LTB 530/13 Growth and I Act 2013

[stephen500]

As union states below, it will continue to take legal advice. There is also a special conference where they MAY be mandated to consult a barrister.
Read full LTB below
30 July 2013
LTB 530/13 Employee Shares – Growth & Infrastructure Act 2013 and Auto Enrolment

No. 530/13
Ref: 21003
Date:  30th July 2013
 

TO:    ALL BRANCHES WITH POSTAL MEMBERS
 

Dear Colleague
 

Employee Shares – Growth & Infrastructure Act 2013 and Auto Enrolment
 

We have received a number of enquiries about the potential impact of Employee Shareholder provisions within the Growth and Infrastructure Act 2013.  These enquiries relate to a part of the Act which sets out that under certain conditions employees who receive free shares do so on the basis of accepting fewer employment rights. 
 

We have raised this directly with the Government, the company and our own Lawyers and the advice that we have received from all these parties is that the provisions of the Act would not apply in this case. 
 

The Government has now stated in writing that any shares subsequently offered to Royal Mail employees will be covered by an approved HMRC Share Incentive Plan and that any such scheme is exempt from the provisions of the Act.  We are aware that there is still some scepticism about whether or not this is the correct interpretation of the Act and the Union will continue to check this information with our Lawyers. 
 

It has also been confirmed by the Government in writing that if employees were to receive free shares in the future, eligibility will be on the basis of automatic enrolment i.e. they will be deemed to want to receive free shares, unless the individual chooses to opt out of the scheme.  As such there is no requirement for a registration process.
Any enquiries on the above LTB should be addressed to the DGS (P) Dept.
 

Yours sincerely
                                
 

Dave Ward                                                
Deputy General Secretary

[Visionary Man]

So we are in the clear I guess unless informed otherwise.

I think I would like to also be sure of our position in three years time. I'm looking at the recent Courier and under Moya Greene's view on page 2 it states some Terms and Conditions. Last paragraph states...

"We want to create a legally binding and enforceable agreement for three years with the CWU. Pay and protections could not be changed for the period of that contract without CWU agreement. It would be a significant protection for you during this period of change."

Is it skepticism beyond all reason to now want to be certain that the GIA won't come into effect on us once the three year period is up...?

Best Regards,

Geoff

[axeman]

What happens if you take royal fails shares ......heard a little whisper that that creep Vince Cable has put a little clause into legislation quite recently now alarm bells should start ringing within our midst

accept the shares and say sionara to your employment rights ...no redundancy pay etc.. just a few shares and be on your way , and we didn't even vote for this government nor have they a majority without the likes of Clegg backing them

[borders]

As union states below, it will continue to take legal advice. There is also a special conference where they MAY be mandated to consult a barrister.
Read full LTB below
30 July 2013
LTB 530/13 Employee Shares – Growth & Infrastructure Act 2013 and Auto Enrolment

No. 530/13
Ref: 21003
Date: 30th July 2013


TO: ALL BRANCHES WITH POSTAL MEMBERS


Dear Colleague


Employee Shares – Growth & Infrastructure Act 2013 and Auto Enrolment


We have received a number of enquiries about the potential impact of Employee Shareholder provisions within the Growth and Infrastructure Act 2013. These enquiries relate to a part of the Act which sets out that under certain conditions employees who receive free shares do so on the basis of accepting fewer employment rights.


We have raised this directly with the Government, the company and our own Lawyers and the advice that we have received from all these parties is that the provisions of the Act would not apply in this case.


The Government has now stated in writing that any shares subsequently offered to Royal Mail employees will be covered by an approved HMRC Share Incentive Plan and that any such scheme is exempt from the provisions of the Act. We are aware that there is still some scepticism about whether or not this is the correct interpretation of the Act and the Union will continue to check this information with our Lawyers.


It has also been confirmed by the Government in writing that if employees were to receive free shares in the future, eligibility will be on the basis of automatic enrolment i.e. they will be deemed to want to receive free shares, unless the individual chooses to opt out of the scheme. As such there is no requirement for a registration process.
Any enquiries on the above LTB should be addressed to the DGS (P) Dept.


Yours sincerely



Dave Ward
Deputy General Secretarystephen500
Offline

[axeman]

please put the section of the act applicable to the 'shares' etc.. up ..............thanks
and what protection have we after the sale / flotation ....none ?

[TrueBlueTerrier]

Moved into Privatisation as it's not a News Article - also merged it with an LTB refered to in 1 answer.

please put the section of the act applicable to the 'shares' etc.. up ..............thanks
and what protection have we after the sale / flotation ....none ?

The act your quoting in passing actually states when the shares for rights will apply and when they don't

For them to apply 3 major things have to happen.

1. We have to be told in no uncertain terms exactly what rights we will give up.
(we haven't been told so that immediately invalidates application under this new act - in fact RM have said we won't give up any rights)
2. They have to pay for us to get Independent Financial Advice - all 150,000 of us.
(on average thats probably £100-£200 each - or £15,000,000 at a minimum)
3. We also have to be told what rights we get as a share holder.
(We will be told that on issue of the shares anyway)

Also the share issue is being done under a different act which specifically states

The rules...
http://www.hmrc.gov.uk/shareschemes/sha ... visors.pdf" onclick="window.open(this.href);return false;

A company must not include any requirements for participation in a Share
Incentive Plan other than those permitted by the legislation referred to in this
guide (Para 11 Sch 2).
The Plan must not contain any features that might discourage any of the
eligible employees from participating.

Long discussion already in this thread http://www.royalmailchat.co.uk/communit ... h+act+2013" onclick="window.open(this.href);return false;

Of course anyone under either scheme can turn down the offer, that's a decision though for each individual and we shouldn't advise either way.

[stephen500]

Just had a reply from Michael Fallon MP. Please follow this link for the letter.
http://www.royalmailchat.co.uk/communit ... h+act+2013" onclick="window.open(this.href);return false;
see page 4.

[UnhappyGremlin]

Just had a reply from Michael Fallon MP. Please follow this link for the letter.
http://www.royalmailchat.co.uk/communit ... h+act+2013" onclick="window.open(this.href);return false;
see page 4.

Usual crap then.
Meaningless drivel, but I'd expect nothing less from one of them.