What will the Royal Mail changes mean for you?

[TrueBlueTerrier]

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There's no doubt that something has to change at the Royal Mail.

Deteriorating services, strikes, massive losses, and a pension with a horrifying hole in it (£8 billion to be precise): it can't go on. Yesterday the government revealed its plans for the service, so what will they mean for you?

Vince Cable outlined that there were a couple of options on the table. The first is a sale of 90% of its value on the stockmarket. The second is a sale of 90% of the business to another company - if they can find someone to buy it.

Whatever option is taken, the other 10% will be given to workers. Cable said: "The Government recognises that it is the workforce that will really turn Royal Mail around - and they should share in the company's future success with the largest employee share scheme of any privatisation."

The unions have called it a sell-off of the country's assets - but they are kidding themselves if they think this is an asset, it's a millstone we'd be better off without.

Dead weight

It's actually a major dead weight, because in order to be saleable the government (and eventually the taxpayer) is going to have to foot the horrifying pensions bill.

Robert Hammond, head of post at Consumer Focus said: "The sheer scale of the transformation facing the postal market and the post office network is immense. There will be consequences for investors, management and employees but also for the millions of consumers who rely on it."

So what will it mean for customers?

There is talk that it could be bought by another postal provider from another country. This has its pros and cons.

The possible problems include the fact that it could bring job losses as they 'streamline' the operation. This could mean less people at the coal face, so there are concerns about service.

It could also spark yet another string of strikes that will do even more damage to the business

Modernisation

However, on the plus side, if they are a seasoned business they should also bring in the modernisation changes that have been so desperately needed for so long and so resisted by the unions. If they have the power to force these changes through - and hang the consequences - then there's a chance our service will change for the better, and that it could be cheaper.

In any event, there will be certain protections to the service that will ensure some things don't change. So, whoever runs the service will have to collect and deliver post six days a week to every one of the 28 million addresses in Britain for the same price.

The changes are enshrined in a bill, which could take a year to go through and even longer to enact, so none of these changes will happen overnight.

Cable was also at pains to point out: "Royal Mail and the Post Office are cornerstones of our society. My policy is to put them on a stable footing for the future.

"The Post Offices will not be for sale and there will be no further programme of closures. Innovative proposals could see Post Office Ltd turned into a mutual, giving power to staff, sub postmasters and communities."

So what do you think? Is this a step in the right direction, or the beginning of the end of the postal service?

[TrueBlueTerrier]

The comments section - or at least the first 20 seem generally suportive of us and some have called the writer and idiot.

Over to the RMC band of commentators

[Lounge Lizard]

"Whatever option is taken, the other 10% will be given to workers." Is that right, shares GIVEN to us, free, gratis and for nothing ? And how will they be allocated, on length of service, pro-rata for part timers, extra ones for DOMs ? We need to know.

[fishtank]

"Whatever option is taken, the other 10% will be given to workers." Is that right, shares GIVEN to us, free, gratis and for nothing ? And how will they be allocated, on length of service, pro-rata for part timers, extra ones for DOMs ? We need to know.

3 Employee share scheme
(1) The Secretary of State must ensure that arrangements are made, before the time at which the first relevant disposal is made in relation to a Royal Mailcompany, for the establishment of an employee share scheme.

(2) Those arrangements must secure that if at any time the proportion of the company owned by the Crown is reduced to nil, the proportion of the company owned by or on behalf of the employee share scheme is at that time (or has before that time been) at least 10%.

(3) If any shares or shares rights have been transferred under the employee share scheme to beneficiaries of the scheme, the shares or share rights are to be regarded for the purposes of subsection (2) as if they are still owned by or on behalf of the scheme.

(4) “Employee share scheme” means a scheme for encouraging or facilitating the holding of shares or share rights in the company (or companies in the same group as the company) by or for the benefit of persons who are or include employees of the company.

None of that adds up to free shares.........they might be or you may have to earn them/pay for them.
It really depends what shape this "employee share scheme" takes and you may not find that out until....later.
My personal thoughts are....it will depend if a big player makes a move for us...TNT don't give anything away for free.

[ziko]

"then there's a chance our service will change for the better, and that it could be cheaper.

In any event, there will be certain protections to the service that will ensure some things don't change. So, whoever runs the service will have to collect and deliver post six days a week to every one of the 28 million addresses in Britain for the same price."

This is my favourite bit - it almost made me laugh... wot a cracking joke... 'it could be cheaper,' 'will have to collect and deliver 6 days a week' Wot a quality joke, and at all the people of Britons expense.... Priceless

[dvbuk55]

I'm not too well up on a floatation. The floatation itself is a managed affair and is usually under-priced to generate enough interest to actually sell I believe.
Now what I'm not too sure about is who is going to manage it after the sell off? Where is the outside expertise coming from to make us a viable long term prospect? Uncle Tom Cobley and all could have shares and are they going to be the directing force? I don't think it will be a floatation but if it is we will have the same management team that has managed us into the state we are in now.

[smokerjim]

What will RM changes mean for you? Not a lot if you happen to be one of those self important, self appointed "experts" on RM ( despite having spent more time in their colon than in RM - in fact the accuracy of their comments is directly in inverse proportion to the amount of time spent in a public service ).

FT, if TNT do take control, & if they don't give anything away for free, I'd love to know how much they'll pay for me to take my P45

[fishtank]

FT, if TNT do take control, & if they don't give anything away for free, I'd love to know how much they'll pay for me to take my P45

You're probably right jim...that's the one thing you may get in return for feck all.

[smokerjim]

FT, if TNT do take control, & if they don't give anything away for free, I'd love to know how much they'll pay for me to take my P45

You're probably right jim...that's the one thing you may get in return for feck all.

The cliched "exception that proves the rule", eh?....bugger

[dazzer79]

as far as i am concerned " it can not get any worse " !!! bring on no sat deliveries..... fill the pensions hole .......evrs....there would be a q a mile long ......and i would be at the front !!!!

[Wessex]

I particularly liked the comment left by "fuzz " on the website .

[snoopywonderdog]

as far as i am concerned " it can not get any worse " !!! bring on no sat deliveries..... fill the pensions hole .......evrs....there would be a q a mile long ......and i would be at the front !!!!

I would be second in line.

[barbario]

The last people we want to buy into the company is TNT.If they do,one can stand by for more major job losses. Look at what they have just done to their own work force in Holland,made redundant all of their elveven thousand full time workers. So no thanks, SOD OFF !

[dazzer79]

royal fail and the cwu r driving this business into the ground !!! after 33 years service i have never been so un happy going to work !!! long hours .......... always going over my time ...bullying managers when u want to break off.... nothing settled in the office.....cannot book days off when u need them ,,,the list is end less ....i want to go ..i have had enough ...i need an employer who has managers that r capable of managing and not bullying ...evr PLEASE GOD !!!!

[bobbla7896]

royal fail and the cwu r driving this business into the ground !!! after 33 years service i have never been so un happy going to work !!! long hours .......... always going over my time ...bullying managers when u want to break off.... nothing settled in the office.....cannot book days off when u need them ,,,the list is end less ....i want to go ..i have had enough ...i need an employer who has managers that r capable of managing and not bullying ...evr PLEASE GOD !!!!

these comments are absolutlely spot on well said, i totally agree with you, its the pits now, and is happening at my office..