Co-op ends the divi
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Some "Housing associations" whilst nominally co-operatives are often run in the interests of the director's remuneration: I suspect that may have been the model that the Co-op CEO wanted to go down, essentially the same as a public company where the shareholders do not receive a dividend. That many co-operators are there out of political position seems to have scuppered him: my vote in the co-op is slight but it still matters to me that I have a decent say in how my property is administered. It was noticeable in the survey they announced that they were looking at getting rid of the political wing of the co-operative.
Quote:The Co-operative group has demonstrated it is not a profit-maximising structure. It never meant to be. Instead it has elected to remain as a family of firms, not willing to sacrifice people and businesses due to short-run concerns.Clearly the future now holds great uncertainty and a lower profit rate. The large debts built up will need to be serviced. But the Co-op governance has shown that an inclusive solution must be found which delivers what customers want while generating enough profit to secure the future. Not the most profit possible at any price.Ouch! Being a cynic i think there may be a well orchestrated campaign against the co-op by the establishment business world but on the otherhand , they are exposing the myth of the co-op, for example the supposed democratic model – which isn't. http://www.theguardian.com/business/2014/mar/14/extent-co-op-shambles-laid-bare-by-lord-myners http://www.theguardian.com/business/2014/mar/14/lord-myners-coop-pull-punches ……"The Co-op is controlled by less than 100 people – ordinary members have no votes at all," said Myners. The ethos, he said, was that the management was meant to be "on tap but not on top" – reflecting the views of the members. "There's been self-serving delusion that the current model has the members in control when for the last decade or so the executive had run circles around the board."
The Co-operators hit backhttp://www.theguardian.com/commentisfree/2014/mar/23/co-op-thrive-fundamental-principles-turmoil-managers
In regards to the extra 400 million the Co-op bank has to raise to protect it against pending penalties, i have to offer some sympathy to it when part of those charges of misconduct was protecting workers in arrears by plAcing their mortgages in forbearance (deferring payments) even if it meant their interest charges for them rising.Would it be kinder to have kicked them out of thir homes as the regulator (and Robert Peston of the BBC) suggests? http://www.bbc.com/news/business-26711709
alanjjohnstone wrote:In regards to the extra 400 million the Co-op bank has to raise to protect it against pending penalties, i have to offer some sympathy to it when part of those charges of misconduct was protecting workers in arrears by plAcing their mortgages in forbearance (deferring payments) even if it meant their interest charges for them rising.Would it be kinder to have kicked them out of thir homes as the regulator (and Robert Peston of the BBC) suggests? http://www.bbc.com/news/business-26711709During my youth Coop were part of the working class movement, and several strong Coops were formed by workers unions. Nowadays Coops are part of the banking world, and ironically some are protected by governments and large corporations. It does show that reformism is only a dead end for the working class
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The Weekly Worker analysis while agreeing with our own that it is defensive tactic of the working class but appears to argue that competition was a late development and it was a reluctant capitalist organisation. http://www.cpgb.org.uk/home/weekly-worker/1006/circling-the-drain
http://www.bbc.co.uk/news/business-27217198
BBC wrote:Unlike a number of other financial institutions, before the merger, the Co-operative Bank obtained most of funding from its own customers' deposits.As a result, it was not adversely affected when the international money markets dried up during the financial crisis and considered itself as having "weathered the crisis well".But the bank was hurt by the prolonged period of low interest rates introduced by the Bank of England, which depressed its net margins and profitability.I think that's the key, although, in the way of things, this report cites personal failings, these would not have been an issue had there been a lot of profits to go around. Teh case of the co-op shows how the general inpersonal trends of the markets interracts with teh personal specifics of people in offices. I suppose psychologically we personalise faults, at the expense of looking at the system.
The Co-op has sold its farms business for £249m to health charity the Wellcome Trust. The sale includes 39,533 acres of land, 15 farms, more than 100 residential properties, as well as some 27 commercial properties. All existing farms management and employees will transfer to Wellcome. Co-op also has its 774-strong pharmacy chain for £620m to Bestway Group. http://www.bbc.com/news/business-28636544
Once more nail in the coffin of the co-op "ethics"The co-operative group famed for its commitment to Fairtrade has told its members it will be unable to continue its pledge to stock the products because fierce supermarket competition makes it economically unviable.http://www.theguardian.com/business/2015/apr/19/co-op-group-competition-means-we-cannot-fully-commit-to-fairtradeI'm not surprised since the co-op is now headed by ex-Royal Mail boss Allan Leighton who contributed prominently to the demise of any community role of the post office when i worked for them.
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