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Migros managers obviously did not expect such critical delegates. Those responsible had already prepared the press release and sent it with the following title: “The management of the Migros Cooperative Union will be downsized.” The fix came shortly after. Because the delegates rejected the discount. The required two-thirds yes vote was not achieved.
This situation upsets the plans of Migros management. The establishment of the new supermarket AG will be accompanied by a board of directors that will be reduced from 23 to 14 people. With this unit, Migros management wants to make the main distributor more efficient and stop the loss of market share in its main business line that has been going on for years.
Why do 100 delegates of all cooperatives in Migros resist this important step towards the new structuring? According to the testimony of one of those present, this was about the person of Mario Irmiger, the boss of Migros.. The Head of Migros Cooperative Union (MGB) General Directorate, who took office in May, will take part in the MGB management as before. In addition, he will now be given the position of Deputy Chairman of the Board of Supermarket AG.
Zurich Cooperative delegates resisted this. They cited standards of governance and demanded that Irminger resign from the MGB board. It is hardly a coincidence that the Zurich cooperative rebelled. It is seen as the loser of the revamp and has no representation in the central supermarket unit.
Now Irminger is threatened with loss of power. He already has less influence compared to his predecessor Fabrice Zumbrunnen. Marketing, including purchasing, and thus approximately 700 employees will be transferred from MGB to Supermarket AG. Peter Diethelm leads this unit. This means he has a say in the actual work.
In November, the house of delegates will vote again on downsizing the MGB administration. This time, the company headquarters is likely to make a new offer. Will Irminger give up his seat in the MGB board? Migros media office writes: “The agenda item of downsizing management is currently being evaluated.”
A spokesman confirmed that the issue of adequate representation of language regions was also discussed, as was the question of whether the Head of Headquarters should be involved in management. A quota for French-speaking Switzerland should be feasible. But removing the head of the MGB General Directorate from the management would be a paradigm shift.
On November 11, delegates will also vote on the establishment of Supermarket AG. Insiders are waiting for a yes. There was no vote against the structure at the last meeting, quite the contrary. Ten cooperative councils will then decide on Supermarket AG. It is unlikely that there will be any opposition from there either. Management will apparently accept nothing but a nod. Migros spokesman said, “If everyone does not agree, dialogue will be sought with the relevant institutions.”
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
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