Tag: Unipart

Royal Mail plans to model its controversial employee share scheme on one that has delivered thousands of pounds of profit to workers at Unipart.

The Unipart scheme has been running since John Neill, Unipart’s chief executive, led a buyout of the business from British Leyland in 1987. The scheme is credited with transforming the company’s relationship with its 10,000 workers.

The Government is keen on the scheme, which it says it does not regard as a first step to privatisation. But a change in legislation is required for it to go through and more than 200 Labour MPs have threatened to vote against it.

An employee share scheme is also fiercely opposed by the Union of Communication Workers – which has threatened to withhold its Pounds 200,000 contribution to the Labour Party if the Government gives the green light.

Royal Mail regards employee share ownership as part of a wider shake-up that will see the Government help it to deal with its pension deficit by freeing up cash for investment to help it compete with private firms.