Showdown for CI Co-op

Tuesday 18 November 2014

Co-op directors face their shareholders tonight at a crunch meeting to decide whether to close their local warehouse, at a cost of up to 58 jobs.

The decision, which the Co-op say will save them more than a million pounds a year, will affect staff at their Jersey food warehouse. Soon after it was announced, another food supply company, Easenmyne, said the move would also have a knock-on effect on their business, meaning the loss of a further between 40 and 50 jobs.

However, a group of islanders has now banded together to oppose the closure, and has collected the necessary 50 shareholder signatures to force a special meeting tonight with the directors to have their say.

If it still goes ahead, the Co-op has said the move could be completed by next summer, and there will be no disruption to the supply of goods in its stores. The new Co-op warehouse will be based at Andover in Hampshire. 

Speaking at the time of the announcement, Co-op 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," said Mr Macleod.

However, the shareholders campaign has now been backed by the island's only political party, Reform Jersey. Its Chairman Sam Mezec said:

“It is really positive to see this grassroots action to protect local jobs and food security for islanders. Reform Jersey shares the concerns that have been raised by Mr Cronin and Mr Johnson about potential job losses and the impact losing a locally based warehouse will have during bad weather conditions when it is difficult to import produce into the island.”

“In these tough economic times we should be doing everything we can to keep people in work. The Co-op is meant to be a mutual society that is not just about maximising profits but is concerned about the public good. Every vote counts and the fate of these jobs and warehouses lies with the Co-op’s ordinary membership.”

The meeting takes place tonight at 7:30pm at the Radisson Hotel.