Royal Mail sell-off details due

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he full details of the government's controversial bill to part-privatise Royal Mail will be published later.

But in a letter to the Guardian, the leaders of eight unions condemned the plans as damaging and unpopular.

The legislation will propose selling a stake of about 30% in the Royal Mail, to help modernise the service, and offer support for its pension fund.

Business Secretary Lord Mandelson said he would listen to concerns about the plans but would not "duck" the issue.

'Door is open'

Postal unions are vociferously opposed to the plans while more than 130 Labour MPs have publicly called for a rethink.

In a letter to the Guardian, the leaders of Labour's eight largest affiliated unions attacked the plans as "electorally unpopular, politically unwise and damaging to the concept of universal service provision".

They also accuse the ministers of breaking an agreement between the government and the trade union movement in the summer of 2008 to keep the service in public ownership.

Lord Mandelson, writing in the Daily Mirror, admitted that he knew the issue was "politically different" but was determined to confront it head on.

"My door is open and I will listen to these concerns," he said.

"But we face a choice. We either let Royal Mail drift and do nothing. Or we take action to secure the universal postal service for the customer and secure the pensions of Royal Mail employees."

Ministers may make a statement in Parliament outlining government policy after the bill's publication.

Opponents say the plans break a Labour manifesto commitment to keep Royal Mail in public hands.

The government says the company will remain under public ownership while benefitting from much-needed investment and added expertise that a private sector partner would bring.

As part of its reform package, the government government also intends to take on responsibility for the pension scheme, whose deficit is believed to be about £8bn.

More than 130 Labour MPs - including a reported 11 parliamentary private secretaries - have signed a Commons motion rejecting the plan, saying it threatens Royal Mail's future.

Downing Street has denied reports the rebellion has spread to the cabinet, saying there was no differences of opinion in the Cabinet about the substance of the bill.

Introducing the bill on Wednesday, Lord Mandelson told peers the bill would "make provision for the restructuring of the Royal Mail Group and of the Royal Mail pension plan".

It would also "make new provision about the regulation of postal services", he said.

But while doing so, he was heckled by Lord Clarke, deputy general secretary of the postal workers' union in the 1980s.

'Scare tactics'

The bill's first reading was essentially a formality which allows it to be printed so peers and MPs can see the proposals in detail.

It will be debated in full at its second reading - expected on 10 March.

The Communication Workers' Union has accused the government of trying to "scare" MPs into voting the plan through by publishing a letter from Royal Mail pension fund trustees warning that it faces disaster if the sale does not go through.

Unions are also upset that the bill is being introduced in the Lords rather than the Commons, a move which commentators say will give the government more time to win round sceptics.

The bill's first reading was essentially a formality which allows it to be printed so peers and MPs can see the proposals in detail.

It will be debated in full at its second reading - expected on 10 March.