Author: Archive

The pounds 3bn government bailout of Royal Mail has been delayed until at least the autumn because ministers cannot decide whether to proceed with a sale of shares in the organisation to its 195,000 employees.

Allan Leighton, the chairman of Royal Mail, had hoped to gain approval before Parliament rises for the summer recess next week for a scheme to hand 20 per cent of the company to its workforce. This would result in an award of free shares worth GB pounds 5,000 for each employee.

Despite support in principle for the idea at ministerial level, the Government has put off a decision until towards the end of the year. Without approval for the employee share scheme, the other elements of the Royal Mail refinancing announced in May by the Trade and Industry Secretary Alistair Darling cannot proceed either.

The government has postponed a decision on whether Royal Mail should be able to give a stake of up to 20% in the firm to its employees, the BBC has learned.

It may be seen as partial victory for communication workers’ union, the CWU.

The union has been campaigning against what it sees as a step towards the privatisation of the postal service.