Co-op News - May 2020
Weathering the storm - how are co-operative workers coping at the frontline of the coronavirus pandemic? This issue we report on the credit union, retail and agriculture sectors, interview Midcounties' CEO Phil Ponsonby and hear from the International Co-operative Alliance's Balu Iyer.
Weathering the storm - how are co-operative workers coping at the frontline of the coronavirus pandemic? This issue we report on the credit union, retail and agriculture sectors, interview Midcounties' CEO Phil Ponsonby and hear from the International Co-operative Alliance's Balu Iyer.
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MAY <strong>2020</strong><br />
WEATHERING<br />
THE STORM<br />
Workers at the<br />
frontline of<br />
the crisis<br />
Plus … Agri co-<strong>op</strong>s<br />
feeding the nations ...<br />
the care sector during<br />
coronavirus ... Balu Iyer<br />
on the need for global<br />
co-<strong>op</strong>eration<br />
ISSN 0009-9821<br />
9 770009 982010<br />
01<br />
£4.20<br />
www.thenews.co<strong>op</strong>
9 7 7<br />
news<br />
news Issue #7312 OCTOBER 2019<br />
<strong>Co</strong>nnecting, championing, cha lenging<br />
OCTOBER 2019<br />
SUSTAINABLE<br />
DEVELOPMENT<br />
How are co-<strong>op</strong>s<br />
helping to make<br />
the SDGs a reality?<br />
Plus … ICA Global<br />
<strong>Co</strong>nference preview ...<br />
Meet Fairtrade Foundation’s<br />
Michael Gidney ... positive<br />
impacts of the Preston Model<br />
ISSN 0009-9821<br />
01<br />
9 7 7 0 0 0 9 9 8 2 0 1 0<br />
www.thenews.co<strong>op</strong><br />
£4.20<br />
MAY 2019 <strong>Co</strong>nnecting, championing, cha lenging<br />
www<br />
news<br />
Issue #7313<br />
NOVEMBER 2019<br />
CO-OPS FOR<br />
DEVELOPMENT<br />
igali 2019:<br />
rning how to<br />
a better world<br />
candal affecting<br />
ks ... the<br />
merica’s<br />
co-<strong>op</strong><br />
news Issue #7310 AUGUST 2019<br />
<strong>Co</strong>nnecting, championing, cha lenging<br />
ISSN 0009-9821<br />
9 7 7 0 0 0 9 9 8 2 0 1 0<br />
01<br />
£4.20<br />
AUGUST 2019<br />
CO-OP CULTURE<br />
What is it –<br />
and why does<br />
it matter?<br />
Plus … 100 years<br />
of the Channel Islands<br />
<strong>Co</strong>-<strong>op</strong>erative ... <strong>Co</strong><strong>op</strong><br />
Exchange: addressing<br />
the issue of capital<br />
www.thenews.co<strong>op</strong><br />
news Issue #7305 MARCH 2019<br />
<strong>Co</strong>nnecting, championing, cha lenging<br />
MARCH 2019<br />
SO, WHAT<br />
HAPPENS NEXT?<br />
<strong>Co</strong>-<strong>op</strong>erating for<br />
a better Brexit<br />
Plus ... A new generation<br />
of pioneers ... Meet Heart<br />
of England’s Ali Kurji ...<br />
and whatever happened to<br />
the International Summit?<br />
ISSN 0009-9821<br />
01<br />
9 7 7 0 0 0 9 9 8 2 0 1 0<br />
www.thenews.co<strong>op</strong><br />
£4.20<br />
news Issue #7309 JULY 2019<br />
<strong>Co</strong><br />
ISSN 0009-9821<br />
9 7 7 0 0 0 9 9 8 2 0 1 0<br />
01<br />
£4.20<br />
JULY 2019<br />
DEVELOPMENT<br />
How can we grow<br />
the global co-<strong>op</strong><br />
community?<br />
Plus … a manifesto<br />
for Northern Ireland<br />
… Stephen R McDow II<br />
on US devel<strong>op</strong>ment …<br />
<strong>Co</strong>-<strong>op</strong> <strong>Co</strong>ngress report<br />
www.thenews.co<strong>op</strong><br />
Issue #7306<br />
news<br />
APRIL 2019<br />
EDUCATION<br />
news Issue #7311 SEPTEMBER 2019<br />
<strong>Co</strong>nnecting, championing, cha lenging<br />
SEPTEMBER 2019<br />
AGRICULTURE<br />
Can co-<strong>op</strong>s reduce<br />
the burden down<br />
on on the the farm? farm?<br />
Plus … Preview of the<br />
ICA Global <strong>Co</strong>nference ...<br />
Why co-<strong>op</strong>s should be like<br />
pirates ... and pr<strong>op</strong>osals<br />
for Irish legal reform<br />
ISSN 0009-9821<br />
01<br />
9 7 7 0 0 0 9 9 8 2 0 1 0<br />
www.thenews.co<strong>op</strong><br />
AGRICULTURE:<br />
MICRO TO MACRO<br />
£4.20<br />
news Issue #7304 FEBRUARY 2019<br />
<strong>Co</strong>nnecting, championing, challenging<br />
FEBRUARY 2019<br />
MODERN RETAIL<br />
REDRAWN<br />
Where do co-<strong>op</strong>s<br />
fit in the picture?<br />
Plus ... <strong>Co</strong>mmunity<br />
finance in Eur<strong>op</strong>e ... new<br />
Pioneers in Rochdale ...<br />
and the lead up to Brexit<br />
ISSN 0009-9821<br />
01<br />
9 7 7 0 0 0 9 9 8 2 0 1 0<br />
www.thenews.co<strong>op</strong><br />
£4.20<br />
JANUARY 2019 <strong>Co</strong>nnecting, championing, cha lenging<br />
FOR ALL<br />
Learning for a<br />
co-<strong>op</strong>erative life<br />
Plus ... <strong>Co</strong>-<strong>op</strong>erative<br />
Retail <strong>Co</strong>nference up<br />
... Abcul’s annual<br />
Q&A with Gillia<br />
ISSN 0009-98
<strong>Co</strong>vid-19, solidarity and<br />
co-<strong>op</strong>erative identity<br />
CONNECTING, CHAMPIONING AND<br />
CHALLENGING THE GLOBAL CO-OP<br />
MOVEMENT SINCE 1871<br />
Holyoake House, Hanover Street,<br />
Manchester M60 0AS<br />
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EXECUTIVE EDITOR<br />
Rebecca Harvey<br />
rebecca@thenews.co<strong>op</strong><br />
INTERNATIONAL EDITOR<br />
Anca Voinea | anca@thenews.co<strong>op</strong><br />
DIGITAL EDITOR<br />
Miles Hadfield | miles@thenews.co<strong>op</strong><br />
DESIGN<br />
Keir Mucklestone-Barnett<br />
ART & DESIGN PLACEMENT<br />
Owais Qazi<br />
INTERNATIONAL OUTREACH OFFICER<br />
Elaine Dean<br />
DIRECTORS<br />
Barbara Rainford (chair), David Paterson<br />
(vice-chair), Sofygil Crew, Gavin<br />
Ewing, Tim Hartley, Ray Henderson,<br />
Gillian Lonergan and Beverley Perkins.<br />
Secretary: Richard Bickle<br />
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@co<strong>op</strong>news<br />
co<strong>op</strong>erativenews<br />
<strong>Co</strong>vid-19 has taught the world a lesson about the importance of solidarity and<br />
co-<strong>op</strong>eration, be it between different states, communities or enterprises. These values<br />
are ingrained in the DNA of co-<strong>op</strong>eratives, which makes the sector more resilient and<br />
better equipped to respond to crises.<br />
In this issue we look at just some of the inspiring actions taken by co-<strong>op</strong>s in the UK and<br />
abroad in response to <strong>Co</strong>vid-19. We also explore the challenges co-<strong>op</strong>s across different<br />
sectors are facing and hear from experts and leaders from the movement.<br />
There are many positive stories to tell, from a French agricultural co-<strong>op</strong> starting to<br />
produce hand sanitiser for local hospitals to Fairtrade-certified co-<strong>op</strong> United Nilgiri Tea<br />
Estates (UNITEA) in India using the Fairtrade Premium to distribute food supplies to<br />
members (p28-31).<br />
Businesses, including co-<strong>op</strong>s, have also had to make difficult decisions. In the care<br />
sector the lockdown resulted in fewer pe<strong>op</strong>le looking for support from care providers.<br />
Equal Care, a co-<strong>op</strong> from Calder Valley, West Yorkshire, had to put some employees on<br />
furlough. This was done with full consent, a decision made by the whole team using the<br />
sociocracy model of governance (p32-33).<br />
<strong>Co</strong>vid-19 has increased the appetite for new ways of working and organising, including<br />
worker co-<strong>op</strong>eratives and employee-owned businesses. The model is explored in depth<br />
in our report on the latest More Than a Sh<strong>op</strong> podcast, which featured members of Suma,<br />
the Leeds Bread <strong>Co</strong>-<strong>op</strong> and <strong>Co</strong>-<strong>op</strong>eratives UK’s James Wright (p38-39).<br />
Rebecca Harvey hears about some of the challenges posed by <strong>Co</strong>vid-19 to co-<strong>op</strong>erative<br />
retailers (p34-35) and speaks with <strong>Co</strong>-<strong>op</strong> Midcounties Group CEO Phil Ponsonby about<br />
how the society reacted to the <strong>Co</strong>vid-19 situation as it unfolded – and how it has been<br />
supporting colleagues across its diverse range of businesses (p36-37).<br />
Economics journalist Paul Gosling examines the impact of <strong>Co</strong>vid-19 on financial<br />
co-<strong>op</strong>s and building societies (p42-43) while Balu Iyer, director general of ICA-AP, the<br />
International <strong>Co</strong>-<strong>op</strong>erative Alliance’s regional organisation for Asia-Pacific, looks at how<br />
co-<strong>op</strong>s have stepped up to support their members and communities (p44-48).<br />
It is clear that co-<strong>op</strong>s are playing a key role in helping to defeat coronavirus, from<br />
protecting employees to using their resources to provide relief and services to<br />
communities in need. But what they still need to do is raise awareness about their<br />
distinct co-<strong>op</strong>erative identity and the importance this has on determining their approach<br />
to dealing with crisis. Should they fail to do so, their contribution will be regarded as<br />
mere corporate social responsibility.<br />
ANCA VOINEA - INTERNATIONAL EDITOR<br />
<strong>Co</strong>-<strong>op</strong>erative <strong>News</strong> is printed using vegetable oil-based<br />
inks on 80% recycled paper (with 60% from post-consumer<br />
waste) with the remaining 20% produced from FSC or PEFC<br />
certified sources. It is made in a totally chlorine free process.<br />
MAY <strong>2020</strong> | 3
feeding the nations ...<br />
the care sector during<br />
coronavirus ... Balu Iyer<br />
on the need for global<br />
co-<strong>op</strong>eration<br />
ISSN 0009-9821<br />
9 770009 982010<br />
01<br />
THIS ISSUE<br />
CLOCKWISE FROM TOP LEFT:<br />
Jenny Holsgrove, head of culture and<br />
performance, <strong>Co</strong>-<strong>op</strong>eratives UK (p26-27);<br />
social care co-<strong>op</strong>s during coronavirus (p32-<br />
33); Balu Iyer, regional director of ICA Asia<br />
and Pacific, updates the movement (p44-48);<br />
How is Midcounties looking after its retail<br />
colleagues? (p36-37); and the latest episode<br />
of the More Than A Sh<strong>op</strong> podcast episode<br />
focuses on workers (38-39)<br />
news Issue #7319 MAY <strong>2020</strong><br />
<strong>Co</strong>nnecting, championing, challenging<br />
MAY <strong>2020</strong><br />
WEATHERING<br />
THE STORM<br />
Workers at the<br />
frontline of<br />
the crisis<br />
Plus … Agri co-<strong>op</strong>s<br />
£4.20<br />
www.thenews.co<strong>op</strong><br />
26-27 MEET... JENNY HOLSGROVE<br />
We speak to the head of culture and<br />
performance at <strong>Co</strong>-<strong>op</strong>eratives UK about<br />
what <strong>Co</strong>vid-19 means for future working<br />
culture in the co-<strong>op</strong> sector<br />
28-39 WORKERS<br />
28-31 AGRICULTURE<br />
<strong>Co</strong>vid-19 has put the issue of food<br />
production in the spotlight, and<br />
agricultural labour is a crucial part of<br />
the equation. What do labour shortages<br />
and the need to protect workers from<br />
infection mean for the world’s agri<br />
co-<strong>op</strong> sector?<br />
32-33 CARING DURING CORONA VIRUS<br />
The care sector is under immense<br />
pressure from <strong>Co</strong>vid-19. We look at<br />
how some co-<strong>op</strong> and employee-owned<br />
businesses in the UK are responding<br />
to the crisis.<br />
34-35 THE NEW FRONTLINE<br />
Retail workers are the interface<br />
between the public and the<br />
essentials they need<br />
38-39 MORE THAN A SHOP<br />
The podcast for the UK co-<strong>op</strong> movement<br />
explores the benefits of working in a<br />
different way, with contributions from<br />
Suma, <strong>Co</strong>-<strong>op</strong>eratives UK and Leeds<br />
Bread <strong>Co</strong>-<strong>op</strong><br />
40-41 LIFE AFTER COVID-19<br />
When it comes to rebuilding the economy<br />
do we return to normal or build something<br />
better? A report from the Centre for Local<br />
Economic Strategies and the Democracy<br />
<strong>Co</strong>llaborative calls for plural ownership<br />
models and community wealth building<br />
42-43 PAUL GOSLING<br />
The pandemic and lockdown has delivered<br />
a massive shock to the global economy<br />
and threatens a severe downturn. How are<br />
co-<strong>op</strong>s in the finance sector c<strong>op</strong>ing?<br />
44-48 MESSAGE FROM BALU IYER<br />
The scale of the pandemic crisis means<br />
that this is the time for co-<strong>op</strong>eration, says<br />
the regional director of the International<br />
<strong>Co</strong><strong>op</strong>erative Alliance – Asia and Pacific<br />
REGULARS<br />
COVER: How are workers in<br />
co-<strong>op</strong>s around the world<br />
weathering the coronavirus crisis?<br />
Read more: p28-31<br />
36-37 PHIL PONSONBY<br />
We speak to the Group CEO of<br />
Midcounties about how the society<br />
is looking after its colleagues<br />
5-13 UK updates<br />
14-21 Global updates<br />
22-25 Letters<br />
50 Events<br />
4 | MAY <strong>2020</strong>
NEWS<br />
COVID-19<br />
Labour & <strong>Co</strong>-<strong>op</strong> MPs join Starmer’s shadow cabinet<br />
Sir Keir Starmer has unveiled his first<br />
shadow cabinet, following his election as<br />
Labour Party leader.<br />
The key role of shadow chancellor<br />
went to Anneliese Dodds (Labour &<br />
<strong>Co</strong>-<strong>op</strong> MP for Oxford East). Ms Dodds is<br />
the first woman shadow chancellor; no<br />
woman has served as chancellor.<br />
The two other t<strong>op</strong> posts went to non-<br />
<strong>Co</strong>-<strong>op</strong> MPs: Lisa Nandy has been<br />
appointed shadow foreign secretary and<br />
Nick Thomas-Symonds takes the post<br />
shadow home secretary.<br />
“We are living through a national<br />
emergency. Under my leadership, the<br />
Labour Party will always act in the<br />
country’s interest to save lives and protect<br />
livelihoods. That will be the number one<br />
priority of my shadow cabinet,” said Sir<br />
Keir, announcing the appointments.<br />
“We will be a responsible <strong>op</strong>position<br />
that supports the government where<br />
we believe they are right and challenge<br />
them when we believe mistakes are<br />
being made.”<br />
Anneliese Dodds was appointed<br />
shadow Treasury minister by Jeremy<br />
<strong>Co</strong>rbyn in 2017. Responding to the<br />
<strong>Co</strong>nservative’s budget in March, she said<br />
it failed to repair a decade of austerity and<br />
was “a missed <strong>op</strong>portunity to reshape our<br />
economy for the better”.<br />
“From a lack of statutory sick pay for<br />
‘precarious’ workers, to the broken social<br />
care system and flawed universal credit<br />
rollout – the coronavirus is exposing the<br />
weaknesses in our economy and public<br />
services,” she said.<br />
“[This budget] was a chance to<br />
fundamentally change how our economy<br />
works – but that chance wasn’t taken.<br />
The <strong>Co</strong>nservative government talks<br />
about levelling up, but as a Labour and<br />
<strong>Co</strong>-<strong>op</strong>erative MP I know that this cannot<br />
be achieved without structural changes<br />
to the way our economy is run and<br />
distributes rewards.”<br />
Ms Dodds added that for a fairer, more<br />
productive economy, the budget “needed<br />
to invest in growing the co-<strong>op</strong>erative<br />
sector, and creating a level playing field<br />
so that businesses who don’t play by<br />
the rules can’t get away with paying less<br />
than their fair share of taxes or using<br />
more than their fair share of the world’s<br />
resources”. She acknowledged the budget<br />
held “some, limited, areas of progress<br />
for the co-<strong>op</strong>erative sector,” highlighting<br />
changes that mean housing co-<strong>op</strong>s will no<br />
longer have to pay unfair punitive taxes<br />
and the recognition of the need for more<br />
inclusive financial institutions.<br />
“Beyond just recognising that these<br />
problems exist, however, we urgently<br />
need action. For many years the <strong>Co</strong>-<strong>op</strong><br />
Party has been campaigning for a fairer<br />
financial system, building on the work<br />
of credit unions and other financial<br />
co-<strong>op</strong>eratives. Now we need support so<br />
they can play a far larger role in increasing<br />
pe<strong>op</strong>les’ financial resilience, especially<br />
those with limited resources,” she added.<br />
<strong>Co</strong>ngratulating Ms Dodds, <strong>Co</strong>-<strong>op</strong> Party<br />
general secretary Joe Fortune said it was<br />
“a huge shot in the arm for co-<strong>op</strong>erators<br />
and the co-<strong>op</strong>erative movement to have<br />
someone as talented and committed [as]<br />
the shadow chancellor of the exchequer.”<br />
Ms Dodds, who has a degree in PPE<br />
from Oxford University and a PhD in<br />
government from LSE, was formerly a<br />
Member of the Eur<strong>op</strong>ean Parliament for<br />
the South East England region (2014-<br />
2017), serving on the economic and<br />
monetary affairs committee, with a focus<br />
on corporate tax avoidance. She has long<br />
championed women’s rights, making<br />
headlines in 2016 when she took her fourmonth-old<br />
daughter Isabella to Strasbourg<br />
where she spoke on tax avoidance laws.<br />
Writing on International Women’s Day<br />
this year, she talked about how, although<br />
women have come far in terms of gender<br />
equality, there is still a long way to go.<br />
“Women still only make up 202 out of the<br />
650 Members of Parliament – although,<br />
after the last election, the Labour Party<br />
actually has more female than male MPs,”<br />
she said.<br />
She also highlighted the drastic<br />
underfunding of women’s services, adding<br />
that it is “crucial that where we can, we as<br />
a nation support women in crisis [who<br />
p Anneliese Dodds and Jonathan Ashworth now have senior positions in the Shadow Cabinet<br />
are] dispr<strong>op</strong>ortionately impacted by crisis,<br />
across the world”.<br />
“I will continue to push for women’s<br />
equality through my work in parliament<br />
[but] we must all continue to celebrate<br />
how far we have come, and the women<br />
around us, too.”<br />
Jonathan Ashworth (Labour & <strong>Co</strong>-<strong>op</strong><br />
MP for Leicester South) retains the role of<br />
shadow secretary of state for health and<br />
social care. Mr Ashworth has served as<br />
shadow secretary of state for health in the<br />
shadow cabinets of Jeremy <strong>Co</strong>rbyn and u<br />
MAY <strong>2020</strong> | 5
u Keir Starmer since 2016. Born in Salford,<br />
he studied PPE at Durham University,<br />
served as national secretary of Labour<br />
students in 2000 and previously worked<br />
as an adviser to Gordon Brown and head<br />
of party relations for Ed Miliband.<br />
The full team sees roles for other<br />
Labour/<strong>Co</strong>-<strong>op</strong> MPs. They are:<br />
• Jonathan Reynolds (Stalybridge<br />
and Hyde), shadow work and<br />
pensions secretary<br />
• Luke Pollard (Plymouth, Sutton and<br />
Devonport), shadow environment,<br />
food and rural affairs secretary<br />
• Steve Reed (Croydon North),<br />
shadow communities and local<br />
government secretary<br />
• Jim McMahon (Oldham West and<br />
Royton), shadow transport secretary<br />
• Preet Kaur Gill (Birmingham,<br />
Edgbaston), shadow international<br />
devel<strong>op</strong>ment secretary.<br />
There are also roles for two Labour/<br />
<strong>Co</strong>-<strong>op</strong> peers: Baroness Smith is shadow<br />
leader of the Lords, and Lord McAvoy is<br />
the Lords’ Opposition chief whip.<br />
Several of the team members have<br />
played crucial roles in co-<strong>op</strong>erative<br />
initiatives.<br />
STEVE REED<br />
When in local government, Steve Reed<br />
played a key role in the devel<strong>op</strong>ment of<br />
the co-<strong>op</strong> council movement, which now<br />
comprises 28 local authorities across the<br />
country. In 2010 Mr Reed, then leader of<br />
Lambeth <strong>Co</strong>uncil, launched a consultation<br />
on plans to turn the authority into the<br />
country’s first co-<strong>op</strong>erative council, giving<br />
more control to communities and service<br />
users. He is now honorary president of<br />
the <strong>Co</strong>-<strong>op</strong>erative <strong>Co</strong>uncils Innovation<br />
Network (CCIN), the umbrella body for<br />
the movement.<br />
JIM MCMAHON<br />
Another high profile figure from the co-<strong>op</strong><br />
councils movement is Jim McMahon, who<br />
was leader of Oldham <strong>Co</strong>uncil and was the<br />
first president of the CCIN.<br />
LUKE POLLARD<br />
Luke Pollard – whose Plymouth<br />
constituency has a co-<strong>op</strong> council which<br />
has been praised for its co-<strong>op</strong>erative<br />
initiatives – has also been active in<br />
supporting the movement, including his<br />
calls for mutual ownership of utilities.<br />
JONATHAN REYNOLDS<br />
Jonathan Reynolds, whose previous<br />
roles include shadow economic secretary<br />
under the leadership of Jeremy <strong>Co</strong>rbyn,<br />
has worked to advocate co-<strong>op</strong> models,<br />
including arguing for worker-owned<br />
alternatives in the finance sector, in a<br />
speech to the <strong>Co</strong>-<strong>op</strong>erative Economy<br />
<strong>Co</strong>nference, organised by the <strong>Co</strong>-<strong>op</strong> Party<br />
in 2017.<br />
PREET KAUR GILL<br />
Preet Kaur Gill’s contributions to the<br />
movement include speaking up for farm<br />
producers’ co-<strong>op</strong>s around the world,<br />
calling last month for Brexit trade<br />
negotiators to bear in mind the needs of<br />
Fairtrade producers.<br />
In a statement welcoming Sir Keir as<br />
leader, and Angela Rayner as deputy,<br />
the <strong>Co</strong>-<strong>op</strong> Party said: “In recent years,<br />
the <strong>Co</strong>-<strong>op</strong>erative Party has demonstrated<br />
the influence of our ideas, our campaigns<br />
and our movement.<br />
“We have won significant policy<br />
commitments to promote the co-<strong>op</strong>erative<br />
sector’s growth and devel<strong>op</strong>ment, as<br />
well as support for campaigns on food<br />
justice, retail worker protection and<br />
modern slavery.<br />
“Our movement, anchored in the<br />
communities we serve, has exemplified<br />
the ‘co-<strong>op</strong>erative difference’ in its<br />
leading response to the coronavirus<br />
crisis. Working together, the Labour and<br />
co-<strong>op</strong>erative movements will continue to<br />
be a powerful force for positive change –<br />
during this crisis and beyond.”<br />
The <strong>Co</strong>-<strong>op</strong> Party adds that its MPs have<br />
remained active while Parliament was in<br />
lockdown, and worked to ensure retail<br />
workers – like those in co-<strong>op</strong> food stores<br />
– were included in the government’s list<br />
of essential workers.<br />
Florence Eshalomi MP worked to<br />
ensure the childcare services required by<br />
such key workers are given government<br />
support, while Tracy Brabin MP lobbied<br />
for financial support for the self-employed<br />
and Stephen Doughty MP flagged up the<br />
needs of the charity sector.<br />
<strong>Co</strong>-<strong>op</strong> Parliamentarians have also<br />
highlighted the needs of credit union,<br />
funerals, travel and retail sectors of the<br />
wider co-<strong>op</strong> movement, the Party said.<br />
6 | MAY <strong>2020</strong>
RETAIL<br />
<strong>Co</strong>-<strong>op</strong>erative societies<br />
continue their response<br />
to the challenges of<br />
<strong>Co</strong>vid-19 lockdown<br />
Issues of safe social distancing,<br />
maintaining food supplies and community<br />
support have placed grocery retailers<br />
at the forefront of efforts to tackle the<br />
<strong>Co</strong>vid-19 challenge – and co-<strong>op</strong> societies<br />
across the sector have been scrambling to<br />
act as the situation escalates.<br />
High profile responses include the<br />
<strong>Co</strong>-<strong>op</strong> Group’s Members’ <strong>Co</strong>ronavirus<br />
Fund, launched to support foodbanks, a<br />
funeral hardship fund and community<br />
causes. CEO Steve Murrells announced<br />
the move by pledging 20% of his salary<br />
over a three-month period.<br />
The Group’s 4.6 million members have<br />
been invited to donate their unspent<br />
member rewards – 5% on every purchase<br />
of an own-brand product of services,<br />
totalling over £30m – into the fund.<br />
Mr Murrells said: “Millions of pe<strong>op</strong>le<br />
are suffering financial hardship at the<br />
moment and so it felt right for me to offer<br />
to take this pay cut and directly support<br />
causes which are very important to me<br />
and close to my heart.”<br />
The fund builds on previous initiatives<br />
by the Group to support local communities<br />
during the outbreak. Last month it pulled<br />
its Easter TV ad campaign and donated<br />
the airtime, worth £2.5m, to promoting<br />
the work of food bank charity FareShare.<br />
The commercial highlights the charity’s<br />
efforts to feed some of the most vulnerable<br />
during the coronavirus crisis.<br />
Efforts to help communities are running<br />
throughout the movement, with retail<br />
societies donating to foodbanks via<br />
FareShare and the Trussell Trust, taking<br />
measures to protect staff and customers,<br />
and hiring extra workers to keep<br />
shelves full.<br />
Strict hygiene enforcement and social<br />
distancing measures are also being put in<br />
place and reviewed across all societies.<br />
The Group has recently launched<br />
<strong>Co</strong>-<strong>op</strong>erate, an online community centre<br />
to lessen the impact of the lockdown on<br />
pe<strong>op</strong>le’s mental health. Using an app,<br />
the platform connects vulnerable pe<strong>op</strong>le<br />
to local and national support initiatives,<br />
as well as volunteers who are willing<br />
p <strong>Co</strong>-<strong>op</strong> Group CEO Steve Murrells is donating part of his salary to the <strong>Co</strong>vid-19 fund<br />
to run virtual events such as exercise<br />
classes, music groups, or arts and crafts<br />
classes for others. The project aims to<br />
tackle loneliness, an issue the Group has<br />
focused on for a number of years.<br />
Volunteers are asked to list skills they<br />
can share and those wanting help are<br />
asked if there is anything they would<br />
like to do. The Group h<strong>op</strong>es this could<br />
help thousands of pe<strong>op</strong>le find new ways<br />
to support others during the pandemic,<br />
devel<strong>op</strong> unique ways to connect with<br />
others or acquire a new skill.<br />
The platform will also highlight the<br />
work of the Group’s Member Pioneers –<br />
colleagues who work with causes and<br />
concerns within their local communities.<br />
They will be concentrating all their efforts<br />
into helping others throughout the crisis.<br />
Matt Atkinson, chief membership<br />
officer for the Group, said: “I know that<br />
many of our members want to support<br />
others at this very difficult time and our<br />
new fund makes it as simple as possible<br />
for them to contribute in their own way.<br />
The collective effort of our members could<br />
have a massive impact for thousands of<br />
lives in the weeks and months ahead.”<br />
The Group has also started selling the<br />
Big Issue magazine in its stores, after<br />
social distancing measures and lockdown<br />
brought and end to street vending. Street<br />
sellers will continue to receive 50% of the<br />
sale price.<br />
Russell Blackman, managing director<br />
of The Big Issue, said: “Our income comes<br />
from street sales and without our vendors<br />
on the streets we cannot support those<br />
that really need us now and in the future.<br />
“We are delighted with the support from<br />
the <strong>Co</strong>-<strong>op</strong>, which <strong>op</strong>erates at the heart of<br />
communities across the UK. The money<br />
raised will help to secure the future of the<br />
magazine and make a real difference to the<br />
lives of our vendors around the country.”<br />
<strong>Co</strong>pies of the magazine can also be<br />
ordered online and 50% of net proceeds<br />
will go to vendors needing help. The<br />
remaining 50% will enable The Big Issue<br />
to continue its vital work with vendors<br />
now and in the future. Three-month<br />
subscriptions are also available to support<br />
vendors while they are off the streets.<br />
Matt Hood, commercial director at the<br />
Group, said: “Inclusivity is at the heart<br />
of our culture and this is an example of<br />
us all co-<strong>op</strong>erating and pulling together<br />
to help those most in need during this<br />
unprecedented time – every c<strong>op</strong>y sold will<br />
make a difference.”<br />
Central England <strong>Co</strong>-<strong>op</strong> is also on the<br />
lookout for community volunteers among<br />
its members and customers, to help those<br />
who are self-isolating.<br />
Volunteers should pick up a special<br />
green card from one of the society’s stores,<br />
fill in their details and p<strong>op</strong> it through<br />
the door of someone they know is selfisolating<br />
in their community.<br />
Thousands of customers have already<br />
expressed interest, including Cllr Joanna<br />
West, from Derby, who sits on the society’s<br />
Membership and <strong>Co</strong>mmunity <strong>Co</strong>uncil.<br />
She said: “I’ve spent the last four days<br />
at a lovely store at a Heatherton Village on<br />
the outskirts of Derby, assisting however I<br />
can. I’ve stocked shelves, scanned labels<br />
to display new products that have come in<br />
to replace the usual stock, cleaned fridge<br />
doors and shelves, and for the last two<br />
days I’ve been stationed on the front door<br />
cleaning baskets and trolley handles u<br />
MAY <strong>2020</strong> | 7
p<strong>Co</strong>lleagues at Scotmid’s Lakes and Dales stores in rural northern England set up a phone delivery service for customers in remote places<br />
uand asking customers to wait and be<br />
patient as we manage social distancing.”<br />
Central England <strong>Co</strong>-<strong>op</strong> is giving all its<br />
7,400 frontline colleagues an extra week’s<br />
pay in recognition of their hard work. The<br />
bonus will be paid in June and staff will<br />
also see their colleague discount double<br />
to 20% until the end of the same month.<br />
Chief executive Debbie Robinson<br />
said: “Our colleagues have been doing a<br />
tremendous job ensuring our communities<br />
continue to have access to vital essentials<br />
and services during this uncertain time.<br />
This bonus comes after the society<br />
brought forward its annual share of profits<br />
and increased its colleague discount<br />
earlier this month.<br />
Meanwhile, the society has awarded<br />
£50,000 to 29 community groups to help<br />
them continue their vital working during<br />
the <strong>Co</strong>vid-19 outbreak.<br />
The cash, from the society’s <strong>Co</strong>mmunity<br />
Dividend Fund, goes to organisations<br />
in Stafford, Burton, Cambridgeshire,<br />
Derbyshire, Leicestershire, Lichfield,<br />
West Midlands, Lincolnshire, Norfolk,<br />
Suffolk, Northamptonshire, Nottingham,<br />
Birmingham and Warwickshire.<br />
Midcounties <strong>Co</strong>-<strong>op</strong> has also announced<br />
a bonus for frontline colleagues, who for<br />
four weeks are receiving an extra 10%<br />
on the base rate of pay for hours actually<br />
worked. Any customer-facing front line<br />
colleague that currently has a child in<br />
one of Midcounties’ nurseries will receive<br />
enhanced discount from 30% to 50%,<br />
while the whole executive team has taken<br />
a voluntary pay cut. All food and post<br />
office front line colleagues will receive a<br />
meal deal on each day they are working.<br />
Funeral and healthcare colleagues will be<br />
able to claim back the equivalent of the<br />
cost of a meal deal £3.50 on the days they<br />
are working in front line <strong>op</strong>erations.<br />
Childcare colleagues can get lunch<br />
through the nursery kitchen on the<br />
days they are at work. Midcounties has<br />
also made arrangements with Creed<br />
for Childcare colleagues to receive food<br />
delivery parcels. While these will be<br />
charged for, it does provide a sh<strong>op</strong>ping<br />
service for those colleagues who are at<br />
work in nurseries.<br />
Midcounties, which <strong>op</strong>erates a chain of<br />
nurseries, has also announced a range<br />
of initiatives to help ensure key workers<br />
have uninterrupted access to childcare. As<br />
part of this, it has launched a new fund to<br />
help parents working for the NHS and in<br />
other critical roles pay nursery fees for the<br />
duration of the outbreak with an initial<br />
donation of £25,000.<br />
In addition, it has paused fees for<br />
all children not currently attending its<br />
nurseries as a result of the pandemic<br />
And it says it has made more than 10,000<br />
deliveries of food and other essentials to<br />
vulnerable customers.<br />
Lincolnshire <strong>Co</strong>-<strong>op</strong> is now selling £20<br />
vouchers over the phone that can be used<br />
by volunteers, friends or family to pay for<br />
the sh<strong>op</strong>ping of those who are isolating.<br />
The idea is to save pe<strong>op</strong>le having to<br />
hand over a bank card to someone else or<br />
worry about how much cash they have.<br />
Southern <strong>Co</strong>-<strong>op</strong> has also updated the<br />
<strong>News</strong> with its efforts to tackle the crisis.<br />
It says: “We’re closing our stores when<br />
we receive deliveries and replenish stock<br />
to protect our colleagues. Our colleagues<br />
are monitoring the amount of customers<br />
in our stores at any one time and have the<br />
<strong>op</strong>tion of temporarily closing the doors<br />
if necessary until capacity is back to a<br />
safe level.”<br />
Its crematoria and natural burial ground<br />
have been closed to the public except for<br />
funerals, which can only be attended by<br />
immediate family. Free webcast services<br />
have been introduced at The Oaks, Havant<br />
and East Devon Crematorium to go some<br />
way to helping mourners who are not<br />
allowed to attend a service.<br />
Scotmid <strong>Co</strong>-<strong>op</strong> has taken steps to<br />
support customers in remote areas, with<br />
colleagues at its Lakes and Dales stores<br />
in the north of England setting up a<br />
telephone order service for deliveries.\<br />
And Scotmid has come up with its own<br />
community initiative, Sharing Smiles.<br />
This asks children to draw pictures and<br />
write to care home residents to help them<br />
feel connected during the pandemic, with<br />
care homes and support facilities across<br />
the country forced to prohibit visitors.<br />
Scotmid communities manager Lynne<br />
Ogg, who is responsible for the initiative,<br />
said: “Since launching, more than 50<br />
care providers from across Scotland have<br />
contacted us to say they would like to be<br />
included to receive pictures and letters.<br />
“It’s a simple idea but a great way to<br />
keep children busy while also providing a<br />
valuable task that will help connect them<br />
with others at this difficult time.<br />
“Schools have also been in touch<br />
to say they are sending the details out<br />
8 | MAY <strong>2020</strong>
p Heart of England CEO Ali Kurji with representatives of the co-<strong>op</strong> and its charity partner Zoe’s Place to support<br />
to parents to get involved and a care home<br />
in Inverness has said they would like to<br />
both receive and share artwork they have<br />
been working on. We h<strong>op</strong>e to be able to<br />
share a lot of smiles in the weeks ahead.”<br />
Drawings and letters can to be emailed<br />
to lynneogg@scotmid.co.uk. They will<br />
then be collated by the communities team<br />
and sent on to care providers who can<br />
print them and share them with residents.<br />
Christine Thomas, service manager<br />
at Capability Scotland, said: “We are a<br />
large charity that supports pe<strong>op</strong>le with<br />
disabilities to live their best life ever.<br />
“Life for our customers has changed<br />
dramatically over the past week, as they<br />
are now advised to go into isolation to<br />
ensure they stay safe and healthy.<br />
“<strong>Co</strong>ntact with the outside world is<br />
precious, so it was hugely uplifting to<br />
read an email entitled ‘stay connected’;<br />
what a wonderfully touching idea this<br />
is. One of our social media hashtags is<br />
#creatingsmiles and being part of this<br />
project will most definitely achieve that.”<br />
Chelmsford Star has postponed its AGM<br />
but its member elections are continuing,<br />
and once again its board positions will<br />
be contested.<br />
Many of the Essex-based society’s<br />
Quadrant department store staff have<br />
voluntarily redeployed to assist in the<br />
society’s food stores, where managers<br />
have the power to limit number of pe<strong>op</strong>le<br />
in sh<strong>op</strong> at anyone time, and to close for up<br />
to an hour a day to get deliveries out.<br />
Head of membership and marketing,<br />
Kevin Bennett, said: “Our community<br />
card scheme means we have contact<br />
with a large number of local groups,<br />
including those who deal with the elderly,<br />
and vulnerable. We’re speaking to them<br />
directly to assist where we can.<br />
“Times are undoubtedly difficult, but<br />
I definitely feel this pandemic is bringing<br />
out the best in a lot of pe<strong>op</strong>le. We’re<br />
hearing many positive messages from<br />
our customers about how our food teams<br />
are responding to the challenges with<br />
positivity and kindness.”<br />
Channel Islands <strong>Co</strong>-<strong>op</strong> has employed<br />
more than 100 pe<strong>op</strong>le on zero-hour<br />
contracts to help in its stores and has<br />
expanded the home delivery scheme it<br />
launched for vulnerable islanders; this<br />
started out as a list of items to choose<br />
but now provides a large or small box<br />
of essential food items and some basic<br />
household products.<br />
“We were the first retailer in the Channel<br />
Islands to launch such a scheme and it<br />
has been hugely p<strong>op</strong>ular,” a spokesperson<br />
said. “We are also working on an online<br />
system which will increase deliveries to<br />
100 per day.”<br />
Heart of England <strong>Co</strong>-<strong>op</strong>erative has<br />
donated £36,000 to its charity partner<br />
Zoë’s Place Baby Hospice in <strong>Co</strong>ventry,<br />
which provides palliative, respite and endof-life<br />
care to babies and infants, which has<br />
had to suspend all its fundraising efforts<br />
in response to the <strong>Co</strong>vid-19 lockdown. The<br />
hospice is run by Zoë’s Place Trust, which<br />
<strong>op</strong>erates three facilities in <strong>Co</strong>ventry,<br />
Liverpool and Middlesbrough.<br />
Other community initiatives include<br />
East of England <strong>Co</strong>-<strong>op</strong> supplying perspex<br />
screens to protect reception staff at<br />
St Elizabeth’s Hospice, Ipswich; and<br />
Southern <strong>Co</strong>-<strong>op</strong> handing out goodies to<br />
NHS workers from its Isle of Wight stores.<br />
Allendale <strong>Co</strong>-<strong>op</strong>, a single-store<br />
retailer in Hexham, is also working hard<br />
to meet demand, with orders rising from<br />
its usual level of around 10 a day to 80.<br />
General manager Neville Pringle has told<br />
customers the store will not be able to add<br />
extras to orders.<br />
Radstock <strong>Co</strong>-<strong>op</strong> has also put strict<br />
sanitary measures in place, with floor<br />
distance markers and other signage,<br />
issuing face masks and gloves to frontline<br />
staff, installing screens and hand sanitiser<br />
at till points and increasing cleaning<br />
routines.<br />
It has suspended use of its membership<br />
card until further notice and will make<br />
a donation equivalent to the value of<br />
the dividend earned to UK charities<br />
dealing with <strong>Co</strong>vid-19. The society is also<br />
supporting schools with vouchers for<br />
those receiving school meals.<br />
To support colleagues, it is offering<br />
e-learning courses on c<strong>op</strong>ing with stress<br />
and anxiety, and a 24 hour counselling<br />
phone line has been put in place.<br />
Radstock has also devel<strong>op</strong>ed IT<br />
infrastructure to facilitate working from<br />
home where possible and curtailed all<br />
non-essential travel.<br />
Head of PR and communications Vicki<br />
Przytocki said: “We review the <strong>op</strong>eration<br />
on a daily basis and continue to monitor<br />
external guidance, internal input<br />
and suggestions from our colleagues<br />
and feedback from our members<br />
and customers.”<br />
MAY <strong>2020</strong> | 9
COVID-19<br />
How are co-<strong>op</strong>eratives, community businesses and employee-owned firms<br />
weathering the financial storm of lockdown?<br />
With lockdown extended and continued<br />
uncertainty over the exit strategy, UK<br />
businesses are counting the cost of<br />
<strong>Co</strong>vid-19 – and not all are benefiting from<br />
the government’s support packages.<br />
p Ed <strong>May</strong>o, <strong>Co</strong>-<strong>op</strong>eratives UK secretary general<br />
This has been a particular concern for<br />
the co-<strong>op</strong> and social enterprise sectors.<br />
Ed <strong>May</strong>o, secretary general of sector body<br />
<strong>Co</strong>-<strong>op</strong>eratives UK, wrote to the government<br />
warning that many small organisations<br />
are not eligible for full support, and that<br />
the <strong>Co</strong>ronavirus Business Interruption<br />
Loan Scheme (CBILS) is difficult to apply<br />
for and access.<br />
<strong>Co</strong>-<strong>op</strong>eratives UK has carried out a<br />
survey of its members to see how they<br />
have fared under the government support<br />
packages. It stresses that percentages<br />
given in the following figures are from<br />
respondents to each particular question<br />
– and may not be representative of the<br />
sector, as in some cases only a few pe<strong>op</strong>le<br />
have answered that question; they are<br />
a snapshot of the sector rather than<br />
a full picture.<br />
The survey found that:<br />
• 30% say they are key workers or<br />
providing ‘essential’ services<br />
• 78% have concerns about the<br />
financial health of their co-<strong>op</strong><br />
• 30% cite cashflow as an issue<br />
• Nearly half (48%) say they are<br />
confused or uncertain about the<br />
support available from government<br />
• 86% say a cash grant is needed to<br />
support their co-<strong>op</strong><br />
Early data shows around 20% are<br />
ineligible for the government grant<br />
schemes’ (but will be able to access the<br />
JRS, SSP rebate, VAT deferral etc).<br />
<strong>Co</strong>-<strong>op</strong>eratives UK also asked what<br />
government support they were able to<br />
access or were planning to access:<br />
• A third (33%) plan to furlough staff<br />
• 13% plan to apply for CBILS – but<br />
some have said they are reluctant to<br />
take on more debt and/or the interest<br />
rate was too high<br />
• 18% plan to defer VAT payments<br />
• 9% said they expected to be eligible<br />
for the Retail, Leisure and Hospitality<br />
grants via their local authority<br />
The team at <strong>Co</strong>-<strong>op</strong>eratives UK has<br />
identified several issues and challenges –<br />
notably that some co-<strong>op</strong>s are not eligible<br />
for self employed support or able to<br />
furlough staff and do not <strong>op</strong>erate from a<br />
rateable pr<strong>op</strong>erty; <strong>Co</strong>-<strong>op</strong>eratives UK has<br />
written to the government to highlight<br />
this issue.<br />
It is also looking for clarification from<br />
the Department for Culture, Media and<br />
Sport that co-<strong>op</strong>erative and community<br />
benefit societies are eligible for the £750m<br />
package of support for charities and<br />
social enterprise.<br />
There is some support for the credit<br />
union sector: the government has brought<br />
in Fair4All which is supporting around 50<br />
organisations with up to £5m of funding –<br />
with grants that will range from £20,000-<br />
£350,000 in size.<br />
But some credit unions are struggling<br />
to access financial support. Barrow and<br />
District Credit has told local press that<br />
it is continuing to <strong>op</strong>erate but did not<br />
qualify for the fund introduced by the<br />
government for credit unions because<br />
the scheme is only available to credit unions<br />
with a current loan book of £2m or more.<br />
There are other challenges for rural<br />
community businesses who have found it<br />
difficult to access essential supplies from<br />
wholesalers who have been focussing<br />
their efforts on meeting demands on big<br />
stores in urban areas.<br />
Duncan Smith, from the Plunkett<br />
Foundation, the support body for rural<br />
community businesses, told the <strong>News</strong>:<br />
“Local suppliers are often stepping up<br />
where bigger wholesalers have failed.<br />
“<strong>Co</strong>mmunity businesses have to be<br />
resilient and flexible in how they get their<br />
stock. They’ve also had to be flexible and<br />
resilient when it comes to the volunteers<br />
who run their stores – many were aged<br />
over 70; younger ones have had to come<br />
on board to enable sh<strong>op</strong>s to do more, and<br />
to do different things – such as deliver<br />
supplies to pe<strong>op</strong>le who are self isolating.”<br />
As <strong>Co</strong>-<strong>op</strong> <strong>News</strong> went to press, it was<br />
reported that Nisa – the mutual groceries<br />
wholesaler, now a subsidiary of the<br />
<strong>Co</strong>-<strong>op</strong> Group – has <strong>op</strong>ened up its<br />
membership to Plunkett’s family of<br />
community sh<strong>op</strong>s, which should help<br />
them to secure food supply chains in their<br />
rural communities.<br />
The crisis has enabled community<br />
sh<strong>op</strong>s to show how resilient and adaptable<br />
they are – and how important they are to<br />
the pe<strong>op</strong>le they serve.<br />
“For some pe<strong>op</strong>le who have no<br />
transport it is not an <strong>op</strong>tion to go to<br />
the supermarket,” said Mr Smith.<br />
“<strong>Co</strong>mmunity pubs, which had to shut<br />
their doors, have re-purposed themselves<br />
– they have <strong>op</strong>ened sh<strong>op</strong>s, and they are<br />
offering deliver services.”<br />
One community pub, the Green Man in<br />
T<strong>op</strong>pesfield, Essex, has even set up support<br />
lines using qualified psychologists to help<br />
those who are isolated and vulnerable.<br />
Mr Smith h<strong>op</strong>es the crisis will expand<br />
this flexibility of the community business<br />
sector and enhance its visibility.<br />
“<strong>Co</strong>mmunity business is ingrained<br />
in community, and has the flexibility to<br />
offer new services and diversify – this is<br />
becoming apparent as the weeks go on.<br />
Pe<strong>op</strong>le are working longer hours and<br />
really becoming a sort of heroes in their<br />
community. They are doing a service<br />
above and beyond what they would<br />
normally see. In rural areas they may be<br />
the only service pe<strong>op</strong>le have.<br />
“The fact you’re drawing in more pe<strong>op</strong>le<br />
and younger pe<strong>op</strong>le and introducing new<br />
services has got to be good thing and any<br />
new way to serve a community can be<br />
beneficial. If it gets more pe<strong>op</strong>le involved,<br />
it’s a positive.”<br />
The government’s job retention<br />
scheme has kicked in but, said Mr Smith:<br />
“I suspect sh<strong>op</strong>s are expanding; it’s the<br />
10 | MAY <strong>2020</strong>
pubs where it is different. We don’t know<br />
how long they’re going to be closed.”<br />
The Campaign for Real Ale has warned<br />
that the lockdown means many pubs<br />
could go to the wall, while Plunkett has<br />
continued to campaign for the community<br />
pub sector.<br />
<strong>Co</strong>mmunity pubs have been busy repurposing<br />
themselves as sh<strong>op</strong>s and<br />
delivery services. For example the<br />
Abingdon Arms, in Oxfordshire, is hosting<br />
virtual quizzes and talks; selling about 250<br />
takeaway meals a week; and <strong>op</strong>erating a<br />
temporary sh<strong>op</strong> which, while not making<br />
money, offers a lifeline in rural areas<br />
where food is hard to access.<br />
Mr Smith added: “The lockdown has<br />
shaken the sector to its foundations.<br />
Many community pubs have had to close<br />
completely, and the next big test is the<br />
unknown – we do not yet know exactly<br />
how long pubs will have to remain closed.<br />
That brings with it uncertainty over costs<br />
and cash flow.<br />
“Ensuring these community businesses<br />
can sustain a potentially long period<br />
with closed doors is a great challenge.<br />
And when pubs do re<strong>op</strong>en, there will be<br />
a very real possibility of a deep recession.<br />
Should they not re<strong>op</strong>en until the autumn<br />
there is the further potential difficulty of<br />
the post-Christmas months, which can be<br />
a testing time for the hospitality trade.<br />
“Many pubs have had to furlough<br />
employees and have been accessing<br />
government support. Some tenanted<br />
community pubs have been able to offer<br />
their tenants a rent holiday, but this can’t<br />
be unlimited.<br />
“Plunkett is here to help and support<br />
these community pubs with advice and<br />
guidance throughout the coronavirus<br />
lockdown, and in the months of<br />
uncertainty yet to come.”<br />
Like community businesses, the<br />
employee-owned sector has seen growth<br />
in recent years but is facing lockdown<br />
challenges. The Employee Ownership<br />
Association is offering one-to-one calls,<br />
weekly webinars, weekly newsletter and<br />
an online <strong>Co</strong>vid-19 resource which is<br />
regularly updated.<br />
“The nature and values of the<br />
businesses that make up our membership<br />
is to share. As an EO community we can<br />
support everyone to be as resilient as<br />
possible during these unprecedented<br />
times,” it said.<br />
p Green Man community pub in T<strong>op</strong>pesfield<br />
Key issues are cashflow and accessing<br />
finance – and, in the short term, EO<br />
businesses need help in accessing<br />
some of this government support, in<br />
particular CBILS.<br />
Head of communications Keely Lead<br />
said: “Access to finance for employee<br />
owned businesses has been an issue that<br />
pre-dates the coronavirus crisis, which<br />
has seen the EOA engage with the finance<br />
sector to address its lack of understanding<br />
and inconsistency of response to<br />
supporting employee owned businesses.<br />
“None of the main banks have explicit<br />
policies to support the growing number<br />
of businesses that transition to an<br />
Employee Ownership Trust. Therefore,<br />
in the advent of this pandemic, the lack<br />
of understanding means that requests<br />
for personal guarantees, which EO<br />
businesses are unable to provide, teamed<br />
with some banks preferring to support<br />
customers using their existing lending<br />
products (which have T&Cs that employee<br />
owned businesses may struggle to meet)<br />
means we are trying to support their needs<br />
by speaking to government, the British<br />
Business Bank as well as signposting to<br />
help and support to access funds.”<br />
There are also issues around<br />
engagement. “We’re hearing from<br />
many of our members that they<br />
were quick to engage with employee<br />
owners and explain, gather ideas and<br />
come up with the right solutions and<br />
where necessary change tack,” said<br />
Ms Lead.<br />
“Many of our members are using the<br />
job retention scheme and using furlough<br />
to keep their businesses going, but with<br />
excellent engagement plans in place so<br />
the teams still feel part of what is going<br />
on. We are hearing how many of our<br />
businesses are doing so with a highly<br />
engaged team all supporting each other<br />
and the business the best way they can<br />
during this difficult time.”<br />
She gave the example of Stockportbased<br />
school and corporate wear supplier<br />
Rowlinson Knitwear, which decided to<br />
furlough 75% of workers, prioritising<br />
those who were vulnerable and those who<br />
would have to use public transport.<br />
“Furloughed workers will have pay<br />
t<strong>op</strong>ped up as the business splits the<br />
difference – so are receiving 90% pay”<br />
said Ms Lead. “Having shown strong<br />
leadership, being <strong>op</strong>en and transparent<br />
and offering mental health and wellbeing<br />
support has seen great feedback from<br />
their team and the business continues<br />
to prepare for the future with many of its<br />
furloughed workers choosing to use their<br />
time to train.”<br />
EO businesses are also adapting, she<br />
added. For instance, Northants chemical<br />
company Scot Bader has devel<strong>op</strong>ed<br />
a new rheology modifier for alcoholbased<br />
hand cleansers in just ten days<br />
to help with the global shortage; and<br />
Middlesex manufacturer Flowstore has<br />
set up a socially distanced production<br />
lines for hospital ventilators and social<br />
distancing screens.<br />
MAY <strong>2020</strong> | 11
ion to the acquisition<br />
RETAIL<br />
change how we run<br />
<strong>Co</strong>-<strong>op</strong> Group profit up<br />
n in the full report.<br />
by 50% in 2019<br />
The <strong>Co</strong>-<strong>op</strong> Group reported strong financial<br />
results for the year to 4 January, with total<br />
revenues up 7% to £10.9bn, driven by<br />
continued strong performance from Food.<br />
The retailer reported a 50% increase<br />
in underlying profit before tax to £50m.<br />
Revenue in Food rose 3% to £7.5bn with<br />
Attracting like-for-like sales up new 1.9%. This means and<br />
six consecutive years of like-for-like Food<br />
younger revenue growth. members<br />
12 | MAY <strong>2020</strong><br />
apprentice since 2011.<br />
Insurance saw gross written premiums<br />
total £491.4m, up from £485m in 2018.<br />
Meanwhile, Funeral and Life Planning<br />
revenue fell from 3.2% £317m in 2018 to<br />
£307m in 2019 due to investments in price<br />
and offer, as well as a lower death rate.<br />
Revenue for the legal services division<br />
rose 13% to £40m.<br />
The Group was able to reduce net<br />
debt reduced to £695m, excluding lease<br />
liability from £764m in 2018. Members<br />
saw £59m returned to them directly, while<br />
£17m went to 4,400 local causes chosen<br />
by members and colleagues.<br />
Chief executive Steve Murrells said:<br />
“The <strong>Co</strong>-<strong>op</strong> made further financial<br />
progress through 2019, showing that co<strong>op</strong>eration<br />
is working. While we didn’t<br />
know it at the time, that performance set<br />
us up well to withstand the impact of the<br />
<strong>Co</strong>vid-19 crisis and to enable us to support<br />
the communities we <strong>op</strong>erate in.<br />
“No part of our business has been<br />
unaffected by the outbreak of the virus<br />
and we have played a critical role in<br />
communities throughout the UK. Our Food<br />
business has helped to feed the nation<br />
and our Funeral colleagues have been<br />
there for families at their time of greatest<br />
ENERGY<br />
Our drive to attract younger how local ownership of energy (and other<br />
<strong>Co</strong>mmunity energy<br />
infrastructure) can help communities be<br />
members has resulted in a more 36% resilient.<br />
group raises £100k<br />
Selsey and Sidlesham Ferry Farm<br />
increase <strong>Co</strong>vid-19 in new support members aged<br />
<strong>Co</strong>mmunity Solar allocated £40,000 to<br />
35 and under; an age group support organisations helping those in<br />
<strong>Co</strong>mmunities for Renewables (CfR), its community. Funds are needed for a<br />
that a represents collective of local energy 30% enterprises, of the rapidly mobilised community support<br />
have between them mobilised £100,000 to network. Three initial awards totalling<br />
p<strong>op</strong>ulation.<br />
support those facing hardship as a result £17,500 were made in the first week<br />
of <strong>Co</strong>vid-19.<br />
of lockdown:<br />
As community-owned enterprises, they On the day the schools closed, a<br />
were able to mobilise funds to support donation of £1,500 was made to the<br />
community-organised aid networks. The Selsey Academy to pay for a subscription<br />
<strong>Co</strong>rona Crisis Funds were distributed to an online library to help pupils study<br />
from surpluses generated by communityowned<br />
solar arrays. CfR says this shows <strong>Co</strong>mmunity Forum, which is co-ordinating<br />
at home; £6,000 has gone to Selsey<br />
the <strong>Co</strong>vid Mutual Aid network for Selsey<br />
and Sidlesham; and £10,000 has gone to<br />
Chichester Food Bank.<br />
Gawcott and Buckingham’s Gawcott<br />
Solar CIC has allocated £14,000 to a<br />
<strong>Co</strong>rona Crisis Fund. Two donations<br />
have been made in the first week of the<br />
5,000 apprentices lockdown: Buckingham Food Bank has<br />
received £2,500 to provide emergency<br />
food to local families in crisis, and £747<br />
Our <strong>Co</strong>-<strong>op</strong> apprenticeship<br />
scheme took on its 5,000th<br />
need. All of this work will continue and<br />
I could not be more proud of our pe<strong>op</strong>le<br />
who have delivered – day in, day out.<br />
“<strong>Co</strong>-<strong>op</strong>eration is something that is<br />
central not just to our business model,<br />
but to everything that we do and we are<br />
committed to continue to deliver against<br />
our vision of <strong>Co</strong>-<strong>op</strong>erating for a Fairer<br />
World. Against the backdr<strong>op</strong> of <strong>Co</strong>vid-19<br />
we will review the strategy we had<br />
embedded across our businesses, aligning<br />
commercial and community objectives.”<br />
Allan Leighton, independent nonexecutive<br />
chair of the Group, added: “Our<br />
commitment is to do all we can to help<br />
our members, customers and colleagues<br />
through the weeks and months ahead.<br />
It is already clear that <strong>Co</strong>vid-19 will have<br />
profound consequences for the UK and<br />
global economy and our <strong>Co</strong>-<strong>op</strong> members<br />
and customers will not be immune.<br />
“Against that backdr<strong>op</strong>, our results for<br />
last year show that we are in a strong<br />
position to keep playing our part. At the<br />
<strong>Co</strong>-<strong>op</strong>, however, we measure our success<br />
differently. Strengthening and sustaining<br />
our local communities is fundamental to<br />
us and in 2019 we gave £17m to more than<br />
4,400 local causes.”<br />
has gone to YC2 Buckingham & Winslow<br />
Young Carers for gift vouchers to recognise<br />
55 young carers looking after family<br />
members at home.<br />
Jake Burnyeat, director of CfR, said:<br />
“These rapidly deployed <strong>Co</strong>rona Crisis<br />
Funds show the real value of communities<br />
having their own local energy enterprises:<br />
generating funds to deploy for the benefit<br />
of local communities as needs arise.<br />
“Other community energy enterprises<br />
are mobilising similar crisis funds and<br />
support. If every town had a community<br />
energy enterprise, that story could be<br />
repeated across the UK – something to<br />
bear in mind as the we plan our new zero<br />
carbon energy future.”<br />
CfR is a <strong>Co</strong>rnwall-based community<br />
interest company which helps<br />
communities across the UK to set up local<br />
energy enterprises and works with them<br />
to devel<strong>op</strong>, finance and manage their own<br />
renewable energy generation.<br />
Since setting up in 2012, it has worked<br />
with local energy enterprises in over 30<br />
localities from villages to cities to help<br />
deliver over 35MW of community solar.
Cumbrian credit union merger approved by FCA<br />
CO-OP FORTNIGHT<br />
Let’s build something<br />
better together<br />
With <strong>Co</strong>vid-19 impacting every business<br />
and community, this year’s <strong>Co</strong>-<strong>op</strong>erative<br />
Fortnight is looking to the future.<br />
Themed ‘Let’s build something better<br />
together’, the two weeks from 22 June<br />
to 5 July will use inspirational stories of<br />
co-<strong>op</strong>eration that have emerged from<br />
the pandemic to harness this positive<br />
behaviour and encourage everyone to<br />
#Keep<strong>Co</strong><strong>op</strong>erating.<br />
Organised by <strong>Co</strong>-<strong>op</strong>eratives UK, the<br />
original call for the <strong>2020</strong> fortnight was to<br />
#JoinA<strong>Co</strong><strong>op</strong>, but the decision was made to<br />
change the theme to reflect the crisis.<br />
“We’ve seen pe<strong>op</strong>le from all walks<br />
of life stepping up during these<br />
extraordinary times,” said Wendy Carter,<br />
head of communications and marketing,<br />
“with three quarters of a million pe<strong>op</strong>le<br />
volunteering for the NHS – sh<strong>op</strong>ping<br />
for vulnerable neighbours, delivering<br />
equipment and medication and checking<br />
in with those most at risk. And co-<strong>op</strong>s are<br />
playing their part in many different ways<br />
by keeping shelves stocked, providing<br />
essential services, supporting local<br />
mutual aid groups and much more.”<br />
She added that there had been many<br />
heartening stories of co-<strong>op</strong>eration. “We<br />
want to make sure we don’t lose this,<br />
especially when some pe<strong>op</strong>le may be<br />
connecting with others in this way for the<br />
first time. Our campaign this year aims to<br />
encourage pe<strong>op</strong>le to keep doing what they<br />
are doing.”<br />
<strong>Co</strong>-<strong>op</strong>eratives UK wants co-<strong>op</strong>s to get<br />
involved by highlighting the different ways<br />
that co-<strong>op</strong>s, and pe<strong>op</strong>le in communities<br />
have worked together, and talking about<br />
the co-<strong>op</strong> values and principles.<br />
uPosters, graphics and logos can be<br />
found online at uk.co<strong>op</strong>/resources/<br />
co-<strong>op</strong>-fortnight-<strong>2020</strong><br />
The Financial <strong>Co</strong>nduct Authority has<br />
approved a merger between Cumbria’s<br />
Affinity Credit Union and Eden and South<br />
Lakeland Credit Union. The merger came<br />
into effect on 1 April, although <strong>op</strong>erations<br />
at both organisations will continue<br />
unchanged for the time being because of<br />
<strong>Co</strong>vid-19 lockdown restrictions. Members<br />
of Eden and South Lakeland Credit Union<br />
will continue to access services.<br />
Central England gets planning nod for new travel store<br />
Central England <strong>Co</strong>-<strong>op</strong> has been given<br />
planning approval for a new travel store in<br />
Beccles, Suffolk. The society lodged plans at<br />
the start of the year to take over the Grade-<br />
II listed site, previously occupied by <strong>Co</strong>ral<br />
bookmakers. East Suffolk <strong>Co</strong>uncil has now<br />
given the society the green light. Its travel<br />
store had previously been housed in Beales<br />
before the department store’s closure.<br />
Lambeth GP Food <strong>Co</strong>-<strong>op</strong>erative launches food fundraiser<br />
Lambeth GP Food <strong>Co</strong>-<strong>op</strong> has launched<br />
a fundraiser for Seeds for Life, a<br />
new project which will distribute<br />
gardening kits to vulnerable pe<strong>op</strong>le<br />
to help them through lockdown. The<br />
co-<strong>op</strong>, run by patients, doctors, nurses<br />
and residents, has been working on food<br />
growing projects to improve health and<br />
wellbeing since 2013. bit.ly/34ZhHH6<br />
Awards nod for Southern <strong>Co</strong>-<strong>op</strong>’s charity partnership<br />
The Society of St James and Southern<br />
<strong>Co</strong>-<strong>op</strong> have been shortlisted for the Shortterm<br />
Partnership Award at the Third<br />
Sector Business Charity Awards. The<br />
partnership, launched last year, has a<br />
focus on reducing crime, addiction and<br />
homelessness; so far £11,500 has been<br />
raised, and 4,250 hours volunteered.<br />
<strong>Co</strong>-<strong>op</strong>eration Town continues its <strong>Co</strong>vid-19 food support<br />
Last week, mutual aiders from the<br />
<strong>Co</strong>-<strong>op</strong>eration Town food network delivered<br />
more than 100 packs of food in a day to<br />
Camden households on low or no income.<br />
The group tweeted: “We’re glad we<br />
were able to adapt our infrastructure to<br />
this emergency, but can’t wait organise<br />
community food co-<strong>op</strong>s again.”<br />
MAY <strong>2020</strong> | 13
GLOBAL UPDATES<br />
USA<br />
US co-<strong>op</strong>s ruled eligible for <strong>Co</strong>vid-19 paycheck support<br />
The US Small Business Administration<br />
(SBA) has published its interim guidelines,<br />
which clarify eligibility criteria for<br />
loans under the paycheck protection<br />
programme (PPP) created by the<br />
CARES Act.<br />
The interim rules indicate most<br />
co-<strong>op</strong>erative business sectors, including<br />
agriculture, purchasing, consumer food,<br />
and worker co-<strong>op</strong>eratives, will be able to<br />
access PPP loans.<br />
Signed into law on 27 March, the<br />
CARES Act is an emergency relief bill<br />
designed to reduce the impact of <strong>Co</strong>vid-19<br />
on the national economy. As part of the<br />
US$2.2tn (£1.78tn) stimulus package,<br />
the government will provide US$349bn<br />
(£281bn) through the PPP to help<br />
businesses keep workers on their payrolls.<br />
“This is good news for many<br />
co-<strong>op</strong>eratives and their employees,” Doug<br />
O’Brien, president and CEO of the National<br />
<strong>Co</strong><strong>op</strong>erative Business Association (NCBA<br />
CLUSA), said in a statement. “The severe<br />
economic effects of this pandemic do<br />
not discriminate on the basis of business<br />
structure, so neither should PPP. While<br />
we appreciate this recent guidance from<br />
SBA, we pledge to continue to work with<br />
the co-<strong>op</strong> community to make sure that all<br />
employees of co-<strong>op</strong>s are covered.”<br />
The US Federation of Worker<br />
<strong>Co</strong><strong>op</strong>eratives (USFWC) also welcomed the<br />
guidelines. “The fact that co-<strong>op</strong>eratives<br />
are eligible for SBA support is a good signal<br />
from the Small Business Administration,”<br />
said Esteban Kelly, executive director<br />
of the USFWC.<br />
“Access to this relief is indicative of<br />
how economically devastating <strong>Co</strong>vid-19<br />
has been in such a short amount of<br />
time. Relief funding is welcome news for<br />
co-<strong>op</strong> businesses and their workers.”<br />
He added: “Businesses like our workerowned<br />
and governed member co-<strong>op</strong>s<br />
are an under-served sector of the small<br />
business community. We have fought<br />
for decades for co-<strong>op</strong> eligibility across<br />
the spectrum of SBA programmes,<br />
are looking forward to continuing our<br />
work with the SBA to ensure that these<br />
guidelines inform long-term co-<strong>op</strong><br />
eligibility for SBA programs. We are proud<br />
to be working with our national partners<br />
and mobilising members to ensure that<br />
co-<strong>op</strong>eratives in the US receive the support<br />
they deserve.”<br />
NCBA and USFWC continue to engage<br />
with SBA and legislators to ensure all<br />
co-<strong>op</strong>s are eligible for the programme.<br />
On 1 April NCBA, along with 16 other<br />
co-<strong>op</strong> organisations (including USFWC),<br />
sent a letter to the SBA asking that<br />
co-<strong>op</strong>erative businesses be allowed to<br />
participate in PPP.<br />
Issued through private lending<br />
institutions, PPP loans are 100%<br />
guaranteed by the SBA. If a borrower<br />
meets certain requirements, including<br />
maintaining payroll employees, much of<br />
the loan can be forgiven. The loans do not<br />
require a personal guarantee, a former<br />
requirement that has prevented worker<br />
and consumer co-<strong>op</strong>s from accessing SBA<br />
loan programmes in the past.<br />
<strong>Co</strong>-<strong>op</strong>s that are ineligible for a PPP loans<br />
can still qualify for an Economic Injury<br />
Disaster Loan, for which all co-<strong>op</strong>eratives<br />
are eligible. <strong>Co</strong>-<strong>op</strong>s eligible for PPP loans<br />
can apply for the Economic Injury Disaster<br />
Loan as well.<br />
14 | MAY <strong>2020</strong>
GLOBAL<br />
Fairtrade International releases new<br />
guidance to help farmers c<strong>op</strong>e with <strong>Co</strong>vid-19<br />
p Mrs Kouma, a farmer at CAYAT, a Côte<br />
d’Ivoire co-<strong>op</strong> (Photo: Peter Caton)<br />
Producer organisations will be able to use<br />
some of their Fairtrade Premium funds to<br />
c<strong>op</strong>e with the impact of <strong>Co</strong>vid-19.<br />
Fairtrade International announced<br />
increased flexibility in its standards<br />
to enable producer organisations, the<br />
majority of which are co-<strong>op</strong>s, to take<br />
immediate action to protect farmers and<br />
workers. The organisation h<strong>op</strong>es this<br />
will ease some of the negative impacts of<br />
the pandemic.<br />
“Many farmers and agricultural<br />
workers in the global south are already<br />
beginning to feel the economic effects<br />
of <strong>Co</strong>vid-19, although in many cases the<br />
health impacts are still to be seen,” said<br />
Gelkha Buitrago, Fairtrade International’s<br />
director of standards and pricing.<br />
“The new guidance we have just<br />
approved makes it possible for Fairtrade<br />
certified producer organisations to make<br />
decisions and act quickly on things that<br />
will keep farmers and workers safe, or<br />
provide much-needed extra income<br />
during this uncertain time.”<br />
The new standards were approved by<br />
the Fairtrade Standards <strong>Co</strong>mmittee on 27<br />
March and apply to all types of Fairtradecertified<br />
producers, from small-scale<br />
farmer co-<strong>op</strong>eratives to larger farms with<br />
a hired workforce.<br />
Under the new guidance, producer<br />
organisations can spend Fairtrade<br />
Premium funds more flexibly to minimise<br />
the spread of disease, such as by<br />
purchasing and distributing face masks<br />
or other personal protective equipment,<br />
or by implementing hygiene campaigns.<br />
Furthermore, producer organisations can<br />
take decisions about spending premiums<br />
on <strong>Co</strong>vid-19 related measures without<br />
waiting for approval at their required<br />
annual general assembly meetings. They<br />
will instead document expenditures for<br />
retroactive ratification.<br />
To protect hired labour, the workerrun<br />
Fairtrade Premium <strong>Co</strong>mmittees will<br />
be able to distribute up to 100% of their<br />
Fairtrade Premium funds as direct cash<br />
distributions to workers, without having to<br />
make a formal request to the independent<br />
certifier, Flocert.<br />
The guidance also asks all Fairtrade<br />
producer organisations, particularly those<br />
employing workers, to continue to respect<br />
fundamental rights and freedoms and pay<br />
workers, including those required to selfisolate,<br />
as well as to enable workers to<br />
keep appr<strong>op</strong>riate safe distance from each<br />
other while performing tasks.<br />
“We will continue to monitor the<br />
devel<strong>op</strong>ments and assess the challenges<br />
in the implementation of Fairtrade<br />
Standards and will inform all stakeholders<br />
on any further temporary measures,”<br />
added Ms Buitrago in a letter to producer<br />
organisations.<br />
GLOBAL<br />
<strong>Co</strong>-<strong>op</strong>erative insurance body Icmif shares information as UN<br />
launches <strong>Co</strong>vid-19 service on Whatsapp<br />
The United Nations Devel<strong>op</strong>ment<br />
Programme (UNDP) in conjunction with<br />
the World Health Organisation (WHO)<br />
and Unicef have launched a <strong>Co</strong>ronavirus<br />
Information Hub with WhatsApp.<br />
The hub provides simple, actionable<br />
guidance for all types of organisations that<br />
rely on WhatsApp to communicate with<br />
others including health workers, educators,<br />
community leaders, nonprofits, local<br />
governments and local businesses.<br />
The site also offers general tips and<br />
resources for users around the world to<br />
reduce the spread of rumours and help<br />
pe<strong>op</strong>le connect with accurate health<br />
information.<br />
The UNDP says an important part of the<br />
new partnership is a dedicated messaging<br />
service in Arabic, English, French and<br />
Spanish managed by WHO to keep pe<strong>op</strong>le<br />
safe from coronavirus. This easy-to-use<br />
messaging service has the potential<br />
to reach 2 billion pe<strong>op</strong>le and enables<br />
information to be shared directly with the<br />
pe<strong>op</strong>le that need it.<br />
The news was welcomed by Icmif,<br />
the global body for co-<strong>op</strong> and mutual<br />
insurers, which is a partner of the UNDP.<br />
All Icmif member organisations are<br />
invited to share information on the hub<br />
with their member policyholders through<br />
their usual distribution channels to help<br />
them find the latest, accurate information<br />
on the <strong>Co</strong>vid-19 situation. The material is<br />
currently available in 58 languages and<br />
this number is growing.<br />
MAY <strong>2020</strong> | 15
REPUBLIC OF KOREA<br />
How Korean co-<strong>op</strong>eratives are responding to the pandemic<br />
<strong>Co</strong>-<strong>op</strong>s in the Republic of Korea have<br />
been quick to respond to the <strong>Co</strong>vid-19<br />
crisis. From providing masks and free<br />
meals, to continuing to stock up shelves,<br />
consumer co-<strong>op</strong>s have been showing<br />
how they can make a difference in their<br />
local communities.<br />
The outbreak resulted in more members<br />
purchasing from i<strong>Co</strong><strong>op</strong> Korea’s food stores.<br />
A federation of consumer co-<strong>op</strong>eratives,<br />
i<strong>Co</strong><strong>op</strong> runs 239 stores.<br />
Sales rose 40% during February,<br />
compared to the same period in the<br />
previous year. Rice and noodles were<br />
among the most sought-after products.<br />
To c<strong>op</strong>e with the increase in demand<br />
for some products, stores put in place<br />
restrictions on the number of items per<br />
person. Customers have also sh<strong>op</strong>ped<br />
more online.<br />
Daegu city was one of the most affected<br />
areas in the early stages of the outbreak,<br />
with 70% of all cases. As a result, i<strong>Co</strong><strong>op</strong><br />
increased supply to the area by 30%.<br />
<strong>Co</strong>ping with the increased demand<br />
also required additional support from<br />
staff members, who volunteered to<br />
deliver some of the orders using their<br />
personal cars.<br />
At the end of February, when the<br />
number of infections was increasing in<br />
Daegu, local i<strong>Co</strong><strong>op</strong> members distributed<br />
10,000 masks to their members. On 3<br />
March they delivered 15,000 meals to<br />
local authorities to distribute to the worstaffected<br />
areas. During this period, the<br />
sector provided lunch boxes, masks, and<br />
hygiene items to medical staff and local<br />
communities, particularly those who were<br />
p i<strong>Co</strong><strong>op</strong> staff members delivering food items<br />
having difficulty due to the suspension<br />
of social services.<br />
But a decline in non-food businesses,<br />
coupled with school closures and lack of<br />
public procurement, affected many other<br />
co-<strong>op</strong>s and social enterprises.<br />
i<strong>Co</strong><strong>op</strong> also runs a Disaster Response<br />
<strong>Co</strong>mmittee which, in collaboration with<br />
and Seed Foundation for the Social<br />
Economy of Korea, initiated the <strong>Co</strong>vid-19<br />
Social Healing Project. A fundraising<br />
campaign, the initiative helped to raise<br />
KRW4.5m (£2,973) from i<strong>Co</strong><strong>op</strong> member<br />
co-<strong>op</strong>s, an amount matched by a donation<br />
from the foundation. The funding will be<br />
used to support those disadvantaged as<br />
well as organisations in the travel sector<br />
and the social economy that have been<br />
impacted by the crisis.<br />
In partnership with the Asia Pacific<br />
Alliance for Disaster Management Korea,<br />
the committee has provided lunch for<br />
two weeks to children in Daegu. School<br />
closures affect families who rely on the<br />
meals provided by the school to feed<br />
their children. The lunch boxes were<br />
prepared by small restaurants, which had<br />
been hit hard by the fall in demand due<br />
to the crisis. The project benefited from<br />
a KRW200m (£130,000) donation from<br />
the H<strong>op</strong>e Bridge Korea Disaster Relief<br />
Association. A total of 54 local restaurants<br />
prepared lunch boxes for 2,442 children,<br />
which were distributed through 110 local<br />
children’s centres.<br />
In response to the crisis, i<strong>Co</strong><strong>op</strong> is<br />
encouraging home working, where<br />
possible, and provided employees<br />
with two weeks worth of food that can<br />
boost their immunity. Prevention is<br />
also an important area of work for the<br />
retailer, which last year launched a<br />
Natural Dream Food Cure & Research<br />
Foundation. The foundation runs a<br />
medical clinic and a healing centre where<br />
members can take part in programmes<br />
designed to promote healthy eating and<br />
exercising. The initiative aims to prevent<br />
the devel<strong>op</strong>ment of lifestyle-related<br />
diseases such as diabetes and high blood<br />
pressure, which have been fatal for some<br />
of those who contracted the coronavirus.<br />
iCOOP says it expects its business to<br />
help members protect their health in<br />
the future.<br />
To show solidarity with the rest<br />
of the movement, individual co-<strong>op</strong>s<br />
and Korean federations have joined a<br />
network of 56 organisations to form a<br />
Social Economy Response Headquarters<br />
on <strong>Co</strong>vid-19. Among those joining the<br />
network are i<strong>Co</strong><strong>op</strong>, the Korea Federation<br />
of Workers’ <strong>Co</strong><strong>op</strong>eratives and the National<br />
<strong>Co</strong><strong>op</strong>eratives Association.<br />
Initial research conducted by the Korea<br />
Social Economy Network between 10 and<br />
19 March showed that the sector is finding<br />
it difficult to maintain the same level of<br />
staff payment due to a decrease in sales.<br />
Around 80% of social enterprises taking<br />
part in the survey said the labour cost was<br />
the most burdensome (80%). However,<br />
55% also said they did not plan to adjust<br />
their staff’s employment status.<br />
To address the problem, on 27 March the<br />
Social Economy Response Headquarters<br />
created an Employment Solidarity Fund<br />
to raise KRW1bn (£660,693).<br />
Financial support will also be<br />
available for Korean co-<strong>op</strong>s through<br />
a Disaster Solidarity Response Fund<br />
launched by the Korea Social Value and<br />
Solidarity Foundation. <strong>Co</strong>-<strong>op</strong>s and social<br />
enterprises affected by the crisis could<br />
apply for funding until 8 April. This<br />
was in the form of a loan of less than<br />
KRW10 million (£6,569), with an annual<br />
interest of 1.5%, and a one-year lump<br />
sum repayment.<br />
To qualify for loans, co-<strong>op</strong>s and social<br />
enterprises have to have suffered or expect<br />
a fall in profit of 50% or more, compared to<br />
the average of the previous three months<br />
or the same period a year ago.<br />
16 | MAY <strong>2020</strong>
GLOBAL<br />
Woccu welcomes <strong>Co</strong>vid-19 flexibility from international regulators<br />
International standard-setting bodies<br />
have issued guidance to assist financial<br />
institutions in dealing with the<br />
<strong>Co</strong>vid-19 crisis.<br />
The World <strong>Co</strong>uncil of Credit Unions<br />
(Woccu) welcomed the flexible approach,<br />
which it has long been campaigning for.<br />
It says regulatory flexibility enables credit<br />
unions to meet the financial needs of their<br />
members during the crisis.<br />
Responding to the crisis, the Basel<br />
<strong>Co</strong>mmittee on Banking Supervision<br />
provided relief to help financial<br />
institutions c<strong>op</strong>e with the impact of<br />
<strong>Co</strong>vid-19 on the global banking system, by<br />
delaying deadlines for the implementation<br />
of the Basel III framework. Furthermore,<br />
the committee issued a statement<br />
highlighting that supervisory authorities<br />
had additional flexibility to undertake<br />
further measures to alleviate the financial<br />
stability impact of the pandemic.<br />
Woccu is urging national-level<br />
regulators to take note of this guidance<br />
and similarly allow for flexibility that<br />
will enable credit unions to serve their<br />
members during the crisis.<br />
Likewise, the G20’s Financial Stability<br />
Board published a statement in which<br />
it encouraged authorities and financial<br />
institutions to make use of the flexibility<br />
within existing international standards to<br />
provide continued access to funding for<br />
market participants and for businesses and<br />
households facing temporary difficulties<br />
from <strong>Co</strong>vid-19, and to ensure that capital<br />
and liquidity resources in the financial<br />
system are available where they are needed.<br />
The International Financial Reporting<br />
Standards Foundation, which oversees<br />
the International Accounting Standards<br />
Board, has also released guidance on how<br />
to account for expected credit losses in<br />
|the light of current uncertainty resulting<br />
from the pandemic.<br />
“We are pleased to see the international<br />
standard setting bodies utilising their<br />
tools to provide much needed flexibility<br />
and guidance so our credit unions can<br />
continue to serve the needs of their<br />
members,” said Andrew Price, Woccu<br />
vice president of advocacy. “The guidance<br />
issued provides the basis for nationallevel<br />
regulators to likewise implement<br />
conforming accommodations.”<br />
IRELAND<br />
Irish credit unions provide funding to charities fighting <strong>Co</strong>vid-19<br />
Dundalk and Cuchullain credit unions are<br />
offering financial support to organisations<br />
that are putting the needs of others ahead<br />
of their own.<br />
Dundalk Credit Union has repurposed<br />
its <strong>Co</strong>mmunity Support Fund as a <strong>Co</strong>vid-19<br />
<strong>Co</strong>mmunity Response Fund. Alongside<br />
Cuchullain Credit Union it will offer<br />
financial assistance to organisations like<br />
Cú Chulainn Blood Bikes, a local voluntary<br />
charity that provides a transportation<br />
service for blood, human tissue, patient<br />
records and human infant milk; Meals on<br />
Wheels, which delivers meals to individuals<br />
unable to purchase or prepare them; and<br />
Women’s Aid Dundalk, which supports<br />
women who are living, or who have lived<br />
with domestic violence.<br />
Dundalk CEO Billy Doyle said: “We see<br />
the true strength of community in times<br />
of challenge and uncertainty, and over<br />
the years we have witnessed the pe<strong>op</strong>le<br />
of Dundalk, and indeed across <strong>Co</strong> Louth,<br />
rally in crisis, responding with resilience<br />
and solidarity, and one of these times is<br />
upon us.”<br />
Cuchullain CEO Brigene Litchfield<br />
added: “<strong>Co</strong>mmunity is at the heart of the<br />
credit union movement, and we are happy<br />
to play our part to help the wider Dundalk<br />
community to stay safe and safely navigate<br />
these uncharted waters.”<br />
MAY <strong>2020</strong> | 17
USA<br />
Worker co-<strong>op</strong><br />
sector hails growth rate<br />
of 25 firms a year<br />
A report by the Democracy at Work<br />
Institute (DAWI) and the US Federation of<br />
Worker <strong>Co</strong><strong>op</strong>eratives (USFWC) confirms<br />
steady growth in the number of worker<br />
co-<strong>op</strong>eratives across the country.<br />
The 2019 Worker <strong>Co</strong><strong>op</strong>erative State of<br />
the Sector covers six years of business<br />
progress. It shows that the rate of new<br />
start-ups each year remains stable at<br />
about 25 new firms annually, while the<br />
number of businesses that have converted<br />
to employee ownership has grown slightly.<br />
According to the publication, the<br />
average wage paid at all reporting worker<br />
co-<strong>op</strong>eratives is US$19.67 (£15.95) – more<br />
than $7 (£5.68) higher than the minimum<br />
wage in the 13 states with the most<br />
worker co-<strong>op</strong>eratives.<br />
Worker co-<strong>op</strong>s that distribute surplus<br />
to members distribute a median total<br />
dividend of $190,890 (£154,765) across<br />
the membership each year and an average<br />
distribution of S$8,241 (£6,681) to each<br />
worker owner.<br />
The report shows that worker<br />
co-<strong>op</strong>s also continue to prioritise the<br />
reduction of internal inequality. The<br />
sector maintains a 2-to-1 pay ratio between<br />
highest paid and lowest paid workers. By<br />
contrast, the average large US corporation<br />
has a CEO-to-worker pay ratio of 303-to-1.<br />
The sector includes 465 known worker<br />
co-<strong>op</strong>s with 6,454 members and an<br />
estimated revenue of $505m (£409m).<br />
They span across a variety of sectors,<br />
from childcare and homecare to retail and<br />
professional services.<br />
The report shows that worker co-<strong>op</strong>s<br />
have a higher than average success rate.<br />
Those that are 6-10 years old have a 25.6%<br />
success rate while those over 26 years old<br />
have a 14.7% success rate. By comparison,<br />
US small businesses that are 6-10 years<br />
old have an 18.7% success rate while<br />
those older than 26 years have an 11.9%<br />
success rate.<br />
The report also mentions some of<br />
the challenges faced by the sector, as<br />
identified by co-<strong>op</strong>s themselves. These<br />
include benefits-related challenges, such<br />
as being able to provide health insurance<br />
and other work benefits, as well as nonbenefits<br />
challenges such as administrative<br />
burdens and business planning. The US<br />
Federation of Worker <strong>Co</strong><strong>op</strong>eratives reports<br />
that access to capital is also one of the<br />
most common challenges for new and<br />
existing worker co-<strong>op</strong>s.<br />
In terms of demographics, the report<br />
reveals that female workers and workers<br />
of colour make up the majority of the<br />
employees in worker co-<strong>op</strong>s.<br />
The full report can be accessed by<br />
completing a short form at institute.co<strong>op</strong>.<br />
5<br />
Los Angeles<br />
USA<br />
Power wholesaler Tri-State Generation<br />
and Transmission Association Minneapolis 10 – a group<br />
of 43 US electric co-<strong>op</strong>s – has agreed to<br />
allow Delta-Montrose Electric Madison Association<br />
12<br />
to depart Boulder – 6 with terms that will cost its<br />
former member $136.5m (£108m).<br />
Tri-State has Denver been 11 embroiled in disputes<br />
5 Chicago<br />
with several of its members over the rules<br />
of departure, as co-<strong>op</strong>s look to leave<br />
contracts with the wholesale supplier<br />
to pursue their own Austinrenewable 7 sources<br />
of energy.<br />
Members and campaigners have for<br />
some time been critical of Tri-State’s use<br />
of fossil sources of energy, although it<br />
56<br />
has recently declared plans to move to<br />
renewable generation.<br />
If regulators approve the deal, Delta-<br />
Montrose will give up a combination of<br />
equipment, assets and patronage capital<br />
to leave the power wholesaler at the<br />
end of June.<br />
Tri-State said recently that it is<br />
implementing a new formula for<br />
calculating the cost for co-<strong>op</strong>s to leave<br />
their contracts early, but this exit<br />
18 | MAY <strong>2020</strong><br />
Tri-State agrees exit fee for Delta-Montrose 5 electric co-<strong>op</strong>erative<br />
19<br />
agreement was not devel<strong>op</strong>ed according<br />
5 Detroit<br />
Boston Area<br />
to that formula.<br />
7<br />
“The withdrawal agreement aligns<br />
Worcester<br />
with our settlement and is a 12 negotiated<br />
Springfield<br />
agreement unique to DMEA,” said<br />
5 Cleveland<br />
Tri-State CEO Duane Highley 58 New York in<br />
a prepared statement.<br />
Asheville 5<br />
Across Rural U.S.<br />
Philadelphia<br />
2019<br />
WORKER COOPERATIVES<br />
5<br />
Durham<br />
9<br />
8<br />
5<br />
Baltimore<br />
Washington D.C.<br />
50 Puerto Rico<br />
Portland Area<br />
Meanwhile, a <strong>Co</strong>lorado judge on<br />
public utilities law was due to hold<br />
a teleconference in April to discuss<br />
scheduling and other issues arising from<br />
efforts by two more co-<strong>op</strong>s, La Plata<br />
Electric Association and United Power, to<br />
leave Tri-State contracts.
ITALY<br />
Platform co-<strong>op</strong>erative Fairbnb launches <strong>Co</strong>vid-19 relief campaign<br />
Platform co-<strong>op</strong> start-up Fairbnb has<br />
launched its <strong>Co</strong>vid-19 relief campaign<br />
#IStayHome and #TravelTomorrow,<br />
which sees proceeds from future trips<br />
immediately diverted to support doctors,<br />
nurses and health personnel in the<br />
co-<strong>op</strong>’s active communities in Italy.<br />
Fairbnb – which <strong>op</strong>erates a sustainable,<br />
co-<strong>op</strong>erative alternative to lettings<br />
platforms like Airbnb – h<strong>op</strong>es that by<br />
postponing booked trips to a later date,<br />
the sustainable tourism industry in Italy<br />
will be in a better place to recover when<br />
the effects of the coronavirus begin<br />
to subside.<br />
It says the fall in bookings is “placing<br />
a burden on the shoulders of the owners<br />
and managers of the pr<strong>op</strong>erties, and<br />
families who integrate their income<br />
without damaging the social fabric of<br />
their city”.<br />
On its website, the platform co-<strong>op</strong> said:<br />
“A simple message for future guests of our<br />
cities: by booking today, while we stay at<br />
home, we can immediately contribute to<br />
the fight against coronavirus and at the<br />
same time plan a sustainable holiday,<br />
helping Italy to recover.<br />
“Like never before, the society in which<br />
we live seems fragile: economic and<br />
environmental crises and now the spectre<br />
of a pandemic that is eroding our habits<br />
and safety. Tourism, among all sectors,<br />
has proven to be the most vulnerable.”<br />
But, it adds, many hosts are<br />
demonstrating a great civic sense, by<br />
making apartments available to staff of<br />
Italian healthcare facilities or returning<br />
them to the residential rental market.<br />
Fairbnb – still in its pilot phase – says<br />
it is working with authorities in Genoa,<br />
Bologna and Venice to divert funds to<br />
organisations tackling <strong>Co</strong>vid-19, and<br />
is looking to expand this initiative to<br />
Amsterdam, Barcelona and Valencia.<br />
In Bologna, the part of the commissions<br />
for the projects will be donated to the<br />
Sant’Orsola Foundation.<br />
In Venice, the commissions will be<br />
donated to the current account activated<br />
by the Veneto Region for the “<strong>Co</strong>ronavirus<br />
emergency fundraising”.<br />
CANADA<br />
Fledgling media<br />
co-<strong>op</strong> makes temporary<br />
lay-offs due to <strong>Co</strong>vid-19<br />
A Canadian co-<strong>op</strong>erative that publishes<br />
six daily newspapers is to temporarily lay<br />
off 143 employees and cease print editions<br />
during the week.<br />
The measures are designed to help it<br />
c<strong>op</strong>e with a dr<strong>op</strong> in advertising revenue<br />
caused by the <strong>Co</strong>vid-19 outbreak.<br />
The co-<strong>op</strong>’s member publications will<br />
continue to produce a Saturday edition<br />
but will be unable to print the Monday<br />
to Friday publications. However, the<br />
newspapers will continue to publish<br />
online stories throughout the week.<br />
Set up in August 2019, CN2i (<strong>Co</strong><strong>op</strong>érative<br />
nationale de l’information indépendante)<br />
is the only group of co-<strong>op</strong>erative<br />
publications in Quebec and the largest<br />
in the country. It brings together six local<br />
papers with 360 employee-owners. The<br />
six publications used to belong to Groupe<br />
Capitales Médias (GCM), which had to go<br />
through financial restructuring. GCM’s<br />
shares were acquired by the co-<strong>op</strong> in<br />
December 2019 and each of the six papers<br />
is now a co-<strong>op</strong>erative in its own right.<br />
Employees invested 5% of their salaries<br />
in the collective buyout. They also received<br />
loans totalling CA$12.3m and provincial<br />
and federal tax credits. Some of the loans<br />
came from Desjardins and other financial<br />
co-<strong>op</strong>s and solidarity funds. Local<br />
residents have also chipped in to support<br />
their papers. The six co-<strong>op</strong>s raised CA$3m<br />
(£1.7m) from their communities.<br />
Other media organisations in Canada<br />
are facing similar challenges.<br />
In March the federal government<br />
announced it had set up the Independent<br />
Advisory Board on Eligibility for<br />
Journalism Tax Measures to decide which<br />
publications could benefit from tax reliefs<br />
to c<strong>op</strong>e with the crisis.<br />
MAY <strong>2020</strong> | 19
GLOBAL<br />
International Day of <strong>Co</strong>-<strong>op</strong>eratives focuses on climate emergency<br />
The International <strong>Co</strong><strong>op</strong>erative Alliance<br />
(ICA) has announced climate change as<br />
the focus of the <strong>2020</strong> International Day of<br />
<strong>Co</strong>-<strong>op</strong>eratives (4 July).<br />
The day, which sees events and<br />
campaigns around the world raise<br />
awareness of co-<strong>op</strong>eratives, is celebrated<br />
annually on the first Saturday of July. This<br />
year’s theme, <strong>Co</strong>-<strong>op</strong>eratives for Climate<br />
Action, was chosen to support the United<br />
Nations’ Sustainable Devel<strong>op</strong>ment Goal<br />
(SDG) 13 on Climate Action.<br />
“Our common home is in danger,” said<br />
ICA president Ariel Guarco. “There are<br />
methods of production and consumption<br />
that are constantly attacking the<br />
environment. We don’t have much time to<br />
reverse this situation.<br />
“We must act now, with our values<br />
and principles, to demonstrate on a<br />
global scale that it is possible to devel<strong>op</strong><br />
an economy with social inclusion and<br />
protection of natural resources.”<br />
The ICA will also publish a <strong>Co</strong><strong>op</strong>erative’s<br />
<strong>Co</strong>mmunications Guide in English,<br />
Spanish and French to help co-<strong>op</strong>s spread<br />
the message.<br />
In addition, the ICA is launching an<br />
interactive map to showcase action by the<br />
movement to tackle climate change.<br />
The map is being devel<strong>op</strong>ed in<br />
collaboration with Dot<strong>Co</strong><strong>op</strong>. <strong>Co</strong>-<strong>op</strong>s<br />
wishing to participate can get in touch<br />
with Dot<strong>Co</strong><strong>op</strong> to share information<br />
about their recent campaigns, such as<br />
planting trees, devel<strong>op</strong>ing community<br />
solar projects or helping schools recycle.<br />
The map will also include virtual<br />
events, such as fundraisers, talks, and<br />
awareness events.<br />
To be included this year, co-<strong>op</strong>s can<br />
send an email to tom@identity.co<strong>op</strong> and<br />
provide the following information:<br />
• Name and complete address of the<br />
organisation<br />
• A description of any initiatives<br />
or events they are organising or<br />
participating in to battle climate<br />
change (maximum 800 words).<br />
• Pictures<br />
• Social media links and website<br />
URLs<br />
<strong>Co</strong>-<strong>op</strong>s can also take the message<br />
to social media, using the hashtags<br />
#<strong>Co</strong><strong>op</strong>sDay and #<strong>Co</strong><strong>op</strong>s4ClimateAction to<br />
promote the day.<br />
The theme of the International Day<br />
was chosen by the <strong>Co</strong>mmittee on the<br />
Promotion of <strong>Co</strong>-<strong>op</strong>eratives (<strong>Co</strong>pac),<br />
a multi-stakeholder partnership of<br />
global public and private institutions,<br />
of which the ICA is a founding member.<br />
<strong>Co</strong>pac has been setting the theme of<br />
the International Day of <strong>Co</strong>-<strong>op</strong>eratives<br />
since 1995.<br />
20 | MAY <strong>2020</strong>
USA<br />
National<br />
<strong>Co</strong>+<strong>op</strong> Grocers<br />
announces Climate<br />
<strong>Co</strong>llaborative Awards<br />
National <strong>Co</strong>+<strong>op</strong> Grocers (NCG), a US<br />
co-<strong>op</strong>erative owned by food co-<strong>op</strong>s, has<br />
announced the winners of its annual<br />
Climate Awards, for initiatives that<br />
contribute to tackling climate change.<br />
In the Outstanding <strong>Co</strong>mpany category<br />
the winners were Outpost Natural<br />
Foods and Stonyfield Organic. A chain<br />
of community grocery stores in the<br />
Milwaukee area, Outpost Natural Foods<br />
is owned by 23,000 members, who are<br />
local residents. The co-<strong>op</strong> has committed<br />
to eliminating the use of petroleumbased<br />
single-use plastic in its stores<br />
by 2022, working with the Plastic-free<br />
Milwaukee <strong>Co</strong>alition and Wisconsin state<br />
government. In addition to its efforts to<br />
reduce plastic waste, the co-<strong>op</strong> also offsets<br />
101% of its store electricity use and, in the<br />
past year alone, reduced its emissions<br />
by 13%.<br />
With half of its emissions coming<br />
from agriculture, Stonyfield Organic<br />
is helping farmers improve soil health<br />
and increase carbon sequestration<br />
through the devel<strong>op</strong>ment of an <strong>op</strong>en<br />
source online platform their farmers can<br />
access to collaborate and share success.<br />
The business is also sharing its Open<br />
Technology Ecosystem for Agricultural<br />
Management platform with any farmers<br />
wishing to ad<strong>op</strong>t more climate-friendly<br />
soil health practices.<br />
The Outstanding Value Chain Awards<br />
category features three winners: General<br />
Mills, Hummingbird Wholesale and<br />
Imlak’esh Organics. Just like Stonyfield<br />
Organic, these are not co-<strong>op</strong>s; but<br />
they help co-<strong>op</strong>s in agriculture ad<strong>op</strong>t<br />
environmentally friendly practices.<br />
The awards are run in partnership<br />
with Climate <strong>Co</strong>llaborative, a coalition of<br />
companies with a shared goal of climate<br />
action of which NCG is a supporter.<br />
Merger and acquisitions in the US agri co-<strong>op</strong> sector<br />
Domains.co<strong>op</strong> to cease hosting services<br />
Two agri co-<strong>op</strong>s in Nebraska which<br />
provide feed, fuel and agronomy services<br />
have announced a merger. Members of<br />
the Farmers Ranchers <strong>Co</strong><strong>op</strong>erative of<br />
Ainsworth voted by a majority of 88% to<br />
approve unification with Central Valley<br />
Ag of York. The unified co-<strong>op</strong>erative will<br />
retain the Central Valley Ag name with<br />
headquarters in York and Carl Dickinson<br />
serving as president and CEO.<br />
Domains.co<strong>op</strong> will no longer be able<br />
to support email and hosting services,<br />
including website builders, from 1 <strong>May</strong>.<br />
<strong>Co</strong>-<strong>op</strong>s using Domains.co<strong>op</strong> for these<br />
services will have to look for alternative<br />
providers. Domains.co<strong>op</strong> said it can no<br />
longer support these services because<br />
its email and hosting provider is<br />
discontinuing these products.<br />
Shareholders of the <strong>Co</strong>-<strong>op</strong> Bank of Kenya paid divi<br />
Shareholders of the <strong>Co</strong>-<strong>op</strong>erative Bank of<br />
Kenya were paid their annual dividends<br />
on 23 April, which amounted to a total<br />
value of Kshs5.9bn (£44m). The bank<br />
h<strong>op</strong>es the dividend will provide relief to<br />
shareholders at a time of severe economic<br />
hardship caused by the <strong>Co</strong>vid-19<br />
pandemic. It also donated £755,000 to a<br />
<strong>Co</strong>vid-19 relief fund.<br />
Fonterra warns farmers about global uncertainty<br />
Dairy giant Fonterra has emailed<br />
its farmer members, advising them<br />
to consider the level of global<br />
uncertainty when making important<br />
on-farm decisions. The co-<strong>op</strong>erative said<br />
it would retain its forecast milk payment<br />
to them of NZ$7-$7.60 per kgMS for the<br />
2019-<strong>2020</strong> season.<br />
Land O’Lakes rebrand focuses on co-<strong>op</strong> credentials<br />
US agricultural co-<strong>op</strong> Land O’Lakes has<br />
ad<strong>op</strong>ted new packaging for its products,<br />
which showcases its co-<strong>op</strong>erative ethos.<br />
First unveiled in February, the new<br />
packaging includes a new front-ofpackage<br />
design that features the phrase<br />
“Farmer-Owned” above the LAND O<br />
LAKES brandmark.<br />
MAY <strong>2020</strong> | 21
YOUR VIEWS<br />
A note from ICA president Ariel Guarco<br />
TOWARDS A COMMON DESTINY WITH CO-OPERATIVE VALUES AND PRINCIPLES<br />
Humanity is involved in a tremendous<br />
pandemic with a high cost of human<br />
lives. And it has come to this moment<br />
in conditions of extreme fragility due to<br />
the enormous prevailing inequality and<br />
the deep environmental imbalance that<br />
human action is causing.<br />
A small number of pe<strong>op</strong>le hold a<br />
patrimony equivalent to half of the world<br />
p<strong>op</strong>ulation. World debt (sovereign,<br />
household and corporate) is equivalent<br />
to more than three times the world<br />
gross product. A linear production and<br />
consumption mode, without brakes,<br />
will take us to a point of no return in just<br />
a decade.<br />
But the “discard culture” shows its<br />
limits today. The <strong>Co</strong>vid-19 pandemic<br />
reveals our fragility and it indicates that<br />
we are still very far from the economic,<br />
social and environmentally sustainable<br />
devel<strong>op</strong>ment that co-<strong>op</strong>s agreed to seek<br />
in the 2030 Agenda. The question is: How<br />
far will we be able to twist our course as a<br />
civilization?<br />
The co-<strong>op</strong>erative economy, on a global<br />
scale, integrates more than a billion<br />
members and generates employment for<br />
10% of the world’s employed p<strong>op</strong>ulation.<br />
The turnover of the 300 largest<br />
co-<strong>op</strong>eratives is comparable to the gross<br />
domestic product of the sixth world<br />
economy.<br />
The entire co-<strong>op</strong>erative movement is<br />
actively involved in the collective effort<br />
required to answer to a health crisis that has<br />
rapidly turned into an economic and social<br />
crisis. When it comes to co-<strong>op</strong>eration,<br />
we pe<strong>op</strong>le first appeal to institutions<br />
whose ordering principle is mutual aid;<br />
to institutions whose logic, precisely, is<br />
to make solidarity action more effective in<br />
responding to common problems.<br />
Today we want to pr<strong>op</strong>ose to society<br />
in general that co-<strong>op</strong>eration is not only<br />
for emergencies. <strong>Co</strong>-<strong>op</strong>eration is the<br />
alternative way to build a fairer, more<br />
balanced and, fundamentally, less fragile<br />
economy in the face of global challenges<br />
such as the pandemic, or the climate crisis<br />
on our horizon.<br />
The competition paradigm tells us that<br />
to have goods and services at the lowest<br />
possible cost requires companies that<br />
have been forced to achieve the highest<br />
efficiency as a result of competition. And<br />
the ordering principle of this competition<br />
is the profit of the capitalist who organises<br />
the company.<br />
For almost two centuries, co-<strong>op</strong>erative<br />
members have ad<strong>op</strong>ted an alternative<br />
path: the co-<strong>op</strong>eration paradigm. We<br />
organise enterprises to satisfy our<br />
common needs; our ordering principle<br />
is not profit, but mutual aid; and our<br />
efficiency is the result of the democratic<br />
control of our members, workers,<br />
consumers or producers.<br />
This isn’t about the market as an empire<br />
of freedom vs. the state as an empire of<br />
equality. The point is our empowerment<br />
as citizens. The ability to guarantee<br />
that the state is at the service of our<br />
freedoms, and the ability to participate<br />
in markets under equity conditions.<br />
Citizen empowerment, in the vision of<br />
co-<strong>op</strong>erativism, is largely based on the<br />
structures of civil society organisations.<br />
It is civil society, autonomous and<br />
democratically organised, which can add<br />
social co-ordination without the need for<br />
authoritarian control.<br />
No surveillance system is useful if we<br />
do not have responsible and organised<br />
citizens who control and democratize<br />
the exercise of public power. Nor does<br />
the functioning of the markets reach to<br />
guarantee freedom, if we do not have civil<br />
society organisations that democratise<br />
economic power.<br />
This is the same thing that the P<strong>op</strong>e<br />
Francis has told us in his recent Easter<br />
Letter to the P<strong>op</strong>ular Movements: “My<br />
h<strong>op</strong>e is that governments understand that<br />
technocratic paradigms (whether statecentred<br />
or market-driven) are not enough<br />
to address this crisis or the other great<br />
problems affecting humankind. Now more<br />
than ever, persons, communities and<br />
pe<strong>op</strong>les must be put at the centre, united<br />
to heal, to care and to share.”<br />
This crisis confronts us with historical<br />
challenges. And we need to understand<br />
that no one can be saved alone from a<br />
global pandemic like that of <strong>Co</strong>vid-19, but,<br />
moreover, that no one can be saved alone<br />
from a wandering destiny to which we are<br />
going as a civilisation worldwide.<br />
Those of us who daily build an economy<br />
based on democracy, solidarity and social<br />
justice, know that it is possible to generate<br />
devel<strong>op</strong>ment with social inclusion and<br />
care for the environment. Many global<br />
leaders share this vision. That is why I<br />
predict, despite the pain and uncertainty<br />
that are going through us today, that we<br />
will be able to forge a new global era, a<br />
common destiny with co-<strong>op</strong>erative values<br />
and principles.<br />
Have your say<br />
Add your comments to our stories<br />
online at thenews.co<strong>op</strong>, get in touch<br />
via social media, or send us a letter.<br />
If sending a letter, please include<br />
your address and contact number.<br />
Letters may be edited and no longer<br />
than 350 words.<br />
<strong>Co</strong>-<strong>op</strong>erative <strong>News</strong>, Holyoake<br />
House, Hanover Street,<br />
Manchester M60 0AS<br />
letters@thenews.co<strong>op</strong><br />
@co<strong>op</strong>news<br />
<strong>Co</strong>-<strong>op</strong>erative <strong>News</strong><br />
22 | MAY <strong>2020</strong>
CO-OP WORLD CUP<br />
During the <strong>Co</strong>vid-19 pandemic we’ve<br />
seen widespread co-<strong>op</strong>eration in our<br />
communities and a renewed ethos behind<br />
bringing pe<strong>op</strong>le together.<br />
It was in this climate that I came up with<br />
the idea for the <strong>Co</strong>-<strong>op</strong> Twitter World Cup as<br />
a way to bring co-<strong>op</strong>erators together and<br />
to provide some light relief among the<br />
daily anxiety coronavirus has caused.<br />
It was a simple idea, but one with more<br />
power and a greater impact that I ever<br />
envisioned.<br />
Working with a fellow young co-<strong>op</strong>erator,<br />
Michael Bell, we began shortlisting the<br />
co-<strong>op</strong>eratives to participate in the world<br />
cup from a list of the 100 largest UK<br />
co-<strong>op</strong>s by membership. We knew we<br />
wanted to raise awareness of the<br />
breadth of the sector and show how<br />
co-<strong>op</strong>erative values and principles can be<br />
applied throughout the economy, so we<br />
tried to balance our shortlist to include<br />
organisations from a wide geographical<br />
spread, of different sizes and from<br />
different parts of the economy.<br />
We ended up with 32 co-<strong>op</strong>s, and as<br />
we entered the <strong>op</strong>ening group stage of<br />
the competition it became clear that it<br />
was going to be bigger than I expected<br />
as the official accounts of co-<strong>op</strong>eratives<br />
began to tweet about the competition<br />
and heavy hitters from the world of<br />
co-<strong>op</strong>eration became personally involved.<br />
It was heart-warming to see the<br />
competition bringing pe<strong>op</strong>le together,<br />
creating friendly rivalries and<br />
showing our movement at its best as<br />
individuals and businesses engaged<br />
despite being knocked out of the<br />
competition; often co-<strong>op</strong>erating with<br />
other competitors to boost support for<br />
smaller co-<strong>op</strong>.<br />
It was a fantastic competition which<br />
concluded with the UK’s largest society,<br />
the <strong>Co</strong>-<strong>op</strong> Group, facing off against the<br />
smaller and less well-known Revolver,<br />
a Fairtrade coffee co-<strong>op</strong>. Despite a slow<br />
start for Revolver it soon became clear that<br />
co-<strong>op</strong>erators from many smaller co-<strong>op</strong>s<br />
were coming to their aid. It was a dead 50-<br />
50 split for a while, but congratulations to<br />
the <strong>Co</strong>-<strong>op</strong> Group, which narrowly won out.<br />
It was a thrilling final to watch and one<br />
which helped raise the profile of Revolver<br />
and spark awareness of its products to<br />
a larger retail co-<strong>op</strong>erative.<br />
I h<strong>op</strong>e to work with fellow co-<strong>op</strong>erators<br />
to run another <strong>Co</strong>-<strong>op</strong>erative World Cup,<br />
perhaps making it a larger, annual<br />
event. Already I have been approached<br />
by a number of co-<strong>op</strong>s wishing to help<br />
in the future – including by helping to<br />
further promote the event and to create<br />
a truly global contest with the inclusion<br />
of international co-<strong>op</strong>eratives from<br />
more sectors.<br />
Stephen Stanners<br />
Labour and <strong>Co</strong>-<strong>op</strong> councillor,<br />
Seaton Valley <strong>Co</strong>mmunity <strong>Co</strong>uncil<br />
WILL KEIR STARMER PICK HIS WAY<br />
THROUGH THE POLITICAL MINEFIELD OF<br />
COMMON OWNERSHIP?<br />
Keir Starmer said at a recent mass<br />
Zoom with Labour party members: “The<br />
economy as it was (pre-<strong>Co</strong>vid) was not<br />
working. We need common ownership,<br />
with pe<strong>op</strong>le having a say how water,<br />
buses, etc are run.” Is his use of “common<br />
ownership” significant? He is a lawyer.<br />
He chose to use this politically laden<br />
phrase. He used it in his leadership<br />
campaign too.<br />
The old Labour Party Clause Four said<br />
“To secure for the workers by hand or by<br />
brain the full fruits of their industry and<br />
the most equitable distribution thereof<br />
that may be possible upon the basis of<br />
the common ownership of the means of<br />
production, distribution, and exchange.”<br />
We protested in 1994, when Tony Blair<br />
pr<strong>op</strong>osed replacing it, that removing the<br />
reference removed common ownership<br />
worker co-<strong>op</strong>s from Labour policy. But<br />
Blair wanted to expunge state ownership<br />
and replaced it with something anodyne<br />
and unmemorable.<br />
The original Clause Four was written<br />
for the Labour constitution by the Webbs<br />
in 1919 to encompass various ideas<br />
for promoting economic democracy by<br />
factions in the party, guild socialism,<br />
syndicalism, worker co-<strong>op</strong>eratives and<br />
others. <strong>Co</strong>nsumer co-<strong>op</strong>eratives were no<br />
problem but worker-owned industry was an<br />
altogether more tricky concept. There was<br />
no clear agreement how the party should<br />
advance this cause. Unfortunately, the<br />
Webbs, who fundamentally disagreed with<br />
worker control, and other leading lights<br />
in the party, became infatuated with the<br />
Soviet Union and by the 1930s, common<br />
ownership was conflated with state<br />
ownership, corporate nationalisation.<br />
Until John McDonnell, (apart from Tony<br />
Benn in the 70s), Labour grandees<br />
continued to avoid the tricky problem and,<br />
it has to be said, so did the <strong>Co</strong>-<strong>op</strong>erative<br />
Party. Will Keir Starmer want to pick his way<br />
through the political minefield of worker<br />
control and common ownership? The 1976<br />
Industrial <strong>Co</strong>mmon ownership Act remains<br />
on the statute book and legally defines<br />
common ownership worker co-<strong>op</strong>eratives.<br />
This is not a vague concept.<br />
Interestingly, common ownership is a<br />
theme in Trotskyite ideology and Trotsky<br />
described workers’ control, in typically<br />
patronising fashion, as ‘the schoolroom<br />
of socialism’. The old pre-<strong>Co</strong>-<strong>op</strong>eratives<br />
UK worker co-<strong>op</strong> federation, ICOM – The<br />
Industrial <strong>Co</strong>mmon Ownership Movement<br />
– was so named when a very energetic<br />
young Trotskyite co-<strong>op</strong> enthusiast,<br />
Manuella Sykes, persuaded the founders<br />
to use the name, so I was told by an<br />
attendee at the founding meeting in 1970,<br />
prompting a walk out by Ernest Bader and<br />
his fellow Quakers who had been expected<br />
to fund it.<br />
<strong>Co</strong>mmon Ownership is a simple concept,<br />
that assets should be collectively, not<br />
individually, owned and controlled. In<br />
these days of a worldwide revival in<br />
the practical politics of the ‘commons’<br />
we should also be reviving it as one<br />
of our solutions to the tragedy of the<br />
corporations, out of control, answerable<br />
to no one, and destroying our world like<br />
greedy invaders from another planet.<br />
Bob Cannell<br />
via email<br />
MAY <strong>2020</strong> | 23
LORD THOMAS EDWARD ‘TED’ GRAHAM PASSED AWAY ON 21 MARCH <strong>2020</strong>, A WEEK BEFORE HIS 95TH BIRTHDAY. WE PUBLISHED<br />
A FULL OBITUARY LAST ISSUE – BUT HERE ARE A FEW MORE OF THE TRIBUTES WE HAVE RECEIVED.<br />
Lord Ted had co-<strong>op</strong>eration and<br />
co-<strong>op</strong>erative values running through his<br />
veins as though it were Blackpool rock.<br />
He was the embodiment of the lasting<br />
impact of co-<strong>op</strong>erative education, a<br />
co-<strong>op</strong>erator who never forgot his roots<br />
and the co-<strong>op</strong>erative organisations that<br />
helped him devel<strong>op</strong> into one of the most<br />
influential co-<strong>op</strong>erators of his generation.<br />
His mantra, “politics is the art of the<br />
possible”, could easily be interpreted as<br />
unprincipled, but with Lord Ted it simply<br />
meant looking for common ground without<br />
undermining core values. Nowhere was<br />
this demonstrated better than in the<br />
report of the Independent Review of the<br />
<strong>Co</strong>-<strong>op</strong>erative <strong>Co</strong>llege he chaired in 1994.<br />
“We started our journey towards the<br />
pr<strong>op</strong>osals we submit from the premise<br />
that co-<strong>op</strong>erators are different and need to<br />
both promote and explain that difference,”<br />
he said. “It is in that context that we have<br />
to set the need for, and the place of,<br />
co-<strong>op</strong>erative educational activities,<br />
including the <strong>Co</strong>-<strong>op</strong>erative <strong>Co</strong>llege. The<br />
provision of specifically co-<strong>op</strong>erative<br />
education has always been a major<br />
objective of the <strong>Co</strong>llege Trust. This should<br />
remain as its enduring function in the<br />
changed circumstances of both the <strong>Co</strong>llege<br />
and the consumer co-<strong>op</strong> movement”.<br />
He spent a lifetime advocating and<br />
promoting co-<strong>op</strong>eration with grit and<br />
determination behind a warm endearing<br />
smile. A remarkable man, a remarkable<br />
co-<strong>op</strong>erator.<br />
Mervyn Wilson<br />
Former principal and chief executive of the<br />
<strong>Co</strong>-<strong>op</strong>erative <strong>Co</strong>llege<br />
Only just catching up with the sad news Ted<br />
Graham died last month, rightly described<br />
as a giant of co-<strong>op</strong>eration. He knew my<br />
dad (and uncles) in the British Federation<br />
of Young <strong>Co</strong>-<strong>op</strong>erators and remained a<br />
lifelong friend. He had a great sense of<br />
humour. [I remember him] remarking<br />
the co-<strong>op</strong>erative movement was not very<br />
co-<strong>op</strong>erative and didn’t move much…<br />
Meg Munn<br />
Via Twitter<br />
I first met Ted Graham at the 1985 <strong>Co</strong>-<strong>op</strong><br />
party summer school in St Andrew’s. A<br />
lovely, kind, gentle and caring man with<br />
a nice sense of humour, who has been a<br />
friend ever since. RIP Ted.<br />
Sir Mark Hendrick<br />
Labour and <strong>Co</strong>-<strong>op</strong>erative MP for Preston<br />
I had the privilege to meet Ted Graham<br />
30 years ago when I was a Labour &<br />
<strong>Co</strong>-<strong>op</strong> councillor. He was an icon of the<br />
co-<strong>op</strong>erative movement.<br />
Simon Lydiard<br />
Chair, Vauxhall Labour<br />
Sad to hear the passing of Lord Ted<br />
Graham, a great friend of Usdaw. He<br />
played a significant role in the Sunday<br />
trading campaign.<br />
John Hannett OBE<br />
Former general secretary of USDAW<br />
Immensely sad to hear that Ted Graham,<br />
MP for Edmonton from 1974-1983 and<br />
latterly, Baron Graham of Edmonton, has<br />
passed away. He remained a stalwart of<br />
the <strong>Co</strong>-<strong>op</strong> Party and Labour Party and a<br />
supporter of the cause. He will be sorely<br />
missed by us and many more.<br />
Kate Osamor<br />
Labour & <strong>Co</strong>-<strong>op</strong> MP for Edmonton<br />
I was surprised and saddened to read of<br />
the recent death of Lord Graham (Ted).<br />
I was in correspondence with him last June<br />
following his visit to the house of Lords<br />
which was featured in the <strong>Co</strong>-<strong>op</strong> <strong>News</strong> at<br />
the time. He wrote back to me enclosing<br />
a photograph of himself which I will keep<br />
and treasure.<br />
Having met Ted many years ago during<br />
a NACO <strong>Co</strong>nference I was immediately<br />
struck by his friendly, helpful and<br />
generous nature. Ted was a member of<br />
NACO and supported our union on every<br />
occasion he was asked, and I know<br />
many members would join me in fond<br />
reminiscence of our times together.<br />
I was fortunate to be invited to join Ted<br />
and other NACO colleagues at the House<br />
of Lords when he hosted us and helped us<br />
to form the Funeral Ombudsman service,<br />
which successfully helped both <strong>Co</strong>-<strong>op</strong><br />
Funeral Services and their clients to a<br />
swift and mutually satisfactory conclusion<br />
in cases of complaint or query. This<br />
formation would have been so much more<br />
difficult without the help of our esteemed<br />
“<strong>Co</strong>-<strong>op</strong>erative Lord.”<br />
I know he will be sadly missed, and I<br />
join with the many others who offer their<br />
tributes to such a good friend.<br />
Delma-Rose Yorath<br />
Former president of NACO (the National<br />
Association of <strong>Co</strong>-<strong>op</strong>erative Officials,<br />
which transferred into Usdaw in 2018)<br />
24 | MAY <strong>2020</strong>
Ted was a larger than life figure whose vital<br />
services to co-<strong>op</strong>eratives were delivered<br />
selflessly. He was also a devoted family<br />
man and an excellent companion who<br />
never forgot his Tyneside working class<br />
roots. He will be greatly missed.<br />
In the early 1990s I worked with Ted,<br />
Keith Brading (former chief registrar<br />
of Friendly Societies) and agricultural<br />
co-<strong>op</strong>erator Denis Carter, on an<br />
independent report on Ted’s alma mater,<br />
the <strong>Co</strong>-<strong>op</strong>erative <strong>Co</strong>llege. Ted was devoted<br />
to the <strong>Co</strong>llege and tenaciously defended<br />
its interests within the Group preparing<br />
the report.<br />
During the late 1990s, Ted, Denis<br />
and I worked on a new <strong>Co</strong>-<strong>op</strong>eratives<br />
Bill to reform the law and promote the<br />
co-<strong>op</strong>erative business structure. By<br />
1995, a law reform pr<strong>op</strong>osal had been<br />
devel<strong>op</strong>ed under the auspices of the UK<br />
<strong>Co</strong>-<strong>op</strong>erative <strong>Co</strong>uncil. From 1997 onwards<br />
it was promoted to politicians. For those<br />
interested in the details and origin of<br />
those pr<strong>op</strong>osals and the composition of<br />
the working group that devel<strong>op</strong>ed them,<br />
a 2013 article in the <strong>Co</strong>-<strong>op</strong>erative <strong>News</strong><br />
provides access to many details, including<br />
the full text of the 1995 pr<strong>op</strong>osal (see<br />
bit.ly/3bgMJfV).<br />
Ted was a great political <strong>op</strong>erator and<br />
knew all the key movers and shakers in<br />
the co-<strong>op</strong>erative movement. He used<br />
his access as host to the House of Lords<br />
Dining Room to encourage them to lend<br />
the project their support. A wide range of<br />
co-<strong>op</strong>erative bodies supported the project<br />
– consumer co-<strong>op</strong>s, housing co-<strong>op</strong>s,<br />
agricultural co-<strong>op</strong>s and worker co-<strong>op</strong>s.<br />
Because of his former work as Labour<br />
chief whip in the House of Lords (a role in<br />
which Denis Carter succeeded him) and<br />
his service in government and the House<br />
of <strong>Co</strong>mmons in the 1970s and early 1980s,<br />
Ted was able to <strong>op</strong>en ministerial doors<br />
and gain access, from 1997 onwards, to<br />
a succession of economic secretaries to<br />
HM Treasury – the minister responsible,<br />
then and now, for co-<strong>op</strong>erative legislation.<br />
The <strong>Co</strong>-<strong>op</strong>erative Group, then led by<br />
Sir Graham Melmoth, had financed the<br />
preparation of a draft <strong>Co</strong>-<strong>op</strong>eratives Bill in<br />
advance of the 1997 general election. The<br />
Bill was drafted by Parliamentary agent,<br />
and former Parliamentary draftsperson,<br />
Monica Peto, then of Rees and Freres. Ted<br />
promoted it tirelessly in the early years of<br />
the Blair government.<br />
That work played a major part, together<br />
with the endeavours of Peter Hunt, now of<br />
Mutuo but then general secretary of the<br />
<strong>Co</strong>-<strong>op</strong>erative Party, and of <strong>Co</strong>-<strong>op</strong>eratives<br />
UK, then led by Dame Pauline Green, in<br />
providing a basis for several successful<br />
private members’ bills which, with<br />
cross- party support, achieved many of<br />
the draft bill’s key objectives between<br />
2002 and 2010. In 2014, those efforts<br />
culminated, on the initiative of Ed <strong>May</strong>o<br />
as general secretary of <strong>Co</strong>-<strong>op</strong>eratives UK,<br />
in the consolidation and clarification of<br />
most of the existing legislation in the<br />
<strong>Co</strong>-<strong>op</strong>erative and<strong>Co</strong>mmunity Benefit<br />
Societies Act 2014.<br />
Throughout our time working on those<br />
reforms, Ted displayed all the qualities<br />
to which many others have pointed: a<br />
complete lack of pomposity or sensitivity<br />
about his status; a ready jocularity;<br />
excellent social skills; and, above all,<br />
total dedication to furthering the interests<br />
of co-<strong>op</strong>eratives.<br />
Ian Snaith<br />
Solicitor at Anthony <strong>Co</strong>llins LLP<br />
I have known Ted since 1954, or possibly<br />
even before that. He worked at the Enfield<br />
Highway <strong>Co</strong><strong>op</strong>erative Society as their<br />
Education Secretary and I was an 8 year<br />
old member of the Wheatsheaf Junior<br />
Choir. The EHCS held a Music Festival in<br />
one of their halls and he was involved<br />
in arranging it. He supported us too by<br />
attending the festival and other concerts<br />
always with that full smile and lots<br />
of encouragement.<br />
Ted always took an interest in the choir<br />
and in us all as individuals. I gained a<br />
scholarship to boarding school and Ted<br />
arranged for me to have £10 to spend in<br />
the <strong>Co</strong>-<strong>op</strong> department store to help with<br />
buying bedding etc. He told me it was a<br />
thank you for the many hours I had spent<br />
rehearsing and singing in festivals and<br />
concerts representing the EHCS.<br />
Many years later, when he was an<br />
MP, I asked Ted if he could help as my<br />
mother was very ill but we were unable<br />
to obtain from anywhere the items that<br />
she needed to make her last few months<br />
comfortable. Within days we had them<br />
in abundance!<br />
From then on we corresponded from<br />
time to time and always at Christmas.<br />
My daughter, then aged 11, expressed<br />
an interest in politics and when this was<br />
mentioned to Ted in a letter he invited<br />
us to visit him for lunch at the Houses of<br />
Parliament. As always, he was very kind<br />
explaining procedures and introducing<br />
us to various MPs as we passed them.<br />
(My daughter continues her interest in<br />
politics and studied it at university.)<br />
He was always interested in the<br />
education and welfare of children. I have<br />
a newspaper cutting of Lord Romsey<br />
jumping over Lord Ted to launch a £1m<br />
appeal to mark the 120th anniversary of<br />
the National Children’s Home. In all there<br />
were 12 leaping peers on the 12th day of<br />
Christmas 1989!<br />
He will be remembered as a man with<br />
determination, learning, and a deep sense<br />
of justice for everyone.<br />
Ruth McDougall<br />
via email<br />
MAY <strong>2020</strong> | 25
MEET...<br />
Meet … Jenny Holsgrove<br />
Head of Culture and Performance,<br />
<strong>Co</strong>-<strong>op</strong>eratives UK<br />
Jenny Holsgrove joined <strong>Co</strong>-<strong>op</strong>eratives UK in November 2019 from Northwest<br />
Employer, where she was head of membership services. We spoke with her<br />
to find out more about the role – and what she thinks the <strong>Co</strong>vid-19 crisis<br />
means for future work cultures.<br />
WHAT DREW YOU TO CO-OPERATIVES UK?<br />
The importance of values and culture attracted me<br />
to the co-<strong>op</strong> sector. The <strong>op</strong>portunity to be a part<br />
of a team and culture that was united in its aim<br />
was exciting. I felt that my experience of forming<br />
communities, culture change and engagement in<br />
the workplace would be a good fit.<br />
WHAT DOES YOUR ROLE INVOLVE?<br />
My work at <strong>Co</strong>-<strong>op</strong>eratives UK devel<strong>op</strong>s and builds<br />
on our strong work using coaching and strength<br />
based approaches. We are working hard to<br />
make sure that our pe<strong>op</strong>le feel connected to our<br />
values and that our strategy puts culture at its<br />
heart, so that we can work more effectively and<br />
co-<strong>op</strong>eratively. I am also providing support to our<br />
members to empower the sector to recognise the<br />
impact of co-<strong>op</strong> values, principles and cultures.<br />
HOW HAVE YOU FOUND WORKING IN THE<br />
CO-OPERATIVE SECTOR COMPARED WITH<br />
WORKING IN OTHER ORGANISATIONS? HOW<br />
DOES THE CULTURE DIFFER?<br />
When I think about culture I think about the pe<strong>op</strong>le<br />
that form and shape it. Working in the co-<strong>op</strong>erative<br />
sector, the values and principles really drive the<br />
behaviours – and the impact of this is massive. The<br />
co-<strong>op</strong>erative sector brings together a wide range<br />
of businesses – all united in a way of working.<br />
<strong>Co</strong>-<strong>op</strong>s lead the way in showcasing innovation<br />
and challenging the way we think about work. But<br />
also, most importantly, they challenge how we feel<br />
about work.<br />
Leadership and communication is critical now, so make<br />
time to find new channels of communication and share<br />
updates. Build in time and space for more feedback.<br />
The new working environment will be adding extra stress;<br />
by providing extra communication and recognition, you<br />
can help fight those creeping insecurities<br />
26 | MAY <strong>2020</strong>
WE ARE LIVING THROUGH UNCERTAIN TIMES.<br />
REMOTE WORK CAN LEAD TO ISOLATION AND<br />
LACK OF RELATIONSHIPS AMONG COLLEAGUES<br />
AS WELL AS DIFFICULTY IN MAINTAINING A<br />
CLOSE RELATIONSHIP WITH MEMBERS OR<br />
CUSTOMERS. WHAT ADVICE WOULD YOU GIVE<br />
CO-OPS RIGHT NOW?<br />
We are facing so much change at the moment, but<br />
the most important thing to remember is to put<br />
your pe<strong>op</strong>le first and remember the basics – eat<br />
well, sleep well and get some exercise when and<br />
if you can. Leadership and communication is<br />
critical now, so make time to find new channels of<br />
communication and share updates. Build in time<br />
and space for more feedback. The new working<br />
environment will be adding extra stress; by<br />
providing extra communication and recognition,<br />
you can help fight those creeping insecurities.<br />
Lead by example and share how you’re feeling,<br />
so when someone asks you, be honest. If you’re<br />
struggling, say so.<br />
COULD THE FUTURE OF WORK MEAN MORE<br />
REMOTE WORKING? IF SO, HOW CAN CO-OPS<br />
BEST PREPARE FOR THIS?<br />
It is important to recognise that the way we view<br />
work has fundamentally shifted very quickly,<br />
and we are now seeing accelerated ad<strong>op</strong>tion of<br />
new technologies and ways of working. The way<br />
we understand and use the work environment<br />
will need to adapt to provide collaboration<br />
and creativity. Be ready to be flexible around<br />
working hours, location and how you understand<br />
productivity – we are reinventing ourselves. This<br />
is a journey and we don’t know where it will take<br />
us, but if you put you pe<strong>op</strong>le first, you will be<br />
moving in the right direction.<br />
For more tips and advice from Jenny Holsgrove,<br />
visit: s.co<strong>op</strong>/23rz1<br />
covid-19<br />
round up<br />
Updates from the global<br />
co-<strong>op</strong>erative community<br />
news Issue #7318 APRIL <strong>2020</strong><br />
<strong>Co</strong>nnecting, championing, challenging<br />
APRIL <strong>2020</strong><br />
CO-OPERATION<br />
ON LOCKDOWN<br />
How <strong>Co</strong>vid-19 is<br />
affecting co-<strong>op</strong>s<br />
around the world<br />
Plus … Food chains in<br />
the context of coronavirus ...<br />
updates from the Abcul and<br />
<strong>Co</strong>-<strong>op</strong> Retail <strong>Co</strong>nferences ...<br />
Tributes to Lord Ted Graham<br />
ISSN 0009-9821<br />
9 770009 982010<br />
01<br />
£4.20<br />
www.thenews.co<strong>op</strong><br />
Below: Jenny (fourth from right) with colleagues at the<br />
<strong>2020</strong> <strong>Co</strong>-<strong>op</strong> Retail <strong>Co</strong>nference<br />
thenews.co<strong>op</strong>/<br />
covid-19<br />
FEBRUARY <strong>2020</strong> | 23
Agriculture<br />
Agriculture co-<strong>op</strong>s: feeding<br />
nations during the crisis<br />
By Anca Voinea<br />
As <strong>Co</strong>vid-19 continues to impact countries all over<br />
the world, global food security is at risk.<br />
The pandemic is affecting food supply and<br />
demand, posing challenges to small-scale farmers<br />
who face difficulties accessing markets to sell their<br />
products or buy essential inputs.<br />
While the majority of agri food co-<strong>op</strong>eratives are<br />
continuing to <strong>op</strong>erate, they have had to adapt to a<br />
new environment.<br />
In Spain, for example, the Federation of<br />
Agricultural <strong>Co</strong>-<strong>op</strong>eratives launched a call for farm<br />
workers. The federation estimates that between<br />
80,000 and 100,000 workers will be needed.<br />
The appeal follows a decree issued by the<br />
Spanish government on 7 April, through which<br />
tens of thousands of migrants or unemployed<br />
pe<strong>op</strong>le who receive state benefits will be allowed<br />
to work in agriculture for a three-month period.<br />
Agustín Herrero, general director of the<br />
Federation, said: “<strong>Co</strong>vid-19 is having such an<br />
impact because it is a circumstance we could not<br />
predict, and which has affected everyone to a<br />
larger or smaller extent.<br />
“In the case of our sector, generally, co-<strong>op</strong>s<br />
continue to <strong>op</strong>erate as normal as possible, but they<br />
are highly dependent on the production sector and<br />
the marketing channel to which their products<br />
are destined.”<br />
He explained that certain sectors are more<br />
affected than others due to the shut down of the<br />
hotels, restaurants and the catering sector, which<br />
made up the main market for wine and for meats<br />
such as lamb and beef – especially the cuts that<br />
have the highest added value.<br />
The plants and flowers sector has ceased<br />
<strong>op</strong>erating following the closure of florists, local<br />
markets and the cancellation of weddings and<br />
other parties, which see a significant pr<strong>op</strong>ortion of<br />
usual sales. The goat milk sector is also affected<br />
because there are currently no buyers for the<br />
manufacture of cheese.<br />
28 | MAY <strong>2020</strong>
“The situation is changing as the days go by,<br />
and other sectors may encounter new problems<br />
due to changes in the consumption habits of<br />
citizens,” said Mr Herrero, adding that the Spanish<br />
government is working to provide direct aid to<br />
sheep farmers, in addition to a comprehensive<br />
package of state-backed loans.<br />
“We h<strong>op</strong>e that the Eur<strong>op</strong>ean <strong>Co</strong>mmission will<br />
implement intervention measures in the meat<br />
sector, which will be the most affected by the<br />
closure of the Horeca [hospitality] sector,” he said.<br />
<strong>Co</strong>pa and <strong>Co</strong>geca, the united voice of Eur<strong>op</strong>ean<br />
farmers and their co-<strong>op</strong>s, also has serious concerns<br />
about the impact the pandemic is having on the<br />
sector. It is calling on the Eur<strong>op</strong>ean <strong>Co</strong>mmission to<br />
take urgent action to protect food security.<br />
The organisation presented data from its<br />
members showing how the dairy, beef, sheep,<br />
goat, and fruit and veg sectors are being affected.<br />
“At the same time, the sector is currently facing<br />
unprecedented circumstances caused by factors<br />
beyond agriculture,” said Pekka Pesonen, <strong>Co</strong>pa<br />
and <strong>Co</strong>geca secretary general, in a statement on<br />
7 April. “While we recognise the efforts of the<br />
Eur<strong>op</strong>ean <strong>Co</strong>mmission and member states<br />
to ensure that the internal market functions<br />
smoothly, we reiterate the need for additional<br />
targeted market measures for the livestock sector,<br />
including exceptional measures, financed outside<br />
of the CAP budget,”<br />
While the dairy sector is in peak season, prices<br />
of several products have dramatically decreased.<br />
Thierry Roquefeuil, chair of the <strong>Co</strong>pa and <strong>Co</strong>geca<br />
Working Party on Milk and Dairy Products, believes<br />
the EU dairy market should not be allowed to<br />
deteriorate any further.<br />
He said: “<strong>Co</strong>pa and <strong>Co</strong>geca are calling for<br />
timely action to trigger the necessary measures<br />
and for private storage to be activated for all dairy<br />
products. Ensuring private storage for skimmed<br />
milk powder, all types of cheeses and butter –<br />
including for frozen storage of buffalo milk and/<br />
or buffalo curd – would have a beneficial impact<br />
on guaranteeing year-round food security. It is also<br />
important to assess the impact that the closure of<br />
schools has had on the delivery of milk and dairy<br />
products to children and to avoid unnecessary<br />
restrictions stemming from competition law in this<br />
force majeure situation.”<br />
The apex body raised similar concerns about<br />
the impact <strong>Co</strong>vid-19 is having on the beef and veal<br />
sector, affected by dr<strong>op</strong>s in demand and increased<br />
costs. Likewise, in the sheep and goat sector, the<br />
<strong>Co</strong>vid-19 outbreak has led to a downward trend for<br />
prices at a time when there would usually be an<br />
upward trend.<br />
Michèle Boudoin, chair of the <strong>Co</strong>pa and <strong>Co</strong>geca<br />
Working Party on Sheep said: “The seasonal<br />
nature of production means that this cannot be<br />
pushed back to later in the year. At the same time,<br />
imported products are coming onto the EU market<br />
at the only time of the year when the market can<br />
generate a revenue for sheep and goat producers.”<br />
<strong>Co</strong>pa and <strong>Co</strong>geca is also asking the Eur<strong>op</strong>ean<br />
<strong>Co</strong>mmission to ad<strong>op</strong>t “a more targeted tariff rate<br />
quota management”. Tariff rate quotas allow<br />
a pre-determined quantity of a product to be<br />
imported at lower import duty rates than the duty<br />
rate normally available for that product.<br />
According to the trade body, the fruit and veg<br />
sector is also being disrupted by shortage of<br />
labour, changes in demand and consumption and<br />
problems in the transportation of goods and the<br />
movement of pe<strong>op</strong>le.<br />
“<strong>Co</strong>pa and <strong>Co</strong>geca call for exceptional measures<br />
to be made available to all affected fruit and<br />
vegetable growers and for adjustments to the<br />
administrative management rules of <strong>op</strong>erational<br />
programmes of producer organisations to<br />
reduce the constraints that they are currently<br />
experiencing,” said Luc Vanoirbeek, chair of the<br />
Working Party on Fruit and Vegetables. u<br />
Vivescia, France’s largest<br />
grain co-<strong>op</strong>, has started<br />
to produce hand sanitiser<br />
MAY <strong>2020</strong> | 29
Titus Pinto, chair of<br />
the Fairtrade-certified<br />
United Nilgiri Tea Estates<br />
in Tamil Nadu, India,<br />
reminds consumers<br />
that their choices make<br />
a difference (Fairtrade<br />
/ Funnelweb Media©)<br />
u “With this unbalanced market situation<br />
spreading across several EU agricultural sectors,<br />
<strong>Co</strong>pa and <strong>Co</strong>geca ask the <strong>Co</strong>mmission to allocate<br />
a dedicated budget that falls outside the CAP<br />
budget,” added Mr Pesonen.<br />
<strong>Co</strong>pa and <strong>Co</strong>geca warned that <strong>Co</strong>vid-19 will<br />
have long-lasting effects on the agri food sector.<br />
Similar challenges are faced by co-<strong>op</strong>s in other<br />
regions. Canadian dairy business Agr<strong>op</strong>ur, for<br />
example, is reviewing its <strong>op</strong>erations and cutting<br />
jobs, in light of the crisis.<br />
“Our goal is to bring the<br />
temporarily laid-off employees<br />
back to work as soon as we<br />
can resume the normal course<br />
of business. A support team<br />
has been set up to help the<br />
employees who will be leaving<br />
the organisation transition and<br />
guide them through the process<br />
of applying for the government<br />
support programmes”<br />
The co-<strong>op</strong> says it will eliminate certain positions<br />
and temporarily lay off some employees who are<br />
not assigned to essential <strong>op</strong>erational duties.<br />
The restructure will affect 260 Canadian<br />
employees, who represent 3% of Agr<strong>op</strong>ur’s<br />
global workforce of 8,800. On 2 April the co-<strong>op</strong><br />
announced that 60 positions were being eliminated<br />
and 200 employees were being temporarily<br />
laid off.<br />
“These are difficult decisions to make but<br />
they are necessary in order to maintain the<br />
sustainability of our business,” said CEO Émile<br />
<strong>Co</strong>rdeau. “Our goal is to bring the temporarily<br />
laid-off employees back to work as soon as we can<br />
resume the normal course of business.<br />
“A support team has been set up to help the<br />
employees who will be leaving the organisation<br />
transition and guide them through the process<br />
of applying for the government support<br />
programmes.”<br />
The co-<strong>op</strong> says it has also taken measures to<br />
protect the health and safety of its employees and<br />
ad<strong>op</strong>ted a business continuity plan to ensure it can<br />
continue delivering high-quality dairy products to<br />
its customers and consumers.<br />
Responding to the pandemic, Agr<strong>op</strong>ur has<br />
provided staff with detailed guidelines regarding<br />
travel restrictions, teleworking, hygiene,<br />
disinfection, and mandatory reporting of illness.<br />
Access control at all sites for all employees,<br />
suppliers and visitors has been toughened.<br />
Alongside regular <strong>op</strong>erations – or sometimes<br />
instead of them – some co-<strong>op</strong>s are beginning to<br />
produce protective equipment for internal use,<br />
and for distribution to medical services.<br />
France’s largest grain co-<strong>op</strong>erative, Vivescia,<br />
has responded to the <strong>Co</strong>vid-19 crisis by starting to<br />
produce hand sanitiser. Since the start of the crisis,<br />
Vivescia Group’s biotechnology R&D subsidiary,<br />
ARD, has produced 15,000 litres of hand sanitiser,<br />
30 | MAY <strong>2020</strong>
following World Health Organisation guidelines. It<br />
was initially produced to supply workers at ARD,<br />
Vivescia and its other subsidiaries; but when<br />
the national shortage of hand sanitiser became<br />
apparent, the co-<strong>op</strong> stepped up production, to<br />
supply the medical sector.<br />
Vivescia says several tonnes of hand sanitiser<br />
have already been delivered to a number of<br />
hospitals and public institutions, including Nord<br />
“Though financial contribution<br />
is very important in the fight<br />
against the pandemic, social<br />
awareness remains a very<br />
important aspect of containing<br />
the spread”<br />
Ardennes Charleville-Mézières Intercommunal<br />
hospital, Rethel hospital and retirement home,<br />
Amiens university hospital, local police stations,<br />
pharmacies, medical centres, and general<br />
practitioners. ARD is looking at stepping up<br />
production from 5,000 to 7,000 litres of gel per<br />
day to respond to demand.<br />
In India, the Indian Farmers Fertiliser<br />
<strong>Co</strong><strong>op</strong>erative (Iffco) is using its extensive marketing<br />
network to deliver critical goods in areas otherwise<br />
hard to access.<br />
Iffco has distributed over 350,000 vitamin C<br />
tablets, 50,000 medicinal soaps, 20,000 masks,<br />
5,000 sanitisers and numerous medical kits to<br />
different locations throughout India. Medical<br />
equipment for hospital staff and health workers<br />
was also provided in places facing a shortage<br />
of equipment.<br />
All of Iffco’s plants remain fully <strong>op</strong>erational<br />
given the critical importance of the industry. The<br />
co-<strong>op</strong> is providing workers with a regular supply<br />
of sanitisers, soaps and masks, and has sought<br />
to implement social distancing policies across<br />
its sale points, warehouses and societies. Trucks<br />
used for transportation of fertilisers are also being<br />
sanitised regularly.<br />
To further support workers, Iffco has distributed<br />
food supplies to those from disadvantaged<br />
backgrounds, who are likely to be most affected by<br />
the crisis. And to prevent the spread of the virus,<br />
Iffco is leading an awareness raising campaign,<br />
informing staff and members about how they<br />
can stay safe. The co-<strong>op</strong> has also contributed<br />
Rs 250m (£2.6m) to India’s national <strong>Co</strong>vid-19<br />
emergency fund.<br />
Dr U. S. Awasthi, managing director of Iffco,<br />
said: “Though financial contribution is very<br />
important in the fight against the pandemic, social<br />
awareness remains a vital aspect of containing the<br />
spread. That is why Iffco, through its employees,<br />
is contributing in this time of need. I believe<br />
the campaign will help the farming and rural<br />
community by not letting the virus spread into<br />
rural areas.”<br />
Similar measures were implemented at Fairtrade<br />
certified co-<strong>op</strong> United Nilgiri Tea Estates (Unitea) in<br />
Tamil Nadu, India. Chair Titus Pinto told Fairtrade<br />
International: “We have issued 10kg of rice, 1kg<br />
of sugar, 750g of lentils, half a litre of cooking oil<br />
and 100g each of salt, pepper and other spices to<br />
each family. This has all been paid for out of the<br />
Fairtrade Premium.”<br />
He added: “We sanitise all dwellings and public<br />
places once every two days. The estate doctor has<br />
kept the clinic and hospital <strong>op</strong>en, and we have<br />
trained all workers on health and safety and<br />
precautionary measures.<br />
“If they have to carry out essential work, they<br />
are only allowed to do so if they have a doctor’s<br />
certificate.”<br />
<strong>Co</strong>-<strong>op</strong>s across the world are trying to continue to<br />
feed nations while also making a difference during<br />
the pandemic.<br />
However, the volatile market environment,<br />
coupled with labour shortages and closures of<br />
restaurants is posing considerable challenges to<br />
the sector. Governments will have to support the<br />
sector, both on short and long term, to ensure<br />
co-<strong>op</strong>s are able to continue producing and<br />
marketing food.<br />
Iffco distributed food<br />
supplies, hand sanitisers<br />
and masks to members<br />
and workers<br />
MAY <strong>2020</strong> | 31
Social<br />
So<br />
care<br />
How employee-owned and<br />
co-<strong>op</strong> care providers<br />
are tackling <strong>Co</strong>vid-19<br />
By Miles Hadfield<br />
There are several co-<strong>op</strong> and employee-owned<br />
providers in the UK social care sector which<br />
are having had to adapt to life under the<br />
<strong>Co</strong>vid-19 lockdown.<br />
One such organisation is Equal Care <strong>Co</strong>-<strong>op</strong>,<br />
an emerging platform co-<strong>op</strong> in the Calder Valley,<br />
West Yorkshire.<br />
Still in the early stages of its devel<strong>op</strong>ment, Equal<br />
Care hasn’t been faced with challenges on the<br />
scale of larger organisations which have a large<br />
roster of colleagues, and pe<strong>op</strong>le getting support,<br />
to make provision for.<br />
But Emma Back, one of the founders of the<br />
organisation, says it has faced some difficult<br />
decisions – and the sociocracy model of<br />
governance, baked into Equal Care’s co-<strong>op</strong>erative<br />
model, helped it find answers.<br />
“Our registration with the Care Quality<br />
<strong>Co</strong>mmission is still pending so we can’t take<br />
referrals from the local authority,” she says, “and<br />
lockdown means the number of pe<strong>op</strong>le looking for<br />
support from us is falling as pe<strong>op</strong>le self-isolate.<br />
“That means we’ve had to furlough pe<strong>op</strong>le –<br />
but that’s been done with full consent, a decision<br />
made with the whole team. Sociocracy worked:<br />
the decision about how and when, the ins and outs<br />
of it, were made by building consensus among<br />
the team.”<br />
Government furlough support has helped with<br />
staff, but for Equal Care’s independent care worker<br />
members, they are in a tough position. They are all<br />
newly self-employed so are not eligible for state<br />
support other than universal credit.<br />
“What we’ve done is accelerated a plan for a<br />
bread fund, using the £10,000 small business<br />
rate relief; we are putting that in as seed money,”<br />
adds Ms Back. “Independent care workers, pe<strong>op</strong>le<br />
and families getting support and investors can all<br />
contribute, to help ensure there is a safety net. It’s<br />
designed to cover lost income for when pe<strong>op</strong>le<br />
have lost clients through self isolation.”<br />
This is in line with Equal Care’s effort to build a<br />
fairer and safer gig economy model using the ideas<br />
of the platform co-<strong>op</strong> movement.<br />
The co-<strong>op</strong> – which has supplied PPE to all<br />
those involved in its <strong>op</strong>erations, including family<br />
members – is also making a shift to online and<br />
remote working, not just in terms of admin but also<br />
in terms of emotional support and team liaison.<br />
Ms Back thinks this will lead to more permanent<br />
changes, as pe<strong>op</strong>le find remote work is often more<br />
productive – and productivity is hugely beneficial<br />
to pe<strong>op</strong>le getting support, in terms of care<br />
outcomes. And there are wider cultural benefits<br />
too in terms of tackling loneliness.<br />
“I think it’s interesting that my 96-year-old<br />
nan knows how to use Zoom,” she adds. “This is<br />
a completely new thing … this virus has created<br />
more digital inclusion in three weeks than a<br />
decade’s worth of work has managed.”<br />
Life in lockdown has also encouraged more<br />
supportive practice among colleagues, she says.<br />
“We’re doing a lot of buddying and there’s a daily<br />
check-in for connection, support and wellbeing.”<br />
Lockdown is also allowing the team to finish its<br />
induction process and complete its training in the<br />
organisation’s co-<strong>op</strong> model.<br />
Urgent Care Practitioners<br />
with their donated more<br />
face shields<br />
32 | MAY <strong>2020</strong>
“Principle 5, education, is important and<br />
pe<strong>op</strong>le are adapting to the ideas under the Equal<br />
Care model – around platform co-<strong>op</strong>erativism,<br />
sociocracy and distributed leadership.<br />
“And team members are volunteering for the<br />
NHS and getting involved in mutual aid – there is<br />
more time to do that.”<br />
Meanwhile, Be Caring, an employee-owned<br />
provider of domestic social and healthcare support<br />
in Leeds, Newcastle, Liverpool and Manchester, is<br />
working to continue care and support but warns<br />
this “might need to change, for example, reduced<br />
call times, additional ‘p<strong>op</strong>-ins’, sh<strong>op</strong>ping calls,<br />
and working local volunteer groups to provide<br />
additional support”.<br />
Lockdown brings a range of complications and<br />
extra pressures, with pe<strong>op</strong>le getting support, and<br />
their families, self isolating; and care workers and<br />
their families doing the same, it says. Care workers<br />
with children have also found their ability to work<br />
and provide care continuity affected by school<br />
closures and childcare needs.<br />
To make matters harder, Be Caring says the<br />
closure of local services and community groups<br />
potentially increases the care and support that<br />
pe<strong>op</strong>le need.<br />
In response, Be Caring has been contacting<br />
everyone its team supports to agree any changes<br />
– including planned reductions as the outbreak<br />
impacts its workforce.<br />
City Health Care Partnership CIC (CHCP), an<br />
employee-owned business which offers health<br />
and care services in Hull, the East Riding of<br />
Yorkshire, Knowsley, Wigan and St Helens, has<br />
teamed up with other organisations to tackle<br />
the crisis. This includes Dove House Hospice in<br />
Hull, where an empty bedded unit is being used<br />
for <strong>Co</strong>vid-19 patients who need intermediate<br />
care and rehabilitation after being discharged<br />
from hospital.<br />
This will help to free up beds at Hull Royal<br />
Infirmary and Castle Hill for pe<strong>op</strong>le who need<br />
hospital treatment for coronavirus.<br />
The Needler unit has 12 beds and is a selfcontained<br />
unit with its own entrance, separate<br />
from the main hospice site. It will be staffed by<br />
CHCP’s nurses and allied health professionals.<br />
Dr Anna Wolkowski, chief executive of Dove<br />
House, said: “We’re proud to be supporting each<br />
other at this tough time to provide essential care as<br />
well as providing support to the local community<br />
to overcome this pandemic.”<br />
Julia Petty, general manager of integrated<br />
community services at CHCP, said, “I have been<br />
absolutely overwhelmed by the staff working and<br />
pulling together in making the Needler unit at<br />
Dove House a reality. While it has been very busy –<br />
everyone has tackled it with a true problem solving<br />
approach and nothing has been too much trouble<br />
for anyone.”<br />
Key workers in co-<strong>op</strong>s<br />
are using values and<br />
principles to help solve<br />
new problems<br />
MAY <strong>2020</strong> | 33
Retail Sector<br />
Ret<br />
tor<br />
The world of retail:<br />
The new frontline<br />
By Rebecca Harvey<br />
Retail workers are the interface between the public<br />
and essentials they need. They are also most likely<br />
one of the only points of social contact pe<strong>op</strong>le<br />
have day-to-day as the global lockdown continues.<br />
There are over 110,000 colleagues employed by<br />
the UK’s 18 co-<strong>op</strong>erative retail societies – and that<br />
doesn’t include the many smaller worker co-<strong>op</strong>s,<br />
community sh<strong>op</strong>s and food producers that are<br />
helping to keep the nation fed.<br />
In a letter to colleagues in April, <strong>Co</strong>-<strong>op</strong> Group<br />
chief executive, Steve Murrells, wrote: “Some of<br />
you will be preparing to come into work today<br />
after a busy weekend shift. Others are preparing<br />
to come into work as you’ve never known it before,<br />
full of angst and worried customers. Others will<br />
be preparing to be full time colleagues, full time<br />
home-school teachers and full time parents.<br />
Simultaneously. Others will be wondering how to<br />
fulfil your role and maintain your relationships<br />
over Teams and conference calls.<br />
“All of us will be coming into work determined<br />
to do our best for our members, customers and<br />
their communities. Bringing our skills, energy<br />
and determination to the job at hand. Be confident<br />
that our work is hugely valuable at this time. Our<br />
customers and their communities need us. Be<br />
patient with yourself and each other. We’re all<br />
learning. We will get through this together.”<br />
While the UK has been rightly applauding NHS<br />
workers for their work during this toughest of times,<br />
there has also been public acknowledgement of<br />
the essential role that retail workers play. A letter<br />
sent to co-<strong>op</strong> retail societies co-ordinated by<br />
Alex Norris MP and signed by every <strong>Co</strong>-<strong>op</strong> Party<br />
parliamentarian, expressed “sincere thanks and<br />
appreciation to co-<strong>op</strong> retail staff for the incredible<br />
work they are doing in these unprecedented times.”<br />
It added: “Across the country, the efforts of your<br />
staff and colleagues in co-<strong>op</strong>erative societies have<br />
done so much to support the local communities<br />
they proudly serve and ensure essential<br />
food and supplies are available, despite the<br />
challenging circumstances.”<br />
The Party also organised a virtual thank you<br />
card for sh<strong>op</strong>workers, which to date has been<br />
signed by over 10,000 pe<strong>op</strong>le, many of whom<br />
added personal messages. “As a nurse in the NHS<br />
for 31 years I say thank you for keeping the country<br />
going. Without all of you, we couldn’t do our job.<br />
Stay safe and remember we, the NHS staff, clap on<br />
Thursdays for you all and every key worker,” wrote<br />
one person.<br />
<strong>Co</strong>-<strong>op</strong> MPs helped to ensure that retail workers<br />
were included in the Government’s list of key<br />
workers, and have a long record of standing up<br />
for better protections for retail workers facing<br />
violence. This is needed now, more than ever;<br />
figures released by Usdaw at the end of April show<br />
that, of the 4,928 staff surveyed, one in six sh<strong>op</strong><br />
workers have been abused “on every shift” during<br />
the coronavirus crisis.<br />
Tanya Noon, member and community relations<br />
officer (MCRO) and director of Central England<br />
<strong>Co</strong>-<strong>op</strong>erative has worked for the organisation in<br />
different capacities for over 30 years – and has<br />
seen many changes in the business, but says the<br />
current health challenge around coronavirus is<br />
in unprecedented.<br />
As an MCRO, Ms Noon’s main role is to support<br />
local communities and members in a number of<br />
ways, including running member groups, such<br />
as Tai Chi, keep fit, or painting groups. “Prior to<br />
the Government’s announcement of lockdown,<br />
the MCROs took a decision to close all of its<br />
groups until the end of <strong>May</strong>, when this would be<br />
reviewed,” she said.<br />
“This was a difficult decision and members got<br />
very upset and tearful. The groups are a lifeline<br />
for a lot of pe<strong>op</strong>le, a way to get out and interact<br />
with others.”<br />
From 23 March, Ms Noon and other MCRO<br />
colleagues were redeployed into food stores, and<br />
34 | MAY <strong>2020</strong>
from there she joined a <strong>Co</strong>mmunity Hub project<br />
run from Central England’s store in Littleover,<br />
Derby. The <strong>Co</strong>mmunity Hub projects assist<br />
vulnerable pe<strong>op</strong>le with their sh<strong>op</strong>ping through a<br />
link up with local councils.<br />
“The change was emotional,” she says. “We had<br />
to cancel a lot of events and we were concerned<br />
for our regular members and how they were going<br />
to manage. But it was also good to be helping<br />
colleagues at the front end of the business. We<br />
have also continued to speak to the membership<br />
and community council (MCC) members through<br />
email updates and Zoom meetings.<br />
“I am so proud to work for a co-<strong>op</strong>erative that<br />
has such a diverse business and very direct contact<br />
with its members. Although I have missed my day<br />
job, the experience has been invaluable and to<br />
be classed as an essential worker made me feel<br />
very proud.”<br />
Tanya Noon is also a mental health champion for<br />
the society – so the emotional welfare of her fellow<br />
colleagues was something she had particular<br />
interest in. She noticed that some colleagues were<br />
in fear of their health and were worried about what<br />
would happen if they became unwell.<br />
“I have to say, the colleagues who are putting<br />
themselves out there every day to keep stores <strong>op</strong>en<br />
and stocked are a real credit to the business,”<br />
she said.<br />
“There are colleagues who have children and<br />
elderly parents to consider and they are putting<br />
themselves on the frontline, subjecting themselves<br />
to possible infection of the <strong>Co</strong>vid-19 disease. As<br />
both a colleague and a director, I am so proud of<br />
their attitude and commitment to the business.”<br />
She adds: “Some colleagues were very anxious.<br />
We all have a different approach to mental health,<br />
some pe<strong>op</strong>le have had real issues around working<br />
on the sh<strong>op</strong> floor and passing customers who are<br />
coughing and sneezing. We do not know anything<br />
about the customers coming into store, if they are<br />
self-isolating, if they had received a letter form the<br />
government to isolate for 12 weeks, or if they have<br />
anyone in their family are ill or are ill themselves.<br />
But staff are supporting each other, and that<br />
is brilliant.”<br />
As a director who was working in a store, she<br />
also found it good to be able to reassure colleagues<br />
about stock levels and how the product and<br />
category team was working to fix any gaps. “That<br />
none of our stores had closed was a real credit to<br />
our colleagues and their attitude towards their<br />
stores,” she said.<br />
Ms Noon also applauds the board’s decision to<br />
bring forward the society’s colleague pay award<br />
and to also pay colleagues on the frontline one<br />
week’s wage for all their commitment. “This came<br />
at a particular good time as though the colleagues<br />
were doing a brilliant job, their morale was starting<br />
to waiver – this was a fantastic incentive to show<br />
them how much they were valued.”<br />
Ms Noon is looking forward to re-connecting<br />
with the member groups and having time to reflect<br />
and look at how the society can improve the<br />
membership offer and re-engage with schools and<br />
the community on new and innovating projects,<br />
where they can look at more digital solutions to<br />
assist in the work and connected pe<strong>op</strong>le together<br />
in different way.<br />
“I believe that face-to-face connections<br />
are essential for anyone’s mental health and<br />
wellbeing,” she said, “but it’s also important to<br />
use and learn about the additional digital tools<br />
that can assist us, especially so we can prepare for<br />
any future lockdowns that may incur.”<br />
Social distancing<br />
measures in place for<br />
colleagues at a Central<br />
England food store<br />
MAY <strong>2020</strong> | 35
Retail Sector<br />
Ret<br />
tor<br />
Interview:<br />
Phil Ponsonby<br />
<strong>Co</strong>vid-19 has affected different co-<strong>op</strong>erative organisations in different ways.<br />
At Midcounties, the largest independent co-<strong>op</strong>erative in the UK, a unique<br />
challenge has been managing the situation across the diverse range<br />
of businesses it <strong>op</strong>erates – from food and funeralcare to travel and childcare.<br />
We spoke with Group Chief Executive Officer, Phil Ponsonby, on how the<br />
society reacted to the coronavirus crisis as it unfolded - and how it has<br />
been supporting colleagues across several very different sectors.<br />
“Like everyone, we were watching the news and<br />
monitoring events worldwide,” says Phil Ponsonby,<br />
from his home in Warwickshire. “Because of our<br />
travel business, we were getting travel guidance<br />
from the Foreign and <strong>Co</strong>mmonwealth Office early<br />
on, but I think, as with most pe<strong>op</strong>le, we started<br />
realising this was going to have a significant<br />
impact at the beginning of March.”<br />
Midcounties held its first <strong>Co</strong>vid-19 steering<br />
meeting on 10 March, mobilising its continuity<br />
plan and focusing on five key areas: resilience;<br />
colleagues; financials; suppliers; and customers<br />
and community.<br />
“We wanted to make sure that we were<br />
putting the right amount of focus in each area,”<br />
says Mr Ponsonby, “especially given our range<br />
of businesses.”<br />
Midcounties <strong>op</strong>erates in food, travel, childcare,<br />
healthcare, funeralcare and post offices and<br />
utilities. “We have had to temper and balance off<br />
the enthusiasm in food, where demand is through<br />
the roof, with a travel business that is dealing with<br />
angry and worried customers,” he says.<br />
“If you looked at the businesses in silos, you’d<br />
make very different decisions. We have to look at<br />
them as a collective.”<br />
The executive and key members of Midcounties’<br />
leadership team meet for daily briefings to speed<br />
up decision making. Mr Ponsonby says this<br />
enables the organisation to be more flexible - with<br />
suppliers, for example.<br />
“The national distribution network, which<br />
normally runs quite close to capacity anyway, is<br />
under real pressure. We are aware that despite<br />
their best efforts they can only distribute so much<br />
in a week. So introducing and supporting more<br />
local suppliers was quite important. Making<br />
decisions quickly and getting them on board fast<br />
was a big part of that.” One such supplier is Aldens<br />
butchers, a 225-year-old family business which<br />
pre-lockdown supplied the Houses of Parliament<br />
and Oxford University. Facing closure, it now<br />
supplies Midcounties food stores in Oxfordshire.<br />
This approach has also helped the organisation<br />
rapidly devel<strong>op</strong> and expanding new approaches,<br />
such online pharmacy services and home<br />
deliveries. “It’s about looking at our customers,<br />
thinking about how we can provide services to<br />
them in new ways, and adapting quickly.”<br />
COLLEAGUES FIRST<br />
<strong>Co</strong>lleagues have been at the forefront of<br />
Midcounties’ thinking throughout the crisis.<br />
“<strong>Co</strong>lleagues present us with questions and<br />
challenges, and at every step we have run by<br />
them our policies and what we’re looking to<br />
do. We’ve made some bold decisions around<br />
personal protective equipment (PPE); there has<br />
been a sourcing challenge because retailers are<br />
competing, but all our colleagues are equipped<br />
with gloves, masks and hand sanitizer, and there<br />
are screens in stores and pharmacies.”<br />
Two-way communication has been key, adds<br />
Mr Ponsonby. Midcounties’ <strong>Co</strong>lleague <strong>Co</strong>nnect<br />
website is used daily to give out information and<br />
get feedback. “Some challenges that colleagues<br />
raise are thought-provoking and some are quite<br />
specific, for example ‘should I put hand sanitiser<br />
over my gloves?’ Having that <strong>op</strong>en contact with<br />
colleagues where they can say what they like to<br />
everybody, including me, means you get some<br />
By Rebecca Harvey<br />
36 | MAY <strong>2020</strong>
eally good feedback but also that colleagues don’t<br />
have to wait too long to get answers to questions,”<br />
he says.<br />
Midcounties appointed a new chief HR officer –<br />
Clare Moore – last summer, whose “dynamic<br />
and innovative approach has played out really<br />
well in this situation” and in January, the society<br />
partnered with national charity, GroceryAid.<br />
Through this, all Midcounties colleagues can<br />
call the confidential GroceryAid helpline 24/7<br />
for free advice, counselling and other support.<br />
In the current crisis, the society has worked with<br />
mental health charity Mind to devel<strong>op</strong> a bespoke<br />
video for colleagues, and has also set up Welfare<br />
Wednesdays, where colleagues can take part in<br />
different activities, such as quizzes.<br />
“More than anything, it’s about keeping in<br />
touch,” says Mr Ponsonby. “Some colleagues who<br />
are self-isolating or working from home live on<br />
their own – that’s very lonely when you’re used<br />
to an office environment or your social interaction<br />
is usually dependent on work colleagues. So<br />
we’re encouraging virtual social interaction in all<br />
parts of the business. Every Friday evening, for<br />
example, we have a virtual drinks gathering with<br />
the executive team and key leadership committee,<br />
with something like a quiz or music competition<br />
It’s a chance to reflect on the week and have a bit of<br />
a break, which is important in these tough times.”<br />
The society has furloughed around 1,300<br />
colleagues, predominantly from childcare and<br />
travel. Some from these businesses were deployed<br />
to food stores, while around 100 were retained to<br />
work in the virtual call centre.<br />
“We took the decision early on that we would<br />
maintain furloughed staff on 100% pay for the<br />
first four weeks, and we’ve recently extended that<br />
to align to the government’s extended lockdown,”<br />
says Mr Ponsonby. “Alongside that, the executive<br />
team has also taken pay cuts. I’m extremely proud<br />
of them – none of them questioned it, it was<br />
something they volunteered to do. That’s just part<br />
of their thinking.”<br />
He has witnessed this attitude throughout the<br />
business. “Our co-<strong>op</strong> colleagues have really been<br />
going out of their way,” he says. “Over the Easter<br />
weekend for example, one of our store managers<br />
was handing out bottles of water to pe<strong>op</strong>le in<br />
the long queue. Little things like that make a big<br />
difference. <strong>Co</strong>lleagues are thinking about how<br />
they can help and that makes me really proud.”<br />
THE FUTURE<br />
Midcounties is hosting its annual general meeting<br />
(AGM) on 16 <strong>May</strong>. “One of the things we did last<br />
year – and I promise this wasn’t as a result of any<br />
kind of premonition – was to run one of our halfyearly<br />
meetings online, to test the technology,<br />
format and appetite among members. It went really<br />
well, and was actually one of the best attended<br />
meetings, because it’s convenient.” The event will<br />
be an interactive one, with members able to vote<br />
and ask questions in a live environment.<br />
Midcounties’ financial year is to 31 January –<br />
so although last year’s accounts won’t be directly<br />
impacted by <strong>Co</strong>vid-19, future forecasting will. “It’s<br />
hard because we’re obviously not sure how long<br />
this situation is going to go on for. We’ve been<br />
really detailed and active in building assumptions,<br />
double checking and changing them, interpreting<br />
government policy. We’re a £1.5bn business, but<br />
it’s made up of lots of different businesses, so the<br />
implications are profound.”<br />
He adds: “More than anything, we are keeping<br />
co-<strong>op</strong> values at the heart of our decision making.<br />
We try to make sure we are doing the right<br />
thing by our colleagues, members, customers<br />
and communities.”<br />
Integral to Midcounties’ future is its ‘Survive,<br />
Revive and Thrive’ strategy. “All teams – both<br />
centrally and our trading teams – have been asked<br />
to look at their <strong>op</strong>erations and break down their<br />
activities into these three areas,” he says.<br />
“Right now, there is a concentrated <strong>op</strong>erational<br />
focus. But in terms of revival, how will we re<strong>op</strong>en<br />
our businesses and accelerate some of the things<br />
we were going to do anyway? And then thriving is<br />
about what the new landscape looks like and what<br />
that means for our businesses. Over the last few<br />
weeks we have really been testing our businesses<br />
and are thinking more creatively and innovatively.<br />
We’re also closer to our colleagues, members and<br />
customers than ever before; that’s one thing that<br />
certainly isn’t going to change.”<br />
T<strong>op</strong>: Midcounties<br />
colleagues are sharing<br />
stories of giving a<br />
thumbs up, to keep<br />
morale high and to<br />
show that as<br />
co-<strong>op</strong>erators, they are<br />
“all in this together as<br />
#TeamMidcounties”<br />
Above: Phil Ponsonby,<br />
chief executive,<br />
Midcounties <strong>Co</strong>-<strong>op</strong>erative<br />
MAY <strong>2020</strong> | 37
Podcast episode explores the benefits<br />
of working in a different way<br />
How would the UK economy be transformed if more<br />
businesses were worker and employee owned?<br />
This was one question posed in an episode of<br />
More Than A Sh<strong>op</strong>, a podcast series produced as a<br />
collaborative effort between <strong>Co</strong>-<strong>op</strong>eratives UK, the<br />
<strong>Co</strong>-<strong>op</strong>erative <strong>Co</strong>llege, the <strong>Co</strong>-<strong>op</strong>erative Heritage<br />
Trust, <strong>Co</strong>-<strong>op</strong> Press and the <strong>Co</strong>-<strong>op</strong> Group.<br />
Recorded before the coronavirus pandemic –<br />
but still very relevant in the context of <strong>Co</strong>vid-19<br />
– it saw presenter Elizabeth Alker joined by Beau<br />
Bulman from worker co-<strong>op</strong> Suma Wholefoods and<br />
James Wright from <strong>Co</strong>-<strong>op</strong>eratives UK. Mr Bulman,<br />
whose role of pe<strong>op</strong>le devel<strong>op</strong>ment manager<br />
resembles that of an HR manager, explained why<br />
Suma chose a different term for the job.<br />
“Humans are not just resources. They are<br />
much more than that,” he says. In addition<br />
to doing office work, he helps out in the<br />
warehouse. When recruiting, Suma, which is<br />
Eur<strong>op</strong>e’s largest equal-pay employer, usually<br />
looks for pe<strong>op</strong>le with co-<strong>op</strong>erative values. The<br />
co-<strong>op</strong> currently employs 300 pe<strong>op</strong>le, 200 of whom<br />
are members. They take part in decisions through<br />
quarterly meetings and a board and members’<br />
council structure. Workers are paid equal amounts<br />
for the hours they work but some choose to work<br />
longer hours to earn more. Others want to work the<br />
minimum amount of hours.<br />
“We do sometimes make decisions by majority<br />
vote. And often that majority is highest, like 75%<br />
majority. But we look for consensus,” says Mr<br />
Bulman, acknowledging that not all employeeowned<br />
businesses have Suma’s governance<br />
structure or equal pay policy.<br />
“There are a lot of different ways to do worker<br />
ownership,” adds James Wright, policy officer<br />
at <strong>Co</strong>-<strong>op</strong>eratives UK. “There’s a lot of flexibility<br />
in terms of the legal arrangement, how worker<br />
ownership comes about in the first place, and<br />
how things are organised day to day. But generally<br />
speaking, if the business is worker-owned from the<br />
outset, the likelihood is that it’s going to be a very<br />
democratic worker co-<strong>op</strong> with lots of innovation in<br />
organisation management.”<br />
Another well-known model is the John Lewis<br />
Partnership; JLP did not start out as a worker<br />
co-<strong>op</strong> but converted to employee ownership.<br />
“If it’s a more established business that converts<br />
to employee ownership, they tend to use a slightly<br />
more complicated legal arrangement,” says Mr<br />
Wright. “The degree of employee control varies.<br />
And they might also inherit some more traditional<br />
practices and ways of working, but even most of<br />
those businesses tend to be quite innovative and<br />
forward thinking and become more so over time.”<br />
Asked to identify the main challenges for the<br />
sector, both guests pointed to a lack of awareness<br />
about co-<strong>op</strong>s and employee-owned businesses.<br />
“Pe<strong>op</strong>le don’t really know what co-<strong>op</strong>s are.<br />
We’re not really thought of by pe<strong>op</strong>le setting up<br />
new businesses as an <strong>op</strong>tion,” says Mr Bulman. He<br />
thinks the problem goes back to the 1980s when<br />
the idea of society was being challenged.<br />
By Anca Voinea<br />
Left: Beau Bulman<br />
Suma Wholefoods<br />
Right: James Wright<br />
<strong>Co</strong>-<strong>op</strong>eratives UK<br />
38 | MAY <strong>2020</strong>
James Wright agrees: “The evidence we have<br />
suggests there’s a growing interest in society,<br />
in businesses doing things differently and<br />
working more collaboratively, more ethically,<br />
more justly. The problem is that the pe<strong>op</strong>le<br />
who are interested in doing that ... tend to<br />
find out about [co-<strong>op</strong>s] by chance rather than<br />
because the system actually helps them do it.”<br />
This is despite the fact that evidence suggests<br />
co-<strong>op</strong> start-ups are more resilient than non<br />
co-<strong>op</strong> start-ups, and that worker control is<br />
linked to worker wellbeing and improved<br />
business performance.<br />
The episode also featured Leeds Bread <strong>Co</strong>-<strong>op</strong>,<br />
a worker-owned co-<strong>op</strong>erative bakery in Leeds.<br />
Lizzie Fellows, who has been at the co-<strong>op</strong> since<br />
2013, deals with finance and HR. She explains:<br />
“There are no managers or bosses that come in<br />
and tell us what to do. We work on a consensus<br />
decision-making basis, so every member is a<br />
director. We have a staff team of about 30, and that<br />
includes a mix of contracted and casual staff.<br />
“Every member of staff gets the same basic pay.<br />
We have a small-enhanced salary for members of<br />
the co-<strong>op</strong>. So for four hours a week we have an<br />
additional 25% of basic pay, which gets paid. But<br />
all members of staff basically come in on the same<br />
rate of pay.<br />
“The idea is that if everyone’s contributing to<br />
making the business a success, then all of our<br />
wages go up. So everyone has equal motivation.<br />
We’re all here for reasons beyond just the money.<br />
But essentially, we’re all here for employment as<br />
well. And that’s one of our values as a business:<br />
to be a good workplace and to provide an ethical,<br />
enjoyable livelihood for pe<strong>op</strong>le.”<br />
Beau Bulman agrees: “I think having more<br />
pe<strong>op</strong>le engaged in decision making in their<br />
work actually makes their work better. And that<br />
makes society better; pe<strong>op</strong>le are happier to go to<br />
work. They’re not just doing it to put money in<br />
the pocket of one man – and it is usually a man,<br />
unfortunately – but to devel<strong>op</strong> themselves. It’s got<br />
to be laudable.”<br />
“I think having more pe<strong>op</strong>le<br />
engaged in decision making<br />
in their work actually makes<br />
their work better. And that<br />
makes society better; pe<strong>op</strong>le<br />
are happier to go to work”<br />
So how can co-<strong>op</strong>s make themselves more<br />
visible? Mr Bulman thinks the movement often<br />
fails to reach those outside it. “We’re very good at<br />
preaching to the converted,” he says, “but beyond<br />
that, it’s getting ourselves out there, getting our<br />
products out there, and telling our story through<br />
our products and our different channels.”<br />
James Wright agrees that there is a new<br />
generation of pe<strong>op</strong>le coming through who, for<br />
very good reasons, do think differently about how<br />
the world should work. “At the moment they’re<br />
perhaps thrashing around vaguely looking for<br />
something different. If we can put the co-<strong>op</strong> model<br />
in front of them as one solution to change the<br />
world and the way they want to change it, then we<br />
will be reaching a much bigger audience than we<br />
are now,” he says.<br />
Subscribe and download now at:<br />
morethanash<strong>op</strong>.co<strong>op</strong><br />
MAY <strong>2020</strong> | 39
Thinktanks call for community wealth<br />
models and plural ownership in<br />
post-<strong>Co</strong>vid settlement<br />
<strong>Co</strong>mmunity wealth building and democratic,<br />
pluralistic ownership of the economy are crucial<br />
to any fair reconstruction programme after the<br />
<strong>Co</strong>vid-19 crisis, says a report.<br />
UK thinktank the Centre for Local Economic<br />
Strategies (CLES) worked with US organisation<br />
the Democracy <strong>Co</strong>llaborative (TDC) on the Owning<br />
the Future report, which argues: “The <strong>Co</strong>vid-19<br />
pandemic has caught the United Kingdom<br />
woefully under-prepared. We face a major public<br />
and economic event of historical importance,<br />
potentially unprecedented in its magnitude<br />
in peacetime.<br />
“In the face of this, community wealth building<br />
policy and practice must shift to meet the scale<br />
of the crisis, rapidly building a new institutional<br />
power base for a new politics of community<br />
control from the ground up.”<br />
Both organisations have been key players in<br />
the community wealth building movement: in<br />
the UK, CLES has worked on projects such as the<br />
Preston model, while TDC is involved in the new<br />
municipalism project in Cleveland, Ohio, which<br />
partly inspired the Preston project.<br />
The report says the crisis exposes the<br />
flaws of “neoliberal capitalism … beset<br />
with the compounding problems of toxic<br />
inequality, ecological collapse and democracy<br />
in decay”.<br />
It warns: “The effects on our social, economic<br />
and political future will inevitably be profound<br />
and long-lasting. While we do not know exactly<br />
how events will progress, we can be sure that<br />
things will never be quite the same again.”<br />
To steer the right course through this uncertain<br />
future, and ensure that communities weather<br />
a post-lockdown depression and benefit from<br />
a reconstruction programme, the report urges<br />
policymakers to “avoid the mistakes of the global<br />
financial crisis” and instead take inspiration from<br />
FD Roosevelt’s New Deal response to the Great<br />
Depression in the USA.<br />
It advocates national and local state holding<br />
companies to acquire failing businesses<br />
until they can re-launched as part of the<br />
economic recovery, and wants see the “UK’s<br />
discredited industrial strategy [replaced] with<br />
a Green New Deal, funded by a green stimulus<br />
recovery package”.<br />
It also calls for a new social contract and welfare<br />
system which recognises that “austerity was<br />
a mistake” and expands “real community power”.<br />
The paper’s programme echoes calls by a<br />
number of campaigners for a post-lockdown<br />
economy to avoid a “return to normal” and<br />
instead create a fairer and more democratic<br />
alternative. Its ideas include a number of<br />
principles of the Preston and Cleveland models<br />
of community wealth building, already being<br />
trialled by the wider UK co-<strong>op</strong> council movement<br />
– giving space for community control and<br />
worker ownership.<br />
“Replacing the extractive features of our<br />
economy with more democratic and sustainable<br />
features must become the new economic common<br />
sense,” the report argues.<br />
This means “democratic and plural ownership<br />
of the economy – rethinking business support and<br />
economic devel<strong>op</strong>ment more generally to advance<br />
democratic ownership models of firms. Also,<br />
a new era of municipal ownership”.<br />
It argues for fiscal devolution to give local pe<strong>op</strong>le<br />
more democratic control of their economies, and<br />
for an expansion of community finance initiatives.<br />
It also advocates for the spread of Preston-style<br />
procurement policies, where the spending power<br />
of state organisations and anchor institutions<br />
spreads local social value.<br />
<strong>Co</strong>mmunity ownership gets a mention in the<br />
report’s plans for “socially productive use of land<br />
and pr<strong>op</strong>erty”.<br />
It wants reforms put in place to “roll back the<br />
enclosure of public land through municipal<br />
devel<strong>op</strong>ment vehicles, community land<br />
ownership and a democratic revolution in the<br />
planning system”.<br />
It also wants action to ensure more fair and just<br />
labour markets.<br />
By Miles Hadfield<br />
40 | MAY <strong>2020</strong>
The paper is accompanied by a document drawn<br />
up by CLES to present to local authorities, titled<br />
Rescue, Recover, Reform. This says “community<br />
wealth building policy and practice must shift<br />
to meet the scale of the crisis, rapidly building a<br />
new institutional power base for a new politics of<br />
community control from the ground up”.<br />
Among its reforming ideas for local economies is<br />
“the creation of a new local economic architecture”<br />
(mutual credit, platform co-<strong>op</strong>s and new forms of<br />
investment) for smaller businesses.<br />
These co-<strong>op</strong> models are a more resilient and<br />
democratic alternative than some of the predominant<br />
business models which have extracted wealth from<br />
communities, the report argues.<br />
If policymakers avoid a repeat of harsh austerity<br />
measures, and do not attempt “a full-on ‘shock<br />
doctrine’ disaster response, combining a new<br />
state authoritarianism with ongoing uncontrolled<br />
corporate capitalism”, then there is the possibility<br />
of a positive outcome, CLES h<strong>op</strong>es.<br />
“The <strong>Co</strong>vid-19 pandemic could become a<br />
moment of crystallisation, with citizens and<br />
governments working together to build a new<br />
social contract and a genuinely inclusive economy.<br />
“This could be prefigured and sustained by the<br />
extraordinary rise of social solidarity and mutual<br />
aid generated by the pandemic, which could then<br />
snowball into a movement for deep and lasting<br />
political-economic change.”<br />
MAY <strong>2020</strong> | 41
<strong>Co</strong>-<strong>op</strong>s’ covid crisis<br />
It is too soon to assess the impact of <strong>Co</strong>vid-19 – but<br />
we know it is terrible in health, social and financial<br />
terms. The eventual impact will be determined by<br />
the virus itself and how governments mitigate it.<br />
Can a vaccine be devel<strong>op</strong>ed, and if so, how quickly?<br />
Do pe<strong>op</strong>le who have caught the illness and recovered<br />
obtain immunity to prevent them from catching<br />
it again? Can anti-viral drugs be devel<strong>op</strong>ed? Can<br />
immunity enhancing drugs be used? And how will<br />
<strong>Co</strong>vid-19 mutate?<br />
With the answers to these health-related questions<br />
unknowable at present, it is impossible to predict<br />
the likely extension of social distancing measures,<br />
and therefore the financial toll on the global and<br />
national economies, and individual co-<strong>op</strong>eratives.<br />
But we can say positive things about the leadership<br />
of the sector. Both <strong>Co</strong>-<strong>op</strong> Group CEO Steve Murrells<br />
and Nationwide Building Society CEO Joe Garner<br />
have volunteered for 20% pay cuts. Meanwhile,<br />
many mutuals have ad<strong>op</strong>ted generous support<br />
packages for staff who have been quarantined.<br />
Financial mutuals are in particular difficulty.<br />
Many financial support measures ad<strong>op</strong>ted by<br />
the government are being implemented via<br />
the financial institutions: the banks, building<br />
societies, credit unions and insurers. Businesses<br />
are to receive emergency funds via the banks,<br />
through new loans, while individuals have been<br />
told by regulators they can extend overdrafts,<br />
loans and card repayments. This will inevitably<br />
lead to more loan defaults.<br />
In the United States, the largest banks have<br />
already increased provisions for loan losses. Initial<br />
assessments are equal to about an additional<br />
7.5% of annual defaults. The banks also reported<br />
reduced income of nearly 50% in the first quarter.<br />
Similar effects are likely in other countries, with<br />
the Office for Budget Responsibility reporting that<br />
the UK economy reduced in size by 35% during<br />
the initial period of the crisis. British banks had<br />
to abandon £8bn of pr<strong>op</strong>osed dividend payments,<br />
after pressure from the financial regulator. Lenders<br />
for car purchases report requests for relief on loan<br />
repayments have risen by 20 to 30 times their<br />
normal level.<br />
Administrative challenges are immense.<br />
<strong>Co</strong>mmercial and personal customers in the UK<br />
42 | MAY <strong>2020</strong>
have complained about the problems in accessing<br />
financial support, with call centres overloaded with<br />
enquiries. The Building Societies Association’s<br />
spokeswoman Amy McCluskey said: “Along<br />
with the rest of the financial services sector our<br />
members have been facing significant <strong>op</strong>erational<br />
challenges for the past month and more. They<br />
have been working flat out on issues that affect the<br />
health and wellbeing of both customers and staff,<br />
whilst grappling with very practical <strong>op</strong>erational<br />
challenges such as a circa 30% staff absence rate,<br />
and moving staff onto home-working.<br />
“A lot has been achieved including these two<br />
examples. Keeping around 90% of branches<br />
<strong>op</strong>en – most on reduced hours and for essential<br />
transactions only – while observing social<br />
distancing. This has been particularly important<br />
for vulnerable customers who require access<br />
to cash as they have no other form of banking<br />
product. Granting around a quarter of a million<br />
three month mortgage repayment holidays to give<br />
those affected a breathing space.”<br />
Mortgage lending is under serious pressure.<br />
“Clearly the economy generally and employment<br />
and housing market specifically will take some<br />
time to recover and this will have a widespread<br />
effect going well beyond our sector,” added Ms<br />
McCluskey. “So we are well aware that we are in<br />
this for the long haul [ensuring that] the sector is<br />
well-positioned to not just c<strong>op</strong>e but play an active<br />
role. The sector is well capitalised, having built its<br />
financial resilience up since the financial crisis<br />
of 2007-9.”<br />
The Nationwide Building Society is unable<br />
to discuss the financial impact on the society<br />
in the run-up to its results announcement. It<br />
said <strong>op</strong>erations had been kept going because<br />
of the positive attitude of its staff. The society’s<br />
spokesman said: “Hundreds of our colleagues<br />
have volunteered to support our member-facing<br />
teams, and we are deploying this additional<br />
resource to help with the increased demand.”<br />
Nationwide is asking members to move to online<br />
transactions where possible, to reduce demand on<br />
branches and call centres.<br />
Many enterprises have criticised insurers for<br />
declining claims on business interruption policies.<br />
But insurers, including mutuals, are fearful of the<br />
impact if they too generously pay out on these<br />
policies. NFU Mutual – which provides cover to<br />
the farming sector – warned customers: “In line<br />
with UK market practice, our standard business<br />
interruption cover usually requires damage to<br />
pr<strong>op</strong>erty, such as storms or fires, in order to be<br />
triggered, which means the majority of customers<br />
will not be covered for coronavirus. At NFU<br />
Mutual, we always seek to support our customers<br />
wherever possible and will look to extend cover<br />
whenever we can. However, as a mutual, one<br />
of our duties to our members is to remain solvent.<br />
Global pandemics such as coronavirus require<br />
a much larger solution and financial package<br />
from authorities and central governments than is<br />
possible for insurers to provide.”<br />
NFU Mutual is, however, providing £32m<br />
of support to customers and communities,<br />
including an increase in cover. This is expected to<br />
provide £12m of payouts for members affected by<br />
the illness this year.<br />
Credit unions are especially concerned about<br />
the impact on them, with a number having ceased<br />
trading as a result of the Great Recession. The Irish<br />
League of Credit Unions – which has members<br />
on both sides of the border – has requested<br />
the Irish regulator to ad<strong>op</strong>t some flexibility<br />
in rules enforcement, to allow credit unions<br />
to provide greater assistance to members in<br />
financial difficulty.<br />
Abcul, the Association of British Credit Unions,<br />
admits that the latest crisis will place pressure<br />
on its members. It is now working with the<br />
UK government, regulators and the devolved<br />
governments in Scotland and Wales to enable it<br />
to provide financial support to pe<strong>op</strong>le in need.<br />
“Our requests are seen as critical to ensuring<br />
the ongoing sustainability of the sector and in<br />
supporting our ability to assist members who need<br />
it most at this time,” said an Abcul statement.<br />
Abcul has worked with Fair4All Finance to<br />
provide £5m from its resilience fund to credit<br />
unions and community devel<strong>op</strong>ment finance<br />
institutions (CDFIs) in England. In Scotland, the<br />
devolved government has established dedicated<br />
funds to support credit unions through the crisis,<br />
including a resilience fund as well as £20m<br />
of loans and grants.<br />
Robert Kelly, Abcul’s CEO, said: “These support<br />
measures will undoubtedly assist credit unions<br />
across Britain and we look forward to supporting<br />
and assisting credit with these initiatives in the<br />
weeks and months ahead. Abcul has hosted online<br />
conference sessions with credit unions from all<br />
over Britain to identify issues of emerging concern<br />
and ensure these are addressed and the business<br />
strengthened to deliver essential financial support<br />
to members and to staff.”<br />
While it is too early to assess the financial impact<br />
of <strong>Co</strong>vid-19, leaders of mutuals have recognised<br />
that the crisis provides an existential threat to<br />
many businesses. In this they are showing they<br />
have learnt from the global Great Recession of just<br />
over a decade ago, when many of the institutions<br />
were guilty of complacency, leading to the<br />
failure of some. But this time it is different – this<br />
crisis will severely damage the strong as well as<br />
the weak.<br />
MAY <strong>2020</strong> | 43
Bringing<br />
co-<strong>op</strong>s together:<br />
Individually, we’re vulnerable<br />
Now, more than ever, it’s urgent to co-<strong>op</strong>erate<br />
By BALU IYER,<br />
regional director<br />
of International<br />
<strong>Co</strong><strong>op</strong>erative Alliance<br />
- Asia and Pacific<br />
As the apex body representing co-<strong>op</strong>eratives, how<br />
could the International <strong>Co</strong><strong>op</strong>erative Alliance (ICA)<br />
lead the way for its members – who represent<br />
national federations, government departments<br />
and supranational organisations – during these<br />
uncertain times?<br />
The year <strong>2020</strong> marks 125 years of the ICA.<br />
As an agency representing 311 co-<strong>op</strong>erative<br />
organisations across 109 countries with 1 billion<br />
members, this year should have been marked with<br />
joyous celebrations. However, here we are staring<br />
ahead at darkening clouds which portend an<br />
uncertain and uncharted future.<br />
This is not the first time the ICA has faced such<br />
an existential crisis. It has seen through two world<br />
wars (1914-1918 and 1939-1945), depression<br />
(during the 1930s), <strong>Co</strong>ld War (1946-1991, two<br />
phases), and financial crisis (2008). Even though<br />
the coronavirus crisis is projected to be of a larger<br />
dimension, there is much we can learn from our<br />
history. During times of crisis, the ICA also had<br />
to face financial contraction and contend, like<br />
its member organisations, with the dislocation of<br />
trade and production, brought about not only by<br />
wars but also by economic consequences.<br />
Two books, The International <strong>Co</strong><strong>op</strong>erative<br />
Alliance – During War and Peace by Rita Rhodes<br />
and The International <strong>Co</strong><strong>op</strong>erative Alliance 1895<br />
to 1970 by W.P. Watkins, provide some direction.<br />
<strong>Co</strong>-<strong>op</strong>eratives were seen as ‘living organisms’ in<br />
constant evolution, modifying their original forms<br />
and functions according to the circumstances<br />
and needs of their members. The co-<strong>op</strong>erative<br />
spirit permeating was more important than a set<br />
of principles; the focus on self-help and mutual<br />
aid, and on undertaking economic activity for<br />
service rather than profit; and co-<strong>op</strong>eration<br />
among co-<strong>op</strong>eratives a distinct feature of<br />
co-<strong>op</strong>erative activity. Among the reasons for the<br />
ICA re-emerging from each crisis were: its ability<br />
to evolve and change while retaining a strong<br />
moral tone; the constitution which remained<br />
remarkably constant; internationalisation of<br />
national co-<strong>op</strong>erative movements which had<br />
the belief that, in economic and social activities,<br />
co-<strong>op</strong>eration was superior to competition; getting<br />
members to equitably share their common<br />
interests – at once adding to the stock of positive<br />
knowledge about co-<strong>op</strong>eration throughout the<br />
world and clarifying ideas; and mission-minded<br />
leadership from the Central and Executive<br />
<strong>Co</strong>mmittees and the Secretariat.<br />
<strong>Co</strong>-<strong>op</strong>eratives step up!<br />
During the coronavirus crisis, co-<strong>op</strong>eratives<br />
have stepped up to support their members<br />
and communities. In Australia, apex body the<br />
Business <strong>Co</strong>uncil of <strong>Co</strong><strong>op</strong>eratives and Mutuals<br />
(BCCM) is providing information to its members<br />
on government assistance for coronavirusimpacted<br />
businesses and what it means. In India,<br />
the Indian Farmers Fertilizer <strong>Co</strong><strong>op</strong>erative (Iffco) is<br />
leading efforts to contain the spread of <strong>Co</strong>vid-19<br />
by organising social awareness campaigns to<br />
highlight the preventive and precautionary<br />
measures like social distancing, sanitisation,<br />
healthy diet and prevention through face masks.<br />
44 | MAY <strong>2020</strong>
In Iran, the Iranian Women <strong>Co</strong>-<strong>op</strong>erators’ Think<br />
Tank, comprising, among others, the Tehran<br />
Handicraft <strong>Co</strong><strong>op</strong>erative Union, Iran Chamber of<br />
<strong>Co</strong><strong>op</strong>eratives, the Iranian <strong>Co</strong><strong>op</strong>erators’ Association,<br />
and Rah-e-Roshd <strong>Co</strong><strong>op</strong>erative School has been<br />
running projects in different provinces to produce<br />
masks and isolation gowns. In Korea, more than<br />
25 members co-<strong>op</strong>s from iCOOP donated goods to<br />
health centres, hospitals, and low-income groups.<br />
In Nepal, to mark the 63rd National <strong>Co</strong><strong>op</strong>erative<br />
Day, the <strong>Co</strong><strong>op</strong>eratives’ <strong>Co</strong>ronavirus <strong>Co</strong>ntrol Center<br />
has been set up at Manmohan Memorial Hospital<br />
in coordination with the National <strong>Co</strong><strong>op</strong>erative<br />
Federation. The Palestine Agriculture <strong>Co</strong><strong>op</strong>erative<br />
Union is supporting the community by collecting<br />
fresh vegetables from members as grants and<br />
distributing them to the closed governorates<br />
affected by the virus. In the Philippines,<br />
co-<strong>op</strong>eratives have launched a nationwide<br />
campaign of donations to combat the virus and<br />
help the elderly, who are the most vulnerable.<br />
These include washable face masks, vitamins, and<br />
other kits.<br />
ICA has launched a forum on Loomio for its<br />
members to participate in coordinating a global<br />
co-<strong>op</strong>erative response to the ongoing <strong>Co</strong>vid-19<br />
crisis. Members are encouraged to <strong>op</strong>en an<br />
account here, join the platform and contribute to<br />
the ongoing discussion.<br />
Rally around the co-<strong>op</strong>erative<br />
identity<br />
While the above are responses on the part of<br />
co-<strong>op</strong>eratives to address immediate challenges,<br />
there is a need for the ICA and its members to look<br />
ahead as a movement.<br />
After the destruction of the First World War,<br />
co-<strong>op</strong>erators came back to the 1913 Glasgow<br />
Resolution of Peace as a rallying point around<br />
which to muster their movements and chart<br />
their own contribution to a better and more<br />
peaceful world order. This was because the<br />
response of governments at the time was one of<br />
economic nationalism, closing borders, locking<br />
down and trying to lift themselves by their own<br />
bootstraps. The response to <strong>Co</strong>vid-19, given its<br />
transmission across borders, is eerily familiar.<br />
During those ICA meetings and <strong>Co</strong>ngresses,<br />
delegates thought of themselves as co-<strong>op</strong>erators<br />
first and by nationality second – remarkably free<br />
of chauvinism.<br />
This is the time for ICA and its members to<br />
again unite and rally under the common banner of<br />
<strong>Co</strong>-<strong>op</strong>erative Identity. Indeed, the theme of the<br />
33rd World <strong>Co</strong>ngress to celebrate the ICA’s 125th<br />
ICA anniversary, ‘Deepening our <strong>Co</strong><strong>op</strong>erative<br />
Identity,’ provides the rallying cry! The Statement<br />
on the <strong>Co</strong><strong>op</strong>erative Identity, which includes<br />
definitions of the principles and co-<strong>op</strong>erative<br />
values of self-help, self-responsibility, democracy,<br />
equality, equity and solidarity, have never been<br />
truer. As are the four ethical values: honesty,<br />
<strong>op</strong>enness, social responsibility and caring for<br />
others. However it is not the words, but the deeds<br />
which matter. As has been seen in the history of<br />
the ICA, it is the adherence to the actions that has<br />
enabled co-<strong>op</strong>eratives to stand the test of time.<br />
Superiority of the co-<strong>op</strong>erative system is<br />
demonstrated by exercising the utmost vigilance<br />
and economy in purchasing and handling stock;<br />
by distributing all commodities to members at the<br />
most equitable prices; by resisting all attempts<br />
of capitalist enterprise to exploit the situation<br />
for private profit; and to employ every means to<br />
mitigate the evils and distress attendant upon<br />
the increasing unemployment of workers across<br />
the world.<br />
Now is the time to rally co-<strong>op</strong>eratives around the<br />
co-<strong>op</strong>erative identity!<br />
u<br />
T<strong>op</strong>: Iffco’s social<br />
awareness measures<br />
take the fight where it<br />
matters most<br />
Above: Daegu <strong>Co</strong>rona<br />
Emergency Assistance<br />
MAY <strong>2020</strong> | 45
Spotlight on the International<br />
Day of <strong>Co</strong><strong>op</strong>eratives<br />
The first International Day of <strong>Co</strong><strong>op</strong>eratives (IDC)<br />
was celebrated in 1923. Since then, it has been<br />
celebrated every year, in every country on the same<br />
day (the first Saturday of July), in order to attract<br />
the attention and interest of the whole world and<br />
communicate the message of ‘each for all, and<br />
all for each’. Its impact to strengthen the unity of<br />
co-<strong>op</strong>eratives has been incalculable. Since 1995,<br />
the United Nations, through the <strong>Co</strong>mmittee for<br />
the Promotion and Advancement of <strong>Co</strong><strong>op</strong>eratives<br />
(<strong>Co</strong>pac), a multi-stakeholder partnership of global<br />
public and private institutions that champions and<br />
supports co-<strong>op</strong>erative enterprises as leaders in<br />
sustainable devel<strong>op</strong>ment, has also been celebrating<br />
the day of co-<strong>op</strong>eratives.<br />
The <strong>2020</strong> edition will be the 26th United<br />
Nations International Day of <strong>Co</strong><strong>op</strong>eratives and<br />
the 98th International <strong>Co</strong><strong>op</strong>erative Day: its<br />
theme is <strong>Co</strong><strong>op</strong>eratives for Climate Action. Given<br />
the ravages of <strong>Co</strong>vid-19, the focus on climate<br />
action is more critical than ever. According to the<br />
World Health Organization (WHO), changes in<br />
infectious disease transmission patterns are likely<br />
a major consequence of climate change. Rising<br />
temperatures can create favourable conditions for<br />
the spread of certain infectious diseases, while<br />
disappearing habitats may force various animal<br />
species to migrate, increasing the chances of<br />
spillover pathogens between them. Whether it’s<br />
in terms of health, economic or any other type of<br />
shock, the pe<strong>op</strong>le most affected are the poorest<br />
and the most vulnerable. When health disasters<br />
hit – and in a business-as-usual scenario they will<br />
do so increasingly – global inequality is sustained<br />
and reinforced, and paid for with the lives of the<br />
poor and marginalised.<br />
Similar to the spirit in celebrating IDC in 2012,<br />
the International Year of <strong>Co</strong><strong>op</strong>eratives, this year<br />
co-<strong>op</strong>eratives need to ‘shout out loud’ or ‘spread<br />
far and wide’ the message that our methods of<br />
production and consumption are constantly<br />
attacking the environment and cannot go on. We<br />
need to ensure production does not take a toll on<br />
the very soil it depends, reduce the demands we<br />
place on nature by <strong>op</strong>timising consumption, build<br />
direct supply chains between the producer and<br />
consumer, substitute animal proteins with plant<br />
proteins, and decrease pollution.<br />
Left in the lurch: migrant<br />
workers, the gig-economy,<br />
the informal economy<br />
The millions of migrant workers streaming out of<br />
cities in India; six million claiming unemployment<br />
in a week in the United States; a quarter of a<br />
million garment workers in Bangladesh out of<br />
a job. Each day brings with it more daunting<br />
numbers. Gig workers, independent contractors,<br />
and freelancers are experiencing income losses<br />
without the support of severance or benefits<br />
and many are finding out they don’t qualify<br />
under stimulus packages. According to the<br />
International Labour Organization (ILO), the<br />
<strong>Co</strong>vid-19 crisis is expected to wipe out 6.7% of<br />
working hours globally in the second quarter<br />
of <strong>2020</strong> – equivalent to 195 million full-time<br />
workers. The impact of the pandemic will affect<br />
more women than men as they are more vulnerable<br />
to economic shocks.<br />
This is an <strong>op</strong>portunity for the ICA and its<br />
members to rally once again for workers. This is<br />
not something new to the ICA. In its early years<br />
it was a body whose affiliated membership was<br />
predominantly made up of wage-earners, who<br />
subscribed to working-class culture, and whose<br />
goal was improvement of co-<strong>op</strong>erative members’<br />
living standards. The First Article of the ICA’s<br />
original constitution included the objective<br />
of the amelioration of the lot of working classes<br />
(wording later dr<strong>op</strong>ped) – hence its association<br />
from the early days with the ILO and trade<br />
unions. The crisis has shown the importance<br />
of having service and social co-<strong>op</strong>eratives to<br />
meet the needs of informal workers and address<br />
issues around health and ageing. During these<br />
times, even in the worst affected countries<br />
like Italy, co-<strong>op</strong>eratives are stepping up to<br />
the task.<br />
The works: stimulus, bailouts<br />
and everything in between<br />
Governments are scrambling to enact stimulus<br />
packages in the billions and trillions. Unlike the<br />
stimulus packages of 2008 where companies used<br />
it for themselves (stock buyback and t<strong>op</strong> honchos<br />
payment), this time around the effort is to ensure<br />
workers get their fair share. Given what we have<br />
seen in regard to the plight of migrant workers,<br />
farmers and artisans, governments are going to<br />
look for the support and good will of these groups.<br />
Apex organisations and federations need to get<br />
out of their shells and ensure that co-<strong>op</strong>eratives<br />
are not left out of the process. The BCCM and<br />
the National <strong>Co</strong><strong>op</strong>erative Business Association<br />
(NCBA) in the USA are doing just that, making<br />
sure the interests of co-<strong>op</strong>eratives and mutuals<br />
continue to be represented in a challenging<br />
business landscape. u<br />
Right: Food being<br />
delivered to those<br />
who need it<br />
Right: The impact of<br />
the pandemic will affect<br />
more women than<br />
men as they are<br />
more vulnerable to<br />
economic shocks<br />
46 | MAY <strong>2020</strong>
MAY <strong>2020</strong> | 47
It is apt to quote what Henry <strong>May</strong>, secretary of<br />
the ICA (1913-1939) who upheld the dignity and<br />
increased the prestige of the ICA all over the world,<br />
wrote in the Review of International <strong>Co</strong><strong>op</strong>eration:<br />
“United and common action on the part of<br />
<strong>Co</strong>-<strong>op</strong>erators is necessary. The organisations of<br />
capitalism, private trade and industry will not<br />
remain meekly in the background to accept the<br />
crumbs that fall from the conference table. Neither<br />
should we, but rather take all actions to present<br />
the claims of the organised consumers and the<br />
superlative value of the co-<strong>op</strong>erative economic<br />
system as an equitable means of sharing the<br />
world’s resources and guaranteeing good relations<br />
between all pe<strong>op</strong>le. It is ours to formulate the<br />
co-<strong>op</strong>erative point of view and to educate public<br />
<strong>op</strong>inion to accept it.”<br />
<strong>Co</strong>-<strong>op</strong>eration among co-<strong>op</strong>s<br />
This is the time to enhance Principle 6:<br />
<strong>Co</strong>-<strong>op</strong>eration among <strong>Co</strong>-<strong>op</strong>eratives. It was done<br />
on a global scale in earlier times through the<br />
<strong>Co</strong>-<strong>op</strong>erative Wholesale Society and the<br />
<strong>Co</strong>-<strong>op</strong>erative Trading Agency. The latter was<br />
based on identified consumer needs; therefore<br />
production it called forth was not speculative,<br />
ensured economic use of resources and enabled<br />
economies of scale. This time we can leverage<br />
technologies and emerging platforms to ensure<br />
trade on scale happens.<br />
<strong>Co</strong>-<strong>op</strong>eratives, as pe<strong>op</strong>le-centred businesses,<br />
can look at member needs and ascertain<br />
support requirements. For example, some credit<br />
co-<strong>op</strong>eratives are already deferring loan<br />
repayments; while this could impact their business<br />
in the short-term they are keeping their member<br />
interests at the centre. Credit and insurance<br />
co-<strong>op</strong>eratives can step up and provide assistance<br />
to many of the worker and services co-<strong>op</strong>eratives,<br />
which have had to shutter their <strong>op</strong>erations, defer<br />
payments and lay off their workers.<br />
Some co-<strong>op</strong>eratives are using their <strong>Co</strong>-<strong>op</strong>erative<br />
Devel<strong>op</strong>ment Fund meant for education to provide<br />
medical and other supplies. This short-term<br />
measure can, in the medium and long term, extend<br />
to enhance and long-term to enhance co-<strong>op</strong>eration<br />
among co-<strong>op</strong>eratives. Members themselves need<br />
to ensure they adhere to measures put in place by<br />
the government and support their co-<strong>op</strong>eratives<br />
rather than look for short-term gains outside.<br />
A stark future for youth<br />
Surprisingly, in the history of ICA’s emergence and<br />
re-emergence, there is little mentioned in terms<br />
of involving and engaging the youth. This time it<br />
has to be different because of the magnitude and<br />
the degree of impact on younger pe<strong>op</strong>le. Many<br />
millennials have had to weather two economic<br />
crises – one, the 2008 global financial crisis,<br />
near the beginning of their careers; and now,<br />
midway in their career, <strong>Co</strong>vid-19. In the US,<br />
62% of millennials reported living paycheck to<br />
paycheck in 2019, and even those who feel they<br />
have a secure job are wondering if it’s just a matter<br />
of time before they don’t. The current downturn<br />
stands to derail millennials during a phase of life<br />
considered crucial for earning potential and major<br />
life choices.<br />
ICA president Ariel Guarco, while inaugurating<br />
the ICA Global Youth Forum in Malaysia, said:<br />
“Young pe<strong>op</strong>le are not the future of the movement.<br />
They must be the present, because the urgent<br />
problems of today mean the future of our<br />
movement and our civilisation is at stake.”<br />
Look to our leaders<br />
Among the reasons for the ICA’s continuity and<br />
re-emergence despite all odds were the adherence<br />
to ICA’s <strong>Co</strong>nstitution, which provided equity<br />
and legitimacy; <strong>Co</strong>ngress, which overcame<br />
nationalistic chauvinism to unite under a common<br />
banner (ICA); Central and Executive <strong>Co</strong>mmittees,<br />
which provided visionary leadership and ensured<br />
ICA’s place around global tables (ILO, UN); and the<br />
Secretariat, which provided continuity.<br />
Today, the ICA is not just central, but with<br />
regional and sectoral branches; its governance<br />
is not just global, but across all regions; its<br />
composition is not just Eurocentric, but diverse<br />
in gender and culture. It is up to this global and<br />
diverse leadership to step up, provide the vision<br />
and direction, and unite co-<strong>op</strong>eratives under the<br />
banner of the ICA.<br />
In conclusion: all in it<br />
The ICA and its member co-<strong>op</strong>eratives have<br />
united to overcome perilous circumstances by<br />
constant evolution, modifying their original forms<br />
and functions according to the circumstances<br />
and needs of their members. During these<br />
times, they have had to contend with financial<br />
stringency as a consequence of dislocation of<br />
trade and production, compounded by economic<br />
consequences – but they stuck together, knowing<br />
that international collaboration between national<br />
co-<strong>op</strong>erative movements, in economic and social<br />
activities, was superior to competition. We are all<br />
in it, let us do it!<br />
The views expressed<br />
here are done so in a<br />
personal capacity<br />
48 | MAY <strong>2020</strong>
The <strong>2020</strong> <strong>Co</strong>-<strong>op</strong>erative Press<br />
Annual General Meeting<br />
Due to the ongoing <strong>Co</strong>vid-19 pandemic, it is unlikely that we will be able to hold a physical<br />
<strong>Co</strong>-<strong>op</strong>erative Press AGM. We will instead be aiming to convene a digital AGM, with further<br />
details – including those of director elections – to be confirmed.<br />
1–3pm, 19 June<br />
In accordance with Rule 20 of the <strong>Co</strong>-<strong>op</strong>erative Press Rules, any member may submit a<br />
pr<strong>op</strong>osal to the Annual Meeting of members in writing to the Secretary.<br />
The timetable is as follows [please note the updated dates]:<br />
Friday 22 <strong>May</strong> <strong>2020</strong><br />
Closing Date for Receipt of Pr<strong>op</strong>osals and Director Nominations<br />
Tuesday 26 <strong>May</strong> <strong>2020</strong><br />
Agenda, Pr<strong>op</strong>osals and Election Ballots sent out to members<br />
Wednesday 17 June <strong>2020</strong><br />
Closing date for receipt of Ballots and amendments to Pr<strong>op</strong>osals.<br />
Annual Accounts sent out to members and made available online.<br />
With regard to amendments to any pr<strong>op</strong>osals (as stated in Rule 21), any member may send to<br />
the directors any amendment to any pr<strong>op</strong>osal appearing on the agenda or any amendment<br />
to any matter forming part of the business of the meeting, and provided such amendment be<br />
received by the secretary prior to the Annual Meeting, it shall be circulated to members as<br />
soon as is practicable as an additional business paper for consideration at the meeting.<br />
Please note that by submitting a pr<strong>op</strong>osal, members are committing themselves to attend the<br />
Annual Meeting if their pr<strong>op</strong>osal is accepted onto the Agenda.<br />
For further updates on the AGM and Director Election, please visit<br />
www.thenews.co<strong>op</strong>/AGM<strong>2020</strong><br />
The Secretary<br />
<strong>Co</strong>-<strong>op</strong>erative Press Ltd, Holyoake House,<br />
Hanover Street, Manchester, M60 0AS<br />
secretary@thenews.co<strong>op</strong>
DIARY<br />
The <strong>Co</strong>vid-19 crisis had<br />
led to the postponement<br />
of many co-<strong>op</strong> events –<br />
including some of those<br />
listed below.<br />
If you would like to add any<br />
postponements – or let us<br />
know of any virtual events<br />
taking place instead,<br />
please email us at:<br />
events@thenews.co<strong>op</strong><br />
<strong>Co</strong>-<strong>op</strong>eratives UK has moved a number<br />
of events online.<br />
Check out uk.co<strong>op</strong>/all-events for updates<br />
<strong>Co</strong>-<strong>op</strong>erative <strong>Co</strong>llege Webinars:<br />
A number of webinars are available to<br />
view on the college’s website on a range<br />
of t<strong>op</strong>ics including:<br />
• The Hidden Alternative: <strong>Co</strong>-<strong>op</strong>eratives<br />
• Leading <strong>Co</strong>-<strong>op</strong>eratives – democratic<br />
practice<br />
• Gender and the <strong>Co</strong>-<strong>op</strong>erative Difference<br />
Available at: co-<strong>op</strong>.ac.uk/event-calendar<br />
Think 20 (4-7 <strong>May</strong>, Dallas)<br />
CO-OP Financial Services has postponed<br />
the event until 17-20 August. It will<br />
also hold a one-day virtual conference<br />
in <strong>May</strong>, with the exact date and content<br />
to be confirmed. All those currently<br />
registered will be automatically registered<br />
for both rearranged events. However,<br />
those who cannot attend the new dates<br />
have until 1 August to cancel and receive<br />
a full refund.<br />
Worker <strong>Co</strong>-<strong>op</strong> Weekend<br />
(15-17 <strong>May</strong>, Peak District)<br />
In light of the <strong>Co</strong>vid-19 pandemic this<br />
year’s Worker <strong>Co</strong>-<strong>op</strong> Weekend has been<br />
cancelled. Those who have booked will<br />
be contacted and offered a full refund.<br />
Platform co-<strong>op</strong>s now!<br />
An entrepreneurship online course<br />
to create platform co-<strong>op</strong>eratives<br />
(<strong>May</strong> 26 - July 20)<br />
An emergency <strong>Co</strong>vid-19 online course<br />
to support the rising ecosystems of<br />
co-<strong>op</strong>erative digital labour platforms<br />
in response to unemployment.<br />
Open <strong>2020</strong> (11-12 Jun, London)<br />
The Open <strong>2020</strong> conference has been<br />
postponed until later in the year. All<br />
tickets purchased for the June event<br />
will be automatically transferred to the<br />
new date. Organisers will still be holding<br />
an online event on 11-12 June <strong>2020</strong>.<br />
More info on this at: <strong>2020</strong>.<strong>op</strong>en.co<strong>op</strong><br />
UK Society for <strong>Co</strong>-<strong>op</strong>erative Studies<br />
to host virtual lecture on governance<br />
(29 Jun)<br />
This year’s <strong>Co</strong>-<strong>op</strong>eratives Fortnight<br />
lecture, hosted by the UK Society for<br />
<strong>Co</strong>-<strong>op</strong>erative Studies, will be delivered<br />
online on 29 June, from 6.30-8pm.<br />
In her lecture, Prof Sonja Novkovic,<br />
from Saint Mary’s University in Halifax,<br />
Canada, will focus on governance in<br />
co-<strong>op</strong>eratives from a humanistic<br />
economics perspective.<br />
Details of the free lecture and how to<br />
book are available at: bit.ly/2VpywrI<br />
UKSCS conference (2-4 Oct)<br />
The UK Society for <strong>Co</strong>-<strong>op</strong>erative<br />
Studies has called for papers for this<br />
year’s conference, at the University of<br />
Lincoln. Pr<strong>op</strong>osals can be orientated<br />
towards generating debate, facilitating<br />
experimental learning activities or<br />
reporting the findings of research. The<br />
deadline for submissions is 30 <strong>May</strong>.<br />
https://ukscs.co<strong>op</strong>/call-for-papers/<br />
NCBA Impact <strong>Co</strong>nference (7-10 Oct)<br />
The <strong>2020</strong> <strong>Co</strong>-<strong>op</strong> IMPACT <strong>Co</strong>nference,<br />
scheduled for October 7-9, will continue<br />
as planned, with the addition of an<br />
all-new virtual online component. Now<br />
a hybrid event, IMPACT <strong>2020</strong> will still<br />
include live, in-person programming at<br />
the Marriott Metro Center in Washington,<br />
DC. The rescheduled <strong>Co</strong><strong>op</strong>erative Hall of<br />
Fame reception, banquet and induction<br />
ceremony will also be held at IMPACT<br />
<strong>2020</strong>. The <strong>Co</strong>-<strong>op</strong> Festival has been<br />
postponed until 2021.<br />
LOOKING AHEAD (TBC)<br />
Stir to Action Festival (14-16 Jul)<br />
CCIN <strong>Co</strong>nference (7-8 Oct)<br />
<strong>Co</strong>-<strong>op</strong>erative Party <strong>Co</strong>nference (16-18 Oct)<br />
50 | MAY <strong>2020</strong>