Tag: Royal Mail

Royal mail’s 200,000 employees are expected to be given a 20 pct stake in the business in a move that will spark union fears that the organisation is being prepared for privatisation, The Times reported, citing union sources. The issue is likely to provoke a major clash between unions and the Government at this week’s Labour Party conference, the newspaper said. A government-commissioned review of Royal Mail, headed by Sir George Bain, is expected to recommend employee ownership when it reports next month, added The Times.

Royal Mail’s 200,000 employees are expected to be given a 20 per cent stake in the business in a move that will spark union fears that the organisation is being prepared for privatisation. The issue is likely to provoke a major clash between unions and the Government at this week’s Labour Party conference. A government-commissioned review of Royal Mail, headed by Sir George Bain, is expected to recommend employee ownership when it reports next month. Each employee stands to receive shares worth about Pounds 5,000 if the organisation is valued at Pounds 5 billion -a figure that Allan Leighton, Royal Mail’s chairman, has often quoted. Mr Leighton has also asked for at least 10 per cent of the organisation to be offered to outside investors because he believes that Royal Mail desperately needs external financing. However, if he wins this concession, it would cause a storm with the Communication Workers Union (CWU).
The CWU has also objected to employee share ownership because it fears that the move would create a perception of privatisation.

Liberal Democrat modernisers suffered an embarrassing setback in their bid to drag the party back on to the political centre ground when conference delegates yesterday refused to back a flagship proposal to privatise Royal Mail. Market-friendly Lib Dems, who make up a majority of the senior frontbench team, had made the sell-off plan the centrepiece of their efforts to bolster the party’s credibility by enhancing its economic liberalism and shaking up its approach to public service reform. Delegates shelved the policy pending further consultation rather than rejecting it outright. But the vote means the Lib Dems have missed an opportunity to take a lead on the future of Royal Mail and will have no formal policy if the government decides on a partial sell-off.