Co-op wins support for warehouse move

Thursday 20 November 2014

Co-op members have backed controversial plans by the Society's board to move its warehouse to Hampshire, with the loss of up to 58 jobs.

The Co-op says the move will save it £1m a year, but it faced stiff opposition from some members who were concerned about the job losses, and whether supermarket shelves would still be full, if the supply boat couldn't sail. However, after two packed meetings, one in Jersey, and one in Guernsey, members voted in favour of the board's proposal. The Jersey result still hasn't been released but in Guernsey it was 237 votes in favour of the board, to 131 against.

The board also escaped having to face a vote of no confidence, with members deciding against going down that road by 248 to 104. 

Speaking when the plans to move the warehouse were announced, Chief Executive Colin Macleod said:

"This has been an extremely difficult decision, especially when it potentially affects our colleagues but once Andover’s modern Co-operative facility opened last year, we were duty bound to review our supply chain. It became very clear that there would be significant opportunities to focus on better fresh food availability, increased product shelf-life and a larger range of goods for our members and customers.

"Whilst this decision has primarily been taken to focus on the customer experience and to realise some cost efficiencies, we also recognise our obligation to those colleagues who are potentially affected. We are pleased to say that there will be opportunities to re-train people within the Society and we plan to re-deploy wherever possible".

The Co-op later committed to keeping a large cargo plane on permanent stand-by, to make sure supplies could still be flown in, if the boats couldn't sale. 

But it is likely the Co-op's decision will result in other job losses. Food supplier, Easenmyne, has already said it would have a knock-on effect on its business, meaning the loss of a further 40-50 jobs.