KEEP THE POST PUBLIC - LTB 048/12

[TrueBlueTerrier]

Letter to Branches





No. 048/12
Ref: GS: 11.0
Date: 27 January 2012

To: All Branches


Dear Colleagues

KEEP THE POST PUBLIC

As part of the Union’s continuing campaign to Keep the Post Public, the Union met with Ed Davey MP, Minister for the Post Office. The meeting was part of the scheduled quarterly meetings with the Minister.

This contact enables the Union to keep up to date, on a formal basis, as to the Government’s activity with respect to the whole of the Royal Mail Group.

Prior to the meeting, which took place on Tuesday, January 24th, the Minister welcomed the announcement of an Inter Business Agreement between the Post Office Counters and Royal Mail. The Inter Business Agreement (IBA) would be for ten years. He also announced the date for the formal separation of Post Office Counters from the Royal Mail Group.

The Union lobbied very hard to achieve a 10 year Inter Business Agreement.

At the meeting with Ed Davey, the CWU’s delegation raised concern about the future security of pension provision. The Union also raised its concern about the proposed regulation of Royal Mail after Ofcom makes its decision following its consultation.

The Union is continuing to lobby the EU Commission on the provision of State Aid for restructuring Royal Mail, and the removal of the pension’s deficit. The Minister agreed that good progress is being made, with the assumption that this clearance will be given by April. The Minister also suggested that any sale of Royal Mail was unlikely before 2013, as any investor would wish to see that the new system of regulation was working without damaging Royal Mail.

The Union raised the possibility that the Government would move to an early sale, as they did on Northern Rock, or that a management buy-out would be encouraged. The Minister suggested these were unlikely.

It was agreed to meet again next month to register progress on these matters and the issue of Royal Mail’s modernisation.

Yours sincerely


W HAYES DAVE WARD
General Secretary Deputy General Secretary (P)

[fishtank]

The Minister also suggested that any sale of Royal Mail was unlikely before 2013, as any investor would wish to see that the new system of regulation was working without damaging Royal Mail.

Any positive outcome from the new system of regulation will likely drive the value of the company upwards and therefore the cost to any potential investor.
I wonder what the Government would do if someone like TNT were to look at the new regulation system and decide to take a punt before the value increased.

[dvbuk55]

The Minister also suggested that any sale of Royal Mail was unlikely before 2013, as any investor would wish to see that the new system of regulation was working without damaging Royal Mail.

Any positive outcome from the new system of regulation will likely drive the value of the company upwards and therefore the cost to any potential investor.
I wonder what the Government would do if someone like TNT were to look at the new regulation system and decide to take a punt before the value increased.

Well I don't know where the scuttlebut comes from but some managers seem to be of the opinion that subject to EU agreement an offer is on the table already. I am of the belief that it will be mid 2013 at the earliest.

It seems odd that the "Keep the Post Public" champions are talking to the bloke determined to self us off - I would have thought the cold shoulder would have been the order of the day - unless of course there are wheels within wheels............like putting things on a sound financial footing for example, or let us still be the negotiators please - scare mongering? - I was in the GMB when I was with the ESI prior to privatisation and believe me there wasn't anything they wouldn't agree to in order to still be at the table.

[fishtank]

The Minister agreed that good progress is being made, with the assumption that this clearance will be given by April.

It seems clear from this statement that state aid is pretty much a given so that particular monster can be put to bed.
So....with the pension deficit lifted,cash in the bank from the £1Billion escrow account and a rolling credit facility can we look forward to that pot of gold with diamonds?
Or will another reason to be "realistic" rear it's ugly head?

[snoddy]

The Minister also suggested that any sale of Royal Mail was unlikely before 2013, as any investor would wish to see that the new system of regulation was working without damaging Royal Mail.

Any positive outcome from the new system of regulation will likely drive the value of the company upwards and therefore the cost to any potential investor.
I wonder what the Government would do if someone like TNT were to look at the new regulation system and decide to take a punt before the value increased.

Well I don't know where the scuttlebut comes from but some managers seem to be of the opinion that subject to EU agreement an offer is on the table already. I am of the belief that it will be mid 2013 at the earliest.

It seems odd that the "Keep the Post Public" champions are talking to the bloke determined to self us off - I would have thought the cold shoulder would have been the order of the day - unless of course there are wheels within wheels............like putting things on a sound financial footing for example, or let us still be the negotiators please - scare mongering? - I was in the GMB when I was with the ESI prior to privatisation and believe me there wasn't anything they wouldn't agree to in order to still be at the table.

Managers in my office are telling anyone who will listen that a buyer has been found and we will be privatised by Summer.

[dvbuk55]

The DSM will be around this week and I'll just ask him where the rumours have come from and if he knows anything, I'm no shrinking violet believe me. I may not get a definitive answer but he will give something away.