Cable announces largest employee shares scheme in 25 years

[TrueBlueTerrier]

http://nds.coi.gov.uk/content/Detail.as ... IS+News%29" onclick="window.open(this.href);return false;



Business Secretary Vince Cable today announced that at least 10% of the shares in Royal Mail will go to its employees.

This will be the largest employee shares scheme of any privatisation for 25 years in terms of the number of workers who will benefit – second only to the privatisation of British Telecom in 1984.

The percentage being allocated to employees is also potentially one of the largest – larger than BT, British Gas or British Airways.

This new commitment will be written in to the Postal Services Bill, which the Government plans to introduce in the autumn.

Vince Cable said:

“I want to take action to secure the future of two cornerstones of British life – Royal Mail and the Post Office. The much valued Post Office is not for sale and there will be no repeat of the previous closure programmes.

“But Royal Mail is a different business, with different challenges. It is struggling under the weight of some huge pressures: pressure from email and falling mail volumes; pressure from a dire pension position; pressure from a lack of money to invest.

“The only way to save it for the future is to bring in new private capital to support the ongoing modernisation and growth opportunities. This will bring new commercial disciplines and the enormous public sector deficit means that the taxpayer does not have an endless supply of money to meet the company’s investment needs.

“We also have to tackle the multi-billion pound pension deficit and put in place lighter touch regulation that gives the company a good chance in the market and protects the universal postal service that so many of us depend on.

“But just as important is the engagement and participation of staff in turning this company around. That is why our legislation will include a specific provision to make available at least 10% of the shares in Royal Mail to employees, as part of the privatisation process. This is a once in a generation chance to transform the culture at Royal Mail – energising everyone and allowing employers and employees to share in the company’s future success.”

Notes to Editors

1. Further detail will be announced as part of the Postal Services Bill that will be introduced by the Government in the autumn.

2. The Bill will draw heavily on the analysis and recommendations made by Richard Hooper as part of his report on saving the Royal Mail’s universal service in the digital age.

3. The report can be viewed here http://www.bis.gov.uk/policies/business ... per-review" onclick="window.open(this.href);return false;

4. Richard Hooper made three main recommendations:

· A new less burdensome regulatory framework is needed with responsibility for regulation moving from Postcom to Ofcom;

· The pension deficit should be taken over by the Government as part of the wider range of measures; and

· Private sector capital must be introduced into Royal Mail in the form of sale to a partner/trade investor or an IPO.

5. Example of previous privatisations:

Under 50,000 employees

· Rolls Royce, privatised in 1987, 10% to employees

· British Airways, privatised in 1987, 9.5% to employees

· Water plcs, privatised in 1989, 3% to employees

· NATS, privatised in 2001, 5% to employees

50 to 100,000 employees

· British Aerospace, privatised in 1982, 3.3% to employees

· British Gas, privatised in 1986, 5% to employees

· British Steel, privatised in 1988, 6.2% to employees

· Regional Electricity, privatised in 1990, 4% to employees

Over 100,000 employees

· BT, privatised in 1984, 5% to employees

· Railtrack, privatised in 1996, 0.6% to employees

6. Royal Mail has over 150,000 employees.


7. BIS' online newsroom contains the latest press notices, speeches, as well as video and images for download. It also features an up to date list of BIS press office contacts. See http://www.bis.gov.uk/newsroom" onclick="window.open(this.href);return false; for more information.

[maisymoo04]

show me the money hahaha

[dvbuk55]

Anyone who thinks they are going to let this go is living in cloud cuckoo land, forget campaigns, forget marches, it's a done deal this time and no mistake. I don't consider myself defeatist just a realist. Lets not forget the ConDems want a "working relationship" with the unions and despite all the TUC and Union bluster I think that is exactly what they will get OR ELSE - remember Thatcher and the anti trade union laws.....................think it couldn't get any worse?.................of course it could.

[donut]

Anyone who thinks they are going to let this go is living in cloud cuckoo land, forget campaigns, forget marches, it's a done deal this time and no mistake. I don't consider myself defeatist just a realist. Lets not forget the ConDems want a "working relationship" with the unions and despite all the TUC and Union bluster I think that is exactly what they will get OR ELSE - remember Thatcher and the anti trade union laws.....................think it couldn't get any worse?.................of course it could.

Absolutely.....resistance is futile.

[chewi]

if as dvbuk says it's a foregone conclusion then lets guess at the figures.

The financial times carried an article this week (very dubious about privatisation) which put a value of £2.8 billions on RM. Other articles I've read in the financial press lead me to guess that maybe a valuation of £2 billion will be what they work on. 10% is £200,000,000 (given that a billion is £1000,000,000, I think). Divide that by 140,000 employees(figures used at the time of the last IA) and you get just over £1400.00.

HOWEVER

before anybody goes and books a holiday, my guess is there would be a clause in the share issue that they must be held for a set period, probably several years, so that by the time you can sell them the USO has proved such a millstone to the stockmarket spivs and profitability that the certificates would be worth more if they were perforated at convenient intervals and printed on soft paper.

[not me]

if as dvbuk says it's a foregone conclusion then lets guess at the figures.

The financial times carried an article this week (very dubious about privatisation) which put a value of £2.8 billions on RM. Other articles I've read in the financial press lead me to guess that maybe a valuation of £2 billion will be what they work on. 10% is £200,000,000 (given that a billion is £1000,000,000, I think). Divide that by 140,000 employees(figures used at the time of the last IA) and you get just over £1400.00.

HOWEVER

before anybody goes and books a holiday, my guess is there would be a clause in the share issue that they must be held for a set period, probably several years, so that by the time you can sell them the USO has proved such a millstone to the stockmarket spivs and profitability that the certificates would be worth more if they were perforated at convenient intervals and printed on soft paper.

i expect to be out of RM before any of the 'cash' comes to fruition

[maisymoo04]

they our sayin that now mick

[guvenor]

wonder what will happen to the colleague shares then another big con on the cards or maybe that could be the 10%cables on about

[Straight4ward]

a specific provision to make available at least 10% of the shares in Royal Mail to employees,

For anyone eyeing an opportunity to pocket a bit of extra bunce, I would just point out that Cable The Destroyer doesn't actually say that they would be given to employees. We may well be expected to buy them.

[maisymoo04]

£5100 guv for the colleague shares it was 2 years ago ,wont see them pal it was all bull sh** pal

[Dorset Plodder]

I take it the shares will be provided Pro-Rata? Everything else is I'll look forward to half of a s**t deal

[ldsposti]

A word of warning shares can go down as well as up, think i know where ours will be going

[General Mannerheim]

cha ching.
I can't wait to go and visit my pals little nick and Android Cameron in the luxury dockyard to pick out my yacht.
Can we have a Cable f**k of smiley please.

[fishtank]

I don't get out of bed for less than 50K so he can f*ck right off....i'm not that cheap.

[dvbuk55]

I don't get out of bed for less than 50K so he can f*ck right off....i'm not that cheap.

According to some, you are the cheapest around, saying the you won't get in bed for less than 50p