Royal Mail to be privatised or sold, government says

[TrueBlueTerrier]

http://www.bbc.co.uk/news/business-11258649" onclick="window.open(this.href);return false;

The government is to go ahead with the privatisation or sale of Royal Mail.

Business Secretary Vince Cable made the commitment after receiving updated recommendations from the businessman Richard Hooper.

His latest report says the universal postal service can only be maintained by an injection of private sector money and expertise.

The CWU trade union said the plan would devastate the postal service and lead to higher postal charges.

'Failed politics'

Mr Cable said: "Royal Mail is facing a combination of potentially lethal challenges - falling mail volumes, low investment, not enough efficiency and a dire pension position.

"We will come forward with new legislation in the autumn. It will draw heavily on Hooper's analysis and recommendations and the government's wider objectives, including the need for employees to have a real stake in the future of the business," he added.

Royal Mail welcomed the report.


“Start Quote

For Hooper, privatisation is the logical answer because the letters market is set to shrink for years to come, which makes it increasingly important that Royal Mail becomes more productive and efficient”

End Quote

"Royal Mail needs a way of getting access to capital, a resolution of the legacy pension deficit and a strikingly different regulatory approach which allows us to compete fairly in an increasingly tough and shrinking market," said a spokesman.

But the CWU's general secretary, Billy Hayes, said privatisation would lead to higher prices for customers and job losses for staff.

"It's the failed politics of history which brought disruption to Britain's utilities and railways and astronomical prices for consumers," he said.

"Dangerously in this case, we fear the government may also be plotting to seize the pension assets."

Pension problem

Mr Hooper's report argues that only the private sector can provide the money necessary to continue the modernisation of the postal service at a time when the government is strapped for cash.

A key feature of the latest recommendations, like those first published in December 2008, is that the Royal Mail's pension scheme, which currently has a deficit of £8bn, should be taken over by the government to relieve the company of making huge extra contributions.

The pension problem is mentioned more than 40 times in Mr Hooper's latest 50-page report.

"The introduction of private sector capital is by itself far from sufficient to secure the future of the universal postal service," Mr Hooper said.

"Its future depends just as much on resolving the closely connected issues of the pension deficit and the need to transform postal regulation."

Staff shares

Last year, the Labour government abandoned its plans, inspired by Mr Hooper's first report, to find a private sector partner for the Royal Mail via a partial sale.

Mr Hooper said that in 18 months since that report, the Royal Mail's position had become worse.

The decline in the number of letters being sent has accelerated and will not be offset by more parcels being sent, for instance, to internet shoppers, he argued.

He demanded "urgent action" to preserve the universal service under which letters are delivered for the same charge regardless of their destination in the UK, six days a week.

A new feature of his proposals, supported by the coalition government, is that staff should be given a stake in the company if it is sold or privatised.

"It is important that any future employee ownership scheme should be taken forward with the aim of achieving the culture change that is needed within Royal Mail," he said.

"Employee shares could be a powerful force in supporting the company's modernisation and future success."

The government said that the Post Office network would not be included in its forthcoming privatisation plans.

Mr Hooper is a former deputy chairman of the telecoms regulator Ofcom.

[Eric Cantona]

http://www.bbc.co.uk/news/business-11258649" onclick="window.open(this.href);return false;

[hairyjack]

Would you buy it!

[Phantom]

Would you buy it!

Well said - why would anyone wanna buy a postal company thats supposed to be shrinking year on year, unless of course its not! and someones telling pork pies.

I can smell more bullshit again.............

[jockstrapp]

The Government will table a Bill on privatisation in the coming weeks, but unions are already warning of strikes if plans to privatise are put in place

Read more: http://www.dailymail.co.uk/news/article ... z0z8BkNUJ2" onclick="window.open(this.href);return false;

Well I hope Ward & Hayes enjoy the picket line because although I have come out on strike every time asked I will not be out over this and I will be advising all my colleagues likewise. SO f**k THE CWU

[Night Tonic]

Get your flasks warmed up lads, another futile CWU gesture and lost wages.

[REDLETTER]

The government said that the Post Office network would not be included in its forthcoming privatisation plans.

cherry picking!

the hatchet has already fallen on Post Offices, so not worth putting up for sale until it makes a bit more money!

can't see the government taking on £8 billion of pension deficit, wait a minute, how much did they bail out the banks?

[happymackem]

the sooner the better bring it on and maybe just maybe i can get my evr before this job kills me,after 40 years the old body cant take it anymore.what with lapsing everyday one full bag and 50 mins this is just legalised slavery .and as for strikes against privatisaton FORGET IT.as jockstrapp say fcuk the cwu they aint done f all for me lately have they ?

[Wild Rover]

Now we are for sale, I guess they will stop all 2010 & Beyond action

I mean, why change when the business is for sale and somebody will come in and do it all differently again.....

[realmichael]

now then lets think, what happened last time we went out oh! thats right we went back for more work and less money

[andy2007]

the sooner the better bring it on and maybe just maybe i can get my evr before this job kills me,after 40 years the old body cant take it anymore.what with lapsing everyday one full bag and 50 mins this is just legalised slavery .and as for strikes against privatisaton FORGET IT.as jockstrapp say fcuk the cwu they aint done f all for me lately have they ?

And what do you expect, when so many can't even be bothered to vote, or turn up at meetings?
A Union is only as strong as it's members. So the more of you who "throw the towel in", the weaker we become.

[happymackem]

the sooner the better bring it on and maybe just maybe i can get my evr before this job kills me,after 40 years the old body cant take it anymore.what with lapsing everyday one full bag and 50 mins this is just legalised slavery .and as for strikes against privatisaton FORGET IT.as jockstrapp say fcuk the cwu they aint done f all for me lately have they ?

And what do you expect, when so many can't even be bothered to vote, or turn up at meetings?
A Union is only as strong as it's members. So the more of you who "throw the towel in", the weaker we become.

load of balls mate

[Eric Cantona]

That's funny I started this thread at noon today and have been pushed down to second spot on it?

[Howard]

now then lets think, what happened last time we went out oh! thats right we went back for more work and less money

The only pay rise in history where you got less money,wtf !!!

I wont be losing pay again for this joke union....before anyone starts the we have to stand together bs.
The cwu has sold us down the creek too many times.

[TrueBlueTerrier]

That's funny I started this thread at noon today and have been pushed down to second spot on it?

What happened was you started a thread after I posted the BBC story and Link (the same one ) so I merged them - the forum then sorts it in posting order. Hope that clears it up.

We try and keep the links to news items in one thread otherwise experience tells us it gets confusing, I had to lock another thread with the same BBC link in it around 2 hours after you posted yours