“If you assume that there is no hope, you guarantee that there will be no hope. If you assume that there is an instinct for freedom, that there are opportunities to change things, then there is a possibility that you can contribute to making a better world.” – Noam Chomsky
The assumption that there is no alternative to self-interest as the organising force of capitalist society is a tyrannical fallacy, imposed on us by a small minority; those with money and power, who have got to the top, and find themselves able to make rules which serve them well, but society and the environment poorly.
Riverford’s ten-year journey to employee ownership was driven by the belief that there is a better way; that, given agency and opportunity, most of us, most of the time, do have an instinct for freedom and fairness, which is often missing or suppressed in conventional management structures. Co-owners contribute to decision-making through our Co-owner Council. Their broad perspective is essential, and always brings a well-measured, sophisticated generosity.
Last week, councillors Toby and Dave fed back the recommendations of our elected Remuneration Committee, which sets our pay. Striving for greater equality in pay is one of our founding principles, enshrined in three key commitments: that no one can ever earn more than nine times the lowest wage (for context, this pay gap is over 400 times for Tesco, and typically 25 times for a UK company of our size), that our annual profit share will be divided equally, and that we all have the same terms of employment.
In accordance with these principles, Dave pointed out that since 2021, pay has risen by 38% for our lowest earners, and only 15% for our highest earners. To my surprise, the committee members, who tend to be lower earners, questioned the fairness of this, given that most senior managers are now paid well below the market rate. Becks, an external director who sits on many other remuneration committees (all without staff representation), said that it was one of the most mature and balanced conversations she has been part of.
Defaulting to narrow self-interest is destroying our planet and society; we urgently need better governance. Is it that self-serving ambition gets you to the top? Or that humanity, hope, and the instinct for freedom are often sacrificed along the way? Employee ownership has taught me that the best decisions involve those who have hung onto those vital qualities, whether that be leaders, managers, or others.
Our News from the Farm posts come from Riverford. They are the digital versions of the printed letters which go out to customers, every week via Riverford’s veg boxes. Guy Singh-Watson’s weekly newsletters connect people to the farm with refreshingly honest accounts of the trials and tribulations of producing organic food, and the occasional rant about farming, ethical and business issues he feels strongly about.
