Showing posts with label banking crisis. Show all posts
Showing posts with label banking crisis. Show all posts

Tuesday, 6 May 2014

The Co-Operative. 1844 - (2014)...?

















It all began with the Industrial Revolution. Vast swathes of subjects who had lived off the land for generations traded country life in for the attractions of the new cities and towns sprouting up, and more specifically for the less precarious and seasonal living offered by the new factories and mills. However living by the clock, rather than the season, had its own drawbacks. With only half a day off each week for most and crowded living conditions, there was neither time nor land to continue growing their own vegetables and raising their own animals. Some factories took advantage of this by paying their workers in tokens, redeemable only in exchange for provisions purchased in their own onsite 'truck shops' where workers were forced to pay over the odds, often for poor quality goods such as sugar adulterated with sand or flour adulterated with chalk. The fact that many mills and factories also built the housing for their workers enabled them to take advantage of another source of profit from and control over their employees - rent. If a worker became ill or disabled, he or she could then be evicted to make way for an able-bodied worker. Being a skilled weaver or tradesman offered no protection from this exploitation as living conditions were continually driven down for all in the name of profit maximisation.

Against this backdrop, the first trades unions were formed to campaign for basic rights and better conditions for workers and after a few attempts in various areas with mixed results, ten weavers and twenty others scraped together the equivalent of £1 each over the course of four months to form The Rochdale Society of Equitable Pioneers the Co-Operative Society in Rochdale in 1844, the branch that was to become the bedrock of the whole modern Co-Operative Movement. On 21 December 1844, they opened their store with a scant selection of butter, sugar, flour, oatmeal and a few candles. Within three months, they had managed to expand their selection to include tea and tobacco, and they were soon known for providing high quality, unadulterated goods. A decade later, the British co-operative movement had grown to nearly 1,000 co-operatives.

Over the remainder of the 19th century and into the 20th century, the co-op provided more and more provisions and goods until whole Co-Op department stores selling everything under one roof began to spring up and additional services such as banking, insurance, funerals and even adult education evening classes were added for those who wanted to better themselves or had perhaps left school at 12 to go into pits, mills or domestic service and had had little formal education. The Co-Op even ran social activities and had dance halls. The Co-Op were also responsible for one of the first loyalty schemes known as the 'divvy'. Each time a customer shopped at the co-op they would receive divvy stamps which they accumulated into a book until they had enough to buy Christmas treats for the family or saved towards larger purchases such as furniture, though large items were also often available on hire purchase or for rent. Later still, came Co-Op travel and Co-Op development to provide more affordable homes. The people owned the Co-Op and one membership equaled one vote.

The Co-Op first began to suffer when Sainsburys began to expand and Tesco and Waitrose emerged, often selling greater variety of food at competitive prices and then diversifying into fancy goods and offering their own loyalty cards and services.  This process has continued with additional and cheaper supermarkets joining the market with 'metro' mini stores opening on many street corners in addition to hypermarkets and now the rise of online competition. Suddenly the Co-Op seems drab and old-fashioned, Co-Op department stores are closing and the divvy stamp has gone too, though a loyalty card scheme now exists in its place.

Its food often seems pricey for what it is and the food is either very basic and bland such as macaroni cheese or there are a few products in the extra-special range such as chocolate chip cookies or luxury ice cream which are, converersely, superb with little in the mid-range quality stakes. They do however distinguish themselves by being the only supermarket to continue offering cruelty free household products and cosmetics, albeit in limited range, though they are surprisingly quiet about this unique selling point. What there doesn't seem to be is consistency, and many stores Co-Op stores are also slow to replenish empty shelves or serve at the tills when there is a queue, which are essential basics to any supermarket thriving.

However the ethical side and refusal to invest in weapons manufacturers etc kept many of us loyal and for many years the Co-Op provided the first and best ethical online bank, Smile (offering a superb 4% on my current account when I opened it over a decade ago, though this has now eroded to nothing as with the other banks).

Then over the past decade the scandals started to hit after disastrous decisions to try and expand the Co-Op empire with the (failed) acquisition of Summerfield supermarkets, the take-over of Britannia Building Society and the (failed) takeover of part of Lloyds banks. At the helm of the Co-Op bank during the latter mistakes turned out to be an inept banker and drug-addled self-styled methodist minister. Simultaneously a scandal erupted in the Funeralcare side of the business when it was revealed that bodies were unceremoniously stored in vast central warehouses, having to be transported back to the relevant towns and villages as required for cremation and burial, rather than reposing in the local funeral homes prior to the funeral as their loved ones imagined they were and had paid for to be the case, carrying with it, considerable risk of mistaken identity in transit, aside from the indignity of such treatment of the dead.

So instead of pouring its resources into turning its own fortunes around by sorting its own house out first and making the best of its assets and unique selling points, the Co-Op, without any recourse to its members/owners by way of a ballot, or it now transpires, the advice or direction of top industry experts, decided to look outwards to a disastrous programme of expansion and behaved like a corporation instead of a co-operative.

Consequently its members are disgusted, its ethical principals are in tatters (and the Co-Operative organisation had previously received high praise in many quarters including from Kofi Annan) and parts of the business such as the bank are in financial crisis with a 'black hole' of £1.3bn, to the point the bank at least, is unlikely to survive.

The Rochdale Pioneers would be turning in their graves.

Thursday, 5 July 2012

Panda Awareness Week etc

What better week to return to blogging than the first ever world Panda Awareness Week?

Who would have thought our OxFringe show Panda Pride! would have led to it and BamBam and BooBoo's world dominational aspirations weren't just a pipe dream?
; - )

Seriously, it was a most enjoyable debut show and made the Oxford Times, but I doubt it held quite that much sway! Besides which, our pandas rather prided themselves on their rarity, and being lazy, decided they rather liked captivity and having 'servants' (aka zookeepers) too. If only they could get their paws on more doughnuts (the proper ones with jam in, that is), their lives would be complete. Well almost.

Anyway, Panda Awareness Week - surely more uplifting than National Continence Week, though personally speaking, I like to hope I celebrate that particular week every week!

Funny how some charities/causes get a day dedicated to them and others a week, a month or even a year. I wonder why that is. Who decides which cause merits what?

Following our brief surfing of the panda zeitgeist, aside from sorting out and amalgamating my many hundreds of electronic files from over the years into meaningful folders and subfolders and binning the rubbish (can't believe I used to be so untidy!), I have begun work on a World War I screenplay which I hope to have finished in time to attract TV commissioners for the centenary of the outbreak of WWI. Am not going to say too much about it at this stage for obvious reasons except that it is inspired by an aspect of the Home Front which has seldom been covered before, but owing to this factor, requires many times more research time than writing time.

Another reason for my recent blog-lag is that so much terrible stuff has been going on with the banking crisis/recession, I didn't want to pen any more depressing posts about it, looking at the more-than-enough postings I have previously written on this subject. Suffice to say that my own bank accounts and credit card are well away from the big 4 banks and have been with the Co-Op for some years, so I reckon the most positive contribution anyone can make is to vote with their feet on the matter and kick these financial institutions in the bottom line! Notwithstanding, I may have to revise my policy following the recent Co-Op funeralcare scandal. Are there no companies left with ethical credentials to be trusted I wonder?

I once started writing 'The Armchair Anarchist' about all the things an individual could do to make the world a better place if they were as lazy as me, but somehow it never got finished surprise, surprise, and meanwhile the world became a great deal more complicated as derivatives and hedge funds and Russian-doll like bodies which swallowed one another until the original could no longer be seen, let alone held accountable for anything, became the norm, among many other fiendish schemes designed to scramble our brains into spaghetti as we try to keep a grip and make sense of it all. Perhaps 'The Armchair Analyst' would be more useful now, to share tips on how to stay sane when all around us has gone mad.

So, I am going to try and raise the number of more positive postings from now on, though I cannot promise to forego the odd rant entirely!

Monday, 29 September 2008

The End of The Affair...

'I've told you, it's over'

'Is there nothing we can do to change your mind?'

'No'

'It's nothing that we've done…?'

'Look, you don't phone, you don't e-mail, you only write to enclose narcissistic jargon-filled leaflets about how wonderful you think you are - for years and years. And now four phonecalls in as many hours. Why the sudden interest, especially when your interest was previously dropping like a stone?'

'We just want you to be happy in the relationship. Perhaps you weren't taking advantage of all that we could offer. Perhaps we can offer more.'

'You mean like a higher interest rate?'

'Now let's not be hasty here. We gave you a bankety bank cheque book and pen and offered you a Treats Plus account'

'Oh the one for £20-a-month with all the free cr*p I was never going to use - the one you automatically 'upgraded' me to without my written authority…? Wasn't that illegal anyway?'

'The ombudsman found us merely ill-advised I think you'll find. But that's water under the bridge now - there's really no need to cheat on us with another bank. But we're prepared to overlook that.'

'Can I come back as a New Customer and get the free laptop?'

'Hmmm, we'd have to see. Might prove a tad unethical'

'I dunno, I'm just not getting fiscal satisfaction. I don't feel you value me.'

'Well the blunt truth is you're only a medium-value added customer madam - to any bank - not just us. But if you could just break through the £25k a year income barrier - you could qualify as one of our Premium Pewter customers.'

'What's in it for me?'

'The satisfaction of knowing you're with one of the last British banks standing on its own two feet. And a pewter paperclip pyramid.'

'So I'd have to take on an extra evening job to get a pewter paperclip pyramid'

'And a matching pewter Tutankhamun pen'

'Sorry but my mind is made up. I'm leaving you'

'Do you mind telling us who for?'

'My water company as it happens. They're offering me a higher interest current account, a lower interest mortgage and all the water I can drink. Oh and marriage, an iPod and a baby.'

'You mean those fifteen years we spent together meant nothing to you - what happened to customer loyalty madam?'

'Quite'