Tag: Royal Mail

Royal Mail is to press ahead with a scheme to give “phantom shares” worth up to GBP5,000 to each of its employees after the Government formally vetoed a plan to hand 20 per cent of the organisation to its employees.

The decision, which was announced to a committee of MPs by the Trade and Industry Secretary, Alistair Darling, is a blow to the Royal Mail chairman, Allan Leighton, who had personally promoted the scheme to give equity to its 190,000 employees.

It is unclear what the initial value of the shares will be and it is not thought that Royal Mail will pay a dividend on them. Crucially, they will not carry any voting rights, nor will it be possible to sell them to anyone outside Royal Mail.

Unions welcomed the move as “great news” for postal workers, saying Mr Leighton’s original plan would have been tantamount to back-door privatisation of Royal Mail. “The Government is keeping its manifesto commitment on public ownership of Royal Mail,” Billy Hayes, the general secretary of the Communication Workers Union, said.

However, the Liberal Democrats attacked it as a “cowardly move” which could seriously destabilise the company.

Approval for the phantom share scheme will pave the way for the Government to go ahead with a GBP2bn financial rescue of Royal Mail, which is designed to provide money for investment, fund post office closures and ease the GBP5.6bn deficit in the organisation’s pension fund.

Strike action by UK postal workers has been called off for the second week in a row.

Royal Mail delivery staff at 11 offices were set to walk out for 48 hours tomorrow and Thursday in a dispute over the firm using part-time workers for full-time positions.

However, the Communication Workers Union (CWU) has cancelled the action after a resolution was reached following national talks last week.

It comes after another 48-hour strike was called off on January 19 and 20.

The row has raged for more than a month and hit pre-Christmas deliveries when more than 700 staff from 11 offices walked out on December 9, 16 and 18.

They included employees from offices in Biddulph, Burslem, Cheadle, Kidsgrove, Leek, Longton, Stoke, Stafford, Stockton Brook, Uttoxeter and Werrington.

Last week’s two-day strike was averted at the 11th hour and the dispute was expected to be brought to an end at final talks yesterday.

However, progress was held up when the meeting had to be postponed due to illness.

Royal Mail confirmed an agreement had been struck with the CWU, but declined to reveal any details.

Distinct products and unique services could safeguard the future of the threatened post office network.

That was the view of about 20 of Moray’s sub-postmasters and postmistresses who met last night to discuss the latest challenges facing their businesses.

It is not known how many in Scotland will be affected, but estimates range from 300 to 600.

Trade and Industry Secretary Alistair Darling said in December the cuts were needed because of losses of GBP4million a week.

Last night, those in Moray said some of the area’s post offices may no longer be viable, and that will be due in part to Government policy.

A sub-postmaster from Craigellachie said constant decisions to share once-unique post office services with other outlets was crippling the service.

Announcing the proposal, Mr Darling promised a GBP1.7billion package for the period up to 2011, including compensation, thought to be about GBP70,000 each, for sub-post office proprietors ordered to close.

There will also be an on-going subsidy of GBP150million a year to maintain a network of the remaining 12,000 main and sub-post offices.

But some at the meeting last night said they did not want a subsidy – they wanted to be part of a vibrant business that sustained itself.

They also expressed their desire to see the GBP1.7billion package spent wisely.

Former Fochabers sub-postmaster Paul McBain said: “They need to spend that money looking for business that is going to keep the post office vibrant.”