The Confederation of British Industry (CBI) hopes to revive its construction council for the final quarter of the year, despite seeing an exodus of contractors, Construction news can reveal
The organisation’s members approved the internal reform plans in a critical vote at its extraordinary general meeting (EGM) this week (June 6), after the body suspended the work of its committee following the accusations of inappropriate sexual conduct against senior officials of the organization.
Following the allegations and the sacking of its boss Tony Danker over separate allegations of conduct, the 60-year-old trade group saw an exodus of its members and the government broke off its dialogue with the body.
Among the firms that have left were former prominent members of the CBI construction board including Balfour Beatty, Skanska UK, Wates and Barratt Homes.
Former Skanska UK chief executive Gregor Craig was chairman of the construction board when the company left the organization in April. No successor has been named for the post of CBI chairman.
A CBI spokesman said all policy work had stopped ahead of this week’s vote and it had “a fourth quarter target to get our policy committee work back on track”.
Wates, then chaired by Craig’s predecessor in the role Sir James Wates, also suspended its membership of the CBI in April, as did the UK’s biggest contractor Balfour Beatty.
Builder Barratt, which announced last month that its chairman John Allen was to resign amid allegations of misconduct relating to his time as former CBI chairman, has also resigned from the body, a spokesman said . Allen denied the “anonymous and unfounded” allegations against him, but Barratt wanted to prevent them from becoming “disruptive” to the company, so his board removed him early.
Consultant Atkins, also a former building board member, “paused” his membership in March after the first allegations emerged, and is waiting to see if he delivers on his package of reforms before deciding whether to return to unite
A company spokesman said: “After reading and discussing the prospectus, we are satisfied that the CBI has set out and begun to implement a credible change program to reform its governance, culture and purpose, and we will continue to monitor its progress towards to these objectives.
“We now look forward to seeing the CBI re-establish links with the UK government so that it can better represent British business during this time of economic uncertainty and in an election year.”
Build UK, which remained a member of the CBI, welcomed the outcome of the EGM, which effectively meant the body would continue to exist.
In a joint statement issued with trade bodies representing various sectors, he said: “Trade associations across the economy benefit from a global business organization that represents our collective views and collaborates widely with political agents and civil servants, so we welcome members who vote in favor of the CBI Change Programme.
“Following serious allegations about its culture and the behavior of some employees, we also welcome the CBI’s recognition that it needs to change. We believe the prospectus presented at its AGM offers a credible way forward, which we stand ready to support as we look ahead to stakeholders, including the reactivation of government.”
He added: “The coming weeks and months must see the CBI put words into action and deliver the far-reaching changes it has promised.”
The CBI, which says it represents 190,000 businesses, received 371 votes on the plans, with 93 per cent of voters backing them at the AGM.
Its CEO, Rain Newton-Smith, said in a statement: “After an incredibly tough period, I am deeply grateful for the faith our members have shown in us. We have made real progress in implementing the change program top down promised by the council and although there is still work to be done, [the] result represents an important milestone in this journey.
“Even an organization as established as the CBI is only as strong as its members. This support is something we have never taken for granted. We will work tirelessly to repay the faith shown in us and are committed to living the values and changes we have proposed”.
