Royal Mail privatisation faces setbacks

[TrueBlueTerrier]

http://www.telegraph.co.uk/finance/news ... backs.html" onclick="window.open(this.href);return false;

A government programme to support the £3bn Royal Mail privatisation is facing fresh setbacks after sub-postmasters stepped up their campaign against the sell-off by refusing to distribute information for the public on how they can buy shares in the business.

The Post Office, the Royal Mail’s retail wing, is expected to contact sub-postmasters about stocking the literature but the National Federation of SubPostmasters has pre-empted the move by asking its members to boycott any distribution.

Its call came as Royal Mail faced criticism from the Communication Workers’ Union over additional pension provisions, estimated to amount to about £90m, to a scheme for senior executives. Royal Mail said that none of its executive board had benefited from any extra payment.

The Government, which sees Royal Mail mainly as a stock for institutional investors and is not planning a high profile campaign to attract the public, also wants to see ordinary investors.

Sub-postmasters who get a third of their income from selling Royal Mail products are said to be using the boycott as leverage in its battle with the Post Office over service cutbacks. George Thomson, federation general secretary, said he was “surprised and angered” by the Post Office request for sub-postmasters to “act against their own interests.”

Sub-postmasters had seen a drop in income from government services over the past three years. Mr Thomson said: “The government has completely failed to fulfil its pledge to make post offices the 'front office for government’ offering face-to-face access to a wide range of central and local government services.”

Royal Mail said privatisation would enable the business to “become more flexible and fleet of foot” in competitive markets. Major investment would see half the Post Office branch network modernised by 2015.

The CWU has been planning to ballot Post Office members over handling sale literature as part of its anti-privatisation drive. The union is using the threat of a privatisation strike ballot to pressure Royal Mail into improving its pre-sale pay and pensions offer. Royal Mail defended additional payments made to the senior executives pension plan.

The group’s annual accounts show payments of £19m into the senior executives scheme in “deficit correction” payments and £20m into an investment fund to provide security in return for closing the scheme to new members. In addition Royal Mail is making a £10m a year payment to the scheme until 2018.

Royal Mail was unable to provide details about the executives covered by the scheme but said the plan “had a significant deficit and the company is legally obliged to make payments towards it.”

[ronpetetrevchris]

Oh dear, it all seems to be falling apart dosent it?

[UnhappyGremlin]

I think this is a good thing.

[SpacePhoenix]

The Post Office, the Royal Mail’s retail wing

I wonder if they realise that the Post Office is no longer part of the RM Group

[Budfrog]

I think this is a good thing.

I would have to agree ...

[fishtank]

I think this is a good thing.

I would have to agree ...

It's time for the next step.....

[NWpostie]

Privatisation fatigue, the public and everybody else have seen through the cons of the benefits of privatisation, bills up, service down and all rest of the BS.

[ronpetetrevchris]

Oh dear, it all seems to be falling apart dosent it?

Heavy sarcasm smily

[TrueBlueTerrier]

Oh dear, it all seems to be falling apart dosent it?

Heavy sarcasm smily

just a sign in this case