Good Articles to Share

CBI shunned by big business ahead of crucial vote

Tan KW
Publish date: Tue, 06 Jun 2023, 10:17 AM
Tan KW
0 361,606

NEW YORK: Big businesses are shunning a crucial meeting to decide the future of the Confederation of British Industry (CBI), the lobby group facing potential collapse amid a sexual assault scandal.

Companies such as BT Group Plc, PwC and Flutter Entertainment Plc - the FTSE 100 owner of PaddyPowerBetfair - will not take part in today’s vote, according to people familiar with the matter.

Dozens of the UK’s largest businesses suspended engagement with the group in the wake of a series of allegations from CBI staff, including two who said they were raped by colleagues. The CBI has said companies that suspended their memberships could take part in the vote, yet many are choosing to stay away.

Companies that quit the group entirely, including Natwest Group Plc and John Lewis Partnership Plc, were not invited to take part.

The CBI, under newly-appointed director-general Rain Newton-Smith, will announce the outcome today, after outlining a reform programme that it hopes can win back the support of business.

The vote needs more than 50% to pass, with members receiving one vote each. If the majority vote “no” the CBI will be wound down.

The organisation, which lobbies government on behalf of business and claims to represent 190,000 firms, has told staff to expect job cuts as it has been forced to take “difficult decisions” after the wave of cancellations, said a CBI spokesperson.

The majority of its £25mil (US$31mil or RM142mil) annual income comes from membership fees. The CBI employs about 300 people.

German industrial giant Siemens AG is coordinating a letter among CBI members urging companies to back its survival.

The letter, first reported by Sky News, said it was “vital that there is a credible voice representing all sectors and sizes of UK business.”

Companies ranging from startups to big corporate names have been asked to support it and Microsoft Corp is a signatory. The letter said it was “essential” that a refocused and effective CBI reestablished its ties with the UK government.

 - Bloomberg

Be the first to like this. Showing 0 of 0 comments

Post a Comment