CO-OP workers welcomed a blueprint yesterday for plans to save the troubled Co-operative Group at the weekend.

The group is suffering financial problems which have seen its banking arm fall prey to private institutional investors after two disastrous efforts to expand, leaving the bank facing a £1.5 billion deficit.

Senior management of the bank and the Co-op Group board of directors have come under fierce criticism over the decision, with Co-op members fearing it will jeopardise the bank’s ethical policies.

A survival plan was put forward by the board at the group’s annual meeting in Manchester on Saturday.

The proposal agreed to recruit a board of directors elected by members and individually and collectively qualified to lead an organisation of the size and complexity of the Co-operative Group. 

Establishment of a structure giving the Co-operative Group’s members power to hold the board to account for the performance of the business and adherence to co-operative values and principles was also agreed.

And a pledge was made to introduce a “one member-one vote” system with appropriate representation for independent Co-operative societies.

Co-op workers’ union Usdaw welcomed the proposal.

Usdaw national officer John Gorle said: “Usdaw supported the board’s resolution as the best opportunity to take the business forward while retaining the mutual status of the Co-op group.

“We now have the foundations in place to put together a new governance structure that will strengthen the organisation and help safeguard our members’ jobs.”