Co-operative News - Consumer

Use of co-operative name under threat by British Government

AnthonyMurray — Thu, 02 May 2013 08:29:31 +0000

Co-operatives UK has launched a campaign to protect the use of the co-operative name by new businesses.

The name is under threat due to a current Government consultation to delist its protected status for new business registrations.

Co-operatives UK is urging co-operators to respond to the Company and Business Names Consultation being run by Department for Business, Innovation and Skills by May 22nd.

The Government department is proposing to remove the protection for the co-operative name, which currently ensures new business registrations adhere to co-operative principles.

In the consultation, BIS said all words specified on the sensitive list — which also includes commission, council and licensing — were to protect the public from being misled by a business name. But it said as “language evolves” this may no longer be considered a risk.

The list does not prohibit the use of those words, but it allows specified bodies to submit an objection on the usage, such as the Charities Commission or the Department of Health.

The BiS ‘red tape challenge’ is proposing to either repeal the sensitive list or to retain, but reduce it. In removing the statutory instrument behind the list, BiS said this will allow companies to choose any name, which would “significantly speed up registration” and ensure new registrations do not go through a “costly and time consuming process”.

But BIS said a reduced list would need to show a clear criteria for approval for those who want to use protected words such as ‘co-operative’.

Co-operatives UK's Secretary General Ed Mayo said the public associate co-operatives with being "trustworthy, business-like and fair" and that he is concerned this will diminish. He commented: "We are extremely concerned that without this protection, rogue businesses may trade off, and potentially ultimately, tarnish, this reputation. We are urging people to help protect the good name of co-operatives.”

In its draft response to the consultation, Co-operatives UK said that between 2008-2011 the number of co-operatives grew by 23 per cent and that it is concerned “failure to protect these terms could run counter to consumer protection measures, and also tarnish the reputation of these businesses”.

The trade organisation for co-operatives said that in 27 years of registering co-operatives it has never been an administrative burden; and Helen Barber, Head of Advice and Policy, said the body actively challenges applications on average three to four times each year. She added: “There may well be more, though, which aren't brought to our attention currently, which is why we'd like BIS to take this opportunity to strengthen protection in a way that allows Co-operatives UK to challenge all rogue companies trading on the good name of co-operatives."

In its consultation response, Co-operatives UK highlighted two registered companies that did not appear to be operating under the “values and principles” of the movement. It said “Co-operative Gardeners Ltd” was “registered by one sole Director, which is clearly therefore a one person company not a co-operative under international guidelines”.

It also highlighted “The Consumer co-op” whose “rules have no signs of co-operative principles whatsoever” and is an example of how “a non-cooperative markets itself as a co-operative in order to position itself as an ethical business and benefit from consumer trust”.

• More information about how to respond to the consultation are available at www.uk.coop/consultations

Co-operatives create 8,000 new jobs while unemployment hits record in Spain

Anca — Sat, 27 Apr 2013 09:04:32 +0000

At a time when more then six million people are unemployed across Spain, co-operatives have managed to not only maintain, but also increase the number of jobs by 7.2 percent in the third quarter of 2012.

By contrast, the unemployment rate in Spain has reached 27.2 per cent, the highest since 1976. Although it has recently slowed, the unemployment rate has continued to increase ever since the crisis emerged in 2008. In mid-2007 the rate reached 7.9 percent.

Figures released by the Spanish Ministry for Employment confirm that co-operatives have created 8,000 new jobs in the first half of 2012.

According to the Spanish Confederation of Workers Co-operatives (COCETA), employment figures in worker co-operatives doubled in the first half of 2012, compared to the previous year. More than 250,000 people work in 17,000 co-operatives.

Juan Antonio Pedreño, President of COCETA, said: “This clearly shows that worker co-operatives are an important option when it comes to creating jobs that governments should value in order to help local economies.”

Mr Pedreño also said that social economy enterprises are the best example of job creation: “We continue to argue that this is always the case, but that during crisis co-operatives show they are capable to create new jobs, while other enterprise models are destroying them; and this happens even though co-ops do not enjoy the same access to finance”.

Following on from the growth of co-operatives, the Spanish Ministry of Employment and Social Security has joined efforts with the Spanish Enterprise Confederation of the Social Economy (CEPES) to launch a strategy to boost entrepreneurship and youth employment. Last week, CEPES agreed to play a key role in the implementation of the three-year strategy.

More than half of young people aged under 25 seeking employment cannot find a job and more than 35 per cent of young people currently unemployed have been in this situation for over a year.

Co-operatives are a key element in this strategy; the Ministry is seeking to encourage more young people to start their own social enterprises and co-operatives. With this strategy, unemployment benefits may be used to make a capital contribution to any type of newly created business, included co-operatives. Adopted in February, the strategy has already generated 20,454 jobs for young people across Spain, who are now registered as self-employed.

The strategy acknowledges that co-operatives have shown a greater ability to maintain employment during the years of economic crisis due to their internal flexibility mechanisms.

The best example is the case of Mondragon Corporation, which is employing 83,000 people. The corporation has coped relatively well with the financial and economic crisis. Mutual support and joint action as well as an efficient crisis management through support institutions and business-to-business co-operation were key elements to Mondragon’s successful approach to the crisis.

Mikel Lezamiz, Mondragon’s Co-operative Development Manager, explained why Mondragon's policies have been successful: “We are passing cash within co-ops in order to solve the lack of liquidity. We are also buying together. Inter-co-operation is the most important feature of Mondragon.”

Mondragon has also passed workers from some co-ops to others in order to avoid making staff redundant. Since workers or employees are directly involved in the decision making, it is less likely for them to cut jobs, said Mr Lezamiz.

According to COCETA, 80 per cent of those that form a co-operative have a permanent job, because they become members of that co-operative.

Co-operative Group drops deal for Lloyds branches

Anca — Tue, 23 Apr 2013 14:51:54 +0000

The Co-operative Group has withdrawn from the deal to acquire 632 Lloyds Banking Group branches and the associated 4.8 million customers.

According to the Group's Chief Executive, Peter Marks, the decision to back out is due to the economic downturn and increasing regulatory requirements. He said: “After detailed and thorough consideration of all aspects of the Verde transaction, we have decided, at this time, that it is not in the best interests of our members to proceed with the transaction. Having worked closely and constructively with Lloyds we are naturally disappointed to have reached this conclusion.

"However, against the backdrop of the current economic environment, the worsened outlook for economic growth and the increasing regulatory requirements on the financial services sector in general, the Verde transaction would not currently deliver a suitable return for our members within a reasonable timeframe and with an acceptable level of risk."

A successful deal would have tripled the Co-operative Bank’s branch network, with the Group becoming a major competitor to the big four UK banks.

The state-rescued Lloyds bank was being forced to sell the branches under European Union competition rules before the end of November. The cost for the Group was due to be £350m upfront and an additional £400m based on performance targets before 2027, which would have taken its market share from one to seven per cent, with a total of 11 million customers.

The decision to drop the deal with Lloyds came three months after the Bank’s finance chief, James Mack, had quit. Press speculation at the time said the deal was under pressure due to the departure of Mr Mack.

Mr Marks added: "The Verde transaction offered a significant opportunity to The Co-operative and the sector as a whole as it would have created a major challenger bank. It was right therefore, for us to explore it in the detailed way we have. We were, however, clear from the outset that Verde was a complex transaction and that this was not the only option open to us to develop our Bank.

"We remain committed to driving the Co-operative Group forwards under our clear strategy and, as part of that, we will continue to develop our Bank for the long-term, offering a real alternative on the high street with our strong, established brand and our reputation as a trusted financial services business."

In the last financial year, the banking arm of the Co-operative Group accounted for a £600m loss in 2012, in a year which was described by Mr Marks as a challenging one. The Bank spent £150m to cover claims for mis-sold payment protection insurance. Losses in the banking arm of the Group were also caused by a £150m writedown of IT systems and £377m of bad loan losses.

Last month it was also announced the Group was to sell-off its insurance business in two parts, which would raise capital to allow the organisation to focus on its "relationship banking activities" and "strengthen" its capital position.

António Horta-Osório, Chief Executive of Lloyds Banking Group said: “We are disappointed that the Co-operative Group is unable to complete this transaction. However, we are well advanced in our plans to bring the Verde business to the UK High Street during the summer through the TSB Bank, and will now proceed with the option to IPO the business, subject to the necessary approvals. The TSB Bank will be an attractive retail and commercial bank that will have around 630 branches across the UK, a strong management team and will be a real challenger on the high street.”

ICA launches website for Cape Town event

AnthonyMurray — Tue, 23 Apr 2013 11:11:08 +0000

The official website for this year’s biggest global gathering for co-operators has been launched.

Two thousand co-operators from around the world are expected to attend the International Co-operative Alliance’s Global Conference and General Assembly from November 1-5 at the Cape Town International Convention Centre.

South Africa will host the ICA's first General Assembly on the continent, which will be focused on the Blueprint for a Co-operative Decade.

The event’s theme, Co-operative Decade: Growing the Co-operative Movement, will be the common thread throughout the week of meetings of ICA bodies, plenary sessions and the General Assembly.

On the website, the programme outlines a series of meetings between ICA committees and sectoral organisations, alongside a youth conference and the main conference followed by breakout sessions. Also listed are details about booking hotels and organising trips.

During the week there will also be a number of booths selling co-operative books and goods, providing information about co-operatives, showcases, and a number of other side meetings.

The ICA event will be followed by the ICMIF conference, which is the ICA’s sectoral body for the insurance sector, from 6-8 November. The ICMIF event will be a global gathering of mutual and co-operative insurance leaders.

• To find out more about the Cape Town event, visit: www.capetown2013.coop

Event:

ICA's Global Conference and General Assembly

Take part in research to help shape a new brand for co-operatives

AnthonyMurray — Mon, 22 Apr 2013 11:43:56 +0000

Co-operatives around the world are being invited to take part in a research project to help influence the design of a global identity for the co-operative movement.

London-based worker co-operative Calverts has been appointed by the International Co-operative Alliance to design a visual identity for the worldwide co-operative brand. The print and design co-opertive has launched a research study, inviting participation from around the world.

Building on the wide adoption of the International Year of Co-operatives logo, the new brand will include the IYC strapline ‘Co-operative Enterprises Build a Better World’, which the ICA Board has agreed to use.

The logo will be something that can be adopted by all co-ops, whether they wish to adopt it as a sub-brand or add it to promotional materials. At its Moscow board meeting at the end of March, the ICA agreed to become a sub-brand and change the identity of the organisation.

Sion Whellens, project director at Calverts, said: “For Calverts, this is a great honour, a great challenge and a great opportunity. The brief places the development of a new global identity marque and key message — ‘Co-operative Enterprises Build a Better World’ — at the top of the brand message tree.

“And a new identity for the ICA and its subsidiary brands will flow from it and will also allow other co-operatives to use the brand. This presents special challenges, but we believe this is the appropriate architecture for a diverse social and business movement and its international apex body.”

Charles Gould, Director-General of the ICA, said the organisation wants to work with co-operatives around the world to build a new identity. He commented: “The emblem will be used to provide a ‘unity of purpose’ for the global co-operative movement and will be capable of almost unlimited application – contemporary and business-like and fit for cross-border use.”

The ICA will formally launch the identity at its General Assembly in Cape Town in November. Prior to that, Calverts has launched a research project to allow co-operatives to give their views on co-op identity.

• To take part in the research, before 9 May, visit: http://s.coop/1kbke

Planning underway for co-operative movement’s answer to ‘Davos’

Anca — Wed, 03 Apr 2013 09:57:50 +0000

The team behind the International Summit of Cooperatives is working to build on the success of 2012’s conference.

In October 2014, the second high-level business event for the co-operative movement is set to take place in Quebec City with a strong focus on delivering the International Co-operative Alliance’s objectives for a Co-operative Decade.

The first Summit gathered more than 2,800 people from 91 countries in a three-day conference marking the International Year of Co-operatives.

According to Stéphane Bertrand, Executive Director of the Summit, the event is a global forum, responding to a business need of co-operative leaders to share ideas, research and experiences in order to bring co-operation to the next level.

“The first edition was an outstanding success, it was truly more than we have hoped for,” said Mr Bertrand, adding that more than 92 per cent of the participants gave positive feedback. “Most importantly, we have not lost our identity – promoting, growing and improving the performance of co-operative enterprises.”

In recognition of the scale and contribution of the event to the Canadian province, the Québec City Chamber of Commerce and Industry recently awarded the Fidéide Award for Business Event to the Summit.

Given the success of the first conference and the awareness it generated, the organisers expect the event to play an increasingly influential role at the global economic, political and regulatory levels.

Many co-operators, including ICA President Dame Pauline Green, called for the movement to make the Summit the Davos of co-operation.

Commented Mr Bertrand: “When we speak of the ‘Davos’ of something we think of a recurring event of high calibre and high standards. We would certainly like to see the Summit mentioned in the annals of co-operation as the ‘Davos’ of co-operation, but this will only happen in time. “

Mr Bertrand added that he is expecting the same level of engagement for 2014 from both the Government of Quebec and the Government of Canada. He added: “For an event of international calibre, it is very important to have the support of the two governments.”

The 2014 Summit is expected to build on the level of youth participation. Last year, more than 180 co-operators between the ages of 20 and 35 travelled from all over the world to participate in the Future Cooperative Leaders Program. Many of them also participated in writing the International Cooperative Youth Statement 2012, which was submitted to the UN as part of the closing ceremony of the International Year of Co-operatives.

Mr Bertrand said many young people have already expressed interest in participating in the next edition as volunteers or part of the organising committee, thus a higher level of youth participation is expected for the 2014 event.

The organisers are also in talks with high-profile speakers for the next event. Last year, the conference attracted co-operative leaders, academics, economists, high-level politicians and Nobel Prize winners.

• The second International Summit of Cooperatives is set to take place in Quebec City, 6–9 October, 2014.

Join the campaign to fight for better treatment of women cocoa farmers

Emily Barker — Thu, 07 Mar 2013 15:11:50 +0000

Oxfam America has launched a campaign to encourage the top three chocolate companies in the world to treat the women who grow and pick the cocoa better.

The petition directed at: Mars, Mondelez and Nestlé asks the companies to offer the women fairer treatment, opportunities for training, and the chance to own the land they work.

To celebrate a chocolate company that does offer its women farmers better opportunities, Oxfam America announced a partnership with Fairtrade chocolate company Divine, which works with many co-operatives, for International Women’s Day.

Erin Gorman, CEO of Divine Chocolate, described her experience of visiting the Kuapa Kokoo co-op in Ghana. She met Christiania Adulsei, a 58-year old cocoa farmer.

She explained: “Christiana, like so many women in cocoa, 'has it all' – all the household duties, the cooking, the cleaning, the farming of foodstuffs. They ensure children go to school and their health is looked after. They farm cocoa and do the drying and fermenting of beans.”

Christiana joined the co-op 11 years ago with her husband, when she realised they were democratic and fair and that farmers received bonuses and a cutlass, which is one of the most tools for cocoa farmers. Unlike many women in Africa, she is a member in her own right.

Eight years ago she started as the secretary to the village recorder, the person elected by the village society to purchase cocoa for Kuapa. She started training farmers to dry and ferment their cocoa properly so that it met Kuapa’s standards of good cocoa.

“I saw that I was a good teacher and that I could keep good records, and I decided that I should become a recorder myself,” Christiana said. At the elections she stood against the recorder, a man, and won. “Kuapa trained me that as a woman I could be a recorder and could be a leader in my society."

Despite having no women’s group in her village, Christiana and the other women in her village still benefit from women’s empowerment trainings offered by Kuapa’s Gender Programme.

The programme, set up in 1998, trains women to take part in co-operative leadership. They learn to generate additional income and can access loans through the local credit union.

The three-pronged approach of building women’s confidence, skills training, and access to credit has hugely shaped Kuapa. Today 30 percent of the members are women farmers and the president of the cooperative is a woman.

Erin added: “We have a long way to go to make policy and practices work for women in small-scale agricultural production. Members like Christiana show us why it’s important to start trying to do more.”

• The Oxfam campaign is encouraging the three main chocolate companies to act more like Divine Chocolate. Click here to join the campaign.

Co-ops generate £40 out of £100 for local economy, report reveals

Emily Barker — Thu, 21 Feb 2013 15:11:56 +0000

A new study by Co-operatives UK shows co-operatives generate an additional £40 for local suppliers, customers and employees for every £100 of sales.

Research by independent economic analysts K2A carried for Co-operatives UK, followed money that was spent by customers of the local co-operative in the county of Lincolnshire.

It shows that the money spent by customers in the Lincolnshire Co-operative increased in value by going to local suppliers, to customers as a dividend and to employees in wages, who in turn spent a proportion of their money locally.

On conservative estimates, using internationally accepted benchmarks, the co-operative generated an additional £40 for the local economy for every £100 spent by a customer.

Overall, this meant that Lincolnshire Co-operative, rather than generating profits for outside investors or national or even global suppliers, generated nearly £100 million annually for the local economy.

Ed Mayo, Secretary General of Co-operatives UK said: “Money spent in a co-operative is sticky money. It stays local, because co-operatives employ local people, are owned by local people and tries to sources from local firms that do the same.

“Every pound spent in a co-operative shop is a real boost to the local economy. In fact, every pound spent in a co-operative store changes hands five times, at diminishing levels, until the final penny leaves the local economy. This adds a wonderful life to any local community."

“Co-operatives are known as trusted, local businesses. This research affirms that every pound spent in a co-operative shop is a real boost to the local economy.”

Ursula Lidbetter, Chief Executive of Lincolnshire Co-operative, said: “We’re pleased with the results of this study which show our positive impact on our local economy. Everything we do as a co-operative society is for the benefit of our members who own the business, and their local communities.

“We support these communities in a numbers of ways – by providing the rural services important to people like foodstores and post offices, by giving local producers an outlet for their goods, by giving grants and donations to local groups and by making our members better off by sharing profits through the dividend.”

The study found that the money generated for the local economy by Lincolnshire Co-operative is ‘sticky’ – after being passed on to suppliers, employees and customers it passes through local people’s hands five times, generating local wealth and jobs in the process.

It also discovered £5 million a year that would go to external investors in a conventional shareholder business is distributed to local customers as a dividend, to the 205,000 owner members of the society in Lincolnshire, which can then be spent and kept local again.

Lincolnshire Co-operative supports small local suppliers – by helping them grow their business to a scale where they can supply a large retail operation and, where local businesses supplying Lincolnshire have faced closure, the co-operative has stepped in to save the jobs and business. Lincolnshire also sustains 2,800 local jobs in all parts of the business.

The co-op also uses more than 600 local suppliers, almost half (47%) of which see their contract with Lincolnshire Co-operative as a significant part of their business.

Jenny Smith is from Jenny’s Jams, a micro-enterprise based in Lincoln which supplies the county with quality jams and chutneys. She has received support on key areas like labelling.

She said: “Working with Lincolnshire Co-operative has helped my business in a number of ways. It means that my products reach a wider audience because they are available throughout the county and it’s also good to get feedback from a large retailer on what you are making.

“I moved my business from my home to a special unit in 2011 because contracts like the one I have with Lincolnshire Co-op have enabled me to expand. It also helps other local businesses as where possible; I buy my fruit from local pick your own farms and wholesalers.”

Canadian Co-operative Awards open for nominations

Emily Barker — Fri, 08 Feb 2013 09:54:01 +0000

The Canadian Co-operative Association (CCA) are asking co-operators to put forward their nominations for the annual Co-operative Awards before 31 March.

There are four categories: the Canadian Co-operative Achievement Award, the Global Co-operator Award, the Co-operative Governance Award and Pioneer Inductees in the Canadian Co-operative Hall of Fame.

The Canadian Co-operative Achievement Award was set up in 2001, followed by the Global Co-operator Award in 2005 and the governance awards in 2008.

Donna Balkan, the Communications Manager for CCA, said: “We think it is very important to present awards as a way of honouring excellence within the Canadian co-operative movement. The individual award recipients are often unsung heroes: people who have made an enormous impact on Canadian co-operatives and Canadian society, but are not well-known outside the co-operative sector.

“For example, Ed Gebert, a longtime credit union leader from Saskatchewan who was the 2012 winner of the Canadian Co-operative Achievement Award, was largely responsible for bringing the first-ever Automated Teller Machine (bank machine) to Canada. And many of the winners of the Global Co-operator Award have been volunteers who have devoted countless hours to CCA's international development projects.”

She explained the governance award was created because of the “enormous importance CCA places on effective co-operative governance.”

The Canadian Co-operative Hall of Fame was set up to celebrate the CCA’s 100th anniversary in 2009, the Pioneer Inductees are deceased individuals who were fundamental in shaping co-operation in Canada.

Donna added: “When we created the Hall of Fame, we felt this category was very important, because the stories of legendary co-operators like Alphonse Desjardins, founder of North America’s first financial services co-operative and Father Moses Coady, a leader of the Antigonish Movement, which spearheaded the development of co-operatives in the Atlantic provinces during the Great Depression, are not often found in high school or university history books, and we wanted these people to be recognised.”

Co-operators do not need to be a direct member of CCA to nominate someone for an award. After the nominations close, the award winners are chosen by separate selection committees for each award, which usually consist of members of CCA board.

These are not the only awards given to Canadian co-ops, Canada’s French-language national co-op association, the Conseil canadien de la cooperation et de la mutualité (CCCM), has its own awards programme, and Credit Union Central of Canada also give out awards each year.

To find out more and to apply for individual categories, visit the Awards website here.

Co-operative leader Sally Jewell named to head US Department of the Interior

AnthonyMurray — Wed, 06 Feb 2013 22:16:40 +0000

President Barack Obama has nominated the leader of the largest consumer co-operative in the US to join his cabinet and oversee America's national parks and energy reserves.

Subject to confirmation by the Senate, Sally Jewell, President and Chief Executive Officer of REI (Recreational Equipment Inc.), will be appointed Secretary of the Department of Interior and will gain in seat in President Obama's cabinet.

In his nomination, President Obama described Ms Jewell as a "strong and capable leader" and that at REI she helped turn around a "stalling outdoor retailer into one of America’s most successful and environmentally conscious companies".

Ms Jewell has led REI, which designs and sells outdoor gear and clothing, since 2005 and during that time she oversaw an increase of sales from $1 billion to nearly $2 billion; added 71 stores; and greatly expanded its online business.

In the State Dining Room of the White House on Wednesday, Ms Jewell told reporters she was "humbled" and "energized" by this opportunity and that she looks forward to her confirmation hearing in the Senate within the next few weeks.

A statement from the White House added that Ms Jewell's experience of managing REI "will bring to the position integrity, keen management skills, as well as dedication to the Department's mission of managing our nation's lands".

The appointment was applauded in a statement from REI: "Sally is a remarkable leader, an excellent business person and a thoughtful steward of our public lands and resources. We believe that she will do a superb job in this very important role.

"During her tenure, Sally championed the co-op's engagement in supporting volunteer stewardship of public lands, as well as the efforts to manage REI's environmental footprint. Sally's broad business background, community leadership, and her depth of knowledge of the range of issues managed by the Department of the Interior will be of significant value to the department and great service to the nation."

Michael Beall, President and Chief Executive Officer of the National Cooperative Business Association, commends President Obama for his choice. He said: “NCBA and its members are energized by President Obama’s selection. Sally Jewell leads an extraordinary organization that represents the best of the co-operative business community, and we are pleased that she will now occupy a seat on the President’s Cabinet.

"REI is an organization that is grounded in the core principles that are shared by all co-operatives that has made them a financially sustainable business that also is grounded in volunteerism, concern for community and democratic governance. We have no doubt that her years of leadership at REI have prepared her well for this opportunity to for public service as the Secretary of the Interior.”

With revenues of $1.8 billion and assets of $1.1 billion, REI ranks as the 27th largest co-operative in the United States. REI’s 4.7 million members are among the more than 100 million Americans who participate as members of cooperatives.

More than 29,000 co-operatives operate in every sector of the US economy, generating two million jobs each year, contributing $652 billion in annual sales and possessing $3 trillion in assets.