Row grows over Royal Mail plans

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There was angry condemnation of the government's plans at the rally
Postal workers have been protesting in Westminster as the row grows over plans to sell off 30% of Royal Mail.
Over 120 Labour MPs oppose it, fearing full privatisation and job losses, and argue Labour made an election pledge to keep the Royal Mail in public hands.
But Business Secretary Lord Mandelson said it was "absolutely clear" that the service would remain publicly owned.
He defended releasing a letter warning of Royal Mail's huge pension deficit, saying he had a "duty" to publish it.
Hundreds of postal workers and members of the Communication Workers' Union attended a rally at Methodist Central Hall in Westminster.
BBC political correspondent Ben Wright said there was angry criticism of government policy, some calls for the union to sever its links with the Labour Party and claims that workers were being "blackmailed" by linking the pension deficit issue to the part privatisation.
The government has proposed taking over responsibility for the pension scheme as part of the proposed sell-off package.
'Scare' claim
In a letter to Lord Mandelson, Jane Newell - the chair of trustees of Royal Mail's pension scheme - warned the deficit could rise well in excess of its current £5.9bn, should the sale not happen.
But the Communication Workers' Union said the publication of the letter was an effort to "scare" MPs into voting with the government.

Union boss on sell-off 'scare'

Its leader Billy Hayes said it was a "scandal" that the chairman of the pension trustees was "interfering" in politics.
He told Sky News: "The government is saying they want a foreign company to run the post office, which is ridiculous. We could be faced with a situation where the Royal Bank of Scotland is nationalised and the Royal Mail is privatised."
Lord Mandelson defended its publication, saying ministers had to "get a grip" on the pension situation at Royal Mail.
"People have to know the scale of the problem in order to understand the proposals and the solutions government is putting forward," he told Sky News.
Gordon Brown may face the largest backbench rebellion of his premiership on the bill, due to be introduced to Parliament on Thursday, and may have to rely on Conservative and Liberal Democrat votes to get it through.
Rebels warned
Labour backbencher John Grogan said three cabinet ministers had told him they opposed the plan and told the BBC:
"Is this the time for the Labour government, which is going through hard times at the moment, to completely split the Parliamentary party down the middle?
"Over 100 Labour MPs have signed a motion against these proposals - it's going to be Peter Mandelson against a big bulk of the Parliamentary Labour Party."
Lord Mandelson, who has come under fire for choosing to introduce the bill in the House of Lords, said he was sorry for the "political pain" that the proposals were causing in Labour ranks but vowed not to "walk away" from the proposals.
SNP postal affairs spokesman Mike Weir said he was on a "collision course" with his own party adding: "It would be disgraceful if he is plotting to by-pass the Commons in an attempt to avoid embarrassment."

Royal Mail chief executive talks about its losses

The government says the Royal Mail needs new investment in technology to survive.
Chief executive Adam Crozier told the Commons business and enterprise committee on Tuesday they were facing "rapidly declining" volumes of letters posted - with an 8% drop predicted next year.
When the pension deficit was revalued, it was expected to reach between £8bn and £9bn, he said.
He added: "The simple fact is the business doesn't generate enough cash to fund the investment required to modernise the business and ensure the future of the USO (universal service obligation)."
'Crazy'
Ministers say the plan is not a sell-off but a "partnership" which maintains Labour's manifesto commitment to keep the Royal Mail in public ownership.
HAVE YOUR SAY
Everyone knows Royal Mail has been haemorrhaging money for years
Paul, Manchester
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So far 145 MPs have signed a Commons motion opposing the move - 125 of them Labour.
Tory MP Daniel Kawczynski told the BBC he would vote against the plan, because he was concerned deliveries to rural areas, like his Shropshire constituency, would be under threat if Royal Mail was run by a private company.
But shadow business secretary Ken Clarke, a former postal minister who failed to persuade Margaret Thatcher to privatise the service when she was prime minister, said most Conservatives would vote with the government.
He urged Lord Mandelson not to "cave in" and said matters had got worse over the past decade and Royal Mail now faced a "serious financial crisis".
"We have the interests of the postal service and public in mind and we will vote in line with the policy of part privatisation," he said.

Ministers have given themselves a couple of months to try to win the argument with almost 140 rebel Labour MPs



Unions argue the Royal Mail made a healthy profit of £255m in the last nine months of 2008 and can thrive in its current form.
They are worried about possible job losses and the impact of the private sector involvement on the universal service.
Former cabinet minister Peter Hain told BBC Radio 4's Today programme he was worried the plan could "open the door to full-scale privatisation in the future".
Labour MP Geraldine Smith said that as the government had agreed to take on the pension deficit it was "crazy" to "keep the liability and give away the most profitable parts of the business to a foreign competitor".
But Postal Affairs Minister Pat McFadden told the BBC the Royal Mail could not afford to pay down the deficit and fund the modernisation needed - such as automating services.
"We will not privatise the company but what we want is to bring in the experience to drive forward that change precisely so we can continue the universal service for the future," he said.
Dutch postal operator TNT is the only firm, so far, to have publicly expressed interest in buying a chunk of Royal Mail.

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go to the BBC site and have a look at the billy hayes video on the link he says "we have already lost our final salary pension scheme which were not happy about"

ye well i thought we were still fighting for that you prick, but thanks for letting us know what was happening with it see HQ do tell you what is happening

[BELIAL]

I thought Billy said we were going to fight tooth and nail to restore it? Now we are just a bit miffed , Sell out bastard traitor , maybe a slip of the tongue

[dongash]

I have no faith whatsoever in either the management or our so called "union". the union have had our support for every strike they have asked for. how do they pay us back? they sell us down the river. the union people at a local level do the best they can, but what can they do when they are led by spineless leadership? they knew the pension thing was coming and the inevitable happened! too little to late my friends! the mail centres will go the same way, mark my words. you do not deserve the support you have had off the postal staff over the years.you should have pulled the plug on labour years ago, it's like turkeys voting for xmas! I can't believe that you actually trust the management at all as they have not got a very track record have they? Well where do we go now then? I for one believe the inevitable will happen regardless of how important you think you are. lets face it the two clowns "running royal mail " have run circles round you haven't they? to be honest i can't see things changing can you? well billy and dave get ready to receive your p45's as we won't need a union in the future will we? regards dongash opg macclesfield cheshire.

[norbert]

I thought Billy said we were going to fight tooth and nail to restore it? Now we are just a bit miffed , Sell out bastard traitor , maybe a slip of the tongue

he used to pull his punches in the Major Era over privatization - the answer was wait for Tony to get in - a born Labourite and Union Beaurocrat , a good tub thumper at best who relied on the big Liverpool branch support and not being Keggie who people were not sure of which side he was supposed to be on .

Everything has been much too late , privatization , pensions , the Fluffy site was bragging about RM running rings round him during Summer 2007

[stokes11eg]

I thought Billy said we were going to fight tooth and nail to restore it? Now we are just a bit miffed , Sell out bastard traitor , maybe a slip of the tongue

he used to pull his punches in the Major Era over privatization - the answer was wait for Tony to get in - a born Labourite and Union Beaurocrat , a good tub thumper at best who relied on the big Liverpool branch support and not being Keggie who people were not sure of which side he was supposed to be on .

Everything has been much too late , privatization , pensions , the Fluffy site was bragging about RM running rings round him during Summer 2007

Only reason billy boy is starting to fight back, is because he realises his chance of becoming a labour councillor
has no chance, and he now knows ,much to late,which side his bread and butter is.
I watched him twice on telly yesterday-what a poor excuse for a 'Leader'

[norbert]

I thought Billy said we were going to fight tooth and nail to restore it? Now we are just a bit miffed , Sell out bastard traitor , maybe a slip of the tongue

he used to pull his punches in the Major Era over privatization - the answer was wait for Tony to get in - a born Labourite and Union Beaurocrat , a good tub thumper at best who relied on the big Liverpool branch support and not being Keggie who people were not sure of which side he was supposed to be on .

Everything has been much too late , privatization , pensions , the Fluffy site was bragging about RM running rings round him during Summer 2007

Only reason billy boy is starting to fight back, is because he realises his chance of becoming a labour councillor
has no chance, and he now knows ,much to late,which side his bread and butter is.
I watched him twice on telly yesterday-what a poor excuse for a 'Leader'

promised a safe Labour Seat in Liverpool - allegedly - The Rt . Hon Billy Hayes MP , but that's gone by the board now

[brothermagrew]

I thought Billy said we were going to fight tooth and nail to restore it? Now we are just a bit miffed , Sell out bastard traitor , maybe a slip of the tongue

he used to pull his punches in the Major Era over privatization - the answer was wait for Tony to get in - a born Labourite and Union Beaurocrat , a good tub thumper at best who relied on the big Liverpool branch support and not being Keggie who people were not sure of which side he was supposed to be on .

Everything has been much too late , privatization , pensions , the Fluffy site was bragging about RM running rings round him during Summer 2007

Only reason billy boy is starting to fight back, is because he realises his chance of becoming a labour councillor
has no chance, and he now knows ,much to late,which side his bread and butter is.
I watched him twice on telly yesterday-what a poor excuse for a 'Leader'

promised a safe Labour Seat in Liverpool - allegedly - The Rt . Hon Billy Hayes MP , but that's gone by the board now

Does the MP part stand for muncher of pies?

[TrueBlueTerrier]

promised a safe Labour Seat in Liverpool - allegedly - The Rt . Hon Billy Hayes MP , but that's gone by the board now

Those pesky workers they represent standing up for their rights and beliefs. Whatever next Women voting

[BELIAL]

the Fluffy site was bragging about RM running rings round him during Summer 2007

That must have got them fit

[stokes11eg]

I thought Billy said we were going to fight tooth and nail to restore it? Now we are just a bit miffed , Sell out bastard traitor , maybe a slip of the tongue

he used to pull his punches in the Major Era over privatization - the answer was wait for Tony to get in - a born Labourite and Union Beaurocrat , a good tub thumper at best who relied on the big Liverpool branch support and not being Keggie who people were not sure of which side he was supposed to be on .

Everything has been much too late , privatization , pensions , the Fluffy site was bragging about RM running rings round him during Summer 2007

Only reason billy boy is starting to fight back, is because he realises his chance of becoming a labour councillor
has no chance, and he now knows ,much to late,which side his bread and butter is.
I watched him twice on telly yesterday-what a poor excuse for a 'Leader'

promised a safe Labour Seat in Liverpool - allegedly - The Rt . Hon Billy Hayes MP , but that's gone by the board now

Does the MP part stand for muncher of pies?

He even looks like one now!!!!