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| Co-op Group members revolt over boardroom elections | Co-op Group members revolt over boardroom elections |
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| Tension between the Co-operative Group’s new management and its grassroots membership reignited at the weekend when members demanded the reinstatement of three candidates rejected by the group for election to the board. | Tension between the Co-operative Group’s new management and its grassroots membership reignited at the weekend when members demanded the reinstatement of three candidates rejected by the group for election to the board. |
| The 100-strong national members’ council met on Friday and Saturday to discuss the board election and other matters before the Co-op’s annual meeting next month. | The 100-strong national members’ council met on Friday and Saturday to discuss the board election and other matters before the Co-op’s annual meeting next month. |
| Allan Leighton, the Co-op’s chairman, and his chief executive, Richard Pennycook, attended. The meeting was said to be professionally conducted but with feelings running high at times as members argued that the mutual group’s democratic principles were at risk. | Allan Leighton, the Co-op’s chairman, and his chief executive, Richard Pennycook, attended. The meeting was said to be professionally conducted but with feelings running high at times as members argued that the mutual group’s democratic principles were at risk. |
| The members’ main complaint was about the selection of candidates for election to the board. On Thursday, Co-op management announced three candidates for the three director posts: former Labour cabinet minister Hazel Blears; Ruth Spellman, chief executive of the Workers’ Educational Association; and Paul Chandler, former CEO of the fair trade group Traidcraft. | |
| The group and its recruitment firm rejected three other candidates from a shortlist of six, including Dame Pauline Green, the president of the International Co-operative Alliance, and Nick Eyre, the Co-op’s former group secretary. | The group and its recruitment firm rejected three other candidates from a shortlist of six, including Dame Pauline Green, the president of the International Co-operative Alliance, and Nick Eyre, the Co-op’s former group secretary. |
| On Saturday, the council told the group to reinstate the three candidates and called for a fourth member-elected board director to ensure greater representation of members. | On Saturday, the council told the group to reinstate the three candidates and called for a fourth member-elected board director to ensure greater representation of members. |
| A member of the council said: “Members have asked the board to go back to that decision to reinstate all six people on to the ballot paper to make sure members have the say they were meant to have,” said a member who attended the meeting. | |
| The decision to present members with just three candidates for three positions was criticised last week by Sir Graham Melmot, the respected former Co-op boss. Melmot pointed out that vetoing Green and Eyre meant the board election would not be contested and claimed the three candidates selected had tenuous links to the Co-op. Each candidate needs a majority of votes to be elected. | |
| Members also resisted an attempt by the Co-op Group to take a historic step back from direct involvement in politics, by calling on management to withdraw a motion concerning contributions to political parties. | Members also resisted an attempt by the Co-op Group to take a historic step back from direct involvement in politics, by calling on management to withdraw a motion concerning contributions to political parties. |
| That motion asks whether the Co-op should donate to parties, whether it should fund the Co-operative party and whether it should donate to various parties. | |
| For the first time in almost a century, the board failed to back a members’ motion endorsing up to £1m of funding for the Co-operative party. | |
| The members’ council argued that the board’s three questions were incoherent and unhelpful. They had previously called for continued funding to the Co-operative party – which is allied with Labour and had 30 MPs in the last parliament. | The members’ council argued that the board’s three questions were incoherent and unhelpful. They had previously called for continued funding to the Co-operative party – which is allied with Labour and had 30 MPs in the last parliament. |
| The council also asked the group to withdraw its revised description of the Co-op’s purpose in society: “Championing a better way of doing business, for you and your communities.” The council’s requests are not binding but the board has an obligation to try to reach agreement. | The council also asked the group to withdraw its revised description of the Co-op’s purpose in society: “Championing a better way of doing business, for you and your communities.” The council’s requests are not binding but the board has an obligation to try to reach agreement. |
| Leighton, the former Royal Mail chairman who joined the Co-op in February, attended the meeting on Friday but was not there when the council made its demands. Pennycook and other officials were asked to leave the room while the council decided on its requests on Saturday. | Leighton, the former Royal Mail chairman who joined the Co-op in February, attended the meeting on Friday but was not there when the council made its demands. Pennycook and other officials were asked to leave the room while the council decided on its requests on Saturday. |
| The membership council will be revamped after the AGM. A transitional council was put in place to oversee governance changes recommended by Lord Myners, the former City minister, last year. | |
| Veteran Co-op members were unhappy about Myners’ changes but accepted most of them as a way to draw a line under the turmoil created by the near-implosion of the Co-op Bank in 2013. | Veteran Co-op members were unhappy about Myners’ changes but accepted most of them as a way to draw a line under the turmoil created by the near-implosion of the Co-op Bank in 2013. |
| In a statement, Leighton said: “The Co-operative Group operates under a unique governance model which ensures members have a direct say in the group’s future. After the reforms of last year, this remains a fledgling democracy and we are working to ensure it becomes firmly established so it can operate in the interests of all our members, colleagues and customers whilst avoiding the catastrophic events of our recent past.” | In a statement, Leighton said: “The Co-operative Group operates under a unique governance model which ensures members have a direct say in the group’s future. After the reforms of last year, this remains a fledgling democracy and we are working to ensure it becomes firmly established so it can operate in the interests of all our members, colleagues and customers whilst avoiding the catastrophic events of our recent past.” |