CBI suspends all key activity after membership exodus during day of chaos
The CBI has suspended all activity until June after major companies terminated their membership or suspended collaboration due to the scandal engulfing the business lobby group.
The rush for the exit door came after the Guardian newspaper reported that a second woman had made a rape allegation – against two male CBI co-workers – building on the series of historic serious misconduct claims to have engulfed the body in recent weeks.
Meta, John Lewis, NatWest, BT, BMW, ITV and Unilever were among the big names to take action.
Which businesses have quit or suspended membership of the CBI?
After a day of chaos, the CBI announced late on Friday that it would suspend all policy and membership activity until an extraordinary general meeting in June when they would put forward proposals to restructure the organisation.
“The CBI shares the shock and revulsion at the events that have taken place in our organisation, and at past failures that allowed these events to happen,” the group said in a statement.
“We are deeply sorry and express our profound regret to the women who have endured these horrific experiences,” they added.
Membership exodus
It came at the end of a bruising day which saw dozens of firms from across all sectors of business and industry pull their support from the group.
Banking giant NatWest Group said: “Following careful consideration, and having previously paused all activity, NatWest Group has today withdrawn its membership of the CBI with immediate effect.”
A spokesperson for Facebook owner Meta also confirmed that they had paused engagement with the CBI while the investigation is ongoing.
BT Group said: “In light of the appalling allegations made, BT Group has decided to suspend its membership of the CBI with immediate effect.”
Carmaker BMW joined the exodus late on Friday, saying they were “concerned by the allegations relating to the CBI. The Group has therefore decided to terminate its membership with immediate effect”.
They were joined by Rolls-Royce, who said: “In light of the recent allegations, which are deeply concerning, we are suspending all interaction with the CBI with immediate effect.”
A spokesperson for ITV told Sky News that the broadcaster “will pause engagement with the CBI with immediate effect and will not renew our contract with them”.
Unilever also confirmed that they were severing ties, saying: “Due to the very serious and ongoing allegations, we can confirm that we have suspended our membership of the CBI.”
The John Lewis Partnership had earlier cited “further very serious and ongoing allegations” as the reason for quitting the organisation.
It’s not exaggerating to call this an existential crisis for the CBI
If one were to compile a list of some of the most prestigious blue-chip UK employers, it would probably include NatWest, BP, Shell, Aviva, the John Lewis Partnership, Virgin Media O2, WPP, Phoenix Group, BT, PwC, EY, Schroders and AstraZeneca.
Were that list to be enhanced with prestigious foreign-owned businesses that are major employers in the UK, and which enjoy a meaningful UK presence, it would probably extend to take in names such as BMW, Mastercard, Ford, Fidelity, Jaguar Land Rover and JP Morgan.
That underlines the crisis now engulfing the CBI. All of those companies have either paused their engagement with the employers organisation or cancelled their membership altogether in the wake of the latest allegations consuming the CBI.
It was bad enough that the CBI felt obliged to dismiss its former director-general, Tony Danker, amid allegations of workplace misconduct.
What made it worse was a report in The Guardian, the newspaper that first published details of the allegations against Mr Danker, that a former CBI employee had filed a complaint that she was raped at a party hosted by the organisation back in 2019.
That has now been made worse still by a second woman coming forward to say she had been raped by colleagues while working for the CBI.
It is not now over-exaggerating to say that this has become an existential crisis for the CBI.
Insurers start the flight
Insurer Aviva was first to reveal its hand on Friday, just moments after Sky News reported that abrdn, the FTSE 100 fund manager, was also considering its position with the organisation.
Fellow insurers Phoenix Group and Zurich swelled the exodus alongside the industry body the ABI while Virgin Media O2 also confirmed it had terminated its membership.
Asda, accountancy giant PwC and National Grid later confirmed they had suspended all activity with the business lobby group while Lloyds Banking Group was also understood to have done the same.
An AstraZeneca spokesperson said: “Following these grave allegations, we have decided to pause our engagements with the CBI while these are investigated.”
“In light of the very serious allegations made, and the CBI‘s handling of the process and response, we believe the CBI is no longer able to fulfil its core function – to be a representative voice of business in the UK,” Aviva said.
“We have therefore regrettably terminated our membership with immediate effect.”
CBI president Brian McBride had previously admitted that a “handful” of its 190,000 members had departed since the crisis began.
Brian McBride was elected president of the CBI in June last year
They are known to have included, before Friday, the British Insurance Brokers’ Association.
Shell is understood to have suspended dealings with the CBI last week.
The potential departure of abrdn would be acutely embarrassing for Mr McBride personally as he currently serves as a non-executive director at the firm.
Sky’s City editor Mark Kleinman reported that the board had been debating whether to terminate its status as a CBI member once a CBI-commissioned review of sexual abuse allegations against staff members had been completed.
A source said that alternatively it could decide not to renew its membership when it expires at the end of this year.
A string of blue-chip companies, including Rolls-Royce and Marks & Spencer, have raised public concerns about the crisis.
Last week, the CBI sacked Tony Danker, its director general, after saying it had lost confidence in his ability to lead the organisation amid claims about his personal conduct.
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Tony Danker was sacked on 11 April
Mr Danker told the BBC this week he had been “thrown under the bus” and said the allegations against him did not merit his dismissal.
He also apologised for making a number of CBI employees “uncomfortable”.
Business leaders have lined up in recent weeks to denounce its handling of the crisis, saying it had been too slow to apologise and had erred by appointing an insider, Rain Newton-Smith, as Mr Danker’s successor.
Three employees have been suspended, while a police investigation is under way.
The CBI said this week that the second phase of an inquiry by the law firm Fox Williams would conclude imminently.
“The board will be communicating its response to this and other steps we are taking to bring about the wider change that is needed early next week,” the group said on Thursday.
Travellers have been warned to expect disruption to trains in Scotland today as the country continues to feel the effects of Storm Floris.
Services are likely to be affected as the storm – which brought winds of up to 124mph on Monday, bringing down trees and power lines, closing roads and cancelling flights – blows through.
The Scottish government held an emergency meeting last night to discuss the “significant disruption” caused and the efforts under way to recover, as rail operators look to clear routes covered by debris and utilities firms work to reconnect properties experiencing power outages.
Ross Moran, Network Rail Scotland’s route director, said teams had been “working tirelessly to keep services moving where possible and to clear fallen trees and debris from the tracks”.
By the evening, their focus had switched to “inspecting routes which have been closed by fallen trees, debris and other damage”, and work will continue into today.
“We’re grateful to passengers for their patience whilst we do this,” Mr Moran added.
(L-R) Frances Kusz, Jack Kusz, Paul Audoire and Robert Kusz waiting at Glasgow Central Station. Pic: PA
Most weather warnings have expired, but a yellow warning for wind is in place until 8am over the Shetland Islands and Orkney, and showers will remain throughout the rest of Scotland.
Rail, road, and ferry travel was disrupted by the storm on Monday, as 100 Edinburgh Fringe events were cancelled, according to organisers.
At one point, more than 30,000 people were without power.
A worker removes a fallen tree on the A82 road near Onich. Both pics: Reuters
At least 68 flights were cancelled, aviation analytics firm Cirium said, with Aberdeen and Belfast City the worst-affected airports.
Western coastal areas bore the brunt of the storm, but strong winds and heavy rain affected much of the rest of the country.
Police received “multiple reports” of camper vans blown over on the A87 between Broadford and Portree on Skye, while in Aberdeenshire the A96 was closed in both directions near Old Rayne because of fallen trees.
Fallen trees have also seen a number of other roads closed, including the A95 Rosarie road in both directions, while the A9 at Daviot was partially blocked by a fallen tree and the A1 Tyne Bridge was only open to cars and single-decker buses.
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Watch: Bumpy landing for plane in Storm Floris
Those driving in poor weather have been urged to avoid the worst-hit areas and slow down when on the roads while allowing time for delays.
Ferries have also seen widespread disruption, with ferry operator CalMac cancelling a number of sailings because of high winds.
Monday’s top wind speed was 124mph at Cairngorm, a mountain range in northern Scotland, according to Met Office data.
Sky News weather producer Christopher England said Tuesday would be a “much calmer”, though still windy – see your local forecast here.
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