MPs call UK Royal Mail’s employee share plans incoherent
ROYAL MAIL’S plans to give its employees shares hit a political problem yesterday when an all-party group of MPs said that they lacked coherence and that there were less controversial ways of motivating staff.
The Trade and Industry Select Committee said that the explanations for the plan, a cornerstone of chairman Allan Leighton’s aspirations for Royal Mail, “are far from complete and no coherent process for how these shares would be transferred or traded has been given. If Royal Mail’s management still wish to pursue commercial ways of motivating their employees, we believe there are less controversial ways to do this, such as the current profit-sharing scheme.”
An early day motion opposing the move, which is seen as a precursor to privatisation, has been signed by 193 Labour MPs – nearly all those entitled to sign, as ministers and their aides cannot sign such motions.
The committee also criticised Postcomm, the industry regulator, for pressing ahead with opening the market to full competition on January 1 when Royal Mail was uncertain about its future shape.
It also said that the Government and Royal Mail itself needed to find more money to address the Pounds 4.5 billion pension deficit. Postcomm has offered an increase in stamp prices, but has made clear that the Government should shoulder some of the responsibility.
Peter Luff, the chairman of the committee, said: “We do not think that the customer alone should foot the pension deficit and new investment bill. These should also be funded by the other main stakeholders, the shareholder, the Government and Royal Mail itself.”
