“The 2030 Agenda is coming to life”, said UN
Chief António Guterres on 24 September, referring
to the blueprint for a healthier planet and a more
just world, as he opened the first Sustainable
Development Goals (SDG) Summit in New York. But
he warned that, despite progress, “we must step up
our efforts. Now”.
When the 2030 Agenda for Sustainable
Development and its 17 Sustainable Development
Goals (SDGs) was launched four years ago, co-ops
were excited. This was our arena. Our values and
principles are aligned with the aims of creating a
better world. Democracy, independence, education
and concern for communities are co-op values
which support and underpin a number of the SDGs,
from zero hunger (SDG #2) and quality education
(#4) to gender equality (#5), decent work and
economic growth (#8), reduced inequalities (#10)
and responsible consumption and production (#12).
Members of the International Cooperative
Alliance (ICA) rallied to show their solidarity and
commitment to this new global development policy,
resulting in Coops for 2030 – an online platform
for co-ops to learn about the SDGs, make pledges
to help achieve them and track their progress. And
there have been some phenomenal successes.
But September’s UN meeting came with a stark
warning. Mr Guterres said that while the progress
made on some of the agenda aims was welcome
– such as an end to extreme poverty and hunger,
a low carbon economy, peaceful and just societies,
and human rights for all – the world is set to miss
the deadline. Deadly conflicts, the climate crisis
and gender-based violence shoulder some of the
blame, he said, as should persistent inequality:
“Half the wealth around the world is held by people
who could fit around a conference table and, at
the current pace, almost 500 million people could
remain in extreme poverty by 2030.”
To tackle this, the UN chief called for global
action in areas such as conflict prevention,
development finance, and the climate crisis; local
action to make a difference in people’s lives; and
building up partnerships that include civil society,
media, the private sector, academia and others.
And he welcomed the adoption of the Summit’s
political declaration, “Gearing up for a Decade of
Action and Delivery for Sustainable Development”,
which calls for enhanced action to achieve the
Goals. Member states pledge to mobilise financing,
enhance national implementation and strengthen
institutions to achieve the objectives of the Agenda,
and leave no one behind.
How can co-ops respond to this? The agenda of the
ICA’s Global Conference, held in Rwanda this month
(13-17 October), is underpinned by discussions
around the SDGs. But as the incoming President
of the UN General Assembly, Tijjani Muhammed-
Bande, told UN delegates: “It is necessary to think
of new ways of accelerating SDGs action for those
that are still behind ... Progress is largely uneven
within and across countries and regions.” One
suggestion was to deepen partnerships, both to
“unlock the trillions of dollars needed to finance
the SDGs” and to “solve challenges”.
The declaration stated the need for “international
cooperation” and “enhancing the global
partnership”, recognising that the integrated
nature of the SDGs requires a global response.
It is this partnership work, this co-operation,
where co-operatives should be thriving. Over the
next few pages we hear about the role education
has to play this, and we speak to some of the key
voices who will be discussing the SDGs at the ICA
event. Sustainable development is still the arena
for co-ops.
But we have to do it bigger, better and faster, with
more trust and with more co-operation.
• By Rebecca Harvey
38 | OCTOBER 2019

MALAWI
Through their values and principles, co-operatives
are ideally poised as important organisations to
help achieve the UN’s 17 SDGs. As an educational
charity, the UK Co-operative College (UKCC) has
a clear focus on highlighting just how effective
co-ops are at meeting many of them simultaneously.
In its courses and learning materials, UKCC
frequently highlights case studies from its work
in places such as Malawi, Rwanda and the UK to
demonstrate everyday examples.
For instance, two recent UKCC projects
encouraging organisations to be more aware of the
SDGs were ‘Supporting Co-operatives in Malawi’
and ‘Co-operative Enterprise Pathways for Economic
and Environmental Sustainability in Malawi’
(CEPEESM). There were some real successes, such
as achieving greater gender and youth equality in
governance structures, encouraging co-ops to take
more of a leading role in the care and protection
of the environment, and to focus more specifically
on the provision of quality education and
lifelong learning.
These projects, which completed this year,
assisted with the creation of over 500 co-ops and
helped organisations plan and manage their
business, learn new skills to increase production
and become part of a supportive movement that
provided better work opportunities and incomes.
My colleague Dr Sarah Alldred, international
programmes manager at UKCC, has witnessed this
first hand. “Our work in Malawi over the past eight
years has seen communities transformed and lives
changed for the better,” she says. “By empowering
people with the skills and knowledge to make a
difference, we’ve seen stunning results, including a
683% increase in the amount of households using
renewable energy.”
Following on from this, UKCC is working
in partnership with the German Cooperative
and Raiffeisen Confederation (DGRV) to focus
on strengthening the Malawi Federation
of Cooperatives (MAFECO) and the development
of accessible and relevant member education,
training and information for the growing
co-operative movement.
DGRV has already been working for some
time supporting co-ops in southern Africa, and
through the joint work with UKCC as part of the
Co-operatives Europe Development Platform
(CEDP), a new complementary partnership has
been developed on the ground in Malawi, reflecting
SDG 17 and partnerships for the goals.
In September, UKCC, DGRV and MAFECO jointly
hosted a consultation event with the Malawi
co-op movement, with stakeholders ranging from
grassroots primary co-operatives to the Assistant
Co-operative Registrar from the Ministry of Industry,
Trade and Tourism. The event was designed to
assess the current training and education needs
for co-operatives in Malawi and to enable the
co-operative movement to shape co-op member
education. The day demonstrated the appetite for
a movement-wide co-operative education steering
committee as well as consolidating MAFECO’s
position as the lead for co-operative education.
In addition, MAFECO is working alongside
the government of Malawi (GoM) to create a new
co- operative policy, which will in turn feed into the
development of a revised Co-operative Act. The GoM
recognises co-operatives as private enterprises that
play a significant role in achieving both national
development objectives and also shares the United
Nations’ view that co-operatives are crucial in the
realisation of the SDGs.
John Mulangeni, MAFECO lead, says that until
the support from projects such as CEPEESM, there
has historically been a lack of capacity building
for co-ops in Malawi – and that the partnership
with DGRV and UKCC will be vital for the future
of co-ops in the country.
“It is of great importance that co-ops in Malawi
help the country to achieve the UN SDGs,” he adds.
“In co-ops we hold hands and help each other;
we are both an economic intervention and
a social intervention.”
• By Dr Amanda
Benson, Projects and
Research Officer at
The Co-operative
College
• The College is
hosting a special
FREE interactive
centenary webinar
about the SDGs on 29
October at 16.00 GMT.
See: s.coop/23rdj
OCTOBER 2019 | 39

ICA-EU PARTNERSHIP
The co-operative movement’s engagement with the
European Commission started in 2012 when the EU
co-financed a project called Cooperatives in
Development. Led by Cooperatives Europe, the
project aimed to support the activities of the
Cooperatives Europe Development Platform
(CEDP), which had been running since 2009.
The success of the CEDP, which enabled
exchanges within the global co-operative
network, prompted the Commission to start a new
partnership with the ICA.
Within the framework of the partnership, the
ICA launched the Global Co-operative
Development Platform (GCDP), which enables
co-operative development actors to exchange
knowledge, create synergies and reinforce the role
co-operatives play in international development.
“The objective of the European Commission is to
strengthen civil society organisations, and we take
great pride in seeing the co-operative movement
stand as an important actor amongst them,” says
Mr Noël.
Those involved in the global platform will
be meeting in Kigali before the main ICA
Global Conference.
Other highlights of the partnership include the
preparation of an online world map, to provide
country-by-country data on co-operatives. The
ICA offices are also working with legal experts in
different countries, to examine how legislation is
impacting co-operative development and suggest
improvements. The first results of these activities
will be presented at the conference in Kigali.
Another important area of work for the
partnership is capacity building. The ICA network
is conducting workshops for member organisations
to help them strengthen advocacy skills and engage
further with institutional partners, to benefit from
policy dialogue and funding opportunities.
Similarly, the ICA and its offices are leading
a number of initiatives aimed at young people
interested in co-op models. Earlier this year,
it set up a mentorship scheme for young people
interested in starting a co-op. The Global
Cooperative Entrepreneurs scheme will help
people aged 18-35 from across the ICA’s four regions
to devise co-operative solutions to the needs of
their local communities. “It’s about bringing youth
entrepreneurship high on the international cooperative
development agenda with and through
the co-op model,” says Mr Noël.
In February, the ICA is organising a Global Youth
Forum, which will be held in Malaysia. This will be
an opportunity for young people involved in co-ops
to take part in trainings and peer-to-peer learning
processes, and find out more about marketing,
financing and other business aspects they may
need support with.
With only weeks to go until the Global Conference
in Kigali, Mr Noël says delegates have plenty to look
forward to.
“The main message would be to take the
opportunity to network and exchange ideas with
experts in the development sector. There are many
organisations within and outside the co-operative
movement with whom building partnerships is
going to create really valuable synergies, that can
help us to foster an inclusive and people-centred
growth, in line with our values and principles.”
• Marc Noël is
international
development
director at the ICA
40 | OCTOBER 2019

RURAL ECONOMY
You are speaking at the ICA's Global
Conference in Rwanda, looking at how
co-ops can help to achieve a more solidarity
-based and participatory society. Do you
see a role for co-ops in helping to meet
Mahatma Gandhi’s vision of the selfsufficient
rural economy?
Gandhi understood and practised non violence
– Ahimsa – at a very deep level. We are social
beings, we are members of the Earth community.
Co-operation is the principle on which nature
and community are organised. In a Gandhian
perspective, co-operation is the lived commitment
to non violence at the collective level. Competition
as an imposed ideology and construct is violent
because it disrupts relationships and undermines
our capacity to co-operate on the principles
of solidarity, mutuality and participation.
How does Navdanya promote organic farming
and fair trade? Are any of the farmers you work
with members of co-operatives?
Co-operation is the very basis of the Navdanya
movement. Our foundation is the creation of
community seed banks to reclaim seeds and
biodiversity as a commons, and resist the
privatisation and monopolisation of seed by
corporations through intellectual property rights.
The big chemical companies have been trying to
control and own the seed, and trying to make the
saving and sharing of seed among farmers illegal. We
believe that farmers have a fundamental duty and
right to save seeds, and through seed sovereignty
build food sovereignty. We practise and promote
participatory and evolutionary breeding based on
the recognition of farmers as breeders. And farmers
create collectives as producers of organic food,
joining hands to practise economic and market
sovereignty. Biodiversity-based organic farming
as practised by Navdanya members can feed two
times India’s population. And Navdanya members
practising seed sovereignty, food sovereignty,
knowledge sovereignty and economic sovereignty
and solidarity earn 10 times more than farmers
growing chemically intensive commodities with
costs of inputs and costs of produce determined by
big corporations. In the corporate model, farmers
spend more than they earn, and are getting trapped
in debt. More than 300,000 debt trapped farmers in
India have committed suicide since 1995. Navdanya
works for a hunger-free, suicide-free India.
Do co-ops need to adopt a more radical
approach when it comes to climate change
and the destruction of nature?
We are members of the Earth family. Co-operation
with nature, her laws, her limits has to become the
next step of the co-operative movement to address
challenges of climate chaos, water emergency, and
the threat of extinction. Co-operation now has to
become our common commitment to thrive as one
humanity on one planet.
You have fought against the monopoly
of seeds in the hands the global corporations.
Could the co-operative model be an
alternative – such as in the case of IFFCO,
India's largest fertiliser manufacturer?
Community seed banks are an important aspect
of the alternative to the corporate monopoly on
seed. Some co-operatives have been successful
in keeping seeds free of corporate control.
This movement needs to grow bigger and
spread worldwide.
• Vandana Shiva is
an Indian scholar,
environmental activist,
food sovereignty
advocate, and
anti-globalisation
author. She founded
Navdanya (an NGO
working to protect the
diversity and integrity
of living resources)
in 1991 and is one of
the keynote speakers
at the ICA's Global
Conference
OCTOBER 2019 | 41

SDG 10
How are the ICA Asia-Pacific region and its
members working to tackle inequality?
Since 1990, the Asia-Pacific region has lifted 1.1
billion people out of extreme poverty. Still, the
region has 400 million people in extreme poverty,
and is seeing a rapid rise in inequality.
Economic growth alone is not sufficient to reduce
inequality, which results from unequal access to
education, finance, health, and technology; lack of
resilience in the face of environmental hazards and
natural disasters; lack of information to services;
and lack of opportunities.
Co-ops in the Asia-Pacific focus on people being
left behind; they look at the real economy, long-term
job creation and increasing wealth – and combine
these with social inclusion and the environment.
In the region, agriculture is the main source of
work, and co-ops are at the forefront of doubling
farmers’ incomes. Ageing is a growing challenge;
co-ops in Singapore and Japan are working to
meet health needs, and building social networks
to ensure individuals live in their communities and
continue to do things they enjoy.
Co-ops are building resilience in earthquakeaffected
Nepal and cyclone-hit Vanuatu. In China
and Korea, they are investing in tech to connect
rural producers to urban consumers and cutting
out the middle men to save income. The concerns
of youth and the representation of women are
also key.
What are the big obstacles to progress?
The global growth outlook has weakened amid
unresolved trade tensions, elevated international
policy uncertainty and disillusionment with
globalisation. Across developed and developing
countries, growth projections for 2019 have been
downgraded. But the latest UN report on the global
outlook finds that overall economic growth for the
Asia-Pacific region remains strong compared to
other developing regions.
This does not mean we can sit back –
growth is slowing, as is job creation in China
and India, which are economic drivers in
the region; household and corporate debt is
increasing in parts of East Asia; the drop in oil
prices is fuelling concerns in the Middle East
and ongoing conflicts are adding to tensions;
the effects of climate change are seen across
the region.
How can co-ops generate and share
consistent data to support evidence-based
research?
This is a challenge. Examples we have tend to be
mostly through case studies. This is not to say
there is no research being carried out; but this
tends to be sample based and data collected is as
part of the study. What we need, as you have asked
is consistent data which can support research.
Data, where available is very macro. It is not very
disaggregated. What we need is consistent data
which can support research. Apex organisations
need to work with government departments and
statistical agencies to ensure data on co-ops is
systematically collected.
Should co-ops work with other organisations?
Co-operation among co-operatives is one of the
principles which needs strengthening. Credit,
agriculture and consumer co-ops need to work
together to build the co-operative ecosystem.
A good example is the Uralungal Labor Contract
Cooperative Society (ULCCS) in India. When ULCCS
wanted to raise US$31m (£25.11m) as a security
deposit to bid for road reconstruction work in
Kozhikode, it reached out to the primary co-op
banks in the area.
These formed a consortium, whose principles
were to use co-operative funds for co-operative
development; to develop co-op credibility – ULCCS
won the project competing with many multinational
corporations – and the financial participation from
primary co-ops to make this project a collective
co-op venture.
Co-ops have strong supporters in the EU, and in
several UN agencies. We need to leverage on this.
Co-ops are active in the implementation
of the Sustainable Development Goals. The SDGs
are a commitment of the global community and we
need to actively engage with others to ensure the
goals are met.
• Balu Iyer, director
general of ICA
Asia Pacific, who will
sit on a panel at Kigali
to discuss the role of
co-ops in achieving
SDG 10
42 | OCTOBER 2019

SDG 05
Who is involved in the ICA’s Gender Equality
Committee? How do you coordinate with all the
regions within your remit?
The Gender Equality Committee is made up of
the organisations that have asked to be involved.
Participation is optional for members – and those
who wish to be on the committee must submit an
application. The executive committee is elected
every four years and is composed of a president,
two vice presidents and four other members.
What are the most urgent issues that need
to be addressed to empower women in the
co-operative movement?
The members of the ICA’s Gender Equality
Committee have drawn up a plan regarding
these issues:
• Co-operatives must be aware of the importance of
gender equality committees within organisations.
• They must allocate budget to gender equality
committees and support, uphold and integrate
their work into the organisation.
• The international executive committee has also
defined a number of work streams – such as
gender violence (which occurs in every continent)
and issues concerning research and data (which
are needed to develop policies that enable us to
work on gender equality).
• Budget needs to be allocated for a range of
action and activities to enable presence and
representation, such as participating in national
and international events – as well as addressing
other visibility issues when it comes to adopting
gender equality regulations.
To empower women, we need to give them training
that allows them to assume leadership. It is
important that they have economic autonomy,
and that they are recognised as people with
power within the co-operative movement. It’s also
important that they begin to operate in the different
spaces within co-operatives.
What have co-operatives achieved so far in the
fight for gender equality?
We have made significant progress, as more and
more women are not only in membership, but also
in management positions. However, there is still
a long way to go. There are several co-operatives
that have given women irrelevant leadership
positions within their management structures.
The fact that women are visible in organisations
is an enormous step. We now occupy significant
positions as members of the board of directors,
chairs of the board or of control bodies such as
monitoring boards or trustees.
What are the obstacles for co-ops seeking to
achieve progress regarding gender equality?
One of the most difficult obstacles is people not
being aware of what gender equality really means.
Gender equality is not just having lots of women
working in an organisation – it’s ensuring that
women and men have equal opportunities and that
we are qualified in the same way to be able to access
both administrative and managerial positions.
We must achieve equity before we can achieve
equality. Equity must be achieved, not only in
the same access to offers and services, but also
to leadership opportunities and to the possibility
of participating in different areas of a co-operative.
Women’s actions need to be visible. We all know
that we are in the co-operative movement, but
women’s actions are not as visible as they should
be to make them protagonists in co-operative
history. Generating that awareness has been one of
the most difficult things. But once that awareness
has been achieved, it must be institutionalised.
It must form the foundation of co-op life, with
the intention of working towards equality
between men and women – and to govern and
participate in administrative and associative
action on equal terms.
In short, it’s about applying and bringing to life
each of the co-operative principles. That’s how
we can achieve equality, but first of all we need
women’s actions within co-operatives to be made
visible, and for this, men and women have to be
aware of the need to work together.
• María Eugenia Pérez
Zea is president
of the Colombian
Association of
Cooperatives
(ASCOOP) and chair
of the ICA’s Gender
Equality Committee
OCTOBER 2019 | 43

SDG 08
At Kigali, you will take part in a panel on
innovation in entrepreneurship through the
co-op model. What should delegates expect
from this session?
We will explore what co-ops could contribute
to make the future of work more humane. Many
people now are working independently and often
in isolation, with no opportunity to exchange news
with other colleagues. Workers need to form co-ops
that bring them together, not necessarily physically,
but virtually. For example, translators could build a
network just to have a common brand, and use the
co-op to market their services.
At the same time, the traditional employer/
employee relationship being is replaced in many
instances by a subcontracting relationship where
the employee works for a short period of time on a
specific contract, without much bargaining power.
Workers need co-ops to defend their rights and
negotiate collectively.
You were one of the authors of the recent
book on the future of work marking the ILO’s
centenary. Can you tell us more about your
chapter?
The chapter has three parts. The first looks at
global challenges in terms of demographics, such
as a growing and ageing population; technological
trends, such as digitisation and automation;
economic trends, including globalisation and the
emergence of new economic powers in the global
south; and environmental trends, such as climate
change and resource depletion. The second looks
at the impact of these trends on the world of work.
The chapter portrays a changing world of work,
not necessarily in a negative way, but in a way that
suggests people have to be prepared. The third part
examines how co-ops in developed or developing
countries can take advantage of changes in the
world of work, and counter negative effects.
How can co-ops contribute to the SDGs?
Co-ops can play an important role but it would be
counter-productive to claim they are ideally placed
to achieve all of the 17 SDGs and 169 targets. The
point is to identify those SDG targets to which
co-ops can contribute, specifically because they are
co-ops, and because of their specific values. If you
take that approach, the number of targets that are
co-op-specific is much smaller – I identified 15 in a
paper I worked on two years ago. By concentrating
your effort on fewer targets, you become more
visible. This is just a view.
Are co-ops ambitious enough with the SDGs?
They could take more initiative. When you go to
co-op meetings, often we are speaking to ourselves
and saying co-ops are the best form of enterprise.
What we need to do is to critically analyse our
movement and grow out of the comfort zone.
It is not enough to say that 300 million people are
working in co-ops because outside the co-op world
most people don’t know about it.
How can co-ops bring in like-minded
organisations?
The global co-op movement needs to be more
open and look at other organisations with whom
it can build alliances. Many co-op promoters are
sceptical about the social and solidarity economy;
I am of a different view. They have similar values
and principles as co-ops. They might not be
structured as co-ops but there is nothing wrong
with that. There are common interests and goals.
Right now, I am working on a paper on the
informal economy in Africa; this is abound with
associations, self-help groups, rotating savings and
credit associations and other forms of collective
action. Many of them operate on co-op principles
without calling themselves “co-operative”… The
formal, traditional co-op movement should be more
open to bringing such associations on board and
forming partnerships; much as trade unions are
opening their doors to informal economy workers.
The co-operative movement should also
explore avenues to reinvigorate its partnership
with trade unions, both at global and national
level. And why not also enter into a partnership
with the employers’ organisations? After all,
co-ops are also employers, and they are part of the
private sector.
• Jürgen Schwettman
is an independent
consultant based in
Germany specialised
in co-operative
development. He has
spent 28 years at the
International Labour
Organization, holding
different positions,
including six years as
chief of the co-op unit
44 | OCTOBER 2019

SDG 12
What are the key priorities on inclusive ethical
value chains – and how do co-ops fit in?
If you take almost all the recent trends in society
and the economy you will see that co-ops have been
forerunners. The co-op movement should make a
big scan of its workings and see if the core standards
of the International Labour Organization (ILO) and
the human rights principles are respected.
Co-ops want to correct what is going wrong, and
they want to detect alternatives. This is exactly
what is needed when we see a global market,
production and consumption that is shamelessly
affected by indecent situations like child labour,
exploitation of workers and farmers, hazardous
working conditions and human rights abuses.
How can retailers help ensure inclusive
value chains?
Co-op retailers should not underestimate the
influence of the ethical buying movement.
Consumer power is real power. And we are not only
talking about individual consumers but also about
not-for-profit organisations and governments as big
consumers. But, of course, retailers also buy and
thus also have power; they can impose conditions
on suppliers.
Some retailers are developing their own
accreditation for suppliers. What impact
could this have?
There is indeed a proliferation of social audit
and certification systems, and the fragmentation
and duplication becomes a nuisance. One buyer
of garments in Bangladesh might require the
lamps to be at 80cm distance from the workers;
another might impose a 1m distance. That is why
we need coordinated initiatives like the Better
Work Programme of the ILO. This is developing
global tools for the garment industry. Factories
have steadily improved compliance covering
compensation, contracts, occupational safety and
health and working time. This has significantly
improved working conditions productivity and
profitability. Several thousands of apparel factories
are involved and millions of workers benefit.
What are the big obstacles in terms of
ensuring the globalisation of inclusive ethical
value chains?
We need a consensus on criteria; the core ILO
conventions are a good starting point. I believe
there is a universal acceptance that we should not
consume items produced by forced labour, that
child labour should be excluded and that men
and women should be paid equally. But many
audit and certification systems overlook two more
fundamental conventions – freedom of association
and the right to be involved in social dialogue. They
water these down by vaguely paying attention to
so-called systems of stakeholder participation.
Also, many social audits still interview workers in
the factories. It is not rocket science to say that the
information gathered in this way will not be very
reliable or valid. We should move towards systems
of due diligence, starting from a risk analysis,
screening the whole chain, develop action plans
with concrete measures and be fully transparent.
What has been achieved so far?
I think the ground and conditions are created for
further progress towards more inclusive ethical
value chains. Civil society has played a major
role in this, together with the non-governmental
organisations and the co-operative movement.
Look at Fairtrade – largely organised as a
co-operative movement – or the Clean Clothes
Campaign that raised awareness about abuses
in the garment industry. A growing number of
countries are developing national action plans for
human rights due diligence as a way for enterprises
to manage adverse human rights impact.
What is your message to the
co-operative movement?
Take this development seriously. To be co-operative
or not will depend on our adherence to human rights
principles. To be co-operative or not will depend on
our vanguard role in this global movement because
of our DNA. To be co-operative or not will depend
on our creative ability to correct what is going
wrong and to detect what can be done.
• Patrick Develtere
is a principal advisor
of the European
Political Strategy
Centre (EPSC), the inhouse
thinktank of the
European Commission.
He will be a keynote
speaker at Kigali
OCTOBER 2019 | 45

TECH
&
THE SDGs
The UN Sustainable Development Agenda has
positioned science, technology and innovation
(STI) as key means of implementation of the SDGs.
Goal 9 – Industry, innovation and infrastructure
– specifically refers to the role of technology
in achieving the United Nation's sustainable
development agenda.
Targets include supporting domestic technology
development, research and innovation in
developing countries; increasing access to
information and communications technology; and
striving to provide universal and affordable access
to the internet in least developed countries by 2020.
Tech can enhance productivity, accelerate
economic growth, enable knowledge and
information sharing and increase access to
basic services. But digital divides can also
further inequality. “We need to harness the
benefits of advanced technologies for all,” said
UN Secretary-General, Antonio Guterres, at the
closing of the 2018 High-level Political Forum on
Sustainable Development.
The 2019 SDG Report reveals that the share of
medium-high- and high-tech industries in total
manufacturing value added increased from 40.5%
in 2000 to 44.7% in 2016. Yet not all regions
across the world benefited. The shares in Oceania
(excluding Australia and New Zealand) and
sub-Saharan Africa were only 1.9% and 14.9%,
respectively.
Similarly, in 2018, 96% of the world’s
population lived within reach of a mobile-cellular
signal, and 90% of people could access the
internet through a third generation (3G) or higherquality
network. But while most live within range
of these signals, not all are able to take advantage
of them. Half of the world’s population is currently
using the Internet, with rates much lower in least
developed countries.
Disparities also exist in terms of research
and development. In Europe and Northern
America, 2.21% of GDP was spent on research
and development in 2016, compared to 0.42% and
0.83%, respectively, in sub-Saharan Africa and
Western Asia.
Can co-operation help to drive the agenda?
The Age of Digital Interdependence, a 2018
report of the UN secretary-general’s High-level
Panel on Digital Cooperation, says increasing
digital interdependence means that more digital
co-operation is required. The panel works to
explore ways for various stakeholders to come
together to address the social, ethical, legal and
economic impact of digital technologies in order to
maximise their benefits and minimise their harm.
The report suggests creating digital co-operation
networks. These networks would be issue specific
horizontal collaboration groups, involving
stakeholders from relevant vertical sectors
and institutions.
In the UK, co-ops in the tech sector are already
working together under CoTech’s umbrella. CoTech
is a network of ethical co-operatives and freelancers
providing technology, digital and creative services.
The network’s members collaborate and share
resources and skills to make access to technological
know-how fairer and more efficient.
Other co-ops are using the Coopsfor2030
platform to pledge their commitment to the SDGs.
More than 300 co-ops do so – including the
US-based CoLab Cooperative. In its pledge, the
co-op commits to building websites and tools
based on partnership and people-focused solutions
that support achievement of the SDGs. As part
of this, CoLab says it is focusing on starting new
partnerships to support the achievement of the
• Environmentally
friendly clothing
shop Just Hazel uses
Partago to reflect its
sustainability values
(Photo: Partago)
46 | OCTOBER 2019

sustainable development goals in all countries, in
particular developing countries.
The co-op builds platforms for a number of
organisations, including Green Worker Cooperative
and Up and Go. The former helps immigrants
and communities of colour to set up and develop
worker-owned green businesses. Similarly, Up
and Go, a platform co-op, connects domestic
workers with those looking for cleaning services.
The cleaners own the co-op and earn a living wage
while investing in growing Up and Go locally. In
addition to running the company, the cleaners
earn more. For every dollar paid for their services,
95 cents goes to the cleaners themselves with five
cents going towards maintaining the app. Other
agencies or apps distribute between 20 and 50 cents
to owners and outside investors, which means that
less of the dollar goes to the workers.
In Barcelona, delivery workers are also
developing their own app. The project started
after delivery drivers employed by the largest
delivery apps unionised under RidersXDerechos
(Riders4Rights). They went on strike and
demonstrated against their self-employed status,
which they believed to be inaccurate. They were
soon dismissed and decided to set up the Mensaka
co-op, launching their own delivery platform.
“We thought it would be interesting to not only
attack the platform economy bun also demonstrate
that an alternative was possible,” says 24-year-old
member Núria Soto.
Mensaka plans to launch its app by the end of
the year. Until then, they have started working
using an open software app provided by Coopcycle,
the European Federation of bike delivery co-ops.
To bring their project to life, they launched a
crowdfunding campaign though which they raised
€18,838 (£17,155).
“We chose the co-operative model because we
thought it was the most opposed to the current big
platforms. It was also an enterprise model that fit
in with our philosophy, putting workers and people
before capital,” added Ms Soto.
Car-sharing platforms are another trend – and in
Belgium a co-op is enabling people to share electric
cars, in line with SDG 7: affordable and clean
energy; 11: sustainable cities and communities;
and 12: responsible consumption and production.
Lucie Evers, co-founder of Partago, says the
project started in 2015 when a few people in the
local community in Gent. Members can use the app
to reserve an electric car.
Partago started working with SomMobilidad,
a Spanish tech co-op which wrote the code and
developed the app. SomMobilidad forms part of
SomEnergia, a renewable energy co-operative.
The two co-ops met through ResCoop EU, the
European federation of renewable energy co-ops,
of which they are members. Together they founded
the Mobility Factory, a European co-operative
enterprise which set up an e-car sharing platform
for its members. Each co-op member of the Mobility
Factory SCE is co-owner of the IT platform. So far,
they have eight co-operative members from four
European countries – and they hope the model will
be picked up by other citizens across the continent.
As digital connectivity continues to drive the
Fourth Industrial Revolution, more disruption
is to be expected. In a recent report, the United
Nations Economic and Social Commission for
Asia and Pacific explores the relationship between
technology and inequalities. The research points
out that a number of low-income countries lagged
behind and did not benefit equally from the
digital revolution. UNESCA expects the digital
divide to amplify the technology divide and widen
inequalities between subregions, countries and
people. It adds that the potential of technologies
to reduce inequality depends on the capabilities
of the poor to access and use technologies and
solutions that respond to their needs. Tech co-ops
could make a difference by working together as
well as providing the technology those affected
need to be empowered.
• Mensaka co-op
is launching its own
delivery platform app
(Photo: Pixtin.es)
OCTOBER 2019 | 47

REVIEWS
What does the future hold for co-ops and the world of work?
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and the World
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TABLE OF CONTENTS:
of Work
Introduction
Bruno Roelants and Hyungsik Eum
1. Work and cooperatives: A century of ILO interaction with the
cooperative movement
Claudia Sanchez Bajo
2. Cooperatives and the future of work
Jürgen Schwettmann
3. Cooperatives and fundamental principles and rights at work: Natural
disposition or commitment to action?
Simel Eşim, Waltteri Katajamäki and Guy Tchami
4. The autonomy or heteronomy of cooperative worker ownership
Manuel Garcia Jiménez
5. Work and employment in the informal economy and new forms of
work: How can the cooperative model be an answer
Hyungsik Eum
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Gisaro M. Ya-Bititi, Philippe Lebailly, Deogratias Sebahire Mbonyinkebe and
Philippe Burny
7. The changing cooperative landscape in the world of work: A study of
women empowerment through participatory strategies in India
Sudha Kornginnaya
8. Waste cooperatives in Brazil: Exploring links between cooperative
ideals and raising gender awareness
Sonia Maria Dias and Ana Carolina Ogando
9. Cooperatives and trade unions: From occasional partners to builders of
a solidarity-based society
Akira Kurimoto
10. Saving jobs and businesses in times of crisis: The Italian road to
creating worker cooperatives from worker buyouts
Marcelo Vieta
11. Cooperatives of independent workers in Finland: A unique forum for
self-employment
Anu Puusa and Kirsi Hokkila
12. Labour transformation and institutional re-arrangement in France: A
preliminary study of a business and employment cooperative
Mélissa Boudes
13. Multi-stakeholder cooperatives as a means for jobs creation and
social transformation
Sonja Novkovic
14. An internet of ownership: Democratic design for the online economy
Nathan Scheider
Edited by Bruno
Roelants, Hyungsik
Eum, Simel Esim,
Sonja Novkovic,
Waltteri Katajamäki
(Routledge, £29.99)
The world of work is facing the biggest
transformations since the Industrial Revolution –
and workers are being forced to adapt at fast pace. A
new book marking the ILO’s centenary argues co-ops
can play a key role in providing the solutions they
need to cope with recent shifts and restructuring.
Book coverCo-operatives and the World of
Work explores past and present day challenges,
from the days of the Rochdale Pioneers to the
present experiments around the co-operative
Cooperatives and the
World of Work
Edited by Bruno Roelants, International Co-operative
Alliance, Hyungsik Eum, CICOPA (International
Organisation of Industrial and Service Cooperatives),
Simel Esim, International Labour Office,
Sonja Novkovic, International Co-operative Alliance
Research Committee and Waltteri Katajamäki,
International Labour Office.
As the world of work and jobs is more uncertain than
ever platform through economy.
the rise of robotics and the gig economy,
Co-operatives It travels and back the World in time of Work to furthers ILO’s the early days in
debate on the future of work, sustainable
development, a war-torn and world the social in 1919. and solidarity Under economy the leadership of of
which Albert cooperatives Thomas, are the a fundamental ILO’s first component. director who had been
Throughout
previously
the
linked
book, the
to
authors,
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who
co-operative
are experts in
movement,
their respective fields, do not limit themselves to
praising the organisation the advantages of set the cooperative up its model. Co-operatives Unit
Rather, in 1920. they challenge the narrow understanding of
cooperatives as a mere business model and raise
The book looks at the historical changes of the
debate on the more fundamental role that
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Co-operatives, argue the authors, have the ability
to respond to these social changes and generate
innovative solutions. They also note that co-ops
have designed and experimented organisational
innovation, responding to members’ needs but also
their aspirations.
Co-ops are portrayed as alternative models to
the mainstream economic system. In his chapter
ILO expert Jürgen Schwettmann proposes
developing a pragmatic strategy of co-operative
development in the context of the future of work.
He argues there is a need for co-operation beyond
co-operatives, building alliances with likeminded
movements, organising co-operation along
global supply chains and co-operatives formed in
response to emerging trends.
The book is also a call for action, proposing
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to envision a future with more sustainable,
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co-operative model.
u Interview with Jürgen Schwettmann, p44
For more information visit:
www.routledge.com/9780367250850
48 | OCTOBER 2019

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DIARY
CLOCKWISE FROM FAR LEFT:
Rochdale Town Hall hosts the CCIN
annual conference (2 Oct); as well as
the Co-operative College’s centenary
conference where Esther N. Gicheru,
of the Co-operative University College
of Kenya will be speaking (26-28 Nov);
the ICA’s Global Conference is at the
Kigali Convention Centre in Rwanda (14-17
Oct); and the NCBA-CLUSA Co-op Impact
Conference is in Arlington (2-4 Oct)
2 Oct: 2019 CCIN Annual Conference
and Co-operative Showcase
Hosted by the Co-operative Councils
Innovation Network, this year’s theme
is Developing Co-operative Councils,
Building Co-operative Places, and is a
chance to meet other co-operators from
around the UK, share ideas and network.
WHERE: Rochdale Town Hall, UK
INFO: s.coop/23rdg
2-4 Oct: Power in Purpose: Building the
Next Economy
NCBA CLUSA’s 2019 IMPACT Conference
is an opportunity for all co-operatives
to discuss innovations and share best
practices in governance, communications,
community involvement, education and
co-operation among co-operatives.
WHERE: Sheraton Pentagon
City Hotel, Arlington, VA
INFO: s.coop/23rdi
11-13 Oct: The Co-operative
Party Conference
The annual event will include
debates on policy; Q&As with
elected representatives from the UK,
Scottish and Wales parliaments and
councils across the UK; a series of
informative and constructive workshops
and examples of best practice from
local co-ops. There are networking
opportunities, and members can
take part in the Party’s diversity
networks (including BAME, disability,
LGBT+, women and youth).
WHERE: Doubletree, Glasgow
INFO: s.coop/22h9f
14-17 Oct: ICA Co-operatives for
Development Global Conference
The conference will be structured
around plenary sessions, sectoral
and thematic seminars and discussion
panels. It is open to co-operators
worldwide and also to other civil
society actors, development agencies,
policy makers, institutional partners,
government representatives,
researchers, and all those who
are concerned about development.
WHERE: Kigali, Rwanda
INFO: kigali2019.coop
18 Oct: Community Energy Awards 2019
Community Energy England & Community
Energy Wales have teamed up to deliver
the 2019 Community Energy Awards,
celebrating the individuals (many of
whom are volunteers) making a difference
in their communities, and the projects
and partners who have helped develop
innovative energy schemes.
WHERE: City Hall, London
INFO: communityenergyengland.org
7 Nov: Practitioners’ Forum
Professional training event organised by
Co-operatives UK for people operating in
key roles in co-operative businesses both
large and small. Featuring a series of
specialist forums: communications;
finance; governance; HR; and membership,
with delegates able to mix and match
across forums.
WHERE: The Studio, Manchester
INFO: s.coop/23jas
26-28 Nov: Co-operative College
100 years: And now the future
Rochdale and its town hall will be
the venue for a highlight of the
College’s centenary year. Speakers
include Prof Esther N. Gicheru
(principal, the Co-operative University
College of Kenya), Andy Burnham (mayor
of Greater Manchester) and Angela
Rayner (Labour MP for Ashton-under-
Lyne, Droylsden and Failsworth). The
conference will include a gala dinner in
the Grand Hall.
WHERE: Rochdale Town Hall
INFO: s.coop/22h9h
7–9 Nov: Who Owns the World?
The State of Platform Co-operativism
Who Owns the World? is about building
connections between communities,
established co-ops, incubators, co-op
banks, unions, foundations, researchers,
so they can find much-needed support,
and learn from each other.
WHERE: The New School, New York
INFO: s.coop/23rdh
50 | OCTOBER 2019

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