A majority of 93 percent of the member companies want to give the crisis-ridden association a second chance.
(Photo: Reuters)
London The British industry association Confederation of British Industry (CBI) can continue to exist for the time being. At an extraordinary general meeting, 93 percent of the represented companies voted in favor of the reform plan presented by the new CBI boss Rain Newton-Smith. Seven percent voted against the renewal. A total of 371 votes were cast.
“After an incredibly difficult time, I am very grateful for the trust that our members have in us,” said the 47-year-old association leader, who has only been in office for a month. Even if there is still a lot to do, today’s result is an important milestone. On the other hand, Ann Franke, Chair of the Chartered Management Institute in London, expressed skepticism: “The CBI has given itself a much-needed breathing space, but the difficult challenge of cultural change still lies ahead of it.”
The industry association has been in an existential crisis for months. Former CBI chief Tony Danker has been summarily fired after allegations of sexual harassment. In April, independent reports by employees of drug abuse, bullying and rape led to a mass exodus of companies from what was then the most important lobby group in British industry. The association then stopped all activities.
At the extraordinary general meeting, which took place on Tuesday without the media, a reform package worked out by Newton-Smith was put to the vote. At least 50 percent of the remaining members had to agree to the proposed changes in leadership, culture and job changes.
Each company, regardless of its size, had only one vote. Siemens UK and Microsoft are said to have made efforts to get enough votes for the renewal. According to the association, it represents around 190,000 companies. However, it is unclear how many of them could or wanted to vote.
British economy is divided
It is therefore unclear whether the approval is sufficient to save the association. The financial situation is tense after the resignations of many companies, many of the 300 employees have to fear for their jobs. The image damage is enormous. Not only has the CBI been weakened by the departure of prominent companies such as Lloyds of London, Mastercard and John Lewis. What is even more serious is that the British government has stopped working with the association and has thus withdrawn the working basis for the CBI.
In addition, the British Chamber of Commerce (BCC) wants to use the weaknesses of the competitor association to set up a platform for the representation of the interests of large companies under the name “Business Council”. The oil company BP and the airport operator Heathrow Airport have already joined the new lobby group. The companies are looking for a change and “now is the right time to speak out,” said BCC boss Shevaun Haviland.
More: Mass exodus from the British Industry Confederation