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 Fletcher declares war on wool board 

Fletcher declares war on wool board

06 Nov, 2008 03:26 PM
The board room battle at Australian Wool Innovation has been one of the company's hallmarks for years, but the sniping and fighting has become so much for director Roger Fletcher that he's declared war on his colleagues in a bid for radical change at this year's election.

Mr Fletcher – Australia's largest sheepmeat and wool processor – has taken the gloves off and broken the rules on boardroom solidarity to expose what he says is a culture of secrets, ingrained factionalism and spending beyond its means which is doing nothing for farmers in the face of the mulesing fiasco and a free-fall on the wool market.

Mr Fletcher is not up for re-election this year, but is touted as a likely contender for the chairman's job.

He says woolgrowers must vote for a new and independent start and should look to "practical people not professional board sitters" to help turn the ailing industry around.

He cites several areas where the board has "got it wrong" over the past six years, but says that without a radical overhaul nothing will change.

The heightened politicisation of this year's election and last week's emergency board meeting which resulted in the censure of fellow-director, Chick Olsson, has triggered this snap from Mr Fletcher.

Mr Olsson was censured for allegedly misleading the board in relation to a media article calling for current chairman, Brian van Rooyen, to step aside.

Mr Fletcher says since joining the board 12 months ago he has been "gobsmacked" by the way some directors of AWI behave, while other directors have been gagged and are often powerless to do anything about the problems they see with the mulesing deadline or AWI's spending sprees.

He said the millions spent on the court case against PETA (People for the Ethical Treatment of Animals), the "spin doctors" formerly employed to counter animal rights campaigns, the "mysterious" sheep and wool taskforce and mulesing clips were all examples of impractical board decisions rendering the board "dysfunctional".

"There is massive pressure on the industry and this is doing nothing to solve it," Mr Fletcher said.

Mr Fletcher says he is past caring about being sanctioned by the board because he would prefer now that farmers know what he is talking about.

"The Chinese are not opening the letters of credit, the wool market is taking a slide. The customers are just not buying.

"We need people with their feet on the ground that understand the industry, not lynch jobs and spending sprees."

Mr Fletcher believes he has managed to get a few changes in the short time he's been there, including cut backs on massive outside consultancy fees, which he said were only making "careers out of grower levies".

He said when he's raised questions about exorbitant executive salaries he's been told AWI "was in the big end of town" and those salaries were warranted.

He said AWI was not "living within its means" and should be operating under more realistic terms given the downturn in the wool industry and subsequently in levies.

In Mr Fletcher's opinion, the board is dysfunctional because it was operating as two groups - he lamented the board had never gone out to dinner or for a beer together.

"When I came onto the board, I found out there were two boards, there's an upper board and a lower board," he said.

"The upper board don't tell the lower board what's going on.

"Yet I've had world marketing experience, I export more meat into Europe than anyone else in the country, I've done negotiations on quotas and WTO stuff and I wasn't even worth being given a phone call for some advice to try and help them (with the mulesing crisis in Sweden in March).

Mr Fletcher said with $5.9m being spent on non-surgical mulesing clips, and 35,000 being used this year, AWI was clearly "not moving forward" in this area.

He said TriSulfen has virtually had no backing from AWI but "everyone's using it".

"You can't put a deadline on R&D. AWI should have invested more research time and dollars into ways of breeding the need for mulesing out of Merino flocks.

"That's one thing we're putting a lot of effort into on my properties and most farmers are doing that privately."

NOTE: Group sheep and wool writer MARIUS CUMING has interviewed all 10 candidates for the AWI board.

He asked all candidates the same questions. Their answers are published on FarmOnline in full, unedited.

You can read their replies under National News - or under the Related Articles list on this page.

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Date: Newest first | Oldest first
Fletcher is clearly demonstrating to the AWI shareholders and The Land readers his abilities to be a public company board member and potential chairman. Trust and loyalty as well as having boardroom skills is what the job entails at AWI of which he is demonstrating none by his agri-political stirring. Roger. Is it you or the rest of the board that is the problem and why they won’t drink with you or agree with your half baked ideas? You have only one option which is of your own making, immediate resignation from the AWI board and an apology to the company and its shareholders.
Posted by James Kennedy, 6/11/2008 9:34:26 AM
Yet another disgraceful act from an AWGA-aligned AWI board member. Mr Fletcher was one of the directors who censured Olsson...so which is it Roger? Talk about weak and unprincipled... because AWGA can't get their way in the board room, rather than do the honorable thing and resign they start a massive campaign of disinformation and divisiveness. They try to denigrate anyone with more board experience and professionalism than they have. These guys clearly don't care about the wool industry - this is now an ego fuelled fight by a group that won't even reveal its membership, or its links with animal rights groups in Australia.
Posted by Sir George, 6/11/2008 11:32:31 AM
Roger Fletcher is the most popular AWI director with his 160,464 votes at the last election. He is part of the future success of our industry. We should all listen very carefully to what he says.

Unfortunately for Jim Kennedy and WoolProducers, by voting against Fletcher last year and against Modiano this year, they are showing they just don't get it.

Posted by Martin Oppenheimer, 6/11/2008 12:16:05 PM
Give Roger the job. He couldn't possibly make a bigger mess of it than has happened recently.
Posted by Brindi, 6/11/2008 1:42:51 PM
Like many others who have been devoted to the industry all their working life, I believe we have a right to feel let down. There are clearly issues that need to be addressed in the wool industry and our future direction. Now.

We need a team which can meet the challenges. I believe we do need more openness and the ability to look at all areas of the supply and susequent managment that will allow us to meet the changes that are here now, perhaps build a system that allows growers to meet production costs.

Otherwise forget it.

Excessive executive salaries are better spent on productive tasks, rather than on such public in-fighting in such a poorly performing industry over the last 20yrs. Shame on you!

Posted by Peter, 6/11/2008 2:05:09 PM
Trust and loyalty have to be earned by the AWI board members. Maybe Roger is fully justified in his comments. This wool producer joins him in his lack of trust and loyalty.
Posted by bango05, 7/11/2008 5:23:04 AM
There certainly are problems at AWI but because of the Board rules we will never know what really goes on or who is to blame. Most of us who pay into AWI are certainly not silver spoonners and are doing it pretty tuff and don't want our levies thrown away willy nilly with no result. The mulesing deadline should never have been set until there was some genuine 100% effective replacement for surgical mulesing At present we have tri-sulfen and it aids the animal very well. A few years ago I approached AWI to be in on the trials for clips or some other processes that were in the pipeline, because I was interested in change, and was told that we were to isolated and paddocks too large to be successful. To this day from information gathered the clips have quite a few problems and therefore are not 100% effective which is not good enough in large scale properties. PETA will not approve of anything we do with animals so why bend over backwards to please them on mulesing. I have been mixed up in a few organizations myself to know that at the top a handful of headstrong people can make it very difficult for progress to take a proper course and people with a common sense approach seem to get stepped on.
Posted by Ray, 7/11/2008 6:40:50 AM
Martin Oppenheimer and his AWGA gang are the only ones that don't get it. Popularity should be one of the last considerations by shareholders when considering company board positions with Roger Fletcher, Chick Olsson and Wal Merriman clearly demonstrating what results when popularity determines the outcome and they are given the job. AWI shareholders have a clear choice between the AWGA controlled candidates that are all motivated by self interest and to be popular and the chairman's ticket of incumbent and creditable company directors to run AWI in a manner that benefits all shareholders.
Posted by James Kennedy, 7/11/2008 6:57:37 AM
Mr Fletcher's comments are a breath of fresh air in a moribund industry. Too many AWI board members and employees have been tainted by this clearly non performing organisation. If you have any doubt about how useless the AWI and its culture is compare the gains made by the meat, grain and cotton industry over the last 20 years. The wool industry needs a completely new broom and change in thinking. The present course is just another variations of the same failed approach. Better still give the AWI promotion money to New Zealand who really know how to make a little go a long way. The Fern label has gone from obscurity to being held in very high regard by customers and retailers alike.
Posted by woolly, 7/11/2008 7:37:16 AM
Martin Oppenheimer, You're the one who just doesn't get it! Roger Fletcher's key interest is in defending his fell-mongered fleeces from the wool levy and, then, he wants to see what he can do to replace live sheep exports with carcasses from Fletcher International freezers. Why would he apparently join a censure motion against Olsson and in almost the same breath berate the board as dysfunctional when six out of nine directors are in total accord. Roger ain't no messiah here to save wool growers!
Posted by woolman, 7/11/2008 8:50:04 AM
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Roger  Fletcher, Australia's largest sheepmeat and wool processor.
Roger Fletcher, Australia's largest sheepmeat and wool processor.
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