Vote on CBI's reforms nerve-wracking, says new boss

1 year ago 26
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Rain Newton-Smith, CBI director-general

By Michael Race

Business reporter, BBC News

The new boss of the CBI has said it is a "nerve-wracking time" ahead of the result of a vote on reforms following allegations of sexual misconduct.

The vote on a "programme of change" at the lobby group is likely to be key moment for its future.

It has been fighting for survival after claims of rape and sexual assault against staff led to an exodus of members, including John Lewis and BMW.

Rain Newton-Smith said she "absolutely" thought the CBI should survive.

Asked if the group would shut down in the event it lost the vote, the CBI director general told the BBC's Sunday with Laura Kuenssberg it was a "really nerve-wracking time".

But Ms Newton-Smith said she was "absolutely determined that we lead this programme of change" so that the CBI could be a "collective voice for business".

"It's been absolutely devastating to read about some of these instances and I think, I hope, we are emerging from what has been a really deep and painful crisis for us," she added.

The CBI - the Confederation of British Industry - is one of the UK's most prominent lobby groups. Its role is speak to the government on behalf of around 190,000 businesses, which employ millions of people.

But in April, allegations of harassment and sexual assault emerged which resulted in some big household names among its membership to leave.

The allegations include claims of harassment and sexual assault including two allegations of rape, one at a summer party held by the group in 2019, another at one of its overseas offices.

The City of London Police is currently investigating the rape allegations.

Some members, such as Tesco and Sainsbury's have suspended engagement with the group and the government has also paused its activities with the CBI, with Chancellor Jeremy Hunt stating there was "no point" working with the group when its own members had deserted it.

Following an investigation by law firm Fox Williams, the CBI announced a "programme of change" last week, which has been put to remaining members to vote on.

The reforms are designed to restore trust in the body and include a refresh of the CBI board and the creation of a new committee to focus on people and human resources matters. There will also be staff cuts.

The CBI has suspended its own day-to-day operations due to the allegations and will only resume work if members back its plans for change.

Asked if she was taking a pay cut in the wake of staff cuts at the CBI, Ms Newton-Smith said: "We are looking at all the options."

"My pay is already not as high as my predecessors," she added. "What is really important is that we protect as many jobs as we can through this. I don't want to lose any colleagues."

Former director-general of the CBI, Tony Danker, was dismissed after being the subject of separate complaints of workplace misconduct, unrelated to the sexual assault and rape claims, for which he has apologised.

The Sunday Times reported he was "preparing" to sue the group. Mr Danker previously told the BBC he was considering legal action, but did not want to sue.

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