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John Lewis chair Dame Sharon White has been left bruised however will not be preventing an instantaneous battle for her future following a vote of confidence amongst workers.
She got here beneath strain after the employee-owned enterprise posted annual losses price tons of of hundreds of thousands and potential options to the corporate’s monetary difficulties proved controversial.
The 61 workers, generally known as companions, who kind the retailer’s partnership council have a say in how the enterprise is run.
Immediately they held two votes – one on whether or not they have faith within the chair’s selections over the previous yr, and the opposite on whether or not or not they’ve confidence in her management transferring ahead.
Each had been non-binding.
She secured a majority within the second vote, which seems to be forward to the longer term, however misplaced the primary on her latest file.
Whereas the outcomes aren’t enforceable, the partnership’s structure does say the council has separate powers to dismiss the chair “in extremis”.
The voting occurred on the ultimate day of conferences on the John Lewis-owned Odney Membership retreat close to Maidenhead in Berkshire.
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Dame Sharon, a former prime civil servant, has made headlines with proposals thought of beneath her management to enhance the fortunes of John Lewis since taking up in 2020.
The corporate has thought of promoting a part of the enterprise, which might imply shedding its well-known 100% employee-owned standing, in an effort to raise up to £2bn of investment, in accordance with reviews.
However she dominated that choice out throughout her remarks to the partnership council.
“The John Lewis Partnership will at all times be an employee-owned enterprise,” she mentioned. “No ifs or buts.”
She added any exterior funding the partnership examined needed to be in step with the principles of its structure which assure worker possession, pointing to issues like joint ventures as a sexy route.
A attainable transfer into the “build to rent” property enterprise has additionally begun in a bid to diversify operations and income streams.
The John Lewis Partnership consists of Waitrose supermarkets and John Lewis shops.
It reported an annual loss of £234m in March and warned an unspecified variety of job cuts had been on the playing cards.
For under the second time since 1953, its workers members – generally known as companions – didn’t obtain an annual bonus this yr as a result of agency’s monetary efficiency.
Chris Earnshaw, the council’s president, mentioned of the voting: “The council, chairman and board will proceed to work collectively to make sure the long-term success of the partnership and our employee-owned mannequin.”
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