Is privatising the Royal Mail viable?

[Geezer]

Friday, 30th October 2009

Caroline Fitzner 3:28pm

http://www.spectator.co.uk/coffeehouse/ ... able.thtml

Over the summer, as the postal crisis mounted, the government argued that adverse market conditions deterred potential investors. Regardless of the ongoing industrial dispute, the government maintain that Lord Mandelson’s bill will not be reintroduced unless conditions improved. According to the Guardian, Ken Clarke, the shadow business secretary, believes that there is still demand in the public sector to buy the Royal Mail, providing the CWU accepts modernisation and ends the strikes.

‘Ken Clarke, the shadow business secretary, has held talks on the sale of Royal Mail with potential bidders, and the party believes there is still a desire in the private sector to take over the company. The Conservatives' resolve has hardened over the last few days as union leaders and management remain deadlocked.’

This would suggest that the bill remains shelved because of feared backbench rebellion rather than the continued absence of private interest, an argument the Tories have deployed against Brown and Mandelson in recent weeks.

But how to force the CWU into submission? For the Conservatives, the solution is straightforward: reintroduce the bill to put pressure on the union by attracting potential investors to re-finance the Royal Mail.

As talks degenerate and the Royal Mail’s financial crisis deepens, government intervention in the cause of privatisation is the sensible response. On a separate note, success in such a venture would restore the government’s reformist credentials. However, in view of concerted union and backbench opposition so far, it is doubtful whether the government has the strength to force the bill through parliament. Privatisation might have to wait for a Conservative majority, armed with a popular mandate.

Filed under: Conservatives (249 more articles) , Ken Clarke (4 more articles) , Labour (325 more articles) , Royal Mail (2 more articles) , Strikes (2 more articles) , UK politics (501 more articles)

[The Backbone]

I take it 'pick-it' is from the private sector.-lol.
Private sector has had a boom over last 10years and never gave a thought to public sector struggling on with normal wages etc,but when table turns and the private sector work dries up they get jealous and always come out with the old 'be grateful to have a job'. Flippin idiots..

[TrueBlueTerrier]

I take it 'pick-it' is from the private sector.-lol.
Private sector has had a boom over last 10years and never gave a thought to public sector struggling on with normal wages etc,but when table turns and the private sector work dries up they get jealous and always come out with the old 'be grateful to have a job'. Flippin idiots..

He has gone so

[fmrPOSTIE]

Well the tories tried twice to privatise the Royal Mail and failed on both counts. Read into that what you will. Royal Mail could make massive profits if it really modernised, i.e. get into the parcel/express delivery market (question mark over Parcelforce, but that could make things easier).

[bitchface]

Well the tories tried twice to privatise the Royal Mail and failed on both counts. Read into that what you will. Royal Mail could make massive profits if it really modernised, i.e. get into the parcel/express delivery market (question mark over Parcelforce, but that could make things easier).

full privatisation.just think of all the managers on the dole.

[Post Off]

I'm pretty sure I had read, or had heard (more than likely) that Margaret Thatcher was totally against the whole idea of privatising the Royal Mail. But now, I wonder why?

[Fred B]

full privatisation.just think of all the managers on the dole.

Every cloud eh!

[uprising95]

could anyone explain please what the difference would be as im not fully up on this.

if royal mail privatised how different would it be from what it is now.

[mailman71]

when royal mail try to privatise back in the 80's,a lot of tories voted against it because any private firm taking over will not be intrested in delivering in the rural areas and the mp's know this but this time they might just get away with it.

[DGP1]

Privatising RM would end up a disaster, all that would happen is it would be split up and (to ensure the USO) the DOs and PO would end up back into public hands with the government having to pay large sums just to keep them going.

[DirtyHarry]

could anyone explain please what the difference would be as im not fully up on this.

if royal mail privatised how different would it be from what it is now.

Well, for starters, the universal service obligation would be consigned to history, no private sector company would see the USO as being very cost effective, and would view the USO as being a sure fire way to pour any profits heading for the few wealthy shareholders divies down the proverbial toilet. As for the profitable aspects of what we currently do, to maximise the profits made from these, they will be made more expensive, every year. Where we now count the cost of a first class stamp in pennies, in a few short years of being privatised we will almost certainly be counting the cost in £s.

[fmrPOSTIE]

Not quite true, the USO would be still enforced, its enshrined in law. Ken Clarke has said if they privatised it Royal Mail would not be broken up. So nothing would change except the management and ownership. No seperation of DO's or Mail Centres etc.

I dont beleive it should be privatised because we all know for a FACT that prices will shoot up!

[cyclemech1]

could anyone explain please what the difference would be as im not fully up on this.

if royal mail privatised how different would it be from what it is now.

Lower pay - minimum wage.
No Sick Pay - SSP Only.
Vastly inferior Pension (Even worse that the one they plan now).
Longer working week.
Need I go on?

[TrueBlueTerrier]

could anyone explain please what the difference would be as im not fully up on this.

if royal mail privatised how different would it be from what it is now.

Lower pay - minimum wage.
No Sick Pay - SSP Only.
Vastly inferior Pension (Even worse that the one they plan now).
Longer working week.
Need I go on?

And beyond:

Franchised rounds that you have to cover if sick or on holiday
No employer liability insurance unless you take out your own policy
Piece rate per item of mail
Multiple D2D items with no right of refusal even if franchised
No weight limits
No walk limits
No right to not complete
No Union as we will be classed as self employed

The futures not bright the future is TNT orange

[chunk]

could anyone explain please what the difference would be as im not fully up on this.

if royal mail privatized how different would it be from what it is now.

if we use tnt as a model of how a private company might go
80% of their people are part time this has implications for our mostly full time
workforce.