August 2017

AUGUST 2017
news
YOUTH
Co-operative
thinking from
an early age
Plus ... Is Fairtrade in
trouble? ... Communitybased
Member Pioneers
... International credit
union updates ...
ISSN 0009-9821
9 770009 982010
01
£4.20
www.thenews.coop

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CONNECTING, CHAMPIONING AND
CHALLENGING THE GLOBAL CO-OP
MOVEMENT SINCE 1871
Holyoake House, Hanover Street,
Manchester M60 0AS
(00) 44 161 214 0870
www.thenews.coop
editorial@thenews.coop
EXECUTIVE EDITOR
Anthony Murray
anthony@thenews.coop
DEPUTY EDITOR
Rebecca Harvey
rebecca@thenews.coop
EDITORIAL
Anca Voinea | anca@thenews.coop
Miles Hadfield | miles@thenews.coop
DIRECTORS
Elaine Dean (chair), David Paterson
(vice-chair), Richard Bickle, Sofygil
Crew, Gavin Ewing, Tim Hartley,
Erskine Holmes, Beverley Perkins and
Barbara Rainford.
Secretary: Ray Henderson
Established in 1871, Co-operative News
is published by Co-operative Press Ltd,
a registered society under the Cooperative
and Community Benefit Society
Act 2014. It is printed every month by
Buxton Press, Palace Road, Buxton,
Derbyshire SK17 6AE. Membership of
Co-operative Press is open to individual
readers as well as to other co-operatives,
corporate bodies and unincorporated
organisations.
The Co-operative News mission statement
is to connect, champion and challenge
the global co-operative movement,
through fair and objective journalism and
open and honest comment and debate.
Co-op News is, on occasion, supported by
co-operatives, but final editorial control
remains with Co-operative News unless
specifically labelled ‘advertorial’. The
information and views set out in opinion
articles and letters do not necessarily
reflect the opinion of Co-operative News.
@coopnews
cooperativenews
The 2017 youth special
There are a number of ways co-ops can – and do – engage youth. And
this edition is looking at how this is happening.
The first way is to ensure young people are involved in the society. The
minimum age for those able to join co-ops as a member was reduced to
age 16 (from 18) five years ago.
Some co-ops have been taking this further. For example, the Co-op
Group and Lincolnshire Co-op have set up junior member schemes,
where they can collect rewards, such as the dividend, and take part in
other youth-oriented activities. They are not fully fledged members, and
cannot stand for a committee/board position until they are 18.
In attracting younger members, the shining beacons across the coop
spectrum are credit unions. The latest figures published by the
Prudential Regulation Authority show there are over 230,000 youth
members in the UK.
In England, Scotland and Wales this has doubled to 130,000 since
records began in 2004. In Northern Ireland, which has only been a part
of UK-wide statistics since 2012, there are 100,000 junior members.
Another way to engage youth is to attract and retain a dedicated
workforce that wants to work for an ethical organisation. In an annual
survey from Deloitte, almost 90% of millennials (those born after 1982)
believe a business should be measured in terms of more than just
financial performance.
Employee loyalty is also increased for those who feel like they are
influencing social issues through their organisation.
The evidence is strong that youth are looking for solutions to solve
social issues. Through co-operation this can happen as a member
(by spending and making decisions) and by being employed by a coop
to push through change. We just need to ensure our difference is
communicated effectively.
ANTHONY MURRAY - 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.
AUGUST 2017 | 3

trouble? ... Communitybased
Member Pioneers
... International credit
union updates ...
ISSN 0009-9821
01
9 770009 982010
THIS ISSUE
CLOCKWISE FROM FAR LEFT
Our youth special includes a look at
the Woodcraft Folk and its influence on
members’ lives (p38-39); is Fairtrade in
trouble? (p33-35); Michael Sheen attends
Congress 2017 (p24-27); and Rebecca
Birkbeck is leading the Co-op Group’s
Member Pioneers scheme (p48-49)
news Issue #7286 AUGUST 2017
Connecting, championing, challenging
news
AUGUST 2017
YOUTH
Co-operative
thinking from
an early age
Plus ... Is Fairtrade in
£4.20
www.thenews.coop
COVER: As part of International
Youth Day, we look at how retail
societies and credit unions are
engaging with junior members.
When Lincolnshire co-op launched
its Junior Members scheme, the
membership team organised
event days throughout the
summer – including a day at High
Ropes Adventure in Market Rasen
Read more: p36-37
22-23 MEET... NATHAN BOWER-BIR
Edinburgh-based student, researcher and
housing co-op co-founder
24-27 CONGRESS
Updates from the 2017 Co-operative
Congress in Wakefield, including the
launch of the International Co-operative
Development Strategy
28-29 COMMUNITY ENERGY
CONFERENCE
Why has community energy growth
slowed down? Plus we speak with new
Co-operative Energy CEO, David Bird
30-32 WOCCU CONFERENCE
The World Credit Union Conference in
Vienna explored millennials, big data,
branding and technology
33-35 FAIRTRADE
With Sainsbury’s abandoning Fairtrade
status for its own-label tea, the danger
is that others will follow. Is Fairtrade
in trouble?
36-45 YOUTH SPECIAL: INTERNATIONAL
YOUTH DAY (12 AUGUST 2017)
36-37 How are co-op retail societies
and credit unions engaging with junior
members?
38-39 Ethical work spaces: new report
from Deloitte says millennials expect
more from the workplace
40-41 Woodcraft Folk’s Jon Nott on the
importance of co-op thinking from an
early age, while former Woodies Lloyd
Russell-Moyle MP and IFM-SEI’s Carly
Walker-Dawson talk about the group’s
impact on their lives
42-44 Putting youth at the centre of
co-operative development
45 Updates from Students for
Co-operation and the Group’s Young
Members Board
46-47 THE CO-OP BANK
Paul Gosling and Ian Snaith on the
financial and ethical implications of the
changes at the bank
48-49 MEMBER PIONEERS
The Group’s new scheme to connect
communities
REGULARS
6-13: UK updates
14-19: Global updates
20: Letters
50: Diary
4 | AUGUST 2017

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NEWS
RETAIL
Regional closures and
potential job losses as
independents commit
to Group’s supply chain
Two independent retail societies have
announced they intend to fully join
the National Integrated Supply Chain
operated by the Co-op Group, which
would supply their stores with all fresh,
frozen and ambient products.
Under a historical agreement, the Group
supplies East of England and Lincolnshire
co-operatives with fresh and frozen
products, but until now the societies
have maintained their own independent
distribution of ambient goods (food that
can be safely stored at room temperature
in a sealed container). This move, which
would see the Group distributing ambient
goods to them too, could result in the
combined closure of three distribution
centres and over 280 job losses.
EAST OF ENGLAND
The East of England Co-op has 125 food
stores across Norfolk, Suffolk and Essex.
Ambient goods, which account for almost
half of all products sold by the retailer, are
currently delivered from its distribution
centre on Boss Hall Business Park in
Ipswich, which employs 174 people.
“Fully integrating our business into
the [Group’s] National Integrated Supply
Chain means our customers and members
can benefit from greater economies of
scale,” said Roger Grosvenor, joint chief
executive at East of England.
“Part of this agreement involves
a decision in principle to close our
distribution centre at Boss Hall Business
Park in early 2020. This is subject to
consultation with colleagues and the
USDAW trade union.”
Consultation began with East of
England colleagues on Monday 10 July.
If the decision to close is confirmed,
colleagues would then have the option to
redeploy within the organisation, transfer
to the Co-op Group or take redundancy.
“The Co-op Group is investing heavily
in its own supply chain,” said an East of
p Lincolnshire Co-operative’s distribution on Pioneer Way, one of two the society will be closing
England spokeswoman. “This includes
building a new distribution centre close
to our trading area, which can handle the
requirements of our branches at the level
of service we expect. We believe we have a
one-off opportunity to make the decision
to be part of the network while Group are
planning their new capacity.”
The move would also affect Chelmsford
Star, which is supplied with ambient
products from the East of England
distribution centre.
“We cannot make any concrete decisions
while this plan is still in the consultation
phase, but it would seem appropriate to
fully integrate into the Group’s network
at the same time as East of England – if
that is the outcome of the consultation –
should that be deemed to be in the best
interest of our own members,” said a
Chelmsford Star spokesman.
“We have an extremely good
relationship with our neighbours at
the East of England Co-op, and we will
continue to work with them to further the
cause of co-operation wherever we can.”
LINCOLNSHIRE
Meanwhile, Lincolnshire Co-op has
announced plans to close its two food
distribution centre sites in the south of
Lincoln, which currently relay ambient
goods to the society’s 83 food stores.
As with East of England, the Group
already supplies Lincolnshire with fresh
and frozen products. The Group’s network
will take over the distribution of ambient
goods to Lincolnshire Co-op food stores
from Monday 11 September 2017.
“The difficult decision to close our food
distribution centres is not one we have
embarked on lightly,” said Lincolnshire’s
chief retail officer, Mark Finn. “However,
we’re confident that this is the right
decision for the society because it will
lead to significant savings.
“It does not in any way reflect on our
hard-working colleagues, who we thank
for their efforts over the years.”
A total of 111 distribution and office
staff are at risk of redundancy, although
Mr Finn stressed that the society aims to
“redeploy as many of the staff as we are
able to”. A support centre has been set
up on site to run sessions from JobCentre
Plus and the National Careers Services,
host presentations from other employers
in the area and offer free training sessions
and CV writing workshops. Local job
vacancies will also be circulated weekly.
The Co-op Group operates the National
Integrated Supply Chain on behalf of a
number of independent retail co-ops.
A spokesman for the Group said:
“We are exploring plans for a new
distribution centre in the South East,
and we will work closely with colleagues
and the unions over the next two years
to ensure continuity of roles at the new
site wherever possible.” The Group also
confirmed it does not intend to renew the
lease at its Cardinal Distribution Centre
when it expires in August 2019.
6 | AUGUST 2017

UNIONS
Co-operative trade
union starts talks to
merge with retail union
The co-operative trade union NACO is
in discussions to transfer engagements
to the management arm of retail union
USDAW. The move comes after a motion
was passed at NACO’s annual meeting in
June which asked members to allow talks
to begin.
Discussions will now commence with
SATA (Supervisory, Administrative and
Technical Association), the management
section within the Union of Shop,
Distributive & Allied Workers (USDAW).
NACO, which celebrates its 100th
anniversary this year, mostly represents
managers at consumer co-operatives.
It was established as the National
Association of Co-operative Officials in
1917, and today operates as a trade union
and an affiliate of the TUC. However
a period of uncertainty has seen a
membership decline over several years,
bringing with it significant concerns.
“While this is a very sad day for the
union, it is a necessary step forward to
look at a potential transfer into SATA,
as the alternative could have seen the
complete collapse of NACO due to the falls
in membership we’ve witnessed over the
past few years,” said Bob Lister, interim
general secretary.
“The union is exceptionally mindful
that all members are fully considered
in the talks that will start shortly, and at
some stage could be asked to vote on the
proposals, should the discussions move to
that position.”
Mr Lister said it was too early to give
any specific details, but added that “NACO
will be seeking the best possible outcomes
for all members during any relevant
discussions, and nothing will change in
the immediate future.”
CO-OPERATIVE BANK
Sector body confirms
Co-operative Bank can
keep its co-op name
The Co-operative Bank can continue
operating under its existing name,
according to Co-operatives UK.
On 28 July the bank announced a £700m
debt-for-equity rescue deal that will see
investors swap their debt for a stake in
the Bank. It confirmed that its name,
brand and commitment to co-operative
values (set out in its Ethical Policy) would
continue unaffected, despite the fact the
Co-op Group’s stake in the organisation
would be cut from 20% to around 1%.
This statement has now been backed by
Co-operatives UK, the sector body which
acts as guardian of co-operative values
and identity in line with international
principles.
“We welcome the new capital agreement
for the Co-operative Bank and can confirm
that the Bank continues to operate under
its existing name, with a commitment to
co-operative values, with our assent,”
said Co-operatives UK secretary general,
Ed Mayo.
“The use of the term co-operative where
the business is not member-owned is
governed by formal criteria set in 2015,
after consultation, and is subject to a
compliance agreement which we monitor
on a periodic basis.”
Mr Mayo added that Co-operatives UK
would “continue to monitor and review
our approval for the use of the name” as
the new ownership and capital structure
for the bank takes shape in practice.
u Read more: Paul Gosling and Ian Snaith
on the financial and ethical implications
of the changes at the Bank (p46-47)
APPOINTMENTS
Changes at the top
MIDCOUNTIES:
u The Midcounties Co-operative is
confirming its commitment to the online
experience it offers customers with the
appointment of Sukie Rapal as head
of digital. Ms Rapal has joined the
organisation from cruise.co.uk.
SUPPORTERS DIRECT:
u Former Labour/Co-op MP and shadow
minister Tom Greatrex is the new chair
of Supporters Direct. Mr Greatrex was
elected at the organisation’s annual
general meeting in July, replacing Brian
Burgess, who stood down at the end of his
term of office.
CO-OP GROUP
At the Group, the executive team has been
shuffled as chief executive Steve Murrells
looks to create “a smaller exec team with
wider accountability, which will help us
to make decisions more quickly and make
things simpler”.
u Mike Bracken, chief digital officer at
the Co-op Group, has announced he is
leaving the organisation later this year. He
joined the Group in 2015 from Government
Digital Services.
u Jo Whitfield (below) has been
appointed CEO of Co-op Food. She joined
in 2016 as food finance director, and
became interim CEO for Food in February.
u Helen Grantham is joining the
organisation permanently in the newly
combined role of group general counsel
and group secretary after an interim
appointment as group secretary.
AUGUST 2017 | 7

p Cleveland, Ohio, has supplied a new co-op model for communities
POLITICS
Co-op model as a vehicle of transformation in local government
Co-ops can be at the forefront of a local
government revolution, say researchers.
This summer the Co-operative Party
launched a pamphlet on Community
Wealth Building, which sets out six steps
to building community wealth.
Featuring examples from cities like
Preston and Manchester, it highlights how
councils can pioneer a new approach to
economic regeneration by changing their
procurement policies.
THE CLEVELAND MODEL IN PRESTON
Preston’s community wealth building
model has its roots in the Cleveland Model
promoted by the Democracy Collaborative
in the USA. The approach is focused
on getting anchor institutions such as
universities, councils or hospitals to
support local businesses, including coops,
through procurement. Where gaps
are identified the councils can support
communities to set up new worker-owned
co-operatives to provide the services
needed.
Preston City Council started adopting
this method in 2013 as a response to
cuts affecting its budget. The council
has worked with the Centre for Local
Economic Strategies, identifying 12 local
institutions, such as the councils, the
hospital, the university and the police.
Together they revised their procurement
strategies and so far £10m of public
contracts have been awarded in Preston
and the surrounding areas.
In addition, the council is working
in partnership with the University of
Central Lancashire to expand the local co-
operative economy through Preston’s Cooperative
Network, aimed at supporting
new and existing co-operatives to grow
and bid for contracts from anchor
institutions.
PRACTICAL STEPS
The pamphlet suggests what practical
steps Labour/Co-op councillors can
take to promote community wealth
building, including embedding the idea
into councils’ economic strategies and
appointing a cabinet lead or deputy mayor
for co-operatives and community wealth.
The guide warns that the community
wealth building approach must be
properly resourced, with buy-in from
senior officers and sufficient staff across
the local authority tasked with its delivery.
It suggests setting up a local network for
anchor institutions, including via existing
structures. Councils are also advised to
commission a study on the existing impact
of anchor institutions to understand
where the interventions would have the
most impact.
In terms of supporting co-ops and
local social enterprises to start up, grow
and bid for contracts, the Co-op Party’s
research calls for a ‘marketplace’, such as
a portal, so that co-ops, social enterprises
and SMEs can easily see available
opportunities, and anchors and larger
businesses understand the local market
and can more easily obtain quotes from
them.
Other practical steps suggested include
establishing a co-operative commission to
explore options for expanding the sector,
providing business advice and support
tailored to the needs of co-ops and
creating a co-operative investment fund
using patient capital from anchors.
At the 2017 Durham Miners’ Gala, the
Co-operative Party unveiled its centenary
marching banner, commissioned to
celebrate the Party’s 100th anniversary.
The banner, which is hand-painted on
a single piece of silk, includes many
references to co-operatives, including
honeycomb and beehives, divi stamps,
red and white poppies, Robert Owen’s mill
at New Lanark, and Toad Lane.
The front (left) features five key figures
from the history of the co-operative
movement walking forward, arm in arm:
AV Alexander; Joyce Butler; Lord ‘Ted’
Graham of Edmonton; William Cooper and
Mary Barbour.
8 | AUGUST 2017

WORK
Taylor delivers report on future of work – with no direct mention of co-ops
Matthew Taylor delivered his Review
of Modern Working Practices in July –
but critics have pointed to its failure to
explicitly mention co-ops and employeeowned
models of business.
The review – commissioned by
the Conservative government from
Tony Blair’s former advisor to look at
employment issues such as low pay
and the gig economy – makes a series of
recommendations for policy makers.
u It wants all forms of work to be treated
equally – in terms of tax, rights, and
regulation
u It recognises the value of platform
working for those who need it but says
“dependent contractors” should be
treated fairly, with flexibility required of
employers as well as workers
u The law should be framed to encourage
employers to behave properly and for all
workers to know and exercise their rights
u The best way to achieve better work is
not national regulation but responsible
corporate governance, good management
and strong employment relations within
the organisation
u Everyone should have “realistically
attainable ways to strengthen their future
work prospects”
u There should be a “more proactive
approach to workplace health”
u The National Living Wage is “a powerful
tool to raise the financial base line of lowpaid
workers” which should be backed by
strategies engaging employers, employees
and stakeholders to ensure that people
are not stuck at the minimum rate.
But critics, including union leaders and
the Labour Party, say the report is not bold
enough. And although it includes a section
on “WorkerTech” solutions – online
platforms for employees to pool risks and
resources – it makes no explicit mention
of co-ops or employee ownership.
In his analysis of the review, James
Wright, Co-operatives UK policy officer,
welcomed some of its ideas and said it
was “at its best where it identifies what
workers can do for themselves, often
through modern forms of co-operation
and organising”.
He believes the review has “moved
conversations about modern work in
some potentially very fruitful directions”
and contained promising detail for the
co-op model, “if you know where to look”.
But he also pointed to omissions,
adding: “The review stresses the need for
the self-employed to provide for periods of
ill health and to plan retirement but stops
short of mentioning many of the ways they
can do that better by working together.”
Mr Wright added that the Taylor Review
“also misses a trick by failing to recognise
how flexible working can be a very good
thing“ in improving flexible working
arrangements. And he pointed to the
review’s failure to mention worker co-ops
in its section calling for better corporate
governance and a more meaningful say
for employees at work.
Views from the movement
Simon Parkinson, CEO and principal of
the Co-operative College: “We welcome
the report as another piece of research
into the future of work, though feel it may
have benefited from specifying existing
approaches that could provide answers to
the issues, particular worker co-ops.
“Worker co-ops are well understood
as a proven way for workers to protect
their own rights and to strengthen
health and wellbeing through a more
engaged workplace. They also offer
many individuals faced with increasingly
precarious work a good balance between
flexibility and control.”
Peter Holbrook, chief executive of Social
Enterprise UK: “Few social entrepreneurs
would disagree with Taylor’s ambition
that ‘all work should be fair and decent
with realistic scope for development and
fulfilment’. Yet the report is far too quick
to dismiss the role national regulation
could and should play in delivering
this. The proposal for ‘dependent
contractor’ status in addressing the
more exploitative practices of some
platform-based companies feels more
like an accommodation of unacceptable
corporate behaviour than a challenge to it.
“Social enterprises [and co-operatives]
offer a model of doing business that is
intrinsically people centred – leading the
way in terms of both pay and diversity.”
Claire McCarthy, general secretary of the
Co-operative Party: “I’m sure the whole
co-operative movement will agree with the
aim at the heart of the review that we want
an economy which delivers good work
for all. The recognition that responsible
businesses create good jobs and the
importance of corporate governance and
employee engagement within that is also
welcome.
“Given this, it was a little disappointing
that the review made no concrete
proposals in this area and indeed did
not acknowledge that different business
forms, including employee ownership and
worker co-ops, have this hardwired in.”
AUGUST 2017 | 9

PUBS
How community pubs
and shops are helping
villages thrive
Communities that co-operate together,
grow together, say two national
reports published by the UK’s Plunkett
Foundation. Local pubs and village shops
owned by community co-operatives
are prospering where private enterprise
has failed – both in terms of financial
sustainability and the positive social
impact they have, the research found.
Plunkett, the leading support
organisation for community-owned shops
and pubs, released the reports following
research into the people-centred ways in
which these organisations respond to the
needs of their communities – and how
communities support them in return.
The research shows that at the end of
2016 there were 348 community shops
trading in the UK, providing essential
services to 1,400 remote rural communities
while creating 1,114 paid jobs and 9,605
volunteer positions. Together, these
shops generated a combined turnover of
£54m and donated a total of £125,000 to
community projects.
The report found that no community
shops have closed within the last two
years, resulting in a 95% long term
survival rate.
The UK’s 50th co-op pub opens its doors
p The Maybush Inn, Essex, closed in 2015, but was saved by the community the following year
(Image: Plunkett Foundation / Harwich & Manningtree Standard)
As well as safeguarding valuable
retail services, community shops
provide additional services in response
to community needs, says the report,
from affordable food schemes (42%) and
arts activities (62%) to healthcare and
wellbeing (71%) and tourism (82%).
At a time when pub numbers in the UK
are at an all-time low, the co‐operative
pub sector had grown by 15%, says the
second report. In 2016, 46 co‐op pubs were
trading across England and Wales and a
further 90 groups were actively exploring
setting up a co-operative pub.
The Craufurd Arms in Maidenhead, Berkshire, faced last orders in August 2016 when
its former owner, the Wellington Pub Company, announced it was up for sale.
Already alarmed at the rate of pub closures in the town, locals set up up a
community benefit society, the Craufurd Arms Society, and raised £310,000 from
their community share offer in March 2017. Shareholders were invited to invest
between £250 and £25,000 to become members, and democratic owners, of the pub.
The group received specialist advice and finance from the More Than A Pub
programme, set up in 2016 to support community ownership of pubs in England.
This two-year programme is funded by the Department for Communities and Local
Government and Power to Change, and
is delivered by the Plunkett Foundation.
Mark Newcombe, chair of the Craufurd
Arms Society, said: “Although this is an
urban setting, the Craufurd feels like a
village local. There used to be six pubs
in this part of Maidenhead and now
this is the only one. We’ve done this to
safeguard the future of the community.”
Like community shops, co-operative
pubs are often integral to the continuing
vitality of communities, and in rural
villages “can often be the last remaining
service in the community”, says the report.
“There is therefore potential for them to
become hubs of the community offering
additional services such as a micro shop,
café, post office, meeting room, etc – all
enabling people to make greater use
of the building and providing greater
opportunity for social interaction.”
James Alcock, general manager at the
Plunkett Foundation, believes the number
of community-owned enterprises across
the UK is expected to continue to increase
in the coming years, in part because they
are a “great leveller”.
“Community co-operatives bring
people together of all ages, backgrounds
and interests, and give them a purpose to
interact,” he said.
“This can benefit new residents
who want to meet their neighbours,
young parents who feel isolated at
home, teenagers seeking work and
life experience, the retired seeking
opportunities to remain active, and those
who live alone or are carers and have no
other way of meeting people.
“Put simply, co-operative pubs and
community shops reduce social isolation
and loneliness.”
u Read the full reports online at
s.coop/betterbusiness2017

Midcounties announces support for causes in 20 areas
p Michael Holmes, manager of the Wooldale
Road store, with colleagues at the opening
RETAIL
Central England
celebrates £500k
investment in former
Wooldale stores
Central England Co-op has spent £500,000
on three new-look food stores in Yorkshire
in a link-up with Wooldale Co-operative.
The major investment in the county
saw former Wooldale stores revamped
in Wooldale Road, Holmfirth; Holmfirth
Road, New Mill; and Springwood Road,
Thongsbridge.
The upgrades, which include
pioneering energy-efficient refrigeration
technologies and LED lighting, come after
the two societies decided to join forces to
strengthen the local offering for Wooldale
Co-operative customers and members.
Wooldale has a long history in the area,
stretching back over 130 years, and 40
colleagues across its three Food Stores
have been transferred to Central England.
The opening day event saw dozens of
customers queue outside for a golden
ticket giveaway, which saw 100 shoppers
walk away with everything from a 50-
inch TV and a barbecue to Co-operative
gift vouchers and Irresistible Fairtrade
chocolate bars.
Pupils from nearby Wooldale Junior
School were on hand as special guests
to cut the ribbon and announce the store
officially open.
Michael Holmes, Holmfirth store
manager, said: “I’d like to thank customers
for their patience during the revamp.
We hope everyone will enjoy the store as
much as we do.
“All of us at the three new Co-operative
Food stores are proud to be part of such a
great community and are looking forward
to welcoming customers, new and old, to
come and enjoy our food store.”
The Midcounties Co-operative will be
working with colleagues and members
across 20 regional areas to help address
issues affecting their communities. As part
of its Regional Communities programme,
the co-op will be involved in volunteering,
fundraising and distributing grants from
its Community Fund and carrier bag levy.
Lincolnshire Co-op raises £144,000 for local hospices
A fundraising campaign at Lincolnshire
Co-op has boosted the funds of nine local
hospice charities, which were chosen
as the society’s Community Champions
from March to May. The awareness and
fundraising drive brought in £144,000,
with hundreds of the society’s colleagues
joining a sponsored pedometer challenge.
The Eighth Day worker co-op secures Fair Tax Mark
The Eighth Day, a vegetarian health food
store and café founded in the 1970s, has
become the latest co-operative to achieve
the Fair Tax Mark. “We’re delighted to
have been awarded the Fair Tax Mark as
we strongly believe it’s important that
businesses contribute fairly to society,”
said the co-op’s Jen Marsh.
Four UK credit unions awarded the Fairbanking Mark
The Fairbanking Foundation awarded a
five-star Fairbanking Mark to four credit
unions – Hull & East Yorkshire, Just,
London Mutual and Plane Saver – for their
loan products. The certification is granted
in three, four or five-star versions after
the foundation assesses the level of the
financial well-being a product delivers.
Institute for Solidarity Economics relaunches as a co-op
The Institute for Solidarity Economics has
transitioned to a multi-stakeholder cooperative
and relaunched as the Solidarity
Economy Association (SEA). Founded
in Oxford in 2014, the organisation is
dedicated to researching ways of bringing
together organisations addressing
pressing social and environmental issues.
AUGUST 2017 | 11

CO-OP GROUP
Millionth member and 2,000th Funeralcare apprentice at the Co-op Group
The Co-op Group has signed up its millionth new member,
meeting a challenge it set itself when launching its new
membership scheme last September.
And it beat another of the targets it set itself – to recruit an
apprentice a day at its Funeralcare division – when it welcomed
its 2,000th recruit, 23-year-old Ryan Coombes (right), on board
from Grimsby.
Announcing the landmark for the membership drive, chief
executive Steve Murrells said on the Group’s website: “You did
it – we’ve signed up our one millionth new member. The end of
2017 was our target to achieve this milestone and we’ve smashed
it already. What an incredible achievement.”
The new recruits bring the total active membership at the
Group to 4.5 million.
The millionth new member, identified as Shelby, 18, said: “I
joined the Co-op membership after hearing about all the benefits,
not only getting money back for myself, but also giving to charity
at the same time, which I think is amazing.”
First class fizz Local causes fund Fighting water poverty
A bottle of Co-op Group champagne,
selling for £16.99, has been ranked
alongside brands costing over 23 more.
Les Pionniers NV Brut received a gold
award at the 2017 Champagne and
Sparkling Wine World Championships
(CSWWC), as did the £25.99 Les Pionniers
2008 Vintage Brut.
At the more expensive end of the scale,
gold was awarded to a Louis Roederer
Cristal Brut Rosé 2004 (£396 a bottle) and
a Dom Pérignon 1998 P2 Magnum (£310).
“We travel the globe to source topquality
wine at the very best prices and
this win just goes to show that buying
award-winning wine doesn’t have to break
the bank,” said Ben Cahill, Co-op Group
Champagne buyer.
Applications are now open for the Co-op
Group’s local community fund, which
gives 1% of what members spend on
selected own-brand products and services
to good causes.
The scheme – part of the Group’s 5 and
1 membership offer – has already raised
£14m for local causes, such as Southport
lifeboats, Meanwood Valley Urban Farm in
Leeds (above), Friends of Broughty Ferry
Library, Dundee, and independent living
charity Starter Packs, in Glasgow.
Applications must be submitted by 8
August. To be eligible for funding, projects
or events must take place in the UK or Isle
of Man and benefit their local community.
u Find out more and apply: s.coop/25vvg
Steve Murrells, Co-op Group chief
executive, joined global music stars at the
annual Global Citizen Festival in Hamburg
in July to announce an ambitious new
initiative aimed at fighting water poverty.
Mr Murrells, along with Coldplay, Ellie
Goulding and Pharrell Williams, helped to
kick start the Global Investment Fund for
Water, which aims to raise funds to invest
in essential water and sanitation projects.
The Group donates 3p from each litre of
its own-brand Fairbourne Springs water to
the One Foundation charity.
At its AGM in May, the Group expanded
this commitment with the announcement
that an additional 1p would be donated
to clean water projects from every litre of
non-own-brand of bottled water it sold.
12 | AUGUST 2017

REFUGEES
East of England’s support for refugees, from the Spanish Civil War to the
present day
In 1937, 100 child refugees fleeing the
Spanish Civil War arrived in Suffolk
and were given accommodation at the
Georgian mansion at Wherstead Park,
now head office of East of England Co-op.
The then-Ipswich Industrial Cooperative
Society provided the children
with free bread as well as educational and
recreational activities including a trip to
Felixstowe sea front.
This year East of England marked
the 80th anniversary of the event by
commissioning a commemorative plaque
at Wherstead Park. It was unveiled by
Francisco Robles, on his first return visit
to the mansion since arriving as a child at
the age of ten.
In addition, the society has donated
£9,000 to three refugee charities in the
region. Suffolk Refugee Support, Essex
Integration and Diocese of Norwich
Refugee Appeal each received £3,000,
helping them to support refugee families.
It is believed there are over 20 million
refugees displaced from their homes
across the world.
“At Suffolk Refugee Support we help
those who have fled with vital advice,
learning and support,” said Rebecca
Crear, team manager.
“We help these people to access a fair
decision on their need for protection and
where granted leave to stay in the UK.
p Francisco Robles, who arrived at Wherstead Park as a refugee in 1937, aged 10, unveils the
commemorative plaque
We work to make sure they can become
independent and contributing members
of society as soon as possible.”
She added that the donation would
enable the charity to provide essential
items such as emergency food, clothing,
shelter and transport for those with no
other means.
“These are people who have suffered
immense hardship in their own countries
and who find themselves facing further
hardship here while they struggle to
rebuild their shattered lives,” she said.
Minnie Moll, joint chief executive at
the East of England Co-op, said: “As
current owners of Wherstead Park we felt
it only right to commemorate this special
anniversary and recognise the local
communities and businesses that played
a vital role in providing care and support
for the children that stayed here.
“We’re incredibly proud of our heritage
and for the support the Ipswich Industrial
Co-operative Society provided the
children, and are pleased that we’re able
to continue that support for refugees.”
COMMUNITY IMPACT
Wales Co-op Centre reports on 2016-17 impact
The Wales Co-operative Centre (WCC) has
helped 114 social businesses grow, worked
to complete four co-op housing schemes
and assisted 63,611 people in getting
online over the last year.
The figures were announced in the
organisation’s 2016-17 Impact Report,
which celebrates how the co-op has
supported people in Wales to improve
their lives and livelihoods.
Over the past 12 months the Centre
has worked across three main areas:
supporting local businesses; tackling
poverty and promoting inclusion; and
tackling forward-thinking policy and
research. Together this helps to create
“a fairer economy”, said Derek Walker,
chief executive.
“We help to create and retain wealth
within our communities through the
growth of co-operatives and social
businesses,” he added.
“As a co-operative, we’re guided by
an active community of members who
shape our strategic direction, scrutinise
our activities, increase our influence
and ensure we’re a voice for the social
economy in Wales.”
u Read the full report at s.coop/25w1b.
AUGUST 2017 | 13

GLOBAL UPDATES
GLOBAL
Which are the world’s most co-operatively minded countries?
According to a new index, Brazil takes
the crown – with Norway, Uruguay and
Canada not far behind.
The index was developed in time for
the UN-backed International Day of
Co-operatives (1 July 2017) by Tom
Crompton at Common Cause Foundation
for Co-operatives UK and shows the
importance people around the world
place on co-operative values.
Dr Crompton was reading Values: How
to Bring Values to Life in Your Business,
published last year by Co-operatives UK
secretary general Ed Mayo, when he was
struck by the similarity between the values
underpinning co-ops and the values that
Common Cause seeks to promote.
“Ed and I tried at that point to map these
two sets of values onto one another – and
we found a remarkable overlap,” he said.
Common Cause’s work is based
on a values model created by social
psychologist Professor Shalom Schwartz,
which has been studied extensively in
a way that co-op values haven’t. It was
found that two of Schwartz’s value groups
– ‘universalism’ and ‘benevolence’ –
could be used as a proxy for co-operative
values, including those of ‘self-help’,
‘equality’ and ‘openness’.
“With this, we were able to interrogate
the European Social Survey and World
Values Surveys and look at the prevalence
of co-operative values worldwide,” said
Mr Mayo.
“By comparing results for countries,
subtracting for each a balancing factor of
the more individual dimensions of ‘power’
and ‘achievement’ values, we could derive
a Co-operative Values Score (CVS).”
Common Cause Foundation looked at data
for – and ranked – 88 countries. The highest
score was found in Brazil, which achieved
a CVS of 2.19. Norway followed (2.06), then
Uruguay (2.02) and Canada (1.93). Spain,
Finland, Argentina, Iceland, France and
Great Britain make up the top 10.
Ed Mayo believes it is “fitting” that
Brazil ranks as the most co-operative
nation on Earth.
“The country has two and a half times
as many member owners of co-ops than it
does shareholders in listed firms,” he said.
“One of the most inspiring health
co-operatives in the world, Unimed, is
Brazilian. Its work to extend healthcare
across the country is an emblematic
example of enterprise and inclusion.”
Márcio Lopes de Freitas, president
of OCB, Brazil’s national federation of
Brazil
Rwanda
Brazil’s Unimed is the largest system of medical co-ops in
the world, with over 113 hospitals, as well as emergency care,
laboratories and ambulances.
Today, around 12% of Brazil’s population is a client of Unimed
while the medical giant covers 83% of the national territory and
accounts for 32% of the health insurance market. About a quarter
of Brazilian doctors are members. It was also the official provider
of emergency medical services at the 2014 World Cup, and one
of the 14 officials sponsors of Brazil’s international football
team. The World Cup was also an opportunity for Brazilian cooperatives
to showcase their products – for example, Cocajupi
(Central Cooperative of Cajucultores Piauí), a group of 450 cooperatives
that produces cashew nuts, sold its products to host
cities for the tournament.
And in 2016, waste picker co-operatives were in charge of not
only collecting, but also recycling the waste generated during the
Olympic games in Rio.
In early 2017, the Rwanda Cooperative Agency (RCA) announced
plans to bring in external auditors and contracted staff to tackle
embezzlement and improve management. Rwanda has more
than 8,000 co-ops, made up of more than three million members
– but it had been hard for RCA staff to reach every co-op in the
country for monitoring and said it is also hard for co-ops to
supervise themselves.
“We realised that funds of members are mismanaged by heads
of co-operatives,” said RCA director general Apollo Munanura
at the time. “However, change does not come at once and one
has to plan and come up with solutions. We are moving towards
transformational agenda.”
The country has recently seen craftswomen and farmers turn to
co-operatives to help increase empowerment, food security and
equality as the country rebuilds. Women-led co-ops help women
financially – but women farmers in the region have also spoken
out about the benefits of co-ops in family relationships.
14 | AUGUST 2017

co-operatives, was “very proud” to learn
of the results.
“The Brazilian population is open to cooperation
due to its diversity – we believe
that the co-operatives will be fundamental
for the development of our economy,” he
said. “OCB is working hard to make our
people aware of the co-operatives values,
[but] as they are already present in our
culture, co-operatives are also part of
what we are.”
Only one of the 88 countries – Rwanda
– had a negative CVS (ie the average
importance attached to achievement/
power was greater than that attached to
universalism/benevolence values), which
Dr Crompton found surprising.
“In a world where public discourse –
particularly from the media, business and
politicians – is seemingly so dominated
by values of wealth, power and public
image, it is so easy to overestimate the
importance that most people place on
these values.”
But, he added, studies have found
that insecurity and threats to a person’s
KENYA
Growth makes Co-op Bank of Kenya the
country’s top lender for businesses
Kenya’s Co-operative Bank has witnessed
the largest year-on-year loan growth
among local banks of 15% loan, despite
parliament passing a law that caps
commercial interest rates.
This amendment, passed in August
last year, puts a cap on lending rates at
4.0% above the central bank rate. It led
to a 16-month low in private sector credit
growth to 4.3% (from 18% in 2016).
The move was criticised by the
International Monetary Fund, which
warned that maintaining the cap would
cut the country’s economic growth rate.
The Kenya Bankers Association also
wellbeing tend to lead people to place
greater importance on power and
achievement values – and less importance
on universalism and benevolence.
“It’s perhaps to be predicted, therefore,
in countries where insecurity is likely to
be higher – such as in Rwanda – that the
Co-operative Value Score will be lower.”
Charles Gould, director general of the
International Co-operative Alliance,
pointed out that countries like Brazil,
Norway (2nd in the index), Spain (5th) and
Finland (6th) have exceptionally strong
co-operative business sectors.
“This is the first time that we have been
able to compare co-operative values across
countries, and to see the same countries
come up is remarkable,” he said.
“Do they form co-operatives because
these are the values of the country, or are
the values of the country influenced by the
kind of organisations it has? Like chicken
and egg, it may be a bit of both over time.”
u Read the full report online at
s.coop/25w2m.
highlighted that SMEs could struggle to
get loans as a result of the cap.
A report from Cytonn said the loan
growth experienced by the Co-operative
Bank was the result of a diverse loan book,
which included personal loans as well as
loans to SMEs and corporates.
Together these accounted for 65% of the
bank’s loan book. The bank also reported
a 6.9% deposit growth and a loan to
deposit ratio of 87.9%.
The bank has boosted loans to SMEs,
which now account for 8.8% of its loan
book, an increase from 6.8% in the
previous year.
CANADA
Consortium
formed to help farmers
in Africa gain access to
financial services
The Canadian Co-operative Association
(CCA) is leading a three-partner
consortium in a new project to make
financial services more accessible to
smallholder farmers, women and young
people in eastern and southern Africa.
“Our aim is to enable credit unions
in Ethiopia, Tanzania and Malawi to
improve their rural financial outreach
through technological innovations such
as mobile banking for co-operatives,
youth savings and insurance,” said
Michael Casey, executive director of
the Canadian Co-operative Association
and the Co-operative Development
Foundation of Canada. “We will do this
by building the capacity of their national
associations to scale-up services and
reach, engaging with other national
credit union associations in Africa,
and fostering credit union-friendly
legislation and policies.”
Working with the Irish League of
Credit Unions (ILCU) Foundation and
the African Confederation of Savings
and Credit Co-operative Associations
(ACOSCCA), CCA will employ credit
union expertise from Canada and its
credit union partners across Africa
to make rural financial services more
widely available in the three countries.
The four-year, USD $3.28 million project
is funded by the International Fund for
Agricultural Development (IFAD).
AUGUST 2017 | 15

COSTA RICA
Innovation: co-ops using agricultural waste for cosmetics and snacks
Two co-ops in Costa Rica have found a way to tackle agricultural
waste by using it to develop new products.
The project has financial backing from the country’s Higher
Education Council, which includes universities and other
institutions. As part of the initiative, smallholder producers are
shown how to develop food products and cosmetics by using
waste from apples, plums and guavas to produce toppings,
energy bars, sauces, soaps and body lotions.
The programme aims to strengthen producers’ capacity to
make the most of agricultural products that cannot be sold due to
some minor aspect faults but maintain the same nutritive value.
One of the worker co-ops involved is Frutalcoop (right), which
is using plums and apples for energy bars and salsa sauces and
guavas for food toppings, soaps and body lotions.
The first stage of the programme, which started in 2016, has
seen producers engage with people in their communities to learn
what sort of products they were looking for. The survey revealed
that snacks and cosmetics were the most popular products.
The second stage of the project will involve a training course
for producers.
This will enable 12 producers to receive training and learn
about the different features of each product as well as their
chemical components. Once they complete the course they will
have to go back to their communities and teach other members
about co-ops and how to develop their own brand.
Also taking part in the scheme is Cooperoguata, a co-op with
42 members, currently looking to diversify its offer to gain access
to new markets.
Patrik Matarrita, general manager of the co-op, said prices are
hit, sometimes by as much as 50%, by periods of overproduction
caused by longer dry seasons, and the development of the new
products is one solution to this.
The two co-operatives expect to be able to sell their new
products in 2018.
REPUBLIC OF KOREA
Co-operative
research conference:
Co-ops as social
innovators
Co-operative researchers will meet in
Seoul, the Republic of Korea (right), to
discuss the potential of co-operatives as
social innovators.
The theme will be explored at the 12th
edition of the International Co-operative
Alliance’s Asia-Pacific Regional Research
Conference on 11-12 November.
The event is being organised by the ICA-
AP Committee on Co-operative Research,
and will be hosted by the Department
of Management of Cooperatives at
the Graduate School in Sungkonghoe
University. The conference will focus
on the role of co-operatives in driving
innovation to address social challenges.
The organisers are inviting abstracts for
papers and session proposals exploring
issues such as co-operative and social
innovation in economy, education,
entrepreneurship, finance, sustainable
energy and environment, culture and art,
fundraising, housing, information and
digital technology, health and social care,
food, and media.
The International Labour Organization
(ILO) is also sponsoring one travel award
for the best submission on a world of
work topic (co-ops and labour laws,
organisation forms, employment creation,
transformation and social concerns).
At the conference the ICA-AP Research
Committee will also be presenting the Dr
Mauritz Bonow Young Researcher Award.
The prize is given to two researchers under
35 years of age presenting their papers
in the conference, who will receive USD
$500 and USD $300 respectively. More
information on the conference is available
at www.ica-ap.coop.
16 | AUGUST 2017

p Fonterra’s Kauri plant in Northland, on New Zealand’s North Island
NEW ZEALAND
Fonterra announces clean waterways plan
as dairy industry continues to improve practice
New Zealand dairy co-op giant Fonterra
has announced a new initiative to clean up
the country’s natural waterways.
Chief executive Theo Spierings said
the co-op wants to restore 50 freshwater
catchments. “We acknowledge we have an
important role to play in addressing water
quality in New Zealand,” he said. “Kiwis
want swimmable waterways and that’s an
aspiration we share. We’ll work with local
communities to improve the quality of our
streams and rivers.”
Fonterra launched its 10-year Living
Water partnership with the Department
of Conservation in 2013, with the aim of
achieving sustainable dairying in healthy
freshwater ecosystems. The programme
focuses on five catchments and aims to
improve natural habitats.
“Living Water has taught us a huge
amount and we are making a significant
impact on the initial regions,” said Mr
Spierings. “Now we want to amplify those
results with the launch of a new initiative
that will target 50 catchments.
“Our immediate focus will be on working
with communities, government and key
partners to identify the catchments and
develop a strategic framework. This is a
major undertaking and we need to get it
right.”
Mr Spierings made the announcement
at the annual meeting of the New Zealand
Sustainable Business Council in Auckland.
The council’s executive director, Abbie
Reynolds, said she was delighted Fonterra
was making a significant commitment to
improve water quality.
“The business case for sustainability
is clear and it’s pleasing that a growing
number of organisations are making robust
commitments to improving New Zealand
society and the environment,” she added.
INDIA
Co-op banks reach out with mobile ATMs
India’s 29 central co-operative banks
are working to extend modern facilities
to rural areas with the introduction of
mobile cashpoints.
The ATMS, which will be carried by van
to provide door-to-door banking facilities,
are being developed with the support of
the National Bank for Agriculture and
Rural Development (NABARD) as part of
its e-Shakti programme to digitise the
country’s network of self-help groups
and promote financial inclusion.
Rajasthan’s state co-op minister Ajay
Singh Kilak said: “Our effort is to provide
banking facilities in the rural areas
untouched by bank branches.”
He praised the e-Shakti digitisation
programme and said the government
would provide credit to the self help
“It is great that Fonterra is making an
ambitious commitment, which is both bold
and restorative.”
The dairy industry has been working to
improve its practices and repair years of
damage from intensive farming. Industry
body DairyNZ has produced the Farm
Enviro Walk Toolkit and devised the
Sustainable Dairying Water Accord.
Environmentalists have welcomed
improved dairy shed effluent management,
and the fencing off of streams on dairy
farms to keep cows away.
Dr John Quinn, chief scientist for
freshwater and estuaries at the National
Institute of Water and Atmospheric
Research suggested planting trees along
riverbanks to add further protection.
He said: “More than 97% of streams
running through dairy farms are now
fenced, so cows are out of waterways.
Waterways are still receiving E. coli and
Campylobacter from other unfenced stock
and wild animals. They’re also getting
microbial pathogens from land runoff when
it rains.
“Riparian strips can help. These are
the areas where plants grow alongside
streams. They trap nutrients and microbes,
including E. coli, in surface water. In the
best conditions, they can remove at least
60% of nitrogen and 65% of phosphorus
from runoff and groundwater.”
groups at subsidised rates. The cooperative
sector would act as a catalyst
for the empowerment of women in the
state, he added.
Rajasthan state government is also
setting up a three-member board for
to ensure the fair and transparent
appointment of employees and officials
to the co-op sector.
The board is empowered to decide
the selection process and eligibility
of employees, and to seek the help
of professional bodies in framing the
guidelines for recruitment.
Mr Singh Kilak said all those
co-operative bodies where the
government share capital is more
than Rs 5 lakh would come under the
board’s remit.
AUGUST 2017 | 17

GLOBAL
FairCoin creates world’s first co-op blockchain
The world’s first co-operative blockchain
has been developed by cryptocurrency
FairCoin, after a two-year process.
FairCoin, the co-operative version of
Bitcoin, has made the leap by creating an
algorithm based on mining processes that
rely on a proof of co-operation.
Usually, when a Bitcoin blockchain
transaction is carried out, it is grouped
together in a cryptographically protected
block with other transactions that have
occurred around the same time.
The members in the network with
high levels of computing power, also
known as miners, compete to validate the
transactions by solving complex coded
problems. The first miner to solve the
problems and validate the block receives
a reward in Bitcoins.
FairCoin 2 is different because it does
not involve such mining or minting
systems, which are based on competition.
Transaction blocks are generated by what
is defined as Co-operatively Validated
Nodes (CVNs). These nodes co-operate to
maintain the security of the network.
“Two years ago I became aware of the
enormous demand for energy and the
concentration of power around some pool
operators in the Bitcoin network. I thought
that there must be a better way to do it,”
said Thomas König, FairCoin’s lead
developer. “Why not try to let nodes
co-operate instead of competing?
“In many thought experiments
I tried to eliminate mining and
replace it with something different
that serves the same purpose. A
profound assumption of the new
system is that co-operation is more
efficient than competition.”
He added: “Now is the time to
switch to a proof-of-cooperation
system, which is the most stable
and trustworthy concept ever seen
in the world of blockchain.”
One fifth of all circulating
FairCoins were bought by anticapitalist
activist Enric Duran in
2014 and donated to FairCoop.
Their value exceeds €1m, and they
remain in a communal wallet used
for various FairCoop social funds.
Mr Duran is better known as the Robin
Hood of banks. From 2006 to 2008 he
took out 68 commercial and personal
loans from 39 banks. The money obtained
through the loans was used to fund
various anti-capitalist projects. He spent
two months in prison before being bailed
for €50,000.
“With FairCoop, we are building a
p Activist Enric Duran (Photo: Zoraida Roselló)
partnership based on co-operation and
mutual support,” said Mr Duran.
“In this way, FairCoin is showing itself
to be a key tool, with which to interconnect
globally and finance the transition. With
the arrival of the “proof of co-operation”
tool, the code stands at an equal level to
our political vision.”
On 18 July, the 53,193,831 Faircoins in
circulation were transferred to the new
blockchain based on co-operation.
EUROPE
Website launched to
raise awareness of
employee ownership
Business owners and employees looking
to convert enterprises to co-operatives can
now learn more about the process using
a new website launched by Cooperatives
Europe and CG Scop.
The www.transfertocoops.eu platform
focuses on the benefits of converting
small and medium enterprises (SMEs) into
worker-owned co-ops, while providing
information for all parties involved in a
business transfer.
The website is part of the
TransfertoCOOPS project co-financed by
the European Commission and developed
by 10 European partners led by CG Scop,
the French confederation of worker co-ops.
More than 450,000 SMEs are
transferred each year in the EU, and the
initiative was designed to improve the
environment of converting enterprises
into worker co-operatives as well as help
people understand how the co-operative
enterprise model works.
The English website was developed
based on a pilot version previously
launched in France. It features videos,
tips on how to lead a successful business
transfer and testimonies from employees,
consultants and buyers. A frequently
asked questions section also addresses
some of the most common misconceptions
around the co-operative enterprise model.
Patricia Lexcellent, director of CG Scop,
said: “Sharing the French experience
of transferring economically sound
businesses into worker-owned co-ops
with other EU countries is an exciting
project which will hopefully contribute to
extend such practices across Europe.”
Agnes Mathis, director of Cooperatives
Europe, added: “Though co-ops make up
a large part of the EU economy, business
transfers into co-operatives remain less
known, despite the clear benefits.
“TransfertoCOOPS will encourage
potential transferors to choose the
co-operative model as the viable option
for their businesses and ensure
sustainable employment.”
18 | AUGUST 2017

GLOBAL
Charles Gould to retire
from the International
Co-operative Alliance
Charles Gould is to retire as director
general of the International Co-operative
Alliance, after seven years in the role.
Mr Gould has been with the organisation
since 2010, and worked with the board of
directors on developing its Blueprint for
a Co-operative Decade and increasing its
influence with global policy makers.
Under his leadership, the Alliance
launched the World Co-operative Monitor,
a report mapping the global co-op sector.
Before joining the Alliance, he was
chief executive of Volunteers of America, a
health care, housing and human services
organisation based in Washington DC.
Mr Gould said: “The past seven years
with the Alliance have been extremely
fulfilling. It has been a real privilege to
work with such a great staff team, board
and members. I’m now looking forward to
continuing to support the co-op movement
from a distance at this time when it has so
much to offer the world.”
Alliance president Monique Leroux
added: “I want to thank Mr Gould for his
service and his support. He could not have
done a better job at unifying our global
movement and targeting the right issues to
ensure our relevance and our growth. He
will be remembered for his contribution to
the Blueprint for a Co-operative Decade. I
am so appreciative of his work and that he
will continue to work with us for the next
months to ensure a smooth transition.”
The Alliance board is reviewing the
organisation’s succession plan and has
appointed a human resources committee,
chaired by Seah Kian Peng, to lead a
global search for candidates.
Linda Yueh to speak at the Alliance’s Global Conference
Economist, broadcaster and author
Linda Yueh will be one of the keynote
speakers at the International Co-operative
Alliance’s Global Conference in Kuala
Lumpur, Malaysia. Her research interests
include the global economy, international
law and economics, China’s economy,
emerging markets and economic growth
and development.
ICU Day celebrates how credit unions make dreams thrive
Thurs.
Oct.19
#ICUday
This year’s International Credit Union
Day will be themed ‘Dreams Thrive Here’.
Celebrated annually on the third Thursday
of October, the day aims to raise awareness
of credit unions and the contribution they
make. In 2017 the day falls on 19 October.
The theme for this year’s day was selected
following an online poll.
Registration open for Social Co-ops International School
Social co-operators from across the world
will meet in Naples this autumn for the
third edition of the Social Cooperatives
International School. The event, held
on 19-22 October, is organised by
Federsolidarietà, the largest federation of
social co-ops in Italy. The country has more
than 11,000 social co-operatives.
Canadian healthcare co-op reduces medical bills
As more Canadians find themselves in
need of expensive medication every year,
a healthcare co-operative is helping
them deal with the cost. Beneplan works
to provide group employee benefits at
low prices, covering more than 25,000
individuals across 350 employers, the
majority of them SMEs.
Employees take over 51-year old enterprise in Australia
C-MAC Industries in Sydney has become
one of Australia’s first worker co-ops to
be set up as a result of an employee takeover,
after decades of being run as a family
business. The company was set up in 1966
by husband and wife Cliff and Margaret
McMaster and is now a specialist sheet
metal and engineering manufacturer.
AUGUST 2017 | 19

YOUR VIEWS
DON’T MENTION THE CLOVERLEAF
I wish people would stop referring to the
relaunched Co-op logo as the cloverleaf
(The Co-op Cloverleaf: One Year On,
News, July). That term was never used of
the original logo, introduced in 1967, but
was used for its failed and unlamented
successor, launched in 1993.
The original logo was designed by the
American brand strategy firm Lippincott
& Margulies, put on thousands of Co-op
brand products, and rolled out through
Operation Facelift in 1968. It rapidly
received widespread national recognition
– but by the mid-80s was beginning to
look more than a bit old-fashioned, and as
redolent of the 1960s as flared jeans.
In 1991, David Skinner, then chief
executive of the CWS, ordered a redesign
– but instructed that only “minor changes”
were to be permitted. The result was
launched in 1993 despite its performing
worse than the current logo in market
p The modern version of the logo with the 90s cloverleaf (inset, top) and 60s original (inset, bottom)
research on suitability and attractiveness.
I don’t know of anyone who liked it.
Unlike the ‘old’ logo, It was not generally
taken up by societies, and one immediate
result was the launch by CRS of its own
“co-operative” logo.
Then, following the merger of CWS and
CRS to form the Co-op Group in 2001, the
1993 design began progressively to be
abandoned in favour of a co-op identity
which for the first time would stretch across
all parts of the business, including the
Head of Food Retail based Chelmsford, Essex
Salary £80 - £85k pa according to experience
Chelmsford Star Co-operative Society is an independent Co-operative
Society, based in Chelmsford, Essex, and operating across Essex.
The core business activities are Convenience Food retailing,
Departmental Stores, Travel Agents and Funeral Directors, with
also a small property portfolio.
The Food retail estate which continues to expand consists of 41 convenience stores,
with 5 Post Offices and one Petrol Filling station. We are now seeking to appoint a
Head of Food Retail to join the Executive Management team to lead the Food retail
business to contribute to the further development of the business and realise the
Society’s strategic objectives. The successful candidate will have responsibility for
driving sales and profit growth through effective store management.
You will have a minimum of 5 years management experience at a senior level gained
in FMCG Retail Operations environment, with ideally a knowledge of the co-operative
business model. You will have excellent project management and report writing
skills and a solid understanding of retail trends and developments in the industry.
The candidate must be highly commercial and exceptional strength of character.
The position requires strong leadership and communication skills with an emphasis
on team working including building and maintaining relationships with both internal
and external stakeholders.
The position attracts the usual benefits associated with a position at this level.
To apply send your letter of
application and CV to:
Ann Rowland, Head of Human Resources,
Chelmsford Star Co-operative Society Limited,
220 Moulsham Street, Chelmsford, Essex CM2 0LS.
Email: ann@chelmsfordstar.coop
Closing date for applications: 7th August 2017
www.chelmsfordstar.coop
IS IT TIME FOR A NAME CHANGE AT THE CO-OP BANK?
It is totally unacceptable to continue to use the Co-operative
Bank name. It was very dubious when the Co-op Group, a
genuine co-operative society, held 20% of the shares, but this
was seen as a step to a possible return to full co-operative
ownership. If ownership now is only 1% or less, then the Bank
must drop the use of the title ‘Co-op’ Bank when it is not one –
as there are many genuine co-op banks (credit unions) in the
UK. The Bank is stretching customer loyalty to breaking point.
I don’t want to leave – but it should announce a new name
quickly. How about ‘The Hedgies Bank’ or ‘New Manchester
Bank’? I want the retail part of the Bank and its excellent call
centre staff to be kept, but it must be a breach of the trade
descriptions act to now call it ‘Co-operative’. A co-operative
is a distinctive form of business, not a trade mark. If it says
‘co-operative’ over the door and in its adverts it should be a
genuine co-operative society that owns and runs it.
John Harrington
via website
I would love to see a solution that would allow the co-op ethos to
remain at the Bank, and I think the shareholders appreciate that
it is a fragile and delicate thing, and that it should be protected
at all costs. Not just ‘ethics’ – though they are important – but
a commitment to co-operation. I hope they take this on board.
John Jennings
via website
20 | AUGUST 2017

financial sector which had never adopted
either the Co-op logo or the cloverleaf.
The latter term was coined at the time
of the merger by our brand adviser Leslie
Butterfield – if not as a term of abuse,
then at least to differentiate the unloved
1993 version from the original Co-op
logo – which has since gone from being
merely old-fashioned to being part of our
heritage. So please, let’s just call it the
Co-op logo, as we have done for 50 years –
and consign the Cloverleaf to the dustbin
of history where it belongs.
Bill Shannon,
Former head of corporate affairs,
Co-op Group (1996-2002)
A LACK OF CO-OPERATION?
“The Co-op cloverleaf one year on” article
is at variance with views expressed
elsewhere. The Group never consulted
with the independents in the original
branding scheme prior to the launch. They
were informed just days beforehand. It is
a given that Group membership was not
asked beforehand either.
Your article quotes Minnie Moll, joint
CEO of East of England, saying discussions
are “ongoing, very collaborative” – ironic
as East of England was not part of the
original marque.
Midcounties, a signed-up partner, says
the discussions were the opposite.
Scotmid, another non-participant,
seems to think the Group scheme is a trial,
the opposite being the case.
The independents who chose to stay
outside for whatever reason – and there
are several, from local stubbornness
to wondering what would happen if the
Group unilaterally abandons the scheme
in the future – have been poorly treated,
especially over the rebranding of items
tied to the 5% and 1%. The swamping of
the offer in the media has indeed caused
Have your say
Add your comments to our stories
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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
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Co-operative News, Holyoake
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Manchester M60 0AS
letters@thenews.coop
@coopnews
Co-operative News
problems to other societies. To hear the
exceptions read out on Co-op radio instore
is akin to hearing the names on a
naughty list. I heard a customer ask if
the points earned can be added as she
has just found her card, only to be told to
phone Manchester. It was the last straw.
“You cant use this anywhere,” she
retorted. Trying to be an ambassador, I
suggested that that was not the case and
asked her where else she had tried.
“Lincolnshire,” came her instant reply.
“I am going to cut the damn thing up!”
I hope [CEO] Ursula Lidbetter and her
board are reading this. In the digital
age, this woman has been unnecessarily
alienated by two co-ops, almost at the
same time!
The lesson? A previously fairly good
arrangement under the “co-operative”
banner worked with many and was growing
organically, but was then unilaterally
scuppered.
A similar model capable of modification
is now, as a direct result. less likely. The
Group may need to look at a more basic
approach – one prefaced with: “We are
sorry for what happened” may assist,
before asking: “How can we work cooperatively
to resolve this?”
Need it be said yet again, if this is
how the membership offer fails to work
between societies all speaking the
same language, what chance of real cooperation
with co-ops across the Channel?
p Read more on the financial and ethical implications of the changes at the Bank on p46-47
Leslie Freitag
via email
AUGUST 2017 | 21

MEET...
... Nathan Bower-Bir, student,
researcher and housing co-op
co-founder
Nathan Bower-is a PhD student researching co-ops, the housing crisis and
decision making. Originally from Indiana, he has lived in Edinburgh for six
years, and recently spoke at Co-operative Congress on reimagining housing.
HOW DID YOU GET INVOLVED IN CO-OPERATIVES?
I came to Edinburgh for an MSc in sustainable
energy systems and was supposed to be here for just
a year, but Edinburgh has a way of capturing people.
I’ve been a student on two continents and lived in
all sorts of housing conditions, many of them not
great. Students today face their own version of the
housing crisis, with most student housing either run
down or outrageously expensive – or both. Student
housing is now a lucrative ‘investment opportunity’,
with government-backed buy-to-let schemes and
internationally financed private student halls
driving up costs and disrupting communities. But
students deserve homes over which they have
control and that are integrated into wider society.
I was involved in setting up the Edinburgh Student
Housing Co-op (ESHC) to empower myself and other
students to provide our own, good housing. Now for
my PhD I am exploring this further, looking at the
daily life and routines in the co-op, how residents
work together to meet their needs, and rethinking
democracy not as a chance to vote but as a way
of living and conducting ourselves in relation to
others.
WHAT DO STUDENT HOUSING CO-OPS OFFER THAT
‘REGULAR’ STUDENT HOUSING DOESN’T?
The first thing you might notice at ESHC is the
amazing community of people. A new member
moving in immediately has 105 neighbours ready to
show them around, have a chat over tea, and help
them get settled. You’ll likely also notice the 60-bike
storage, sheltered by a green roof we built – and
“”
TRANSFORMING SOCIETY
THE MOVEMENT NEEDS TO
RECOGNISE THE ROLE THAT
HOUSING CO-OPS CAN PLAY IN
the workshop in the basement. And it’s like this
because we the residents control our own housing.
Whereas in standard halls or student lets, residents
have almost no control over the material space of
their housing, in the co-op, residents are putting
up new shelves, replacing shoddy carpets with high
quality flooring, and painting their walls something
other than off-white. We are the stewards of this
place for ourselves and future residents. Today’s
hyper-commodified housing is not about providing
good homes in strong communities – it is solely
about making other people profit. In the housing
co-op, we turn all that on its head. Residents have
power over their home, and the responsibility for its
upkeep. We want to be involved in our community
and engage the Edinburgh beyond our walls. It
seems to surprise a lot of people, but we’re actually
responsible people who know things and have
diverse skills.
WHAT IS THE BEST THING ABOUT LIVING IN A
HOUSING CO-OP? AND THE HARDEST?
The Co-op is a huge laboratory. The high turnover
of membership (we’re all students) means we’re
always educating ourselves and each other how to
do all the work needed to run this place. Members
carry out repairs and renovations, keep our finances
in check, recruit new members, lobby politicians,
and maintain a strong social atmosphere. Where
else would we learn these things!? I think we’ve
all come to recognise that co-operation is not an
inherent skill, but a craft each of us must learn and
nurture. This whole place, just like any anywhere, is
a continual negotiation of ideas, of being challenged
to work together. It can be frustrating, but it’s hugely
rewarding, and I think we’re all better for it.
WHERE WOULD YOU LIKE TO SEE CO-OPERATIVE
HOUSING IN FIVE YEARS TIME?
Housing co-ops could play a huge role in meeting
people’s needs for good quality, affordable housing.
Already more than 67,000 people live in co-ops
across the UK, but to build on that, we need better
22 | AUGUST 2017

networks that help existing co-ops expand and
support new ones. We also need to find a way to
communicate that co-operative housing isn’t just for
students or people who want to live an ‘alternative’
lifestyle. Ultimately, each co-op is whatever the
residents want it to be. Not every housing co-op will
be the right place for every person, but the beauty
of the model is its flexibility to resident needs and
aspirations. When people see that it can be the same
housing they are living in now, but cheaper and
more responsive to their actual needs, it becomes
much more tangible and attractive.
join our journey
be a member
WHAT DOES THE FUTURE HOLD FOR ESHC?
We’re working towards two big goals for ESHC in the
near-term: housing more members, and forging a
stronger connection with our local community. With
106 members, we benefit from economies of scale
that yield a healthy financial surplus. Right now,
we’re investing a lot of that back into our buildings,
planning for flat refurbishments and renovating our
basements to be open to the community for concerts,
workshops, dinners, plays, or whatever interesting
things people want to put on. But we also want to
invest in other properties to help more students
take control of their housing. Demand is huge, with
around 10 applicants for every available place, so
we know the idea is catching on. But most of our
income goes to rent for the buildings, so to expand
we need financial support from the wider co-op
movement. If we owned our buildings outright, we
would generate a surplus of over £300,000 annually
– enough to make a down payment on a similarsized
property every few years. That’s the kind of
self-propagating investment that could secure the
future of the UK co-operative movement.
HOW CAN THE CO-OP MOVEMENT GET INVOLVED?
The movement needs to recognise the profound
role that housing co-ops can play in transforming
society, and to re-think how new and growing
co-ops are supported. ESHC is subsidising
community-accessible spaces that wouldn’t exist
otherwise, and we’ve also proved to be a nascent
co-op incubator. Former residents have taken their
first-hand experience of this way of living and
organising to start, for example, the Mutual Artists
Studio Co-operative and the Edinburgh Brewing
Cooperative. But perhaps the greatest hurdle to any
new or expanding co-op is access to financing. We
need to reimagine what it means to ‘invest’ in the
movement, and that ‘returns’ on our investment
are not just financial, but come in stronger, more
diverse, more empowered communities that carry
the movement forward.
news
We’ve relaunched our membership,
offering member-owners more opportunity to
help us plot the future of our independent coverage
of the co-operative movement.
Find out more at:
thenews.coop/join
AUGUST 2017 | 23

CO-OPERATIVE
CONGRESS 2017
ANTHONY MURRAY,
REBECCA HARVEY, ANCA
VOINEA and MILES
HADFIELD report from
the Wakefield event,
organised by
Co-operatives UK
p Dame Pauline
Green announces the
development strategy at
Congress
Ambitious strategy launched to
build a co-operative Britain
A radical strategy to grow the UK co-op sector
and reshape the country’s economy on more
participative lines was announced at Congress.
Do It Ourselves, the National Co-operative
Development Strategy led by Co-operatives UK, was
launched by Dame Pauline Green, former president
of the International Co-operative Alliance. The
“fresh, simple and stimulating strategy” is a “call
to action, based on our co-op roots, to actually do it
ourselves,” she said.
The strategy, drawn up after two years of
dialogue with the movement, using studies of other
countries with strong co-op sectors, is focused on
helping freelancers come together in the modern
gig economy; meeting needs for social care through
new models of co-operation; and encouraging
digital ventures, or ‘platform co-operatives’, using
new technology for shared ownership services.
Co-operatives UK has issued a pack to introduce
the strategy, produced by Calverts workers cooperative,
with a booklet and 35 information cards
developed with input and ideas from more than 550
co-ops. It has also published a Technical Report
which details the research behind the core strategy.
Winning co-ops
Suma Wholefoods, Daily Bread Co-op and
The New Leaf Co-op were the winners of
the 2017 Co-operative of the Year awards,
organised by Co-operatives UK and
sponsored by the Co-operative Councils’
Innovation Network.
Suma Wholefoods, a Halifax-based
wholesaler owned by its 160 employee
members, was named Leading
Co-operative of the Year – another cause for
celebration in its 40th year.
Daily Bread Co-operative, a worker
co-op founded in 1980 which supplies
food in Northampton, received the Growing
Co-operative of the Year award.
And New Leaf Co-op, set up five years
ago to offer high quality food in Edinburgh
as part of a network of young people
starting co-ops, was named Inspiring
Co-operative of the Year.
p Members of the winning Co-operatives of the Year after the awards ceremony
Congress ended with 2017 Co-op
Pitches – a Dragon’s Den-style contest for
fledgeling co-ops.
The winner, after a presentation from
member Emma Adelaide Back, was
CareShare, an online platform where care
workers, users and families could work
together to create high quality, decently
paid care. She received £2,000, plus
business support from the Hive.
The runners up, Bristol Gym Co-op and
Leeds-based Woodhouse Community
Growers, also received £1,000 in support
from event sponsors Co-op Insurance.
24 | AUGUST 2017

Dame Pauline said: “On the whole the people
who were engaged in it hadn’t been involved in the
work of Co-operatives UK before. There were a lot of
young people, it was very exciting and liberating.”
The ambitious strategy would try to harness that
energy to reshape the country, with decent jobs and
sustainability built into business, she added.
“It’s not just about creating more co-ops, it’s
about creating a more participative economy,”
she told delegates. “A more inclusive, more just
economy for all.
“The country and economy are in a quite perilous
place right now. The government can find the magic
money tree to pay a billion pounds to the DUP, but
they can’t shake it to pay nurses more.
“People now want to be involved, they want to be
valued for what they can offer. That’s what we saw
in the community that came out after the horrible
tragedy at the Grenfell Tower, in the families who
campaigned after Hillsborough.”
And she said the strategy would help the co-op
movement meet that need for change.
“One day most businesses will be run in a
participative way,” she said. “It will be a different
kind of economy, one in tune with our values.”
She urged co-operators to “populate the strategy,
make it your own,” to “show who you are” by using
the Coop marque and .coop domain, and to work
together to lobby government.
u Find out more about the National Co-operative
Development Strategy and download the resources
at www.uk.coop/doit
Remembering victims of
domestic violence
Congress displayed a patchwork
quilt commemorating the lives of
598 women in England and Wales
killed by their partners or ex-partners
between 2009 and 2015.
The project was started by Roxanne
Ellis, a Labour/Co-op councillor,
after she saw the Femicide Census
naming of women killed by acts of
domestic violence.
She wanted to create a visual
representation and, after suggesting
a quilt on Facebook, she received
messages from people from all over
the world, who chose names from
the list and sent patches to add to the
piece – one for each woman killed.
What will the strategy do?
The strategy aims for:
By 2027, a 50% increase in public
perception of co-ops as modern
and innovative; backing from major
professional associations for the coop
option; a tripling of the rate of coop
start-ups and conversions; and
evidence in place of positive social
and environmental impact.
By 2037, half of the UK population to
benefit from co-operative or mutual
enterprises as a member; and for
£1 in every £10 of the country’s GDP
to be generated by participative
businesses such as a co-operative
or mutual.
It wants co-ops to:
u Be great at co-operation – living
up to your own values, looking for
ways to collaborate with others and
choosing co-ops to trade with
u Be open to new co-operation, new
conversations and new ways to act
co-operatively
u Join campaigns for inspiring
co-operation – having the confidence
to spread the word or campaign for
co-operative action
As well as raising the awareness
of domestic violence, the quilt
– unveiled at Westminster on
International Women’s Day – is used
to raise money for local charities.
The group is now looking at setting
up a community interest company to
take the initiative forward. As part of
this, they want to create small toys
and blankets for refugee children.
Mr Ellis added that the co-op
movement could help by sharing
expertise and displaying the quilt at
various events.
u Donations: www.gofundme.com/
the-womens-quilt
u Live up to best practice
governance – achieve values of
equality and openness and build the
skills for co-operation.
u Support innovation, be open with
data, look at new ways for workers
and members to get involved.
Initiatives in place include the
Hive, a co-op support programme;
CoTech, a new network of technology
co-ops which aims to grow 100,000
jobs in the sector by 2030; Unicorn
Grocery’s Replication Lab, to
spread its co-op model; the Cooperative
College’s Future Pioneers
Fund to support co-op action; and
Federation, set up by the Co-op
Group to create an open community
of digital businesses.
p Roxanne Ellis, with Elaine
Dean (chair of Co-op Press and
president of Central England
Co-op), who suggested the
quilt come to Congress
AUGUST 2017 | 25

From actor to activist: Michael Sheen joins
Welsh actor Michael Sheen has built up a
formidable reputation on stage and screen
– but he is also making a name for himself
as a social activist, joining the call for a
better economy.
Last year, the Frost/Nixon and The Queen
star helped the Wales Co-operative Centre
launch Community Shares Wales. In April
he became patron of Social Enterprise UK,
and this summer he attended Congress as
an individual delegate.
“It has been fascinating – there is so
much information and I just want to hear
more,” he told Co-op News.
“At the moment I’m only scratching the
surface. The array of issues that are being
touched upon at Congress have been really
impressive, including the big questions,
like how to re-imagine the economy.”
Mr Sheen believes co-operation is “one
of the important tools to be able to move
towards a fairer economy”.
“I think this was a good way for me
to learn as much as I could in a fairly
condensed space of time,” he said. “It’s
a bit overwhelming but it does mean I am
getting a sense of what I’d like to follow
up more and do a bit more digging into.”
A key topic at the Congress was the gig
economy, and how co-operatives can help
freelancers obtain better legal services and
social protection – reminding Mr Sheen of
his own profession.
“The flexible economy is going to
become more prevalent. So, being able
to give the kind of security, support
and consistency that people need while
freelancing counts,” he said.
“When I was starting out as an actor,
it was an incredibly insecure profession.
You don’t know what’s coming or when
the money is going to arrive, so it’s very
hard to plan anything. We had our union,
Equity, but moving ahead it is going to
be increasingly important to study what
organisations – including co-ops – are
doing and find a way to be an intermediary
between the platforms and the workers.”
Mr Sheen has been vocal on the subject
of the steelworks at his home town of Port
Talbot, south Wales, which was left facing
hundreds of job cuts after owner Tata
announced its withdrawal last year.
“We’ve got an Amazon distribution
centre on the outskirts of Port Talbot,”
he said. “I drive past that every day and
it keeps reminding me of the dangers
of a future where workers have so little
security and consistency.
“There’s a huge desire for jobs in the
valley communities that have suffered
deindustrialisation – but the danger is
that the jobs are very insecure, low-skilled
and with low wages.
“The idea of working from grassroots
levels to build up work opportunities
Taking steps towards a reimagined
p Dr Kathrin Luddecke
from Plunkett Foundation
(top) and Kayleigh Walsh
from Outlandish
Congress looked at Reimagining the Economy,
alongside workshops on community, housing,
technology, education and the gig economy.
Co-op News’ Big Debate – Caring for community in
a time of crisis – touched on similar themes, as the
movement looks for ways to answer the call to Do It
Ourselves. Here are some key points ...
LOCAL GOVERNMENT
Jonny Gordon-Farleigh, from Stir to Action, said
Preston City Council was leading the way by offering
contracts to worker co-ops in the area.
“They’re simplifying their tenders and retraining
procurement officers about the co-op model,” he
said – adding that it is also important for co-ops to
understand the needs of local authorities.
Rachel Laurence, from the New Economics
Foundation, wants council planners to pay more
attention to local economies. She gave the
example of Collyhurst, a Manchester housing
estate which is being redeveloped to provide
housing for young professionals. Locals saw the
opportunity to create businesses – such as cafés
and hairdressers – to serve them, and approached
NEF and Co-operatives UK for help. But there was
no room in the plans for commercial development.
“There was an opportunity to tap into wealth but no
infrastructure to do it, and no local labour clauses
to make sure locals got jobs in construction,” said
Ms Laurence, who called for more inclusive growth.
“The challenge is how do you make that happen?
How, if you live in Collyhurst, do you pull the levers
of change to reshape the industrial strategy?”
Green MSP Andy Wightman said the UK faced
unique problems because of its structure of land
ownership. “The quadrupling of land prices over
the last quarter of a century has boosted house
prices – which means the UK is an unproductive
economy because a lot of it tied up in unproductive
assets,” he said, offering common ownership, a
land tax and stronger tenants’ rights as solutions.
CARE AND COMMUNITY
Jane Avery, from co-op development agency
CASE, said the co-op model was well-suited to the
challenges of social care. She highlighted Shepshed
Carers, a Loughborough home-care co-op set up
in 1994, with 70 employees delivering 850 hours
of home care each week. Its co-op model helps it
avoid the high staff turnover of private companies,
26 | AUGUST 2017

the movement
using different ownership structures – like
co-operatives – that’s incredibly important.”
This means it is vital for local authorities to
help communities take ownership, he said, giving
the example of Preston City Council, adding that
political support could play a “massive part in
moving the agenda forward”.
Prior to the general election, Mr Sheen wrote an
open letter to candidates, asking them to champion
social enterprises, co-ops and charities.
“The political situation has to have a fundamental
change,” he told us. “We can’t just allow things to
drift towards a more and more precarious existence
for those communities.”
There’s awareness of that at political level, he
added. “When you see the Conservative Party
talk, for example, about having workers
represented on boards, it shows an awareness
that there is an issue they need to deal with,
even if it’s just talk at the moment.
“We need to push to see things happening and
we will see real, concrete changes.”
co-op country
which erodes continuity of care. “Co-ops are an
answer,” she said. “They care about their staff.
Shepshed has grown its business through that
loyalty and offers continuity of care, which makes
for better service.”
Dr Kathrin Luddecke, who is leading the Being
Well Project programme at the Plunkett Foundation,
said her project wanted to help communities which
were thinking of creating “multi-purpose rooms”
or offering services such as nutrition and mental
health. “Our aim is that, by the end of the year, we
will have worked with ten communities or social
entrepreneurs to have ten business plans,” she
said.
p Michael Sheen in the main debating hall at Co-operative Congress
that unions can do that better than us but they
need to embrace freelancers as well. We need to
work together as trade unions sometimes don’t
understand new economy workers and we have
experience in this sector.”
Kayleigh Walsh from Outlandish, a member of
CoTech – a co-op network which shares knowledge
and resources on technology – said similar
principles could apply to the “broken” tech sector.
“The co-op movement is ageing and the nature
of work is changing,” she explained. “Young people
are among the hardest hit by unemployment, but we
are positioned in a sweet spot to give these issues
some treatment. We can bring together energy and
new qualities that draw in young people to help
build the future of the co-operative movement.”
EDUCATION
TECHNOLOGY AND WORK
John Park, assistant general secretary at Community
Union, said trade unions and co-ops need to work
together to support workers in the gig economy.
He described how co-ops such as IndyCube in
the UK and SMart in Belgium offered a network to
freelancers.
SMart’s Sarah de Heusch said: “SMart does
represent and support members and takes legal
action to defend workers’ rights ... We believe
Cilla Ross argued that the university “is in crisis” –
and that a co-operative university is a logical next
step – one made easier thanks to changes in the
regulation of higher education. This had caused
concern, “but what this environment has enabled
in a viable form is the possibility – if we wish it – of
a co-operative university in the UK.”
Colin Wilkes of the Schools Co-operative Society
said there was also a crisis in schools, thanks to
a reduced role for local authorities and forced
academy conversions.
p Dr Cilla Ross from
the Co-operative College
(top) and Rachel
Laurence from NEF
AUGUST 2017 | 27

COMMUNITY ENERGY
CONFERENCE
BY ANCA VOINEA
Regulatory and tax changes have
slowed community energy growth
p The 2017 Community
Energy Conference
explored how changes in
the regulatory landscape
have affected growth,
with keynote speakers
including Emma Bridge
(Community Energy
England) and David Bird
(Co-op Energy)
2017 COMMUNITY ENERGY CONFERENCE
ORGANISERS:
Community Energy England / Co-operative Energy
WHEN: 24 June 2017, University of Manchester
SPEAKERS INCLUDED: David Bird (CEO, Co-op
Energy), Emma Bridge (CEO, Community Energy
England), Dr Nina Skorupska, (CEO, Renewable
Energy Association), Jonathan Atkinson
(Co-founder, Carbon Coop), Peter Holbrook
(CEO, Social Enterprise UK)
After record levels of community energy activity in
2016, the sector’s growth has been stalled by the
lack of subsidies.
Community Energy England’s first State of
the Sector report shows how community energy
projects, which include a number of co-ops,
contribute to the nation’s energy supply.
Presenting the findings of the report at the
conference, Emma Bridge, chief executive of
Community Energy England, said that overall,
electricity generated by the community energy
sector had seen rapid growth but data in the report
would not have shown the full impact of cuts.
There are 222 community energy organisations
across England, Wales and Northern Ireland.
Around 44% of these are community benefit
societies and 22% are co-operatives.
According to the report, community energy
projects provide over 121 megawatts of low-carbon
energy capacity, reducing energy use across
74 communities. In total, the study found that
52 community energy organisations generated
£620,000 for their community benefit funds over
the 12 months to 2017.
One of these is the Schools’ Energy Co-operative,
launched in 2014 to provide community sources
funding for solar panel systems on schools
throughout England. As well as providing fixed
price electricity to schools at reduced rates, the
co-op also distributes its profits between the
participating schools.
To reduce financial risks, community groups
are also looking at identifying partnerships and
joint venture opportunities with private and public
entities.
IMPACTS ON GROWTH
Changes over the last two years have seen reduction
of the feed-in tariffs, removal of Enterprise
Investment Scheme (EIS), Seed Enterprise
Investment Scheme (SEIS) tax reliefs and the
removal of Renewables Obligation, all impacting
on the growth of the community energy sector.
Of the total 144 organisations surveyed for
Community Energy England’s report, 44 have a
project considered stalled or inactive. Of these,
48% said that feed-in tariff changes were a major
barrier to the project, with 34% also noting capital
finance (FiT) barriers, often as a result of a lack of
28 | AUGUST 2017

The motions
subsidy support. Other barriers mentioned include
planning issues (25%), engineering issues (11%),
lack of expertise and local opposition (7%).
Furthermore, 36 organisations said that
reinstatement of viable FiT levels or the creation
of community specific support or subsidies are
essential in enabling communities to realise their
energy objective.
“Establishing any energy industry requires
public sector commitment,” said Ms Bridge.
“The support demanded by the community
energy sector is extremely modest but it is vital. We
need fair tax relief, a planning review and full and
fair access to energy markets so we can play our full
part in the move to a decentralised energy system
and meeting the nation’s energy needs.”
In January, Community Energy England (CEE)
launched a policy subgroup of community energy
directors and experts who explore policy issues.
Speaking at a separate workshop at the conference,
chair of the subgroup, Paul Monaghan, encouraged
delegates to help shape policies that may have an
impact on the sector.
CEE has responded to a consultation launched
by the UK government in 2016 looking at evidence
for a smart, flexible energy system. Community
energy groups have the advantage of being trusted
by the public, said Mr Monaghan.
He added that, at EU level, an energy market is
emerging following the union’s energy directives
and the UK would likely be part of it even in the
context of Brexit. If the EU’s first renewable energy
directive did not mention consumer producers – or
prosumers – the second directive launched just
before Christmas creates a right for every EU citizen
to create community energy right across Europe.
CEE also plans to get involved in shaping the
government’s industrial strategy as well as the
policy around housing, said Mr Monaghan.
Interview: David Bird
Since being set up by the Midcounties Co-operative in 2010, Co-operative
Energy has gone from strength to strength, achieving sales of £295m in
2016/2017. In November 2016 it was chosen to take on 156,000 customers
from bankrupt GB Energy.
DEMONSTRATING A CO-OPERATIVE DIFFERENCE
“For the co-op movement, Co-operative Energy could really demonstrate how
things can be done differently compared to other players in the market. We
are doing something here that other countries want to learn from,” says chief
executive David Bird, who joined the organisation in January from E.on.
“We are increasing the proportion of renewable energy we get, I would like
us to go towards 100%, fairly quickly,” he told Co-operative News.
“We are also working with other co-ops and with other community groups,
and offering our range of services to them so that we can work together to
create new routes to markets and new products. For me Co-op Energy will
look very different in three to five years’ time because it will be working with
far greater range of partners.”
Mr Bird highlighted how the business is exploring the possibility of
investing in community energy assets. Community energy projects are
facing a big challenge, with a lack of subsidies for the sector. Mr Bird says
these projects tend to be smaller and need to be commercially viable on the
long term. Unfortunately there is a “stop-start” approach to investment in
community energy, rather than a long-term investment stream.
JOINED-UP THINKING
“One of the roles Co-op Energy can play is joining these elements up,” said
Mr Bird. “So we have things like User Chooser, for example, where you can
buy energy from your local community energy provider. That works well for
Co-op Energy, and also supports those community energy projects.
“We would like to do more of that and we need to look at how digital can
join up a lot more, we will be starting to put a lot of investment into digital
projects to bring whole communities together.”
But he warned that the UK’s exit from the EU would likely lead to volatility
in the wholesale market, which would be a challenge for all energy providers.
“One thing on my agenda is to look at how we support vulnerable
customers and fuel poverty customers – they will be disproportionately hit,”
he said.
AUGUST 2017 | 29

WOCCU CONFERENCE
ANCA VOINEA reports
from the World Credit
Union Conference
in Vienna
‘The original sharing economy’
More than 1,800 representatives from 58 countries
gathered at the Austria Center for the four-day
World Credit Union Conference in July.
Delegates explored three key topics: millennials,
cyber security and digital trends.
The opening ceremony, which featured a flag
parade and folk performances, saw introductions
from credit union leaders and a welcome speech by
Kurt Sturzenbecher from Vienna City Council.
Daniel Burns, chair of the World Council of
Credit Unions (WOCCU) which organised the event,
‘You have to add constant value’
Changing technology means credit unions have to work harder to hold on to
members, with new threats to customer loyalty, Robert Herjavec warned the
World Credit Union Conference.
Mr Herjavec, a Canadian millionaire known in the USA for his appearances
on Shark Tank and Dance With The Stars, told delegates about his origins in
Varaždin, Croatia, in the former Yugoslavia.
His father had been incarcerated for speaking out against the communist
regime and when Robert was eight, the family moved to Halifax, Canada. There,
they joined a Slovenian credit union, which “seemed very personal to them,”
he said. “When things are moving quickly, when you have a financial institution
that is very personal, is an advantage.”
But he said times were changing and asked credit unions how they were
adapting for a generation of young people for whom online services and
accessibility were key issues.
“You can get a lot of customers on the internet but if you have a security
breach, customers can easily leave you and go somewhere else,” he warned.
“Customer loyalty doesn’t exist any more unless it’s value added.”
He said his parents had never considered leaving their credit union – but
“that world doesn’t exist any more.”
“You have to add constant value to your show,” he said. “The opportunity
doesn’t come to you, you have to grab it.”
Mr Herjavec started his company, Herjavec Group, 13 years ago with only
two employees. The firm offers comprehensive protection to minimise cyber
attacks and threats. The business initially took five years to get to US$6m in
sales but has grown to include 300 people, achieving sales of US$200m.
discussed his credit union journey, which started
25 years ago at a credit union in Vancouver.
The movement has changed since then,
particularly after the 2008 global financial crisis,
he said. He explained how the banking crisis
had put in place two forces that were threatening
but also transforming the co-operative model
in finance.
The first challenge is the regulatory burden on
credit unions. Mr Burns said that before the crisis
credit unions used to worry about their own risks,
such as the liquidity market or credit risks – an
issue discussed at previous conferences.
The crisis has led to more regulation for credit
unions – and now the main concern is how to cope
with the barriers this has created.
“Financial success does not require regulation
to control greed but maintain stability,” he said.
“Regulation regulates risks but stifles the co-op
model. And 240 million credit union and financial
co-operative members enjoy democratic financial
inclusion around the world today. Credit unions are
the answers for non-banked, under-banked and
exploited people.”
p Robert Herjavec discusses the online generation
30 | AUGUST 2017

Mr Burns told delegates WOCCU had won a
number of arguments over the Basel Committee
agreement, as well as on other regulation.
The second risk faced by credit unions, he said,
is the development of financial technology which
can empower but also threaten credit unions. With
Using big data to keep
up with your customers
Susan Etlinger, an industry analyst with Altimeter, which focuses
on helping businesses thrive by using disruptive technologies,
gave some key tips on using big data to identify potential risks
and understand customer experience.
She gave the example of a team from IBM who worked with
French digital finance group Microcred in Senegal. Using
Microcred customer data, the team developed credit scoring
models to predict default at different stages in the loan process.
“They tried to come up with an algorithm to identify the signals
of financial health and risk factors,” said Ms Etlinger.
Mastercard is now testing technology to predict and score risk
based on a customer’s shopping and behaviour patterns.
Ms Etlinger added: “In the USA artificial intelligence is used
to humanise financial services. A system is interacting with
consumer and performs simple transactions. This technology
relies on big data. The mechanisms used for fraud prevention are
used to provide other services as well.”
But there are challenges: one key issue is that big data can
miss out important contextual information. Designed in Sweden,
Volvo’s driverless cars, which rely on big data, were unable to
detect kangaroos when used in Australia. Due to the fact that they
move differently from reindeer, the kangaroos were throwing off
the car’s detection system.
fintech companies partnering with banks, credit
unions should also look to use technology as a
leveller to bring more people on board.
“WOCCU is best positioned to facilitate exchange
of experience and knowledge. We were the original
sharing economy,” he added.
p Susan Etlinger gives advice on number crunching
p Flags at the opening
ceremony and, left,
Daniel Burns addresses
delegates
She warned that big data needed regulation, and had the power
to disenfranchise people. But data can also show where the bias
sits. “We are at a point where people, numbers, consumers,
customers can communicate with us at any time of the day. We
need to have a clarity of mission to be able to run the business
more effectively. Data is a key ingredient in that.
“Don’t let data and technology distract you from business but
it can help you answer some of the more pressing challenges,”
she added, advising credit unions to “find their kangaroo”.
AUGUST 2017 | 31

How can credit unions build a successful brand?
Credit unions are uniquely positioned to
be among the iconic brands of the future –
but they need to get better at telling their
stories, according to Simon Mainwaring
(above), founder of brand consultancy
We First and speaker at the World Credit
Union Conference.
He argued that credit unions could
be in a special place in terms of leading
in the financial industry because they
are “fundamentally purposed and
collaborative co-operatives that are not
for profit”.
“Credit unions are the original crowdsourcing
model, not Indiegogo,” he said,
adding that “every single person out there
can be an extension of your marketing
department. It’s an opportunity, as long
as they are inspired”.
He explained how the business case for
‘purpose’ was revealed by a study in the
Harvard Business Review, which found
that companies that were prioritising
purpose enjoyed a 10% growth or more.
“The most iconic brands of the future
will be those with the greatest social
impact,” said Mr Mainwaring.
“Credit unions are by definition right
to be the leaders of the financial services
because you can lead a movement. But
to do that, you need to get your story out
there.”
To do this, credit unions should
recognise that stakeholders are not
marketers, and bring their key message
down to one or two words to make it easier
for other people to talk about their brand.
Values should also lie at the heart of the
message, which needs to be “specific,
simple and consistent”.
Rather than explaining what their
organisation has been doing to address a
certain social issue, credit unions should
focus on the issue first and then explain
why it was important for them to tackle it.
“Brands must also lead the
conversations that positively shape
consumer thinking and behaviour,” he
said. “What conversation are you leading?
What conversations are you qualified
to lead? Your goal should be to shape
culture. You have all these dynamics in
your DNA: be a mission with a company,
not a company with a mission.”
HOW CAN CREDIT UNIONS SHIFT THEIR
FOCUS?
u “Reach out to customers to tell stories
of their journeys.”
u “Co-create to increase amplification”
u “Collaborate to build a community”
u “Strike partnerships with other
organisations expand reach”
HOW CAN CREDIT UNIONS BUILD A
SUCCESSFUL BRAND?
u “Make sure your defined purpose is
at the heart of everything you do, from
creating products to marketing and
working culture.”
u “Look at assets – where can you make
material change? What is your unique
opportunity to make material change?”
u “Identify what really matters to
stakeholders, it is not good enough to
just say you are a credit union.”
u “How can you scale your impact? For
example, work with charities to create a
group within your company focused on
that.”
32 | AUGUST 2017

FAIRTRADE IN TROUBLE?
Sainsbury’s is going solo – will others follow?
The decision by Sainsbury’s to introduce its ‘own
brand’ of Fairtrade has caused widespread concern
in the world of ethical trade.
Under its Fairly Traded Social Premium, which
now applies to the retailer’s Red Label and Gold
Label tea, farmers and workers will only be able to
access funds if they are successful in applying for
grants for investment following project proposals.
Over 229,000 tea producers could be affected by
these changes which, it is feared, could be just the
start of a major breakaway by the high street giant
and other retailers if the pilot project is a success.
The scheme will be housed and managed by
Sainsbury’s Foundation and has already been
dubbed ‘colonialist’ by angry smallholders, who
have made it clear they are extremely unhappy
with the changes.
In an open letter following a recent meeting
with Sainsbury’s bosses in Nairobi, tea producers
from across East and Central Africa and Southern
Africa Networks of Fairtrade Africa wrote: “We told
Sainsbury’s loud and clear: your model will bring
about disempowerment.
“We are extremely concerned about the power and
control that Sainsbury’s seeks to exert over us. We
work for, own our product and own our premium.
We see the proposed approach as an attempt to
replace the autonomous role which Fairtrade brings
and replace it with a model which no longer balances
the power between producers and buyers.”
The farmers say the scheme will strip them of
hard-earned rights and benefits attained over more
than 25 years of Fairtrade certification and have
urged Sainsbury’s to re-consider.
The Fairtrade Foundation, which has been at the
heart of the movement since its formal launch in
1992, has decided not to back the pilot project due
to fundamental concerns that it falls below their
core principles and standards.
Elsewhere, there has been a chorus of
disapproval. Co-operatives UK secretary general
Ed Mayo joined representatives of NGOs and
international aid agencies including Cafod,
Christian Aid, the Women’s Institute and several
other major ethical trading and co-operative
groups who signed a letter submitted by Oxfam GB
to the Daily Telegraph in June urging Sainsbury’s
to reconsider. An online petition against the move
gleaned 35,000 signatures in three days.
Fairtrade Foundation CEO Michael Gidney says
Sainsbury’s plan is not in line with core Fairtrade
values which enable farmers and producers to
decide for themselves how the Premium is spent –
a major factor in empowering communities.
“Sainsbury’s wants to run their own scheme and
that’s concerning for us because they have been
a big champion of Fairtrade for many years and
shown real leadership and we are proud of what
we have achieved in partnership for some of the
world’s most marginalised farmers,” he said. u
FAIRTRADE
BY SUSAN PRESS
AUGUST 2017 | 33

Why Fairtrade is
the Co-op Way
Brad Hill, Fairtrade strategy manager at the Co-op Group, tells us why the
retailer is building on its commitment to the movement...
At the Co-op Group, we believe in Fairtrade. It lies at the heart of our values
and we are proud to be Fairtrade pioneers, championing what we believe is
right. At our recent AGM, again members asked for a re-commitment and we
were delighted to provide it.
We are proud of our role in helping establish the UK as the world’s largest
consumer of Fairtrade – and we aren’t prepared to stop now. Fairtrade is
facing huge challenges and we need to work even harder in supporting
producers and convincing consumers that Fairtrade is the right way.
We’re continuing to work with suppliers and producers to strengthen our
Fairtrade offer, to encourage consumers to make the Fairtrade choice and in
turn maximise the benefits delivered back to producer communities.
Our focus remains on the core Fairtrade products which make up 85% of
sales: bananas, tea, coffee, sugar, cocoa, flowers and wine. By next May
we want the four biggest food categories to be Fairtrade in all ingredients.
p The first graduates from the school in the Fairtrade wine growing community
LaRiojana, Argentina
We are the largest convenience seller in the world for Fairtrade – but we
want to see others move forwards with us. The Co-op persuaded the industry
to follow our lead from the outset, and we feel a responsibility to continue.
With uncertainties around trade deals post Brexit, and new developments
in the Fairtrade sector, producers need our support more than ever.
The Co-op has always approached Fairtrade differently, as the start point
of the producer relationship – we have always been closely engaged in
producer projects and have often financially supported projects beyond
just the Fairtrade premium. For example, through constructing a secondary
school, providing clean water and building a clinic in our wine producer
communities in Argentina; and more recently launching a women’s
leadership school with Fairtrade Africa in Cote d’Ivoire.
And in a ground-breakng move, the Co-op become the first UK retailer to
source all its cocoa for all its own-brand products on Fairtrade terms.
We must face up to the challenges once more. Having seen many years of
positive impact and lives being changed for the good, the Co-op is continuing
to put its weight behind Fairtrade with new pioneering commitments.
We know Fairtrade has the ability to change lives and farmers and workers
continue to tell us that Fairtrade is the most effective certification scheme
for them and for Co-op the evidence is overwhelming.
What is important to us is that farmers are given a fair chance to take
responsibility for their own futures. We have clear evidence that Fairtrade
really is a different way of doing business.
u “This because the whole point of Fairtrade
is around companies being transparent and
accountable and now they are marking their own
homework. The idea of companies wanting to get
closer to problems in supply chains is absolutely
OK, but bringing it in-house works against
transparency and doesn’t provide an independent
guarantee. They are replacing the independence of
Fairtrade with something completely proprietary.”
The recent news followed more than a year of
negotiations with Sainsbury’s.
“One of our areas of real concern was the reaction
of tea farmers. We asked them to present the plans
to farmers in Kenya and Malawi and the farmers
were really unhappy,” said Mr Gidney. “The
fundamental point of difference is that, whereas
Fairtrade guarantees a social premium to groups
and they decide how it is allocated, Sainsbury’s
will control the premium and it will be given out as
grant, replacing trade with aid.
“It turns farmers from being active participants
to grant beneficiaries and it was unanimously
rejected. ‘You are going colonialist’ was one of the
one of the phrases used at the meeting.”
Other corporates including Costa, Starbucks
and McDonald’s, and producers such as Unilever,
M&S and Mondelez/Cadbury, have already broken
away and devised their own versions of Fairtrade
in recent years, creating consumer confusion and
fears that the very future of ethical trading is at risk.
But Sainsbury’s has maintained its commitments
to its premium ranges of Fairtrade-certified teas
and customers will still be able to buy Fairtrade
bananas, coffee, chocolate and flowers.
According to Michael Gidney, claims that Tesco
was to join its major rival in breaking away were
34 | AUGUST 2017

misreported in the trade press – and he remains
optimistic about the long-term future. “We have no
evidence there will be a domino effect,” he added.
“I think it is more important than ever that
people stand by farmers and if you want to make a
difference, look for the Fairtrade mark. The Co-op
Group is chief among retailers in supporting us.
“They recently announced they were converting
all of the own-brand cocoa they use to Fairtrade
– even as far as the sprinkles you put on birthday
cakes. No other company has made such a
comprehensive commitment. More than 80% of our
producers are co-ops and the Fairtrade movement
is shot through with co-operative values so it is
absolutely right they are our major champion.”
Another recent addition to the Fairtrade family is
that British institution, Gregg’s the Bakers, whose
tea, coffee and hot chocolate are all Fairtrade,
“Overall Fairtrade sales are growing,” said Mr
Gidney. “In 2016 the volume of tea sales increased
by 6% and coffee by 8%. The news from Sainsbury’s
is disappointing, but other companies are racing
forward to support us and we are beginning to see
an opening of space between leaders and laggards.”
Sainsbury’s insists its new approach will benefit
farmers but it is likely to face increasing consumer
pressure as well as the opposition from African tea
producers and international development groups.
The Fairtrade Foundation hopes it can maintain an
amicable relationship while keeping a close eye.
“We hope we can find a way of working with
Sainsbury’s,” added Mr Gidney. “We will be asking
for the results of the pilot to be made public and
everyone to judge that before moving on to other
products like coffee, bananas and sugar. The risk
would be they make a move with those other
products before they have learned from the pilot.
It needs a couple of years to go through the harvest
cycle and they should allow public consultation.”
The call for public scrutiny was echoed by Brad
Hill, Fairtrade strategy manager at the Co-op Group.
He said: “We will continue to provide our
customers with the opportunity to support farmers
through offering as wide a range of Fairtrade
products as possible.
“We share the concerns of major manufacturers
around the long-term sustainability of commodities
and farmers continue to tell us that Fairtrade is the
strongest and most appropriate sourcing model.
“As a customer-facing business, we also have
concerns around the introduction of yet more
‘ethical’ schemes, particularly ‘Fairly Traded’
which will easily be confused with Fairtrade, the
most recognised and developed of all existing
independent ethical marks.
He added: “We’re certain Sainsbury’s will
welcome further public scrutiny and we look
forward to seeing their published plans for their
tea pilot including transparent standards, delivery
plans and measurable outcomes. While we cannot
partner with them on an untested pilot as it stands
we would welcome opportunities to work with
Sainsbury’s in the future if together, we can embed
Fairtrade’s principles within their model.”
“”
‘YOU ARE GOING COLONIALIST’
WAS ONE OF THE PHRASES
USED AT THE MEETING
AUGUST 2017 | 35

International Youth Day is commemorated every year
on 12 August. The 2017 event is dedicated to celebrating
young people’s contributions to conflict prevention and
transformation as well as inclusion, social justice, and
sustainable peace – all elements of importance to the
international co-op movement.
This issue we look at how co-op retail societies and credit unions are working with junior members,
how co-operatives can provide the ethical work spaces favoured by millennials and how co-ops are
putting youth at the centre of international development – plus updates from Woodcraft Folk,
Students for Co-operation and the Group’s Co-operative Young Members Board...
RULE CHANGES
How are co-ops and credit unions
working with junior members?
JUNIOR MEMBERSHIP
BY ANCA VOINEA
With the removal of a prescriptive statutory
minimum age for co-operative membership in
2012, co-ops can now sign up members below 16
years of age – but while this means legislation
no longer prevents co-operatives from having
junior members, some societies have kept the age
requirement in their rulebooks.
A guiding document published by Co-operatives
UK in 2011 suggested co-ops carefully consider the
issue in light of their own business and examine
whether it is appropriate to have no minimum
age, or whether it would be better to replace the
previous minimum age of 16 with something lower.
The guide suggests co-ops also explore other issues
raised by having young people as members, such
as, how members meetings would be managed in
the light of child protection requirements.
“Societies need to consider to what extent the
benefits they offer to members are appropriate for
young people,” says the document.
According to the Co-operatives and Community
Benefit Societies Act of 2014 a person under the age
of 18 may be a member of a registered society unless
the society’s registered rules provide otherwise.
The law says that a person under 18 may enjoy
all the rights of a member of a registered society.
However, a person under the age of 16 may not be
a member of a registered society’s committee or a
trustee, manager or treasurer of a registered society.
So what are some of the UK’s retail societies doing
to engage with a younger membership?
THE CO-OPERATIVE GROUP
The Group accepts members under 16 if parents or
guardians apply on their behalf. Junior members
are entitled to the 5-and-1 reward scheme, but
cannot get involved in running the business, vote
at general meetings or stand for election until they
turn 16.
CENTRAL ENGLAND
Members must be over 16, and have held a £1
minimum initial share contribution in their share
account for at least six months.
SCOTMID
Membership is open to anyone aged 16 and over,
living in a community served by Scotmid; every
member must hold at least £1 in a Scotmid share
account. The number of members under 18 is
growing but represents only 5% of the membership.
MIDCOUNTIES
Di Bateman, head of membership engagement,
said: “Our membership requirement starts from age
16, so working with schools on various projects is
an important way for us to reach out to the younger
audience and teach them our values.
36 | AUGUST 2017

LESSONS FROM CREDIT UNIONS
In April 2017 there were 240,130 junior depositors across the UK, an increase
from 237,544 in the previous year.
Credit unions can set their own policy on the age at which juniors can
become full members, and can take savings deposits from those too young
to become members.
The Credit Unions Act sets out the education of members in the wise use
of money as one of the four objects of a credit union; activity with juniors
and in schools are key methods for this.
LIFESAVERS PROGRAMME
p Lincolnshire’s membership team organised summer
events for junior members, including a day at High
Ropes Adventure in Market Rasen
LINCOLNSHIRE CO-OPERATIVE
Lincolnshire Co-op engaged with young people
for twenty years through two clubs, Kool Kidz and
Activate, before launching its junior membership
scheme in October 2015. Now children aged 5-15
can become junior members, receiving their own
membership number that they keep for life.
Lincolnshire currently has 6,415 junior members,
who have their own dedicated website that tells
them about local days out and activities. They can
also nominate charities to support and receive
their own dividend card from the age of 12 so they
can collect and spend their dividend. At 16, they
automatically become members.
One of the biggest ways that Lincolnshire Coop
has engaged with junior members is through
the free fruit campaign; junior members receive
a ‘fruitastic’ fruit card, which they can present in
any Lincolnshire Co-op food store in exchange for
a piece of free fruit every day during campaigns -
which mostly coincide with school holidays.
“Junior membership is all about giving young
people a positive experience of being a member
of Lincolnshire Co-op, while providing the widest
possible range of exclusive benefits,” says member
engagement manager Richard Whittaker.
“They grow up within the society and we think
it’s a great way of engaging and interacting with as
many people as possible in the local area.”
A financial education programme, backed by credit unions, is being rolled
out to help primary schoolchildren and their families manage their money
through school savings clubs.
With research from the Money Advice Service suggesting financial habits
are formed by the age of seven, it is hoped the Lifesavers scheme will ingrain
better lifelong attitudes towards money – and see children take credit union
membership into adulthood.
The initiative is a partnership between the Archbishop of Canterbury’s
Just Finance Foundation and Young Enterprise, with financial support from
Virgin Money and the government.
Polly Taylor from Lifesavers said: “It’s a three-pronged approach –
financial education delivered in the classroom; getting parents involved in
that financial education so that it might also help them; and credit unions,
which support the school savings clubs.
“It’s about the frequency of saving rather than the amount – the child
comes in once a week to make a deposit, to promote a regular saving habit.
This scheme offers hands-on experience – it shows them how savings build
up towards a goal, backed by lessons in the classroom.
“It also promotes credit unions as an ethical, local platform for saving.”
After a pilot scheme
in 2015 and 2016, the
programme is being rolled
out across the North East,
Nottinghamshire, South East
London and West Yorkshire.
It will be extended to two
more regions next year.
There are 71 schools involved
so far, with more than
600 staff and nearly 7,000
pupils taking part, while 550
teachers from other schools
have been trained to deliver
financial education.
LANARKSHIRE CREDIT UNION
Lanarkshire Credit Union has over 7,500 junior members (aged 0-15) with
total savings of £726,000 – the largest junior membership base of any credit
union in Scotland. A child can have multiple accounts opened by parents
or grandparents on their behalf, which are combined into an adult saver
account once the child turns 16 and gets full control of it.
Lanarkshire also runs the Savvy Savers Project in 80 schools across the
region, teaching children to manage their finances and understand debt.
The project helps schools establish collection points offering the young
savers the chance to learn what it’s like to be part of a credit union. Children
can apply for positions in their school’s credit union via interview.
AUGUST 2017 | 37

INFLUENCE
SUPPORT
EMPOWER
What are
youth looking
for in ethical
business?
nnials:
d opportunities
rld
YOUTH AND ETHICAL
BUSINESS
BY ANTHONY MURRAY
Millennials believe business has a positive impact
on society, but a survey from Deloitte says they
expect more – presenting an opportunity for
co-operative businesses to engage with youth by
promoting their values and principles.
The consultancy, which interviewed those born
after 1982 and who work in large organisations
(over 100+ people), found that 76% regard business
as a positive for social impact.
Studies such as the Wales Co-operative Centre’s
recent Impact Report (see p13) demonstrate the
benefits that co-op business can deliver in this area
– which gives the movement incentive to reach out
to the nine in 10 (86%) millennials who believe the
success of a business should be measured in terms
of more than just financial performance.
The Deloitte study also found that a large majority
of employees (82%) report that their employers are
directly involved in social impact initiatives.
Across organisations of all sizes, the most
common issues with which businesses engage are
education, skills, and training; unemployment;
and health care/disease prevention, according to
the report.
However, businesses are falling short of their
potential to address the societal challenges that are
most important to millennials.
In particular, only 10% to 13% of respondents
feel their organisations are addressing income
inequality/distribution of wealth, corruption
within business or politics, or climate change and
the environment.
recorded in each and every
surveys, almost nine in 10 (86
success of a business should
s of more than just its financial
erefore, encouraging that the
cent) of millennials report their
ly involved in issues of personal
orting charities and other social
. Such involvement is more
sinesses with education, skills,
e areas of greatest focus.
Figure 7. Millennials' employers most supportive of education, employment, and health care initiatives
Percentage of employers currently addressing the following issues
Education, skills, and training
Unemployment
Health care/disease prevention
Community cohension/social involvement
Climate change/protecting the
environment/natural disasters
13%
17%
21%
27%
31%
of all sizes, the most common
sinesses engage are education,
employment; and health care/
owever, businesses are possibly
otential to address the societal
ost important to millennials. In
13 percent of respondents feel
e addressing income inequality/
, corruption within business or
ange and the environment.
Food supplies/hunger/famine
Stability of national economies
Income inequality/distribution of wealth
Corruption within business or politics
Rights of minority groups
Crime/personal safety
13%
11%
11%
10%
10%
10%
Millennial Survey
38 | AUGUST 2017
Q14. Which of the following issues, if any, does your organization help to address by getting directly involved or by supporting charities and others working in that area?

MILLENNIALS’ EMPLOYERS MOST SUPPORTIVE
OF EDUCATION, EMPLOYMENT, AND HEALTH CARE
INITIATIVES
The report found there is a strong correlation
with positive employee sentiment. For example,
millennials intend to stay longer with those
employers that engage with social issues.
Millennials are sceptical with respect to the
motivations of large, multinational businesses that
support charities or otherwise contribute to social
initiatives. When asked to judge their motivation on
a scale ranging from one (purely to improve their
reputations) to 10 (genuine desire to change things
for the better), the average score is 5.4.
Fewer than four in 10 (36%) give a score of seven
or more. The corresponding figures regarding the
motivations of their own organisations are 6.5
and 55%.
Deloitte says this suggests larger businesses need
to communicate better and involve people more
if millennials are to look more favourably upon
businesses’ corporate responsibility activities.
Those people (54%) who have been provided
with opportunities to contribute to good causes in
the workplace have much greater levels of loyalty
and a positive opinion of business behaviour. Of
those, 35% of people stay loyal to their company for
more than five years, as opposed to just 24% who
provide no charitable opportunities.
When looking at the sense of empowerment, many
millennials feel unable to exert any meaningful
influence on some of the society’s biggest
challenges; but, in the workforce, they can feel a
greater sense of control – an active participant
rather than a bystander.
Where workplace opportunities are offered,
millennials are significantly more likely to say they
can influence social equality, the environment and
the behaviour of big businesses.
ON ‘BIG ISSUES’, MILLENNIALS FEEL MORE
ACCOUNTABLE THAN INFLUENTIAL
unicate
e to
e
ve
ials
re
arities/
er
y
rwise
he
r
es in
ve a
are
on.
EMPOWERED MILLENNIALS ARE MORE
OPTIMISTIC AND LOYAL
Figure 8. Empowered * millennials more optimistic and loyal The survey also found there has been an
Charitable opportunities provided improvement in the perceptions of how business
No charitable opportunities providedconducts itself.
u 59% believe businesses focus on their own
24%
agendas rather than considering the wider society
Loyalty
– a fall of five percentage points on last year (64%)
(stay 5+ years)
u 65% says they behave in an ethical manner – an
35%
increase from 58% in 2016
u 62% agree that leaders are committed to helping
improve society – a climb from 57%, previously
u 50% believe organisations have no ambition
beyond wanting to make money – a drop from 54%
last year.
25%
Social optimism
Millennials see business as a broadly positive
(improve)
force that behaves in an increasingly responsible
46%
way, according to the report. But this generally
positive evaluation is tempered when the actual
impact large enterprises are thought to make.
Presenting the report, Deloitte said: “For
businesses seeking to attract, develop, and retain
millennial talent, this report offers a guide to
Business impact
66%
their concerns and motivations. It reinforces the
(positive)
connection made between purpose and retention
85%
while outlining how increased use of flexible
working arrangements and automation are likely
to impact millennials’ attitudes and performance.”
Q18. Has your organization enabled you to support or contribute to charities/’good causes’ while at work?
*By empowered, we mean those that feel have an influence on their workplace and society
u Read the full
report at s.coop/
deloittemillennial
AUGUST 2017 | 39

WOODCRAFT FOLK
Co-op thinking from an early age
WOODCRAFT FOLK
BY JON NOTT,
WOODCRAFT FOLK
GENERAL SECRETARY
It’s the end of the summer term and in hundreds of
school halls, community centres and parks up and
down the country, circles of children are gathering
to share their news, play games and make final
plans for their summer camp.
Six-year old Xavier is looking forward to helping
cook for 50 people, eight-year old Laykiah can’t wait
to put up the tent she’ll share with her friends. Joel,
18, is co-ordinating the national camp for 16-20
year olds in west Wales and 21-year old Hannah is
organising a series of workshops for young people
from the UK and Austria, following the journey
of campaign group Lesbians & Gays Support the
Miners from London to the Welsh Valleys, inspired
by the 2014 film Pride.
It’s all just another week in the life of Woodcraft
Folk, the co-operative children and young
people’s movement. Started by teenagers in
1925, who took their inspiration from both Ernest
Thompson Seton’s writings about woodcraft –
the skills of living in harmony with nature – and
the co-operative movement – the skills of living
in harmony with other people. From those early
days, Woodcraft Folk has combined the principles
of the Co-operative movement with ideas of youth
leadership, equality and internationalism, using
the natural world as a classroom and playground.
Over the last nine decades while those principles
have remained constant, the implementation has
developed as society has changed. The international
camps held in Brighton in 1937 and 1946 were
practical demonstrations of cross-border solidarity
and friendship in the shadow and aftermath of the
Second World War – both a challenge to fascism
and beacon of hope for a better world order. The
modern tents, mobile phones and solar-powered
cinema of CoCamp, the international camp hosted
by Woodcraft Folk in 2011, would have seemed
futuristic to those early campers, but the games,
songs and campfire discussions would have made
them feel right at home.
CoCamp was held within a fortnight of the
massacre of 77 young socialists on the Norwegian
island of Utøya and this summer, a delegation
from Woodcraft Folk will join the first youth camp
to take place on the island since the killings. Both
the challenge to extremism and the beacon of
hope remain vital parts of our education for social
change today.
Whether it is a once-in-a-lifetime experience on
an international exchange, the weekly group night
or the annual District camp, the young members
of Woodcraft Folk learn about co-operation,
campaigning and community through practical
experience rather than textbooks. Together we
create a space where adults and children are
equal, where everyone makes a contribution and
everyone’s contribution is valued. Our young
members gain confidence, skills and friendships
that will last a lifetime.
Some will put down deep roots in their own
community, some will become leaders and
inspire future generations of Woodcraft Folk, and
some will take what they have learned into the
wider co-operative movement, into campaigning
organisations or international networks. Many will
do all three.
Woodcraft Folk groups meet from Southampton
to Stirling, engaging children and young people up
to the age of 20 and volunteers of all ages. Funding
and practical support comes from across the co-op
movement, whether that’s space in a warehouse to
store camping equipment, funding to help provide
a national support infrastructure for volunteers, or
paying for places to meet.
Woodcraft Folk is proud to be a part of the
co-operative movement and proud to play our part
in raising future generations of co-operators.
40 | AUGUST 2017

How does Woodcraft Folk impact lives?
CARLY WALKER-DAWSON
Secretary general of IFM-SEI
(International Falcon Movement - Socialist Education
International, the Woodcraft Folk umbrella body)
WHEN WERE YOU IN WOODCRAFT FOLK?
I joined around the age of eight and have been involved ever
since – so into my third decade now! I’ve been a young member,
group leader, board member and international representative, so
I’ve seen the movement with many different hats.
WHAT DID YOU THINK OF IT AT THE TIME?
I didn’t really think about Woodcraft Folk in terms of the political
side or what I learnt when I was a kid, I just found it fun. It was the
chance to get outdoors, play games and make new friends. Only
when I got older did I realise how much I gained in terms of how
I view the world and the strong value-based education I gained.
WHAT IS YOUR STRONGEST WOODCRAFT FOLK MEMORY?
Global Village 2006 – a huge IFM-SEI international festival
bringing together 4,500 young people from over 50 countries. I
was elected to the steering group when I was 15 and coordinated
the evening programme for the festival. Seeing people enjoy the
programme you worked so hard on was pretty mind blowing.
WHAT IS ONE THING YOU LEARNED THAT STUCK WITH YOU?
That you can achieve so much more if you work together. We live
in a world based on competition, socially as well as economically,
and capitalism thrives on this principle. What Woodcraft Folk
taught me is that in order to create a world where inequalities are
overcome and where every person is able to live their lives freely
and in peace, we must co-operate and act in solidarity.
DID WOODCRAFT FOLK IMPACT WHO YOU ARE TODAY?
I genuinely wouldn’t be the person I am today without Woodcraft
Folk. As a shy, somewhat socially awkward child, I was able to
find my voice, was given the tools critically analyse the world and
form my own opinions, and grew able to be an active decisionmaker
in my own life. I also gained a passion for education and
youth work, which has translated into my professional life. As
secretary general of IFM-SEI, I’m giving back what I gained every
day on a global level.
LLOYD RUSSELL-MOYLE
Labour & Co-op MP for Brighton Kemptown
(Above right, with former Woody Jeremy Corbyn)
WHEN WERE YOU IN WOODCRAFT FOLK?
I joined at the age of six, so 1992, I remain a member and have
helped them out, most recently searching for a site for their next
international festival in 2020. I was most active between 1998-
2003 when I ran a Venturer Group. From 2001 to 2013 I sat on
a number of national committees including the trustee board
where I was chair, vice chair (campsites and centre) and also
lead on our relations with the International Falcon Movement –
Socialist Educational International (the international Woodcraft
Folk) where I worked in their office in Brussels for a year.
WHAT DID YOU THINK OF IT AT THE TIME?
I loved the Woodcraft Folk, it gave me so much in terms of critical
thinking and a perspective on the world which I will never forget.
Some weeks in a cold prefab I would think, ‘why I am doing this?’
But it was always worth it when summer came around, or group
nights where we took political action.
WHAT IS YOUR STRONGEST WOODCRAFT FOLK MEMORY?
Bivy camping in the local woods, making the shelter out of the
branches, lighting fires and then talking about how we wanted to
change the world around the camp fire.
WHAT IS ONE THING YOU LEARNED THAT STUCK WITH YOU?
To question authority, not for the sake of questioning, but for the
sake of making a positive change.
DID WOODCRAFT FOLK IMPACT WHO YOU ARE TODAY?
Yes, my strong belief that we inhabit this world not just to make
our own lives better, or to fit in with society, but to slowly,
sometimes gradually, but always persistently change the world
and society caring for and working with other around us as we
go along.
u Find your local group at woodcraft.org.uk/where
AUGUST 2017 | 41

DEVELOPMENT
YOUTH AND
DEVELOPMENT
BY ANCA VOINEA
Putting youth at the centre of
international development
The contribution of co-ops to development has
started to be increasingly recognised across the
world. The theme of this year’s Global Conference
of the International Co-operative Alliance is Putting
people at the centre of development. But what is
the role of youth in this process, both as project
developers and recipients?
Last year the European Commission and the
International Co-operative Alliance signed a
framework partnership agreement, with the
Commission co-funding the Alliance’s four-year
programme Co-operatives in development – peoplecentred
businesses in action.
In 2015 Cooperatives Europe, the regional
office of the Alliance, launched a platform for
its members involved in development policy
and implementation. The network includes nine
European co-operative organisations, all members
of Cooperatives Europe and leading international
co-operative development projects.
There are currently 175 active projects featured
on the Cooperatives Europe Development Platform
(CEDP). Two of these are led by Coopermondo, the
Italian Association for International Development
Cooperation.
Set up by Confcooperative (the confederation
of Italian Co-operatives), Coopermondo works
with nine other partners in projects related to
international co-operative development. Through
these initiatives it is also facilitating youth
involvement in co-operative development.
SUGAR BREAD PINEAPPLES IN TOGO
One of the projects has helped to create more than
146 agricultural co-operatives in Togo, which are
managed mainly by youth. Coopermondo has also
enabled the exchange of experience between the
co-operative movements in the two countries.
The project was financed by Coopermondo along
with six Italian co-operative banks and Federcasse,
the sectoral apex organisation for co-ops banks in
Italy. It had a total budget of €1.8m.
As part of the initiative, Coopermondo has
worked with two local partners in Togo (CTOP, the
Confederation of Agricultural Producers) and the
Ministry of Development which has a special Fund
for Promoting Youth Entrepreneurship (the FAIEJ).
One of the co-ops created is CJPPAB: Cooperative
of Young Professional Producers of Organic
Pineapple. The co-operative includes 1,018 young
members, 367 of whom are women. They produce
a special type of pineapple, pain de sucre (sugar
bread), which is 100% organic and does not need
42 | AUGUST 2017

any chemicals to grow. The co-op produces 10,000
tonnes of pineapples every year.
“After our training and assistance they are now
able to export this delicious pineapple to Italy,”
explains Camilla Carabini from Coopermondo,
who is also a member of the Young European Cooperators
Network.
“It is being marketed thanks to AGRINTESA, one
of the Italian largest consumer co-operatives, which
worked with Coopermondo to make this possible.
Young people are our main target beneficiaries in
the project,” Federcasse and the six co-operative
banks involved in the project also facilitated a loan
to two local micro finance institutions – URCLEC
and FECECAV, which provided micro-credits and
medium and long term credit to the co-operatives
trained by Coopermondo.
Around 470 agricultural managers have been
trained as part of the project and €1.2m were
granted to employees and members of co-ops
through local micro finance institutions – URCLEC
and FECECAV.
The president of the co-op, Egblogbe Kokou, said:
“We are satisfied with the work of Coopermondo: it
supports us at ethical, financial and technical level.
Our future objective is to have a solid project that
can allow us to reach national and international
markets.”
AGRICULTURE IN COLOMBIA
In Colombia, Coopermondo is leading a project
focused on three sectors: agriculture; aquaculture
and fisheries; and responsible tourism. The project
started in 2015 and covers three different regions of
the country, Cauca, Valle del Cauca and San Andrés
y Providencia.
The initiative also involves two local partners,
National Learning Service Agency of the Ministry
of Labour and Confecoop Colombia, a member u
q Colombia’s San
Andrés island
AUGUST 2017 | 43

q The Co-op College has
been working with young
people in Malawi
u of the International Co-operative Alliance for
the Americas.
After conducting a needs assessment,
Coopermondo decided to focus on empowering
youth in the Archipelago of San Andrés,
Providence and Santa Catalina, who often lack job
opportunities and get trapped into drug dealing.
The islands are one of the country’s popular
tourist destinations due to its picturesque beaches
and coral reefs. The archipelago attracts millions of
visitors every year, who also come for scuba diving
or snorkelling.
The AGRICOOP Jóvenes (Youth) project will
therefore focus on promoting social innovation
through the creation of inclusive businesses on the
island. Young co-operators who set up their own
enterprises in Italy will mentor 125 staff from the
National Service of Training (SENA) and 125 local
producers from the islands in the co-operative
enterprise model. The workshop is taking place
from 31 July to 4 August on the San Andrés Island.
In addition, ten Colombian instructors will visit
Italy and some of the country’s co-ops to familiarise
themselves with the movement.
The project will continue this year with activities
in the three sectors (agriculture, aquaculture and
fisheries, and sustainable tourism) across the
existing three regions Cauca, Valle del Cauca, San
Andrés, as well as two new regions for the project:
Huila and Tolima. In the old regions Coopermondo
will continue to provide technical assistance to
the co-ops while the new regions are undergoing
an assessment process to identify the needs of the
local communities.
TRAINING IN MALAWI
Another project listed on Cooperatives Europe’s
platform is Supporting Co-operatives in Malawi,
which is led by the Co-operative College in the UK.
The initiative started in April 2015 funded by the
Scottish government and encourages young people
to engage more in co-operative enterprises. While
90% of the country’s population live in rural areas
and face high youth unemployment, young people
do not perceive co-operatives as a viable alternative,
particularly those active in the agricultural sector.
During the first two years of the project, the
College has managed to train just over 1,200 young
people about co-operatives as a viable livelihood
option, mainly through schools and colleges. As
a result of the College’s work there, the income of
the young people involved in the project has also
increased by over 60%.
Another local partner organisation is St John of
God, a charity which works with disadvantaged
young people who have been victims of forced
marriages, prostitution and drug abuse.
Dr Sarah Alldred, projects development manager
for the Co-operative College said, “Our team in
Malawi are doing some inspirational work with
young people to harness their drive to improve
their life circumstances, through engaging in
co-operatives.
We’re also empowering them to challenge the
perception that they have no viable voice and are
lazy. Young people can often be the innovators and
ideas generators within communities and wider
society”.
36 | AUGUST 2017

p The Co-operative Young Members Board, with chair Lois McClure, fifth from left
UPDATE FROM: THE GROUP’S CO-OPERATIVE YOUNG MEMBERS BOARD
Since 2016, the Young Members’ Board has
been looking at using the new Co-op brand
and membership proposition to connect
with young people. Five members have now
served on the National Members’ Council.
Initiatives include:
• A stand at the 2016 AGM to get
feedback from young members
• Research with young Food store
colleagues to learn their needs to and test
the idea of a Young Colleague Network
• Work with the Food team on the
partnership with Sorted Food on
NowCookIt, an online school teaching
basic cookery skills to young people.
As young co-operators, we have tried to
take on too much at CYMB instead of using
resources at the Co-op. This was a learning
curve; we are changing this and will link
with the right people in the business who
can help us. A few months ago, our chief
executive Steve Murrells asked us to look
at what the Co-op Group offers young
people, and what they need – but also
at what young people can bring to the
Group. We concluded on five key themes,
one of those being around our community
proposition.
We want to work closely with the
community team to ensure the Group’s
activities and projects aren’t simply
something we do to young people – but
rather something we create together.
Imagine a programme developed with
young people, for young people, making
Co-op and Co-op membership a valued
part of young lives and in turn bringing
value back to the Co-op.
For any co-op, it’s important to remember
that when building propositions, products
or services you need to put young people
at the heart of this, so they embrace it and
want to be involved.
Lois McClure, chair
UPDATE FROM: STUDENTS FOR CO-OPERATION
Students for Cooperation (SFC) began in 2013 with the basic aim
of growing the student co-operative movement – from housing,
to food, to bikes, to co-ops working in areas we haven’t thought
of yet.
In its initial stages, SFC did not have large sums of money and
required support from larger co-ops but a £1 per member, per
week affiliation fee for our member student housing co-ops has
given us a sustainable pot of funds.
You could say our biggest achievement is pulling students
together to create a national network that can support itself and
its member co-ops from the ground up.
We are now on a stable footing with years of working together
democratically under our belts. Next, we’re looking to expand the
movement.
The focus of SFC in this last year has also been our biggest
challenge: fundraising for a national body of student housing
co-ops. This will be the key to unlocking investment for student
housing co-ops, which lack the track record needed to secure
finance, and provide a rigorous model of sustainable growth.
So far we have created a set of model rules for student housing
co-ops which will go to the FCA for approval; held a conference at
Birmingham Student Housing Co-operative; and Nathan Bower-
Bir and I attended Co-operative Congress for the Reimagining
Housing session. We are mindful to engage with the wider sector
and take our commitment to principle 6 (co-operation among cooperatives
) very passionately.
Finally, a secondary role of SFC is to see student co-operators
move on to create non-student co-ps or work in the wider
movement after graduation. This has happened in Birmingham,
with the creation of a co-operative bike shop and new housing
co-operative, and in Edinburgh with the offshoot of a brewing
co-op and other ventures.
Scott Jennings, member
AUGUST 2017 | 45

NEW DEAL FOR THE CO-OP BANK
CO-OP BANK
BY MILES HADFIELD
The Co-operative Bank has been taken off sale after
a £700m rescue deal but issues surrounding its use
of the co-operative name are unresolved.
The deal will cut the Co-op Group’s stake from
20% to just 1%, leading to renewed calls for the
Bank to drop the “co-operative” name.
But sector body Co-operatives UK has said the
Bank can continue to use the name. It says the use
of term “co-operative” where a business is subject
to a regularly monitored compliance agreement,
based on formal criteria set in 2015.
These state that an organisation must:
u Exist to promote co-op activity and be recognised
by the co-op movement in relation to this
u Operate in line with co-op values, and
not discredit the co-op business model
u Not use the term in ways that serve to mislead
others as to whether it is a co-operative.
Shaun Fensom, from the Save Our Bank
Campaign – a customer union formed to hold the
Bank to its ethical policy and return it to majority
co-operative control – thinks the Bank’s customers
can make it more meaningfully ‘co-op’ than ever.
“The Bank’s most valuable asset is its loyal
customer base,” he said. “This is a power that we
can actively wield if we are organised.
“Member ownership is a fundamental co-op
principle. So is member control. While Co-op Group
members exercised ownership of a sort when the
Bank was owned by the Group, they exercised
minimal control. By organising in the customer union
our members are taking a step towards making the
Bank into a real co-op, which it never was.”
He added: “Maintaining customer loyalty means
maintaining the Bank’s ethics, its links with the
movement and probably its name.
“It is up to the members of the customer union
whether to approve any deal. If they decide to
work with the Bank then we will be calling on cooperators
to join us and use crowd power to bring
the Bank fully back into the fold.”
Paul Ellis, CEO of Ecology Building Society, said:
“Ecology has been a long standing customer of the
Co-op Bank so we and our members have followed
developments closely. We’re pleased that the Bank
will be maintained as an independent entity and
there won’t be any further concentration of clearing
facilities among the big banks.
“It’s now up to the Bank to publicly demonstrate
that it has earned the right to continue using the coop
name by ensuring there are safeguards to ensure
a genuine commitment to ethical values.”
In terms of international precedent for use of
the co-op name, Charles Gould, director general of
the International Co-operative Alliance, said rules
varied from country to country.
He added: “There are many organisations in the
co-op family that have ‘co-operative’ in their name
without being a co-operative. Witness the Alliance,
an international non-profit association.”
46 | AUGUST 2017

Paul Gosling: Hopeful
signs for investors as
customers stay loyal
Through this latest deal, £700m of additional tier one capital will
be reported by the Bank. This comprises £250m of new equity,
plus around £443m of recapitalisation through institutions’
bonds being converted to shares. Smaller investors – those
holding less than £100,000 each – will be given cash at a rate of
45p per £1 held in bonds. The arrangement has been approved
by the Prudential Regulation Authority, writes Paul Gosling.
A sticking point hampering negotiations for several months
was the treatment of pension liabilities. Until now the Group
and the Bank had a shared pension scheme. The Bank’s pension
liabilities – which increased significantly through the takeover
of Britannia Building Society – are to be separated from those
of the Group. Pension scheme trustees, the Group and the
Bank have now agreed how to split the pension fund’s assets
and liabilities, with separate pension schemes established for
the Group and Bank. Around 21% of the existing joint scheme’s
assets and liabilities will go to the Bank’s pension scheme.
But this leaves the Bank’s pension scheme in deficit. To
address this, the Bank will contribute £100m over the next 10
years, through annual payments of £12.5m per year for five years
and £7.5m for the following five years. It will also provide upfront
collateral for the pension scheme of £216m.
My understanding is that this arrangement does not have any
negative implication for the Group’s balance sheet. But if the
Bank’s pension scheme performs badly, there could be a call on
the Group for additional contributions. The Group said the deal
provided assurance for the Bank’s long-term future, including
“agreement on the future structure of the shared Co-op Pension
Scheme ... [this] provides security for scheme members”.
The Bank’s stated commitment to ethical values is unaffected by
its separation from the Group. Bank chair Dennis Holt said: “The
board is pleased to confirm this proposal for a recapitalisation
which will mean that the Co-operative Bank can continue as a
viable stand-alone entity, with values and ethics at its heart.
It is a great outcome for our customers. Our investors share our
commitment to building our distinctive ethical franchise and see
strong future growth potential for the Co-operative Bank.”
Liam Coleman, the Bank’s chief executive, was quoted by the
Financial Times as saying: “Our ambition is to return the Bank to
full capital strength and safeguard our ethical franchise.”
Institutional investors have formed themselves into an ‘ad hoc
committee’, or AHC. A representative of these investors said:
“We have supported the turnaround of the Co-operative Bank
since 2013 and this further investment will provide the Bank with
the capital needed to realise its potential as the UK’s leading
ethical bank.”
Those institutional investors are led by hedge funds which
have had to decide whether to invest more in the hope of
recouping previous losses, or else to give up the Bank as a
mistaken investment.
They will have been given hope by the Bank’s retention of the
vast majority of its customers despite its problems – in recent
weeks Triodos Bank launched an ‘ethical current account’ in the
explicit hope of luring away customers from the Co-op Bank.
p Triodos Bank has launched an ‘ethical current account’ – will it lure
customers away from the Co-op Bank? (Image: Wouter Hagens)
Ian Snaith: How lawful is
the ‘Co-operative’ name?
When, in 2013, rescue deal for the Bank moved it from being a
wholly owned plc subsidiary of the Co-operative Group Ltd to 70%
investor ownership, with a minority 30% Co-op representation
on its board, it posed a legal risk to its use of the “Co-operative”
name, writes Ian Snaith, consultant solicitor DWF LLP.
And now the new recapitalisation, as well as cutting the
Group’s stake to 1%, means no Group representation on the
Bank board, although the Bank will maintain involvement in the
Group’s membership scheme, and the two organisations will
share “branding co-existence principles” and liaise on the use of
trademarks and intellectual property. So how does this affect the
Bank’s use of the Co-operative name?
Co-operatives UK welcomed the new recapitalisation and
agrees to the Bank’s use of the name, subject to its compliance
agreement. The Bank is the main banker to co-operative
organisations and provided £1m from 2016 to fund Co-operatives
UK’s Hive co-op development service.
The Bank’s customer union notes the Bank’s ethical policy isn’t
threatened by the recapitalisation but will continue to press for
the preservation of the Bank’s co-op values if the deal is agreed.
The Bank mentions the legal, financial and reputational risk
of losing the use of the “Co-operative” name in its 2016 annual
report. The report states that the Bank owns the “Co-operative
Bank” trademark but acknowledges that “a loss of support from
key stakeholders for the Bank’s continued use of the term ‘cooperative’
may result in a risk that [the] authorities could look to
exercise their powers.”
The Bank’s commitment to embedding co-operative values
and ethics in its articles of association and its Ethical Policy is
one way of managing that risk. But changes in Bank ownership or
capital structure present a risk to continued stakeholder support
and so a danger of the legal uncertainty discussed in 2013.
The difficulties faced by this historically Co-operative-owned
bank have resulted in imaginative manoeuvres by Co-operatives
UK and the Group to salvage as much as possible for co-ops and
customers from a difficult situation. They’ve used the leverage
that market based capitalism provides. That continues at present
but it remains to be seen how the story will end for the Bank’s
survival in the marketplace and the co-operative values it
currently promotes.
AUGUST 2017 | 47

MEMBER PIONEERS:
Connecting communities
p Rebecca Birkbeck,
director of community
engagement at the
Co-op Group
The Co-op Group is taking its commitment to local
communities seriously – by recruiting its first
Member Pioneers to “help make a difference to the
people and places in communities across the UK”.
The aim is for Member Pioneers to connect
people within their local community, bringing them
together to start conversations, identify pressing
issues and use the organisation’s reach and assets
to make positive changes.
Who are Member Pioneers, and what will they do?
WHAT IS A MEMBER PIONEER?
Member Pioneers ‘make connections in the communities around
our food stores and funeral homes,’ says the Group, helping to get
people talking about community issues and solutions – and then
making them happen.
HOW OFTEN DO THEY WORK?
The Group anticipates that each Member Pioneer will work between
8 and 32 hours per month, receiving an hourly rate of reward of £7.61.
HOW ARE THEY SUPPORTED?
Member Pioneers receive a full induction session and training, and
have access to online resources. They can also connect with other
Member Pioneers and receive support from the Group’s co-op
engagement advisors.
WHO CAN APPLY?
The Group is looking for good listeners who are organised and able to
motivate people – and who are confident using social media to share
success stories. Find out more at coop.co.uk/memberpioneer
Leading the programme is Rebecca Birkbeck,
director of community engagement, who recently
joined the organisation from the Join In Trust,
where as CEO she was responsible for building on
the social legacy of London 2012 by getting more
volunteers into local sport.
“I’m enthused by all things community and
excited to be leading on community activation at
the Co-op,” she says.
“Community is central to the Co-op’s purpose
– it’s what makes us different. We are putting the
community at the heart of what we do, responding
to what matters most to our members.”
The Member Pioneer scheme builds on the
Group’s membership proposition, relaunched last
year, which sees members get 5% back on ownbrand
purchases, with a further 1% going into a
Local Community Fund to benefit local causes. In
April the Group paid out £9m to over 4,000 good
causes as a result of the first round of the scheme.
The Group recruited 56 Member Pioneers earlier
this year in 56 communities – and is opening
applications again on 10 August, covering a further
450 regions.
“The role of a Member Pioneer is to bring together
other Co-op members to create a Local Community
Plan – looking at how to meet local needs and then
make it happen,” adds Ms Birkbeck.
“Our first Member Pioneers are already making
a great impact in their local communities. These
Pioneers, together with the Local Community Fund,
will help to build relationships with causes that are
meaningful to their local community, achieving
local relevance and national significance.”
48 | AUGUST 2017

JUSTINE RAE, CHESTER
WHY DID YOU APPLY TO BE A MEMBER PIONEER?
I’ve always enjoyed working in the community. When I heard about
the role with Co-op I jumped at the chance because I appreciate
its ethics and values. Now I’m able to do my community work with
extra support, making it much easier to connect with people.
HOW WOULD YOU DESCRIBE WHAT YOU DO?
When I’m describing to people what a Member Pioneer is I say
that my role is to go beyond the money local causes receive
through Co-op’s Local Community Fund. I want to help showcase
the work our local causes are doing and get colleagues involved
too.
WHAT HAVE YOU BEEN DOING SO FAR?
There’s a famously independent high street in Hoole, near
Chester. It’s supported and celebrated by a group of volunteers
called Notting Hoole. In the past they’ve protested against the
arrival of bigger retailers so I felt it was important to get them
onside before the opening of a new Co-op store. Funnily enough
I met Sue Mason, the chair of Notting Hoole, completely by
accident. We were both attending a fundraiser at Eaton Hall in
Ecclestone. Hopefully now we have that connection we can work
together so that the store is embraced by the people of Hoole.
IS THERE ONE GROUP OF PEOPLE YOU WOULD PARTICULARLY
LIKE TO WORK WITH MORE?
I’m only 23 and haven’t met that many young people doing this
kind of thing in my area. For me, spreading the word through
social media is really important. I’ve set up a Twitter account
[@JustineRae94] so I’ll be able to showcase my stuff to young
people. I’m hoping to get more and more followers in the next
few months.
ABIMBOLA OYENIYAN, YORK
WHY DID YOU APPLY TO BE A MEMBER PIONEER?
Being involved in the community comes naturally to me. It’s
what I’ve always wanted to do. Getting this opportunity to build
bridges between the Co-op and my local community is amazing.
HOW WOULD YOU DESCRIBE WHAT YOU DO?
I’m here to do my best to revive community spirit and make
people understand that helping one another can make life easier.
Being a Member Pioneer has given me more of a platform.
WHAT HAVE YOU BEEN DOING SO FAR?
I know that the Co-op wants to do more to support and educate
young people – with two young children, it’s a passion for me.
I’ve become an official volunteer at my sons’ school and am
planning to go into other schools to talk about Fairtrade. I’m also
working with two other mums to get Chapelfields Community
Garden off the ground – it’s an ideal place for local children to
learn about growing fruit and vegetables and educate them about
where food comes from. I’ve been in touch with Edible York, The
Woodland Adventure Company and the Woodcraft Folk, a cooperative
that’s been involved with our Co-op for a long time. We
want to get as many people to work with us, then we can start to
bring the community in.
IS THERE ONE GROUP OF PEOPLE YOU WOULD PARTICULARLY
LIKE TO WORK WITH MORE?
Chatting to Elsie, an elderly lady I met in our local store, about
how the Co-op was the centre of her family’s life growing up,
made me determined to do more to support older people. I’ve
already been in touch with our Funeralcare business to see if they
can work with the local care homes to better support dementia
sufferers and their carers.
Find out more and apply at coop.co.uk/memberpioneer
p Justine Rae (far left) is one of
the youngest Member Pioneers
at 23; Abimbola Oyeniyan
(top right) at the Chapelfields
Community Garden
t Jack Bamber (Preston)
and Geoff Toogood (Wigton,
Aspatria and Dalston) are two
more of the original 56 Member
Pioneers
AUGUST 2017 | 49

DIARY
CLOCKWISE FROM LEFT
The Co-op Party holds its AGM and annual
conference in London, 13-15 Oct: Gavin
Shuker MP will be among speakers at
A Co-op Region: Cambridge on 16 Sep;
UKSCS debates the ideas of Laurence
Gronlund in Newcastle on 1-2 Sep; and
Cllr Sharon Taylor, chair of the Co-op
Councils Innovation Network, which
holds its AGM in Oldham on 5-6 Sep
1-2 Sep: UKSCS Conference
The UK Society for Co-operative Studies
marks its 50th anniversary with a look
at the Co-operative Commonwealth – an
idea developed by 19th century activist
Laurence Gronlund.
WHERE: Newcastle Business School
INFO: ukscs.coop
5-6 Sep: Co-operative Councils Innovation
Network AGM and Co-operative Showcase
Meeting of the co-op council movement.
WHERE: Oldham, venue tbc
INFO: www.councils.coop/
9 Sep-20 Nov: Pioneering the future
The Co-op Party marks its centenary with
this exhibition on its history.
WHERE: People’s History Museum,
Manchester
INFO: events@party.coop
16 Sep: A Co-op Region: Cambridge
Free event celebrating co-ops in the East
of England and the centenary of the Co-op
Party. Speakers include former Labour/
Co-op MP Gavin Shuker.
WHERE: Arbury Community Centre,
Campkin Road, Cambridge CB4 2LD
INFO: contact@cooperatives-east.coop
4-6 Oct: Co-op Impact Conference 2017
Inaugural event from the National
Cooperative Business Association CLUSA
International to bring together co-op
sectors to build on their impact.
WHERE: Alexandria, VA, USA
INFO: s.coop/25vvq
13-15 Oct: Co-op Party Annual Conference
The Party holds its AGM on 13 October
at Central Hall, Westminster, followed by
a rally to Parliament Square at 5pm, to
celebrate the Party’s centenary. The
two-day conference follows at Tower
Bridge on 14-15th.
WHERE: Tower Bridge, London
INFO: party.coop/event/conference-2017
19-22 Oct: Social Cooperatives
International School 2017
Open to social co-op managers from
around the world.
WHERE: Naples, Italy
INFO: www.federsolidarieta.
confcooperative.it/
20-21 Oct: Community Woodlands and
Making Local Woods Work Conference
With keynote speakers, presentations
from woodland groups, site visits and
workshops on woodfuel, adding value to
timber, social finance, education, health
and volunteering. Friday’s events begin
with a networking lunch and are followed
by a dinner and ceilidh.
WHERE: Westerwood Hotel, Cumbernauld
INFO: s.coop/25vvs
1-3 Nov: Executive Education Course
Professional development course on
co-op management, for senior managers,
CEOs and board members. Organised by
St Mary’s University, Halifax, and hosted
by VanCity Credit Union.
WHERE: Vancouver, Canada
INFO: s.coop/25vvu
LOOKING AHEAD
11 Nov: 12th ICA-AP Regional Cooperative
Research Conference (Seoul, S Korea)
14-15 Nov: Locality Convention 2017
(Manchester)
14-17 Nov: ICA Global Conference and
General Assembly (Malaysia)
16 Nov: Practitioners Forum 2017
(Manchester)
50 | AUGUST 2017

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