Co-op News (August 2019)

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POLITICS MPs praise co-ops and mutuals in session for Co-op Fortnight MPs praised the contribution of co-ops and mutuals to the UK economy in a recent Commons session to mark Co-op Fortnight. And they passed a motion brought by Labour/Co-op MP Gareth Thomas: “That this House welcomes the contribution of co-operative and mutual businesses to the UK economy; notes that they provide substantial jobs in Britain, generate significant tax revenues and involve consumers and employees in decision making; and calls on the government to review what further steps it can take to help grow that sector.” This included a call for a more favourable financial and regulatory climate for credit unions and start-ups, and support for community land trusts to address the housing crisis. Co-op, Labour, Conservative, SNP and DUP MPs made supportive remarks about various sectors of the movement, and there was a salute to its radicalism from Labour/Co-op MP Barry Sheerman who said: “Co-ops are, in fact, dangerous. They undermine the existing order, and empower people to take charge of their own lives. They are dangerous, and they should be.” Conservative Steve Baker noted a global “lack of faith” in institutions and said there was a need to recapture some of the radicalism of the co-op movement: “It is about free individuals in society standing up not only for themselves but against entrenched interests and entrenched power better to serve their families and their communities.” He added that, as a Conservative, he had “something to learn from the traditions of the left”. MPs also highlighted efforts to deliver support for co-ops in Wales, with Labour/ Co-op MP Stephen Doughty pointing to the new £3m round of funding for Social Business Wales; and in various cities, with Labour/Co-op MP Gareth Snell praising the Co-operative Councils Innovation Network, and his colleague Luke Pollard detailing community wealth building efforts in Plymouth, including the development of a regional bank. And Labour/Co-op MP Jim McMahon highlighted last month’s launch of Co-op Party manifesto for Northern Ireland. In response to the debate, economic secretary to the Treasury John Glen said the government is committed to ensuring capital requirements do not unfairly impact on smaller lenders like building societies, and said 15 credit unions have been selected for a two-year pilot of a new prize-linked savings scheme. The government is also conducting a comprehensive review of social investment tax relief. And in July Treasury officials hosted a mutuals workshop with Co-operatives UK to investigate the barriers faced by mutuals. POLITICS Joe Fortune takes helm of the Co-op Party Joe Fortune, the Co-op Party’s national political and policy manager, has been promoted to the role of general secretary. He takes over from Claire McCarthy, who is leaving the organisation after four years to work in local government. Mr Fortune has been with the Party since 2010. From 2014-15, he served as a political advisor to the shadow secretary of state for transport. He has been an executive member of the Socialist Environment and Resources Association (Sera), the only environmental group affiliated to the Labour Party, since 2008. He has a degree in politics and parliamentary studies from the University of Leeds. After graduating he joined the secretariat of the All Party Parliamentary Rail Group. As the party’s transport expert, he has played a key role in campaigning and developing the party’s policy proposals for mutual models for rail and bus services. Mr Fortune said he was “greatly looking forward” to the role, which he will be taking up this month. “Claire McCarthy has been a fantastic general secretary and a great colleague to the whole team at the Party – we all wish her well,” he said. “It’s an exciting time for the Party and for the co-operative movement, we have huge opportunities ahead of us. I look forward to working with our new chair, NEC, staff, the entire Party and movement in the new role.” In June the Party’s executive committee elected Anna Turley as chair. She replaces MP Gareth Thomas, who stood down after nearly 20 years. p Co-op Party secretary general Joe Fortune Ed Mayo, secretary general of sector body Co-operatives UK, said: “Joe is a wonderful appointment. He knows parliamentary politics backwards and has a long and deep commitment to co-operative action. The Co-op Party is in very good hands.” u Interview, Claire McCarthy, p23-24 8 | AUGUST 2019
CO-OP GROUP Co-op Food is a top supermarket for customer satisfaction The latest UK Customer Satisfaction Index (UKCSI) reveals Co-op Food as the top bricks and mortar food retailer for customer service. Only online supermarket Ocado was ranked above the Group in the index, which rates customer satisfaction across 13 sectors, incorporating the views of 10,000 consumers and over 240 brands. Published by the Institute of Customer Service (ICS), the index takes into account five factors: experience with organisations; complaint handling; perceptions of customer ethos; emotional connection; and ethical behaviour. The index praised the Group for making improvements in customer satisfaction and convenience sales growth, where it has enjoyed five years of consecutive likefor-like growth. Co-op Food achieved sales growth of 4.5% in 2019, outperforming the sector average of 2.0%. According to the index, Co-op Food is the most improved supermarket in the food retail sector, despite the average food retail sector customer satisfaction falling year on year by 1.1 points, to 80.1. The report adds that in January 2019, Co-op Food exceeded the sector average customer satisfaction for the first time. A total of 11 companies in food retail received a UKCSI score but only Co-op Food improved its score (by 2.5 points) compared to a year ago. Chris Whitfield, chief operating officer, Co-op Food, said: “Our ambition is for all of our stores to be at the heart of local life, connecting communities, creating value locally and bringing people together. Our members and customers expect us to deliver what they want, need and care about – and we are dedicated to doing just that. We are delighted with the findings, and while there is always more that needs to be done, they illustrate outcomes of continued investment in our people, product development, store improvement, supplier relationships and communities.” Joanna Causon, CEO of the ICS, said that in a highly competitive sector where service levels are on the whole declining, focusing on delivering a brilliant end-toend experience is increasingly important. She added: “Our previous research shows a correlation between sustained levels of high customer satisfaction and increased sales, market share and repeat custom. Co-op Food is showing the benefits of getting service right for customers – with a strong performance in the UK Customer Service Index also being reflected in its financial performance.” The Co-op Group was also one of the top rated organisations for ethics, along with employee-owned John Lewis. The index looked at the reputation, openness and transparency and the extent to which an organisation is deemed to “do the right thing”. The way we look is changing. But what we stand for is staying the same. We deliver vegetarian, natural and responsibly-sourced products to businesses and communities across the UK, and worldwide. And as a worker-owned, equal pay co-op, we’ve been doing it differently for more than 40 years. We are Suma. AUGUST 2019 | 9
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Page 3 and 4: Why is co-operative culture importa
Page 5 and 6: NEWS RETAIL Campaign urges UK gover
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Page 11 and 12: DEVELOPMENT EU puts £3m into Welsh
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Page 15 and 16: REI enters the newspaper trade to s
Page 17 and 18: SWEDEN New governance code for co-o
Page 19 and 20: USA A Green New Deal ‘can help el
Page 21 and 22: YOUR VIEWS DEFENCE OF CLAIRE MCCART
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Page 27 and 28: Is there a need to redefine afforda
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Page 51 and 52: The Fall of the Ethical Bank: how a

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