Co-op employees back reform agenda says Myners

LORD Myners says he has had “hundreds” of supportive emails from frustrated Co-operative staff, backing his reform agenda.

The group’s senior independent non-executive director told TheBusinessDesk.com that he fears the group could be forced to sell more assets by its lenders unless they see progress being made.

He claims there is a “faux democracy” running the group, and said employees have reacted positively to his criticism of the existing structures are desperate for positive change

“I have had hundreds of emails and messages from staff at Angel Square (the Co-op’s Manchester headquarters) saying things like, ‘Thank goodness someone has spoken up’ and, ‘We could have told you this’. I really hope that the group listens.

“I have done all I can. In medical terms I have examined the patient, given my advice and told it to change its lifestyle. It’s now up to the patient to do this.”

Asked about the consequences of his reforms following what he called “deplorable governance failures” not being accepted by the group’s 600 elected members, he said: “There will be more attrition, I’m afraid… Even since the 1950s there has been a Co-operative way of not doing anything until it is forced upon them. I think we are close to that point.”

On the question of the £1.4bn debts owed to a six-bank consortium, he said: “They want to feel their money is in safe hands, if they don’t they will ask for repayment. The Co-op will be able to do that, but may have to sell more assets than the farms and the pharmacies.”

As well as wanting to replace the group’s elected board of 21 with a slimmed down 10-strong unit – of which eight would be experienced non-executive business professionals – Lord Myners has proposed the creation of a new 50-strong National Membership Committee to provide oversight of the top body and the extension of voting rights to all individual members of the Co-op.

“The management need a strong board. The current team, although weakened by Euan Sutherland’s exit, is experienced.

“In the past the board has not been able to challenge management, or if they have it was for the wrong or minor issues.”

His report adds: “I would say that the group board and many of the regional boards are still stuck in denial over this near ruinous failure of governance, whereas the vast majority of ordinary members feel justified anger.

“Radical decisions on governance structure need to be taken very soon – and with resolution – if the Co-op, as my mother knew it, is to be saved.”

Finally, given the current crisis, and the level of scrutiny over the group’s future, he called for the annual meeting on May 17 in Manchester, to be open to the media, rather than held behind closed doors.

Lord Myners, who will attend the meeting, has already announced his resignation from the board in protest at the failure of some colleagues on the board to accept that major change in governance must happen.