Chris Blackhurst is a former editor of The Independent, based in London
July 04, 2023
We've just had Employee Ownership Day in the UK. I know, me neither.
Businesses belonging to their workers is, though, a hot topic again. At the last count there were 1,300 employee-owned businesses in the UK, from Arup, the design and engineering firm, to Zetter, the recruitment agency.
Increasingly, staff having a stake in the firm is seen as appealing. Employee-ownership has more than doubled in the past three years. The top 50 such businesses produced revenue of £21.7 billion last year; at nine in 10 employee-owned businesses the staff have a say in decisions on the working conditions; 85 per cent have some or a lot of say in new working methods.
For that information I’m grateful to Dame Sharon White, chairwoman of the John Lewis Partnership, best-known of the employee-owned organisations, operator of the John Lewis department stores and Waitrose supermarket chain, famed for middle-class staples quinoa and rocket salads. White, a former senior civil servant and therefore not a time-served retailer – something held against her by her critics – has turned into something of an evangelist for her sector.
She marked its national celebration day (seriously, it exists) by highlighting the surge in industrial strife in the past year and the damage caused to the economy through strikes and go-slows, and asking: “Is there an alternative to industrial action? If workers felt they had more of a stake – or greater sense of ownership – in the business or the public service they were providing, there could be fewer disputes and more limited industrial action.”
In a country that lost 3.7 million working days to strikes last year, not only in the public services, in schools, railways, hospitals, but also in private enterprises, such as Amazon and Heathrow, anything that can bring that total down and instil harmony and keep things running, is welcome. Doubtless, they would work harder, too.
This week marks the 75th birthday of the NHS, and it was not that long ago, during the David Cameron-Nick Clegg coalition era, that government thoughts turned to restructuring the health service along the lines of the mutual model. Those arguments have resurfaced, as in the intervening period, the NHS’s problems have worsened and we are facing a septuagenarian structure that is no longer fit for purpose.
John Lewis employees have had their bonuses slashed as the company struggles to turn a profit. Getty Images
Back then, the example that was upheld repeatedly by ministers, policy-formers and the media was John Lewis. It was before White’s time, but her organisation was seen as promising nirvana, producing outstanding performance while properly rewarding fulfilled workers or ‘partners’. Each year they would receive an annual bonus, the announcement of which became a media event.
The two went together: the production of great results by staff who had a stake in the business. There was a third benefit: customers were also delighted, marvelling at the care and level of service afforded by John Lewis employees who seemed to go further than managers and sales assistants elsewhere.
Since then, it’s not just the NHS that has experienced decline. John Lewis made a loss of £243 million in 2022 and its staff did not receive a bonus.
White, who took charge in 2020, has been taking drastic action, closing 16 John Lewis stores, trimming 13 Waitrose branches and cutting head office costs. Among the casualties is the “Never Knowingly Undersold” price promise, deemed out-of-date in today’s online, shop-around environment. Another is the Partnership’s very own golf course (who knew) at Maidenhead, in Berkshire.
John Lewis fell victim to the switch to online and was also hit by rising costs at its extra-large high street sites. Waitrose, meanwhile, was caught, stuck between low prices at the bottom of the market, sparked by the budget invaders Aldi and Lidl and a competing Tesco, Morrison’s and Sainsbury, and at the top end, a revitalised Marks & Spencer.
White found that democracy has its downside, as her fellow partners made their feelings known about her leadership. In May this year, almost a quarter of staff representatives voted against her in a confidence ballot. Of the 55 members of the staff council who voted, 24 per cent were against White continuing to head the business, while 92 per cent said they did not support her performance over the past year.
John Lewis's Dame Sharon White at an investiture ceremony at Windsor Castle. PA
What’s telling, though, is to revisit those glory years when politicians, commentators, could not get enough of John Lewis. From 2000 to 2015, the business expanded rapidly. John Lewis grew its stores from 25 to 43, Waitrose went from 126 to 336 branches, the number of employees or partners climbed from 40,000 to 90,000. Sales more than doubled, from £4bn to £10.8bn, but profits stayed the same as margins were hit by Aldi and Lidl, and the growth in online shopping.
Profit per partner fell substantially, but significantly, over that same period, the Partnership bonus averaged 14 per cent. At the same time, to pay for the expansion, the organisation borrowed heavily, with net debt rising from £1bn to £3.7bn.
John Lewis, then, was effectively running on, or close to, empty but the partners were still being paid a hefty bonus. In effect, the organisation was borrowing to meet those staff payouts.
John Lewis, then, was effectively running on, or close to, empty but the partners were still being paid a hefty bonus. In effect, the organisation was borrowing to meet those staff pay-outs
They were content, and because the workers were cheery, there was not a pipsqueak of complaint anywhere. The John Lewis Partnership was widely lauded for its brilliance.
White has injected a dose of realism. On her watch, bonuses will only be paid where they’re affordable. She’s taken out £300 million in costs with another £600 million still to go. Borrowings are down. Sustained profitability, White insists, is returning.
But clearly, not all her colleagues are enthused, hence the backlash. Questions remain too about the level of funding needed to execute her plan to refurbish the stores and boost IT – there has been talk of transforming some of the department stores, changing them to part-retail, part-apartments.
White is reluctant to borrow and she can’t pursue the other traditional route of corporate fund-raising, of going to external investors, since she does not have any. White has indicated she would countenance altering the business model, to seek funding from outside investors. She could reduce employee ownership from 100 per cent to 75 per cent, without destroying the overall premise. Employees would keep control, but with 25 per cent held externally.
Clearly, it’s now apparent, John Lewis was not as marvellous as all that. Nevertheless, as models go, employee ownership is not bad either. Anything, to reduce our twin diseases of strikes and low productivity.
Key facilities
Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
Premier League-standard football pitch
400m Olympic running track
NBA-spec basketball court with auditorium
600-seat auditorium
Spaces for historical and cultural exploration
An elevated football field that doubles as a helipad
Specialist robotics and science laboratories
AR and VR-enabled learning centres
Disruption Lab and Research Centre for developing entrepreneurial skills
Goalkeepers: Dean Henderson (Man Utd), Sam Johnstone (West Brom), Jordan Pickford (Everton)
Defenders: John Stones (Man City), Luke Shaw (Man Utd), Harry Maguire (Man Utd), Trent Alexander-Arnold (Liverpool), Kyle Walker (Man City), Tyrone Mings (Aston Villa), Reece James (Chelsea), Conor Coady (Wolves), Ben Chilwell (Chelsea), Kieran Trippier (Atletico Madrid)
Midfielders: Mason Mount (Chelsea), Declan Rice (West Ham), Jordan Henderson (Liverpool), Jude Bellingham (Borussia Dortmund), Kalvin Phillips (Leeds)
Forwards: Harry Kane (Tottenham), Marcus Rashford (Man Utd), Raheem Sterling (Man City), Dominic Calvert-Lewin (Everton), Phil Foden (Man City), Jack Grealish (Aston Villa), Jadon Sancho (Borussia Dortmund), Bukayo Saka (Arsenal)
'Tell the Machine Goodnight' by Katie Williams
Penguin Randomhouse
Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
The BIO:
He became the first Emirati to climb Mount Everest in 2011, from the south section in Nepal
He ascended Mount Everest the next year from the more treacherous north Tibetan side
By 2015, he had completed the Explorers Grand Slam
Last year, he conquered K2, the world’s second-highest mountain located on the Pakistan-Chinese border
He carries dried camel meat, dried dates and a wheat mixture for the final summit push
His new goal is to climb 14 peaks that are more than 8,000 metres above sea level
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
Clinical psychologist, Dr Saliha Afridi at The Lighthouse Arabia suggests three easy things you can do every day to cut back on the time you spend online.
1. Put the social media app in a folder on the second or third screen of your phone so it has to remain a conscious decision to open, rather than something your fingers gravitate towards without consideration.
2. Schedule a time to use social media instead of consistently throughout the day. I recommend setting aside certain times of the day or week when you upload pictures or share information.
3. Take a mental snapshot rather than a photo on your phone. Instead of sharing it with your social world, try to absorb the moment, connect with your feeling, experience the moment with all five of your senses. You will have a memory of that moment more vividly and for far longer than if you take a picture of it.
