Mixed reaction in North-East to Royal Mail sell-off plans

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PLANS to sell off Royal Mail through a stock flotation have received a mixed reaction in the region.

Although Business Secretary Vince Cable announced free shares for employees, union leaders have vowed to fight the proposal.

Communications union CWU has around 10,000 Royal Mail members in the North-East – about two thirds of the workforce.

Paul Clays, CWU regional secretary, described the plans as an “absolute nonsense”.

“To sell off something which isn’t theirs in the first place is a disgrace in itself and to sell something that belongs to the public and is making a profit is even worse.


“This would destroy the service that our members provide and it would destroy their jobs.”

Mr Cable said Ofcom would be instructed to preserve the universal service obligation, meaning deliveries would continue to all addresses, six days a week.

But independent Weardale councillor John Shuttleworth said, with concerns the obligation could be eroded over time, the proposal should still be of concern to those living in rural areas.

“If we do ever lose the universal service obligation those living in rural areas could end up being treated as second class citizens.”

Stockton South Conservative MP James Wharton is backing the proposal.

He said: “It’s taken five years to ensure that this process, started under Labour and continued by the Coalition, is done properly.

“Royal Mail has had a troubled past but I’m sure that with the right approach to privatisation we can give it a secure future.”

Liberal Democrat Redcar MP Ian Swales also supports the plan.

He said: “I’m pleased about safeguards regarding the universal service obligation, about prices of stamps and for the staff.

“I’m also pleased that Liberal Democrats pressure has resulted in ten per cent ownership passed to the workforce.”