Tag: Royal Mail

Royal Mail is set to announce more job losses, this time at its cash-handling division which is the subject of a new review by the postal operator, The Times has learnt. The operation, which employs 2,000 people, has shrunk over the past couple of years largely because of the Government’s decision to pay most benefits direct into claimants’ bank accounts. The closure of nearly 3,000 post offices in recent years has also hit the cash-handling business. Although other functions such bureaux de change have grown, Royal Mail last week told unions that it needs to consider the future of cashhandling. However, it is believed that the organisation is committed to keeping cash-handling for internal purposes -such as the movement of money and stamps around branches -although its work for external customers could be under threat. No deadline has yet been set for a conclusion of the review. However, Royal Mail is familiar with the problems facing the business. Two years ago it attempted to outsource the division but met with stiff opposition from the Communication Workers Union.

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.