Union clashes with architect of Royal Mail sell-off plan

[TrueBlueTerrier]

http://www.guardian.co.uk/politics/2009 ... ail-unions" onclick="window.open(this.href);return false;



The author of the government's controversial plan to part-privatise Royal Mail, which is being unveiled in parliament today, has hit out at the postal union fighting to keep the group in public hands.

Richard Hooper challenged the general secretary of the CWU, Billy Hayes, to come up with a better plan to rescue the ailing postal group. He also asked them how Royal Mail could be modernised under state ownership, as the CWU claims, when the group has failed to do so to date.

Speaking to the Guardian, Hooper said: "You should ask Billy Hayes and co, who accept the analysis that Royal Mail needs to modernise, what would they do, what is their plan to modernise? And the second question, if it [modernisation] can be done under 100% ownership, why has it not happened?"

The CWU blames Royal Mail's failure to modernise and invest in equipment such as automated sorting machines mainly on past Conservative governments. Under the Conservatives, the Royal Mail took a pensions holiday for longer than a decade, allowing the deficit to reach an estimated £9bn today. The CWU says the government has a moral duty to plug Royal Mail's pension deficit with no strings attached.

But the government, keen to sell off Royal Mail for years, is playing hard ball: it says it will only bail out Royal Mail's pension fund - and its 450,000 members - if part-privatisation goes ahead. Opponents, such as the CWU and some 139 mostly Labour MPs, say this is blackmail.

The row has become increasingly bitter. The only issue the two sides can agree on is that Royal Mail is in dire straits. Its core business - delivering letters - will soon be loss-making. Royal Mail's pension deficit is crippling and payments to plug the shortfall will wipe out profits.

Hooper told the Guardian he would not play the "blame game". But sitting on the fence to decide its fate is impossible: today politicians who remain undecided will have to choose sides.

[Broxi51]

I would prefer to ask Mr Hooper why we need to be part privatised. Why cant we raise the funds publicly and keep RM wholly public? Is it because your friend Mandy asked you to change the part about funding in general to it must be funded by part privatisation?

[Yahoorsur]

'Speaking to the Guardian, Hooper said: "You should ask Billy Hayes and co, who accept the analysis that Royal Mail needs to modernise, what would they do, what is their plan to modernise? And the second question, if it [modernisation] can be done under 100% ownership, why has it not happened?"'


Too easy Richard,they want to sell Royal mail off to the spivs and speculators like you and your friends,so you can make loads of money,cutting the service to the bone.....Next question please.

[ar26]

nothing less than corruption. If TNT & the like didn't have cheap access to our delivery network then we wouldn't need any extra funding, yes modernisation would take longer but we would get there. How many walk sort machines, van or biuldings do you think Croziers salary would buy. Start the savings at the top thats where the idiots and grossly overpaid waste of spaces are. What idiot came up with lets make 10% savings across the board and never followed it up with how. I'll gladly take £3 million a year to come up with " let's make savings of 10% , oh by the way the guys & girls much lower than my payscale can work out the detail"
We've been stitched up well and truely.
If we must have competition thats fine but hows it competition the way it is now, all they are doing is making the rich richer and sod the people on the street, but then again that's the game isn't it

[resperin]

you couldnt of said it better ar26 !

[fmrPOSTIE]

Cant the govt use bonds to raise capital for Royal Mail? Ken Livingstone wanted this when he fought tooth and nail to keep LU wholly public. Oh how right he was on that point, LU infrastructure companies have gone bust and are being propped up with massive amounts of public money.

If RM can spend the rest of the £600m, raise DSA prices to an acceptable level without being shafted, along with amalgamations of MCs, this I would have thought, could put the company back on a profitable footing.

TNT or CVC will be buying 30% of the company to sit on the board controlling 100% of RM. I wont vote labour again if this goes through, believe me!