Ministers consider offering 20 per cent of shares in RM

[TrueBlueTerrier]

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Postmen could be offered as much as 20 per cent of the shares in Royal Mail in an audacious bid by ministers to buy their support for the state-controlled organisation's controversial privatisation.

The shares could be offered for free or on a “buy one, get one free” basis, to ensure that the maximum number of postal workers accept the offer, The Daily Telegraph can disclose.

The news comes as postal expert Richard Hooper publishes a refreshed version of his 18-month old review of Royal Mail today, which will recommend that the postal operaetor should be privatised.

Ministers are bracing themselves for a major campaign from the Communication Workers Union (CWU) against the plans, starting at next week’s meeting of the Trades Union Congress in Manchester.

In a bid to head off the likely opposition, they are keen to pursue a ‘John Lewis’ model for the privatisation which will see shares handed to staff to give them a financial interest in Royal Mail’s success.

They are likely to hand over a significant stake in Royal Mail, as much as 20 per cent of the shares, to the company’s workers to win their support for the privatisation plans.

The shares will be made available either for free, or at a substantial discount, such as in a “buy one, get one free” offer.

The plans are likely to be unveiled over the next few weeks, ahead of the delayed publication of the Postal Services Bill in the middle of next month.

One source said: “They have to be given enough shares to have a ‘buy in’ to the plans. It will be about giving them the benefits of privatisation.”

Another insider said: “It will get the workforce involved and sideline the militants in the CWU. That is what the Government is trying to do.”

Last night a CWU source dismissed the offer of shares as a “bribe which the workers will see through”. The source said that the union was concerned that a privatised Royal Mail would be “run for profit, not for public service”.

CWU officials are planning to table an emergency motion at the TUC conference calling on unions to back a “campaign of opposition” against privatisation.

Officials have also been busily constructing a coalition of groups against the plans, comprising MPs from the Labour, the SNP and Plaid Cymru parties, and other business lobby groups, which are concerned about the future of post offices and the universal postal service.

The CWU has also decided to take the battle to the Coalition by organising fringe meetings at both the Tory and Lib Dem conferences.

Today’s report from Mr Hooper, who used to run communications watchdog Ofcom, is expected to warn of a worse than expected decline in the numbers of letters and parcels over the past 18 months.

Looking forward it will forecast a fall-off in the number of letters and parcels sent worldwide of up to 40 per cent over the next five years.

Mr Hooper will say that it is essential for the future of the company that private sector expertise and disciplines are brought in.

It will say that Royal Mail’s financial position has deteriorated and recommend that the business should be privatised, either by selling to another business or a flotation on the London Stock Exchange.

It will also recommend that responsibility for Royal Mail’s £10.3billion pension deficit should be taken over directly by the Government.

[TrueBlueTerrier]

An expert is he (Hooper) well my definition he would be.

Ex - Someone who is no longer current

Spurt - A constant drip under pressure

Therefore he is an old has been that is under pressure from someone.

[Night Tonic]

Wouldn't matter who conducted the report, analysis would be the same.

[fmrPOSTIE]

The only good thing to come from privatisation would be that alot of the dopey managers will soon vanish. However its not that easy to privatise RM as it has to pass the Lords - will Labour oppose it fully now in opposition? I bet they do!

[DGP1]

Wouldn't matter who conducted the report, analysis would be the same.

What analysis?? The one that says mail is falling? The one that says that only the competition can save RM?

[BELIAL]

Mr Hooper will say that it is essential for the future of the company that private sector expertise and disciplines are brought in.

Would this be the same 'private sector' that provided the expertise and disciplines that managed to create the biggest financial meltdown in the history of the world and landed us with a record deficit and all that that entails

[Lounge Lizard]

"The shares could be offered for free" and pro-rata to part time staff.
"The only good thing to come from privatisation would be that a lot of the dopey managers will soon vanish." - and what makes you think that, FMRPostie?
"Mr Hooper will say that it is essential for the future of the company that private sector expertise and disciplines are brought in" - just like the railways, higher fares, worse safety, more managers and consultants paid a fortune, shareholders benefitting at the taxpayers expense

[axeman]

Wouldn't matter who conducted the report, analysis would be the same.

Time you opened your eyes NT you and i only know too well what this sell of would do as for the report we can see Hoopers need to redeem himself and make out he was right with the first report. It is flawed as we know don't we as for your blinkerd response to hooper how could you honestly say any outcome would be the same ? I Suppose it depends who's table you eat at does'nt it

[jockstrapp]

If mail volumes are to decline 40% over next five years why would anyone want to buy a company going no where. Unless of course it's all LIES. And if the mail coming into my office is anything to go by it's not as bad as these compulsive LIARS ARE SAYING.

[BELIAL]

Mr Hooper will say that it is essential for the future of the company that private sector expertise and disciplines are brought in.

Would this be the same 'private sector' that provided the expertise and disciplines that managed to create the biggest financial meltdown in the history of the world and landed us with a record deficit and all that that entails

Wouldn't matter who conducted the report, analysis would be the same.

Well of course he analysis would be the same if you reviewed the true figures but the deductions and conclusions might vary wildly

You really are a gobshite twat